Third Session, 41st Parliament (2018)

OFFICIAL REPORT
OF DEBATES

(HANSARD)

Monday, May 28, 2018

Afternoon Sitting

Issue No. 143

ISSN 1499-2175

The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.


CONTENTS

Routine Business

Introductions by Members

Statements

D. Davies

Introductions by Members

Statements

Hon. L. Beare

Introductions by Members

Tributes

J. Rustad

Introductions by Members

Introduction and First Reading of Bills

S. Cadieux

L. Reid

Statements (Standing Order 25B)

B. D’Eith

M. Stilwell

R. Singh

J. Thornthwaite

N. Simons

D. Ashton

Oral Questions

A. Wilkinson

Hon. C. James

S. Bond

S. Furstenau

Hon. C. Trevena

J. Isaacs

Hon. C. James

T. Redies

Hon. C. James

T. Stone

Hon. C. James

D. Davies

Hon. R. Fleming

Reports from Committees

J. Brar

D. Clovechok

A. Olsen

Motions Without Notice

J. Brar

Orders of the Day

Tabling Documents

Office of the Auditor General, Promoting Healthy Eating and Physical Activity in K-12: An Independent Audit, May 2018

Office of the Merit Commissioner, annual report, 2017-18

Committee of Supply

M. Lee

Hon. D. Eby

J. Martin

S. Sullivan

M. Morris

Proceedings in the Douglas Fir Room

Committee of Supply

A. Weaver

Hon. C. James

J. Isaacs

S. Bond

T. Redies


MONDAY, MAY 28, 2018

The House met at 1:35 p.m.

[Mr. Speaker in the chair.]

Routine Business

Introductions by Members

Hon. J. Darcy: It gives me great pleasure to welcome some folks who are here today — I’m not sure exactly where they’re sitting in the gallery — from the John Volken Academy in Surrey. The John Volken Academy is a long-term addiction recovery program, based on a therapeutic recovery model. It involves group and peer counselling, life skills, continuing education, work training, and so on, with professional guidance. I’m going to have the opportunity to catch up with them after question period.

I’d like to ask everyone in the House to make the folks from John Volken Academy very welcome here today.

S. Cadieux: I have a number of guests joining me, in the gallery today, for the introduction of a bill in a few minutes.

Mark Perry is the vice-president and co-founder of Canadian Retirement Developments. Gord Porter is the executive president of SAFERhome society. Brad McCannell is the vice-president of access and inclusion for the Rick Hansen Foundation. Owen Barclay is president of Accessable Home and Property Services Ltd. in South Surrey. Muneesh Sharma is the director of government affairs and communications for the Building Owners and Managers Association of British Columbia. And Bert Abbott is a longtime friend, former colleague and the current peer program manager for Spinal Cord Injury B.C.

I would ask that the House make them all welcome.

J. Thornthwaite: I, too, would like to welcome the folks from the John Volken Academy, a long-term therapeutic residential community delivering addiction recovery and life skills training right here in Surrey, British Columbia. They’ve expanded since 2008 and now offer 60 new beds for young men and women aged 19 to 32 across the country.

I’d like to welcome their CEO, Steve Whiteside, and the organizer, Shalina Kajani. I’d like to recognize Chawna Volken, Chris Urry, Samantha Brown, Russell Sloot, Cody Buffington, Andy Deleo and Chris Szulc. Thank you very much for coming and joining us here in the Legislature. We all look forward to meeting you later.

Hon. B. Ralston: Just recently British Columbia won the bid in the Canada digital supercluster competition. The supercluster holds great potential for solving the problems of the world, creating economic development and good jobs here and enhancing the lives of everyone in the province.

Dean Prelazzi is here, representing the supercluster, for a series of meetings. He’s up in the gallery. Will the House make him welcome.

T. Redies: I have two guests here today. Without them, literally, I would not be in the House — my mom and dad, Pam and Leslie Price. Also, visiting from England, my favourite aunt, Ida Wragg, is all the way from Cornwall, England. Would you please make them welcome.

R. Kahlon: I have two sets of introductions to make. Firstly, we have the Allied Golf Association that was here today. We have Trevor Smith, who’s the president of the Allied Golf Association; Trisha Larsen, who’s the marketing director; Mike Whalen, who’s a director; Keith Lyall, who’s a director and the golf course superintendent of Sun Peaks; and Jerry Rousseau, who’s a director and executive director of the Western Canada Turfgrass Association.

They hosted all the members of this House for a lunch today. We talked about the economic activity associated with golf. We talked about the 36,000 charity events that happen at golf courses around the province.

I really want to thank them, welcome them to the House today and also wish them, I guess a day early, National Golf Day celebrations. On behalf of the House, please make them welcome.

[1:40 p.m.]

I. Paton: I’d like to introduce a constituent today, a very well-known gentleman in my riding of Delta South — he lives in Tsawwassen — by the name of Dale Saip. I believe Dale is here today on business for future World Junior Hockey that’s going to take place down the road in Vancouver and Victoria.

Dale has eight terms as a Delta school trustee. He’s on the board and chair for the Vancouver Food Bank. He’s a director of the Delta Police Foundation. He’s co-chair of the B.C. Sports Hall of Fame. He’s a director of the Gitxsan Development Corp. He’s a board member for KidSport Delta and for the Delta Prayer Breakfast. He’s also the vice-president of the Vancouver Giants — a very busy gentleman.

Please welcome Dale Saip to the House.

Mr. Speaker: The member for Peace River North, and a big welcome back. [Applause.]

Statements

MESSAGE OF APPRECIATION

D. Davies: Thank you, Mr. Speaker. I do have an introduction to do, but I also want to take this opportunity to thank everybody in this House for all the well wishes that I received from everybody, and a number of people from around the province as well, as I recovered from my accident. So a big heartfelt thanks to all of you.

Introductions by Members

D. Davies: Also, as an introduction, I’d like to introduce a friend of mine that I met a number of years ago, Nathan Bauder. Actually, I think he might be one of the only law firms that is in Fort Nelson. Would the House make Nathan Bauder feel welcome.

Hon. J. Sims: I would like to introduce today Capt. Michael Marek and the 2290 B.C. Regiment DCO Royal Canadian Army Cadet Corps, visiting from my community of Surrey-Panorama.

As many of you know, the aims of the Canadian cadet movement are to develop in youth the attributes of good citizenship and good leadership, promote physical fitness and stimulate an interest in the sea, land and air activities of the Canadian Armed Forces. They have a rich history in 2290, and they hope to improve the lives of all their youth by giving them a sense of belonging and family, challenging them to reach their limits and teaching them to remember our history and boldly embrace the future. At 2290 Cadets, it’s all about fun, challenge and friends.

May I ask the House to welcome them to the precinct.

R. Kahlon: In the House today is Kelly Mann, president and CEO of the B.C. Games Society. Throughout this province, young people aspire one day to go to the World Cup or to compete in the Olympics, and there are people, like Kelly, who make those dreams reality.

Kelly led the B.C. Games Society for 26 years. He was directly involved at 85 provincial games all across this province. Kelly has announced that he will be retiring. Many members of this House have met Kelly over the years and know the good work he does throughout this province. He will be greatly missed. But I suspect he’ll have more time to volunteer on games across the province.

I hope this House can join me and join all of us in thanking him for his service and also in welcoming him back in this House.

J. Brar: I have two sets of introductions. I would like to welcome a good friend of mine from Surrey, Kultarjit Thiara. He’s a very well-known member of the local community. Many people in this House know, probably, that he owns Vantaj. He also has been a good person to give back to the community. He’s a member and former president of the Newton Rotary Club. With him is his beautiful wife, Sardip Thiara.

There are three people who are visiting from almost the other side of the globe. Visiting from India are Injit Singh Johal, Injit Quad Johal and Gorpeet Singh Johal. They’re all here. I would ask the House to please give them a warm British Columbia welcome.

M. Hunt: I just want to join with my friend from Surrey-Fleetwood in welcoming Kultar and his wife here. He has served for many years on the Agricultural Advisory Committee in Surrey and has just done a great job in serving the city of Surrey.

[1:45 p.m.]

Also, we’ve had both the minister and the critic introduce the Volken Academy. I just want to introduce one particular member of that. That, of course, is Chawna — Volken, by the way. She is the mother to every one of those young men and women who are there fighting with the demons in their life and winning and conquering over them. She’s the mother to them all, and I want to introduce her as the mother of all.

To Chawna Volken.

A. Weaver: It gives me great pleasure to introduce James Marshall, former B.C. Green candidate in Vancouver–West End, who is here visiting the gallery. He’s writing a book. He’s an animator and artist. He’s been working for 11 years as a technical artist, as well, in Vancouver’s vibrant game and film industry. Would the House please make him feel very welcome.

Hon. K. Conroy: I have a couple of introductions I’d like to make today. The first one is…. We all have those people in our offices that keep us organized. I wouldn’t know what I’d do without my administrative coordinator, Emily White, who’s here today in the gallery with her good friend Alex Dauncey-Elwood. Would you please join me in making them welcome.

I also have someone from my constituency, which doesn’t happen very often. Here in the gallery today is Gordie DeRosa. He’s a former councillor from the city of Trail, a longtime Trail resident, activist and all kinds of different things. He’s here today with his daughter Renée and his granddaughter Neveah.

Neveah is just the most amazing young singer. She belts out the tunes like I’ve never heard anybody do before. You will see her name. Remember her name — Neveah — because you will hear this young woman sing somewhere in the future, somewhere out there. She has just got the most amazing voice. You can go on line and look up the Columbia River and see the song she and her grandpa wrote and sang for the Columbia River.

Please join me in making them welcome to Victoria.

Mr. Speaker: The Minister of Tourism, Arts and Culture, and a big welcome back to you as well. [Applause.]

Statements

MESSAGE OF APPRECIATION

Hon. L. Beare: Thank you very much, hon. Speaker.

I have an introduction to make, but I’d first like to start by thanking all the members of the House, yourself included, for all your warm wishes over the past six weeks. It was very touching.

I’d like to thank the Minister of Agriculture, who stepped in very ably and did two estimates and filled my shoes so well. Thank you so much.

To the member for Maple Ridge–Mission for filling in, in my community and for attending all the school performances and elementary school presentations that I couldn’t do. Thank you.

A big thank-you, especially, to the staff at the ministry and my staff in my office for taking care of everything while I was gone.

To St. Paul’s Hospital, Dr. Bashir and all the team there, for taking good care of me over the past six weeks.

Introductions by Members

Hon. L. Beare: I would like to recognize some special guests joining us today for question period. In the House today, we have Tracy Eyssens, Mary Gerges and George Taylor from Indigenous Tourism B.C. Tracy is the CEO, Mary is a senior adviser, and George represents Vancouver Island with ITBC.

The latest statistics from Indigenous Tourism B.C. indicate 401 Indigenous tourism businesses, with 7,400 full-time employed jobs, contributing $705 million, provincial, to our economy in 2016-2017. They are a great organization. Would the House please join me in congratulating them on the work that they do in supporting this important sector.

J. Brar: Last but not least, I would like to welcome a friend of mine from Surrey-Fleetwood, Justin Schmid. Justin is a constituent of Surrey-Fleetwood and also a good friend. He’s a super supporter of mine. He represents CUPE as kind of a legislative representative. He does a great job to represent the workers in British Columbia, so I would like to ask the House to please make him feel welcome.

Tributes

JUNE CLARK

J. Rustad: On a sad note, I’d like to mention that June Clark, who was known to many in Vanderhoof, the north and throughout the province, tragically left this earth on May 18 due to a motor vehicle accident. She will be deeply missed by many. She was a strong person of faith, which was evident in everything that she did. Whether it was her church, advanced education, health, community, politics or so much more, she always found time to lend a hand.

June’s kind and generous heart touched many lives, and her legacy of love and goodness will continue to echo through generations to come.

[1:50 p.m.]

Introductions by Members

L. Reid: I’d like to recognize Vince Miele today. He’s a gentleman who relies on a wheelchair for mobility, and he’s particularly interested in seeing all new construction be barrier-free, particularly restaurants.

Hon. D. Donaldson: I’d ask the members in the chamber today to help me welcome the executive of the North Central Local Government Association who are visiting the Legislature today, meeting with members of cabinet and members of the official opposition. Gord Klassen is the new president of that organization. They do great work in the northern 70 percent of the province, which their area covers.

Would the members please wish them well and help me welcome them.

Introduction and
First Reading of Bills

BILL M218 — BUILDING
(NEW HOUSING ACCESS)
AMENDMENT ACT, 2018

S. Cadieux presented a bill intituled Building (New Housing Access) Amendment Act, 2018.

S. Cadieux: I move that the bill intituled Building (New Housing Access) Amendment Act, of which notice has been given in my name on the order paper, be introduced and read a first time now.

In 2012, almost 14 percent of the Canadian population aged 15 years or older, or 3.8 million individuals, reported having a disability that limited their daily activities. In B.C., the percentage is slightly higher at 14.8 percent of our population. In the population over age 65, the incidence rate climbs to 33 percent. Over 40 percent have severe disabilities, and 7 percent have disabilities requiring assistive devices.

If we were to use a study from the U.S., about one-third of housing is potentially modifiable for a person with a mobility disability. Less than 5 percent is accessible to individuals with moderate mobility difficulties, and less than 1 percent of housing is accessible for wheelchair users. Obviously, this poses a challenge for people who find themselves living with a disability. It’s also a huge challenge for aging in place.

As responsible legislators, we have an obligation to step in when the market has not or cannot meet a societal need. We have had accessible standards for public spaces for decades, noting as a society that inclusion and access are fundamental rights and a value to which we are all committed. Arguably, we’ve done quite well. Inclusion and access are values we promote and accept. However, we’ve missed a fundamental need, housing.

While standards are readily available, we have made the use of those standards and building to them optional. We must commit with fortitude to delivering inclusive homes that meet a wide range of needs for those inclusive communities that we regularly champion. Whether for families with young children, someone returning home after a hospital stay, a young person with a disability looking to move for employment or an older person with increasing mobility challenges, providing accessibility and flexibility in all new homes should be one of the key tests against which we measure our success.

This legislation would require that all new multi-unit housing built would consider accessibility. A percentage of all new housing would be required to meet the criteria of adaptable or be SAFER Home certified or visitable.

May 27 to June 2 is national AccessAbility Week. No better time to discuss how accessible housing is an important building block for inclusion and that we need to do it right from the start, not as an afterthought.

Mr. Speaker: The question is first reading of the bill.

Motion approved.

S. Cadieux: I move that this bill be placed on the orders of the day for second reading at the next sitting of the House after today.

Bill M218, Building (New Housing Access) 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 M219 — BRITISH COLUMBIA
ACCESSIBILITY ACT, 2018

L. Reid presented a bill intituled British Columbia Accessibility Act, 2018.

L. Reid: I move that a bill intituled British Columbia Accessibility Act, of which notice has been given in my name on the order paper, be introduced and now read a first time.

Mr. Speaker, it’s our collective responsibility to ensure that each British Columbian has an equal opportunity to enjoy a full and productive life. Persons with disabilities in our province continue to face a variety of barriers in our built environment that can prevent them from achieving full and equal participation.

People with physical disabilities make up a large and growing consumer group, representing 14.8 percent of consumer spending, or $164 billion. By 2013, real spending by this group was anticipated to grow at three times the pace of the overall population, representing 20 percent of the total consumer market, or $316 billion annually.

[1:55 p.m.]

Improvements to workplace access would allow Canadians with disabilities to work more hours, thus increasing our GDP. Almost half of Canadians with physical disabilities who are currently working believe they would be able to work more hours if their workplaces were made more accessible.

Achieving accessibility will improve the independence and well-being of persons with disabilities, who add tremendous value and make many positive contributions to our communities, workplaces and economy. This act will put us on a path to an accessible British Columbia by 2024 by ensuring that all new commercial construction is accessible.

Mr. Speaker: The question is first reading of the bill.

Motion approved.

L. Reid: 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 M219, British Columbia Accessibility 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)

CITIZEN OF THE YEAR AWARD
RECIPIENTS IN MAPLE RIDGE

B. D’Eith: When Ryder Moore was six years old, his mother and…. They were driving down the Vancouver Eastside, and he saw a man with bare feet. He told his mother that he wanted to give the man his boots. His mom said he couldn’t, but he had other ideas. Now he is eight years old, and Ryder has raised over $10,000 to provide boots for the homeless. Kits provided by Ryder’s Rainboots include rain boots, socks, gloves, a poncho and a handwritten letter by Ryder. Every time he gives it out, he writes his own letter.

The Maple Ridge Community Foundation now awards Citizen of the Year Awards in three categories: youth under 18, people under 40 and the Lifetime Achievement Award. Ryder was the first recipient of the under-18 award and was acknowledged at the May 12, 2018, awards gala.

The first recipient of the under-40 award went to Teesha Sharma, in our community, for her volunteer outreach. Teesha has a wealth of life experience. She commits herself to local homeless youth by preparing daily meals, administering first aid and providing personal support. She is on the board of the Golden Ears Transition Initiative and is a founding member of the Youth Wellness Centre. Teesha also works with the CEED Centre in Maple Ridge.

Dr. Biju Matthew, a psychiatrist at Ridge Meadows Hospital, was awarded the Lifetime Achievement Award for his volunteer work at the Ridge Meadows South Asian Cultural Society, the Ridge Meadows Hospital Foundation, the Youth Wellness Centre, the nurse practitioner program and the MRCF 25-40 Campaign. He’s also the author of the best-selling book Super 30: Changing the World 30 Students at a Time, which is being made into a feature film.

It’s amazing to be part of a community that produces such impactful people in a multitude of generations. Ryder Moore, Teesha Sharma and Dr. Biju Matthew are examples to all of us of the power of volunteerism and the difference that one person can make in the world.

KELLY MANN

M. Stilwell: Today it’s my privilege to recognize a friend who has contributed so much to sport in British Columbia, more than anyone I can think of. I can tell you, Mr. Speaker, that as an athlete, sometimes you become so tunnel-focused on your discipline that you forget to thank the people who make it all possible for you to even have that chance to compete: the volunteers, the officials, the sport administrators, those who make it possible.

Having influenced sport policy for decades, provided leadership and athlete and sport development and helped foster community investments in sport, Kelly Mann leaves behind a tremendous legacy. Kelly was the president and CEO of the B.C. Games Society for 19 years, retiring this summer. I am inspired by all that he has accomplished.

On top of the B.C. Games, he co-founded KidSport Greater Victoria, which has provided grants to financially disadvantaged children on south Vancouver Island to help cover registration costs for sport leagues and programs, giving kids that chance to be healthy, active and even to follow their dreams. He has received the Rick Hansen Difference-Maker Award, the Community Sport Hero Award, the Queen’s diamond jubilee award and the B.C. Community Achievement Award. Certainly an impressive resumé.

Part of his lasting legacy, however, will be those he has helped to inspire and reach greatness. The B.C. Games has served as an opportunity for countless athletes to hone their skills. For many, the B.C. Games have been the stepping stone for sport excellence. Longer than Kelly’s list of awards and accolades is the catalogue of B.C. Games alumni who went on to become Olympians and Paralympians.

[2:00 p.m.]

This July the Cowichan Valley will host the 2018 B.C. Summer Games. Over 3,500 athletes, coaches and officials will be there, as will Kelly Mann, overseeing his final games before hitting the golf greens in his retirement.

Today he joins us here in the gallery. On behalf of the chamber, thanks for everything you’ve done, Kelly.

ALEX SANGHA

R. Singh: The Governor General of Canada’s Meritorious Service Medal is given as recognition to an individual for exceptional deeds that bring honour to our country and to highlight remarkable achievements that are accomplished over a limited period of time. Since its inception in 1991, only 289 civilians have been granted such a distinction.

One of this year’s winners of the Governor General’s medal grew up near my constituency in Surrey. Alex Sangha, founder of Sher Vancouver, has recently been announced as a 2018 recipient of the Meritorious Service Medal for his incredible advocacy group with the South Asian LGBTQ community.

Alex founded Sher Vancouver to fill the desperate need for advocacy, education and peer support in the underserviced LGBTQ South Asian community. He has worked tirelessly for many years building Sher Vancouver into the multifaceted organization you see today and has helped so many of our community members find their voice and get the support they deserve. His contributions to our society are immeasurable.

I’ll leave you with a quote from Alex on why he does the important work that he does. “Someone once said a society is judged by how it treats its most marginalized members. Many of us are different and unique in some way. We all need to stick together and support each other and defend ourselves from the forces of ignorance, fear and hatred. Let us all celebrate the diversity and differences that make up our communities and country.”

RESPONSE TO LANDSLIDE BY
SEYMOUR SALMONID SOCIETY

J. Thornthwaite: On December 7, 2014, nature struck North Vancouver, and 80,000 cubic metres of debris slid into the Seymour River, raising water upstream by ten metres and blocking fish migration. Enter the Seymour Salmonid Society, led by president Shaun Hollingsworth, who stepped up to the plate, taking up an insurmountable task.

The first challenge: with the stream blocked, how will salmon make it upstream to spawn? Well, with the help of 3,000 volunteer hours in 2015, they began a trap-and-truck program to get the salmon upstream, physically carrying the salmon around the slide. Collectively, over three years, they’ve taken over 2,500 fish upstream. They’ve also been monitoring and researching the behaviour and health of the fish over the years.

Then Shaun came to me and began to assemble a wide range of stakeholders, including the Squamish Nation, the district of North Vancouver, Metro Vancouver, DFO and the Tsleil-Waututh First Nation. While they built a fish fence to help with the trap-and-truck program, they knew this was unsustainable. They had to clear the slide. That’s when the plan to break the rocks at the toe of the slide was hatched, starting in the summer of 2016.

Using both pile drivers and some low-level explosives, considerable progress has been made over two summers, with more work commencing this year. Some of the rocks were the size of an average house. The idea was to break these large rocks into small rocks so that the salmon could squeeze through them.

Mr. Speaker, the Seymour Salmonid Society has done a tremendous job. Their work to ensure that salmon make it upstream while at the same time hatching a plan to make the slide passable is remarkable. It’s our hope that in a year’s time, we’ll be celebrating the first group of salmon to make it up on their own. For that, they have the society to thank.

ACCESSIBILITY AND INCLUSION
FOR PERSONS WITH DISABILITIES

N. Simons: I’m pleased to speak in the House today in celebration of our province’s first AccessAbility Week. This week has been proclaimed with the goal of promoting inclusion and accessibility in communities and workplaces and celebrating the contributions of persons with diverse abilities across British Columbia.

This week is a time to recognize the efforts of individuals and organizations that are actively removing barriers to give everyone a better chance to participate and succeed in their workplaces, their schools and their communities.

[2:05 p.m.]

Mr. Speaker, 14.8 percent of the people in British Columbia — I just learned that this afternoon — self-identify as having a disability, and these numbers will continue to grow as our population ages. Sometimes inclusion is an afterthought. Whether it’s physical barriers that limit or prevent access to buildings or shared spaces, like parks and recreation facilities, or social barriers that prevent full community participation or access to employment opportunities, we can and must do better in how we create a more equitable and accessible province.

Diversity is British Columbia’s strength. By supporting all people in breaking down barriers for persons living with disabilities, we all benefit. Our province is committed to building a better British Columbia for people with disabilities and to upholding and safeguarding the principles outlined in the United Nations convention on the rights of persons with disabilities, including equality of opportunity and full and effective participation and inclusion in society.

As we turn to our constituencies for the summer, I’ll encourage all members in this House to think about how we can be advocates for inclusion and access in our communities. We have a responsibility to ensure that everyone, regardless of ability, has the equal opportunity to participate in and enjoy everything our beautiful province has to offer.

PERFORMING ARTS B.C. FESTIVAL

D. Ashton: It’s with great pride today that I rise to tell you about the Performing Arts B.C. Festival, which will be held on the 29th of this month until the second of June. It will be its 54th year running, and I’m excited to say that it is growing every year. Currently there are approximately 32,000 young musicians, dancers and dramatic artists who compete and participate annually. The provincials are hosted by a different regional festival every year and are well anticipated and very well attended.

Performing Arts B.C. is actually a parent organization of over 33 regional performing arts festivals across the province. In a way, this creates an arts season in British Columbia, a period of time in which artists from our province can all come together as a community. Awards are given across individual festivals for individual groups or group performances, but the festival also recognizes outstanding contributions to the event itself. Adjudications are interspersed with classes, workshops and coaching, which round out the entire week.

The festival is a lot more than just competition. It’s about art itself and the community. I know that some sitting in this chamber are artists and have benefited immensely from supportive communities when they just started to learn, so I’m happy to rise today and announce that the provincials this year will be hosted right here in beautiful Victoria. I hope each and every one of us has an opportunity to attend.

Oral Questions

IMPACT OF EMPLOYER HEALTH TAX
ON BUSINESSES

A. Wilkinson: We’ve heard at great length from the Finance Minister about how only 15 percent of businesses in British Columbia will be affected by the new government employer health tax, which is nothing more than a payroll tax. Now the truth is coming out from industry, where the Greater Vancouver Board of Trade, the Independent Contractors and Businesses Association, the B.C. Tourism Industry Association, the B.C. Restaurant and Food Association have come out and said that, in fact, 61 percent of small businesses will be paying this tax.

Now that the picture’s becoming clearer, will the Finance Minister admit that small businesses are going to be the ones most directly hit by this tax and that it’ll have a detrimental effect on our economy?

Hon. C. James: We certainly appreciate the feedback that we received, but I think it’s important to note that it is 249 businesses who self-selected to take part in this survey, so we will continue to use the Ministry of Finance’s data. That data shows, once again, that 85 percent of small businesses in British Columbia will not be paying the employers health tax.

I think it’s also important to note that other provinces that have moved on a payroll tax…. British Columbia will have the lowest payroll tax rate across this country when it comes to our payroll tax.

I think the real question that is in this House is: what would the member’s choice be? I’m presuming their choice would be to not eliminate MSP premiums, to keep a regressive tax and to make life more difficult for British Columbians.

Mr. Speaker: The Leader of the Official Opposition on a supplemental.

A. Wilkinson: Well, the Minister of Finance has asserted once again that she’d rather just stay out of touch with the business community. Now she’s ignoring a survey from four major organizations in the province.

[2:10 p.m.]

She’s launched a direct attack on small business with the payroll tax. Sixty-one percent of the reporting businesses say they’ll have to pay it, and of those, those with less than 50 employees will pay an average of $40,000 and will feel obliged to lay off staff. This is what the Finance Minister has accomplished while she’s busy counting inactive holding companies, shelf companies — all these things with no employees — and saying, “Don’t worry; they won’t pay any,” because they don’t have any employees.

Will the Finance Minister finally admit that her payroll tax is detrimental to small business?

Hon. C. James: Once again, I think the member is showing that he is not interested in supporting British Columbians with affordability, because getting rid of MSP premiums will save $900 for individuals and $1,800 for families. I’m very proud of the balanced approach we’ve taken.

Half a billion dollars in support for businesses since our September budget update. We’re eliminating MSP. We’re eliminating PST on electricity, which supports businesses. We lowered the small business tax rate, which supports businesses. We are investing in the two areas that, in fact, the Vancouver Board of Trade, which put the survey together, said were two of their top priorities: child care and housing. Historic investments to support people.

Mr. Speaker: The Leader of the Official Opposition on a second supplemental.

A. Wilkinson: We only have to actually go and visit small businesses, which the Finance Minister should give a try at. Organizations like Sonic Enclosures in the Tilbury Industrial Park, in Delta. Organizations like Evergreen Herbs in Surrey…

Interjections.

Mr. Speaker: Members, may we hear the question.

A. Wilkinson: …run by Ron Brar.

These are businesses that say the tax is hitting them right where they live. They’re going to have to reduce staff. They’re shrinking their companies because of the payroll tax — period.

When is the Finance Minister going to finally accept that she’s actually doubling up the taxes next year and that it’s going to be detrimental to small business? When will she figure this out?

Hon. C. James: Only the other side would say that half a billion dollars in support for businesses isn’t supporting businesses. That’s extraordinary.

The member talks about employment. We have the lowest unemployment rate in the country — 5 percent in April here in British Columbia. Employment in April rose by 2,900 jobs — in April alone — showing an increase in employment. We are seeing wages increase. We see retail sales up. We continue to see our economy booming. We’ve had rating agencies confirm that. We have a great, growing economy in British Columbia, including strong businesses, including strong communities, and our balanced approach is going to continue.

S. Bond: Perhaps the Finance Minister would like to recall her comments when she tabled the budget — so very complimentary of the financial circumstances she inherited in British Columbia, thanks to the hard work of people on this side of the House.

The Finance Minister can stand in this House every day and continue to repeat….

Interjections.

Mr. Speaker: Members, please. We shall hear the question.

S. Bond: Thank you, Mr. Speaker.

The Finance Minister continues to stand in this House and repeat her claims about MSP, but she’s becoming part of a very small group of people who believe that. Let’s be clear. The MSP premiums are being replaced by the surprise employer health tax.

For more than three months, this Finance Minister has deflected and dismissed the concerns of businesses in British Columbia. They’ve all been saying the same thing. The surprise NDP employers health tax will impact their livelihoods, and it will lead to job losses.

We now have a report that provides some numbers. Twenty-eight percent of member businesses expect to reduce employee benefits, and 30 percent of small business members expect to lay off staff. The report lays out the facts for the minister. It’s clear the new NDP tax will hurt small businesses in B.C.

Will the minister finally listen and rethink her tax?

[2:15 p.m.]

Hon. C. James: I’d like to remind the member that we ran on a very clear platform in the last election. The election was brought forward, and we ran on a very clear platform of affordability for families.

We are eliminating MSP premiums, and we are going to ensure support for quality health care that everyone relies on, including businesses in British Columbia, by ensuring, through the lowest payroll tax across this country, that we bring in resources for health care. That’s critical.

I would remind the member again. We do appreciate the feedback. But let’s remember. It’s 249 businesses, self-selected, that provided the feedback. We’re going to continue to work with the Ministry of Finance data, and we’re going to continue to provide a balanced approach, where we support families with affordability and encourage businesses through half a billion dollars in investment.

Mr. Speaker: Prince George–Valemount on a supplemental.

S. Bond: Well, perhaps I should remind the Finance Minister that the platform that they ran on…. In fact, the comments that the Premier made said: “No new taxes.” In fact, that’s what their platform said. And the employer health tax — nowhere to be found, a complete surprise and shock to British Columbia’s businesses.

The CFIB has reported that 60,000 businesses in British Columbia, mostly small businesses, will pay the tax. This tax, despite the minister’s protestations, is a direct attack on small businesses. They make up over half the jobs in our province and more than a third of our GDP, the highest rates in the country.

Here’s the message from small businesses. The minister says she wants to listen. Here’s what they’re saying. “Job creators are reeling. The B.C. NDP must rethink this tax.”

This minister admits she didn’t do any financial modelling before introducing this half-baked tax. Now that the homework has been done for her, will she rethink the tax?

Hon. C. James: We have committed to the people of British Columbia to eliminate MSP premiums, and we will be doing just that in 2020.

We have committed to ensuring a competitive business climate. We have lowered the small business tax rate in British Columbia to support businesses. We are eliminating PST on electricity to support small businesses and large businesses and industry across our province.

Most importantly, the two top issues for the Vancouver Board of Trade and for businesses across British Columbia — housing and child care…. We are making historic investments to support that crisis in our province.

MALAHAT HIGHWAY AND
ALTERNATIVE TRANSPORTATION ON
SOUTH VANCOUVER ISLAND

S. Furstenau: In 2007, Stantec produced a report that identified a number of potential solutions to address the challenges presented by the Malahat. At the time, the Minister of Transportation declared: “Overall, the Malahat is performing well and can handle current capacity.” The government of the time chose to invest in safety upgrades to the highway.

Since then, over $65 million has been spent on these upgrades. However, none of these safety upgrades can address the fundamental issue that on southern Vancouver Island, a region with a population approaching half a million people, there is a windy stretch of single-lane highway in which an accident can essentially sever access between the capital regional district and the rest of Vancouver Island.

There is no single magic bullet that will solve the problem that is the Malahat. But there has been one factor that’s been missing for far too long: the political will to truly tackle this issue.

My question is to the Minister of Transportation. Does this government have the political will to think beyond safety upgrades and move forward with solutions to southern Vancouver Island’s greatest transportation challenge?

Hon. C. Trevena: I’d like to thank the member for the question. I understand that she, like tens of thousands of other people, were caught in the traffic there. But first of all, I would like to wish those drivers who were injured in the accident a speedy recovery. We know that safety is the number one issue for any of our highways. So when people are injured, we obviously want to make sure that we are dealing with that.

[2:20 p.m.]

The member is quite right; there is no single magic bullet. I have asked my staff to look again at the 2007 report on the bridge as a potential. But bearing in mind that that is 11 years ago and there have been changes in not just the engineering and technology that’s involved but looking at it through an environmental lens, through First Nations consultations, a First Nations lens, there is no single issue, no single way that we’ll be able to deal with the problems.

This side of the House, this government, is committed to dealing with the traffic on the south Island — in fact, dealing with the Island as a whole. It was ignored for many, many years, as we all know. Our government is committed to making sure that it’s more than just safety measures but that we are looking at how we can move people around the south Island and through the Island as safely as possible.

Mr. Speaker: The House Leader, Third Party, on a supplemental.

S. Furstenau: I appreciate the minister referring to the people that were injured in the crash. I also think about them, and I hope for the very best outcome in that.

A significant threat to good decision-making is when governments focus on the conditions of today rather than create the solutions for the future. Currently a car is essentially necessary for movement between Cowichan, the CRD and Saanich, yet we have an unused rail line, potential for increasing ferry capacity and the very limited commuter buses that could use an increase to frequency as well as flexibility in direction.

We do need to think about an alternate route for cars, but we also need to invest in alternatives to cars.

Interjections.

Mr. Speaker: Members.

Member, proceed.

S. Furstenau: Thank you. I think, for the half a million people living on southern Vancouver Island, this is an important question.

My question is again to the Minister of Transportation. Can she commit to producing a timeline for the implementation of alternative transportation solutions for southern Vancouver Island?

Hon. C. Trevena: Once again, I thank the member for her question. She’s right. These are very important issues for the many people who live and work in the southern part of Vancouver Island, as well as those travelling to the southern part of Vancouver Island and the many tourists we get who are using our highways. People want to make sure they can travel safely and efficiently.

We’re investing a record amount in B.C. Transit to look at how we can build up B.C. Transit. We are looking at the E&N, as the member well knows. We’re looking at how we can ensure that people can travel safely and quickly from the Western Communities, which are some of Canada’s fastest-growing communities, using the E&N corridor and working with the Island Corridor Foundation about the rest of the rail line. So we are looking at many different ways of dealing with traffic congestion and the realities of today, looking to the future.

I agree completely with the member that we can’t just be building our way out of today’s problems. We’ve got to be looking to the future. That’s part of our job as legislators. We’ve got to be thinking of the next generation. I hope that our transportation vision will actually create a legacy for that next generation.

IMPACT OF EMPLOYER HEALTH TAX
ON BUSINESSES

J. Isaacs: Peregrine is a homegrown B.C. manufacturing company in Burnaby, struggling with how to pay a new $80,000 annual tax bill that they will be hit with as a result of the new employers health tax. Tim Bell writes that he and his partners in the company have “invested our life savings and sweat equity to grow the company from eight employees to 75 employees. Every dollar we have earned has been reinvested back into our business.”

We now know that 30 percent of small businesses surveyed expect to have to reduce staff because of the minister’s new tax. Is this the option the minister thinks businesses should pursue? Does Peregrine have to lay off employees?

Hon. C. James: Well, it is not surprising to me that the old government would say that it was better to keep the MSP, to keep a regressive tax and to make life difficult for British Columbians. It is no surprise when you take a look at the record on the other side and see the doubling of MSP premiums under that side.

[2:25 p.m.]

We are eliminating MSP premiums. We are putting money in the pockets of individuals and businesses. We have invested in business, half a billion dollars. We are investing in health care. Maybe I can, on behalf of the Minister of Health, just give a couple of examples of where those resources are going.

We just launched our primary care strategy, to ensure that people have faster and better access to health care. That’s going to include ten urgent primary care centres, offering weekend and after-hours care, and 15 primary care networks in Burnaby, in Comox, in Prince George, in Richmond and in South Okanagan–Similkameen. That will help businesses, families and communities grow and be healthy in British Columbia.

Mr. Speaker: The member for Coquitlam–Burke Mountain on a supplemental.

J. Isaacs: Well, actually, it was this government that was eliminating the MSP, and it’s that government that is replacing it.

Interjections.

Mr. Speaker: Members. Members.

J. Isaacs: According to the Canadian Federation….

Interjections.

Mr. Speaker: Members, if we may hear the question.

J. Isaacs: Thank you, Mr. Speaker.

According to the Canadian Federation of Independent Business, 60,000 businesses in British Columbia, mostly small businesses, will pay the tax, and 30 percent of small businesses surveyed expect to cut staff to pay the minister’s new tax.

Tim, from Peregrine, writes that he has very few options to pay this significant new tax. “The bottom line is that this tax will have an immediate impact on our employees and our growth plans.”

Will the minister do the right thing and ensure that Tim doesn’t have to lay off any employees?

Hon. C. James: I understand the member is new, but perhaps she’d like to take a look at the number of times that MSP was increased by the members on the other side. Or perhaps she would like to review whether it was the first throne speech or the second throne speech or the clone speech where the government all of a sudden decided that maybe they should look at MSP premiums.

We are keeping our commitments. We are getting rid of MSP premiums. We are saving families $1,800, or $900 for individuals. We are investing in health care and investing in maintaining a competitive business environment through eliminating PST on electricity, through lowering small business tax rates and investing in child care and housing, which are critical to businesses in British Columbia.

IMPACT OF EMPLOYER HEALTH TAX ON
NON-PROFIT AGENCIES AND SUCH SECTOR

T. Redies: The Minister of Finance has said that her budget documents “provide all the information that taxpayers and citizens in British Columbia need to know,” but it’s painfully obvious, all spring, that this is just not true. More than three months after the budget was introduced, societies, non-profits, hospitals, universities and schools still do not have the information they need to set their own budgets.

When will the minister clarify if these groups will be reimbursed for the millions of dollars in additional costs caused by the MSP replacement tax?

Hon. C. James: As I’ve said to the member, as I’ve said to this House many times and as I’ll say again, we have continued the usual implementation process, which is making sure that all the information is gathered. We’re talking to school boards, talking to charities and not-for-profits and examining which have paid the MSP and are actually saving 50 percent this year because we’ve reduced MSP by 50 percent. They’re saving MSP by 50 percent next year, because there’s a reduction in MSP. We will be taking a look at that, and before the summer, we will make sure that that information is out.

Mr. Speaker: The member for Surrey–White Rock on a supplemental.

T. Redies: The Finance Minister is preparing a first-quarter update and knows full well what the cost of the new NDP half-baked tax will be.

Either this Premier and Finance Minister are so incompetent that they’ve yet to decide what, if anything, they intend to do about it, or they are waiting for a more politically convenient time to explain how they intend to try and fix this tax blunder.

To the minister, which is it?

[2:30 p.m.]

Hon. C. James: We are addressing affordability for families by eliminating medical service premiums. That is a savings of 50 percent for this year. We are implementing the employer health tax in January next year so that we have the year for implementation. We are listening to those individuals at school boards and universities, charities and not-for-profits. We are working through the implementation.

Interjections.

Mr. Speaker: Members.

Hon. C. James: Now, I understand that the other side wouldn’t have any concept of listening to British Columbians. I understand that. It’s not something familiar to the other side. We believe in listening to British Columbians. We are going to make sure that this works. We’re working through the implementation. It’ll be out before the summer.

IMPACT OF TAX CHANGES ON
B.C. WILDLIFE PARK

T. Stone: For 53 years, the B.C. Wildlife Park up in Kamloops has focused on encouraging respect for B.C.’s wildlife and preserving biodiversity through education, research and, importantly, rehabilitation services. The B.C. Wildlife Park is also a major tourism draw, attracting over 100,000 visitors each year and making a huge economic impact in Kamloops and the surrounding area.

Yet all of this is in jeopardy due to the new NDP imposed costs, including the employer health tax. The B.C. Wildlife Park has actually written twice to request a meeting with the Minister of Finance, but no response in 12 weeks.

This is what General Manager Glenn Grant says: “I know that there have been news reports that they’re in consultations with not-for-profits, so it’s disappointing that we’ve requested a few times to have a face-to-face meeting anywhere in the province.” But they’ve had no reply at all.

My question to the Minister of Finance is this. Glenn deserves to hear from this minister. Will she fully offset the taxes and the other costs that she and the NDP have imposed on the B.C. Wildlife Park?

Hon. C. James: Again, I’ve already spoken to the issue of working with charities and not-for-profits. I have received the Wildlife Park’s information. I’ve certainly reviewed it. My staff have actually been talking to them about whether there’s an opportunity for a meeting coming up.

We will continue to work through the implementation, as I said, listening to British Columbians. It’ll be out before the summer.

Mr. Speaker: The member for Kamloops–South Thompson on a supplemental.

T. Stone: The B.C. Wildlife Park actually faces additional costs, in the range of $200,000, in new taxes and other costs that are being imposed by the Minister of Finance and the NDP on their operation. Frankly, they deserve answers. But they’ve received nothing — not even the courtesy of a response from the Minister of Finance — in over 12 weeks. This is creating all kinds of stress and uncertainty that’s not necessary.

General Manager Glenn Grant says: “We can raise our admission rates, but this will likely reduce our attendance. Another option is to reduce some of the programs and the services that we provide. None of these options will be sufficient to keep the B.C. Wildlife Park financially viable over the coming few years and will only delay the inevitable, which is closing the park and putting our employees out of work and displacing the wildlife that is in our care.”

Non-profits, small businesses, school boards, universities and municipalities are all in chaos right now because of this minister’s half-baked taxes. When will this minister fix this tax blunder and the fear that it has caused?

Hon. C. James: Well, I’m sorry, but all British Columbians are paying the price for that member and that side’s mess at ICBC that left a $1.3 billion loss, which means every individual in British Columbia is going to be paying because of the mess that was left.

We have had discussions. My staff have talked to the Wildlife Park and had a conversation to look at booking a meeting. We’re going to make sure that we’re working through these issues.

[2:35 p.m.]

IMPACT OF EMPLOYER HEALTH TAX
ON SCHOOL DISTRICTS

D. Davies: On February 27, I had an opportunity to ask the Minister of Education if there was money in the budget to cover the shortfall that all school districts across this province, or most, are experiencing as a result of the new NDP employer health tax.

Now, a lot has happened over the last three months, but incredibly, here we are, and school districts still do not have the answer. So I ask the Minister of Education again: is there money in the budget for school districts, to fully offset the cost of this NDP tax grab?

Mr. Speaker: Minister of Education.

Hon. R. Fleming: Thank you, Mr. Speaker, and most importantly, thank you to the member for the question. It’s great to see him back in the House, and I really do appreciate him being here and being able to ask that — and that he has recovered from his accident.

We have discussed this quite extensively. School districts have been meeting with the Minister of Finance. School districts have been passing balanced budgets with record surpluses in the last few weeks.

School districts are enjoying an additional $550 million in operating funds this year over the last complete year that that government was in power. There are over 3,500 new teachers in the school system this year. Six hundred additional educational assistants are helping our kids with their learning needs this year. Our government has passed on savings in the tens of millions of dollars. We’ve cut $10 million off broadband Internet service. We’ve returned all of that money to school districts.

So I say to the member…. While the Minister of Finance is continuing to hear the perspectives of school districts, I’m happy to say that right now there are record investments in our kids and in our school system. That’s a bet on the future prosperity of this province that our government is proud of.

Mr. Speaker: Peace River North on a supplemental.

D. Davies: The soapbox and the ramblings again, to skirt around answering a very simple question. The minister for three months has refused to clarify if school districts will be kept whole from the extra costs of this new NDP employer health tax. School districts deserve answers, not rhetoric and ramblings.

Again to the minister, a very simple question: is there new money in the budget for school boards to cover this new tax — yes or no?

Hon. R. Fleming: Well, I thought that I made it clear to the member that there are hundreds of millions of new dollars in the education system, and that’s just in ten short months. That’s a result of the people of British Columbia voting last year for education in B.C. We’ve returned tens of millions of dollars in returned savings to school districts. We gave them one instruction: spend it on kids.

We’ve got school districts in the budgeting process right now, and most districts are reporting the shortest period of budget-making in their histories. Many of them are reporting healthy surpluses. They’re reporting additional investments that they’re making into district education programs. There was a tweet just the other night from Nanaimo-Ladysmith school district, from superintendent Blain: “We have room in the SD 68 budget to add $3 million worth of new initiatives next year.”

He ends it #greatnews, and I couldn’t agree more.

[End of question period.]

Reports from Committees

CHIEF ELECTORAL OFFICER
APPOINTMENT COMMITTEE

J. Brar: I have the honour to present the report of the Special Committee to Appoint a Chief Electoral Officer.

I move that the report be taken as read and received.

Motion approved.

J. Brar: I ask leave of the House to move a motion to adopt the report.

Leave granted.

[2:40 p.m.]

J. Brar: I move that the report be adopted, and in doing so, I would like to make some brief comments.

This report constitutes the committee’s unanimous recommendation to appoint Anton Boegman as B.C.’s fourth independent Chief Electoral Officer. The committee undertook a comprehensive process and worked diligently to reach its unanimous decision of a very capable and experienced individual for this very important position.

Mr. Boegman has served as British Columbia’s Deputy Chief Electoral Officer for the past seven years. In addition to his extensive experience in electoral administration, the committee was impressed by his distinguished service and his commitment to Elections B.C. The committee is confident he will provide strong leadership as B.C.’s next Chief Electoral Officer.

On behalf of the committee, I would like to express my appreciation to Dr. Keith Archer for his dedicated service to this province as Chief Electoral Officer and for the professionalism and commitment he brought to the role over the past seven years.

I would like to extend my sincere appreciation to the Deputy Chair, the member for Columbia River–Revelstoke, and all members of the committee for the exceptional work for this selection process.

D. Clovechok: As the Deputy Chair, I’d like to make a couple of comments on the appointment of Mr. Anton Boegman. On behalf of my colleague from Fraser-Nicola, who also was a committee member, and on behalf of all of our caucus here today, I want to congratulate Mr. Boegman on this appointment.

It was a tough choice for us. Nineteen people applied for this particular position from across Canada. We were able to shortlist that down to three. It was a very difficult decision, and it took a long time to make that decision. Again, I think B.C. is in really, really good hands.

I also want to thank the committee itself. It was professional. I’ve had, throughout many of my careers, an opportunity to sit on many like committees. This, in all sincerity, was one of the best ones I’ve had. It was cooperative. It was collaborative. It was efficient. It was incredibly professional. I really appreciated the opportunity to be on that.

I also want to thank Kate Ryan-Lloyd for her leadership. She’s just absolutely outstanding, and I think this House needs to give her a big round of applause. [Applause.]

On behalf of our side and, of course, the committee, I also want to thank Dr. Archer for all of his work. He’s not here today, but he’s done an outstanding job for the province of British Columbia. I think this House needs to recognize that, as well, with a big round of applause too. [Applause.]

A. Olsen: I’ll keep it extremely brief. I want to just echo the comments from the Chair and the vice-Chair in this process. As the member representing the B.C. Green caucus on this committee, it was actually a very rewarding experience to sit with colleagues from all parts of this House to select a Chief Electoral Officer.

I also would like to thank Dr. Archer for the work that he has done and, as well, welcome Mr. Boegman. I am certain that he’ll do a fine job at his post.

Thank you for this opportunity.

Mr. Speaker: The question is the adoption of the report.

Motion approved.

J. Brar: Before I move the motion, I would like to inform the House that Dr. Archer was actually not able to come today because of his prescheduled engagement.

I would like to inform the House, also, and welcome Anton Boegman and his wife, Susan Boegman. They are here today, up in the gallery somewhere, and I would ask the House to please make them feel welcome.

With that, I ask leave of the House to move a motion requesting the Lieutenant-Governor to appoint Anton Boegman as the Chief Electoral Officer for the province of British Columbia.

Leave granted.

[2:45 p.m.]

Motions Without Notice

APPOINTMENT OF
CHIEF ELECTORAL OFFICER

J. Brar: I move:

[That the Legislative Assembly recommend to Her Honour the Lieutenant Governor the appointment of Anton Boegman as an Officer of the Legislature, to exercise the powers and duties assigned to the Chief Electoral Officer, pursuant to the Election Act (R.S.B.C. 1996, c. 106), commencing on June 1, 2018.]

Motion approved.

Orders of the Day

Hon. M. Farnworth: In this chamber, I call the estimates debate for the Ministry of Attorney General, and in Section A, I call the continued estimates of the Ministry of Finance.

Tabling Documents

Mr. Speaker: Members, before we go, I have two reports to be tabled today. I have the honour to present a report intituled Promoting Healthy Eating and Physical Activity in K-12: An Independent Audit, from the Office of the Auditor General of B.C. Secondly, I have the honour to present a report intituled 2017-2018 Annual Report from the Office of the Merit Commissioner.

[2:50 p.m.]

Committee of Supply

ESTIMATES: MINISTRY OF
ATTORNEY GENERAL

The House in Committee of Supply (Section B); R. Chouhan in the chair.

The committee met at 2:51 p.m.

On Vote 14: ministry operations, $470,469,000.

M. Lee: I’d just like to start off our session by asking questions relating to electoral reform. As is set out in the mandate letter for the Attorney General from the Premier, could I ask the Attorney General just to confirm what his mandate is in respect of that referendum?

Hon. D. Eby: From the mandate letter dated July 18, 2017: “Introduce legislation to hold a provincewide referendum on proportional representation in the fall of 2018.”

M. Lee: Would it be fair to say, then, to the Attorney General, that his mandate has been substantially complete in respect of this task?

Hon. D. Eby: There are two components to the legislation. One is the legislation itself, which creates, among other things, regulation-making power. The second piece is the regulations. The legislation is passed, so the regulation-making powers exist. The regulations themselves do not yet exist.

We’ve engaged in a consultation engagement process with British Columbians. I look forward to announcing on Wednesday the results of that engagement, a record-setting engagement in our province, which will include my recommendations on these regulations and which will be publicly released and then passed over to cabinet for their deliberations.

M. Lee: As the Attorney General just confirmed, then, what is set out in the electoral reform act, in section 12, is the set of regulation-making powers that cabinet will have. As the Attorney General just confirmed, what will be addressed in his report that he releases on Wednesday will be all of the components that are referred to in that section 12.

[2:55 p.m.]

If I could ask the Attorney General to confirm that those items in respect of voting in a referendum — the counting, the advertising, the availability of the information, all of the other rules relating to financing as well…. All of those subsections are dealt with in section 12. Are those items going to be dealt with in his report to cabinet on Wednesday?

Hon. D. Eby: My report, which will be released to the public along with all of the raw data of the engagement with British Columbians, will include my recommendations, publicly released and passed to cabinet for their deliberations. The substance of those recommendations is the rules around how the referendum will be held, as well as the question or questions for the ballot — things like expenditure limits, what donation rules will apply, these sorts of things. So the member is correct; it is to inform cabinet’s deliberations on those regulations.

M. Lee: I’m curious to ask, just in terms of the arrangement between the NDP and the Green caucus…. In respect of the CASA agreement, there is, of course, reference to agreement between the NDP and the Green caucus on the form of proportional representation that will be proposed in the referendum. Could I ask the Attorney General how that will come about in accordance with the time frame that he just laid out?

Hon. D. Eby: The NDP and the Green Party provided a submission. It was one of more than 30 submissions from organizations across the province related to the referendum process. It was one of the submissions that was considered by my office in preparing this report that will be released on Wednesday. In addition, more than 88,000 British Columbians participated in an on-line survey and questionnaire to assist us in ensuring that, whatever the referendum question or questions, whatever the rules, it reflected the values of British Columbians and the concerns of British Columbians.

As I understand it, the NDP and the Green Party came together to provide that submission together. I recused myself from any caucus or cabinet meetings relating to this. Their submission was one of the many that we received on this, and it was considered in that context.

M. Lee: Thank you for that response. I just wanted to go to that agreement, the agreement between the NDP and the Green Party. Subsection 1(b)(ii) says: “The parties agree that they will work together in good faith to consult British Columbians….” That’s one component. The second component is: “…to determine the form of proportional representation that will be put to a referendum.”

I appreciate that the Attorney General made reference to the joint submission by the NDP and Green parties. Could the Attorney General confirm whether, in that joint submission, there is actually a form of PR that is agreed upon between the NDP and the Green Party?

Hon. D. Eby: The NDP-Green submission is publicly available on the Ministry of Attorney General website, along with the submissions of more than 30 organizations and eminent individuals. In addition, we received feedback from more than 88,000 British Columbians.

If the member is asking me if whatever I’m putting forward on Wednesday is a replication of that submission, it is not. What I’m putting forward on Wednesday is not a replication of any submission that I received. It is a product of all of the submissions that my office received in the largest engagement of British Columbians in the province’s history.

M. Lee: If I’m hearing this correctly, it sounds like there isn’t an agreement between the Green Party and the NDP in respect to the form of PR that’s being proposed in this referendum. Is that correct?

Hon. D. Eby: As I read the section the member is quoting, it’s that the NDP and the Greens agreed to consult British Columbians in good faith. That was, at least, what I understood my instructions were from the Premier — to recuse myself from cabinet and caucus discussions related to this; to go out in good faith to British Columbians and ask their opinions; to ask the eminent individuals and organizations, including the members of the opposition, to provide submissions about how they thought the referendum should run; and to provide recommendations in good faith to cabinet, based on that public engagement.

[3:00 p.m.]

I believe that the member will be able to judge for himself whether I’ve achieved that mandate on Wednesday. I hope he does agree. I certainly am confident in the recommendations that I’m putting forward.

M. Lee: Let me, I think for the time being, just park that line of inquiry and go on to ask the Attorney General…. In terms of the actual process under which the Attorney General embarked upon consulting with British Columbians, can I ask what the thinking was around or the rationale behind the timing of the public survey process and the engagement itself? Namely, that process was launched on November 23, the deadline for the survey was the end of February, and the analysis that has taken place has been over the last three months.

I appreciate that in the view of the government, there has been a high level of participation by British Columbians, but the analysis seems to have taken three months. So can I ask the Attorney General what the thought process is to utilize the ten months that the government has had to get to this point in time?

Hon. D. Eby: There were more than 90,000 questionnaires completed in multiple languages. People provided feedback as part of those questionnaires in text fields, comments to us. There were more than 30 organizations that provided written submissions.

The issue is a serious one, so we ensured that this engagement process informed the recommendations that are going forward to cabinet. The member will be able to judge for himself whether 90 days was enough time to review that.

It was both a product of the remarkable success of the engagement, the largest in B.C.’s history, and the depth of interest of British Columbians providing very detailed and thoughtful submissions to us. I’m very grateful for them doing that. It is also informed by the fact that there will be a referendum by November 30. So we are on a timeline for that, absolutely.

I think that in having the success of the largest engagement in the province’s history, taking the necessary time to review those submissions that we received and being able to have an achievable timeline around the referendum, by the end of November, we’ve done very well. But the member can judge for himself when the results are released on Wednesday — and all British Columbians, as well, because it will be released publicly.

M. Lee: Can I, then, ask the Attorney General how much money was budgeted for his ministry’s activities relating to electoral reform?

Hon. D. Eby: Based on past referenda conducted by mail-in ballot, the total estimated cost of the referendum is around $9 million to $10 million. It is a much less expensive method than holding a stand-alone in-person vote, and it also has good voter participation, based on previous results. We had looked at doing it in concert with the municipal election but found that in terms of costs and voter participation, a mail-in ballot was superior on both measures.

On the cost of the engagement that I’ve been talking about, there’s funding of $900,000 in terms of the public engagement in order for me to be able to have the ministry prepare a report on the referendum rules and ballot questions and recommendations.

[3:05 p.m.]

There is $1 million that’s budgeted for an information office to provide neutral information to voters during the referendum campaign. The referendum information office funding is for three full-time employees and public information activities, including developing a household mailer, website information and a toll-free call centre.

M. Lee: If I could just ask the Attorney General…. I didn’t quite hear. How much was the budget for the actual survey itself?

Hon. D. Eby: It’s $900,000, which includes the report.

M. Lee: In terms of the actual survey itself, if I could ask the Attorney General to outline the purpose of the survey in terms of the public engagement aspect of this referendum process. Were there other opportunities or alternatives that were considered by his ministry in terms of how to engage with the public in respect to this referendum, whether it’s cost-effective or otherwise?

Hon. D. Eby: There were a number of processes used. That budget number includes a mailer. Two million people, approximately, received a household mailer informing them about their ability to participate. They were able to participate through public libraries in our communities.

In addition to the on-line process, they could mail in their submissions to us. There was an Indigenous engagement that took place through a contractor to hear their views and opinions as well. There was also a panel of 1,100 British Columbians that was a demographically balanced panel to ensure that we were hearing from groups that might not be participating on line.

As I said, the on-line process was very successful. In fact, I believe it was the mailer that drove a great deal of the traffic to the site — a shocking 180,000 site visits, with over 90,000 questionnaires completed and, ultimately, submissions from 30 organizations. And I didn’t mention to the member that there were actually over 200 written submissions from individuals as well.

M. Lee: In terms of the actual timing of the survey and the public education campaign, back to the question about the approach that’s being utilized here, was there consideration that there should be more of a public education campaign before the survey was actually circulated and asked to be filled out by British Columbians?

Hon. D. Eby: It’s a bit of a chicken-and-egg scenario. I’m not sure what the member would suggest that we educate people about. The point of the survey, questionnaire, engagement process, the Indigenous engagement process and the demographically balanced panel was to ask British Columbians what their values were, what they wanted to see in terms of rules around the referendum process, what they wanted to see in terms of the question or questions and what they wanted to see in systems that might be part of the discussion.

I think that that process was a very important one, and to go in advance and tell people what they should be telling us is putting the cart a little bit ahead of the horse. But certainly, we did have to educate people that the consultation process was going on. That’s why we sent out two million mailers to doorsteps across British Columbia to let them know that this was happening.

M. Lee: I think, in terms of the detailed questions around the actual survey itself, we’ll get into that in a moment. But just to talk about the circulation of it…. Sometimes we see with on-line surveys that they can be co-opted or taken over by certain special interest groups. For example, we understand that Fair Vote Canada sent out what they call a survey guide to give guidance to how individuals might consider filling out the survey. Is the Attorney General aware of this specific example, which could be seen as an attempt to circumvent the survey from its intended purpose?

[3:10 p.m.]

Hon. D. Eby: We were very alive to concerns about not just one organization taking over the questionnaire process but also the risk of bots or other kinds of on-line activities automatically filling out questionnaires — these kinds of things. So we had a number of safeguards in place.

First of all, we used industry standards in terms of balancing the need to accept multiple entries from locations like libraries but also preventing multiple responses from campaigns attempting to influence the results. There were technical processes that were used to identify multiple submissions from the same place and the same individual, monitoring for repetitive or malicious behaviour on line. The member will understand, I hope, the need to prevent disclosure of the specific ways in which that’s achieved.

Also, the concern was: “Okay, well, we’re going to do this on-line process, but just to be sure, let’s make sure that we have a panel of ….” It might only be a certain group of people who go on line — maybe a younger demographic or a more affluent demographic. So through Ipsos Public Affairs, we administered the questionnaire to a demographically balanced group of 11,000 British Columbians as a check against any possibly skewed results from the website responses.

The details, including any differences between the balanced panel and the on-line panel, are canvassed in the report that we’ll be releasing on Wednesday. In addition, for underrepresented groups particularly, and specifically Indigenous people, First Nations people here in British Columbia, we hired a contractor to go out and solicit those views and opinions as well, directly.

M. Lee: Just to flag this for the Attorney General if they haven’t already looked at this. Fair Vote, specifically, as we understand it, asked its supporters to skew the results for the following questions in the survey: questions 5, 7(c), 8, 9, 18(b), 18(c), 19, 20, 21 and 24, which, as they termed it, were regarded as key questions to shaping the referendum to their specific point of view.

To the Attorney General, will he consider or reconsider the validity of the responses to these questions?

Hon. D. Eby: I’ve explained to the member the multiple safeguards that were in place. The member can judge for himself on Wednesday how successful we were.

The Chair: No more questions?

M. Lee: I think we’ll be at this for a little time.

The Chair: Okay, carry on.

M. Lee: When the Attorney General says that we’ll be able to judge for ourselves, presumably that’s going to mean, in the nature of this report, a breakout per question, in trying to identify patterns. But presumably, the ministry has already identified if there’s any skewing of the results that would suggest that there is a pattern of voting behaviour that would suggest that the validity of the responses to that particular question would not be fair or appropriate. Is that correct?

Hon. D. Eby: There will be a number of pieces of information released on Wednesday that will assist the member. One is the raw data, which I know some members opposite are interested in reviewing. That will be released on Wednesday.

In addition, on Wednesday, the results of the questionnaire from the on-line survey process as well as the results of the questionnaire from the demographically balanced panel of British Columbians, 1,100 British Columbians…. The 1,100 British Columbians were not selected from the members particularly interested in Fair Voting B.C. They weren’t selected from the Fair Voting B.C. group; they were selected from Ipsos Public Affairs group of people who participate in these kinds of things.

The member can check the gap between, for example, the demographically balanced group results with the on-line survey results. The member should also know that the public service was monitoring to prevent multiple responses from campaigns attempting to influence the results in one direction or another.

M. Lee: I’d just like to ask why it has taken this long, three months since the end-of-February deadline, to analyze the results.

[3:15 p.m.]

Hon. D. Eby: We took 90 days to not just analyze the results but also prepare a report and recommendations that required consultation with, among others, Elections B.C. We didn’t want to recommend any regulations that were incompatible with Elections B.C.’s view of how things could possibly roll out.

I think you could make a case that we’ve done pretty well here, and I would make that case. For the member, it’s too long. I accept that critique. In any event, the report will be released on Wednesday.

M. Lee: The Attorney General has talked about the participation rate by British Columbians. Can I ask him to outline, in terms of the regions of British Columbia, where the participation was very low and areas where it may have been very high?

Hon. D. Eby: Some communities were underrepresented in terms of their population and where people were providing submissions from. Greater Vancouver was underrepresented. Squamish-Lillooet and Similkameen were underrepresented in proportion to their populations. Others, such as Kootenay-Boundary, Sunshine Coast, Mount Waddington and the capital region were more heavily represented in the on-line survey.

Now, keep in mind that we did do the demographically balanced panel through Ipsos Public Affairs as well. The regional breakdown of responses was Lower Mainland–southwest, 46 percent; Vancouver Island and the coast, 27 percent; Thompson-Okanagan, 11 percent; Kootenay, 5.62 percent; Nechako, 1 percent; northeast, 1 percent; north coast, 0.26 percent; Cariboo, 3.27 percent; and unidentified, 4.77 percent.

In terms of rural regions, there was certainly concern raised, and we were careful to monitor to ensure that rural regions were participating. We ran ad campaigns, dropped mailers on doors. We saw participation levels in the north largely in proportion to their populations. For example, the community of Fraser–Fort George represents 1.9 percent of the province and was 1.8 percent of the questionnaire responses.

Certainly, the participation and the voices of Indigenous people in this process were a priority for government. That’s why we hired an Indigenous liaison to assist with outreach to First Nations and to ensure we heard their preferences and opinions about this important matter, and input from those First Nations will be part of my report released on Wednesday.

M. Lee: Going through that breakdown, it sounds like, of course, a comparison between the level of response for a particular region versus the percentage of voters in that particular region. In matching those two considerations together, was there any rebalancing, in terms of the results of the survey, to ensure that there was an equal voice, so to speak, across the province, based on the population base of a particular region or riding in British Columbia?

Hon. D. Eby: Certainly, the member can be assured — based on the feedback, including second reading debate on the referendum bill — that Ministry of Attorney General staff were very alive to the possibility of a difference in opinion between rural and urban areas, and to ensure that rural voices were heard appropriately in the report.

The member will have full access to all the raw data. So he will be able to compare the responses of rural communities with urban communities to see whether or not we succeeded in our goal of ensuring that all British Columbians have their voices heard, not just in the report but in the recommendations going forward to cabinet.

M. Lee: Initially, we understood that when the survey was first put out there in the province, the response rate was quite low. As we got closer into the month of November, the response rates elevated. It sounds like the government put out, as we talked about, the mailer. But there was digital advertising as well, which increased participation rates. Can the Attorney General confirm that that was the case and where those particular advertising campaigns were targeted?

[3:20 p.m.]

Hon. D. Eby: Yes, there was digital advertising as well as the household mailer. I will get the information for the member about whether there were any sort of demographic search terms or targeting or anything like that in terms of how that advertising was distributed. Certainly, it was all within British Columbia. I’ll find out if there’s any additional information that I can get the member on that. I don’t know the answer to that question.

M. Lee: As we said from the outset, in terms of the way this was structured with the Electoral Reform Referendum Act, there were certain critical questions and thresholds already determined before the survey was launched through public engagement. To the Attorney General, can I ask whether he received any advice and input as to excluding these particular fundamental elements from the consultation process?

Hon. D. Eby: No, I don’t believe I received any. I might not be fully understanding the member’s question, though.

M. Lee: As we looked at the structure of this, the two parties entered into the CASA agreement. They formed government. They agreed that they would agree on a proposed form of proportional representation to be put by a referendum by the end of November 2018. From that point onwards, the government designed a process.

I’m asking: what advice was given to the Attorney General to come forward with a new act that settled the fundamental points, including voting thresholds, for this referendum before going out to British Columbians and consulting with them about this referendum? What level of public engagement was the government thinking they were doing, when they had already settled it in the act?

Hon. D. Eby: The engagement that I was tasked with was to go out to British Columbians and to solicit their feedback about how the referendum should run, what the rules should be, what the question or questions should be. We’ve done the best that I believe we can, and the member will be able to judge the report on Wednesday. Not only will he be able to judge the report on its face, on the summaries and the recommendations. Also, he will have access to the raw data of the engagement process.

Members of the public were invited to write in. They could write whatever they wanted to us. There were feedback forms in the on-line process. Also, you could just send in a written submission. All of those pieces of feedback were received — well, I hope that they were all received; I believe they were all received — by government. They were certainly considered, and there was remarkable participation.

The member was here during the debate around the referendum bill. There was a lively and spirited debate about it, and it passed this minority parliament with a majority vote.

M. Lee: I think we’ll have some further discussion about that in a moment, but just let me continue on with the survey. As we understand it, there were four academic advisers brought on to work on the survey. Can I ask: what was the purpose to hire them? What role did they play in respect to the survey?

Hon. D. Eby: You know what? I brought the wrong staff here. I really did. We’ve got people here who are experts in the money that we’re spending on the court system, on the Ministry of Attorney General and our budgets for the year.

In terms of the referendum bill that was debated in this House and went forward…. The engagement report, which is released Wednesday, will answer, I think, a lot of the member’s questions. It just feels like ill timing, but it is the member’s time.

We retained experts to inform the engagement process, to assist us in developing questions that would inform us about British Columbians’ values in terms of how we should be running this referendum process. We’re very grateful for their participation and the feedback that they provided to us.

M. Lee: Let me just say, to clarify, that last week my office did communicate to the Attorney General’s office the sequence of topics that we would be discussing in estimates today and tomorrow. Just to say it, to hear it directly, our intention was to cover proportional representation this afternoon. Tomorrow morning, following question period, there would be discussion around gaming-related items. The member for Richmond-Steveston will be joining me at that point for that discussion.

[3:25 p.m.]

Following that, we intend to go through what is the member for Richmond-Steveston’s responsibility as the critic as well — ICBC-related items — following lunch. Then we will be getting into liquor and other general Attorney General–related matters. That is the sequence of discussion that my office had communicated to the ministry. Hopefully, that was clear.

Let me just say, though, of course, that — with the opportunity that is provided in this House, with the timing of the Attorney General’s intended announcement on Wednesday being one day before the House rises — this is what may be one of our last opportunities to have this discussion, to ensure that what is a fundamental change, potentially, to our voting system is something that this side of the House can get a better understanding of.

In terms of this number of items that were being reviewed, including the public survey, upon which the government is resting a lot of weight and reliance, that’s the reason why we’re going through more questions. So I appreciate the Attorney General’s patience with that.

If I can go back to our line of questioning here, I’d like to now ask how these four academic advisers were selected.

Hon. D. Eby: They were identified by the public service.

M. Lee: In terms of the identification by the public service, to the knowledge of the Attorney General, was he aware of how the selection process worked in terms of ensuring balance of perspectives?

Hon. D. Eby: I understood these individuals to be experts on deliberative engagement processes.

M. Lee: In terms of these individuals, how many hours did they work, and how were they compensated?

Hon. D. Eby: I believe they all worked for free, but I’ll confirm that.

M. Lee: What was their scope of work? Are they on any current retainer?

Hon. D. Eby: There’s no retainer. The individuals donated their time to assist us in this engagement process.

M. Lee: Do they have a further role in respect of this electoral reform process?

Hon. D. Eby: No, they don’t.

M. Lee: I understand that in respect of the instructions they were provided, they were instructed to abstain from public comment or academic research related to the B.C. government survey methodology, survey results or consultation process. To the Attorney General: why was that instruction provided to these four individuals?

Hon. D. Eby: The questionnaire itself, the design of the questionnaire. The ultimate decision, when the experts had conflicting opinions about what we should be doing, was mine. In fact, the member’s description is not quite right. We asked simply that they not publicly comment on the advice that they gave but that they could feel free to weigh in on the areas of their expertise. Certainly, if they have any research that they wish to do, they may do so.

[3:30 p.m.]

Yeah, they can certainly comment on the referendum process, and they’re welcome to do so.

[L. Reid in the chair.]

M. Lee: I would just like to invite the member for Chilliwack now to continue with this line of questioning regarding the survey.

J. Martin: One thing that just popped up in our question period a little while ago…. One of the issues that was raised was a survey sent out to businesses regarding the new tax. The Finance Minister was immediately dismissive of the survey because it was self-selected. Does the Attorney General agree that the electoral reform survey should similarly be dismissed because it was a self-selection?

Hon. D. Eby: The referendum survey was matched against a panel of 1,100 randomly selected British Columbians put together by Ipsos Public Affairs. If the member has concerns about people who participated in the survey maybe being self-selecting for some reason, he will be able to compare the on-line survey results with the demographically balanced panel that Ipsos put together — through the report and through the raw data that will be available.

J. Martin: Sticking with the general theme around the survey, one of the academic advisers claimed his role was only to provide “feedback on the survey you’ve constructed.” Is this an accurate summary of their role in the process?

Hon. D. Eby: I understand these individuals, who were identified and who came forward and volunteered their time, to be experts in deliberative democratic processes. That’s what we engaged them for — to assist us in engaging with British Columbians on this important issue.

J. Martin: It does appear that the minister’s office held the final pen in accepting and rejecting feedback from these selected academics. Can the Attorney tell us: on what basis his staff were advised to reject academic advice?

Hon. D. Eby: An obvious example would be where there was conflicting advice that we received. I was certainly heavily reliant on the public service to assist in preparing the questionnaire, but ultimately, accountability for the questions and the design of the questionnaire is with me.

I am happy with the questionnaire, and I am proud of the report that I’ll be releasing on Wednesday. The member can be the judge of that when it’s released.

J. Martin: For clarity, we have here a survey that was certainly drafted by the academics. Or is that the case? Did the minister’s office have final say over the editing and the final copy?

Hon. D. Eby: Just a point of clarification. I may have lost the member’s thread there for a sec. The experts provided comment on drafts of the questionnaire. The role was to give advice on it, not to be the authors. The first draft was prepared by the public service. The final draft was approved by me, and I have political accountability for that draft.

J. Martin: An email from the director of strategic initiatives suggests that the academics were chosen for their preferences for different systems. The media were quite pointed in remarking that the balance was 3 to 1 in favour of PR. Can the Attorney tell us: were the academics fully informed of any political nature of this exercise?

Hon. D. Eby: I’m not sure. I’m trying to identify the individual that the member is describing there.

[3:35 p.m.]

Certainly, we were trying to ensure that any expressed preference of any of the experts related to a particular voting system would not unduly colour the feedback that they put forward. But the reason the experts were engaged was to assist us in the deliberative process around getting feedback from British Columbians about the referendum process as a whole.

J. Martin: Has the Attorney General or anyone on his staff received any further communications from the academics expressing some frustration or concern over the controversy that has surrounded the survey — or any further follow-up communications at all that would be worth noting?

Hon. D. Eby: I’m not aware of any additional communications. We were just trying to confirm that with staff. But as I confirmed to the member’s colleague, the pro bono retainer that these experts were on is over now.

J. Martin: An email sent by the director of strategic initiatives on November 3 states: “At present, we are scrambling to complete the basic web content, have it reviewed by external experts, then refined.” Can the Attorney General confirm that the survey was a rush job composed in under a month?

Hon. D. Eby: Well, the member should be consulting with his colleague, who just critiqued the process for taking too long. It sounds like we struck the right balance in terms of the diverse perspectives of the opposition.

J. Martin: Despite the length of time it’s going to take us to get to Wednesday and know what we’re facing on the actual ballot, it appears that there was a rather short actual work period from the announcement of the survey — about delays. The extra time provided…. Academics only had two short periods of several days to review the survey, and the bulk of that extension seems to be spent on ministerial revisions.

Can the Attorney confirm that this survey was, in fact, pushed through by political staff and not by the academics themselves?

Hon. D. Eby: If the member has a critique of the survey, it sits with me. I’m a politician, so in that sense, political responsibility is absolutely here.

I’m very grateful for the work of these people who volunteered to provide their services to ensure that our engagement with British Columbians was as effective as it could be. And it was effective — more than 90,000 British Columbians filling out surveys, more than 30 organizations and more than 200 individuals providing written submissions to us, the biggest engagement in British Columbia’s history. I think those results speak for themselves.

In any event, the member will have full opportunity to review not just my report on this and my recommendations but also the raw data of the demographically balanced panel of 1,100 British Columbians, the on-line survey as well as the First Nations engagement process.

J. Martin: An email from one of the academics says that “this can’t be rushed.” The minister’s director of strategic initiatives responded that staff “have been given fairly tight timelines.” So who makes the decision to override these concerns from the academics about the survey being rushed through?

Hon. D. Eby: Again, the member’s colleague just told me it’s taking too long.

We’re engaging in a good-faith exercise with British Columbians to determine their feelings about how the referendum should be held. Multiple organizations are participating in this process, providing detailed, written submissions to us — all of which is fully transparent, all the raw data that the member and his colleagues have asked for, released on Wednesday along with the report. I encourage the member to give it a read.

[3:40 p.m.]

M. Lee: Just as a follow-up, then. Can I ask: how long did it take to construct the survey?

Hon. D. Eby: Work began on the website in October, and it was live by the 21st of November, when the engagement rolled out. Unfortunately, we don’t have very specific dates about exactly when the work began, but it was at least a month.

M. Lee: I think the questioning that my colleague the member for Chilliwack is laying out here suggests that it was a 30-day period, more or less, for the construction of the survey, this fundamental piece, the foundation for which the government is resting its public engagement exercise for the purpose of this referendum. And it’s taken three months, of course, to analyze what that is. So my earlier comment about delay has been that it’s taken ten months to get us to this point.

In terms of the survey itself, I think it’s a fair comment that the member for Chilliwack is making, that it is rushed. Even internally, the comments that we are seeing from one of these academic advisers would suggest that when you do something of this nature, you can’t rush it. That’s the point that I believe is being made here.

Hon. D. Eby: Well, there’s what the email said, and it’s what the member, I guess, wishes it said. It said: “This can’t be rushed.” It was the one line from an email read out by the member. I take it that he read it accurately, and the member who just asked the question has now said that that means that this person was providing feedback that the process was rushed and inappropriate. That was not my understanding of the feedback that we received.

In any event, the participation involved the biggest consultation in B.C.’s history, in multiple languages — targeted and focused First Nations consultation, a demographically balanced panel of 1,100 people. The member says the on-line survey is the foundation. It is one piece.

There are more than 30 organizational submissions, more than 200 written submissions by British Columbians that were not based at all on the survey. All the organizational written submissions are published on line, and to the extent that the survey results are available, all the raw data will be available to the members on Wednesday, as well as the Ministry of Attorney General summary of that data and my recommendations to cabinet, which will be publicly released first.

J. Martin: Just to clarify, academics were only given from 5:45 p.m. on Wednesday the 15th to Friday noon that same week to give feedback on the second copy of the survey. Isn’t this pushing us where there may be some compromising the integrity of the survey with such a tight timeline for the second version?

Hon. D. Eby: The member certainly is correct that that was the second time that these individuals had seen the survey. For those British Columbians who participated in the on-line survey, it took them an average of, it looks like, about 16 minutes to complete the questionnaire. So on the second round of edits and suggestions from these experts who were volunteering with us, I accept the member’s timelines, and I’m very grateful for the assistance of these individuals in donating their time to assist us in this process.

[3:45 p.m.]

J. Martin: The Attorney General’s ministerial assistant highlighted the following comment from one of the academics regarding the funding of proponent and opponent groups: “If this is all that the government understands by public engagement, then they will simply be setting fire to the whole process.”

This is pretty powerful and alarming language, and the ministerial assistant said that no changes to the survey were needed. Does the minister’s tight timeline cause staff to ignore serious concerns about the survey, raised by the very people that were brought on board to construct that survey?

Hon. D. Eby: The survey was not the referendum process. It was an informative exercise to help us to design the referendum process itself. The member will see on Wednesday the referendum process, and he will be able to judge it for himself.

J. Martin: We have another email showing the Premier’s office coordinating with the BCGEU’s PR campaign team and attempting to set up a meeting with the minister. Even though this meeting was appropriately declined, if the Premier’s office is coordinating with the pro-PR coalition, is it not possible that information could have been shared by political staff?

Hon. D. Eby: I have no knowledge of that taking place.

J. Martin: “No knowledge,” I heard. Correct?

Hon. D. Eby: I have no knowledge of that taking place. That’s purely speculative on the part of the member. Any notes that the meeting was turned down…. I don’t even recall what he’s talking about. But in any event…. I have no idea what he’s talking about, and I don’t believe it happened.

J. Martin: Many of the questions in the survey have a “prefer not to answer” option. But question 3, “Which, if any, of the following have been barriers that have kept you from voting?” does not have that option. Instead, individuals are forced to choose options which may not be applicable to them whatsoever. Can the Attorney explain the reason for excluding “prefer not to answer” specifically from this question?

Hon. D. Eby: It’s difficult to know which question the member is referring to, because on the one he refers to that I understand is “barriers to voting in provincial elections,” there was a “not applicable/prefer not to answer” option for people.

J. Martin: Question 16 asks individuals to choose between MLAs “who do what their party promised” and MLAs “who do what their constituents want.” One could argue that MLAs are more than capable of doing both. Suggesting otherwise is highly offensive to members who work very hard for their constituents.

This appears to be another example of a skewed question. One answer is an example of the current electoral system. The other is an example of the government’s preference for a new electoral system. Can the minister explain and please tell the House why this type of question was allowed into the questionnaire? Why is a choice being forced to be made in this area?

Hon. D. Eby: Different PR systems…. Some are more party-focused, and some are more MLA-focused. So if you are a person who values the idea that a political party has more influence, then you might choose one PR system or you might prefer that that type of PR system be put forward for consideration. If you are a person who believes more that MLAs should be more independent of party influence, then you might choose another PR system.

That question assists the ministry in knowing, in terms of a question or questions that might be put forward in the referendum process, where British Columbians’ values are in terms of what they would like to see in a proportional representation system.

J. Martin: In British Columbia, we have at the moment 27 registered political parties. Theoretically, each and every one of these could show up on a PR-styled ballot. So I’m wondering why the approved sample ballots for list PR and MMP fail to reflect the total number of political parties in B.C. and foreshadow just how unwieldly and complicated life could become in the election booth.

[3:50 p.m.]

Hon. D. Eby: Different electoral systems on the proportional representation side have different ballots and different ways for voters to express preference. The survey was an attempt to gauge British Columbians’ values in terms of how the referendum process should go forward and what question or questions should be put to them.

I think the fundamental disconnect here is that this is not the referendum. The referendum process will be a vote by British Columbians. The rules and the ballot question or questions — my recommendations, anyway, about that — will be based on this engagement that will be released on Wednesday. The sample ballots that the member is talking about were used as a way to gauge British Columbians’ values in terms of assisting us and ensuring that the referendum process itself reflected British Columbians’ values.

Just as a purely logistical matter in terms of the 27 parties, many of those parties won’t run a single candidate anywhere. I take the member’s point as a sort of campaign point that he would raise against PR and in favour of the first-past-the-post system, one assumes, although there is nothing to stop 27 parties from showing up on a first-past-the-post ballot either.

In any event, this survey process is not the referendum. There are arguments in favour of and against a number of proportional representation systems, and British Columbians’ values in terms of what they would like to see were a key part of the consideration in the design of the survey and why we did it.

J. Martin: Has the ministry taken the time to examine the actual impact on ballot length and ballot complexity — what this might mean for costs of management at Elections B.C. with the process?

Hon. D. Eby: An interesting discussion with the staff here.

The major cost of elections, as I understand them, are the people running the polls, the staff required to do that. It would be, certainly, difficult to know — in terms, maybe, of a lengthier ballot increasing printing costs. But it’s difficult for me to know specifically what the member is referring to in terms of increased costs.

In terms of the referendum process itself, the member, on Wednesday, will have the question or questions. He’ll have my recommendations around rules based on the engagement with British Columbians, based on the submissions from all these organizations, the First Nations engagement, the balanced panel of British Columbians.

[3:55 p.m.]

He’ll be able to use that information — and, ultimately, the regulations that are promulgated by cabinet — to advocate in whichever direction he chooses for whichever system he chooses. That may include raising issues of cost. It may include raising issues of ballot complexity and arguments for or against proportional representation or first-past-the-post systems. It sounds like it will be a lively campaign on all sides of the issue. The member will surely be raising issues like that on whichever side he ultimately chooses.

J. Martin: Has the Attorney given consideration to the potential for a significant heightening of spoiled ballots on election day if we were indeed to move to a lengthier, more complex, convoluted ballot?

Hon. D. Eby: The member can raise any number of issues in his campaigning on the side that he chooses in relation to election ballots or system complexity, the risk of spoiled ballots, costs — you name it. That is not the role that I’ve been given. The role that I’ve been given by the Premier is to engage with British Columbians and to provide recommendations to cabinet on the rules around the referendum process. Then the campaign will be officially underway in terms of people campaigning either for our current first-past-the-post system or for a proportional representation system.

J. Martin: We’re going to know a lot more about this on Wednesday. I anxiously look forward to that moment of opportunity. We’ll have some clarity on the ballot question or questions.

What about rewriting the electoral boundaries? Unless the ballot question was simply, “Do you want to move to a ranked ballot?” in the way most political parties run their leadership campaigns, there would be some significant revisiting of the electoral boundaries. I think people, before they cast a vote, would probably like to know what’s going to happen to their boundary and whether they’re going to be shrunk or cast in with a much larger geographic entity.

I would like to get some clarity from the Attorney on how specifically and how soon we’ll know what the proposed riding boundary changes would be.

Hon. D. Eby: All my recommendations to cabinet around the referendum process will be released on Wednesday.

J. Martin: Can the Attorney tell us what rules, stipulations and guidelines may come into effect with proportional representation candidate lists?

Hon. D. Eby: All my recommendations around regulations related to the referendum will be released on Wednesday, based on this engagement with British Columbians — the on-line survey; the direct engagement with First Nations communities; the balanced demographic panel of British Columbians, the 1,100 people that Ipsos Public Affairs put together; the written submissions by more than 30 organizations and by more than 200 individuals. It will be released on Wednesday.

J. Martin: How much detail are parties going to have with advance notice of the timeline for the terms and the specifics of the referendum? I’m concerned about this. If there’s any compromising of the process, what measures are going to be taken in place to protect the integrity of the procedure?

Hon. D. Eby: I don’t fully understand the member’s question.

J. Martin: There’s significant potential for compromise in this particular process. One is that we’re doing it by a mail-in ballot, for starters. Anyone that lives in an apartment or a condominium complex can come down in the morning and see that blue bin just stuffed with every type of letter and advertising and form mail. Very likely, a referendum ballot on proportional representation would, in many cases, be quickly visiting that blue bin.

[4:00 p.m.]

They’re there for the taking. People can collect those. What are we going to learn about fraud prevention and protecting the integrity of the process on Wednesday?

Hon. D. Eby: Thank you to the member for clarifying the question. Elections B.C. has a number of measures that they use to ensure the security of the mail-in ballot process. British Columbia has used that process successfully on several plebiscites now.

J. Martin: Not too long ago in this House, we raised the issue of an email sent by the B.C. NDP party executive containing a call to action on the PR referendums to the rank and file. One could fairly read into this that the NDP party executive may have advance notice of its details, engaging in a call to action.

What steps can the minister take to assure this House of the integrity of the referendum process and to ensure that one side doesn’t have a leg up on the other?

Hon. D. Eby: I remember the member asking me about this in question period. I reminded the member then, and I’ll remind him again now that actually, as far as I can tell, the source for that was my answer to the member in question period when I assured him that I would have my report and recommendations to him before barbecue season, and as quickly as possible. I remember that exchange because I remember the member’s reputation for barbecue skills.

To my knowledge, there has been absolutely no disclosure. We’ve taken significant steps to prevent disclosure of the contents of the report that’ll be released publicly on Wednesday — to any party. The member has the same level of information, to my knowledge, as any member in this place.

J. Martin: Thank you. Those are all the questions on the survey that I have at this point. I know some of my colleagues would like to explore some other areas. I thank the Attorney, and I wish him all the luck being as calm, cool, collected at his town hall as he’s been here for the last little while.

M. Lee: Well, I think the member for Chilliwack had a fine day yesterday by the judge of social media on the various cook-offs and competitions. That’s great, that we’re all recognizing the excellence and the skills that we all have here.

Let me just come back to the public engagement process, if I may. The Attorney General was referencing the consultation process with the panel. If I could ask the Attorney General to outline in more detail what that panel looked like and whether that is the same term as what…. We’ve also understood that there was some sort of citizen engagement team as well.

Hon. D. Eby: The teams the member was talking about are another name for the on-line staff at GCPE who put together the technical pieces of the coded — or whatever the correct term is for publishing — on-line survey so that it worked. They’re the on-line computer folks.

[4:05 p.m.]

Then the Ipsos Public Affairs panel was a group of 1,100 British Columbians demographically balanced to assist us in doing a couple of things. One was in ensuring that we weren’t capturing a group that’s participating on line disproportionately. For example, perhaps younger people or more affluent people are more likely to be participating on line. The second piece was to ensure that if the on-line system were somehow compromised, we would have a way to check it against a demographically balanced group of people to make sure that we were seeing fairly consistent results.

The member, on Wednesday, will see information published in the report that compares this demographically balanced panel with the on-line survey results, and then we’ll be able to identify any issues. He raised questions about this particular proportional representation group advocating for certain answers on certain questions, which, it was his concern, may have skewed some portion of the survey.

He’ll be able to compare those questions with the demographically balanced panel that was put together for us by this third party, Ipsos Public Affairs, to ensure that the responses — and our understanding of the results we got from British Columbians about what their values are — in designing this referendum process are as valid as possible.

M. Lee: Can I ask the Attorney General how that Ipsos panel was selected or compiled?

Hon. D. Eby: Ipsos Public Affairs — this is what they do. They assemble demographically representative panels. The goal of this, and the service that this company provides, is providing to companies, or governments in our case, or others, the ability to go to a panel of a certain group — in our case, British Columbians, demographically balanced, balanced geographically — to provide feedback.

What happened was that the questionnaire went to this group that was assembled by Ipsos to be representative in this way. So the member will be able to use that as a point of comparison.

M. Lee: As I understand it, there will be a full report included in the material that will be released to public in respect of that panel. Is that correct?

Hon. D. Eby: Not only is that correct, but the raw data will be released as well — for the member.

M. Lee: I just wanted to go to something that the Attorney General mentioned earlier, in terms of the stakeholder submissions available on the ministry website. By my quick count, it looks like there are 44 organizations on that website, including the BCGEU; the B.C. NDP; the Broadbent Institute; Citizens Vote Empowerment; CUPE; Dogwood; Elizabeth May, MP; Dennis Pilon, York University; Fair Vote, about six or seven different Fair Vote entities. You get the point that they seem to be pro-PR.

Is that the case? When you look at the list, would the Attorney General agree that the list of 44 organizations can be viewed — I haven’t done the analysis — for the most part, to be pro–proportional representation. Is that correct?

[4:10 p.m.]

Hon. D. Eby: Yeah, I was certainly disappointed that the B.C. Liberal caucus did not provide a submission, but we did use second reading debate speeches in consideration in the report, as I committed to the members that I would do.

The member is correct. There were a lot of groups that have an interest in proportional representation, which is perhaps not surprising, given that that is the topic of the referendum. I note, also, that there was the No B.C. Proportional Representation Society. I’m not sure, actually, what the Fraser Institute’s leanings are specifically with respect to pro-first-past-the-post or pro-PR — but in any event, more conservative think tanks like the Fraser Institute participating as well.

We also, as I’ve outlined a couple times now, ensured that we had a group of 1,100 British Columbians that were not self-selecting that were part of this panel to check results against. I agree with the member that it would’ve been nice to have some more submissions from people in favour of maintaining the current first-past-the-post system. But I do know that the representative panel ensured a check for us, and the member as well, in terms of the values of British Columbians.

M. Lee: Can I please ask: when did the panel work? When was it in the field surveying other British Columbians?

Hon. D. Eby: I understand it was done in January.

M. Lee: Was the plan, in terms of public engagement…? When was it decided to do that panel?

Hon. D. Eby: The decision was made right away, at the beginning of the planning process, to ensure that we had a representative submission from British Columbia in terms of our workaround, making recommendations in the design of the referendum process.

M. Lee: I appreciate that the report is coming out on Wednesday, but just for the purpose of this discussion, was it effective in terms of the input it provided to the ministry to balance off the survey results versus what was seen by the panel result? Was there a re-rating of responses that way?

Hon. D. Eby: The member will see the report on Wednesday. He will have side-by-side data of the demographically representative panel versus the on-line feedback. But I have to underline for the member that the questionnaire is one piece, and there were a lot of thoughtful written submissions received as well. I have to say that from the opposition there were a lot of thoughtful second reading speeches that are included in the considerations and form the basis of the report.

Not to take away at all from the questionnaire process, which was a very successful engagement process, but it was not a poll. It was one piece of many constructive pieces. And I have to point out that the First Nations engagement process informed this as well.

M. Lee: I’d like to just come back to a discussion we were having at the outset regarding the mandate for the Attorney General. As he described earlier in the session, the mandate from the letter from the Premier was to introduce legislation which, of course, includes the regulation-making powers. As we heard from the Attorney General, there’ll be recommendations that are being made.

Can I ask, then: after Wednesday, does the Attorney General have any ongoing role in respect to this referendum?

[4:15 p.m.]

Hon. D. Eby: The process will be as follows. The report will be publicly released on Wednesday. The report will be considered, and whatever regulations cabinet — I’ll recuse myself from their deliberations — promulgates, whether they accept my recommendations or modify them, I will be the minister responsible for ensuring that the regulations are drafted and back in front of cabinet for approval.

Ultimately, the regulations are approved by cabinet, not by me. I’m making recommendations to cabinet and to government about what, based on the engagement, I am recommending the cabinet put forward in terms of regulations.

M. Lee: Just to stand back from this process and look at the role that the Attorney General has in this process from the outset. Would it be fair to say that the design of the Electoral Reform Referendum 2018 Act, as it was presented, was formulated by the Attorney General and tabled in this House for approval? Is that correct?

Hon. D. Eby: The member can check Hansard. I was the minister who tabled the bill in the House. It was debated and passed the minority parliament.

M. Lee: In terms of the design of the referendum process. Because of the fundamental provisions that are under that act — including the voting threshold and the regulation-making power, for example — the overall framework of this referendum was set by the Attorney General.

That just begs the question: in terms of the nature of being someone who is suggesting that British Columbians recognize as someone who is neutral in this, is there a concern that the Attorney General would share that British Columbians do not perceive that to be the case?

Hon. D. Eby: For any bill that comes before this House, there is a cabinet process that takes place, and for any referendum that the government is going to have, there needs to be a bill. Someone needs to stand up and table the bill. Otherwise, you don’t get the bill. It needs to be someone in government, and the responsibility for this portfolio sits within the Ministry of Attorney General. As minister responsible, that’s my job. So I stood up. I tabled the bill. It was debated. But ultimately, it needs to be passed by the Legislature, and it was passed.

M. Lee: I think this is where the heart of it is, of course. The mandate letter itself gives the mandate and the task to the Attorney General — to introduce that legislation into the House — from a Premier and a cabinet whose sole reason for being in government is premised on the CASA agreement, which inside of it contains the agreement that there would be a form of proportional representation proposed to British Columbians in a referendum.

I would suggest that part of the reason why we continue to have this level of concern, as we saw again this morning, in this House is the way that this has been positioned. When I say that…. When we look at the way that the survey results are being formulated and reviewed by the Attorney General…. First of all, we heard in the session that the Attorney General ultimately signed off on the survey itself as his responsibility. In itself — as from the member for Chilliwack, who was here talking about the way that the survey was constructed — there are concerns and considerations around that.

So I say again: with the way that the survey is coming back and the way the regulations are being presented to the cabinet, does the Attorney General have any concern regarding any perception of bias in his role in the context of this referendum process?

Hon. D. Eby: I’ll feel a lot more comfortable with the member’s speculation and criticism after he’s read the report on Wednesday.

[4:20 p.m.]

M. Lee: Well, I would like to now invite the member for Vancouver–False Creek to ask some questions regarding best practices and international standards.

S. Sullivan: Thank you, Minister. My questions are really about legitimacy. The only way that government exists is because people consider the government legitimate. That’s because they believe that the process by which they became government is legitimate, and they have credibility. It’s very important that people see this as legitimate.

There are, especially in the past few years, a number of developments regarding referenda in which we’ve developed an international best practice. We see that some of the most advanced democracies in the world have created clear rules and processes that must be adhered to in order to have a referendum.

For example, the United Kingdom mandates that a multiparty committee of nine or ten be established and that stakeholders could be given a chance to bring all of their concerns forward. The European Union has developed some pretty great guidelines, and the Canadian government, through the Clarity Act, lays out minimum standards for a fair referendum.

The process being used by government for this important referendum would contravene the law in many other jurisdictions. My first question would be: why has the government not accepted this body of practice that has been developed to ensure that this referendum is legitimate?

Hon. D. Eby: Thank you to the member for his question. This referendum won’t be decided by the member. It won’t be decided by me. There will be a vote of British Columbians who will make the decision about how we send members to this place.

I appreciate the member’s support for the Clarity Act, and other proposals around, to hold this, but the bill that passed this Legislature sets out the referendum process. We’ve wrapped up the engagement with British Columbians — the largest engagement in British Columbia’s history, with more than 88,000 people filling out questionnaires, more than 30 organizations participating. I’ll be releasing a report on Wednesday with my recommendations about how I believe, based on the feedback that we’ve received, the referendum should be held.

The member, I’m sure — it sounds like — will be one of the people reading this report quite carefully. I certainly recommend it to him, and I’ll be glad to hear his questions about it once it’s released.

S. Sullivan: The minister has mentioned the act and also the public consultation process. One of the great concerns is that the act, which lays out and makes decisions on very, very important parts of the referendum process, was passed before consultation was completed. So key decisions were made before the consultation actually was received. This is an example of bad process.

I would ask: has the minister, at any point, considered asking Elections B.C. to recommend a legitimate process based on international best practices?

Hon. D. Eby: Elections B.C. ran a process. They ran an election in which a majority of members in this place were sent here committing to hold a referendum on proportional representation or to maintain the current first-past-the-post system. The members on the other side actually had a throne speech that committed to do the same.

[4:25 p.m.]

That’s what’s happening. There is a bill that passed the minority parliament that sets out regulation-making powers. In terms of the design of those regulations, we’ve done this engagement process I’ve described to the member. The report with recommendations based on that engagement process will be released on Wednesday. I look forward to hearing the member’s feedback about those recommendations.

S. Sullivan: I don’t have any issue with holding a referendum. Actually, I look forward to it. I’m curious about the statements and the position of citizens. I’ve got to say I’ve never heard electoral reform brought up on the doorstep while campaigning. I am very interested to see this process go forward. I have no problem with that.

I very much agree that Elections B.C. did a great job on holding the election. I think Elections B.C. would do a great job in managing a referendum. We hold our elections using international best practices. For example, if the government should decide that we’re going to go back to elections by a show of hands, which is what we used to do 100 or so years ago, Elections B.C., I think, would take issue with that.

Has the minister received any advice from Elections B.C. on best practices, the process and the rules of the referendum?

Hon. D. Eby: I’m happy to tell the member that we have engaged with Elections B.C. around the conduct of the vote. I’m not sure where we lost the member, but the vote process will be conducted by Elections B.C. It’s a mail-in ballot, absolutely. But it’s a mail-in ballot process conducted by Elections B.C.

S. Sullivan: I understand that Elections B.C. will operate the process, but Elections B.C. is also very familiar with international best practices and the new developments of a code of practice and a code of conduct and principles that should be adhered to, that are in international best practices.

I’d ask: why has the government not sought advice on international best practices from Elections B.C. to ensure good process, to ensure the question is clear?

Hon. D. Eby: I think, maybe as a short answer to the member…. Elections B.C. doesn’t advise on policy. I guess that really says it all. That’s not what Elections B.C. does.

S. Sullivan: Well, Elections B.C. is aware of international best practices and could advise on the processes that are used internationally.

I know that the minister is a strong advocate of proportional representation. He has stated so in the past. He also claims that he is neutral and that he’s able to design the process and write a question impartially. Now, does the Attorney General believe that his declared bias and the declared bias of his cabinet colleagues to what outcome he wants from this process…? Does that not disqualify him from making key decisions on this referendum?

Hon. D. Eby: The member is going to see my report on Wednesday. I welcome his feedback on the recommendations that I’m putting forward to government. Ultimately, it’s not the report, it’s not the member and it’s not me that will make this decision. It’s British Columbians in a vote. I have confidence in the democratic process, and I have confidence in British Columbians — in their ability to vote in this process and make the decision that is best for British Columbians.

[4:30 p.m.]

S. Sullivan: Given that the minister’s colleagues will be campaigning in favour of proportional representation, why not have Elections B.C. recommend a good process, a fair process, and draft a question to avoid perceived conflict of interest?

Hon. D. Eby: I’m not aware of any precedent for what the member is suggesting, which is to have Elections B.C. draft referendum questions in British Columbia.

S. Sullivan: I’m sorry. What I meant is that Elections B.C. would recommend the process by which the question would be drafted.

Hon. D. Eby: In 2005, in the referendum, the citizens’ assembly drafted the question. There was some criticism that the question drafted by the citizens’ assembly was not a neutral question. In 2009, the previous government amended that question and put it forward in a ballot process.

[R. Chouhan in the chair.]

There have been different processes in B.C. on this very issue for how the question is designed and put forward. The question or questions will be put forward for the member’s consideration on Wednesday, and I’d be glad to hear his feedback on that on Wednesday.

S. Sullivan: I believe that this referendum…. It depends on which way it goes. The government would much prefer, I’m sure, that people consider the process legitimate so the outcome will be accepted. I note that almost all of the major journalists who make commentary on the provincial government — Bill Good, Vaughn Palmer, Les Leyne, etc. — have weighed in and been very critical about this process. It really does bring into question the whole legitimacy of the outcome.

I would think it would be in the interest of the government to ask Elections B.C. to recommend a legitimate process based on international best practices. I believe that the minister would be aware of a poll that has suggested almost nine out of ten British Columbians believe that is the way we should go.

Will the minister consider asking Elections B.C. to recommend a fair referendum based on international best practices?

Hon. D. Eby: There’s been a lot of speculation — the member is correct — in the media about the referendum process, which is what he is talking about. Now, there’s also an unfortunate tendency to conflate the survey with the referendum — the engagement process with British Columbians with the referendum.

[4:35 p.m.]

The referendum is a vote that will be conducted by Elections B.C. It’s a mail-in ballot process. The question or questions that are going to British Columbians will be released on Wednesday. They’re my recommendations, so I look forward to the member’s feedback on that.

The survey and the consultation and the engagement and all of that are not the referendum. The referendum is the ballot that will go to British Columbians, and they will make a decision about how they send members to this place.

I have confidence in British Columbians to do that, I have confidence in Elections B.C. to run that process fairly, and I have confidence in my ministry to put forward recommendations to cabinet around that process to ensure that it is held fairly in accordance with the best practice.

S. Sullivan: Delaying the implementation of a successful proportional representation vote until 2021 strongly coincides with the confidence and supply agreement with the Green Party, despite assertions to the contrary. How can the Attorney General proclaim to be immune from the political requirements of having the Green Party onside while it appears that their need for rushing the PR referendum through is resulting in a flawed process? Has the minister considered asking the Green Party if they would agree to a delay so that we could have a proper process using international best practices?

Hon. D. Eby: The member’s question includes a suggestion of delay as well as a suggestion that there’s a rush taking place. It might help the member to know that in 2005, in the citizens’ assembly process, the question was released by the citizens’ assembly in December of 2004. The referendum was held in May of 2005. That’s a period of five months. In PEI, the question was released in April. They had their vote in October — again, a period of five months.

Our process, no matter how this rolls out, will be longer than both of those processes, including a three-month engagement process with British Columbians. And the member will remember, I’m sure, as we all in this place do, that the provincial general election period is a month. So the suggestion that this is being rushed — I’m going to have to disagree with the member on that. We might have to agree to disagree on that.

S. Sullivan: My problem isn’t the delay between a question and a vote. My question is about a legitimate question and a vote, that the process that will bring about a question on Wednesday is flawed. It is illegitimate in the eyes of many, including many of the most astute commentators.

I guess I’ll just ask a final question. Are there any circumstances in which the minister would ask Elections B.C. to recommend a legitimate process based on international best practices?

Hon. D. Eby: The member doesn’t even know what the question is before he calls it illegitimate, which might colour his commentary when the report is actually released on Wednesday that actually contains the question or questions that are going to go forward to British Columbians.

[4:40 p.m.]

I would encourage the member to keep an open mind until he actually reads the question or questions, and then I’m happy to hear the member’s feedback about the appropriateness of what British Columbians are being asked to vote on.

M. Lee: I’d just like to come back to a question I was asking earlier about the confidence and supply agreement between the B.C. NDP and the Green Party. We were talking earlier that: “The parties agree that they will work together in good faith to consult British Columbians to determine the form of proportional representation that will be put to a referendum.”

When the report is released on Wednesday…. Can I ask the Attorney General whether there will be a specific form of PR that will be included in that release?

Hon. D. Eby: The ballot question or questions will be released with my recommendations and the basis for that, which is the public engagement, on Wednesday.

M. Lee: In terms of the process in which the question is being developed…. Just to reconfirm, the Attorney General and the ministry are drafting that question. Is that correct?

Hon. D. Eby: The report that will be released on Wednesday will include recommendations from me about a whole array of regulations related to the referendum. One of those will be the question or questions. Those referendum questions are being put forward, absolutely, by my ministry, and my name will be on that report.

M. Lee: In terms of the responses that we’re receiving, obviously we’re having some challenge in terms of getting the kinds of responses that the members for Chilliwack and Vancouver–False Creek would like to receive respective of the referendum deferral to the release of the report on Wednesday. But it does sound, in terms of the way that the Attorney General is responding to our questions in this House, that there may well be a series of recommendations that are being put to cabinet. So is it the case that cabinet will be deciding on whether there’s going to be one question or two questions or more than two questions for this referendum?

Hon. D. Eby: There is a whole array of regulations that need to be in place for this referendum to be held — regulations about political donations, around spending, around the writ period, and so on. So there will be all kinds of regulations on a whole wide array of issues, as the member asked me about earlier. Would I have recommendations for all of those different regulation-making powers? The member knows that. One of those recommendations will be a specific question or questions to go to British Columbians.

M. Lee: I suppose, of course, in the context of what happens in the cabinet room, that the cabinet and the Premier will be given the opportunity to go through the series of recommendations that the Attorney General is bringing forward and determine how to proceed with the referendum. If that’s the case, I fail to understand how that is a neutral arbiter situation. Am I hearing this correct?

Hon. D. Eby: I’m not sure how much clearer I can be about the process, whether the member agrees with it or not. We engaged with British Columbians. We’ve got recommendations coming from that engagement process — the largest in B.C.’s history, multiple organizations participating.

I will release that report with my recommendations, along with all the raw data, on Wednesday. That report will go with my recommendations about what, based on that engagement, I am recommending that cabinet adopt as regulations around the referendum process. Cabinet will consider that. I will recuse myself from that discussion, and they will promulgate some regulations that my ministry will have responsibility for drafting and bringing into force.

The member will know if there is a difference between the report that is released publicly and the final regulations. The member can put them side by side, and he will know if there was a change that took place at some point. He’ll be able to compare those two things.

I don’t believe that I’ll be able to convince the member of something that he so firmly believes, even before he’s read the report, which is that the report is based and the recommendations are based on the feedback and recommendations of British Columbians. Regardless, that is the process that will unfold, and the member and the public will have the report and the recommendations first.

[4:45 p.m.]

M. Lee: If I can just turn to the area of foreign funding. To the Attorney General, is he aware of any direct or indirect foreign source of funding which is influencing any pro-PR campaign activity in British Columbia?

Hon. D. Eby: We will have regulations about that.

M. Lee: Well, I think at this point I’d like to invite the member from Mackenzie to ask a series of questions, thank you.

M. Morris: I’ve been listening to the responses from the Attorney throughout the afternoon. I’m going to focus on a couple of different areas here. I’m glad to hear that the Attorney has been paying attention or focusing on the importance of the voters of British Columbia and the democratic rights that voters in British Columbia have. It goes back to the Charter and the Constitution of Canada, which is the binding force that we have in this province, to keep everything together, and across this country.

It revolves around section 3 of the Charter, where every citizen has a right to vote in election of officials or Members of the House of Commons and of the Legislative Assembly. On its face, when you read that section, there doesn’t appear to be much to that, other than everybody’s got the right to vote. But there was a case back in British Columbia, in 1989. It was a B.C. Court of Appeal case, Dixon, that was one of the first Charter challenges against section 3 in Canada. Of course, Beverley McLachlin was the Chief Justice of the Court of Appeal at that time. She went on, of course, to be the Chief Justice of the Supreme Court of Canada.

The petitioner for that, Mr. Dixon, had said that electoral boundaries really have no place under the constitution in British Columbia. And the court found that indeed they did. B.C.’s legislation needed to be amended at the time. The electoral districts had to reflect representation by population. It also had to take into consideration the geographical and regional differences that we have across British Columbia.

The court came to the conclusion or made the conclusion that relative equality of voting power is fundamental to the right to vote enshrined in section 3 of the Charter. The court also supported a list of core values or rights that form part of section 3 of the guarantee of the right to vote. One of those core values is the right to sufficient information about public policies to permit an informed decision. There were about ten of those rights that were included in that. The court even added a last core value in there, as well, that I’ll talk about a little bit later on.

The question that I have, bearing in mind that one of these core values is the right to sufficient information…. Why hasn’t a new Electoral Boundaries Commission been assigned by government to the task of preparing electoral boundaries for the proposed proportional representation systems the government outlined in its public engagement process — specifically, mixed-member proportional, single transferable vote, list proportional representation and mixed-member majority?

Hon. D. Eby: The member is…. I’ll try to help the member. The consultation, the engagement process with British Columbians, is not the referendum. There were some systems that were listed in the on-line questionnaire that the member just rhymed off.

The reason why the Electoral Boundaries Commission has not been struck in order to start drawing boundaries for these various systems is because…. The reason those systems were on the ballot were to ask British Columbians for their feedback on those different systems. In addition, there were more than 30 submissions from organizations that had additional systems, above and beyond those systems, that they thought were the best system. Some were very creative. I have to say that there’s no shortage of thought that goes into these kinds of things.

[4:50 p.m.]

The consultation process, that engagement process, was to ensure that we’re holding a referendum process that’s relevant to British Columbians and reflects their values and that we’re putting a question or questions to British Columbians that actually reflect the values that they have.

In terms of why we haven’t struck the Electoral Boundaries Commission to start drawing out various systems based on the questionnaire…. It’s because the questionnaire was not the referendum. The referendum process will be a vote by British Columbians on a question or questions going forward. My recommendations about what those should be will be released on Wednesday, and I look forward to the member’s feedback about that.

M. Morris: I understand the difference between the consultation process and the report that’s coming out. My question to the Attorney is: how is he going to adhere to one of the core values of that constitutional right — that citizens need sufficient information about public policies to permit an informed decision? There’s a referendum coming up. There was your consultation process; 88,000 individuals responded to that. But how can anybody vote on something as fundamental as electoral reform unless they know what the possible outcomes might be?

One of the defining moments in the 2009 referendum, in my view — it’s just my own personal opinion — is that Elections B.C. provided a map of what the new electoral boundaries might look like under the proportional representation system that was being recommended at that particular time. Once the public had an idea of what that looked like, they voted accordingly, having received that information.

What kind of system is the minister proposing right now to ensure that this core value, the right of every citizen to vote, is satisfied?

Hon. D. Eby: I will reassure the member that I would not put forward any recommendations to cabinet that ran afoul of the Charter of Rights and Freedoms.

I wanted to say, in response to my last question, that John Dixon, who was the named applicant or plaintiff — I can’t recall — in that action…. I was very pleased to be reminded of him. He was the president of the B.C. Civil Liberties Association for many years and a great advocate for rights and freedoms. A very important case that Mr. Dixon participated in with that organization.

Just as a moment of reflection, it’s a pleasure to hear both sides of the House. Both have people who are involved with the Civil Liberties Association and also advocating the positions of the Civil Liberties Association, because these rights and freedoms are critically important — which, again, underlines my commitment to the member and to this place that I would not put forward recommendations to cabinet that ran afoul of the law or the Charter.

M. Morris: Is the government going to commit to getting the independent Electoral Boundaries Commission organized right after the question is presented this week in order to provide the citizens with the information they need for the referendum vote?

Hon. D. Eby: On Wednesday, there’ll be a report released with a number of recommendations.

I will note, though, just to the member’s question, that there’s a safeguard built in. His concern is that there won’t be enough information available to British Columbians to be able to vote. The safeguard is that this is, actually, a vote. If British Columbians believe they don’t have enough information in this referendum process, they will be able to vote accordingly. That’s why it’s so important, I believe, that we have a referendum process. It’s not the member’s decision. It’s not my decision. It’s British Columbians’ decision about how we send members to this place. It’s a very important safeguard.

I note that in Quebec, the opposition parties got together and said that if they’re elected, they’ll do a proportional representation system without a referendum. I don’t agree with that. I think that safeguard of having British Columbians vote is very important.

[4:55 p.m.]

My recommendations around how that process should go — based on the feedback of British Columbians in a very successful engagement that was the largest in British Columbia’s history and all of these different safeguards that I’ve outlined to the member and to his colleagues — will be released on Wednesday.

M. Lee: I find it striking to hear that the view of the Attorney General will be that a safeguard for this referendum process is that if British Columbians don’t fully appreciate what they’re voting on, then they’ll just either not vote or they’ll vote no. So what was the reason for us to go forward with this referendum in the first place?

Surely, when the Green Party came into the confidence and supply agreement and, before that, took the view that, well, “we should just actually implement PR without a vote….” Surely they wouldn’t be thinking that we’re going to put in front of British Columbians something that British Columbians won’t have a full opportunity to understand — the nature and the change to the riding boundaries that the member for Prince George–Mackenzie is speaking to. Surely that is not what this government is suggesting.

Can I ask the Attorney General to clarify his statement, please?

Hon. D. Eby: There are two ways to interpret what I said.

One is that my recommendations will be to not give British Columbians enough information to make a decision. Then I’d agree with the member, yes, absolutely. What is the point of holding a referendum like that?

The other possibility is what the state of affairs is, which is that I have confidence in the engagement process we participated in with British Columbians, and their feedback and the recommendations that I’m putting to cabinet on that to make sure that British Columbians will have the information they need to make an informed decision to participate in this referendum process.

It is something that I have been very honoured to take on and that I feel a huge weight of responsibility around. I look forward to the member’s feedback on Wednesday when he reviews the report. That might be an appropriate time for him to evaluate — and for British Columbians to consider — the process that’s laid out, and the suggestions and recommendations that are made about how the process should go, to ensure that British Columbians have that information that they need.

M. Lee: Just to ask the question. The Attorney General has said time and time again in this House that there was a record level of participation in respect of this survey on PR. Could I ask the Attorney General to clarify for this House, in what other circumstances did we have a similar level of participation and survey using an on-line mechanism, in terms of…? What is the comparison point, in his view?

Hon. D. Eby: There have been a number of on-line engagement processes engaged in by the previous administration and by our government.

The cannabis one was an engagement process very heavily participated in. When you think about the issues that we face across British Columbia — with unlicensed dispensaries, the interest in the federal government’s legalization of recreational cannabis, the impacts on policing, impaired driving, youth access, mental health, and so on — it’s a good measure of an interest of broad public concern that people would be motivated to fill out a survey about, and so on. There was more participation in the engagement on proportional representation.

There are some very unanalogous — I don’t know if that’s a word or not — inappropriate comparisons. The previous government did an on-line consultation on report cards, and something like 5,000 people, or fewer than 10,000 people, participated in it — not a fair comparison. One is a comparison of an issue of public importance, to kind of gauge the level of British Columbians’ interest. And I have to say, I was very pleasantly surprised.

[5:00 p.m.]

When we started the engagement process, I said: “Not everyone gets out of bed thinking about electoral systems and how we send legislators to parliament.” So I was very pleasantly surprised that British Columbians were so engaged on this topic.

M. Lee: I appreciate that.

Just as a point of reference, can I ask how many respondents there were to the cannabis on-line survey?

Hon. D. Eby: The cannabis public engagement had 127,952 site visits and 48,151 completed questionnaires. The Human Rights Commission engagement had 13,253 site visits and 511 discussion comments. Distracted driving had 24,051 site visits and 1,932 on-line comments. Your Kid’s Progress, which was a report card — one I unfairly maligned the previous administration on, by saying it was fewer than 10,000 completed site visits — had 28,557 site visits and 5,435 feedback forms.

You can see that there are some there in that list that are more indicative of an issue that would have broad public engagement, like cannabis. With some, it might be harder for people to immediately see why they would spend time filling out an on-line comment form related to it, like distracted driving, when there seems to be a broad public perspective on the harms of that type of activity, and people know where government stands on it.

So there are a couple of examples for the member, in terms of gauging the more than 180,000 site visits and the more than 88,000 questionnaires that were completed.

M. Lee: Well, thank you for that detail. I would like to just come back to a statement that was made earlier about the chicken-and-egg situation. In terms of information that is provided to British Columbians about proportional representation, which does relate, in part, to the question from the member for Prince George–Mackenzie…. When a survey was done of this nature, of this complexity, did the Attorney General receive advice and input as to the nature of the public engagement?

My sense of this is that the government is relying on the quantity over the quality of the engagement. Is there a concern that the reliance here is merely on something where the details of what is being considered haven’t been fully laid out for the public? As much as this may not be a poll, it is something that the government, from what we’re hearing, is relying on to design its report that is now going to cabinet. Is there a concern about the quality of this public engagement that the Attorney General might see?

Hon. D. Eby: The member is right. It’s not simply a numbers game of how many people completed the questionnaire or how many people visited the site. Although we were very pleasantly surprised by the level of participation, that’s not enough in itself. We looked at the data: “Okay, how long are people spending on the site?” They spent an average of 14 minutes on the site, reading and learning about different things. Then they went and filled out the questionnaire, and they spent an additional average of about 16 minutes filling out the questionnaire.

[5:05 p.m.]

They spent half an hour on the site, on average, for those people who filled out that questionnaire. That’s more than 88,000 people. There was some time spent and some thought put into it, by people who were participating.

I can’t emphasize enough that the on-line survey was one piece. The panel of British Columbians, the thoughtful written submissions by organizations that are very engaged on these issues, the members’ speeches in second reading of the referendum bill — all were key considerations that influenced the recommendations that’ll be coming forward on Wednesday.

M. Morris: It’s still not clear as to what steps the Attorney is taking to ensure that core value, that fundamental core value, is addressed to ensure that citizens have sufficient information about public policies to permit them to make that decision at the end of the day. That’s a requirement of our Charter. The answers that the minister is giving don’t instil a lot of confidence in me that that information is going to be available.

We’re not talking about giving a person the right to smoke cannabis. We’re not talking about giving people a say on whether you should be using a cellphone when you drive. We’re talking about a fundamental core piece of our democratic process in Canada. So this is a very important piece. It’s a Charter argument here that if it’s not fulfilled, if it’s not satisfied, it’s going to taint the process as we move forward from here.

Can the minister outline exactly what steps he’s taking to ensure that that core value of section 3 of the Charter is satisfied?

Hon. D. Eby: I agree with the member. We didn’t run this process to decide how British Columbians send members to this place. We ran this process, and not just this process — I’ve run through all the different processes we ran — to gather information about how to design the process in which British Columbians will vote to decide on how we send members to this place.

I point it out merely as a technical matter, because I agree with the member on principle that we need to provide British Columbians with sufficient information to be able to vote. But the Charter section that the member references relates to election of legislators to the House of Assembly. It doesn’t relate to plebiscites. But that is merely a technical point, because I agree with the member that British Columbians need information in order to be able to vote.

In fact, I don’t feel that I’m letting the cat out of the bag by saying that that is something that was very consistent in the feedback, in the written submissions and generally — that people wanted the information. So I don’t think that we’re at odds here. I think that the member will hopefully read the report on Wednesday with an open mind and with his concerns in mind. I look forward to hearing his feedback once he’s done that.

M. Morris: Does the minister disagree with the fact that if citizens are going to be voting in favour of going to a PR system, they fully understand how that decision is going to affect their representation, how that decision is going to affect electoral boundaries, where their representatives are going to come from, how that’s going to change the fundamental requirement under the Charter that they be represented in the Legislature or the House of Commons?

Hon. D. Eby: I look forward to the member’s feedback on the report that’s coming out on Wednesday with recommendations to the government about regulations, including the question or questions going to British Columbians, how they’re provided with the information, and so on. I hope to hear from him once he’s had a chance to have a look.

M. Morris: Oh, you will be. No question about that, Minister.

You made a comment that…. We were talking about voting in a referendum, in a plebiscite, and that section 3 of the Charter is designed for voting in a general election, a provincial election or a federal election. Could the minister explain that?

[5:10 p.m.]

Hon. D. Eby: If the member could just give us a second, we’ll find the case for him.

The case is Haig v. Canada. It’s the 1993 decision of the Supreme Court of Canada.

M. Morris: Does the minister believe that voting in a referendum requires the same principles as voting in a general election?

Hon. D. Eby: Yes. I apologize if I didn’t make it clear in my answer to the member. I was just pointing it out as a merely technical matter. I agree with him on principle that British Columbians, whether it’s a referendum or a vote to send an elector to represent them in a Legislature, need to have the information necessary in order to make an informed decision. So it was merely a technical point that I was making with the member. It wasn’t to disagree with his sentiment.

M. Morris: I’m aware of that case that you quoted. I’m also aware of another case, Libman v. Quebec, 1997. I’ll quote from paragraph 46 of that decision: “Although the referendum system is different from the electoral system…the people vote to elect their political representatives for a specific mandate. The same principles underlying election legislation should in general be applicable to the referendum legislation…. In both elections and referendums, voters can freely express their choice after being informed of the issues during the election or referendum campaign, as the case may be.”

This is a binding referendum, so I’m curious as to…. The minister has talked about the question that’s coming out on Wednesday. But I’m referencing this as: the same importance as any general election needs to be applied to a referendum as well.

Hon. D. Eby: I’m glad to have a look, and I thank the member for bringing that case to my attention. But it doesn’t address the issue. The member says that people need enough information to vote. I agree with him. People need enough information to vote, whether it’s a referendum or otherwise. I’ll have a look at the case that the member recommends to me.

I appreciate him bringing that to my attention, but it doesn’t change a single thing about the recommendations that I’ll be putting forward, because the recommendations are designed keeping in mind that British Columbians have been very clear — in the written submissions, certainly — that in an engagement process, they need the information necessary to make a decision. And I would not recommend otherwise.

M. Morris: I’m getting a different impression with respect to this referendum — that it’s not afforded the same importance and the same level of consideration that a general election would hold. So I’m going to ask a couple of questions and probably get back to the technical side, as the minister refers to it.

[5:15 p.m.]

Does the minister know if there will be a campaign period for the proponents and opponents to campaign for their cause prior to the referendum being held?

Hon. D. Eby: Just as a merely technical matter — I’m not sure how it could be otherwise — I can tell the member that in a general election, the writ period is a month. There will be a longer writ period recommended here.

In any event, the writ period, the rules around spending and donations, and so on, will all be — my recommendations, anyway — released on Wednesday, and they’ll all be based on the feedback we received from British Columbians from across the province.

M. Morris: In the referendum act 2018, there’s reference to holding the referendum by the end of November of this year. How was that date determined, particularly when we’re looking at holding municipal or local elections just a month earlier than that?

Hon. D. Eby: If British Columbians decide to change the way we send people to this place through a vote, a free vote, then the new voting system will be in place by 2021. So the November date is related to the timing necessary in order to ensure that there’s adequate time. It’s a fairly…. If British Columbians send us in that direction, it’s a lengthy and time-consuming process for Elections B.C. to prepare for that, and we need to make sure that they have the time necessary to be prepared for any change of that significance.

M. Morris: Is the minister concerned that the campaign period for the referendum will overlap with the campaign period for the local government elections?

Hon. D. Eby: We actually looked, quite seriously, at trying to hold the referendum in the same polling stations as the municipal elections as a mechanism to save money and encourage voter turnout. Then when we looked at it, we realized that, actually, it would be not only more expensive, but it looked like it might have a lower voter turnout than a mail-in ballot process when we looked at the numbers in comparison to other votes. So we went ahead with the mail-in ballot.

There was a possibility, at least at one stage, of actually having people vote for their municipal candidates and vote in the referendum at the same time. It’s not unusual in many jurisdictions to have referendum questions as part of a general election process.

The exact recommendations around timing, and so on, will be coming forward in the report on Wednesday. I look forward to the member’s feedback on that.

M. Morris: I didn’t really get an answer to my question. Are you concerned that the campaign period for the referendum will overlap with the campaign period for the local elections?

Hon. D. Eby: Well, we considered, and we thought that there might actually be some benefit from having the election at the same time as the municipal elections — that municipal candidates would actually encourage people to come out to be voting for the referendum as well. In that sense, in terms of the recommendations that come forward on Wednesday, if there’s overlap there, that may be a beneficial impact.

The member will have to be more specific about concerns that he may have, obviously, related to overlap. In any event, the recommendations…. It might be more appropriate for him to raise any concerns after he sees what the recommendations are about the campaign period and the voting period, and so on, on Wednesday.

M. Morris: I’ll just go back to the 2009 referendum that was held. I went on the Elections B.C. website, and I did notice…. Of course, I also looked at some Hansard transcripts from that particular time.

[5:20 p.m.]

The 2009 referendum was initially proposed to run with the 2009 municipal elections in that year. Because of the advice received from the Chief Electoral Officer saying that the criteria to vote in a municipal election is different than the criteria to vote in a provincial election, he recommended that that not take place at that particular time. That was the fundamental reason why the referendum didn’t take place at the same time.

I’m sure that same criteria still applies in today’s world. I’m just wondering whether the minister has received any advice from the Chief Electoral Officer with respect to that.

Hon. D. Eby: The member is absolutely correct. I was remiss in not mentioning that that was one of the other additional factors — more costly and potentially less voter participation.

One of the reasons why it was more costly was because there were different voters lists for the municipal election versus the referendum. Essentially, you need a duplicate set of staff. There are two separate lists. It’s a complicated process. So what seemed intuitive — that people showing up to vote for a municipal election could also vote for the referendum — turned out not to make sense when we kicked the tires on it and did the necessary research. That was not something that I came up with. Somebody did some research on that, within the ministry somewhere, and I was glad that it was flagged.

The member will note that we are not proceeding with that direction. We’re doing a mail-in ballot that is separate from the municipal process.

M. Morris: Section 23(3) of the Constitution Act instructs the LG to change the date of a provincial general election if the campaign period overlaps with a local government election or a federal election. We’ve just confirmed with Libman and Haig that these same principles that apply to a general election also need to be applicable to a referendum.

Is the minister concerned at all that there’s going to be an overlap in this? Is he going to ensure that that changes?

Hon. D. Eby: I think that I’m looking at the same section as the member, which talks about the campaign period for a general election to the Legislative Assembly overlapping with a municipal election. That is not what is proposed by the member in terms of his concern. The member is concerned that the referendum might overlap with the municipal election. I don’t see that that is an issue, on the plain wording of section 23.

In any event, he might be well advised to review the report on Wednesday with this lens and bring forward any concerns he might have.

M. Morris: I take it that the minister is disagreeing with the Supreme Court of Canada with respect to that the same principles underlying election legislation should in general be applicable to the referendum legislation.

Hon. D. Eby: I advise the member…. I take it quite seriously, in my role as Attorney General, that decisions of the Supreme Court of Canada, which have the binding effect of law on us here in this place and in the importance of the rule of law in the province…. I would not bring forward recommendations that recommended to cabinet or anybody else that they break the law or violate the laws set out by the Supreme Court of Canada.

M. Morris: Is the minister prepared to change the date of the referendum so that it doesn’t conflict with the campaign period for local elections in B.C.?

Hon. D. Eby: I think the member will be well placed to review the report and the recommendations about the voting period and the campaign period and to satisfy himself that the recommendations are compliant with the law.

M. Morris: Talk about the voting period and the campaign period. I’m waiting with bated breath to have a look at that report the minister is referring to.

I go back to the principle that a referendum must follow the same general principles as a general election, provincial or federal. If that’s the case…. I look at the referendum act itself, 2018, and the fact that there are no regional thresholds. There is a 50 percent plus one of eligible votes cast.

[5:25 p.m.]

The minister just finished telling us that they adhere to the federal constitution and to the laws of Canada when they look at developing the legislation for the province and the regulations that stem from that. The Constitution of Canada, for electoral reform, basically says that we need regional buy-in as well as the 50 percent of the population voting in favour of that.

Is the minister satisfied that the referendum act, 2018, doesn’t violate the Charter and the fundamental values that the Charter holds in guiding legislation right across this country, including all of the provinces?

Hon. D. Eby: As an interesting point of trivia, the 2005 and 2009 electoral referenda were both held in conjunction with the provincial general election, and they appeared to be able to coexist quite nicely without any issues.

To the member’s point, we’ll commit to him and to the members here and to the record, again, that as Attorney General, I would not put forward legislation in this place that is not compliant with the Charter, with the constitution, with the law in British Columbia or Canada. I would not do that. I was the member who put forward the bill. It is my belief and understanding, based on the best legal advice that I can receive, that the bill that is now law complies with the constitution and all of the applicable laws in British Columbia.

M. Morris: If I understand the minister, he’s saying that he disagrees with the regional thresholds that the federal constitution has in place for electoral reform, that it doesn’t apply to the laws in British Columbia. We can just go ahead and hold a vote with 50 percent of the eligible votes cast, with no regard for the equality of votes that the Supreme Court of Canada has said is fundamental in the democracy of Canada, and British Columbia is included in that.

Hon. D. Eby: I think the summary might suffice that I disagree with the member’s interpretation of the law.

M. Morris: So the minister is saying he disagrees with the application of the federal Charter on British Columbia laws with respect to the regional representation? You know, we go back to Dixon, and it’s been upheld in several Supreme Court decisions since Dixon that equality of voting is paramount in democracy in Canada.

Equality of voting not only takes in population, representation by population, but it also needs to look at regional and geographical differences in our country and in our province. That was one of the reasons why the legislation was changed in 1989 to reflect the electoral districts that we have in British Columbia — so that they reflected that decision from the Supreme Court of Canada at that particular time.

Now the minister is saying with this referendum that “I hope we’re in agreement that the general provisions that apply to a general election or a federal election also apply to a referendum.” If that is the case, then also the equality of voting…. The system that we have in place with our electoral districts and the value of those votes in the various different regions of Canada are also equally important.

Hon. D. Eby: One of the things that was very clear in feedback from people across British Columbia, from the members’ second reading debate speeches, was concern about having a unique situation in British Columbia, which is the rural-urban groups, and ensuring that rural communities are heard, that their voices are heard in the process and in the referendum, that their interests are protected, that their democratic rights are protected, and so on.

I’m happy to advise the member that I heard that loud and clear. The member can evaluate the recommendations that are going forward on Wednesday and determine whether the recommendations meet with his approval in that respect or otherwise.

[5:30 p.m.]

To the extent that the member is suggesting that I put forward legislation that is unconstitutional or illegal, I simply disagree with the member. It’s not the case. I appreciate his legal argument. I don’t agree with it, and I’m not sure how else I can say it.

M. Morris: If I understand the minister correctly, the minister is devaluing the regional vote in British Columbia when he talks about the threshold being 50 percent of all eligible votes cast in the province for this referendum. If we use the same criteria in the referendum as we do in general elections, we need to look at the regional value of all the votes that we have. The courts have been very clear on the importance of making the votes equal right across the land.

British Columbia is very diversified. It’s one of the most urbanized provinces that we have in Canada. The majority of our population lives in less than 0.5 percent of the land mass of the province, so regional representation is extremely important. How is the minister going to reconcile that difference and make sure that all the votes in this referendum are going to be equal?

Hon. D. Eby: In terms of the recommendations that I’m putting forward, the member will have a chance to review those and make his assessment on that. In terms of the bill that was put forward that became law, it was passed a number of months ago now. The member argues that it’s illegal, and it’s unconstitutional. He had the opportunity to challenge it in court. He still has the opportunity to challenge it in court. I can tell him that — to the best of my knowledge, the best legal advice that I’ve received — the bill is constitutional and legal.

What also is true is that I hear the member’s comments now. I heard the member’s comments during second reading of the debate. I heard the comments of British Columbians around the value that they have in terms of ensuring that rural voices are protected.

[L. Reid in the chair.]

The member can review the recommendations that I made based on that feedback that I received, and he can provide his assessment of that. Then, with any regulations that are put forward based on that, he also has the opportunity to challenge those in court if he believes them to be illegal. I simply do not believe them to be illegal.

M. Morris: I appreciate the minister’s answer on this, but he still hasn’t advised me and advised this House how he’s going to reconcile this apparent difference by recognizing regional differences for our votes to make sure all votes are equal across Canada and across British Columbia. Recognizing that definition that the Supreme Court of Canada has reinforced several times — that it’s based on population but geographical and regional differences as well — the referendum act of 2018 does not reflect that. So I’m wondering how the minister plans on reconciling that constitutional value that we need to adhere to in B.C.

Hon. D. Eby: Every British Columbian of eligible voting age who meets the requirements to be able to vote in British Columbia will get one vote on this. They will be able to vote their conscience, and they will be able to make a decision about how we send members to this place. The administration of that process will be by a non-partisan, independent third body — Elections B.C. — that I think every member of this House has confidence in to be able to do that and engage in that process.

There is an underlying assumption, I think, that the member has, that people in rural communities have one particular point of view on electoral systems and people in urban communities have one particular point of view on electoral systems. I’m not sure that’s the case. One of the merits of the process that’s going forward and the 50-percent-plus-one vote is that it doesn’t favour any existing system. It doesn’t give any existing system an advantage. It says 50 percent plus one to keep the system or to change the system.

I appreciate the member’s feedback, and I look forward to his feedback on the report on Wednesday.

M. Morris: I just want to disagree with the minister’s statement about rural British Columbians — how they vote and the value of their vote with respect to the 2009 referendum. If you look at the results from the 2009 referendum that took place, basically 60 percent voted to maintain the current first-past-the-post system and 40 percent voted to change it to go to proportional representation.

[5:35 p.m.]

If you look at where those votes resulted, the majority of them were in the capital regional district, a very small part of British Columbia, and three or four ridings in Vancouver. That was it. The rest of the province voted hugely in favour of maintaining the current system that we have.

That’s where I’m saying that the importance of recognizing the regional input into this, not just 50 percent plus one…. If we look at that, the GVRD and the capital regional district have 60 percent of B.C.’s population. They could outvote rural B.C. in a flash. That’s one of the reasons why the Supreme Court has recognized that the equality of voting is one of the most fundamental democratic rights that we have in Canada and British Columbia.

You must recognize that there’s the population base, and they’ve allowed us to deviate by plus or minus 25 percent, but also the regional and geographical differences. Our federal constitution says that as well — that in order to change electoral reform in Canada, you need to have 60 or 70 percent of the provinces on board as well as 50 percent of the population. So I’m curious as to where the minister sits with this from a constitutional perspective.

Hon. D. Eby: I keep hearing the member’s question, which is: “Do you believe that the legislation that you put forward in this place that was voted on by representatives here is unconstitutional or illegal?” The answer to the member’s question, no matter how he phrases it, is the same. I stood up. I presented that legislation in this place. I would not put forward legislation in this place that I believe to be unconstitutional or illegal. If there was a member in this place, another member of cabinet, that stood up and presented a bill that I knew to be unconstitutional or illegal, I would advise this House. I would tell them that, because that is the role of the Attorney General.

The member can ask the question ten different ways. The answer will be the same. The bill, in my opinion, based on the best legal advice I can receive, is not illegal or unconstitutional and provides every British Columbian with a vote. It is their decision, British Columbians’ decision, about whether we keep the current system or whether we change to a different system.

M. Morris: It sounds to me like the minister is saying that, in his opinion, this meets the constitutional challenge that we have with the federal constitution. I don’t see that. You know, I haven’t seen anything in that particular bill that recognizes the regional differences in our province, which is fundamental to the equality of voting in Canada and British Columbia.

If the minister becomes aware that this might be a constitutional issue, would he be willing to pull that bill and cancel the referendum?

Hon. D. Eby: It’s easy to lose track of the fact that we’re in estimates. The referendum bill was presented in this place. It was voted on by the majority of members. I’ve advised the member several times, based on the best legal advice, that it’s legal and constitutional and, I would argue, entirely appropriate that each British Columbian gets one vote about how we send members to this place.

The underlying assumption of the member’s question, continually, is that rural voters have the same perspective which is different from urban voters when it comes to the question or questions that will be put forward in the referendum process. I appreciate the member’s confidence about his knowledge of voter intention in these times we live in, but I think that is speculative.

Each person who is eligible to vote in British Columbia will get one vote. They will have the opportunity, and they will be the ones who make the decision — not that member, not me — about how we send members to this place.

M. Morris: What I’m understanding the minister saying is that the requirement for regional representation, as provided by the Constitution Act, 1982, has no bearing in British Columbia on this referendum, that we don’t need to pay attention to the regional representation in British Columbia. We only need to pay attention to the 50-percent-plus-one requirement.

[5:40 p.m.]

Hon. D. Eby: I said no such thing. What I did say was that I disagreed with the member’s interpretation of that law.

Obviously, the Charter applies to us. If we said of an identifiable group of people, “These people are not allowed to vote in the referendum,” we could certainly be challenged. The law would apply, and appropriately so, to challenge the discrimination of saying that an identifiable group of people are not permitted to participate in the election.

I certainly did not suggest that the law doesn’t apply to the referendum. What I did say, and what I’ll say again, is that I do not agree with the member’s interpretation of that law — how it applies to the bill that was in front of this place and that eventually became the law. And I will be putting forward recommendations on Wednesday for regulations around how this process will be held.

I welcome the member’s feedback on that as well. But I would not put forward either a bill or recommendations or anything else in front of this House that counselled or encouraged the members of this House to pass a bill that was illegal, unconstitutional or otherwise improper. That’s the role of the Attorney General. I take it seriously.

M. Morris: I hope the minister and his counsel have a look at some of these issues, because I do see some merit in the discussions that we’ve been having here. I go back to the Supreme Court, in Haig and Libman, with respect to the referendum having the same importance and application as a general election does.

I don’t know what the minister is finding humorous about the discussion that we’re having. This is critical. This is about the democratic rights of British Columbians, to make sure that everybody in British Columbia receives the protection of the federal Charter that we must adhere to.

Going back to my question, how does the minister plan on holding the referendum now that he’s in agreement that it requires that the same general principles that apply to a general election need to be applied to a referendum? Is he still intent on proceeding with the referendum, based on the discussions that we’ve had to this point?

Hon. D. Eby: With apologies to the member, I was laughing about something totally unrelated. I was speaking with staff here briefly.

The member assigns to me a certain understanding of the law that I’ve said now, several times, that I disagree with and then suggests that I should, therefore, not proceed with something that the majority of the members in this place were elected to proceed with, which is to hold a referendum on keeping the existing electoral system or changing to a new electoral system.

I try to respond to the member’s questions in different ways, but after a while, it starts to get quite repetitive. I disagree with the member’s interpretation of the law. I do not agree with him that the bill or the law that was put forward is illegal or unconstitutional. The recommendations I’ll put forward on Wednesday — based on the engagement process with British Columbians across the province, lengthy written submissions by organizations and individuals, survey results from people — will be recommendations in compliance with Canadian and British Columbia law and constitution. I look forward to hearing the member’s feedback on that.

M. Morris: Here we have a piece of legislation that could very well fundamentally change the electoral process in British Columbia. Now, under the federal constitution, it says that we need that regional portion of Canada in agreement with that as well as the population. I say that applies to British Columbia. The minister disagrees with that. I guess we’ll have to wait and see what comes out at the end of the day.

The minister is in agreement that the general principles that apply to a general election also apply to a referendum. Is he going to ask that the date for the referendum change so the campaign periods don’t overlap with the municipal or the local elections that take place just shortly before that?

Hon. D. Eby: I advised the member that his government — or, at least, his predecessors in that party — held a referendum on electoral reform in 2005 and 2009 not just near the provincial general election but literally in concert with the provincial general election, the campaign period and the vote.

[5:45 p.m.]

Unless he is suggesting that his predecessors acted illegally by having an entirely overlapping campaign and voting period for referendums with a general provincial election, then surely he must agree with me that although it is a creative legal understanding that he has come to about overlap here, it is just that. It is not actually the state of the law.

In any event, on Wednesday, I will be releasing my recommendations about when the writ period should be and when the campaign period should be for this referendum. Then the member can evaluate it at that point, and I look forward to hearing his feedback.

M. Morris: Again, I have to go back to the recognition that a referendum follows the same general principles as a general provincial election. I go back to section 23(3) of the Constitution Act, which says that the LG must change the date of a provincial general election if the campaign period overlaps with a local government election or a federal election. If we’re going to be using the same principles that apply to a provincial general election, then I would suggest that section 23(3) of the Constitution Act also applies in this case. Is the minister in agreement with that, or does he disagree with that?

Hon. D. Eby: I highly recommend to the member a reading of the Haig decision that I mentioned to him earlier. We clearly have a different understanding of the law, and that’s okay. What’s not okay is for the Attorney General to put forward legislation that’s unconstitutional or illegal. And inconsistent with the constitution would be an example of that.

Based on the best legal advice I’ve received, based on my own understanding of the law, I can advise the member and every member of this House that the legislation is, to the best of anyone’s knowledge that I’ve been able to consult, consistent with the law. Also, the recommendations around regulations coming forward on Wednesday will be the same, because that is a responsibility of the Attorney General. Again, I disagree with the member’s interpretation and recommend the Haig case to him. It draws a very clear distinction around referenda.

I’m grateful to the member bringing this other case to my attention as well, and I will definitely have a read of it, but I have to say that I don’t believe we have the same understanding of the constitution.

M. Morris: Section 12(2) of the Election Act states: “The chief electoral officer has the following powers in addition to all others given by this Act: (a) to make recommendations to the Legislative Assembly respecting amendments to this Act or other enactments affecting election matters.” Can the minister tell us if he has received any recommendations from the Chief Electoral Officer with respect to holding this referendum?

Hon. D. Eby: I can tell the member that there haven’t been any formal recommendations from the Chief Electoral Officer, but staff in the Ministry of Attorney General have been engaged with staff at Elections B.C. around issues related to the mailout and return of the ballot — timelines and those kinds of things. But in terms of formal recommendations, there have been none that fall within that category.

M. Morris: Could the minister explain to me what this mail-in ballot system looks like?

[5:50 p.m.]

Hon. D. Eby: I’ll advise the member that this is not something that we’ve confirmed with Elections B.C., in terms of how they’ll be holding this specific mail-in ballot. This is entirely within the realm of their process.

I can tell the member that typically, mail-in ballots work as follows. There is an addressed envelope that is received by the registered voter. Inside that envelope, there are two envelopes. There is a secrecy envelope and a certification envelope. There is also a ballot, and there are also instructions.

The instructions advise the voter how to complete the ballot and submit the ballot. In the two-envelope system, the ballot goes into the secrecy envelope, which has no identifying information on it. The secrecy envelope goes inside the certification envelope, which has the voter’s details on it, identification to ensure the validity of the vote and that the person voting is actually the voter. Then the ballot is mailed to the Elections B.C. processing facility, where the ballot is counted, and the election is complete.

M. Morris: From my understanding of the Election Act, mail-in ballots are used in special circumstances. I’m suggesting that if we are to follow the Supreme Court’s advice that the general principles that apply to a general provincial election also pertain to a referendum, is the minister concerned that mail-in ballots would be used outside of the requirements of the Election Act for a general election and that he’s forging new grounds here?

Hon. D. Eby: No.

M. Morris: So no, the same requirements that apply to a provincial general election aren’t applicable to a referendum.

Hon. D. Eby: The member asked if I was concerned, and the answer was no.

The reason the mail-in ballot was chosen, as I told the member and as I’ve told this House a number of times — and I’ve told the media, and I’ll tell everyone who will listen — is it has a higher voter participation rate. That’s why we decided to, among other reasons, not proceed with a concurrent election with the municipal election process. It saved money, it had a higher voter turnout rate, and it avoided this issue of confusion with the two different voters lists.

M. Morris: If I understand, the minister is saying that he would rather save money than apply the general principles of a general election to this referendum.

Hon. D. Eby: I know it’s the end of the day, hon. Chair, but the member is stretching. The member may or may not know that someone who is unable to attend in person during a general election may fill out a mail-in ballot — for any election. Not only do we accept mail-in ballots for referenda, as has been done on many different occasions under the previous administration, but also we accept mail-in ballots to elect members to this place already, directly. So I’m not quite sure what the member’s objection is.

Also, I do disagree. I’m not sure how it gets us further ahead for him to suggest that the reason the mail-in ballot was chosen was to save money. It had a number of features that recommended it to government. One was that it had a higher voter turnout, and that was the dominant consideration. Another benefit is it actually saves money as well. So the choice was quite obvious.

I do appreciate the member has concerns and objections. I’m just not sure why a mail-in ballot is one of them, given that we use them to elect members to this place anyway.

M. Morris: The only concern I have is that the same rules that apply to a general election apply to a referendum.

Who made the recommendation to the minister that he follow the mail-in ballot regime?

[5:55 p.m.]

Hon. D. Eby: I can tell the member that there were two main options on the table, looking at the timelines. One was to hold the vote concurrent with the municipal election. That option was rejected for a number of reasons.

First of all, municipal elections have had lower voter turnout than mail-in ballots in the past. Secondly, there were two separate voter lists. One was for municipal elections, and one was for the referendum — different people eligible to vote in different elections. So there was some risk of confusion. The third was that it was significantly more expensive.

When those factors were evaluated against a mail-in ballot that had higher voter turnout — mail-in ballots, which are used to not just elect people to the Legislature but also for previous referenda in the past, which is how we know that the voter turnout numbers are better — and is actually cheaper, the choice was quite obvious.

The decision was mine. It was based on the best information provided to me by staff — public servants who did the research about voter turnout, cost, logistics, all these issues.

I have to tell the member that my initial impression was that it would be best to do the vote consistent with a municipal election. It was the research and information that was done by the public service to advise me on the options that led me to recommend to cabinet and, ultimately, to this place that the way forward is the mail-in ballot — to put forward legislation suggesting a mail-in ballot in this minority parliament. It passed with a vote, and that is the system that’s going forward.

M. Morris: Did the minister, when he was determining how he was going to hold a referendum and when he was going to hold a referendum, give any significance to the advice that the Chief Electoral Officer had given to the previous government in 2009 — to not to hold it in conjunction with the municipal election because the voting criteria were different?

Hon. D. Eby: I wasn’t privy to that advice, but I was advised that the voting criteria were different, and it was a factor.

M. Morris: I will go on to, and we talked a little bit about it earlier, the equality of voting. The courts have confirmed that the right to a high degree of equality of voting power is one of great importance. “It is one of the most fundamental freedoms granted by the Charter, upon which all other rights and freedoms guaranteed ultimately depend. Therefore, it cannot lightly be undermined.” That, again, is McLachlin in the Dixon decision.

The Premier recognized this when he stated: “The amending formula for our constitution, for example, requires approval by seven provinces with 50 percent of Canada’s population. So it’s an absolute 50 percent, but it includes seven provinces…. This amending formula is similar to the kind of formula we’d need for a plebiscite on changing how we elect people in B.C.” The Premier’s statement appears contradictory, as now we see just a simple majority of 50 percent of eligible votes cast being acceptable.

Considering that over 60 percent of B.C.’s population is concentrated in the capital regional district and the GVRD — 0.53 percent of B.C.’s land base — is the minister concerned that the equality of voting power in the rest of British Columbia may be compromised and thus offend section 3 of the Charter by not taking into consideration the geographic and regional differences?

Hon. D. Eby: The member started by reading that the relative parity of voter power is a key consideration. The Dixon case talks about, well, how one British Columbian gets one vote. That is the parity of voting power.

The member is repeatedly suggesting that the legislation put forward is unconstitutional, that the law says this. I simply disagree with the member, and that’s okay. We can have disagreements about that.

If the member is truly convinced that he’s correct, he can take that legislation…. The courts have this superintending jurisdiction to review legislation to ensure its constitutionality. The member, I’m sure, knows that well.

I can tell the member that, based on the best legal advice, there is absolutely no issue here. I appreciate the member’s submissions on it; I just don’t agree with him.

[6:00 p.m.]

M. Morris: How does the minister reconcile the differences, then, with what the Premier has said, where he recognizes that we need 70 percent of the province’s voting in favour of it as well? He recognizes the regional importance, as the federal constitution dictates. How does the minister rationalize not using that in British Columbia for the referendum?

Hon. D. Eby: I’m sorry. Rationalize not using what?

M. Morris: Rationalize regional representation. So rationalize the fact that to change electoral systems in Canada requires a majority of the province to be on board, in addition to the 50 percent of the province. That also requires that the majority of regions, electoral districts in British Columbia, also need to vote in favour of it, in addition to the 50 percent of the population. Does the minister disagree with that statement?

Hon. D. Eby: I will put forward recommendations to cabinet around regulations around holding the referendum, around the question or questions to go to British Columbians — where every British Columbian gets one vote to decide how we send members to this place. That is what is passed by this Legislature. That is what I have been tasked to do.

I do appreciate the member’s suggestions, I guess I can describe them as. I thank him for them, but I…. It’s a strange estimates process.

M. Morris: Strange or not, it falls under the minister’s portfolio. We just want some clarification on what this whole episode looks like, particularly as fundamental as electoral reform.

Prince Edward Island held a referendum in 2016 where the government rejected the referendum results because voter turnout was uncharacteristically low for the province. How low does the voter turnout have to be for government to reject the results here in British Columbia?

Hon. D. Eby: There’s no threshold prescribed in the legislation. I can tell the member, though, that I have been pleasantly surprised by the level of engagement of British Columbians with this process to date. I am very hopeful of a very significant voter turnout, and there are a number of factors that point in that direction.

First if all, the mail-in ballot process was selected to maximize voter turnout, as it has had success in the past in maximizing voter turnout. The second is that we had the biggest engagement in the history of the province in relation to this process. The third is, I understand, that parties on all sides, the three parties representing the Legislature, will be out there campaigning, which is something different than has happened in the past. There is a lot of interest from established organizations, as the member will see, that provided written submissions about how this should go forward.

I think that when you put all these factors together…. Although I understand the member’s question — I heard it during the second reading debate on the bill that passed in this place — I’m very hopeful about voter turnout being good on this question. I think British Columbians are very interested in weighing in on one side or another of how we send people to this place.

M. Morris: I still haven’t received a fulsome answer with respect to how the minister reconciles the difference between the requirement of the Constitution Act, 1982 to have that regional threshold in place for electoral reform, yet he’s decided that that is not applicable to British Columbia.

Hon. D. Eby: The member won’t receive an answer because I don’t agree with his interpretation of law. It’s as simple as that.

The member’s remedy around this disagreement is to go to court. If you believe that this legislation is illegal, then you challenge that. You go ahead and challenge that in the court. But I’ll tell you this: there is no issue here.

I do appreciate the member’s legal submissions on this, and I’m prepared to be wrong. But I do need to say that simply because the member says the law is X does not necessarily mean that it is X.

[6:05 p.m.]

M. Morris: The minister is prepared to be wrong. He’s suggesting that I raise a challenge in court if we’ve got some concerns over the constitutionality of the referendum itself and the process. This government seems to have a real propensity to go to court and get some answers.

Here we have the Supreme Court of Canada saying that the general principles applicable to general elections also apply to referendum. We’ve got the constitution saying that there are regional thresholds that need to be kept in mind during any electoral change that we have in Canada or British Columbia.

The minister disagrees with that, feels he’s on solid constitutional ground. Of course, we’re agreeing to disagree in this House right now, but that’s an issue that, if the referendum does come about, I think is going to be flawed because of the issues I’ve surfaced here in the House today that I don’t think have received the serious consideration of the government.

Hon. D. Eby: The member is advancing an argument that I’ve heard the courts describe before using the word “novel.” It is a novel argument. He is at odds with Peter Hogg, who is the author of the leading textbook on the constitution.

He’s at odds with the Supreme Court of Canada in the Haig decision. I’m going to read to him from that decision, discussing section 3. The wording of the section, as is immediately apparent, is quite narrow, guaranteeing only “the right to vote in elections of representatives of the federal and the provincial legislative assemblies.” As Prof. Peter Hogg notes in Constitutional Law of Canada — the citation is 3rd edition, 1992, volume 2 at pages 42-2 — “the right does not extend to municipal elections or referenda.”

Now, the member, rightly, raises the issue of: how much information will voters have? Will they have enough information to make an informed decision? The recommendations that I am putting forward on Wednesday are aimed at ensuring that voters have enough information to make an informed decision when they’re voting.

Otherwise, I think it was the member for Vancouver-Langara who said: “Why else hold a referendum?” I agree. Why else hold a referendum if people feel that they don’t have enough information to vote? We can agree on that. Let’s find some points of agreement. We can agree on that — that voters require necessary information in order to vote — and my recommendations on Wednesday will be aimed at that.

M. Lee: In the course of what was being presented to British Columbians, there were multiple forms of proportional representation that were presented. Three of those potential PR electoral systems proposed on the government consultation website included provisions for list candidates: mixed-member proportional, list proportional representation and mixed-member majoritarian.

To the Attorney General, could he please tell us if he has ruled out consideration of closed lists?

Hon. D. Eby: The consultation engagement process that we engaged with British Columbians about raised this issue of open lists and closed lists. The merit of an open list is reduced party control. The merit of a closed list is a simplified ballot.

There were a number of values questions, including one raised by the member for Chilliwack, about: why would you ask if you favour a system that gives more control to an MLA or more control to a party? That’s an example of why we asked questions like that. That question was raised in the engagement. The member will see the feedback from British Columbians about that on Wednesday.

It is definitely one of the issues around putting forward a particular system or systems for British Columbians for consideration or considerations, generally, about the values of British Columbians as they vote in this process. I think the member is going to find the reading of this report on Wednesday very interesting and instructive, as it is based on the feelings and the values of British Columbians around these, frankly, technical questions that reflect values that British Columbians have about how we send people to this place.

[6:10 p.m.]

M. Lee: I appreciate the opportunity here in estimates to go over the amount of technical detail that we have. I think it demonstrates to British Columbians how much there is to consider here. With the discussion that has been held with the member for Prince George–Mackenzie, along that same vein: does the Attorney General believe that a closed list PR system is constitutional under section 3 of the Charter?

Hon. D. Eby: The point of holding the engagement, the point of soliciting feedback from groups that took the time to provide written submissions, was to ensure that the recommendations that went forward weren’t based on my opinions. The recommendations that went forward were based on the feedback of British Columbians. Ultimately, the vote will be on whether we keep the existing system or whether we change to a different system. The vote will be British Columbians’ — not the member’s, not mine. That is the benefit of the referendum process.

I appreciate the member’s questions in terms of any recommendations that I’m going to put forward in relation to the ballot question or questions. The rules around the referendum, the information available to voters, all these kinds of things, will be released on Wednesday. It is based on this engagement process that we’ve been talking about in some detail in which the questionnaire is one part, the long-form answer is another, the panel another and the Indigenous consultation another.

M. Lee: This being one of our last opportunities to have a discussion about proportional representation and the referendum in this House before the House breaks, I’d like to ask a few more questions about this. In a PR electoral system with a candidates list…. Typically between 35 percent and 100 percent of the candidates are chosen by political parties. Would the Attorney General please explain how any kind of local representation for communities across British Columbia could possibly be guaranteed or ensured when political parties choose the candidates on the PR list?

Hon. D. Eby: Two points to the member’s question. One is that instead of a provincewide list, you could potentially have regional lists that could address that concern. But I note that every member in this place currently is affiliated with a political party. So really, the engagement was meant to get at British Columbians’ values around what they wanted to see going forward — concerns they had.

One of the concerns that I’ve talked about I heard in the member’s…. I can’t recall the particular member, whether it was the member for Vancouver-Langara, but certainly a number of his colleagues. It was this concern around ensuring that in any system or systems that might come from the referendum process, rural voices be protected, that rural representation be protected. These are the kinds of considerations the engagement process was meant to solicit and identify to inform the recommendations about how the referendum process should be held, the question or questions going forward and the rules around the referendum process. That’s why we engaged in that process.

M. Lee: In respect of regional representation on party candidate lists, could the Attorney General advise this House as to whether there is any ongoing consideration of introducing legislation before the referendum that would enforce or require local representation on party candidate lists in any form of proposed PR system?

Hon. D. Eby: I’ll recommend my report on Wednesday to the member. I look forward to his feedback on this and any other issues that he identifies in that review process.

M. Lee: In addition to the form of PR electoral system, can the Attorney General advise whether this government will require parties to create candidate lists that would require mandatory gender, sexual orientation, ethnic heritage or any other qualifications?

[6:15 p.m.]

Hon. D. Eby: I recommend my report on Wednesday to the member to address this and any other issues.

I will note that we did specific engagement with First Nations people because there has been an issue in this place of underrepresentation of Indigenous people, though we are fortunate to have a number of representatives currently who represent the communities very well. We wanted to make sure that we were getting those voices. So just in terms of the spirit of the recommendations that are coming forward — to make sure that voices that can be overlooked or missed out or excluded were able to participate. That’s one of the reasons why we did this specific outreach with that particular community.

I’ll also note that the Ipsos Public Affairs demographic group is selected on the basis of identifying individuals who represent the diversity of British Columbia. So the member can have confidence, for the Ipsos panel and for the First Nations consultation, that…. When these matters are canvassed in the report that goes forward on Wednesday, he’ll know where that feedback came from.

M. Lee: Just in respect of the PR system itself, and understanding what might be dealt with in the report or not, can there be a situation where political parties would expel PR list MLAs from the Legislature if they quit their party to join another party or to sit as independents?

Hon. D. Eby: I recommend to the member my report on Wednesday. The member’s feedback on the recommendations that came forward about matters of the ballot question, or questions, and the rules around the referendum process…. I’m sure I’ll have some feedback from you based on these questions.

M. Lee: This next set of questions might be a little topical, but I just wanted to get them on the record here. Can the Attorney General advise this House as to whether any of British Columbia’s recall initiative legislation will be impacted by this referendum?

Hon. D. Eby: There may be a number of amendments required to bring existing legislation into concert with any changes, should British Columbians vote to change the voting system.

Recall is a good example. How would you address recall around someone, if British Columbians had voted in a system that had a regional or provincewide list, resulted from it…? How would you recall someone in that kind of situation?

The Election Act and the Electoral Districts Act and the Constitution Act — there are a number of acts that might be implicated, depending on the system that’s chosen, depending on the direction that British Columbians send us in, in this referendum process. There might be no changes at all, if British Columbians vote to keep the existing system.

[6:20 p.m.]

M. Morris: One follow-up question to my colleague. The minister is responding to a question regarding closed lists and party lists, where representatives in this House will be chosen from those lists by party members. Does the minister feel that that’s in compliance with section 3 of the Charter, where every citizen in Canada has the right to vote in an election for members of the House of Commons or a legislative assembly, or is he suggesting that we need to change our federal constitution in order to accommodate PR?

Hon. D. Eby: I’m sure the member understands that in the current system that we have, in an electoral district, it is a closed-list system of one, where the party puts forward one candidate and then people vote on that candidate that the party has put forward. It is in compliance with the constitution and with the law in British Columbia.

There is definitely a live issue. There was feedback around it in the consultation process, around closed lists or open lists. One of the merits of the first-past-the-post system that its proponents advocate is it’s a very simple ballot. Closed-list systems have a more simple ballot. Open-list ballots — its proponents say this is a more democratic process, and it has more complicated ballots.

There are values at play in both systems. But in terms of the member’s specific question about the lawfulness of it, the existing system is a closed-list system. It is fully lawful, and I see no reason why that wouldn’t be the case for a proportional system on the same basis.

M. Lee: That completes our questions for today on AG estimates, on proportional representation. We propose to continue tomorrow with questions relating to gaming, followed by ICBC and then liquor. Then AG general matters will complete our session tomorrow.

Hon. D. Eby: Noting the hour, I move the committee rise, report progress and ask leave to sit again.

Motion approved.

The committee rose at 6:22 p.m.

The House resumed; Mr. Speaker in the chair.

Committee of Supply (Section B), having reported progress, was granted leave to sit again.

Committee of Supply (Section A), having reported resolutions, was granted leave to sit again.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 10 a.m. Tuesday morning.

The House adjourned at 6:23 p.m.


PROCEEDINGS IN THE
DOUGLAS FIR ROOM

Committee of Supply

ESTIMATES: MINISTRY OF FINANCE

(continued)

The House in Committee of Supply (Section A); R. Glumac in the chair.

The committee met at 2:52 p.m.

On Vote 24: ministry operations, $172,581,000 (continued).

A. Weaver: I just have a couple of questions in two areas to finish my estimates questions to the Finance Minister. The first is in the area of ALR protection.

The ALR was left unprotected from the measures announced in the budget to cool the market for the residential real estate sector, which has encouraged speculation in ALR. My first question is: why didn’t the foreign buyer tax and the speculation tax apply to the ALR? Why was, for example, foreign ownership not restricted to the ALR, like has been done in areas across Canada, including Alberta, Saskatchewan, Manitoba, Quebec and PEI?

[2:55 p.m.]

Hon. C. James: Thank you to the member for the question. I think there are two pieces I just want to focus on.

The first one is that, as the member will know, there’s a comprehensive policy review going on with the Minister of Agriculture right now in looking at a whole range of issues related to agricultural land. We’re doing our policy work — side by side, I guess, is the best way to describe it — along with the work that’s being done in the Agriculture Ministry. We don’t want to either get ahead or be duplicating work that’s going on.

As the member will know, there was a large consultation done, so people were giving their feedback. To look at further work that needs to be done around the agricultural land, we’re doing that policy review, as I said, along with the Agriculture Minister.

I think it’s important to note that both the foreign buyers tax and the speculation tax do apply to houses, to the residential property that’s on agricultural land. I know the member’s speaking about a broader base when it comes to the agricultural land, but in fact, those taxes do apply to the class 1 residential housing that is on agricultural land if they’re in the areas that are covered by those taxes.

A. Weaver: Yes, indeed. I was concerned about the broad, bare land of agricultural land that can be purchased that does not have a foreign buyers tax. Then Richmond council can be approached, and that land could then have a mega-mansion put on it, which was the subject of the concern being expressed here.

In the budget, the minister stated that she’d be changing the tax treatment of residential property in the ALR in order to close property tax loopholes. My question is then: how are you changing property tax treatment, and when can we expect to see this done?

Hon. C. James: We’re looking at the changes. These are draft changes to the School Act to exclude ALR properties that are in the residential property class from the 50 percent land exemption. We’re going through that process right now, again, as I said, in tandem with the work that’s going on in the Agriculture Ministry. This would require changes, so we certainly hope it’ll come by the fall.

A. Weaver: Again, the review. We’ve been talking about the review, and the Minister of Agriculture is indeed undertaking such a review. But in fact, we’re not waiting for the results of the review before changing the tax treatment on residential property.

[3:00 p.m.]

We know what’s happening in an ongoing fashion in Richmond is that the speculation and mega-mansions are devouring ALR there. For example, last year Richmond lost 50 farms due to mega-mansions. We can’t, frankly, afford to wait a year to see more action.

Why are we not taking immediate steps now to impose the foreign buyers tax and the speculation tax on the ALR land? What is stopping the minister from doing that?

Hon. C. James: I certainly appreciate the urgency of this issue. I appreciate the examples that have come forward, particularly in Richmond, as the member mentions. They are issues right now and challenges right now. But there is, as I said, the comprehensive review going on. We need to make sure that…. Many of these changes have to happen through different acts, not through one act.

For example, the changes to the school tax related to the school tax on agricultural land also have to be changes to the Assessment Act. Again, we don’t want to piecemeal it. We want to make sure that the changes we make are really going to make a difference. That’s why we’re working together with the Agriculture Ministry.

There is an opportunity, hopefully, in the fall to bring forward those changes, to have coordinated with the feedback that people gave and to be able to make a comprehensive change that will prevent the kinds of examples that the member has raised.

A. Weaver: I’d like to pivot to the issue of beneficial ownership and bare trust, a key issue and aspect of both the B.C. NDP and the B.C. Green election campaigns. As the minister will know, I’ve been calling on government, both past government and present government, to close this loophole for years now.

In this budget, we’ve taken some steps, which I recognize, requesting more information about beneficial ownership on property transfer tax forms, as well as establishing a beneficial ownership registry. But we need to do more than this, frankly. Rather than just collecting information on the beneficial ownership, we need to take steps to actually close the loophole, as was done decades ago in Ontario in direct response to seeing some shenanigans occurring in the real estate sector.

We know that the market has already discounted this, and the market had expected government to announce that the measures would have been taken in their budget.

I have two questions in this regard, and then I’ll conclude. What information are we currently collecting about beneficial ownership on PTT forms — that’s property transfer tax forms — and what additional information are we collecting now? When do these changes come into effect, and what are the purposes of collecting this additional information? What do you expect the impacts to be from gathering this information?

[3:05 p.m.]

Hon. C. James: Thank you for the question. This is an issue that the member has been raising for a while, and it’s certainly a piece that we’re keen on moving on. I think there are some lessons to be learned from the Ontario example, where Ontario, again, didn’t do the collecting of the information so had some challenges when it came to implementing the tax that they’re looking at.

We will be starting, as the member has said, with changes coming in the fall on information that’s collected. The best way probably to describe it is it’ll basically be look-through rules, so it will provide an opportunity for us to look at the owners of the land, regardless of what structure they’ve put in place. All that information will be held by the Ministry of Finance.

We will be bringing in, as well, information-sharing rules that will be put in place, particularly with the CRA, so we have the immediate opportunity to be able to look at tax loopholes or tax fraud if it’s there. That’ll give us a chance to be able to do that. Then, when we have the information, that gives us the next step to be able to look at. Whether it’s Ontario or other jurisdictions or other ideas and approaches, it’ll give us an idea of the challenges and the ability to be able to determine further action.

A. Weaver: To be fair, I frankly don’t think that’s good enough. We are, right now, proposing a speculation tax, which is causing chaos in the real estate sector because we don’t have information, and we’re making exemptions as we move along.

[3:10 p.m.]

We have a clear understanding of what the bare trust loophole is being used for in residential property. We know you don’t have to go and collect data to know exactly what’s going on. Talk to realtors. Talk to commercial developers. Talk to bankers. Talk to accountants.

We know that properties are being purchased in trust. Those shares are owned by a corporation, and those corporation shares are flipped and switched. We know that that’s happening with offshore companies as well, and we know that that is fuelling the speculation that we truly want to deal with in the housing market.

The spec tax is not dealing with speculation. The spec tax is a paper wealth tax. Whereas a measure that we could take to actually deal with speculation, a measure that was dealt with in Ontario…. I’m told it was dealt with in Ontario precisely because of concerns about money laundering that was happening at the time in the housing market there in Ontario. The tax went on to the beneficial ownership transfer.

It is critical. You buy a home, a mega-home. You buy it for, say, $2 million in a trust, and you can flip that five times. You can launder money in this flipping, and there is no record. You’re collecting information, sure. But there’s property transfer tax avoidance, which should be there to discourage this behaviour.

Now, the bare trust existed…. There are reasons historically why it was important to have these properties in trust, particularly in commercial properties. But it is being abused in the residential market.

I’ll conclude, then, by saying I don’t think it’s appropriate not to close a loophole now. I think we have a measure to truly deal with speculation right now. The Attorney General, the member for Vancouver–Point Grey in opposition, pointed this out. The government said they would do it. They campaigned on doing it. Here we are a year later. We’re collecting data about hypothetically doing it down the road while implementing, at the same time, a speculation tax that is actually not dealing with speculation.

So it’s a plea. Why is the minister not standing up and closing this loophole that is being exploited right now in British Columbia and is leading to speculation — instead, taking the steps to introduce a tax that doesn’t actually deal with speculation but instead conflates two issues? One is the issue of satellite families; the other, the issue of vacancy.

[3:15 p.m.]

Hon. C. James: I appreciate the member’s urgency around this. We feel the same urgency, but we also want to make sure, as I said, that we provide the opportunity to really get at what we need to get at and to get at the individuals we need to get at. As the member has described well, there are all kinds of discussion out there. There are all kinds of people talking about examples that they know of where people who are very sophisticated at tax planning are utilizing these opportunities.

What we’re doing first is figuring out who owns what. That’s a critical piece because right now there isn’t a registry in place. There isn’t an example in place that gives us that. The work we’re doing right now will help us to do that. It’ll help us to build a registry to determine who’s incorporating where. It’ll require people, when they incorporate, to actually register that. So again, we’ll have a tracking around where things have occurred, where people are utilizing the opportunity to be able to avoid paying the correct taxes.

Then the next step, obviously, is to take action. But this will still give us the opportunity to share that information with the CRA and go after existing taxes that are not being paid. I don’t want the member to believe that this does nothing. In fact, it provides us with the opportunity to share that information with the CRA to be able to deal with taxes that aren’t being paid now or opportunities that people are trying to utilize to not pay taxes now. This will give us a chance to do that by the fall.

Further steps then can come after we’ve got the registry in place and we have the opportunity to address it.

J. Isaacs: I have received an email from a daycare provider who is the operator-owner of five different daycare facilities. She reluctantly opted in because she had a very significant investment at stake, having opened up and built five different facilities. She needs to make sure that the revenue stream is coming through so that she can pay, obviously, her operating costs and the costs of her expansion. She had a telephone interview a few weeks ago regarding her submission to opt in and was told that she would know by the end of the week.

The following weekend she received three payments of approximately $13,000 each into her bank account. How­ever, she did not receive notice that her submission to opt in was approved. So of course, she called the ministry’s office and was told that her submission had not been approved, that there was a glitch in the system and to hold off spending the money because it may not, in fact, be her money.

She checked with a few other operators, who also received money even though their submissions to opt in have not been approved either. She was going to get a call by the end of the week, from yet another adjudicator, to let her know what her status was. However, she did not receive a call.

I’m wondering if the minister can advise how many daycare operators may have been paid in error and what steps the ministry is doing to assure that the funding to daycare operators is being allocated properly. And how will the ministry recoup the money that’s been overpaid, especially to operators who may not actually get approval for the fee reduction?

Hon. C. James: I appreciate the member raising the issue. I know that the member realizes this is an issue with MCFD, but I think the concerns are obviously around accountability. If the member provides the information, we’re happy to do a follow-up with the ministry.

S. Bond: Well, I certainly hope…. I understand that it may well be another ministry. But when money is being sent out to people whose programs haven’t been approved and they’re having to call the government to say, “Is this my money or not?” I would suggest that’s a very significant problem.

[3:20 p.m.]

I would certainly urge the Minister of Finance to encourage her colleague or somebody to get back to child care providers and make sure that, hopefully, that isn’t being repeated in other communities and other child care centres.

I want to just go back to a topic that we discussed last week. I want to do a bit of a recap and ask the minister if she’s made any progress over the week that we’ve been out of the Legislature. I, like other members, I’m certain, have heard from, literally, virtually every organization under the sun about the impact of the employer health tax. Last time we were here in estimates, we asked the minister if she had made a decision as to who would receive reimbursement, to what degree. So a week later, work being done, chaos on the landscape about this tax and the concerns that people have.

A straightforward question to the minister. Has she made a decision, after all of these months, about who will receive some form of reimbursement?

Hon. C. James: As the member knows, I just answered those questions in question period. I’ll answer them again for the members. We are continuing our discussions to ensure that we have all the information from the various groups and organizations. There are a number of different examples of some groups that are paying MSP, some groups that are paying partial MSP. So we’re making sure we have all that data, and the decision will come out before the summer.

S. Bond: I find it very difficult to believe that with the massive amount of input that this minister has had — and every one of her colleagues and, certainly, my colleagues — the minister has not yet formulated a decision around this. I think one of the biggest concerns we have is the uncertainty this is causing for organizations right across British Columbia, in particular the non-profit sector.

I cannot imagine why the minister, as others would want to see happen, would not want this issue resolved for those organizations as quickly as possible. So I’ll ask the minister again. She says she has not yet made the decision, yet today she referenced the fact that that information would be made public before the summer. Can the minister give us and give businesses, give non-profits, give British Columbians some sense of certainty about when she will clear up the confusion and concern that has been created by this tax?

Hon. C. James: The member can ask as many times as the member wishes. I’m going to give the accurate answer, which is this: before the summer, I hope to finalize the details and be able to get that information out.

I’ve spent my time when we’ve had the break weeks talking to groups and organizations, working with not-for-profits, talking with officials, through my staff, as well as with officials at school boards and universities. We’re making sure we have the information. We’ve been sharing that information. I certainly am well aware of the issues when it comes to not-for-profits and charities and when it comes to other groups and organizations. As was stated in the House today by the Minister of Education, as well, you have seen school boards passing balanced budgets.

Let’s remember that the employer health tax takes place in January of 2019. We will have responses before the summer.

S. Bond: While I respect the minister’s answer, it’s not me asking the question over and over again. It’s the fact that we have been absolutely inundated with requests from people to simply say: “At least give us the answer. Allow us to do our budgeting. Allow us to sort out this issue.”

The minister today, once again, dismissed the concerns of small businesses in British Columbia. Can the minister reconcile for us how she said that the majority of B.C. businesses would not be impacted by the employer health tax, whereas today we have credible businesses, with accountants and people who do the math, say to this minister that the majority of small businesses would be impacted?

Could the minister please reconcile her statement that in fact it would not be a majority of businesses, yet today, once again, we have long lists, hundreds of businesses which have laid out for this government their numbers, saying they are going to be impacted? Does the minister simply believe those businesses are not telling the truth?

[3:25 p.m.]

Hon. C. James: As I said when we received the survey, I appreciated the feedback. I’ve certainly heard feedback across the province. I’ve taken the time and the opportunity to meet with businesses, to meet with business groups. I was up at the B.C. Chamber of Commerce event speaking to businesses there over the weekend, and I will continue to do that. It’s part of my job and should be part of my job. Businesses are obviously a large part of our economy in British Columbia, and it’s important to listen to businesses.

I think it’s also important to note that this is a survey, and this is a survey that 249 businesses took part in. They self-selected to be able to take part in the survey.

We use Ministry of Finance data, which is all companies in British Columbia. As I’ve said often and will say again, 85 percent of businesses will be exempt with payrolls of $500,000 and under. It is, again, the lowest payroll tax rate across this country. It provides opportunities, as I said, to make investments in health care, in housing and in child care.

I think the survey also done by the Greater Vancouver Board of Trade…. I think it’s important to note, as well, that both of those organizations — the Vancouver Board of Trade and other organizations, including the chamber — have set housing and child care as priorities for them as organizations, because they believe that those are critical issues to be addressed to make sure that businesses have the opportunity to recruit and retain.

Again, we have the information. I thank them for their survey information, but I think it’s important to note how the survey was conducted.

S. Bond: Well, thank you very much. We won’t trade comments about surveys, because I think there’s one around proportional representation that we might call into question with the very comments that the minister has made.

To summarize on this topic, first of all, the panel advised against the minister taking on this approach. She ignored that. I would also suggest the 259 businesses probably have some pretty talented people who are doing the math, so I think we can rest assured that their information is accurate.

I can probably summarize on behalf of, certainly, the people who have made their voices known that they don’t like this tax. It was a surprise, it will have a significant impact, and like it or not, despite what the minister said, small businesses will be hurt by this tax. The message is clear. They’re asking the minister to fix the tax. So you know, I think that pretty much sums up the input that I’m sure the minister has had the majority of.

It’s unfortunate that she’s chosen to continue to take additional time when people are very concerned about this, in particular the non-profits. The minister would remember that I asked her when we were last here in estimates to say on that day that she would fully keep non-profits whole or exempt them, and the minister chose not to do that.

We’ll be waiting, and we’ll continue to ask the questions as many times as it takes to get the minister and this government to look at the impact that this tax will have on small businesses in British Columbia. Those are just the facts. It’s our job as well. The minister talks about her job. Our job is to hold the government to account for a tax that was a surprise and that is going to hurt small businesses in British Columbia and is certainly going to have a significant impact on non-profits who were completely blindsided by this.

I want to speak about one other tax for a moment, and I know the minister is aware of it. She’s spoken about it briefly. One of the interesting footnotes in the budget is something else that’s caused chaos in the land, and that would be the MRDT.

[3:30 p.m.]

The footnote basically caused the tourism industry in British Columbia to be concerned throughout the last week. I certainly have heard a number of presentations from local tourism organizations and others about the minister’s surprise decision to expand the mandate of the MRDT.

I would like to ask the minister who she has met with in the tourism sector and what concerns they expressed to her about this tax.

Hon. C. James: Just to be clear, for those who are listening or watching, about what the changes were to the MRDT, it was basically an enabling opportunity for municipalities and the tourism industry. If they felt that the crisis in the housing market was causing them difficulties, if there were opportunities for them to come together and make a determination about utilizing resources related to the tourism industry for housing, that opportunity would be there for them.

The example that I would use would be the community of Tofino, which has had a real crisis when it comes to housing for the people who work in that industry. There is absolutely no housing available. That obviously causes difficulty for tourism operators who can’t operate without staff and can’t operate without individuals to be able to live in the community. So that’s an example where Tofino said: “What if we had conversations around the opportunity?”

There will be increased dollars, as well, around the MRDT coming in, because of the changes to Airbnb in the agreement and, hopefully, soon to come, further work being done with other organizations, on-line accommodation providers. So this is enabling.

I’ve met with representatives from the tourism industry. I’ve had those conversations and talked with them about the fact that this would have to be an agreement and support provided by the two parties. Municipalities are well aware of that. There have been a number of municipalities that have already come forward, including my home community of Victoria, to say: “This isn’t something we’re interested in.” That’s the reason it’s there as enabling — to provide the opportunity for those good conversations to go on.

I certainly believe that the MRDT has been a very effective tax — previously known as the hotel tax, if people are wondering what we’re talking about. It’s been a very effective tax, and it’s provided an opportunity for tourism operators along with municipalities to work together on spurring on the tourism industry. So it’s been very positive. This certainly isn’t going to change that.

Those municipalities and tourism operators aren’t all of a sudden going to not decide that they should have conversations about how to spend those resources because there’s an enabling opportunity. It provides them an opportunity to have that conversation.

[3:35 p.m.]

S. Bond: I think the tourism industry will be very surprised with that answer, particularly the part where the minister referred to the fact that this tax would be previously known as the hotel tax.

The minister knows full well it is a hotel tax. Not once in her conversation has she actually talked about hoteliers, about the very people who have to give approval. The municipality and the tourism operators actually have to work through a process that gets permission from hoteliers.

The hotel tax is agreed to by hotels in British Columbia, hoteliers using it on the understanding that it will be used for tourism marketing in British Columbia. In this answer, the minister has cut out the hoteliers and also renamed the tax. It is a hotel tax, so the minister should not underestimate the degree of concern about the footnote in the budget that is related to the MRDT.

Is the minister suggesting there is a way now for the tax to be collected without the approval of hoteliers?

Hon. C. James: You know, unlike the member across the way, I don’t believe everything has to be a disagreement. Unlike the member across the way, I don’t believe that everything has to be a fight about everything.

In this example, there is an opportunity for the people who are involved with the MRDT, which is the name of the tax…. It previously was called a hotel tax. Yes, it involves hotels, and it involves people from hotels paying tax. But the name was changed to MRDT. This is an opportunity for them to come together — for the hotel providers, for the tourism industry, for municipalities, for others who are involved in the industry to come together and have a conversation.

It’s a short conversation for many communities because there aren’t opportunities to be able to utilize the dollars for housing. There aren’t opportunities to be able to do that. But I’m not sure why the member would be against providing an opportunity for the parties to come together to have a conversation about whether they could provide support, further support, to the tourism industry. That’s the whole purpose of the tax. It’s to provide an opportunity for hotels, for others involved in the tourism industry, for municipalities to come together to have those conversations, and I trust them to have those conversations.

S. Bond: I think the minister knows full well that this isn’t about having an agreement or a disagreement. This is about the rules around how a tax is collected in British Columbia. The rules require hoteliers to provide support.

The minister has not met with hoteliers about their concern, and the minister is quite comfortable in this room talking about support for tourism. The tourism industry is saying loudly to this minister: “We do not want this change to be made.” The only community that this minister has referenced every single time this answer has been asked is Tofino.

If there is a giant group of organizations who want to see tourism marketing dollars go to the building of affordable housing, I think it’s time the minister tabled those communities and we had an honest discussion about the information.

The message from the tourism industry, received loudly for the last number of weeks and months, has been: “We don’t like this change. We would like the minister to reconsider it.” This isn’t an MLA standing up and wanting to have a disagreement. It’s bringing the voices of the tourism sector to this chamber to have their questions answered. If the minister has a list of communities that think that the tourism marketing dollars should go to build affordable housing, we would ask that she share those names so that the industry has a sense of where this decision came from.

Hon. C. James: I’d just remind the member again that this is voluntary. This is an opportunity, if the parties choose, to come together and have a conversation.

T. Redies: I just would like to advise the minister that we’re now going to be moving to questions around ICBC, if you would like to change out your support staff. Does the minister need some time to do that?

Interjection.

T. Redies: All right.

[3:40 p.m.]

Well, there have been many, many discussions about ICBC in the paper, certainly over the last few months, and there’s no question that ICBC’s facing some very strong headwinds that require action to be taken on the part of the government. Certainly, the previous government understood some of those concerns and actually implemented about $3 billion worth of initiatives to try and keep rates affordable for British Columbians. We’d like to talk a little bit about the go-forward with the minister — in particular, the forecasts, which certainly generate a lot of questions for us.

Before we start talking about forecasts, I’d like to ask the minister to speak to the current situation with the EHT and ICBC. In particular, can the Minister of Finance tell us what ICBC is currently paying in MSP costs, what they will be paying in the employers health tax and what the difference is in costs that ICBC will be paying as a result of the EHT?

Hon. C. James: I don’t have all the information here, but I can get the information for the member.

S. Bond: Well, thank you. There is going to be a series of questions here about ICBC, so I would hope that the minister has access to some of that information.

It seems odd, at least, that a corporation that, as we look at the challenge it’s facing fiscally…. One of the primary issues with the EHT is that it’s a payroll tax, and that’s regardless of whether the company is making money or not. Could the minister make a comment on that?

Hon. C. James: I don’t think there is a comment to be made. The members can certainly question the Attorney, who’s in estimates as well, on the specifics around ICBC and staffing, etc. But the employers health tax, as the member knows, is going to be paid by everyone, and we’re looking at the supports that are needed for various organizations.

S. Bond: Well, if we look at the Finance Ministry’s responsibility and the MSP premiums, the minister takes all of those questions and also the employer health tax. Perhaps the minister can tell us: what will the overall costs of both of those be when they are charged simultaneously in 2019 at ICBC?

Hon. C. James: Again, as I said to the colleague, I will gather that information and get it to the members.

S. Bond: Perhaps the minister can, then, at least tell us: have the costs been booked in the government’s fiscal plan?

Hon. C. James: Just to remind the member again, the EHT takes place January 1, so it’s three months of this fiscal and then moves into the next fiscal. As we make the final decisions, revenue estimates will be built into the budget, will be determined, and the member will have the opportunity to see those just as others do.

[3:45 p.m.]

S. Bond: Okay. Let’s take a look at fiscal outlook in Budget 2017-2018, then. Can the minister confirm that in Budget 2017 and the budget update of 2017, that ICBC’s forecasting was done showing a 12-month period?

Hon. C. James: As the member probably knows, ICBC was transitioning the year to match up with the fiscal year, which meant that they had a transition year last year, in 2017, and were required to include 15 months. That was required by their auditors. So that was a requirement.

We also, in the service plan, made sure we included the 12 months. ICBC’s service plan, which is also part of the budget, included the 12-month information. It was clear to people that this was a transition year, that they were required because of transitioning to the fiscal year to include the 15 months.

The 15 months showed a $913 million deficit, and the 12 months showed a $612 million deficit.

S. Bond: So the minister is confirming that in Budget 2018 documents ICBC is shown to have a 15-month period of time. Perhaps the minister can give us a bit better explanation as to why it was a 15-month period of time, why the decision was made to do that, and if she has concerns about the fact that a year-to-year comparison is pretty difficult when you have 15 months and 12 months. There are a lot of people paying attention to this file, and it is very difficult to track. And what about the issue of transparency?

Could the minister give us a better explanation of the move to 15 months in Budget 2018, the issue of transparency, and if she has any concerns about the fact that it makes a year-by-year comparison very difficult?

[3:50 p.m.]

Hon. C. James: I’m glad the member raised the issue of transparency, because I think that is critical, and part of transparency is that comparison of budgets year to year. That is a challenge and was a challenge with ICBC. Because they worked on a calendar year and not a fiscal year, it was very difficult for the public.

We — meaning government, the previous government and this government — would have received quarterly reports from ICBC, so the opportunity was certainly there each quarter for government, whichever government was in place, to look at comparisons and to make sure that they were looking at calendar versus fiscal. That work was certainly done each quarter. But for the public to take a look at comparisons, usually the public likes to compare year to year.

The decision was made in the summer of 2016 by the previous government to move ICBC to a fiscal year rather than a calendar year, agreed to by both ICBC and the previous government. In order to do that, they needed to look at the transition. The transition involved a 15-month time period, because you had to start in January 2016, which was their calendar year, and go all the way through to the fiscal year, which was March 31, 2017. This is through generally accepted accounting principles, as the member would know. A clean audit was received during that time period.

Again, this is actually more transparency for the public to be able to make those kinds of comparisons. Then, as I mentioned, we also included in the business plan for ICBC the 12-month comparison so the public could see it there as well.

[3:55 p.m.]

T. Redies: We’d like to move to some of the forecasts now. I wonder if the minister could take us through how forecasts are done, in general. In particular, how does the minister verify forecasts? Does the minister accept what she gets? Are the numbers challenged, and if so, how? What verification does the ministry staff do with the Crown forecasts? And how does the minister satisfy herself that the numbers supplied by the Crowns are accurate?

[4:00 p.m.]

Hon. C. James: Just back to the issue of the transparency and the 12 months versus the 15 months. If the member wants a little more detail, they can look on page 140 of the budget, on table A9, which has the descriptor of the 12-month that’s listed there as well. I just wanted to make sure that I closed that off from the last question.

The member asked about verification. How do we verify? How do we accept the numbers that come forward? What kinds of challenges do we put forward? I think that I’ll just mention a few areas and then refer the member to the budget document as well, because there’s a fair bit of information in the budget document.

ICBC forecasts are reviewed every quarter as well as reporting the actuals to the Ministry of Finance and to the ministry involved — the Attorney General, who has responsibility for ICBC. Every quarter they get together — that would be Finance, AG and ICBC — to go over the numbers, to go over the quarterly numbers and to take a look at the forecasts. Through that process, the Ministry of Finance as well as the Attorney General go through the process of challenging the numbers that are coming forward, looking at the assumptions, looking at the forecasts, in a whole number of areas.

As I said, I will refer the member to pages 60 to 64 in the budget, where we actually identify the areas that we took a look at and that we continue to take a look at — everything from the rate of crash injuries, the basic insurance crash rate, the average injury cost claims. All of those areas are examined. All the trends are looked at. The risks are taken a look at. The historic numbers are taken a look at. And those are pieces that are ongoing.

Does that information come back up to me as the Minister of Finance? Yes, it does, and in fact, more so. Obviously, this was not something that I certainly expected as a Finance Minister. It was not something that we had seen in the budget, so it’s something that I’ve spent a fair bit of time looking at, learning and examining the numbers that are there, questioning the numbers that are there and questioning the trends that are there and the work that needs to be done to try to address it on behalf of the shareholders of ICBC — basically, the people of British Columbia.

I can give more detail if the member wants, but there’s a lot of detail, as I said, in that section of the budget as well.

T. Redies: Thank you for that answer, Minister.

I’d like to turn now to the September budget update and the predicted $225 million loss. I presume that that $225 million went through the same verification process that the minister spoke about. Interestingly, in July 2017, the NDP went public with the E and Y report on ICBC, which suggested that the Crown needed to raise premium rates by 30 percent.

My question is, first: has the minister read this report in detail? And can she speak to how E and Y arrived at the 30 percent? Was it 30 percent in one year or two years?

[4:05 p.m.]

Hon. C. James: When I was taking a look at putting together the September budget update and taking a look at the ICBC numbers, because that was obviously a critical piece of looking at the budget, it was clear from the report — and this is information that’s been out there already from the Attorney — that the previous government had book savings in ICBC, and there was no specific plan for those savings.

So out of caution, because there was no specific plan…. Certainly, my view as Finance Minister and our government’s view is that without a plan around those savings, and without any example of work that would be coming, those savings were removed. I removed those savings for the September budget update, reviewed all the forecasts of ICBC and went through that process.

Now, I think it’s interesting to note the member mentioned the Ernst and Young report. It’s important to note that in that report, it made it very clear that the deficit in the report was identified, by 2018, at roughly $1 billion if there were no major changes that took place and $1.1 billion by 2019, which is pretty close to the numbers that we’re actually at.

T. Redies: Thank you for that answer, Minister. It’s kind of a curious answer, because the E and Y report came after the previous government booked those savings. I guess what I’m interested in is why after…. When you get a reputable consultant that’s been commissioned to look at E and Y — who, by the way, indicated that ICBC would need to raise rates by 20 percent in one year, which would be the equivalent of about $990 million, based on the 2016 numbers….

My question is: with all this information in front of the minister, why did the Ministry of Finance go forward with only a $225 million forecast? I mean, surely that would have raised some alarm bells. Was ICBC telling the ministry that they could contain the loss to $225 million?

[4:10 p.m. - 4:15 p.m.]

Hon. C. James: Just to walk through kind of the chronology. I guess that’s the easiest way of putting it. If we take a look at the August public accounts and take a look at the issues that were identified as risks, I certainly talked about ICBC at that point, just gathering the information — I think I’d been Finance Minister for a month by that point — taking a look at the challenges that were there.

As I said, based on the Ernst and Young report, it was very clear that savings had been booked that didn’t have a clear plan. So in the September budget, the first step, in looking at the numbers and doing the examination around ICBC, was to make sure that that was accounted for. That’s why you see the change that occurred in the September budget. We then did, obviously, continue the in-depth work that I talked about before, looking at the trends, looking at the crash numbers and looking at the rates. It was very clear — you saw that in the November quarterly report and then coming forward in February — that it continued to deteriorate. Those were the numbers that were built into the budget.

T. Redies: Minister, were you aware that the AG said on February 1, 2018: “The projections that I initially got from ICBC were in the neighbourhood of a $300 million loss for the year”? In fact, he goes on to say: “The board and I sent them back and said: ‘Tell us exactly the financial position on open files that you have.’”

The AG also indicated on July 25, with Metro news, that there is “a grave financial crisis at ICBC.” The article goes on to say that the AG says: “Even with the rate increases announced today, the projected losses for ICBC next year are in the hundreds of millions of dollars.”

[4:20 p.m.]

Back to the minister. You have a reputable accounting firm that is indicating $1 billion of losses. The AG is indicating up to hundreds of millions of dollars. My first question would be: do the AG staff and the Ministry of Finance staff talk? If it was $300 million, why was a $225 million loss indicated in September? Then again, with all of these various numbers flying around and this verification process that the minister talks about, why was only a $225 million loss predicted at that point?

Hon. C. James: Again, I’ll go through the chronology because I think that’s the clearest way to describe my responsibility and my obligation as Finance Minister. The first piece that was clear when the information came forward from ICBC was that the February 2017 budget had booked savings for ICBC without a plan in place. From my perspective as Finance Minister, to have no plan in place for savings and to book those was not the fiscally prudent thing to do.

The first opportunity I had, which was the budget that came forward in September, the budget update…. It was to remove those savings until there was a plan in place, until we had a plan around addressing the challenges that were there. I then continued on my work — as due diligence, as I do with other ministries and as I do with other Crowns — to do the further work that needed to be done, ongoing, to look at the analysis that had to happen.

[4:25 p.m.]

We brought the actuary in to make sure that we did the examination that needed to occur. By November, two months later, you saw a further deterioration in the budget, and that was built in again for the public. Between November and the February budget, again, the continued work that I talked about earlier, the due diligence that we continued to do earlier was done, and then I brought my numbers forward.

That’s the responsibility that I had and, certainly, the due diligence that I felt was the responsible thing to do on behalf of not only the shareholders of ICBC to get our public auto insurance back on track but also to make sure that the transparency was there for the public.

S. Bond: Well, thank you very much. Certainly, in some of what of the minister has reflected on…. We’re not disputing that. The question we’re asking is about a conscious decision to put a number in the budget when there appeared to be some contrary indications about that number.

The Attorney General didn’t stop there with the references that my colleague made. In fact, on June 24, he said: “ICBC, as described to me by senior bureaucrats, is on the path to insolvency.” The $225 million loss forecast that was put in the September budget doesn’t really seem to imply insolvency. If anything, it suggests that actually ICBC might have been on the path to recovery. When we think about the confusion we’ve heard…. You know, we’ve seen a report that suggested a far more significant challenge. The AG, himself, is commenting on a number that is much larger.

Can the minister explain how she consciously decided to put a number in the budget which, when you look at other information that apparently she’s reflected on the fact that Finance was talking to the AG’s office…. With that kind of information that she was aware of, why did the minister consciously choose to put the number 225 in the budget?

Hon. C. James: Well, I’ve answered that question. I talked about the information that I was gathering. I talked about the decision by the previous government not to have a plan in place around savings. Therefore, those dollars were removed from the budget in the September update.

If the member takes a look at that three years, I had predicted that it was going to continue to deteriorate — 225 in the first September budget update, 302 in the next year, 411 in the year after that. That was the three years that we were looking at. I’ve already spoken to the process that I went through to get to those numbers.

T. Redies: Minister, the process seems like it needs to have a bit of work done to it, because again, the confusion that we’re talking about that seems to be between the Ministry of Finance and the AG department as to what was actually happening at ICBC continued on into September. On September 7, the AG was quoted as saying: “The revised projections for next year’s losses is almost a half-billion dollars, a $454 million loss.” He said that September 7, I think, two weeks before the minister released the budget.

If this was the case, again, what we’re trying to get at…. We’re not talking about the savings that were booked by the previous government. We’re asking: why did this Minister of Finance, with all of this information suggesting that the losses were going to be much higher, sign off on a report that indicated the losses were only going to be $225 million?

Hon. C. James: I’ve spoken to that. I’ve spoken to the information that I received. I’ve spoken to the further work that was done after the September update. I’ve spoken about why the numbers were in there.

[4:30 p.m.]

T. Redies: Did the minister or her staff have any conversations with ICBC or the Attorney General’s staff, and could she explain the differences in numbers in terms of the projected losses for ICBC coming out of the AG’s office and her office?

[R. Kahlon in the chair.]

Hon. C. James: Well, again, I’ve spoken to this issue. The official numbers that are in the document are the numbers that I’m responsible for. We identified the trend, as the member has talked about, the comments that were made around the deterioration. That was identified, in fact, in the budget.

I talked about the three-year forecast, which was looking at a further deterioration. We continued to meet — as I talked about earlier, when I looked at the due diligence — with the Attorney’s staff and our staff. That’s part of our job, along with ICBC — to look at the trends, to look at the deterioration and where it was going.

S. Bond: It is certainly part of the minister’s job. With that in mind, did the minister at any point before the September budget…? Was she aware that the budget losses at ICBC had the potential to be significantly higher than $225 million? Was she aware of that? Did she know that? And if she did know that, would it have impacted the spending plan, for example, that she outlined in her September update?

The question is: did the minister know, based on all the information, comments and the conversations between the two ministries, that the potential loss at ICBC was going to be higher than $225 million?

Hon. C. James: Again, I’ll just run through the work that was done.

I think the most important piece to recognize in the September budget was the removing of savings that were booked without a plan. If we’re looking at prudence in a budget, to have savings booked with no plan in place, no work being done on a plan, shows the real challenge. The first piece was to remove that. The first opportunity I had as Finance Minister was to remove that, as prudence for the September budget update.

The second piece is — and the member will know this, because she’s been at many of the presentations and certainly read the budget documents — ICBC has been flagged as a risk since I became Finance Minister. I have included it as a risk since I became Finance Minister. It has been flagged in there.

[4:35 p.m.]

That’s why you see built into the budget, both the September update as well as the February budget, prudence, whether we’re talking about forecast allowance, whether we’re talking about contingencies. There were dollars built in there because of the challenges with ICBC, because of the work that needed to be done.

We then did our due diligence. I talked earlier about the risk factors, looking at the risk factors, making sure we were looking at the rising injury claims, making sure we were looking at the number of crashes, looking at the costs of minor injuries, major injuries, etc. That was all the work that occurred. We brought the actuary in, again, to make sure we looked at that.

Then in November, when we’d done that due diligence, we, as you see in the November update, increased the number again because of the numbers that were continuing to rise. We did our due diligence as we went along.

T. Redies: I think if there had been proper due diligence done, there would have been a higher loss forecasted based on all the information the minister was getting.

What I would like to confirm from the minister is: did ICBC provide the $225 million number? Or did the Ministry of Finance make any changes? If ICBC did provide that number, what was their confidence level in terms of being able to hit it?

Hon. C. James: The number that appeared in the September budget was the number that was signed off by the ICBC board and by their audit committee. Obviously, those are their numbers that came forward and numbers that, again, we included in the budget.

I think it’s important to note, as well, as part of the September budget update and as part of my presentation of that budget, I was very clear that I felt that there were further risks that could be coming forward with ICBC and that we were going to do our due diligence. That’s what happened.

T. Redies: Yes, the due diligence that you’re talking about just seems to have some holes in it. The minister accepted what ICBC had put forward, yet there were all these other very capable people indicating that the losses were going to be much higher. The minister has already talked about the change in November. We suddenly have, going from September to November, an update that the losses have gone to $364 million.

To the minister, how did she feel about this change? It was obviously a marked difference between what management had forecast and her ministry had verified. Did the minister change her verification process? Did she ask management for more supporting information or documentation as to how they arrived at this? Could the minister explain to us how comfortable she was at that time with the information she was getting from ICBC?

[4:40 p.m.]

Hon. C. James: A couple of pieces I just want to emphasize again that I think are important. One is the fact that since becoming Finance Minister, I don’t think there’s a speech, a presentation, a PowerPoint, a presentation to our rating agencies, a presentation to the public, to the board of trade, to chambers of commerce — I’ve done a number of these — that has not included ICBC as a risk. All of those presentations have included ICBC as a risk. Was I concerned about the risk that ICBC was? Yes, I was. I was very concerned. Absolutely, I was concerned. It’s exactly the reason that it’s included as a risk in every one of those presentations.

Was the importance of doing our due diligence as Finance Ministry critical and top of mind? Yes, it was. I couldn’t give the member the list because it’s probably too numerous, the opportunities, to be able to do the digging that needed to happen, to get the actuary in there to make sure that we were verifying the numbers. That’s work that’s been going on since September. I was Finance Minister for less than a month at that point.

[4:45 p.m.]

That’s part of the reason that, as the members know, in the budget, we built in forecast allowances. We built in contingencies. That’s what you do when there are outside risks and you need to make sure that you’re following those trends and verifying the numbers that are there.

S. Bond: Well, just to respond to the minister’s comments about risk, we should be clear that all of our quarterly reports had identified risks at ICBC. So news is not about the risks at ICBC, and we’re not disputing that here. What we’re doing is looking at the numbers and how those numbers were put in the budget. The minister has talked a lot during our period of estimates about her responsibility, and we agree with that. The numbers need to be as accurate as possible. So let’s just recap for a moment.

We had a report by a very well-recognized organization that said: “Well, we think when we have to raise premiums, it probably means about $1 billion.” Then we have the Attorney General talking about insolvency. After all of that, the Finance Minister decides to put $225 million in the budget, despite everything that’s going on around her — all of the information, the reports, all of those details. So you can imagine our surprise when we then see another change to that. The number $364 million is actually put in the budget.

Well, let’s see what the Attorney General had to say on November 7, because we’re starting to actually wonder about whether or not the Minister of Finance talked to the Attorney General. There’s certainly a divergence of views here. On November 7, the Attorney General again said that “ICBC is on track to lose another half a billion dollars this year.”

Perhaps the Minister of Finance can explain for us how and on what basis the Attorney General makes a comment that is now reflecting on half a billion dollars. We’ve seen that loss balloon to half a billion dollars by November 7, according to the Attorney General. Why would the Attorney General indicate the losses were to be half a billion dollars, yet only weeks later, the Minister of Finance would sign off on another number, this time $364 million — again, nowhere near reflecting the concerns that apparently were being expressed by her ministerial colleagues?

Perhaps the Minister of Finance could explain how she and ministry officials…. Did the ministry officials get it wrong? Did she get it wrong? How did we get a number of $364 million when, in fact, the Attorney General was talking about half a billion dollars at that point in time?

[4:50 p.m.]

Hon. C. James: I know the member will know some of this, because some of this is from the time period when the previous government was in place.

It was very clear that the numbers have been volatile at ICBC for some time. If you take a look at the second quarterly report in 2016, for example, there was a $79 million loss booked and in the third quarter, a $396 million loss booked. So as the member would know, from the previous government, there had been challenges there for a long period of time.

When I became Finance Minister, as I’ve already said, I listed it as a risk. We began the work that we needed to do to take a look at the numbers, to ensure that the numbers were in place. We brought in the actuary, as I said, in the fall of 2017 — just after I became Finance Minister — to make sure that we did the kind of work that needed to be done, to examine all the trends, as I pointed out.

We also, in fact, brought in PricewaterhouseCoopers to do, again, another verification — a verification of the numbers coming from ICBC and numbers that were coming to us at Finance as well. Again, in the fall, they verified the numbers that were there.

Because of the risk, because of my continued concerns about where ICBC was heading and where the trends were heading, I did, as the member will know, build in prudence into the budget. I made sure that we addressed it through forecast allowance, through contingencies so that if there was further deterioration…. It’s very clear from these numbers that the volatility was there. It was important that once that was verified and we had it in the budget, we had the ability to be able to deal with it fiscally. And that’s just what occurred.

S. Bond: First of all, I certainly do have some familiarity with budgeting processes. I do know this. When you look at contingencies and forecast allowances…. We’ve sat through about three days of estimates now where that’s been used as a catch-all for everything so far, whether it’s employer health tax or whether it’s — you just go down the list — ICBC.

[4:55 p.m.]

Building in prudence is one thing, but the fact of the matter is that there simply isn’t enough money to cover off all the things the minister has cited here, day after day, that are going to come out of contingencies.

Let’s go back to the real heart of the issue that we are concerned about. This isn’t about volatility. We recognize there is volatility. The minister did too. The minister just cited a date in 2016 where there was volatility. That would make us assume that the minister would look incredibly hard at the numbers that were provided or were put in the budget. As we look at the information that she’s been provided with, there have been all kinds of indications that those numbers were conservative at best, and that’s probably a respectful way to say it.

If the minister recognized that by…. She actually was the minister during the course of moving from $225 million to $364 million in a very short period of time. She signed off those numbers. At the same time, did the minister, saying that she was going to carefully watch what was going on, put in place accountability mechanisms at ICBC? Did she go and speak to the Attorney General to say: “Where on earth are you getting this kind of information that suddenly it’s a half a billion dollars?”

Did the minister, did the Ministry of Finance, did anybody go and put in place with ICBC, the board of directors — anyone — some measures of accountability, some sense of mechanism to monitor? If the minister is concerned about volatility…. She’s building up the contingency fund, puts in modest and conservative numbers only to find…. And we’re going to keep building onto how that number continues to grow.

What did the minister do to try to put mechanisms in place to deal with that volatility and the changing numbers that she put in the budget?

[5:00 p.m.]

Hon. C. James: I think I’ve described, and I’ll describe it again, the challenges that ICBC presented. I’ll speak based on my role as Finance Minister. I recognize that there are a number of pieces there that the members want to get into that they have the opportunity to talk to the Attorney about. While my process is going on, obviously there is a parallel process going on with the Attorney. The member should talk to the Attorney in his estimates about those as well, because there were a number of pieces available there.

It was very clear that there was a problem at ICBC. I have to, again, make it clear that it was a problem that was left to us and not identified. It was clear that there were challenges around ICBC fiscally, without any major changes being made. When I received a number from ICBC that included proposed savings with no plan to show for it, it was very clear that there was a huge problem at ICBC, a huge problem left to us at ICBC.

The first responsible thing to do was to remove those savings, because there was no plan put in place by the previous government to actually address it. The next step was to make sure that the risk was identified to the public so the public was well aware of the problem that had been left to us by the previous government. That’s exactly what I did, as I said in every presentation, to identify the risk that was there.

We then, as I said, engaged an actuary to go through the issue. Staff were constantly engaged with the staff at ICBC as well as at the Attorney level. We engaged PricewaterhouseCoopers to have another set of eyes to go over the numbers and identify them. As those numbers changed, as we continued to get further updates, those numbers were put and addressed publicly in the budget.

T. Redies: It seems very strange. I mean, we’re not talking about subjective issues here. We’re talking about numbers. It seems very strange that the minister is implying that there’s a parallel process with the AG with respect to numbers on ICBC and a different process for her as Minister of Finance.

It would seem to me that both the AG and the Ministry of Finance should be on the same page as to what the numbers actually are. That’s why we’re questioning this.

I want to also make a comment. The minister, if she went back and looked at the quarterly reports from the previous years, and I did…. The previous government, pretty much every quarterly report, indicated that ICBC was a risk and that there were issues with ICBC. It’s not like this current government suddenly woke up and was the only one indicating that ICBC was a risk. The previous government spent about $3 billion trying to fix various issues at ICBC.

To summarize, I guess our concerns are that in two short months, the Minister of Finance, who is responsible for the financial statements and the accuracy of those statements to the public, has to sign off on them. In two short months, the ICBC losses went from $225 million to $364 million. It appears that the minister, despite all her discussions around what verification she did…. It appears that they took the ICBC numbers.

Let’s roll forward now to January — January 28, 2018, specifically. ICBC is now forecasting increased losses from $364 million to an incredible $1.3 billion.

My question. When exactly did the Minister of Finance first learn that the losses were going to be $1 billion or more? At what point did the minister realize that the numbers that she had disclosed to the public only two months earlier were not only inaccurate; they were more than three times higher than what she had warranted to the public on November 28, 2017?

[5:05 p.m.]

Hon. C. James: I just want to speak first to the issue of the AG and the work done between the ministry and the AG. As I said, the ministry, the Attorney General and ICBC continue to meet on a regular basis — obviously, more than a regular basis when you take a look at the numbers and the challenges that we are facing.

[5:10 p.m.]

The Attorney is responsible for the operational changes. He is responsible for ICBC. Obviously, I’m responsible for the numbers in the budget, but we work closely on those pieces. But there were operational changes. The other member asked what kinds of changes were also going on. That’s why I mentioned that the Attorney is the person to talk to about that, because there were also operational changes going on, changes in the board at ICBC, etc. Those kinds of things were going on at the same time to make changes. Those are questions that the members can certainly ask the Attorney as well.

The member asked about timing. Again, we were continuing to get information from the actuary that we had brought in to look. I think it’s just important to recognize and to put on the record that the actuarial estimates look at actual results. They are taking a look at the actual results. They’re looking at trends that are statistically relevant.

All of this is disclosed in the budget. The member knows. They have pages 62 and 63 in their budget documents as well, where we outline the challenges and the changes that are occurring. I think there’s one piece that I just want to read into the record, because I think it’s important to recognize. Again, this is part of the budget document.

“Claims from as far back as 2010 that originally presented as minor injuries are now emerging as more complex, costly claims. In many cases, these injuries took longer to heal. The lengthy legal process resulted in full information on the claims only recently provided. Claims that remain open longer cost more on average than claims that resolve sooner. ICBC expects the number of large, complex claims will continue to grow.”

That was certainly information that we were getting in, as I mentioned, in November when we tabled a worsening situation, identified the risk at that point. In late December, we received another actuary report saying the situation was not looking positive, and I got a call. The member asked when I heard that the number could be up to a $1 billion. I got a call on my vacation, the first week of January, to say that things were not looking good at ICBC. Obviously, the numbers, then, were built into the budget.

S. Bond: I appreciate that long answer. Not quite the response to the question we asked, but let’s try this again.

There is a trend developing all right. We should be clear about this. All of the quarterly reports of the previous government identified significant risks at ICBC. That isn’t news, and that’s not what we’re debating here today. What we’re debating is the trend of the numbers that were put in the budget.

Despite all other discussion, evidence, comments by colleagues and other ministers, this minister made a decision to put numbers in the budget that grew from $225 million to $1.3 billion over a four-month period. I think most people would be stretched to understand how the minister, despite the fact the AG was out talking about half a billion dollars, when we look back…. It was in November. This minister gets a call in January saying: “Oops. Now it’s $1.3 billion.”

Let’s ask the minister, then. The minister stated on August 22 she would be “watching closely” with regards to the situation at ICBC. Perhaps the minister could explain in detail just what sort of checking she was doing if losses could rise from $225 million to $1.3 billion in four months.

Hon. C. James: I’ve already answered that question.

T. Redies: The fact that the ICBC losses, the projections, had gone from $225 million to $1.3 billion…. Did this not strike the minister as highly unusual, given her, and the ministry’s, process of verifying the ICBC numbers that she’s spoken about, that the forecast could change that suddenly? Is it normal for an auto insurer to go from expecting a loss of $225 million to $364 million to $1.3 billion in four months? Has ICBC ever, in its history, experienced this type of fluctuation?

[5:15 p.m.]

[J. Rice in the chair.]

The Chair: Minister.

Hon. C. James: Chair, welcome to the chair. Thank you for this.

I think it’s important to note again…. I will go back to speak again to the fluctuations that we were seeing and the changes that were happening back in September when I became Finance Minister and did our first update — August when we started looking at the numbers and the fact that ICBC was listed, as I’ve said often, as a risk.

It’s part of the reason that in doing the due diligence, we brought in PricewaterhouseCoopers. It’s for exactly the kinds of reasons that the members have talked about — this kind of fluctuation, to make sure that it was examined, to make sure that we were doing the right due diligence that needed to occur.

We, in fact, brought in Ernst and Young. We’ve already talked about their report. We brought in PricewaterhouseCoopers to do that kind of work. We brought in an actuary to do that kind of work, to take a look at the numbers and to look at the changes that were occurring. PricewaterhouseCoopers also had their actuary, who reviewed our actuary. So again, that made a big difference.

Was everyone seeing these kinds of trends across the country? Yes. The pressures of claims, the increase in claims was something that was being seen across the country. So what was different here in B.C.? What was different is that no action had taken place by the previous government. That’s the difference. If you look at other provinces, they had moved to various product reforms to actually address the crisis that was in place. That did not occur in British Columbia.

Back as far as 2012, there were suggestions that the model was not sustainable and that things needed to be looked at. Particularly when you’re looking at large claims, that can make a huge difference in the budget.

[5:20 p.m.]

Was the due diligence done? Yes, it was. In fact, I’ve identified the due diligence done all along. The difference with British Columbia compared to other places is that product reform wasn’t looked at. There was no work done, and I mentioned that in September. It’s part of the reason I had to pull the savings out, because there wasn’t a plan in place. The previous government didn’t, in fact, do the due diligence that needed to be done and hadn’t done the work around an actual plan to address the savings, and therefore, you saw the kind of escalation that occurred.

S. Bond: Well, I’m sure the minister knows that I’m going to respond to that ever so briefly, because one of the key things that we recognize is that the very, very capable Ministry of Finance staff is consistent over the two governments. So we have the same people, actually, who are well aware of the files and the actions that the previous government has taken.

I won’t go through the entire list, but there was a 2012 operational view, a 2015 claims management review, a 2015 governance review. And by the way, 23 of 24 recommendations were implemented. The list goes on. There are pages of the efforts that were made by our previous government.

The issue at hand here…. I think the minister respects and understands why these questions matter, because during her very short tenure as the Minister of Finance, we had promises that she was going to keep an eye on things at ICBC. Yet having asked that question more than once, very minimal — nothing — new accountability mechanisms in place at ICBC.

Over the course of four months, budget numbers go into the budget. Well, the minister can shake her head, but the fact of the matter is: from $225 million to a $1.3 billion problem in four months. She said she was going to be watching. She said she was going to be accountable. She said she was going to actually put some new measures in place. What on earth happened? There is very little evidence…. In fact, the minister has chosen not to answer that question today with any sort of mechanisms that she put in place at ICBC.

What can the minister tell us about what she plans to do moving forward? What mechanisms has she now put in place — knowing that the numbers that she put in place were changed three times, when you look at from $225 million moving right on up to $1.3 billion? No effort was made to closely watch people all around her suggesting that there was a much bigger problem. Yet the numbers were conservative, and they were put in the budget. What mechanisms, now, has the minister put in place to make sure that when we see the next numbers, we don’t see another escalation of over $1 billion?

Hon. C. James: Again, I know the member wants to get into the back and forth. I’ll just reiterate, again, as I’ve been saying since the start of this afternoon, that the work that was done when I came in, in August, identified ICBC as a risk. It was very clear that there was a problem there that had not been acted on by the previous government. It was identified in the public accounts in August as something to watch.

[5:25 p.m.]

September’s budget included the number, and as I said, we had spent time working with the Attorney’s ministry, with the Finance Ministry and with ICBC. There were changes that were made that the members can talk to the Attorney about and that were specific to operational issues that the Attorney is responsible for — that were making changes at ICBC.

We brought in PricewaterhouseCoopers to make sure that we had an independent assessment around the numbers that were there, an independent opinion. That was a difference that was made. We brought in an actuary again. PricewaterhouseCoopers also had an actuary who did that analysis.

Then I think the most important piece here — and this is a piece that the previous government refused to do — is we acted. We acted very clearly on the recommendations that were made, which was for product reform, for changes around road safety, for changes around the insurance products. That’s exactly what we did, and that’s exactly why there’ll be a difference as we continue on.

T. Redies: Just a clarification. While ICBC or the government has brought in product reform, it actually doesn’t take place until fiscal 2019. So it’s not in place right now.

Let’s just summarize to date. In September 2017, with the budget update, the minister’s government indicated that the projected loss would be $225 million. But by February 2018, only four months later, the government now revised this number to a projected loss of $1.296 billion, a 476 percent increase in projected losses — again, after only four months.

The minister previously referred to claims. I’d like to look at the changes that resulted in those losses, those apparent losses. Can the minister explain the major drivers to the claims costs and how numbers are arrived at? And what is the process for changing or re-evaluating those claims?

Hon. C. James: I just want to correct one thing that the members have been talking about. They’ve been referring to four months and the difference that happened in four months. “Was this about more accidents in four months?” In fact, this is about claims coming due, and the budget document identifies a great deal of that. But again, this really is operational issues. ICBC, obviously, is there with the Attorney in the estimates, and that’s really where these questions should be referred to, when they talk about specifics when it comes to changes that are happening at ICBC.

T. Redies: Minister, that answer is astounding. The minister has been saying for a couple of hours now how concerned she was about ICBC, how she was on top of the file, how big a risk this is to her budget. It is inconceivable that the minister cannot answer basic questions on what is driving the losses at ICBC. Is that what she is saying to us — that we have to ask the financial questions to the Attorney General? If that’s the case, it shows an astounding lack of knowledge about this very big risk to the minister’s budget.

[5:30 p.m.]

Hon. C. James: I will correct the member. The Minister of the Attorney General is responsible for ICBC. That is the responsibility. The Minister of Finance is responsible for the numbers in the budget.

I’m happy to go through the documentation that is in the budget with the member. If the member wishes, I can talk about the details that are in the budget. It doesn’t seem the best use of time, but if that’s what the member wishes, I’m happy to do that.

If the member is asking questions about the operational side of this, yes, they should be talking to the Attorney, not because we aren’t all aware as ministers but because the Attorney is responsible for the operational side of ICBC, as the minister responsible. Just to provide the financial piece, if the member is interested in the financial end, I can, again, go through some of the pieces in the budget to do with the losses and the impact on the fiscal plan for the province.

As I talked about earlier, there were issues that appeared, rising pressure from injury claims that were coming forward. In 2010, as I mentioned earlier, a number of developments started impacting ICBC’s finances. That included a rising number of injury claims per crash; a rise in crash rates, starting in 2014; older claims coming back, as I mentioned earlier, in the earlier response. We saw older claims coming back, costs rising and coming due, as well as slower settlement rates, which again causes difficulties, lower-than-required basic rate increases needed to cover growing cost claims.

In other words, the previous government was not looking at the kinds of costs that were needed to be able to cover the costs that were coming forward. Lower investment because of lower interest rates also caused some difficulties. There was a past use of the optional side net income and capital to reduce basic rates, which caused a problem when it came to ICBC — again a decision of the previous government — as well as the over $1 billion of optional capital that was paid to government — dividends, in other words. That’s another description of them, which again the previous government determined.

If you add all those together, if you take a look at a lack of action on any kind of reform that was needed, if you take a look at lower than required basic rates, the previous government overruling the Utilities Commission around those rates, and when you look at the use of dividends and taking those dividends, you will see the kinds of challenges that ICBC was facing, and you will see the kinds of issues that were there.

As the members can see, the numbers that are below that again progressed to the kinds of challenges that are here. I can speak about the rising injury claims or the rising number of crashes in more specifics, if the members want. But again, when it comes to the operational side of ICBC, that is the responsibility of the Attorney, and that is where the questions should go.

S. Bond: The minister is simply incorrect when she stands in this chamber and tells people, British Columbians, that the previous government did nothing to deal with the issue of ICBC. That’s simply inaccurate, and she knows it.

In fact, when we were in government — and I’m sure that the ministry staff would be happy to verify that with her — we implemented over $3 billion worth of initiatives between 2012 and 2017, hardly a lack of action.

The lack of action has been on this minister’s part. To stand here today and in the Legislature during question period regularly and use ICBC as the largest risk to her fiscal plan and then suggest that she hasn’t had a conversation with the Attorney General about the kinds of numbers and changes and claims costs is simply not plausible. If it is, then we have a bigger issue at hand for the province of British Columbia.

[5:35 p.m.]

This is a very serious matter, and we are not standing on this side to debate that there were issues at ICBC. Absolutely there were, and the previous government worked very hard to find ways to mitigate some of those challenges. But to suggest that moving from $225 million — a number which, by the way, the minister has yet to verify exactly where that number came from, who gave that number in light of all the other information — and then ending up at $1.3 billion with no further accountability mechanisms put in place…. Is it just: “Whatever number’s provided, we’re just going to stick it in the budget”? This is a huge risk for British Columbians.

Perhaps the minister can articulate what the conversations are that took place between the Attorney General and the Minister of Finance. Yes, operations really are in his portfolio, but it is the primary driving factor that places risk on this minister’s budget. She said she was going to watch carefully. What conversations did she have with the Attorney General about the claims issues or any other of the risk factors that he was concerned about?

Hon. C. James: I have reviewed the pieces that as Minister of Finance I am responsible for and, in fact, made changes on, which is bringing in an independent opinion to be able to review the numbers, an actuary brought in to do the kind of due diligence that needed to occur. Then I think the biggest piece and the biggest difference that is here is that our budget brought forward changes, action, to be able to actually address the kind of fiscal situation that we were looking at. That is exactly what the public expects us to do, and that’s exactly what was missing. So whether it’s product reform or whether it’s road safety, those pieces were brought in.

The Attorney can speak to the specifics of those, as he’s responsible for the operational piece. I am responsible for the economic piece, which includes two pieces, as I talked about. The due diligence — I’ve run through that a number of times. I can run through it again if the member wants me to — but to do the due diligence that’s there and also to make sure that we are doing everything we can to address the challenges that are in place at ICBC so this does not become a recurring problem but, in fact, that action is taken to address it. That’s exactly what we did as a government.

S. Bond: We’re going to turn now to the review of outstanding claims at ICBC that the Attorney General ordered, apparently quite shortly into his mandate. According to his article on January 28, in the Province newspaper, it was noted that the Attorney General “earlier ordered ICBC to conduct a fresh review of unsettled auto-accident claims, many stretching back years, and provide a financial update to the corporation’s board of directors.”

The AG then confirmed, in a later interview, where he said this: “The projections that I initially got from ICBC were in the neighbourhood of $300 million for the loss for this year. The board and I sent them back and said: ‘Tell us exactly what the financial position is on the open files that you have.’”

Was the minister made aware of the review, and if so, when?

[5:40 p.m.]

Hon. C. James: In fact, it was PricewaterhouseCoopers who was doing that review of past claims, exactly the organization that, as I mentioned earlier, I brought in to be able to look at that. So yes, that was work that we were well aware was underway.

T. Redies: I’m now going to ask some very detailed questions on the claims numbers. I’m hoping the minister can answer them.

Minister, as we know, current claims were suddenly increased in four months from $4.719 billion to $5.064 billion, or an additional $345 million. I’m speaking about current claims. Further, the provision for current claims is forecast to increase now by an additional $787 million in fiscal 2018-19 from the tabled September budget forecast. Can the minister explain in detail why the forecast provision for current claims for the two years changed by $1.132 billion, an incredible increase in four short months?

Hon. C. James: As I said earlier, these are operational issues. The members have the opportunity to ask questions of the Attorney, and they should.

T. Redies: I have to say again that that is an astounding answer from a Minister of Finance who is responsible for a budget and making sure numbers are accurate. It doesn’t appear that this minister really actually understands the ICBC file. That gives us real consternation, because I don’t know how the people of British Columbia are expected to have any confidence in the numbers that the minister is putting forward when it appears that she and her staff don’t seem to understand how ICBC operates.

Hon. C. James: There was no question there, but I would take umbrage with the insult, particularly to staff. These are operational issues. There are divisions between ministers that are very clear. This is the opportunity the members have to ask the Attorney General the kind of specific operational issues. But I will take umbrage, as I said, with an insult.

I’m a politician. I’m quite prepared to take insults from the members as much as they want to throw. But it is not fair to disparage staff in the Ministry of Finance who work incredibly hard and provide good, quality support to governments regardless of who’s in power.

T. Redies: Fair enough. I apologize with respect to the staff. I recognize that they do work very hard.

We are trying to get to the bottom of numbers. These are numbers that relate to the budget, and we’re being stonewalled here. We’re being told to ask the AG with respect to these claims estimates, and it seems to me that this minister should have a detailed understanding of this file, if she is to project any degree of confidence to the people of British Columbia that these numbers can be relied on.

Hon. C. James: The actuaries work for ICBC. ICBC’s responsibility sits with the Attorney General. I have a very detailed knowledge of this file, and it is the responsibility of the Attorney General, for operational issues, to answer those questions.

S. Bond: Did the minister review the claims forecasts with the Attorney General, considering the significant shifts that are reflected here? The point being made is simply to use as a rebuttal to any criticisms of the budget…. The answer is automatically ICBC. Yet in this chamber, the minister continues to deflect.

[5:45 p.m.]

One would assume that if this is the biggest risk to her budget, and apparently the story that British Columbians hear about on a fairly regular basis, this minister has a responsibility to know the details about the fiscal implications of things like claims forecasts. Did the Minister of Finance discuss the claims forecasts that were represented in the report with the Attorney General directly?

Hon. C. James: The member would of course know that discussions have occurred. Of course, we’ve had those conversations, particularly on an issue like this. We’ve had those conversations across the ministries. We’ve had those conversations across staff. We’ve had those conversations across government. This is a very critical issue for us as government, and it impacts British Columbians. So have we had that kind of conversation? Yes, of course we’ve had.

As I mentioned earlier, at the start of this discussion…. Again, for the member to say that questions have been avoided…. We’ve in fact been answering questions in this process around ICBC.

We continued to look at the numbers. We brought in, in fact, an independent review through PricewaterhouseCoopers. We brought in an actuary to make sure that the due diligence was being done, and that was a critical piece.

T. Redies: We’re now going to turn to the three-year forecast. Minister, revenues are growing from $5.3 billion in 2017-18 to $6.98 billion in 2021, which, as the minister stated, is inclusive of product reform and other cost-saving initiatives to improve ICBC’s financial position.

That change is actually a compound annual growth rate of about 9.37 percent, meaning that in each of the three years, there is a plan to boost earnings through premium increases by more than 20 percent over the next three years. Is that correct? And can the minister advise what is projected in the numbers in terms of the actual increase in premiums and what is attributed to volumes?

Hon. C. James: I know the members want to dig into the details, the operational details of ICBC. Whether you’re talking about premiums or whether you’re talking about revenues that include basic and optional insurance, all those are operational details.

I’m certain that the ICBC representatives who are there with the Attorney General would be more than happy to have those conversations. Those are staff that are situated, as I said, with the Attorney, since the Attorney is responsible for the operational issues. I’m sure they’d be happy to answer those questions.

[5:50 p.m.]

T. Redies: Well, if the minister won’t answer, perhaps I can give her some numbers. It looks like there are planned increases of somewhere around 7 percent, assuming a 2.4 percent increase in premium volumes, which has been sort of the average of the last few years. In fact, based on the average premium of $1,700, it would seem to suggest that the $400 increase that the AG said was unaffordable for British Columbians is still going through over the next three years.

Minister, your government campaigned on improving affordability. How is this improving affordability for British Columbians?

Hon. C. James: I think the member has proved her point by quoting the Attorney General on these issues. It is the Attorney General’s responsibility.

S. Bond: I actually think, to the minister’s point, there is a great degree of joint accountability here. When this government constantly uses ICBC as the biggest risk to this minister’s budget, for her to simply say, “It’s over to the AG,” frankly doesn’t do justice to the Finance Ministry’s work.

Let’s talk about another number. On April 28, the Attorney General made reference to $1 billion in savings. The minister can laugh. Let’s try the question anyway. We’ll see if there’s an answer. The Attorney General made reference to $1 billion in savings if these reforms are put in place. Can the Minister of Finance tell us whether she verified those numbers, whether there was any modelling done? Was there a conversation with the Attorney General about the fact that he was talking about $1 billion in savings?

Hon. C. James: Yes, as the member can see from the numbers, by 2021, it is expected that we’ll see the $1 billion in savings. Yes, modelling was done. Yes, we verified the info. Yes, we went through the due diligence that is needed to be done. And yes, we were comfortable with the details to be able to put the number in the budget.

[5:55 p.m.]

T. Redies: Minister, the product reform that you are talking about…. There are savings estimated in the minister’s budget numbers of $392,000 in fiscal 2018-19, but the product reform doesn’t take place until April 1, 2019. Why, if you are reviewing these numbers in such detail, are you booking savings that actually won’t occur until the following year?

Hon. C. James: Again, this is identified, as the members know, in the topic box in the budget. Again, more specifics, I’m sure, could be received if the members are interested in the operational issues around this. More details could be received from the Attorney. But as the members can see in the topic box, page 64, on the three-year fiscal plan, it shows that insurance product changes occur, as the member pointed out, in April 2019, but the positive impacts can be seen as early as ’18-19 as implemented legislation and policy measures contribute to the actuarial outlook for lower expected claim costs.

We’ve used very prudent assumptions, again, in taking a look at the numbers and going through the numbers with the Attorney General’s ministry and ICBC. We use very prudent assumptions. We have not built in, as the member pointed out, a huge amount in that first year. But as you can see, based on the changes, the legislative and policy measures that have already been passed, those changes, in fact, can contribute to an actuarial outlook for lower claims costs, which then get booked in ’18-19 in the last quarter. You’ll see it as the quarterly reports come out.

S. Bond: This afternoon we’ve explored the fact that over the course of four months we’ve had ICBC projections basically change dramatically. The minister has had to revise budget numbers over the course of four months.

[6:00 p.m.]

Can the minister explain how she can possibly have confidence in ICBC’s projection of a $1 billion turnaround after they’ve had to revise their numbers three times on her watch?

Hon. C. James: I want to take the members back to some of their own comments around the issue of ICBC and the volatility that was there when the previous government was in place. When it comes to monitoring ICBC and looking at the importance of addressing the kinds of challenges that have been there, I think the most important piece to note is that our government may change. That’s the most important piece to note in all of this.

Why do we feel confident at the numbers? Why do we feel that we’re going to see a difference in the numbers? We’re going to see a difference because the government actually acted. A government actually made a statement that not only were they going to address the issue; they took action.

We are moving on the most expensive part of the business to begin to address it, to address the kind of crisis that we’ve seen. We will continue the work, as I’ve identified I have done since I became Finance Minister, which is to closely monitor what is going on; to work between staff at the Attorney General’s, at ICBC and at the Ministry of Finance; and to continue with reports. We brought in PricewaterhouseCoopers to again give an independent view and oversight on changes. We are actively engaged in looking at the product reform and following that along to make sure of the changes.

The biggest piece in all of this, I would say again to the members, is major change on the most expensive part of the business, which was recommended and not acted on. It has now been acted on, which will address some of the financial problems.

T. Redies: It’s interesting that the minister is relying on the product reform that the AG is bringing in. But that product reform is only to do — at least, it’s been announced — with minor injury caps. It doesn’t address the major problem, which we didn’t get into because the minister indicated it’s operational.

The major problem that ICBC has is that it has had minor claims move to large loss claims. So this does not address the primary problem, which has created about a $1 billion hole in ICBC over the last three months. So again, why should the people of British Columbia be confident that the ministers and the AG have actually addressed the issues at ICBC?

Hon. C. James: I’ve answered that question.

S. Bond: Can the Minister of Finance tell us if she has had meetings with ICBC or meetings in regards to ICBC with the Attorney General since July 18?

Hon. C. James: Yes.

[6:05 p.m.]

S. Bond: Has the minister been given any briefing notes with regards to the situation at ICBC since assuming her position?

Hon. C. James: Yes.

S. Bond: Can the minister tell us if she has had correspondence with ICBC or the Attorney General’s office with regard to ICBC since being sworn in as the Minister of Finance?

Hon. C. James: I’d have to go back and check. I don’t believe so, but I have to go back and check.

S. Bond: Well, thank you to the minister. First of all, we do note that we’re getting close to the end of our time. We have many other topics and questions we would like to have pursued, but we understand the way that the Legislature works.

We appreciate the staff and the work that they do. I personally have benefited from support from great staff over the many years that I was a minister.

I want to end on this note. I’m going to ask and request that the minister respond in a very positive way, we hope, to this question. Perhaps the minister can then tell us why several freedom-of-information requests to her office and ministry for records related to ICBC’s net loss, income loss, injury claims, soft tissue caps, driver risk premiums and civil tariffs came back with no records.

Hon. C. James: The member will know this very well, having been in government. There were records. All the provisions of FOIPPA were followed. Documents, as the member knows, that are given as advice to cabinet, to Treasury Board, to the minister are severed.

S. Bond: Well, I certainly do know about releasing a variety of things. I’ll just repeat this. We filed FOIs on civil tariffs, driver risk premiums, correspondence, memoranda, meeting minutes, summaries, briefing notes, handwritten notes, post-meeting reports between Finance, AG and ICBC. Finance came back with no records.

Would the minister today commit to releasing the information that British Columbians deserve to better understand, particularly related to things like briefing notes? Those are briefing notes that should be released under a freedom-of-information request if they indeed are in the minister’s office.

Would the minister be prepared to look at the information that was requested and release information that we believe is important to British Columbians having a full understanding of the ICBC file?

Hon. C. James: As the member knows, I’m happy to review any information. But all provisions of FOIPPA are followed.

The Chair: Hearing no further questions, we have ten votes to go through. We must, unfortunately, go through them individually, one by one. Hearing no further questions, I now call…. Oh, Minister.

Hon. C. James: I’d just like to make some closing remarks, if I can. I think I first, most importantly, want to say that I know we’ve had a very thorough discussion on the issues. I think, as is important in estimates, it often identifies issues for further discussions but often identifies differences between the sides when it comes to issues. I think that is very clear, from my perspective, through the estimates process. We’ve had a very thorough discussion that has made it very clear that there is a difference in approach between ourselves and the opposition.

[6:10 p.m.]

As I said in our September budget update and again in February, we feel incredibly fortunate, and I feel incredibly fortunate, to live in a province that is rich in resources, that is rich in people, that is rich in our natural beauty, that has strong entrepreneurs and a strong business climate, that has healthy communities. But what is also very clear is the fact that there are people in British Columbia who are not benefiting from that prosperity.

We are a strong province economically. I’ve talked about our indicators and the strength there, but we are not and cannot call ourselves a leader in British Columbia unless that prosperity is shared with all British Columbians. That is the philosophy and direction that we have taken, as a budget.

As I’ve talked about, investments are not simply investments in either business or in communities or in families. They should be investments in business, in supporting our environment and building a strong economy and addressing affordability. I think it was very clear that there is a difference when it comes to government.

I want to express my appreciation to staff in the Ministry of Finance. They work incredibly hard. I have been very well represented, as a minister, by the expertise that they share, by the straightforward approach that they take when providing information. I know they have served past governments and continue to serve our government well, as well.

With that, I will turn to the motions that need reading.

Vote 24: ministry operations, $172,581,000 — approved.

Vote 25: government communications and public engagement, $35,384,000 — approved.

Vote 26: B.C. Public Service Agency, $56,268,000 — approved.

Vote 27: benefits, $1,000 — approved.

ESTIMATES:
MANAGEMENT OF PUBLIC FUNDS AND DEBT

Vote 43: management of public funds and debt, $1,275,907,000 — approved.

ESTIMATES:
OTHER APPROPRIATIONS

Vote 44: contingencies (all ministries) and new programs, $550,000,000 — approved.

Vote 45: capital funding, $1,772,046,000 — approved.

Vote 46: commissions on collection of public funds, $1,000 — approved.

Vote 47: allowances for doubtful revenue accounts, $1,000 — approved.

Vote 48: tax transfers, $1,246,000,000 — approved.

Hon. C. James: Noting the hour, I move that the committee rise, report completion of the resolution of Votes 24 to 27 and Votes 43 to 48 of the Ministry of Finance and ask leave to sit again.

Motion approved.

The committee rose at 6:14 p.m.