Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, May 31, 2018
Afternoon Sitting
Issue No. 148
ISSN 1499-2175
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The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
Bill 23 — Local Government Statutes (Residential Rental Tenure Zoning) Amendment Act, 2018 | |
Bill 24 — Miscellaneous Statutes Amendment Act (No. 2), 2018 | |
Bill 25 — Real Estate Development Marketing Amendment Act, 2018 | |
Bill 26 — Child, Family and Community Service Amendment Act, 2018 | |
Bill 27 — Pill Press and Related Equipment Control Act | |
Bill 29 — Voluntary Blood Donations Act | |
Bill 30 — Cannabis Control and Licensing Act | |
Bill 31 — Cannabis Distribution Act | |
Bill 33 — South Coast British Columbia Transportation Authority Amendment Act, 2018 | |
Bill 34 — Greenhouse Gas Reduction Targets Amendment Act, 2018 | |
Bill Pr401 — Canadian Chinese School of Theology Vancouver Act | |
Bill 35 — Supply Act, 2018-2019 | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
THURSDAY, MAY 31, 2018
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Routine Business
Petitions
J. Rustad: I have a petition signed by 254 residents in my riding, asking that the government extend the hours of operation of the Francois Lake ferry.
Orders of the Day
Hon. M. Farnworth: I call government Motion 25. That’s on the order paper in my name, so both official opposition and Third Party House Leaders are aware of it.
Government Motions on Notice
MOTION 25 — CHANGE TO
TERMS OF REFERENCE FOR
AGRICULTURE, FISH AND FOOD COMMITTEE
Hon. M. Farnworth: I move that:
[In addition to the terms of reference previously provided to the Select Standing Committee on Agriculture, Fish and Food by the Legislative Assembly on April 24, 2018, the Committee shall examine, inquire into and make recommendations regarding how to restore healthy and abundant wild fish stocks in British Columbia.
In particular, the Committee shall conduct consultations to examine the health, habitat and management of wild Pacific salmon and the sustainability of wild Pacific salmon industry in British Columbia.
The Committee shall prepare a report on the results of those consultations no later than November 29, 2018, and report as soon as possible to the House, or following any adjournment, or at the next following session, as the case may be; to deposit the original of its reports with the Clerk of the Legislative Assembly during a period of adjournment and upon resumption of the sittings of the House, the Chair shall present all reports to the Legislative Assembly.]
Motion approved.
Hon. M. Farnworth: In this chamber, I call the continued estimates debate on the Premier’s office. In Committee A, I call the continued debate on the estimates for the Ministry of Energy, Mines and Petroleum Resources. In Committee C, the Birch Room, I call continued debate on the estimates of the Ministry of Jobs, Trade and Technology.
After the estimates of the Premier are completed, I will also call estimates Votes 1 to 9. After that, there will be the supply motions by the Minister of Finance.
D. Routley: I seek leave to make an introduction.
Leave granted.
Introductions by Members
D. Routley: The Premier asks us always to be out there making new friends. I like making friends in the hallways of the building here, which I did today.
I made friends with some really wonderful people from Richmond. I met Mandy Leongoich Xiang — she’s the daughter-in-law of this family — and Xiang Xial Xiang, the son. They’re both from Germany, living in Germany now as engineers. The whole family are engineers, including the father of the family, Don Xiang Xing. He was an engineer here in British Columbia and Alberta. They lived most of their lives in Calgary. His wife was with him as well, Xiu Chu Xing. Both of them now live in Richmond.
We toured the building. We got to meet a few people. I was able to emphasize that indeed, this is their House, and that they are always welcome here, as are all the people of B.C.
Can the members please help me welcome to the precinct this lovely family from Richmond.
Committee of Supply
ESTIMATES: OFFICE OF THE PREMIER
(continued)
The House in Committee of Supply (Section B); R. Chouhan in the chair.
The committee met at 1:41 p.m.
On Vote 10: Office of the Premier, $11,305,000 (continued).
D. Barnett: To the Premier: first of all, thank you, Premier, for allowing us to be here and ask you a few questions, and thank you for Rick Hansen Day.
I’m going to go back to the estimates of November 23, 2017. In 2017, I said I was a little frustrated, and I’m still frustrated. I’m frustrated over…. Back to the wildfires of 2017. We still have devastation. We still have issues. You made a commitment that you were here to help us, and I believe it. But some of the bigger issues we have are getting answers from your ministers on some of the issues that we’ve asked questions on. Of course, it’s back to the staff. We have the greatest staff in the world out in our regions. But we have many questions that haven’t been answered.
I will continue to write letters and hope I do get some answers. As we all realize, your ministers are extremely busy. We know that. But we must also have the passion for our constituents who are frustrated. When they have to wait a long time for an answer, they get even more frustrated. And they’re very fearful, of course, because we’ve already had wildfires, believe it or not, in 2018.
So I would just ask that you maybe see if you can’t speed up processes for us when we do make these calls. It would be greatly appreciated.
Back to the mitigation and rehabilitation from the 2017 wildfires. I know that the Ministry of Forests, Lands and Natural Resources has a budget of around $55 million for a three-year rehabilitation. I also know that the Forest Enhancement Society this year is putting $137,000 into rehabilitation and restoration. Mr. Premier, I’ve done my homework, and this is just a touch.
Out there on the landscape, we need, desperately, more funding for seeding. We need more money for rehabilitation. If we don’t get the seeding done quickly, of course, we’ll have an invasive problem called invasive weeds. So I’m going to make a request, to ask: what is the long-term plan and the short-term plan so that we can get some of this rehabilitation work done quicker?
Hon. J. Horgan: I thank the member for her questions. I know her steadfast commitment to her community. She will know full well, because she was there on the ground every day, that we did have an extraordinary season in the last year, and we’re hopeful that we don’t see a repeat of that. But when I think of the member for Boundary-Similkameen’s comments today about floods that have arrived early and the fires that are following quick on their heels, that sounds very familiar to last year. Projections are that we’re going to have another dry summer, and that, of course, causes great concern.
Some of the issues…. I know the member has canvassed this extensively with the Minister of Forests, Lands and Natural Resource Operations. I’ll just add to that, that our objective is to see as quickly as possible what we can get out of the forests, the burned timber, get it to market. Once that happens, then the tenure holders are obliged to replant. So when we determine how much of the burnt wood we can actually get to market, how much then will be the responsibility of the tenure holder, then we can take stock of how we deal with those areas of land that were decimated and are potentially at risk of invasive species, as the member knows full well.
It has to be a staged process. We need to know what the obligations of the tenure holders will be before the province can step in. We are doing our level best to make sure that we accelerate both those processes.
In discussions here in the Legislature over the fall and into this spring, I know the member for Cariboo-Chilcotin and the member for Cariboo North and others have raised the concern that we need to get this timber out of the forest as quickly as we can. That really falls to the companies to do that, and they’ve been doing their level best, I’m advised, to make that happen. There are tens of millions of dollars in budgets. There are the moneys that are available through the ministry. There’s the money available through the forest enhancement fund — $137 million. I think you said thousands, but I know it’s a bunch of money.
That’s cold comfort to people like you, hon. Member, and your neighbours who depend on the land base for economic activity, for cultural purposes, when it comes to Indigenous peoples. That’s why we asked our former colleague George Abbott, and Maureen Chapman, to go quickly to respond to the fire season and bring forward recommendations for government, whether it be at the executive council level or within ministries. What can we do to be better prepared? What can we do to ensure that the recovery that the member so desperately wants to see happen quickly can actually do that?
I know she will be relentless in that, and I respect her very much for that. And I expect several more questions before we’re done today.
T. Shypitka: I seek leave for an introduction.
Leave granted.
The Chair: Proceed.
Introductions by Members
T. Shypitka: I’ve got a couple of guests in the House here today from Cranbrook — Tricia McLeod and her daughter, Elizabeth, who is 11. They are here for a speech — arts provincials. She’s representing the school of St. Mary’s, in Cranbrook. Apparently Elizabeth loves her politics, and she came to the right place, I guess, here today. They had quite a trip getting here, and I wish the House to give them a good round of applause.
Debate Continued
D. Barnett: Yes, it is $137 million. I will correct my statement. Thank you for that, and thank you for the answer.
I appreciate the fact that this is a long process, and the report that just came out from Mr. Abbott and Ms. Chapman is a very massive report. One question I do have about that report…. The concern I do have is that every single recommendation needs dollars and cents, and it’s massive dollars and cents. When will the response to this report be made, Mr. Premier? Who will be responsible for the funding of each one of the components and recommendations?
Hon. J. Horgan: Certainly, not all of the recommendations in the Abbott-Chapman report require resources. But the member is quite right: many of them do, significant resources. The action plan is anticipated by end of October. To that, no resources have been attached to it at this time as we work through those recommendations, but there are a number of other initiatives. The member knows; we talked about some of them.
There are two others I didn’t mention. There’s the forest carbon initiative and the low-carbon-economy fund, together with the federal government. That’s about $140 million from them and $150 million from us directed explicitly at using our forest for a carbon sink. The challenge we have on reforestation is that the devastation was so extraordinary. Seedlings take time. Seedlings have to be at a certain stage before they can be viable in the forest. There’s a backlog, and we anticipate we’ll be in a better position by 2020.
Planting will increase substantially in 2020 to fully implement the low-carbon fund programs, but we need to get up to 300 million trees. We’re in the realm of the 250 range now. You know; you live there. You’ve seen it firsthand.
I will also say that although I visited the area many times during the fire season, I was never able to get into the Chilcotin because the smoke was so severe — from the air or on the ground. My colleague the minister and I bumped into each other at the airport in Vancouver, where oftentimes, as you know, productive meetings take place. We spent a good 20 minutes just thumbing through his iPhone at — as far as the eye could see — the blackness and the barrenness of what was a vibrant forest in your constituency.
I fully appreciate the magnitude of the problem. I don’t want the member to think for a minute that we don’t realize the magnitude of the problem. She will also know, as she’s already said, that we have outstanding government employees that are on the ground. We need to just make sure the dollars are there to back this up. The recommendations that are actionable in the Chapman-Abbott report will be done as quickly as possible.
D. Barnett: Thank you. I appreciate that.
It’s more than just planting trees. Of course, there’s grasslands. We have the last good ecosystem of grasslands in the Cariboo-Chilcotin. Our ranchers, of course, have lost an awful lot of their grazing areas. I hope…. I haven’t heard yet how quickly seeding will be done.
To the Premier, maybe you could respond to that — how quickly we’re going to get the grasslands planted.
Hon. J. Horgan: I thank the member again for her questions and her concern for her community.
The forage land, the grasslands, are of course critically important to our cattlemen, our cattle industry. Fencing is another issue, of course, that has to be dealt with. The minister advises me that ongoing discussions are talking place with the B.C. cattle community in her constituency. We expect to be able to make progress as quickly as possible, but there are backlogs of the raw materials that we need to get the grasses back to an area where they can be forage land again for cattle and other grazing stock.
Again, here we are now coming up to a year from the event, and the member is still advocating for her community, as she should. I can only reinforce that she continue to do that, and we will be mindful that the broader community understands that these challenges will not be fixed overnight. We are going from catastrophe to catastrophe. We went from flood to fire and now back to flood — and hopefully, not significant fire again. But as the member already said, there are fires burning even now in the north and in the Interior.
Our commitment is to meet the needs of the community as they arise. She has quite ably highlighted that this is not without significant cost to the taxpayers, but it’s a cost that I believe all members are prepared to make in the interest of recovery and restoration in the Cariboo-Chilcotin.
D. Barnett: Thank you, Premier. One of the concerns I’ve heard in my riding, around, is that the recommendations in the Abbott and Chapman report do not get put on the backs of local government. It seems, when you read the report, the recommendations say: First Nations, local government and the provincial government. This is not a responsibility of local governments. This is a responsibility of both the provincial and the federal governments.
Mr. Premier, are any of these recommendations going to be put on the backs of local governments?
Hon. J. Horgan: I’ll have to say to the member that certainly in the past there have been cost-sharing arrangements between all levels of governments. In my meetings with the mayor and council of Williams Lake, as well as the regional district — Mr. Richmond and his colleagues — during the crisis, we made it absolutely clear that we would look at ways to stimulate economic activity outside of ensuring that interface areas were appropriately logged so that we were removing fuel from communities in the cities. But in the regional districts, that’s a bigger challenge.
It’s not our intention to be downloading anything. In fact, it’s our intention to be working with all levels of government — federal, municipal and regional — to make sure that we’re working together with the private land owners, with the cattle industry and other industries that depend on access to Crown lands as well as to private lands, to make sure that we can continue to get the Cariboo-Chilcotin back on track to be an economic engine in the region when it comes to forestry, livestock and so on.
We’re not starting out with any expectation that we will be offloading onto municipalities — quite the contrary — but we need to be working in partnership. In the case of floods this year — and my colleague the parliamentary secretary knows this full well — the floods are the responsibility of municipalities, and the fires are the responsibility of the provincial Crown. The confusion oftentimes exists within the public mind about who’s in charge here, and everyone’s always looking for someone to offer that helping hand.
I think what we’ve learned in our short time in government is the best way to proceed is to go with all levels of government together into communities to make the case that we’re there for the long term.
I’d like to think that we did our level best to do that in the Cariboo-Chilcotin. We’re certainly doing our level best in Boundary-Similkameen right now to address the flooding there, working with the federal government. The Armed Forces were sent in at the request of the PREOCs at that time. When the crisis is happening, I think you see a high level of participation and cooperation between levels of government.
The member mentioned Indigenous communities. Again, there was a high level of anxiety about being told what and where to go and what to do. The member will know full well the personalities and the communities that were affected this past summer.
I think what we need to do as elected representatives is to show the community that we are together — all levels, all political parties — when these issues arise. I was particularly grateful to travel with the Leader of the Opposition, the House Leader for the Green Party and two local MLAs from the opposition side to Chilliwack, together, so that we could say quite clearly, with one voice, to people who were facing potential catastrophe and crisis, that we were not going to be fighting amongst ourselves; we were going to be working together for outcomes.
I believe, and I know the member would agree, that shouldn’t just be the case when the crisis is happening; it should be there while the recovery takes place. I commit to continue to work with the member and her community to make sure we get success in the future.
D. Barnett: To the Premier, thank you. I would like to, through you, Mr. Chair, invite you to come on a tour with me. There are many places I would like to take you. Really and truly, I think you would appreciate the passion and the understanding of what people are living with. I invite you to come to my riding. I will be the driver, and I guarantee you I will get you safely back.
I’d like to change focus. As you know, the superintendent of real estate will be making some major changes in the real estate industry in this province. We, along with realtors — the B.C. Northern Real Estate Board, the B.C. Real Estate Board and others — have been requesting to the minister that this process be put on hold.
There are many issues out there that have to be resolved. There is much more work that needs to be done. There is not an understanding in the real estate industry, both by the realtors and by myself. I was a realtor for 26 years. To take away dual agency in rural British Columbia…. We have enough economic situations with fires and floods. We do not need more job loss. We do not need more anxiety.
Will the Premier please speak to his minister, who has the authority — we make the legislation — to put the changes to the superintendent of real estate on hold until we have an all-party commission or something so that we can better understand and make changes that are necessary in the best interests of all of British Columbia — and, in particular, not to devastate the rural economy any further.
Hon. J. Horgan: To the greatest extent possible…. I have a son getting married — my gooder son. The good son’s not married; the gooder son’s getting married this summer. Barring that, I would be delighted to travel in the Cariboo-Chilcotin with the member, going to places I’ve not yet been. I would be delighted to do that. So my people will talk to your people and make sure that your driving record is clear and that you, indeed, will get me back safely.
Firstly, I want to say that the possibilities of conflict between realtors is not trivial. The member knows that. But I also appreciate that small communities are quite different from large metropolitan centres. Everyone knows everyone, and oftentimes, the best way to close an arrangement that’s in the benefit of both buyer and seller is with one agent. Perhaps that might be the only way, in some cases, that that can happen.
Although I will not commit, in these estimates, to make determinations on behalf of the minister, I will commit to the member to talk to the minister about our conversation today and direct her to the Blues if she wants to directly read your comments. I’ll certainly commit to do that.
D. Barnett: Thank you, Premier. I don’t think anybody realizes or understands the ramifications, should this all pass, through the superintendent of real estate. In rural British Columbia, in places we have one realtor. We have one office. In other places that are a little bigger in rural British Columbia, we have family real estate offices. Probably over 50 percent of our realtors will be unemployed, and there will be no representation for our citizens. This is taking away consumers’ rights to hire whom they wish.
I sincerely hope that this issue can be resolved collaboratively and with input from realtors, not just people who are appointed to the Real Estate Council. There are 12. Only two are actual realtors, and two, I believe, are from rural British Columbia. I will leave this in your hands, Mr. Premier, and hope for a positive outcome.
With that, I will turn this over to my colleague from Columbia River–Revelstoke.
D. Clovechok: Thank you to the Premier for this opportunity. Before I get into what I’m going to chat about today, I just would warn him, if he’s going up to the Cariboo-Chilcotin with the member for Cariboo-Chilcotin — I spent four days with her — eat before you go, and do not drink water, because bathroom stops are not allowed. And I dare you to try to keep up to her. It was a task, let me tell you. But it’s worth the trip, and I encourage the Premier to take her up on that offer. But prepare yourself for that.
Also, just a follow-up to the Premier around this real estate issue. It’s a huge issue in Columbia River–Revelstoke. It’s a huge issue in Kootenay East. It’s an issue in all rural communities. I really want to reinforce what my colleague had to say — that this is a big deal where we come from, and it’s affecting people’s livelihoods. I take your offer to follow up on that in all good stead, because it’s something that’s very serious and needs to be done for our rural realtors. What is made for or proposed in the Lower Mainland doesn’t work where we live, so there needs to be another solution. I just needed to mention that.
I also stand here today as the voice of the people of Columbia River–Revelstoke, and specifically, for the folks in Revelstoke, and maybe, like my colleague did a little bit, hit the History Channel button and go back to November when I spoke to you about the Three Valley Gap issue associated with the Trans-Canada Highway. The Premier talked about the Colwood crawl and the Saanich crawl, which are big issues for those folks. But when reflecting back on that, prior to me standing here today, it’s kind of apples and oranges.
When you’re stuck in a traffic jam — and we’ve all been in cities and, obviously, in Vancouver traffic — there’s a difference between turning on your radio and listening to some tunes and getting home half an hour later, and actually driving through an area knowing full well that your life is in peril. I just wanted to highlight that there are huge differences. I understand there are transportation issues across this province, but this is a massive issue that has the potential of threatening life.
I want to let them know that Shannon Smith is watching today from Revelstoke. The mayor is watching from Revelstoke, and many people from Revelstoke are watching this today, as we speak, because I gave them the times that I would be up here today.
During the last estimates, and this comes right out of Hansard…. I just want to remind the Premier of some of the words that were spoken that day in relationship to the Three Valley Gap. “That is a personal commitment of mine that we get to start as soon as possible.” And I quote again: “It’s my commitment to him” — referring to me — “and to his constituents that we want to make sure that those improvements occur as quickly and as seamlessly as possible.” Then he also said: “I’m going to commit to talk to the minister about Three Valley Gap.”
My first question to the Premier would be: how fruitful were those conversations with the minister around Three Valley Gap, and what do we know — more than what we did back in November?
Hon. J. Horgan: I’ll do a couple of things while we wait for a little bit more information to come into the room. Firstly, on the dual-agency question. I was travelling back to Ottawa recently at the request of the Prime Minister, and it happened to coincide with the national real estate meeting in Ottawa. So I wasn’t the only one sitting in economy; there were a whole bunch of realtors as well. They took full advantage of that opportunity, particularly those from rural communities, to advise me of their thoughts on the matter. Some of them took pictures with me. I don’t know where they ended up or whether they used them for malice or for positive outcomes, but we had good exchanges.
Again, I’m not just hearing about these issues inside the Legislature. The real estate associations across the province are active on this question, and I know the minister takes it very seriously.
But I will say to this member, as I did to the last: the conflicts in larger areas are not insignificant, and that issue needed to be addressed. It was acknowledged by the previous government. This is not a concoction of the new government. It’s something that I think we all recognized, and we have to make sure we get it right.
When it comes to the particular roadway in question — the Three Valley Gap — and having the difficulty of the railway, the river, the mountains, everything that the member knows full well, I did have a discussion with the Minister of Transportation. Our commitment has been pretty clear for the past ten months that the corridor from Kamloops to the Alberta border is one that we want to see accelerated. I said that last year. That remains the case today. We’re hoping to get a little bit of information on that.
I’m really ragging the puck at this point, but the good news is I’ll be in Revelstoke next week talking to the Interior lumber association. I’m not suggesting that you and I go for a drive, because you’ve already suggested that perhaps the member for Cariboo-Chilcotin should be ride-hailing…. We’ll call it ride-hailing from Cariboo. We’ll get an app for that so that the three of us can go.
I will be in the region next week. I’m sure I’ll hear about it again. We are committed to accelerating the development of highway improvements through the corridor, and Three Valley Gap is an integral part of that. But as he knows, it’s going to be costly, and we need to all be mindful of that as well.
D. Clovechok: I will be at the same ILMA conference as he is, so hopefully we can…. And the minister…. Sorry. I almost called you by your name — which is a great name. Nonetheless, we’ll see you both there.
I know that “accelerate” and “expedite” have really been driving words behind your government’s approach to the Trans-Canada Highway, yet I’m going to be very candid with you, sir, and very frank with you here today. The people of Revelstoke have had it. Frankly, I’ve had it. And it’s not your problem. You didn’t create this. You didn’t do this. I want that to be read into the record, no question.
When we were in government, we put in measures that would make people safer, especially the towers up on the bluffs for avalanches. But at the end of the day, you are government now. When the member and I spoke back in November, you said: “Cut me some slack.” That was the word. “I’ve only been here for four months.” And you know what? We gave you the benefit of the doubt. Well, the training wheels are off, and you’ve had some time now.
What I want to do today…. Shannon Smith, I referenced her in November as well. An amazing Revelstokian, who got nailed by a huge rock. The Premier — if I recall from those estimates — also mentioned a situation with you and your son.
Interjection.
D. Clovechok: I won’t go there. Nonetheless, you’ve had that experience, and you know how scary it can be.
I would certainly hand these to you at some other time, sir — although, we’re not supposed to use props here. These are pictures of Shannon’s car. And that was a small, little rock that got her. A brand-new car, completely written off. She’s had nerve damage. She’s really struggling today — I’ve met with her several times — with the psychological debris, if you can use that word, of what had happened to her. Her daughter is not allowed to drive on that highway, because she’s just so afraid of what’s going to happen.
Also for reference, that I can pass on to the Premier…. About four weeks ago, a boulder came off of the cliff there that was bigger than my truck. Thank goodness it didn’t hit anybody, because had it hit somebody, they would have died.
They also talked, and the minister has talked, about netting. Netting is not going to stop that rock. There is something very nefarious going on. And that bluff…. It’s been happening since the ’60s. As I mentioned, this is not anything that you created, but you are now government, and therefore you need to deal with this.
Just referencing back to the folks of Revelstoke, who I stand here and represent today.
I know that your office…. You certainly wouldn’t have been able to read them all, but right now there are over 800 letters that have been written to the Premier’s office from Revelstokians about this issue.
I would like to read into the record a couple of quotes that I just pulled from these. I have these here with me today. I’ve got over 600 of them sitting here today, although there have been 800 that have been sent. They’re here today, and those should have been in your office.
This is from Alanna Widmer, in Revelstoke: “Our lives are affected deeply by this issue. We need action. We need your help.”
This one comes from a Revelstokian by the name of Victoria Sims, who works at Three Valley Gap, actually, and lives in Revelstoke: “I drive to and from work and have to pass that rock face at Three Valley Gap every day. I feel like I’m playing Russian roulette with my life, and I don’t like doing that. I need this job, but it’s not fun going to work. The fear of this stretch of highway is very real for us.”
This is a quote from Louisa Fleming, another Revelstokian, who actually had an experience herself: “In August 2016, we were on our way to a medical appointment in Salmon Arm when hit by a rock in the middle of the road at Three Valley Gap, shattering two wheels and shredding two tires. Fortunately, we were not injured, but I missed my CT scan in Salmon Arm and couldn’t rebook until November. Not only that; we had to pay the towing charges and a $500 ICBC deductible. Please do the right thing and get this upgrade done before more people are killed or injured.”
A quote from Chris Harvey, in Revelstoke: “This highway needs attention. We shouldn’t have to wait for someone to lose a loved one before something is done.”
This comes from Cindy Lloyd, from Revelstoke: “I implore you to please give this issue the depth of attention that it deserves.”
This comes from Nick Thomas, in Revelstoke: “It’s time for the government to be honest with the people of British Columbia. Until there’s some sort of overall plan, with feasible options to upgrade all the remaining two-lane sections, and more funding, then the only decent thing to do is to stop pretending that a Kamloops-to-Alberta-border program exists.”
I won’t go on; there are multiple examples of this. But Revelstoke has had it. They’re afraid for their lives. As a result of that….
To the Premier, I’m just wondering what he can commit to today, to the people of Revelstoke, that will help them understand that this is a public safety issue. Frankly, this government today knows that it’s a public safety issue. They know that it’s not a matter of if someone is going to get killed; it’s a matter of when someone is going to get killed. If someone does lose their life, God forbid, then, Premier, that’s on you, sir, and your government. I’m not a lawyer, but there’s going to be litigation, and we don’t need any more litigation in this province.
To the Premier, I would ask, on behalf of the people of Revelstoke: what is your government’s plan to fix this? It’s not a twinning issue; it is a public safety issue. People every day fear for their lives, and they’ve had it.
Hon. J. Horgan: I remember well the conversation the member and I had last fall when he reminded me of the rock, bigger than two of these desks, that came pounding down the highway in my community and how close it came. I had forgotten about that. Thanks for reminding me of it.
But I do remember very well the conversation, and my commitment remains the same. Certainly, we can’t rely on typical rock-face fencing. That’s not adequate. We need to find new ways to address this.
There are designs underway to develop new rockfall fence systems. That design work is ongoing. Since we spoke in November, of course, the construction season has been…. Snow and weather prohibit any significant work until where we are right now. The projects in the budget this year call for some $700 million for projects in and around the member’s area — Three Valley Gap being among them.
But we do have to make sure we’re getting it right. We don’t want to make those significant investments and still have the same safety challenges that the member knows so well. I will continue to work with the Minister of Transportation. We have made this a priority. I said it directly to the member, to his citizens, last fall, and that remains the case.
I do know that work is underway, as I said, to try to find new technologies that will be more effective than the traditional mechanisms that are clearly inadequate in that stretch of highway. I appreciate the volume of correspondence the member has with him. That speaks to the passion of him and his community, and I’m not dismissive of that in any way.
We’re hopeful to find out, of the $700 million that would be involved in the completion of these projects, how much of that is going to flow this summer, next summer and the summer after that. If the member has another question, I’ll wait for that information to arrive.
D. Clovechok: These are the pictures that I was referring to. The Premier can see the size of that boulder. The size of that boulder is not going to be stopped by any netting — not a chance. The vehicle was Shannon Smith’s car, which was hit by a small rock. When you look at that car, it’s absolutely amazing that that woman did not lose her life. As I say, she still suffers today from the trauma that was associated with that accident.
During the Ministry of Transportation estimates, it was brought to our attention that there are no extra dollars in the budget for Three Valley Gap mitigation. It would be additional dollars, from what I understood before, that would have to be applied here. The point that I really want to hammer through here today is that this is something that can’t wait. This is critical. I know the Premier values British Columbians, and he values the safety of British Columbians. I know that.
At this point, it’s not happening in Revelstoke. And that’s why the volume that we have here…. We’re anticipating over 2,000 letters are going to land on the Premier’s desk sooner or later. People have had enough of hearing about accelerating and expediting, when nothing is going on. Nothing has happened. Now, with Donald to Forde Station on the Trans-Canada Highway, there’s been an RFP, and it’s on its way. It’s good. And the Kicking Horse Canyon — I’m thrilled to know that it’s going to still continue.
But Three Valley Gap…. We’ve got to figure this out. It’s not my job to provide solutions, but today, I believe…. I’m not a geologist; my son is. But I believe that a geotechnical survey needs to be done on this rock face to find out what is going on up there. This has been happening since the ’60s.
This is not the fault of this government, but it’s now the responsibility of this government to do something about it and do something about it now. So a geotechnical study, anything that would suggest that we can find a solution as to why this rock surface is moving — nobody has done that. So if I can offer that solution today, that might be something.
Moving forward, I would really like to see and hear from the Premier today. What could be a potential timeline, given the critical mass of this? Is this something he’s willing to instruct his minister to act upon, not yesterday but today, right away?
Hon. J. Horgan: Again, I don’t doubt for a minute the urgency of the matter and the importance of public safety to the member and all members of this House. I do appreciate — the member has been clear — that this is not something that just happened ten months ago. It’s been building for decades. Successive governments of all political stripes have not been able to find the solution to give the people in the communities the confidence that this valley is going to be safe for the travelling public.
I think we also have to take note…. This is, again, particularly apparent. I think of the questions we just had from the member for Cariboo-Chilcotin about the intensity of fire seasons, the intensity of floods, the snowpack this year, the impact on the geology of the area that the member represents — mountainous, spectacular vistas that are being changed by climate change.
As we see more snow and a rapid melt and then a freeze again, fissures in rocks create opportunities for frost to grow to ice and then to melt and then to have the avalanches or the rockfalls that we have evidence — photographic evidence — are significant and important for us to address.
I do know, based on the notes I have before me, that this design work to try and find something that is certainly more adequate than the traditional safety equipment — the netting and the rockfall fencing that do not work in the area of the member’s constituency — is underway.
I will ask the minister for an update on the geoscience. I think that’s an appropriate and helpful suggestion. I don’t know what work has been done in that regard, but I do know, by the preamble to the answer to his question, that it strikes me that we all have to come to terms with the changing environment that we live in, where more intense and severe winters and more intense and severe summers are going to lead to changes, not just in the landscape but also in the geology. That’s obviously apparent in an area that has had a history, as the member knows full well, of avalanche and rockfall.
[L. Reid in the chair.]
I do know that the three-year budget for the area is $464 million. That is increasing year over year, from this year, next year and the year forward. These are significant investments, and they may just scratch the surface. But the member should continue to advocate directly with me, and his constituents are welcome to do that. The minister responsible understands this. You had an opportunity to direct questions to her specifically on this matter. The dollars are in the budget. The design work is being done.
I will take back the suggestion of doing some geotechnical work to see if there’s a baseline. I’m hopeful there’s a baseline. I wouldn’t have been there over the past 16 years to establish that, but I’m hopeful that the geology has been reviewed and the geoscience is understood. If there has been a shift in activity, then we need to shift our perspectives and how we apply the dollars that are in the budget to make those roads safe.
D. Clovechok: I appreciate those words, and I know that you take this very seriously. What I would ask…. You may not be able to answer this today, and I’d be happy to hear back from you. Out of the budget dollars that you have just quoted, how many of those dollars are designated specifically for the Three Valley Gap mitigation?
Interjection.
D. Clovechok: I can repeat it. I’m asking, based on the dollars that you just quoted in terms of the Trans-Canada Highway, how many of those dollars are actually allocated directly to the Three Valley Gap mitigation project.
Hon. J. Horgan: I don’t have those numbers at my disposal, but I will commit to the member to get that answer from the minister and get it to him as quickly as possible.
D. Clovechok: I appreciate that and look forward, as soon we possibly can get those numbers.
Let’s just, for a hypothetical sense, assume that there are no dollars associated with that budget for the Three Valley Gap issue. Let’s just assume that that might be the case. Would this government be willing to provide extra dollars to deal with this issue? It needs to be dealt with right now. We can’t wait for another month. We can’t wait for another two months. We certainly can’t wait for another year.
Would the Premier be willing to commit to at least looking at the potential of putting some extra dollars towards…? Whether it’s a geoscience survey or whatever that takes, something needs to be done.
Hon. J. Horgan: Certainly, I commit to ensuring that if there has not been geoscience work done in the past ten months or the past ten years, we get on that right away, because I do genuinely believe that our landscape is changing. We see that with fires. We see that with floods. We see that with avalanche and rockfall. We need to have a baseline, and if that work hasn’t been done, it needs to be done, so I’ll certainly commit to that.
With respect to the budget numbers, until I know what they are, I can’t commit to increasing them or not. But we’ll get that information for the member, and I commend him for his tenacity on behalf of his constituents. Again, he said quite clearly that this is not something that I created, and I’m hopeful it’s something that I can solve.
D. Clovechok: I appreciate those words very much. If you can solve it, then I tip my hat to you.
Weather, no question, is an issue here. I live in a mountainous area, and we know that we’ve got issues, whether they’re slides or what have you. But I do want to make sure that the Premier understands that it’s not just the weather that’s creating this. There’s something very wrong going on there. When you get boulders the size of that, those don’t come from cracks and fissures.
With that, again, I want to thank you for that. I think that Shannon, back in Revelstoke, has heard today that you’re aware of this and that you’re going to act on it sooner than later — sooner, hopefully. When you leave here today, you’re going to be getting on that phone and talking to your minister and saying: “Let’s move on this.” It’s not because the MLA from Columbia River–Revelstoke asked to you do it. It’s nothing to do with me. It has to do with public safety and the health and well-being of the people in Revelstoke. Respectfully, Mr. Premier, that’s your job as the leader of this province.
I want to thank you for the opportunity, and I’ll take my chair.
Hon. J. Horgan: I would just say to Shannon, either if she’s watching or if she gets a chance to read the Blues, that I now have a picture of her car — the devastation of her former car. I want to say to her that I’m grateful she is recovering and that I’ll keep a copy of that picture in my office as a reminder of the challenge in this area and the work that needs to be done.
L. Throness: I have a few questions for the Premier as well. First of all, I want to thank him for leading us on a tour of the Fraser River last week. It was great that he came out to our community. We very much appreciated him including MLAs on all sides of the House and making a non-partisan event, because we all pull together as British Columbians in the face of emergency.
It seems that we have dodged the bullet this year. The Fraser is going down a little bit. We’re not out of the woods yet, but we’re hoping for the best, and so that’s good news. But we need to keep in mind the very keen sense of anxiety that we all felt last week as we were flying over the Fraser. We need to remember that feeling, because the next freshet is coming next May.
In the 2017 budget, the former government put $20 million in for flooding, and that comparatively small amount, when you compare it to the total need, went a long way. I’m wondering if the Premier has considered putting in some money this year. Perhaps if we have a lower fire season than we anticipate or something like that, whether some funds could be put toward municipalities to help them better protect themselves next year….
Hon. J. Horgan: I want to thank the member, the Leader of the Official Opposition, his colleague from Chilliwack, as well as the member for Cowichan Valley. That was a very informative tour we did together. As the member says, gratefully and thankfully, we are not anticipating the significant flooding in the Fraser that was predicted at the time of, or just prior to, our visit.
It did bring home very clearly…. The member and I shared a helicopter together. I can’t say that about everybody, you know. There are very few people I can say that about. The member and I shared a helicopter together. It was an opportunity. I think it’s events like that that bring us closer together as legislators.
The prospect of driving around the Cariboo with the member for Cariboo-Chilcotin…. As daunting as that may be, I’m looking forward to it, because it creates opportunities for dialogue. It creates opportunities for a better understanding of the challenges in areas that I don’t represent. I know, chapter and verse, Langford–Juan de Fuca. And I would invite everyone to come there and spend their summer at the Sooke Potholes. Were it not for a fish closure, we could have fishing in Sooke. You have to go all the way to Port Renfrew to catch a chinook now. But it’s engaging with people in communities that allows us to better understand the challenges that people face.
The diking question that the member is alluding to is part and parcel of how the provincial government can help municipalities prepare for the eventuality of another high snowpack and a rapid melt. It’s something that I now take more seriously. I don’t want to suggest that I diminished the importance of it prior to this, hon. Member, but nothing is better than seeing and having someone with local knowledge, as I did in the tour with the member, tell you and advise you of what the changes are that are happening in real time, as a crisis is emerging.
I learned a great deal from the trip, and I’m going to take that information back to the budget-making process next year and ask the very questions that the member has raised here as we’re preparing for Budget 2019. Do we have additional resources within our revenues to make expenditures, as the member suggests, to better prepare people? The ounce of prevention may well be very, very advantageous to the pound of cure that could result from a catastrophic flooding event along the Fraser, particularly in the member’s community.
L. Throness: I would simply remind the Premier of the enormous risk to infrastructure in the Fraser Valley. Some $30 billion is at risk. A comparatively small amount of money would help to reduce that risk.
It also appears that we have weather patterns that are changing, where we have a high snowfall and an early spring with hot weather early on. So we very much fear that we could go through the same freshet again next year, and we hope that this fiscal year, there could be some money applied to municipalities.
I want to go on to talk about the tour that we were on last week, where the Premier met with Clem Seymour at Seabird Island. We made a stop there and heard from him. He talked about the traditional knowledge that he has of the river. The Premier encouraged me to remind him of this, and so I’m following his instructions today.
Would the Premier be willing to meet with Clem and other First Nations to talk further about how we can mitigate the problem of the rising riverbed near those First Nations and other lands, which is causing them many problems? We would be happy to invite him out, or we’d come to Victoria. We’d make it as easy as possible for the Premier. We would like very much to speak to him about this issue and apply the traditional knowledge that First Nations have, in particular, to the solution to this problem.
Hon. J. Horgan: I thank the member for mentioning the visit we had with Chief Seymour at Seabird Island and the magnitude of the loss of land as a result of shifting weather patterns, the rise and fall of the river over time and the impact that has on that Indigenous community — and equally importantly, the impact it has on the lifeblood of British Columbia. The Fraser is iconic for many, but it is the lifeline for the member’s constituents and others in the region.
The silver lining in the lack of a catastrophic event this spring is that it allows us to better prepare for that eventuality in the future. That means making the investments now that will assist municipalities, so that we don’t have to think of the unthinkable should a high snowpack and rapid melt happen again next year or the year after that. That’s important.
I’m not certain when my schedule will allow me to visit Chilliwack again or to meet with Chief Seymour, but I have asked my deputy, already, on the return from the trip, to get my head around what we can do about the changing landscape, the hydrology of the Fraser River, particularly with respect to Seabird because of the controversy around gravel mining.
We’ve already had illegal gravel mining in the area, as the member knows, up and down the river. That has an impact on where the river goes and how it flows. We have issues around extracting water from the aquifer for commercial purposes. That is controversial as well. There’s a whole host of issues around the Fraser that I think we need to direct our attention to.
Again, the value of having the opportunity to be with the member, who has local knowledge and local relationships, is that I now have a better understanding of the challenge. I commit to him, as I did to Chief Seymour, to get back to him on how we can proceed with that.
E. Ross: To the Premier, for this session and the last session, I was trying to understand the mandate that was given to ministers, through the mandate letters, on implementing UNDRIP. I couldn’t get an answer.
In talking with the Attorney General yesterday, I think I’ve gotten an answer in terms of where the Attorney General sees UNDRIP being implemented. That was in relation to section 35, especially the jurisprudence under section 35, the constitution, which is really what I was getting at. I felt that UNDRIP was a political statement of principles, versus the case law of Aboriginal rights and title that the province has been trying to form policies under for the last 36 years or so.
There are two issues with implementing UNDRIP, and I want to categorize them. In terms of delivering programs and services…. For instance, working with the Aboriginal Justice Council in terms of working out the justice system and how you implement some of the principles of UNDRIP is great. That’s perfect. What you do in terms of health — that’s good. You want to put a highway in. That’s good.
But really, what I was getting at was: how do you implement UNDRIP in relation to the infringement of rights and title, especially when we’re talking about the duty to consult and accommodate and, ultimately, the decision that government has to make at some point when they’re dealing with the infringements of rights and title?
In one case, it’s fine to consult and work with a group — with the Aboriginal Justice Council, for example — in terms of implementing UNDRIP. But in another case, when you’re dealing with rights and title, that is not a preferred method, mainly because the rights and title are held on behalf of the community, which by the way, your Attorney General confirmed as well.
So in trying to implement UNDRIP, in terms of infringements of rights and title, does the Premier have a plan for how to communicate any policy decision-making or any types of methods to deal with that at a high level, a general level, not a specific level?
Hon. J. Horgan: There’s a lot of content in the member’s comments so I’ll just start with bits and pieces. I assume we’re going to have an exchange of questions and answers here so I’ll try and not be comprehensive at the beginning. We’ll build to more complete answers when the questions become clearer.
Certainly, I agree with the member that rights and title and true partnership and reconciliation are the objectives of any government interaction with Indigenous communities in an UNDRIP environment. We’ve been working with what we call a principles document that was begun by the previous government, working with the leadership council. We’ve made some amendments. There have been some suggestions by the leadership council that elements that were removed by the previous government be returned to the document. So we’ve been back and forth on that.
Ultimately, however, it’s not just the leadership council that government needs to engage with on principles of reconciliation; it’s directly with Indigenous communities in every corner of the province. I know the member for Skeena fully understands that from his former leadership role in his community.
Our objectives are to find ways forward through what have been very complex issues — through section 35, through the Tsilhqot’in decision and the consequences of that, as well as successive Supreme Court rulings. Our view, my personal view and what I’m trying to move through my government, whether it be through the Minister of Indigenous Relations or others, is to find areas where we can have genuine partnership and reconciliation, community by community with rights holders, as they emerge, so that we can have genuine reconciliation over time.
Now, that takes a different shape, as the member knows, based on the community and based on the issue. But I believe that working with the federal government, which is also embarked on a path of reconciliation and embracing the principles of UNDRIP, makes for a very exciting time in British Columbia. We have two governments coming together at a time in history where there’s a genuine desire within communities, Indigenous and non-Indigenous, to have true reconciliation and to ensure that certainty on the land base will lead to economic activity that benefits all British Columbians, Indigenous and non-Indigenous.
E. Ross: That’s correct. There was a lot of content in that question — only because there are very few people in B.C. or Canada that understand the real principles behind the case law that’s pursuant to section 35 of the constitution, and I’m including Aboriginal leaders. You really have to have a law degree to understand the principles behind it, let alone trying to implement that in a government decision-making context, let alone political.
That was my whole concern around implementing UNDRIP. I didn’t understand it in the context of the case law around section 35. That’s all I’ve been trying to do for the last two sessions. I’ve been trying to clarify how this would be implemented, given the extensive reviews, I’m assuming, that the previous government did, either through the Justice Institute of B.C. or with outside legal expertise.
My mistake in not clarifying another question yesterday with the Attorney General. He confirmed everything that I thought about case law versus UNDRIP yesterday, especially viewing UNDRIP through the lens of section 35. That was all I was getting at. I was glad…. I forgot to thank the Attorney General for that clarification.
But it was my mistake that I didn’t clarify one of the questions I had. Ultimately, what I was trying to get at was: has this government done a full assessment, a legal assessment, on how the government will implement UNDRIP in terms of the jurisdiction, in terms of the decision-making, in terms of any policies that the government will be implementing or trying to assess on its own?
I wasn’t really looking for any type of information that would breach the client-solicitor privilege. I wasn’t looking for that, like on a specific file. I was just trying to understand if there had been a full legal review on implementing UNDRIP, especially when this government acknowledges that they’re viewing UNDRIP through the lens of section 35 and the jurisprudence underneath that. That was my question.
So I’ll ask the Premier: has the government done, or plans to do, a full legal assessment of implementing UNDRIP through the lens of section 35 of the constitution?
Hon. J. Horgan: I very much thank the member for his interventions in these estimates today. This is an area of particular interest to me. Why I crafted the letters to my ministers the way I did was so that we could try and resolve what is a complex area.
The member makes reference to case law and section 35. We had Calder. We had Sparrow. We had Haida. We had Delgamuukw. We now have Tsilhqot’in. Governments have been playing catch-up as the courts have set new boundaries and parameters around rights and title as it pertains to section 35 and other issues.
That, in my mind, coming into government, was an issue that we should try and get in front of, rather than continuing to play catch-up. We’ve had multiple, extensive meetings of cabinet specifically on the questions of rights and title, reconciliation and how we manage a treaty process — which is a quarter of a century old, meeting the needs of some and absolutely not meeting the needs of other communities, and then those who did not participate at all.
I know that this is nothing new to the member. He knows these issues very, very well. He also understands the challenges of making sure that we harmonize the federal and provincial, the two representatives of the Crown, when we’re engaging with Indigenous communities when it comes to their rights and title and recognition of those rights.
What we’ve been trying to do is to get ahead of the case law rather than react to it. We’ve been doing our level best, in the direction I’ve given to the ministers, to look at all of the legislation that they’re responsible for and view it with the lens of how we amend this legislation to meet the principles of UNDRIP. That’s the starting point, and it’s not something that will happen with a date certain. It will be a process that will evolve over time.
The ten principles that the federal government announced recently have also been very timely for us, a new government that is directing officials to move toward an understanding of how we can take the federal principles and amend them to meet the needs of British Columbia. Of course, as the member will know, unceded territory in British Columbia makes it a much more complicated situation than you would find in other jurisdictions where treaties have been established and rights and title are differently interpreted.
From a unique B.C. perspective, we’re anxious to work with the federal government — as the member knows well — on the principles. We have an Indigenous Justice Minister from British Columbia who understands full well the issues here. We want to work cooperatively with the federal government to make sure that when we meet with Indigenous communities in the fall and the regular meeting of the leaders gathering, and every day after that, we’re making progress on the issues that the member cares so passionately about.
S. Bond: Good afternoon to the Premier and his staff.
I want to just make a comment about one issue that’s been raised by one of my colleagues, and then I have a specific question before I return the floor. I know the Leader of the Opposition has a lot of questions.
I want to encourage the Premier to have a discussion with the Minister of Finance about the real estate situation. During the estimates process, we took the time to ask questions and to probe about whether or not it was possible to encourage, through a….
It’s a regulatory process. The Finance Minister has every opportunity to say to the superintendent of real estate: “This is going too quickly. There are details that are very complicated for real estate brokers and agents across British Columbia.” There is time to take a pause and actually look at that issue. Hundreds of realtors across British Columbia are upset about that, and I would encourage the Premier to follow up, as he committed that he would.
My question relates to the employer health tax. I simply want to ask a couple of questions. The Premier, in an editorial board in the Vancouver Sun, said that the tax increases that were in the platform were the only tax increases in the first term of his government. I’m wondering if the Premier could explain how that changed and British Columbians were surprised with the introduction of an employer health tax?
Hon. J. Horgan: I thank the member for her participation today in the estimates process. What we said during the election campaign — and what I’m proud that we’ve been able to accomplish in the short time we’ve been in government — was to do away with the flat, regressive, medical services premium tax. That was part and parcel of the platform.
That platform also included ensuring that the revenues were there to provide the services people need. We have opted for an employer health tax, consistent with taxes similar to those used in other jurisdictions. We will now be the last and final jurisdiction to do away with flat medical services premiums. I’m very proud of that.
S. Bond: I’m not here to debate whether or not the government said they were going to eliminate the MSP premiums. What I am here to point out is that the Premier told British Columbians that the only taxes that would be increased were the ones in the platform. So he managed to surprise small business, municipalities, colleges, non-profits, with an ongoing — and, in many cases, higher — tax. Those are simply the facts.
Well, the Premier can smile, but those are the facts.
My concern today remains what it was when we had a discussion with the Finance Minister. There have been continual promises made by a variety of ministers and the Premier, telling British Columbians who are impacted by this tax, employers, but the most difficult one to understand is non-profits. They have been told by this government that they’re going to make them whole. They’re going to fix it; they’re going to do something. While the Premier continues to say, “The details don’t really matter. We’ll figure that out. It’ll happen because the taxes aren’t in place yet,” non-profits today are waiting for an answer from this government about how they will be expected to make up significant impacts on their organizations.
My question to the Premier is: is he prepared today to assure non-profits, in particular — and others impacted by the employer health tax — that he is going to meet the commitment that many ministers on his side made and hold those organizations whole?
Hon. J. Horgan: We want to make sure we get the implementation right on this. It won’t take effect until January 1. We continue to consult with a broad group of stakeholders. We’re listening attentively to the input we’re getting from all corners of the province, and I’m confident the member will have her answer shortly.
B. D’Eith: I seek leave to make an introduction.
Leave granted.
Introductions by Members
B. D’Eith: I’d just like to introduce Helen Homer, who’s come here from our constituency. She’s in the gallery. Thank you very much.
Debate Continued
S. Bond: I guess I simply want to urge the Premier and his Minister of Finance to end the anxiety and the concern that are being expressed by organizations all across British Columbia. There’s been lots of feedback. In fact, I am prepared to wager that pretty much every MLA in this House has had a deluge of emails, concerns and visits — organizations marching into our offices saying: “We can’t manage this. It means laying off staff. It means cutting services and ending programs.”
If the Premier is prepared to say publicly, which he has, that we’re going to fix this, I think it’s time to fix it now and make sure that these organizations can end the anxiety that they feel, that the people that they work with feel.
I simply want to end my comments by saying that it’s time to either fix it or clarify the details for the people of British Columbia who are going to be deeply impacted by the surprise tax that this government imposed on them.
A. Wilkinson: I’m going to take the Premier back to the budget book, page 80, if he’d like to have a look. On the right-hand column, it refers to the speculation tax and says:
“The tax will be administered by the province outside of the normal property tax system and property tax cycle. The province will issue notices by mail that will direct residential property owners to a Ministry of Finance website that will contain an electronic tax form….
“To make the administration easier, the form will collect relevant information from the taxpayer, including social insurance number, household information, information on worldwide income, information relating to upfront exemptions and other information identified by the Ministry of Finance.”
It goes on to say that the relevant information will be shared with the Canada Revenue Agency.
The question to the Premier is: when is this notice going to go out, and when will the information be collected?
Hon. J. Horgan: I welcome the questions from the Leader of the Official Opposition. Legislation to implement the speculation tax won’t be in this Legislature until the fall, so the information can’t be collected until that time.
I would also, while I’m on my feet…. In questions yesterday with respect to western marine bases which were part of the approval process of the Trans Mountain pipeline, not part of the ocean protection plan…. As we were engaging in the conversation, an announcement was made that the WCMRC projects, the six bases, would resume, effective yesterday evening. So those issues that we were mixing between the ocean protection plan and the requirements of the proponent appear, at least on the surface of the requirements of the proponent, to be back on track. I wanted to share that with the member and the committee at the earliest opportunity.
A. Wilkinson: Roughly three hours ago the Premier gave a press conference outside in which he said that the speculation tax and the employer health tax do not apply until next year. Is that correct?
Hon. J. Horgan: Yeah, they do not take effect until January 1, 2019.
A. Wilkinson: If we turn to page 66 of the budget document, it says that in the 2018-19 fiscal year, there’ll be $87 million of speculation tax collected. If the legislation is not available until September, disclosure documents are not going to be available and returned until at least Christmas. One has to wonder how on earth you’re going to collect $87 million in the remainder of this fiscal year.
Hon. J. Horgan: The revenues that are booked will be collected on the basis of the 2018 property tax year and the 2018-19 tax year. That’s how you get the amount from January to the end of the fiscal in the ’18-19 tax year.
A. Wilkinson: I’m going to suggest to you, Premier, that that answer has no credibility whatsoever. The legislation won’t be ready until the fall. It won’t be passed and won’t get royal assent until later in the fall. Then there’ll be the collection of information from over one million households — one million households. That information has to be processed, and exemptions have to be examined to see whether this speculation tax will apply to that household.
Then there has to be a collection period. The collection period will take months, as there’ll be delay in filing by tens of thousands of homeowners who don’t know whether the rules apply to them. And then there’s the collection period as well.
It is completely implausible, Premier, that you’re going to collect a STOB period of three months of revenue on an annualized basis. Can you please explain to the people of British Columbia how your budget has any credibility, when there’s an $87 million hole in it because you didn’t figure out how to collect taxes on a new program?
Hon. J. Horgan: Well, I guess I just don’t share the member’s pessimism. New programs…. The child care program, for example, has had tremendous uptake. We’ll see legislation this fall, and the member will have his opportunity to debate its value at that time.
A. Wilkinson: With all due respect, that answer is even worse than the previous one. You need royal assent to introduce tax legislation. You need to have taxation policies imposed and fully implemented. Your deputy minister is abundantly familiar with the process of tax application, administration and collection. It will take at least six months to collect the necessary information and to collect the revenue associated with it.
Premier, I’m going to ask you one last time: is there an $87 million hole in your budget? You have generated a budget that is based on a completely implausible tax administration program that is not possible in terms of implementation. So one last time, Premier: will you have an $87 million revenue from the speculation tax in this fiscal year? Or is that simply not plausible?
Hon. J. Horgan: There is no hole in the budget. We’ll meet our targets.
A. Wilkinson: In recent years, the term “plausible denial” has come up, and that simply does not apply in this circumstance, Premier. That answer has no credibility whatsoever.
So let’s go on to another zone. Let’s talk about your freedom of information and your staff. A quote from you, October 28, 2015: “The public is not well served when senior representatives — being paid a princely sum, to boot — are not recording their actions on a daily basis. That is, in my opinion, an affront to our basic institutions.” John Horgan in the Times Colonist.
The Chair: Mr. Leader, just provide a title.
A. Wilkinson: Yet we found out in recent days that the Minister of Citizens’ Services, the Minister of Advanced Education, the Minister of Public Safety, the Government House Leader, the Minister of Indigenous Relations and Reconciliation, Kate Van Meer-Mass, Layne Clark, Suzanne Christensen, Stephanie Papik, Christine Kennedy, Amber Nash and Maria Del Matta disclosed no records whatsoever when asked for disclosure of all emails, text messages, BBMs, Slack messages and WhatsApp messages.
Premier, how can that possibly be reconciled with your remarks to the Times Colonist two years ago?
Hon. J. Horgan: I did set a high standard with respect to the new government’s ability to live within the rules of the Freedom of Information Act, and we haven’t met that standard. I asked my deputy minister to have all information that had been removed from computers as “no records” responses brought back into the system. They’re being gone through now, and we’re reviewing the freedom-of-information requests that came from the opposition for information.
The good news is that there was no mandate to triple-delete information, as was the case with the previous administration, so it was an easy matter to retrieve the information. Now the hard work of going through those records to ensure that we’re complying with the Freedom of Information Act is underway.
I will also say that we are renewing the training procedures for new staff and existing staff to make sure we live up to the high standard that I expect from my office and other offices as part of executive council.
A. Wilkinson: So the obvious question arises: has the Premier reported these people to the Information and Privacy Commissioner so that they can go through the appropriate level of sanctions or retraining or otherwise be corrected in their ways by the Privacy Commissioner, when they completely failed to meet the standard that he laid out in the media less than 30 months ago? What is the sanction for this behaviour?
Hon. J. Horgan: My deputy has been in contact with the Information and Privacy Commissioner, and he has been advised of the actions we’re taking to see if any information that should have been released was not released. We don’t know that that’s the case. These could all be transitory records.
We have also, through my deputy, been in consultation with the commissioner and advised that we’re going to be increasing the rigour of our training processes for existing staff and any new staff so that we can meet the high test that I expect, not just from myself and my colleagues but from those who work for us as well.
A. Wilkinson: Of course, having been involved in electronic discovery myself in the past, it is extremely expensive to reinstate emails from servers when the emails have been deleted. This is a tedious and costly process. So the obvious question arises: why did this happen in the first place? Did the Premier not instruct his staff at all in terms of the standards he expects for their ethical and professional behaviour?
Hon. J. Horgan: I’ll just dispute one of the statements the member made with respect to the cost of retrieving this information. The new government does not have a mandate to triple-delete information, so retrieving it has been less costly than he would suggest. Perhaps the technologies have improved over time since he was doing discovery.
I would also say that we did our level best — I did my level best — to give instruction to my senior staff to ensure that all members of the executive council and all of the staff that work for them had sufficient training to meet the standard that I set. That training took place on multiple occasions, a dozen training sessions over a reasonable period, a number of months, after the new government was sworn in.
Again, I would argue that when these issues arose, I took responsibility for them, as I should. I did set a high standard because of the appallingly low level of retrieval of documents under the previous administration that led to a report from the freedom-of-information and privacy commissioner with recommendations that we will do our level best to adhere to. We missed the mark, Member. I acknowledge that. And I’m going to do everything I can to make sure it doesn’t happen again.
A. Wilkinson: Well, Premier, given the high profile of this matter during your time on this side of the House, given that your Solicitor General, who is responsible for law enforcement, was one of the perpetrators here, and given that your Minister of Advanced Education has experience in this House and should have known better from all of the vitriol that came from this side of the House when we were in government on this very issue, and given the gravity of the situation, resulting in criminal convictions related to this, certainly someone’s head should roll over this. Was the training deficient? Did your senior staff fail to implement the training? Who dropped the ball, Premier? That’s the question.
Hon. J. Horgan: Just for the record, the criminal convictions the member refers to were Liberal Party staffers. I want the record to certainly reflect that.
The question of lopping off heads in a show trial format, as the member suggests, is not in the interest of better outcomes, I would argue. I think that reinvigorating the training process…. Certainly, my senior officials who are here know full well my profound disappointment in this matter. I again reflect that directly to the member, through you, hon. Chair. We’re going to do better. That’s as simple as that. I’m not going to punish people for not doing the best they could, but I expect a high standard, and if I don’t see it, we’ll take action at that time.
A. Wilkinson: Before I move on, it seems that it can be summarized that the Premier’s approach is: “There are lots of rules. You’ll get trained in them. We’ll attack the government when we’re in opposition on this very basis.” But when it comes to this Premier forming government: “Don’t worry about it. If you blow it on repeated occasions — dozens of people in senior positions, including senior ministers with $2 billion budgets — it’s just fine. There’s no sanction. Don’t worry about it. We’ll blow off the opposition.” Is that correct, Premier?
Hon. J. Horgan: Well, sanctimony sits well for the member. I welcome him to carry on this line of questioning. I have acknowledged my responsibility in not making it abundantly clear to my colleagues in the executive council and staff that I hold them to a higher standard. But I’m not punishing anyone for not meeting that test. I’m redoubling our efforts to make sure the training is in place so they can do a better job in the future. That characterizes a better way to get good outcomes than punishing people who made mistakes.
A. Wilkinson: Well, before I move on, perhaps it’s a fair summary that punishing people for breaking the law doesn’t seem to be in the mandate of this Premier. People can ignore the rules even though they’re trained to do otherwise, and there is no sanction whatsoever. It’s just: “Carry on, and we’ll cover for you.” That’s a pretty sad ethical standard to set, for this government, but perhaps we’ll have to get used to that.
Moving on, perhaps the Premier can provide one specific example of what his Municipal Affairs Minister has done in speeding up the municipal development approval process.
Hon. J. Horgan: I’ll just remind the member, going back to the previous question, that the criminal activity that was undertaken by representatives of the B.C. Liberal Party that led to charges and a conviction were outside of the bounds of the act. There are no sanctions in the act. I’ll remind those here that a woman, Ms. Cadario, the deputy chief of staff to the former Premier, was triple-deleting on a regular basis. There were no sanctions for her. A guy named Nick Facey who worked for the B.C. Liberals was doing the same thing. There were no sanctions for him. Those who committed criminal acts, were charged and convicted — it was on the B.C. Liberal watch.
I want to set a higher standard for freedom of information and privacy. Everyone expects that, they know it, and it’s going to continue into the future.
With respect to the very good work of the Minister of Municipal Affairs, she is working collaboratively with UBCM and regional municipal officials to make sure that we can find ways to break the impasse when it comes to development permits and bringing more housing supply into the marketplace to meet the needs of British Columbians, needs that were sadly neglected for 16 years by the previous government.
A. Wilkinson: The Premier describes the relationship with municipalities and development permits as an impasse. How is that going to help in alleviating a housing crisis?
Interjection.
A. Wilkinson: You said exactly that, Premier. No, you said there was an impasse over development permit issuance.
We can check the transcript if the Premier wants to go into further denial, but this is perhaps a continuation of denying the facts and denying the past. We can delete emails en masse and say: “Oh gosh, we’re sorry.” We can deny what we said moments ago.
Premier, let’s get down to the details. Has your Municipal Affairs Minister done anything at all to improve the speed of approving development permits in our municipalities?
Hon. J. Horgan: Well, certainly the Minister of Municipal Affairs is also responsible for housing and transit — I think a mix that the member will know is critically important.
[R. Chouhan in the chair.]
If we’re going to build a new housing supply and increase density, we need to be able to move people around. Making sure that transit hubs are an integral part of that development is, of course, important to everybody.
The minister has been working — a good example would be — in the Tri-Cities where, working together, the communities in that area are seeing positive outcomes, and they’re working hard to make sure that development approvals get in place in a timely manner. We’re going to continue that collaborative approach, working hand in hand with municipalities to try and get the outcomes that people want to see.
A. Wilkinson: Yesterday we canvassed, at some length, the issues related to Kinder Morgan. Of course, there’s now a new owner in the wings. Financial close is expected in August.
Of course, we all recall the April 15 meeting in Ottawa between Premier Notley, our Premier and the Prime Minister.
The obvious question is, with the federal government taking over the pipeline in complete ownership…. That invokes federal jurisdiction and federal ownership, just like a military base or an airport. So given that federal paramountcy both in legislation and in ownership, is there any point whatsoever in the Premier continuing his court reference given that the federal government will be the respondent?
Hon. J. Horgan: My legal advisers tell me that this is a contested area of jurisdiction. The specific wording of the reference and the regulation, as the member canvassed yesterday, does not talk about a particular project. It talks about a product and the consequences of that product to our natural environment. We believe it’s a worthy undertaking, and we’re going to continue with the reference.
A. Wilkinson: Has the Premier’s Office or, for that matter, anyone in this government had contact with the federal government about the futility of this court reference given that the new owner will be the government of Canada — that is, all of us, as taxpayers? If not, has the Premier obtained some legal opinions about whether or not it’s a useful exercise to continue this litigation?
Hon. J. Horgan: The new circumstances have certainly led to legal counsel working with the Attorney General to review what potential outcomes may well be. I spoke directly to the Prime Minister earlier in the week, advised him that we’re going to continue on with the reference case. He saw no problem in that. This is an area of contested jurisdiction, and we’re going to see how it falls.
A. Wilkinson: Has the Prime Minister ever suggested or advised the Premier that his court reference is an exercise in futility given the federal paramountcy and their ability to simply pass legislation, claim national interests and, just like a military base, say: “Get out of the way. It’s a federal project”?
Hon. J. Horgan: Well, obviously, federal officials have their view and we have ours. That’s why a reference to the courts is relevant to both parties — to get a better understanding of where the jurisdiction rests on these issues. The member would know that.
A. Wilkinson: By saying here today, and perhaps the Premier will deny this as well, that federal officials have their views and you have yours — that the federal officials apparently are telling the Premier this is an exercise in futility…. Will the Premier tell us today what the federal position is? Or is he going to hide behind solicitor-client privilege, which really doesn’t apply here?
Hon. J. Horgan: As I said yesterday, the reference is dealing with areas that we want to determine are within our jurisdiction to regulate. That’s why we’re in the Court of Appeal, as I said. The member may want to take my words and use them to his advantage. I’ll say it again. It’s well canvassed in the media that the federal government has their view. At no time has the federal government said to me that they have any legislation planned, as he suggests.
When I said to the Prime Minister this week that we were carrying on, he seemed to have other issues on his plate, and they’re significant ones. The member will know that. Another day, another tweet, another trade dispute. Our aluminum industry is again put at risk and steel in Canada is put at risk because of the actions of the U.S. administration. The federal government is working very effectively to try and represent the interests of British Columbia in that regard.
Again, I’d have to say that our relationship is a positive one, despite this one issue. It is our right as a province to seek clarification on jurisdiction, and that’s exactly what we’re doing.
A. Wilkinson: It is a good thing for British Columbia if the relationship is positive, because we’re deeply dependent on the federal government for the well-being of British Columbians. When I hear that the relationship is positive except this one, it would seem to indicate that the federal government has completely dismissed out of hand the Premier’s effort in the courts since they’ve taken ownership of the pipeline.
Perhaps we can just summarize the state of affairs. The federal government is now about to take ownership of the Trans Mountain Pipeline. The federal government is committed to building the expansion of the Trans Mountain Pipeline. They have said the expansion will be built. They have not put in money for the coastal protection program yet, because the Premier obstructed it for more than a year.
We now have difficult relationships with Alberta and Saskatchewan because of the Premier’s high-handed conduct, which has amounted to nothing, and we’ve used up a lot of federal goodwill in the process. We have a reference case in which the Premier is not willing to tell us what the federal position is. It certainly sounds as if the federal position is to dismiss it out of hand as an exercise in futility and a political stunt. We have the cost of employing Arvay Finlay to litigate the matter, even if it is futile.
Perhaps in summary we can say: what does the Premier have to show for his efforts over the last eight months except a potentially futile court reference, having lost all credibility with the federal government at the expense of all of us as federal taxpayers?
Hon. J. Horgan: Again, I would consign the member’s summary to the fiction section. I have a very positive relationship with the government of Saskatchewan. They continue to be a vital part of the relationship I have with people right across the country. The federal government is in regular contact with us on a host of issues.
Having a dispute on one issue often happens in communities. It happens in families; it happens in the Legislature. For the summary that was just put forward by the Leader of the Opposition that somehow the world has come to an end because there’s a disagreement between the federal and provincial governments…. Like that’s never happened in Canada? Come on, man.
R. Sultan: I seek leave to make an introduction.
Leave granted.
Introductions by Members
R. Sultan: In the galleries behind me, out of sight — somebody is peering over the rail, though, so I’m sure they’re there — we have 27 students from grade 7 of Cleveland Elementary School in North Vancouver, accompanied by three parents and their teacher, Suzanne Simpson, who teaches in the French immersion division of Cleveland Elementary.
Cleveland is one of the outstanding elementary schools in school district 44, and we’re very proud, on the North Shore, that these schools consistently rate near the top in terms of academic achievement and other activities. Would the House please make these students of political science welcome.
Debate Continued
A. Wilkinson: On the further issue of petroleum, pipelines and oil transportation, can the Premier advise what level of notification occurs to the provincial government when oil is shipped by rail down the Fraser Canyon on the CP and CN rail lines? And can we have an understanding of what the volume was during the period of 2013 to 2017?
Hon. J. Horgan: We don’t currently have that information at our disposal. Perhaps we can move to another question, and we’ll come back to this when the information arrives.
Interjection.
The Chair: Let me call…. I’ll recognize, and then you start.
Leader of the Opposition.
A. Wilkinson: Given the passage of time and that we’re in the last day of the session, I’m hoping that this isn’t an evasion tactic.
I’ll ask a very simple question. What level of disclosure is required of the railways, which are federal undertakings under the constitution and are not regulated by the province, in terms of disclosure of the cargos — whether they’re hazardous or crude oil or diluted bitumen or otherwise?
Hon. J. Horgan: We just had confirmed by both the Ministries of Environment and Transportation that that information is held by the federal government, and it is not currently shared with the province.
A. Wilkinson: From that answer, it’s abundantly clear that the Premier and the entire civil service have no idea whatsoever how much crude oil and diluted bitumen are coming down the Fraser Canyon every day, every week, every year. So the reference case that refers to the largest annual amounts in each of the four preceding years is of no utility whatsoever in regulating oil by rail because the federal government and the railways don’t tell you.
This appears to be a completely pointless exercise — to say that the province wants to get a declaration and will limit the expansion of diluted bitumen transfer and crude oil transfer by rail when that information isn’t available at all and the Premier has no idea and no jurisdictional way to find out how much is being shipped by rail.
Perhaps the Premier can clarify. What’s the point of having a constitutional reference that will limit the amount of diluted bitumen or crude oil travelling by rail when the Premier has no access to that information and no ability to verify it at all?
Hon. J. Horgan: Well, the very point of having the reference is to allow us to have the jurisdiction to collect that information so we can protect citizens along that rail corridor. That’s the whole point of the reference: to ensure that we are obliged to issue permits before the product can transit British Columbia. That’s the point.
A. Wilkinson: The Premier knows full well that railways have been coming to Vancouver from Alberta since 1885, and there’s been no disclosure of the oil and diluted bitumen content ever. The Premier now suggests he’s going to invent that authority with his constitutional reference, which is a laughable proposition.
The courts are not going to create jurisdiction that hasn’t existed for 133 years, Premier. So perhaps you can explain to us what on earth this reference is going to do to limit, change or otherwise regulate oil by rail, because it’s clear you have no control over it now.
Hon. J. Horgan: The point of seeking the jurisdictional clarification is so that we have the right to collect that information to protect British Columbians. That’s what we’ve been talking about since July of this year. Yesterday we had the member acknowledge that we didn’t want a Legislature filled with diluted bitumen. Neither do I. We’re on the same page on this one. We’re seeking the jurisdiction to protect British Columbians.
A. Wilkinson: Well, thank you, Mr. Premier, but you haven’t had that jurisdiction for 133 years. Now you’re going to try to invent it out of thin air. Now we find that the Premier is trying to create nothing out of constitutional thin air. The federal government and the railways are going to ignore him. Perhaps he’ll drag out his court reference as long as he can, because the answer is going to be an embarrassing one.
Can the Premier tell us what he has salvaged out of this Kinder Morgan fiasco except to send a $12 billion bill to us as federal taxpayers? Has he accomplished anything at all?
Hon. J. Horgan: Well, the federal Liberal Party believes that this is a solid investment and that they’re going to be able to recoup their costs with profit down the road. I guess he can disagree with his federal colleagues on that question.
The whole point of the reference is to establish jurisdiction. For the member to talk about 1867 is not relevant to this proceeding in court. We are trying to establish jurisdiction today to protect British Columbians. That’s what we’re getting out of this process.
T. Redies: Good afternoon, Premier.
I have been speaking with the Premier and the Minister of Transportation for numerous months now with respect to an issue in my riding, which is the BNSF rail line that goes through a very crowded, heavily populated area. There are substantial risks of a Lac-Mégantic type of accident because there are trains carrying anhydrous ammonia, heavy oil, a lot of very dangerous things. We asked the provincial government to put up $300,000, along with federal participation, to look at a feasibility study to move the rail line.
Yesterday we had an incident, an incident that was one of the risks that I had raised with the Premier previously, in that the train basically was stuck for 45 minutes. It cut off Crescent Beach from any emergency access. Thankfully, nobody was hurt and there was no emergency, because there would have been no way of getting into Crescent Beach.
The Premier has put up $300,000 for the high-speed rail line. I am just asking again for his assistance to deal with this problem so that we can get moving on it.
Premier, I am just looking for your continued help. Could you please explain to me when we can get this funding going?
Hon. J. Horgan: I thank the member for her continued interest in this issue. We spoke about it last year. We’ve been in correspondence since then.
The member will know I spoke with MP Gordie Hogg about this issue. He, for 20 years, sat in this place sharing the same concerns about the federal right-of-way that cuts off her community from the coast and also is a potential safety challenge of significant proportion. Having Member Hogg, who knows full well the issue, on the government benches in Ottawa I think puts us in a much better position to make some progress on this question.
She does know that this is a significant undertaking, to move the right-of-way. It certainly has my full support and is one of the issues that perhaps we can make some progress on going forward with the federal government. As she knows, Member Hogg knows these issues very well. Having him in Ottawa is a very positive outlook for us in the short term. Hopefully, we can make that significant change in the long term.
T. Redies: Premier, thank you for that. Can I take that as a commitment that the Premier will provide funding to protect the safety of people in my riding?
Hon. J. Horgan: I make an undertaking to work with the federal government to address the right-of-way question, working with her and Member Hogg and anyone else in the region that wants to side with us. But when it comes to funding of a corridor that’s managed and maintained by the federal government, I think we’d have to wait and see how receptive they are to movements. If there’re not, then we certainly have to look collectively — municipally, federally and provincially — at how we protect the safety of the citizens in your community.
A. Wilkinson: I’m just going to read out three quotes from the Premier, starting with April 10, 2017, on a video with Fair Vote Canada. “We will set up an all-party committee to hear from citizens and formulate a referendum question at the conclusion of that process — John Horgan.”
The Chair: Member, no names, please.
A. Wilkinson: The next one is from May 1, 2017. “You are going to have 50 percent say yes or no.” Mr. Shaw: “So you give them one system to vote on?” The Premier: “Yeah, exactly.” The Province newspaper, May 1, 2017.
The third quote, again from Fair Vote Canada, from their interview on April 10, 2017. “The amending formula for our constitution, for example, requires approval by seven provinces, with 50 percent of Canada’s population. So it is an absolute 50 percent, but it has to include 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 British Columbia.”
So Premier, it’s a simple question. Were all of those complete fabrications and just plain wrong?
Hon. J. Horgan: Certainly, the question of electoral reform is one that I canvassed extensively with a whole host of people over the election period and since that time. What we did is we put in place…. We tasked the Attorney General — the member has been an Attorney General, so he would know this — in the unique role that that member of executive council has at the cabinet table, to independently review and assess the best way forward to implement electoral reform in British Columbia.
He tabled a report yesterday. Cabinet has received that report. We’re looking at it with great interest, and we want to ensure that we give people the opportunity to have their say on this question.
That’s why we have passed legislation last fall after a vigorous debate in this House. We went through all stages of debate. The bill was passed, and we’re going to be proceeding with a referendum. A mail-in ballot will be the form of votes for the people of British Columbia, and they’ll have an opportunity to decide, 50 percent plus one, whether they want to have the existing system or a proportional representation system.
A. Wilkinson: That was a complete evasion of the question. The Premier has ignored his statements from the past, as is becoming common on this proportional representation process.
I’m going to ask him one more question, and this statement is less than four hours old. The reporter asked: “For the last two days, we’ve talked about the lack of maps. People will be voting, not knowing what their boundaries will look like. If you’re committed to people voting for this, is there no way you could direct Elections B.C. to fast-track the mockups of what this could look like for voters?” The Premier replied: “We could do that.”
So Premier, was that another fabrication you intend to stand up to, or is it something you intend to follow through on? If not, why on earth would you not follow through with that request to Elections B.C.?
Hon. J. Horgan: I did engage in a year-end scrum, as the Leader of the Opposition suggests, and I did say that of course we could ask the Chief Electoral Officer to draw maps. But the point here is this. I’ll say it clearly so the member can understand the intent of my comments from the beginning. We are asking the public to decide between keeping the system that they have or opting for another system, a proportional representation system. The Attorney General has put forward three scenarios for that to happen should people decide to change from what we have to something else. That will require, if the member follows through, three separate maps for different outcomes.
It seems to me to make more sense to await the verdict on question 1 before you start working on the solution to question 2, which is maps and boundaries that would be done in the normal course of events by an independent commission that was commissioned to do their best efforts to draw maps that balance the rural and urban issues that are part and parcel of life in British Columbia and that balance the needs to have groups of people in clusters of similar size right across the province.
The member knows full well what redistribution looks like and how much time and effort goes into that. To suggest, as it was suggested in the scrum today…. Could this be done? I said: “Well, it could be done, but is it practical to do that?” I would suggest it’s not. What is a better course of action, and the course that we’re going to follow, is to ask citizens what they want to do. If they want to make a change, what will that change look like? Vote 1, vote 2, vote 3. Whatever one of those comes forward, maps will be drawn up by an independent body — not by politicians, not by he or I, but by a commission that will put in place a new system for a better way to elect people to this representative body.
That is my commitment. The member on the other side has a different one. He wants to keep the status quo. He wants to keep things just the way they are. We disagree on that, and that’s fine. In a democracy, we’re entitled to have differences of opinion. He has his; I have mine.
A. Wilkinson: The path is apparently clear. The Premier could actually live up to his promise and have a yes-no vote on part 1 of the proposed referendum, which would maintain his integrity and leave the option open for map development later, or he can follow through on the Attorney General’s recommendation and have us all vote on something we don’t really understand and have no maps for, even though he said it could be done. The Premier needs to make a decision and guide his cabinet toward what we hope will be the first option, which would maintain his integrity and not play games with the people of British Columbia.
With that, I will hand the floor over to the member for Vancouver-Langara.
M. Lee: To the Premier, would he consider, then, holding the referendum on question 1 and hearing that result before proceeding to question 2 in a separate referendum?
Hon. J. Horgan: Yesterday we received a report from the Attorney General, and cabinet will be reviewing that report and making a determination in the near term.
M. Lee: Just about the report and the cabinet review-making process here. Is it the expectation of the Premier that cabinet will either accept the recommendations of the Attorney General in that report in its entirety or will vary from that report?
Hon. J. Horgan: I can’t predict what cabinet will do until we’ve met and deliberated.
M. Lee: Does the Premier have any concern regarding the perception of British Columbians as to the notion that a report has been generated by the Attorney General, in the role that the Premier has asked him to do, and now cabinet will have the ultimate decision as to how this referendum will come about — the question, the process, the kinds of considerations that the Leader of the Opposition just outlined? Is there a concern that the Premier would have as to putting cabinet in the final decision-making position as to how this referendum will be conducted?
Hon. J. Horgan: Again, as I said in the earlier response, cabinet received the report yesterday. We’ll be reviewing it and deliberating and making a decision in the short term.
M. Lee: Just in respect of the timing of when cabinet will be making that decision. When can we expect that the government through cabinet will be making the decision as to how to proceed with this referendum?
Hon. J. Horgan: Soon.
M. Lee: When can we expect that the regulations that include ensuring the availability of information respecting the matters to be voted on will be issued?
Hon. J. Horgan: Following the decision.
M. Lee: When can we expect that Elections B.C…? I understand that Elections B.C. just received a copy of the report yesterday. When will Elections B.C. be provided with the opportunity to proceed to put in place what is necessary for the conduct of this referendum?
Hon. J. Horgan: Following a decision by cabinet.
M. Lee: Will the Premier commit that the regulations will ensure that there’s an accurate and realistic sample ballot that will be provided to voters for each system of proportional representation being proposed?
Hon. J. Horgan: I think we would be looking to Elections B.C. to assist in the development of those materials.
M. Lee: Will the Premier commit to ensuring that voters will understand the impact of each form of proportional representation on voters and British Columbians locally?
Hon. J. Horgan: It’s our expectation that there will be a full airing of views on this issue during the campaign period and prior to that, and as much information as is possible would be available to the public so they can make an informed decision. That’s the outcome all of us would want to see.
M. Lee: Well, we’ve had some debate and discussion in this House in the limited opportunities that we’ve had since the report was issued yesterday. In terms of the 24 items that need to be reviewed by the committee of this House and the Electoral Boundaries Commission, does the Premier have any concern that British Columbians will not have the ability to know precisely what they’re voting on when they’re being asked to choose, potentially, between three different forms of proportional representation?
Hon. J. Horgan: Certainly, we’ve done everything we can to make sure that there’s been an arm’s-length process in place. The member will know the unique role, as I said to the Leader of the Opposition, a former Attorney General…. The Attorney General has a unique role at the cabinet table, and he has exercised that. I saw the report at the same time the member did. Cabinet was not briefed prior to its release. It was released, and we read it at the same time.
We’re hopeful that there’s a broad interest in this. Based on the consultation that the Attorney General undertook, there is broad interest across the province in this issue, and we hope to continue to see that grow as we get closer to the decision that the public will make at the end of the day.
While I have the floor. I’ve just been handed a statement by Elections B.C., and I want to read a portion of it. I don’t know if the member has this yet. It says a number of things — certainly that Elections B.C. will be producing non-partisan information and resources about the PR options and the referendum, including general information about how electoral boundaries might change under the proposed systems. “We will not be producing actual maps that show electoral boundaries under the proposed systems for a few reasons.”
I want to read this one to the member because it’s been consistent with what I’ve been saying, and I think it clarifies the position that the Opposition House Leader has been saying. It goes as follows: “Drafting electoral boundary maps has always been left to the independent electoral boundaries commissions, and is not part of our legislated mandate.” In the 2009 referendum, for example, the maps that compared first-past-the-post to BCSTV were produced by the boundaries commission that was operating at that time. That’s my comment, Member. It does take a fairly significant amount of time and resources to produce these maps. And the statement goes on.
We’ve been trying to make this point to members. I don’t know if it was fully canvassed in the debate this morning, but there were no maps in 2005. There were maps in 2009 because we had a boundaries commission that was operating at that moment and it was convenient to do so — or more convenient to do so.
I believe that the public will have adequate information to make an informed decision about whether they want to keep the existing system — the status quo that has led to a minority of votes having a majority of power every election but one since Confederation. I’m confident the people of British Columbia will participate fully and make a decision, informed as they can be, on what they see as their best interest.
M. Lee: Thank you to the Premier for reading that statement from Elections B.C. Hearing that…. As we talked about this morning during the emergency debate, the timing of when this referendum is being held came out of the confidence and supply agreement, and then into the Electoral Reform Referendum 2018Act. That timing was determined by this government. There clearly is time to have, just as there was in 2009, an electoral boundaries commission.
To the Premier, would he consider having that conducted?
Hon. J. Horgan: Boundary redistributions happen every decade in British Columbia. I don’t believe there’s one scheduled in the short term. So that would be an impractical suggestion — to convene an electoral boundaries commission before we know whether or not we’re going to be changing the electoral system.
It is about an 18- to 24-month process, a very vigorous one. I participated in… Certainly in my constituency, as I mentioned in my remarks today…. I started in Malahat–Juan de Fuca, transitioned to Juan de Fuca and now represent Langford–Juan de Fuca. I haven’t moved at all. I live in the same place, but I represent different people because of the redistributions and the growing populations that we see in my area, that has led to maps that have changed virtually every two elections.
It would be impractical to ask that we strike an electoral boundaries commission to put maps in place for the purposes of this referendum.
That’s why we’ve been trying to make the point that the best course of action is to ask the people what they want and then build it after they’ve made their decision.
M. Lee: This is what’s been brought upon here. This is the third time in the history of this province that we’re conducting a referendum of this nature. In 2009, British Columbians had the opportunity to know exactly what they were voting on, the riding boundaries. There are other points, though, of the 24 items. When you look at the rural-urban PR decisions for the Legislature, what is being proposed here is three alternative forms of proportional representation. The Premier is considering something that is very complex for British Columbians to understand.
Three different forms of proportional representation is what’s being proposed by the recommendations of the Attorney General. Why not just have one? Why not make it simple? That’s what the Premier committed to before. For example, under the rural-urban PR decisions, one of the 24 items to be determined is the total number of MLAs in the province, either a specific number or a range of up to a maximum of 95 members.
One of the three principles that were set out in the news release was that there would not be an increase in the size of this House. And yet, in one of the considerations for one of the models here, it’s 95 members. So which is it? How will British Columbians understand the impact of the number of ridings that will be under each form?
Another example is the ratio of FPTP seats to list PR seats in an MMP region. That in itself is back to the Leader of the Opposition’s analogy of alphabet soup. That’s a great characterization of what we’re talking about here.
There needs to be some consideration of this. How will British Columbians understand, when they’re faced with that piece of information put out by Elections B.C., to say: “Oh well, there’s going to be a process. We’re going to figure out the ratio of FPTP seats to list PR seats in MMP regions”? They’re going to understand that. This is a concern, so I would suggest that as the cabinet considers the report from the Attorney General, they take a very serious look at how they’re conducting this referendum.
We have said, and we agree, that this is a decision for British Columbians. I just don’t see how they’re going to be able to make it. We have now what has been a ten-month process to get to a report that sets this out.
Again to the Premier, is he not concerned about the complexity that’s demonstrated in the report in respect of the three forms of PR that are being proposed and the 24 items that still need to be determined post the referendum vote?
Hon. J. Horgan: I very much value the member’s interventions. He’s a thoughtful member, and I know that he’s making these suggestions in a way that attempts to be helpful. I genuinely appreciate that, and as we deliberate, I’ll take his remarks into consideration.
I’ll add a few points. In the previous two votes on STV, which was a system that was rejected twice by the people of British Columbia, it was in concert with a general election. There was a high voter turnout because people were in the polling place anyway. They were also asked the question: while we have you here, would you do this or that? They chose to not support single transferrable ballots, which were, many people told me, extremely complicated and difficult to understand, once without a map and once with a map. In fact, the votes went down when there was a map. I’ll leave that hanging there and move on.
What we’ve tried to do in the time available is to put in place an opportunity for citizens to engage — by the Attorney General’s account, an unprecedented participation through visits to the website, through submissions, heading towards almost 100,000 in the time that was available. We will have what will be an extensive opportunity to discuss this over the barbecue this summer, into the fall, while people are thinking about whether they want to keep what they have or go to something different.
I think it’s incumbent upon us…. I know, certainly, the Leader of the Opposition has made it clear that he’s going to be out there vigorously defending the status quo, and other members will make their choices as they see fit. I think that’s good for democracy.
I think that if we give the public their due, they will come to the conclusion that’s in their best interests. It may well be to stay right where we are, and it may well be to choose something different. We’ll have three options if we implement the recommendations from the Attorney General. I have every confidence that the people of British Columbia can wade through that information and make a decision that will benefit all of us.
A. Weaver: I have three questions for the Premier concerning government policies on LNG development. Let me please start by saying I’m extremely encouraged by the work underway on developing a truly visionary climate plan, and I’m fully committed to delivering on the opportunity that this minority government has to finally put a plan together that understands that addressing climate change and meeting our greenhouse gas reduction targets is an economic imperative yet also an economic opportunity.
This will require hard work, thoughtful and innovative solutions and the engagement of all British Columbians. What we must never again allow is for the stated commitments to reduce emissions to be used as a cover for actions that undermine that commitment. That is what we see playing out federally. I believe this government is sincere in its commitments to meeting its greenhouse gas reduction targets, but they have some work to do in showing how the action they have taken in advancing a major expansion of a fossil fuel industry like LNG is in line with these commitments.
Please let me explore with you three questions. First, in May 2015, the B.C. Liberal government signed a development deal with Pacific NorthWest LNG in an aggressive move to spur the Malaysian-led project to become the first major Canadian exporter of LNG.
In response, the Premier, who at the time was the Leader of the Official Opposition, was sharply critical and said the provincial government had put too much on the table for industry. I just want to provide a quote. He said this. “My biggest concern is that we’re tying the hands of future governments because a desperate government made commitments that they overpromised on,” he said in Victoria, “and now they want to get a deal at any cost.”
The B.C. NDP argued that the agreements the B.C. Liberals were offering to LNG companies were too one-sided and did not provide sufficient certainty for the owners of the resource, the general public. The NDP at the time charged that this was “a sellout for B.C.” They said also: “The LNG tax legislation was written by industry and for industry.”
Are we not similarly now offering LNG Canada a deal that has been written explicitly for them while ignoring the costs that this project will incur on British Columbians, including the costs to other sectors of our economy that we’ll be forced to pay to accommodate the massive increase in our greenhouse gas emissions?
Hon. J. Horgan: I thank the member for his participation in the estimates today. I know that there will be a series of questions on this issue. It’s one that is of critical importance to him and his colleagues, and also to all British Columbians.
When we formed a government, we were approached by industries — mining, forestry and any number of industries — to find out what the new government’s plan was on taxation and what regulatory regime would be in place for a range of issues.
We established a framework for the LNG industry. The member will know — we talked about this during the election campaign — that we wanted to ensure there was going to be a return to taxpayers for the resource that belonged to them. Ministry of Finance officials worked on the development of the framework to ensure that there would be a benefit to British Columbia’s treasury as a result of any LNG development in British Columbia, and that’s what the framework is designed to do.
We also made a commitment to the public — and we reinforced that when I was in Asia talking to potential proponents — that Indigenous participation and meeting our climate action objectives were integral to any approval by the province of British Columbia.
I know the member’s participation in the development of our climate action plan going forward will be absolutely pivotal to our success. I look forward to his interventions.
I want to say that as we look at the potential of a final investment decision in the north, we want to make sure…. Leaders of industry have said to us that they welcome this type of private sector investment. I’ve said to them, as I know the member has, that if there’s an increase in emissions as a result of this sector growing, then that means there’s going to need to be a concurrent reduction and more so in other industrial activity. The business community understands that.
[L. Reid in the chair.]
We need to make sure that as we develop the plan, in concert with our colleagues here in the Legislature, we know that industry understands that we need to reduce emissions over time. If we’re going to have a net increase from one project, that means concurrent decreases from other sectors.
A. Weaver: A key reason why I want to ask this question, the previous one and the next two is that the financial regime this government has brought forward is described by the Premier’s government as a better deal than what the B.C. Liberals were offering. When this was brought forward earlier this year, it was reported: “The tax breaks would water down LNG taxes enacted by then Premier Christy Clark after the 2013 election. Instead of the provincial treasury receiving an estimated $28 billion in revenue over 40 years if LNG were built, B.C. would take in only $22 billion.”
Put another way, we’re offering a project that would become the single largest source of new greenhouse gas emissions in Canada at a $6 billion discount from what the previous government was willing to offer, not the least of which is also including a reduction in electricity rates, PST and exemptions on carbon tax increase.
Why are we going out of our way to offer a better deal than even the B.C. Liberals were willing to consider to bring an LNG industry to British Columbia, in spite of the commitments we have made to a real climate plan?
Hon. J. Horgan: I thank the member for his questions.
Firstly, I think we have to look back at the market for natural gas in North America and the precipitous drop-off in prices here for a commodity we have in abundance in the northeast.
When the former government put in place their LNG tax, they had an expectation of higher market prices, which would have led to potentially more revenues coming to the province. But as prices continued to be soft and demand continued to be flat, the prospect of an investment started to fall away. We saw proponent after proponent after proponent leaving the province because with the framework that was in place from the previous government, it wasn’t possible to realize a final investment decision.
Again, working with Finance officials, we took a look at what was possible with tax changes, a repealing of the B.C. Liberal LNG tax and bringing in a tax that would allow us to continue to get revenue to the Crown and also allow the project to proceed. With respect to electricity, again, the B.C. Liberals created…. Again trying to squeeze more juice out of what was a declining prospect because of prices internationally, they created a new tariff for electricity. We agreed with the industry that if you’re a pulp mill or a mine or any other industrial activity, there’s a tariff that you pay, and that should be the same tariff for an LNG manufacturing plant.
What we have done when it comes to electricity prices is put in place an industrial tariff that exists for all industrial activity. I think that’s a fairness question. On the energy-intensive, trade-exposed industries, I know the member and I have had long discussions about this. He understands the issue very well. If we are going to have a successful climate action plan and a robust economy, we have to keep our energy-intensive, trade-exposed industries in a position of being able to be positive and also meet our climate objectives.
This is not going to be an easy challenge. The member knows that better than anyone else in this Legislature. It’s for that reason that I’m grateful that he’s on board to try and help square this circle. But the investment opportunity is significant. Upstream electrification will help reduce emissions from wellhead to waterline. These were issues that we debated in this Legislature when the previous administration brought forward their ideas. I think we’re in a better position now to make the changes that we need.
We’re not focusing on one, two, three, four or ten LNG plants. It’s two trains and a community that is receptive and that has almost complete First Nations participation. I believe that if we work very hard on this, we’ll be able to see a final investment decision by what is a very diverse group of proponents from China, Japan, Korea and Royal Dutch Shell. I think the opportunity is a positive one, but the challenges are significant, and no one knows that better than the member for Oak Bay–Gordon Head.
A. Weaver: Thank you for the answer. I certainly hope government is looking to support from the B.C. Liberals for repealing the LNG Income Tax Act, because the B.C. Greens have been quite clear that we will not support the repealing of the LNG Income Tax Act, in light of the fact that the deal that was given by the B.C. Liberals was a rich deal at best, and this rich deal is being made richer. I look forward to the debates ahead as the B.C. Liberals stand in support of government repealing the LNG Income Tax Act that they brought in.
In 2016, the NDP concluded that plans for the $11.4 billion terminal at Lelu Island would generate an unacceptable increase in the province’s greenhouse gas emissions and filed a definitive position against the project with the federal environmental authorities. The project, the NDP noted in their March 2016 letter to the Canadian Environmental Assessment Agency, would increase the province’s entire carbon footprint for industry, transport and residential activity combined by 8.5 percent. The proposal failed “to meet the condition of air, land and water protection with respect to both the threat to marine habitat and species as well as to climate through unacceptable high and inadequately regulated greenhouse gas emissions,” the letter stated. “Until and unless these deficiencies are addressed, we urge you to withhold final recommendation for approval.” Those are the NDP words.
As was reported in Times Colonist at the time, the key reason the opposition was citing, greenhouse gas emissions, is an issue with all the big LNG plants that have been under consideration in B.C. for the past several years. If the B.C. NDP applies its Pacific NorthWest LNG reasoning to all other proposals, it’s hard to imagine a scenario where the party would support LNG in general. “Unacceptable high emissions cited by the letter are in fact lower than the emissions projected to arise from LNG Canada. According to Pembina’s analysis, LNG Canada would increase our emissions by 14 percent of 2015 levels.”
Furthermore, the same analysis projects that upstream emissions from LNG Canada will be comparable to those outlined as unacceptable in the Canadian Environmental Assessment Agency letter. LNG Canada is about five megatonnes of CO2 equivalent a year. That’s for two trains, two then four. This would suggest the analysis that led the B.C. NDP to reject Pacific NorthWest LNG on climate grounds would equally, and more so, apply to LNG Canada. Again, I don’t have any philosophical objection to the LNG industry. LNG may be an important local transition fuel to meet our plans for commercial vehicles and other forms.
What we can’t allow, and what I believe you were arguing yourself, hon. Premier, in the letter you filed with the Canadian Environmental Assessment Agency, was that the LNG industry cannot come at the expense of our commitments to reduce greenhouse gas emissions.
How does the Premier reconcile his strong opposition to Petronas with his support for LNG Canada? I don’t see how you can have it both ways.
Hon. J. Horgan: I thank the member for his question. Our analysis shows the emission intensity of LNG Canada is significantly lower than the Petronas proposal or Pacific NorthWest LNG — 0.23 versus 0.15 in terms of emission intensity. Also, LNG Canada proposes their upstream assets are largely in the Montney basin, the southern portion of the Montney basin, which will provide more opportunities for electrification to ensure emissions at the wellhead are reduced so that the package from wellhead to waterline is significantly greater than the Petronas or the Pacific NorthWest LNG proposal.
I believe that new technologies that are proposed by LNG Canada also assist in reducing their profile, versus Pacific NorthWest LNG. The member will remember that the critical issue when it came to the Pacific NorthWest LNG issue was siting of the plant on Lelu Island, which was contested by the Lax Kw’alaams hereditary leadership as well as many very concerned about one of the most robust salmon rivers in North America at the mouth of the Skeena River. The putting at risk our wild salmon was a significant challenge that I believe Pacific NorthWest LNG wasn’t able to overcome.
When it comes to LNG Canada, they have the full support of the Haisla Nation. They have support virtually from Treaty 8 right through to Kitimat. The city of Kitimat is almost uniformly supportive. I believe that the fiscal framework we’ve put in place will allow a significant return to the people of British Columbia.
The challenge, as the member knows full well, is meeting our climate objectives. We’re going to need a lot of work by a lot of people to do that. Individuals are going to have to reduce their footprint. Industry is going to have to reduce their footprint to make space for this new emerging industry. But it will create significant employment growth, wealth for British Columbians and, I believe, will allow other jurisdictions to reduce their climate emissions by having a transition fuel in place.
I thank the member for his questions.
R. Sultan: I cannot resist this moment of delicious irony as the Premier of British Columbia, after having feasting on the ridicule of the previous Premier for this fantastic and improbable dream of an LNG industry, is now, with great enthusiasm, knowledge and gusto, promoting the selfsame project, which I hope, out of respect, he would rename the Christy Clark LNG project. We look forward to his imminent announcement of a prosperity fund, as we see the money pour in.
Christy, it appears, will have the last laugh, because she is joining, I think, certainly what was in my experience, the pre-eminent oil and gas law firm headquartered in Calgary. I’m sure we have not heard the last of Christy and LNG in this precinct.
But I really rise to ask a question of the Premier pertaining to the fundamental economics of the underlying, underpinning, the exchange between the Premier and the Leader of the Opposition on legal issues. Clearly, the issues described in that exchange in this House not too many moments ago involved highly trained, very expensive, capable people operating within a very expensive justice system with a lot of high-cost infrastructure — which does not come inexpensively.
So my question to the Premier is: can he help us better understand the cost of the various legal actions in which this government is engaged, both against Canada on the grounds of environmental jurisdiction to inhibit the building of a new pipeline for the transmission of the petroleum products into British Columbia, and simultaneously we see legal action is taken by this government against Alberta opposing their threat to cut off the transmission of petroleum products into British Columbia. Cut off versus maintain — it doesn’t take a legal scholar to see the contradiction in these two actions involving our government. My question to the Premier is: what is all of this costing the taxpayers?
Hon. J. Horgan: I thank my colleague from West Vancouver–Capilano for his question and, also, highlighting the irony. Certainly, if the former Premier would accept a call from me, I’d be happy to invite her to a ribbon cutting, should there be one, but I rather doubt she would. Perhaps you could be an intermediary, Member, and I could offer my invitation through you to her.
When it comes to the cost of litigation, that’s, of course, something that would be declared in the public accounts in the year preceding the expenditure of the resources. The member would know that. But I want to diminish the magnitude, in his mind, of what that final bill might be.
Firstly, since we formed government we entered into two existing litigations, one which is completed — awaiting appeal, I believe — with respect to the Squamish Nation and consultation with the province of British Columbia. We, in fact, sided with the province, not surprisingly, in terms of maintaining the integrity of the Crown. The second case we entered into was at the federal court with the Tsleil-Waututh First Nation, and that litigation is ongoing. We had a very capable lawyer, outside counsel, made our submission, and we await a final ruling from that court.
When it comes to the reference case, I believe this is a worthwhile exercise, particularly because of the exchange I just had with the Leader of the Opposition, who seemed to believe that it was important that the province have some ability to understand the magnitude of rail transport of oil into British Columbia. We currently don’t have that ability. We’re seeking to get that ability, and I think it’ll be in the interests of all of us to make sure that the province of British Columbia has the tools to defend our coast, to defend our air and our water and land. What the price tag will be on that, hon. Member, will be made known in public accounts, and there’s some irony being able to stand and say that to the member as well.
R. Sultan: Thank you for that response, although I was hoping for a dollar figure, but I will have to await public accounts, I suppose.
Turning to a certainly well-publicized but maybe, hopefully, not quite as large in magnitude legal action, I was recently shown documentations pertaining to the action taken by Gordon Wilson in the Supreme Court, the initial dossier dated 17, August, 2017 and the initial response of September 7, 2017. Just for the record, the plaintiff being Gordon Frederick David Wilson and the defendant being Her Majesty the Queen in Right of the Province of British Columbia by officer of the government, referring to the Premier, and also the hon. Minister of Jobs, Trade and Technology. I think that the public would be very interested in where this dispute stands and, again, how much money we are spending to defend the Crown in this action.
Hon. J. Horgan: That matter is before the courts, better directed to the Attorney General.
The Chair: The member for Maple Ridge–Mission seeks leave to make an introduction. Shall leave be granted?
Leave granted.
Introductions by Members
B. D’Eith: I wanted to say that I’m very pleased to have some students from Meadowridge School from Maple Ridge and their teacher Kevin Kennedy. They’re touring the precinct, and they’re very fortunate, because it’s our last day in session, to be able to see the Premier answer questions in the House. We really would like to make them very welcome.
Debate Continued
The Chair: Shall Vote 10 pass?
Vote 10: Office of the Premier, $11,305,000 — approved.
ESTIMATES:
LEGISLATIVE ASSEMBLY
Vote 1: Legislative Assembly, $77,408,000 — approved.
ESTIMATES:
OFFICERS OF THE
LEGISLATURE
Vote 2: Auditor General, $17,666,000 — approved.
Vote 3: Conflict of Interest Commissioner, $718,000 — approved.
Vote 4: Elections B.C., $13,846,000 — approved.
Vote 5: Information and Privacy Commissioner, $6,252,000 — approved.
Vote 6: Merit Commissioner, $1,141,000 — approved.
Vote 7: Ombudsperson, $6,893,000 — approved.
Vote 8: Police Complaint Commissioner, $3,615,000 — approved.
Vote 9: Representative for Children and Youth, $9,418,000 — approved.
Hon. M. Farnworth: I move that the committee rise and report resolutions and completion of Vote 10 of the Office of the Premier, Vote 1 of the Legislative Assembly and Votes 2 to 9 of the Officers of the Legislature and ask leave to sit again.
Motion approved.
The committee rose at 4:54 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of Supply (Section B), having reported resolutions, was granted leave to sit again.
Committee of Supply (Section A), having reported resolution, was granted leave to sit again.
Committee of Supply (Section C) reported resolution.
Mr. Speaker: When shall the report be considered?
Hon. M. Farnworth: Forthwith.
Mr. Speaker: So ordered.
Hon. M. Farnworth: I call for the consideration of the reports of resolutions from the Committee of Supply.
Supply Motions
REPORTS OF RESOLUTIONS FROM
COMMITTEE OF
SUPPLY
Hon. C. James: I move:
[That the reports of resolutions from the Committees of Supply on March 6, 7, 13; April 10, 17, 18, 19, 24, 26; and May 7, 8, 9, 15, 17, 28, 29, 30 and 31 be now received, taken as read and agreed to.]
Motion approved.
FUNDS GRANTED FOR PUBLIC SERVICE
Hon. C. James: I move:
[That there be granted to Her Majesty, from and out of the Consolidated Revenue Fund, the sum of 43 billion, 138 million, 106 thousand dollars towards defraying the charges and expenses of the public service of the province for the fiscal year ending March 31, 2019. This sum includes that authorized to be paid under section 1 of the Supply Act (No. 1), 2018.]
Motion approved.
FUNDS GRANTED FOR CAPITAL
EXPENDITURES, LOANS,
INVESTMENTS
AND OTHER FINANCING REQUIREMENTS
Hon. C. James: I move:
[That there be granted to Her Majesty, from and out of the Consolidated Revenue Fund, the sum of 903 million, 429 thousand dollars towards defraying the disbursements for capital, loans, investments and other financing requirements of the province for the fiscal year ending March 31, 2019. This sum includes that authorized to be paid under section 2 of the Supply Act (No. 1), 2018.]
Motion approved.
Introduction and
First Reading of Bills
BILL 35 — SUPPLY ACT, 2018-2019
Hon. C. James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Supply Act, 2018-2019.
Hon. C. James: I move that Bill 35 be introduced and read a first time now.
This supply bill is introduced to authorize funding for the operation of government programs for the ’18-19 fiscal year. The House has already received, taken as read and agreed to the reports of resolutions from the Committees of Supply after consideration of the main estimates. In addition, the House has resolved that there be granted from and out of the consolidated revenue fund the necessary funds towards defraying the charges, expenses and disbursements of the public service of the province for the fiscal year ending March 31, 2019.
It is the intention of government to proceed with all stages of the supply bill this day.
Mr. Speaker: The question is first reading.
Motion approved.
Mr. Speaker: Hon. Members, I would ask that you remain in your seats for a few minutes while the bill is being circulated.
Members, the bill has been circulated. In keeping with the practice of this House, the final supply bill will be permitted to advance through all stages in one sitting.
Bill 35, Supply Act, 2018-2019, introduced, read a first time and ordered to proceed to second reading forthwith.
Second Reading of Bills
BILL 35 — SUPPLY ACT, 2018-2019
Hon. C. James: I move Bill 35 be read a second time now.
Motion approved.
Hon. C. James: I move Bill 35 be referred to a Committee of the Whole House for consideration forthwith.
Bill 35, Supply Act, 2018-2019, read a second time and ordered to proceed to a Committee of the Whole House for consideration forthwith.
Committee of the Whole House
BILL 35 — SUPPLY ACT, 2018-2019
The House in Committee of the Whole (Section B) on Bill 35; L. Reid in the chair.
The committee met at 5:03 p.m.
Sections 1 to 3 inclusive approved.
Schedules 1 and 2 approved.
Preamble approved.
Title approved.
Hon. C. James: I move that the committee rise and report Bill 35 complete without amendment.
Motion approved.
The committee rose at 5:04 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 35 — SUPPLY ACT, 2018-2019
Bill 35, Supply Act, 2018-2019, reported complete without amendment, read a third time and passed.
Mr. Speaker: Members, if I may just ask that you remain in your seats. It’s my understanding that the Lieutenant-Governor is in the precinct.
Her Honour the Lieutenant-Governor requested to attend the House, was admitted to the chamber and took her seat on the throne.
Royal Assent to Bills
Deputy Clerk:
Local Government Statutes (Residential Rental Tenure Zoning) Amendment Act, 2018
Miscellaneous Statutes Amendment Act (No. 2), 2018
Real Estate Development Marketing Amendment Act, 2018
Child, Family and Community Service Amendment Act, 2018
Pill Press and Related Equipment Control Act
Voluntary Blood Donations Act
Cannabis Control and Licensing Act
Cannabis Distribution Act
South Coast British Columbia Transportation Authority Amendment Act, 2018
Greenhouse Gas Reduction Targets Amendment Act, 2018
Canadian Chinese School of Theology Vancouver Act
In her Majesty’s name, Her Honour the Lieutenant-Governor doth assent to these acts.
Supply Act, 2018-2019
In her Majesty’s name, Her Honour the Lieutenant-Governor doth thank Her Majesty’s loyal subjects, accepts their benevolence and assents to this act.
Hon. J. Austin (Lieutenant-Governor): All right. I guess we’re done.
Before I go, though, I would just like to say how much I respect and admire the work that you all do together and how much I appreciate the many, many sacrifices that you make for the privilege of serving all of us.
I know there’s still a lot of work ahead for all of you, but I do hope you have some time this summer to enjoy relaxation with family and friends. I wish you all the health and happiness, and safe travels in the time ahead.
Take care.
Her Honour the Lieutenant-Governor retired from the chamber.
[Mr. Speaker in the chair.]
Hon. M. Farnworth: I have one final motion to move, but before I do, I’d just like to make a couple of quick points. One, the staff have requested that people clean out their desks. All I know is that when I was on that side, it was like that much stuff, and being a minister, it’s only this much stuff, so that’s all right. The second is for all of this in this House to give a big round of applause to the staff who make this place function so very, very well. [Applause.]
With that, I move that the House, at its rising, do stand adjourned until it appears to the satisfaction of the Speaker, after consultation with the government, that the public interest requires that the House shall meet or until the Speaker may be advised by the government that it is desired to prorogue the third session of the 41st parliament of the province of British Columbia. The Speaker may give notice that he is so satisfied or has been so advised, and thereupon the House shall meet at the time stated in such notice and, as the case may be, may transact its business as if it had been duly adjourned to that time and date. And in the event of the Speaker being unable to act owing to illness or other cause, the Deputy Speaker shall act in his stead for the purpose of this order.
Motion approved.
Hon. M. Farnworth: I move that the House do now adjourn, and everybody have a safe and happy summer.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: Members, we all know that there are those out there who are thinking it’s a bit of a break, but we also all know that all of you will be working hard on behalf of British Columbians.
Have a great summer. Best wishes to all of you.
This House stands adjourned until further notice.
The House adjourned at 5:25 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF ENERGY,
MINES
AND PETROLEUM RESOURCES
(continued)
The House in Committee of Supply (Section A); R. Leonard in the chair.
The committee met at 1:37 p.m.
On Vote 21: ministry operations, $58,015,000 (continued).
T. Redies: We’re going to talk a little bit about project labour agreements. Can the minister confirm comments made by the Premier to the B.C. Building Trades at the convention, on his 101st day in office, that B.C. Hydro has been handed a directive to use exclusively Building Trades labour for their $20 billion ten-year capital plan, as well as the revised $10.7 billion budget on Site C? Is this now the case?
Hon. M. Mungall: In terms of where things are at with project labour agreements and B.C. Hydro, there has been no directive from government in terms of project labour agreements at this time.
The reason is because government is reviewing how we would best implement those. Historically, what they were called is project labour agreements. Going forward, however, with that review and a new vision, they’re being called community benefit agreements.
Now, the review for this is being done by the Ministry of Transportation. Once that is completed, it’ll be rolled out across government, and we will look at ways to best implement community benefit agreements. That’s what is happening with that type of labour agreement right now.
T. Redies: How can a project labour agreement, which is to do with unions, be categorized as a community benefit agreement? I don’t understand the correlation.
Hon. M. Mungall: The difference here is…. We can belabour semantics and so on. The concept is not entirely different from project labour agreements, but it has a bit of a broader view.
I can’t comment on the full details of what’s being looked at by the Ministry of Transportation, as that’s not my ministry, and I’m not responsible for that work right now. All I can say is that that is being done by the Ministry of Transportation. It’ll eventually come back to cabinet for decision-making in terms of how we would be rolling that out across all of government, including our Crown corporations.
T. Redies: Does this mean that the current arrangements, where all types of labour forces will be able to participate in projects that are being led by B.C. Hydro, are going forward?
Hon. M. Mungall: I don’t have a lot of information for the member on this particular item simply because in terms of if there’s been any recent changes, the answer is no, as I said earlier. There’s been no directive at this stage that’s been issued to B.C. Hydro or any Crown corporation or any government ministry that is heavily involved in capital projects. Rather, we’re going through this process in terms of identifying how we would do so and how we would procure labour on any project and looking at the broader issue under the community benefits agreement vision.
That’s being handled by the Ministry of Transportation. I’m sorry for the member, but I just don’t have any further detail.
T. Redies: Is the minister telling us that the Premier was wrong in his announcements to the building trades?
Hon. M. Mungall: I was not at that meeting with the B.C. Building Trades. I can’t necessarily comment on the exact words that the Premier used, and what he said. I don’t recall the member offering a direct quote. Maybe she did, and I misinterpreted. But I wasn’t there for what he said to that organization.
However, it would be fair for him, as Premier, to inform B.C. Building Trades, and any member of the public, that we are looking at community benefit agreements, formerly project labour agreements, and that in the future, going forward, we’re going to be looking at different ways to procure labour on our capital projects.
T. Redies: Can the minister tell the House what percentage of B.C. workers are under the umbrella of the B.C. Building Trades and its affiliated unions?
Hon. M. Mungall: That type of information is not retained within this ministry. It would be better found in the Ministry of Labour.
T. Redies: According to our statistics, 87 percent of B.C.’s labour is actually not part of the building trades. So I guess where we are going, and you can appreciate from our perspective…. When we hear the Premier indicating that all contracts going forward are going to be unionized, we are asking two questions. If that does happen, how is B.C. Hydro going to make sure it can access the appropriate labour pool? Secondly, what is that going to do to the cost of the project, particularly Site C?
Hon. M. Mungall: I’m not able to comment on either of those items at this time. As I was saying earlier, the government is looking at the concept of community benefits agreements, keeping in mind that project labour agreements were very, very functional in the past and have been up to date in terms of having good expertise and a good skill base on jobsites, preventing any health and safety problems on jobsites and also delivering projects on time and on budget.
T. Redies: That’s an interesting answer, because our data suggests otherwise, the other way. In fact, if we look at the Island Highway that the NDP has mentioned in the past as a symbol of success, that jacked up costs by 38 percent. I would like to read it into the record that many reports indicate that using only union labour tends to add 20 percent to 30 percent onto costs.
I guess my question is: if this did become a situation, does the existing Site C revised budget, which has already been revised once under this government…. Would it be in jeopardy of staying on budget with the revised budget?
Hon. M. Mungall: I don’t think the member would want a minister of the Crown to speak in hypothetical terms or try to crystal-ball something as serious as contracts at Site C. So I won’t do that. But what I will just remind the member of is that yesterday I did confirm that $6 billion has already been committed in contracts and that we are on track to meet the new budget of $10.7 billion.
T. Redies: Just to ask it another way, could the minister or B.C. Hydro confirm…? Did they consider increased union labour as part of the revised budget?
Hon. M. Mungall: The way that procurement is done is that B.C. Hydro will put a contract out to tender. Groups, companies or labour organizations will put forward proposals — the costs and how they would deliver that particular contract. Then B.C. Hydro looks at all the contracts and then ultimately makes a decision.
Are they going to be making decisions to remain within their $10.7 billion budget for the remainder of the contracts that need to be let? Absolutely. Would those contracts potentially be available to organized labour? Certainly. They are more than welcome to be making proposals to any contract tendering.
T. Redies: Thank you for that, Minister. On this side of the House, we believe it’s very important for B.C. Hydro to have access to multiple options to ensure competitiveness and that the costs for their projects are not any higher than what they need to be.
I’d like to move to just some technical questions. Can the minister tell us the status of the tension cracks now and what, if any, additional spending was required to address them?
Hon. M. Mungall: As the member noted, there were tension cracks in the construction of the civil works. The first one happened February 2017 and the second one in May 2017. Since then, there’ve been no further tension cracks.
Both of those have been resolved with very modest cost increases. We don’t have those cost increases separated out at this time. If the member would like that, we could do our best to try and get it to her, but that’s just not how the accounting worked, in terms of separating those costs out.
T. Redies: Can the minister confirm that the river diversion is to take place now in 2020 and that that was the decision that was determined last fall?
Hon. M. Mungall: Yes, the river diversion is, unfortunately, delayed by a year until 2020. The reason why is…. Primarily, it was a result of the tension cracks and having to address those tension cracks. I don’t think that would come as a surprise to anybody that those could possibly cause delays. That was the primary reason for the delay.
There were a few other challenges. I think it’s been in the news that there were some challenges that we had with the main civil works contractor, for example, but the main challenge is definitely having to deal with those tension cracks.
T. Redies: The reason why I asked the minister this question is that in March of this year on the Voice of B.C., the minister told Vaughn Palmer that the river diversion was going to be 2019. I don’t know if that was just an error, but has she corrected it for the record?
Hon. M. Mungall: I would apologize. That perhaps was an error.
T. Redies: Moving to Highway 29 now, can the minister tell us where we are with regards to the consultations on the relocation of Highway 29? Has an alternative site been identified?
Hon. M. Mungall: We are in the process of consultations regarding the realignment of Highway 29. We are consulting with First Nations and property owners who are directly impacted, as well as the Ministry of Transportation, clearly.
We are also doing some further archaeological work that needs to be done up there. As the member may recall, First Nations have identified several sites that were under the original realignment design for Highway 29 as historic sites for them, some sacred historic sites as well, and so we’re doing some of that archaeological work.
We expect a decision on the final realignment to be had by August of this year, and that is on track with the planning.
T. Redies: Is the minister able to tell us what has been spent to date on the Highway 29 realignment? Is it within the original allocated budget?
Hon. M. Mungall: Unfortunately, we don’t have the exact expenditure for Highway 29 realignment to date handy with us. We’re going to try and get it for the member before the end of day. If not, I’ll be sure to send it to her in writing.
In terms of the overall budget, which…. I asked because I would like to give that to the member as well. However, at this time, we don’t have that broken out. It’s actually part of a larger bucket of a few other items as well. We’d have a better idea of what the overall budget is once we head into the procurement phase.
T. Redies: I think the minister answered this, but with these archaeological dig complications, for want of a better word, is B.C. Hydro convinced that they can still make the 2020 date?
Hon. M. Mungall: Yes. As I said, where we are at right now is consistent with the plan. We are on track to meet our plan, and having that August decision is right on schedule.
The Chair: Minister — member — for Peace River South.
M. Bernier: Was to be and plan to be. How’s that?
Just staying on Highway 29, and on behalf of my colleague from Peace River North, as well, on this issue…. Of course, there were years and years of community and First Nations consultation that went into everything to do with the Site C project, including the Highway 29 realignment and where that would go. Work had been done to ensure that the road was going in a place that wasn’t culturally sensitive, and now we have one First Nations group who’s come out and said that it possibly could be.
One of my concerns, or questions to the minister, I guess, would be…. She’s saying it’s still going to be maybe on time to make an announcement this fall. But is that going to possibly increase the cost of the project? Because looking at some of the different options, there’s still no on-the-ground…. Not to take away from the work that’s happening by the archaeologists and historians in the area, but there’s still no actual proof that maybe there was. That’s why we’re doing the work — to find out.
If they find out that we have to move and realign, that could increase the costs now. Has B.C. Hydro planned that, and what do they think those increases might be? Because if we’re planning to go out this fall, we should know.
Hon. M. Mungall: Of course, when it comes to the realignment of Highway 29, cost is not the only consideration. We have to, especially in an era of reconciliation, be balancing costs with First Nations rights and title and rights to practise their traditions and their culture. When I did my…. Personally, I consulted with Treaty 8 Nations back in November. I definitely heard from more than one nation that the realignment of Highway 29 was a concern for them and that we need to be respecting First Nations traditions, absolutely.
In terms of if it’s going to be increasing the cost, it’s within our budget. When we revised the budget to $10.7 billion, it was part of our budget to relook at this issue. The very reason that we wanted to relook at this issue is because we want to be honouring First Nations traditions and their very rights to practise those traditions.
M. Bernier: I appreciate the comments from the minister. I mean, we’re not going to debate or argue the point that we need to be consulting, which is why there was ten years of consulting B.C. Hydro, and we did a great job. I sat on those committees for about eight years of that, where we were working and consulting with communities and First Nations to ensure the locations for the highway, for the dam, for the flooding zone. Everything was all taken into consideration as part of that, which is why there’s also been the impact-and-benefits agreements with local First Nations, and most of them have signed on with that and the understanding that those consultations did take place.
I’m not trying to take away from that. If there is something new that has been discovered, then obviously that work and due diligence has to be taken. Concern, obviously, from local people is around not only the timeline but where that road realignment could possibly go. The one area that B.C. Hydro is considering, from what I’ve seen, is right through the centre, basically, of some of the best agricultural land outside that area. So I’m just kind of curious on how we reconcile all those things as well.
Hon. M. Mungall: I’m just going to go back to the other member’s question from earlier. We do have some numbers on what’s been spent to date on the Highway 29 realignment. Where we are is at $18 million, which includes $13 million on engineering. That stands for that previous question.
I recognize the member’s comments that there are various competing interests. The realignment of Highway 29 — make no mistake; I don’t think anybody thinks it’s something easy. It’s a very challenging task, and that’s precisely why B.C. Hydro is in consultations with those who are going to be impacted and seeking to make a resolution and have a decision back out to the public, so we all have some certainty of where things are going to go as of August.
T. Redies: I’m just going to turn now to the generating station and spillways contract. Can the minister please explain to this House why the contract came in $610 million over the original budget? Did the increased costs have anything to do with the delay in getting the contract awarded? I believe they were supposed to be awarded in the fall of 2017, and it didn’t happen until 2018.
Hon. M. Mungall: The process for the generating station and spillways contract was a procurement process. It went out to tender. We had three bidders. The successful bidder was $610 million over the estimated cost for this contract.
What that showed us is that the original estimation for this contract was not accurate. It was underestimated, unfortunately. The bid that came in was the best bid at market value.
The reason why there were delays — it was part of the procurement process. There were some issues that the bidders had to contend with, and they asked for requests to delay their bids into the tendering process: namely, because they were dealing with increases in — well, often the usual — concrete, steel and labour. There have been price increases in that, and they wanted to see those commodity prices settle before they were able to complete their bids and so requested some delays.
T. Redies: Aecon, the lead contractor in the consortium that was awarded the generating station and spillways contract, has been engaged in trying to sell the company, which has now been blocked by the federal government. Has the minister or B.C. Hydro had discussions with this company with respect to the issue? And will they still be able to execute on their contract with Site C?
Hon. M. Mungall: In a word, absolutely. Yes, they will still be able to execute and fulfil their obligations under the contract.
T. Redies: I’d now like to turn to the ten-year capital plan, specifically to ask the minister: what has been the impact of the increase in costs of Site C to the ten-year capital plan? In other words, have there been other projects that have been deferred as a result of Site C? Would the minister give a detailed list of what those projects are?
Hon. M. Mungall: When we revised the budget to $10.7 billion, the reason why this government chose to revise that budget is that we chose to go with a more conservative type of modelling than the previous government. The previous government’s budget would be what is considered a P50: it had a 50 percent chance of meeting that total and a 50 percent chance of not meeting that total.
I personally felt that that was not a good way to go. I thought that that was not fiscally conservative enough and that ratepayers should have something that’s a bit more concrete. We went with the P90 version, so the budget has a 90 percent chance of meeting its actual total of $10.7 billion. That’s why we went with that.
As a result, though, there is no impact on other capital projects so there have been no delays.
T. Redies: Just to confirm, what the minister is saying is that they’ve added the additional amount for Site C. It has been added to the total capital plan. Is that correct?
Hon. M. Mungall: Yes, that would be correct.
T. Redies: Has there been any maintenance on various assets of Hydro deferred as a result of some of the challenges that they’ve had with the large Site C project?
Hon. M. Mungall: No.
T. Redies: According to our records, it appears that a number of maintenance projects have been deferred. I wonder if the minister could comment about the maintenance on time-expired meters being pushed back. Also, smart meters in the north are being scaled back by B.C. Hydro. Why is that happening?
Hon. M. Mungall: There might be a variety of reasons why any particular project, a maintenance project, might be delayed. We can assure the member that those delays are not related to Site C.
For example, she brought up issues around meters. The reasons behind this are varied. For example, several people around B.C. chose not to adopt smart meters. At some point, though, those properties are going to have to get smart meters. Those delays might be caused by that.
We don’t have the details on every particular maintenance project and why it might be experiencing a delay within its own project, but in terms of delays occurring as a result of Site C, there’s no indication that any delay that would be happening with some of our maintenance at B.C. Hydro is a result of that.
T. Redies: If I remember correctly, B.C. Hydro does a periodic review of the condition of its assets. One of the reasons why they had to undertake a $20 billion ten-year capital plan was because there was very little invested in the assets in the 1990s.
Again, with the now-increased capital budget, can the minister confirm that the percentage of assets that were in fair and poor condition is not going to change at the end of this ten-year plan? In other words, are you on track? Is Hydro on track to upgrade its assets according to past reviews, which had been, I think — I can’t remember the exact percentage — certainly an improvement in the assets?
Hon. M. Mungall: The process, in terms of reviewing asset management, asset maintenance and upgrading, has been the same for a long time, long before I got here, and it hasn’t changed in the last few months. In terms of where things are at now, everything is on track.
That being said, things may change going forward, in the future, as you triage and the need for one asset increases over another asset, perhaps, and so on. I can’t predict what that might be, but in terms of where things are at today, everything is on track.
T. Redies: I’d like to turn now to the Terrace-to-Kitimat transmission line. This line is now no longer being, I guess, replaced. What we would like to ask the minister is: given the fact that the current line that had been noted is not going to be sufficient for the area, why is Hydro only looking at refurbishing it at this time?
Hon. M. Mungall: I think this particular issue really highlights for me how B.C. Hydro staff who are in charge of looking at all of these things are consistently always thinking about how we can best meet the needs of ratepayers while also ensuring that they have the best value for their dollars.
With this particular situation, the Terrace-to-Kitimat transmission line, what we’re seeing is that replacement might not be the best value for dollar. It might not be the most effective way to achieve our ultimate goals of meeting the power grid needs for that area, so refurbishment might be the better way to go. That’s why B.C. Hydro staff are looking specifically at perhaps finding an alternative, less costly method to achieve the ultimate goal.
T. Redies: Given that LNG Canada looks like a distinct possibility, wouldn’t it make sense for B.C. Hydro to move forward to building a new line to provide capacity for that development?
Hon. M. Mungall: If the member is concerned on whether or not LNG Canada’s needs are in the scope of looking at whether we want to replace or refurbish this transmission line, absolutely. I hope that we’ll have a good, positive FID soon, and we’ll be able to know and give the member a more definitive answer on whether it will be replaced or refurbished, and we’ll know what we’re doing with this transmission line.
T. Redies: Just to confirm, from what the minister is saying, I think that there is a possibility that the line will have to be replaced if the LNG Canada project goes ahead.
Hon. M. Mungall: Sorry. To clarify, no, that’s not specifically what I was saying. What I was saying is whether the best value for ratepayers’ dollars is replacement or refurbishment and whether or not LNG Canada will have a positive FID. Their potential for a positive FID is definitely within the scope of considering whether we want to replace or refurbish.
T. Redies: Just moving to the integrated resource plan, can the minister provide an update on where B.C. Hydro is with respect to this plan?
Hon. M. Mungall: Our integrated resource plan, which is the IRP, is not going to be ready in 2018. That was the original date that it should be ready for. Let me tell the member why it’s not going to be ready in 2018. It comes back to the review that we’ve been talking about over the last couple of days that we’re doing.
After the Clean Energy Act was passed by the previous government, the IRP would go directly to government and would not go to the B.C. Utilities Commission. Historically, prior to the Clean Energy Act, it did go to the B.C. Utilities Commission.
As part of our review, one of our questions is if the IRP should continue on its current trajectory of going to government or if we should be doing things how we had done them in the past, for several decades, which is going to the B.C. Utilities Commission. Until we have that question answered as part of our phase 1 review that’s going to be completed in fall of this year, we will not be having our IRP go to government and likely not be able to meet that December 31, 2018.
T. Redies: Can the minister provide us with the revised timeline, then? When is it expected to move up the process?
Hon. M. Mungall: There are quite a few moving parts to be able to answer that question in terms of what the revised date is. Some of our moving parts right now are, of course, the energy road map…. That’s a part of my mandate. There is the climate action strategy that is going to be coming forward as part of the Ministry of Environment’s mandate as well. Of course, the big question is the review and where the review wants to see us going. Because there are so many moving parts at this time, I don’t have a specific date when we can expect the IRP to be completed.
T. Redies: I’m now moving to the net-metering program. I have had a number of constituents contact me about what appears to be a cancellation of the program. Can the minister explain why net metering has been shelved?
In particular, it seems like a large part of the minister’s mandate is around this energy roadmap. Given that our economy is likely to be electrified more over the coming years, why would they take away this incentive for people to have solar panels, for example, to heat and provide electricity to their home?
Hon. M. Mungall: I want to just start off by saying that the entire net-metering program is not cancelled. What B.C. Hydro is doing…. The information that B.C. Hydro has put out there has been clear. How it ultimately gets translated through various media has been different. I’ve been watching this, and it has been different. What has happened is that B.C. Hydro has made an amendment to the B.C. Utilities Commission for this particular program.
When the program was first introduced, it was to encourage people to get solar panels for their roofs, for example, or have other forms of renewable energy that they can provide to their home and, potentially, at different times of the year, feed back into the grid. Ultimately, at the end of the year, they would have a reduced cost on their energy bill, but they wouldn’t be making money off of it. B.C. Hydro wouldn’t be owing them money at the end of the year.
What has happened over time, unfortunately, is that some people have seen this as an income opportunity. They played the rules, in a way. They would buy quite a lot of solar panels and start generating so much energy that B.C. Hydro would actually owe them at the end of the year. It’s not just a few hundred dollars — upwards to $60,000. That’s an annual income for a lot of people.
It was a backdoor approach. People were using this as a backdoor, personal approach to the standing offer program, in a way. That’s not how this program was originally intended or designed, and it was becoming quite unfair.
To get back to a more fair model, B.C. Hydro has made an amendment with the B.C. Utilities Commission so that we’re back to where the intention originally was, which was that if somebody has a solar panel that will help them with their overall costs in a year, that’s great. We want to continue on with that, but we want to close this back door to the standing offer program.
T. Redies: How is that actually going to work? I presume the homes are going to produce the energy. It’ll go up to the grid. Is it just that Hydro will just not pay for the surplus?
Hon. M. Mungall: The way that this process is working out is that it won’t affect existing people who are involved in the net-metering program. Rather, the application to the B.C. Utilities Commission for an amendment is to change the very application that people would be filling out for the net-metering program.
What would be on the proposed terms by B.C. Hydro is that B.C. Hydro would be looking at their overall load in a year. If their application is above the load that they generally use, then their application would be denied, for example. That’s the terms that B.C. Hydro has put forward to the B.C. Utilities Commission. Ultimately, those terms are going be decided by the B.C. Utilities Commission, whether they approve or disapprove.
I’ll just point out to the member that Fortis made these exact same amendments to their net-metering program and applied to the B.C. Utilities Commission. That decision has already been rendered, and the B.C. Utilities Commission has approved the changes that Fortis requested.
With that, I just ask for a small five-minute recess.
The Chair: We are recessed for five minutes.
The committee recessed from 2:36 p.m. to 2:40 p.m.
[R. Leonard in the chair.]
T. Redies: Just before the break, I believe the minister indicated that all of the existing customers on the net-metering program would be grandfathered. Does that also include the ones that are, I guess, being paid up to $60,000 a year?
Hon. M. Mungall: Yes.
T. Redies: I’d now like to turn to the ITM Power contract. Does the minister believe her announcement, on March 29 of this year, of $230,000 from government and an additional $60,000 from Hydro to ITM Power to study large-scale production of renewable hydrogen in B.C…? Is this an example, from her perspective, of the government’s reinvigorating the ICE fund and B.C.’s clean energy sector?
Hon. M. Mungall: There has been a variety of projects funded through the ICE fund. This particular project, the ITM Power contract, was one of the many projects that applied to the ICE fund and was successful in their application.
While this government has been able to secure an extra $8 million into the ICE fund, I would not call any of this as the overall reinvigoration of the ICE fund that we’re looking to do.
Right now ministry staff is working on a submission to myself that will eventually be reviewed, likely by Treasury Board, because that’s where all money things go. What’s going to ultimately be happening around the ICE fund, in terms of how we can reinvigorate that and support clean, renewable energy projects around the province, is yet to be determined.
T. Redies: Can the minister tell us how the ministry arrived on ITM Power, which is a U.K.-based company, as the proponent for this particular study? Did the minister or ministry consider any local British Columbia companies to execute this study?
Hon. M. Mungall: Like I said earlier, ITM applied, and their application was successful. In terms of the details of their application and why that decision was made, we don’t have those particular details here. We’d have to get that back to the member at a later date.
T. Redies: According to the government of Canada, the largest cluster of hydrogen fuel cell companies is actually located in British Columbia, including companies like Blue Fuel Energy, which operates here in Victoria as well as in the northeast.
I’m just curious, given the strength of expertise in this area being in B.C., why ITM was chosen over a B.C. company.
Hon. M. Mungall: I appreciate the member is curious about that, and that’s exactly why I already committed to getting her the information, in terms of why that decision was made around their application.
T. Redies: Just to confirm, as the minister goes forward with the road map and other initiatives, does the ministry intend to support B.C. companies primarily over companies outside the province?
Hon. M. Mungall: In terms of what we’re going to be doing going forward, again, I can’t answer that. A submission is currently being worked on around the ICE fund. What ultimately comes back….
In terms of values set and priorities, of course, we always want to see B.C. companies thrive and be able to have opportunities and be able to succeed in British Columbia. We also want to attract new companies to British Columbia as well, right? That’s very important for our economy.
There are other things to consider as well in terms of our trade obligations with other jurisdictions and the types of trade agreements that we have with other jurisdictions and so on, which also have to guide decision-making as well.
T. Redies: The minister will be glad to know that this is my last question, and I actually should have asked it earlier.
We were speaking about the capital plan, I guess, essentially going up by $2 billion because of the revised budget on Site C. Can the minister or the staff explain to us what that is going to do to the debt-to-equity plans of Hydro to get to 60-40? Is that going to delay the ability of Hydro to reach that very important goal in terms of the company’s balance sheet?
Hon. M. Mungall: B.C. Hydro’s goal to get to a 60-40 debt-to-equity ratio is to do so in the 2030s.
In terms of the revised budget on Site C having any impact on that, we don’t think it’s likely that it would, but if it did, what our analysis shows is that it would be very marginal. It wouldn’t be significant. It might be, maybe, by a year or even less.
T. Redies: With that, I’d like to thank the staff. I appreciate you staying over an extra day.
I’d like to, again, wish the Minister all the very best in this next stage of your life. I can tell you, having had four children, that it was the best thing I ever did, so good luck and safe delivery.
Hon. M. Mungall: Thank you very much.
L. Throness: I just have a couple of questions for the minister today about an application for an aggregate mine at 3628 Hot Springs Road, near the village of Harrison Hot Springs in my riding. I’m doing this…. The minister was not able to meet with a delegation of local residents about this issue, so I want to bring it to her directly.
I think I’ve received more correspondence and feedback about this issue than any other issue in my last five years of being an MLA. We’ve presented a 1,600-name petition in the Legislature. There have been many letters to the chief inspector of mines about the issues relevant in our community.
I’m wondering if the minister could give us some idea of the timeline for the decision of the statutory decision–maker going forward. There’s been nothing that has been shared with us to date.
Hon. M. Mungall: I know that the member opposite will be sharing this with his constituents, so I just want to share a little bit of the process so that everybody understands. I do know that a meeting with me was requested. However, I decline such meetings like that because it would be very inappropriate for there to be any perception or any type of conversation or perception of conflict from the minister getting involved in what is the decision-making process of a statutory decision–maker.
In that process, in terms of what the statutory decision–maker ultimately decides, I find out the same time as the member does, the same time as the deputy minister. The statutory decision–maker has quite a lot of independence from the political actors, so to speak, as it should be. These decisions should be made in terms of the best interests of the community and of the project.
What’s happening in terms of where the timeline is at? I don’t have a lot of detail. The best person to ask would be the statutory decision–maker, in terms of what that person is doing, but our understanding is that he’s currently not in the decision-making stage. Rather, he’s consulting with people who would be impacted by his decision, and I understand that he is consulting with the community.
L. Throness: In my experience — and I understand the process and appreciate the value of that process — statutory decision–makers can become isolated if they sit in their office in Victoria or in Vancouver or Surrey or wherever they are and make a decision without really having local knowledge and relevance to the community.
Something the minister could do without impinging on the independence of the statutory decision–maker would be to ask the statutory decision–maker to travel to the community and to see why people object and, in particular, to hold a public meeting. The statutory decision–maker can ask the proponent to hold a public meeting at which there are staff from the ministry. I would challenge staff from the ministry to go to the ground and see what people are facing and hear their concerns firsthand. Would the minister commit to doing that?
Hon. M. Mungall: I think it’s very important for any minister of the day to fully respect the authority and decision-making and responsibilities of a statutory decision–maker, and I intend to do exactly that. So I will not be providing any particular directives to the statutory decision–making. I think that would be wrong.
That being said, I do want to reassure the member that with any project, there are ministry staff involved with the statutory decision–maker who actually go to the site and do their due diligence. They are familiar with what the project is requesting to do, based on the actual land base. They’re not sitting in Victoria looking at pictures and maps exclusively. In fact, they’re often out on the site and reviewing it appropriately. Sometimes they hold community meetings, and sometimes they don’t. It’s, again, up to the statutory decision–maker in terms of whether they think that that’s an appropriate course of action or not. My staff are able to let the statutory decision–maker know that community meetings are always preferred, but again, that decision for one is by the statutory decision–maker.
T. Shypitka: Minister, welcome back. For myself, here, it has been a long week — almost over.
The next one I want it do here is just on another…. It’s a mine. It’s a deposit, actually — the Davidson deposit up in Smithers. It’s a moly deposit. It’s referring to a term extension that seems like it’s been clawed back. I’m just wondering if the minister or staff are familiar with what’s happening up there right now.
Hon. M. Mungall: I’m just curious if the member…. When he says “term extension,” he must be talking about an environmental certificate. They’re looking for a term extension on their environmental certificate to operate, which would, then, be a decision by the environmental assessment office.
That’s my understanding — so not in this ministry. We don’t have information on what exactly is going on with that at present. We can help facilitate that and seek it from the environmental assessment office ourselves and get it back to the member, if he likes.
T. Shypitka: Fair enough, Minister. What I’ll do is just briefly give you a little something that I received, and then we’ll see if it pertains to your ministry or not.
This is from the Davidson proponent up in Smithers.
“Briefly, we are having difficulty obtaining a reasonable term extension on a major mining project and believe that the Association for Mineral Exploration of B.C. and the mining exploration of B.C. both hold interest in finding a solution in order to ensure exploration investment dollars are not affected negatively, as it is those dollars that lead to new mine developments.
“There are additional concerns about the MTO” — that’s the Mineral Titles Online system — “and documents being purged by the chief gold commissioner’s office, which are outlined in the attached timeline document.”
I’ve sent you some stuff there. I sent it this afternoon. You might not have picked it up yet. It’s got all the terms and the dates and the timelines and all that stuff.
“Our immediate concern is obtaining a historical represented term extension of 20-plus years on the advanced stage Davidson deposit. Anything less is not supported by the previous extensions, the advanced stage of the project or the level of risk for further investment.”
[R. Glumac in the chair.]
Section 42(5) of the Mineral Tenure Act, 1996, states that “if the lessee complies with this act…the lessee is entitled to a renewal of the lease for one or more further terms not exceeding 30 years”. Typically, I think, they had an extension for 21 years, and then it was clawed back, manually through the MTO, to six years.
It’s a multi-million-dollar project. I think they’ve spent $40 million on it already — 250,000 feet of drilling, 10,000 feet of underground working. A substantial amount of work has been put into this mine, and a six-year extension just isn’t enough for them to attract investments. It’s going to take hundreds of millions of dollars’ worth of investment for this mine to go through. The six years is unfair. Through the MTO, I believe it was, they had a 21-year extension. I think it went to 2040, and now they’re saying it’s 2025.
I’m wondering if that’s pertaining to you at all.
Hon. M. Mungall: We’re going to have to follow up with the member opposite and get in contact with the chief gold commissioner to see precisely why that decision is being made and be able to provide that information to the member.
T. Shypitka: That’s fine. What I’ll also do is I will give you some of the questions I was going to have, also, that the proponents have given me. I’ve sent you information on the timelines and all the documents that you can look at.
Could I also request a meeting with the proponent just for you to hear from him exactly the details of the plan and some of the history and all that other stuff? Would that be acceptable to the minister?
Hon. M. Mungall: Please do give me all the documentation that you have on this, and we’ll work with the chief gold commissioner to determine exactly what’s going on, for our information at the very least and, obviously, for the member’s information.
In terms of a meeting, I would want to find out what precisely is happening. I don’t want to commit to a meeting at this time just because I don’t know if it would be appropriate for me to do so — talking earlier in terms of intervening, in terms of statutory decision–makers and so on. And there are a few other things that prevent some meetings from happening this summer. So let me get back to you about that, and we’ll definitely follow up on this with you as soon as possible.
My ADM reminded me that even if I’m unavailable, he is available any time.
T. Shypitka: That was my question. You’ve got some great staff. I know you’ll be incapacitated at some level here fairly soon, so hopefully the staff will be more than happy to help this person out and hear what they have to say.
I will…. I’m not too sure how I do that — if I just pass it to you, or is it afterwards? There are a couple sheets. Then I’ll make sure that you got those timelines and all those other documents on your computer. You should have got them this afternoon. That’ll be great.
I just want to go into compliance and enforcement a little bit here. This is something we’ve talked about quite a bit in the past, and I’d like to touch on it a little bit now. Is the minister familiar with the changes the previous government made allowing for administrative penalties in the mining industry?
Hon. M. Mungall: Yes, and we use them as necessary.
T. Shypitka: Can the minister explain how these penalties work?
Hon. M. Mungall: The process for the administrative penalties is…. The very first step would be that an inspector would inspect the situation. From there, he or she would write an order to fix what the operator was doing wrong. They’d give the operator a particular timeline, a date, by which things must be completed. When that date rolls around, the inspector then goes to see if that work has been done.
This is where, then, depending on if the work had not been done…. If the work has been done, then great, right? If it has not, then the inspector has a choice of two actions. One is to write an updated order. For example, if there was a reason that they weren’t able to fix the problem — because they ordered a part, or something like that, and it was delayed due to some problems; perhaps at the border; who knows? — then you would normally find that in that situation, the inspector would make accommodations for that.
However, if it looks like there is an unwillingness to fix the problem, the inspector would likely submit a report to the deputy chief inspector of the compliance and enforcement branch. This is a new position. They would have recommendations for the penalties that the deputy chief inspector may want to consider.
From there, if that deputy chief inspector disagrees, then she will write up a further order to the company. It’s at that point that the company can then defend their perspective to the deputy chief inspector. Then the deputy chief inspector will issue a decision one way or another.
Normally what happens at this stage is that the operator will comply with whatever the deputy chief inspector has ordered. However, if they disagree, there’s still an appeal type of opportunity, and that would then go to the Environmental Appeal Board.
T. Shypitka: So at what point do these penalties get introduced? When they go to the appeal board and they’re deemed to pay a penalty?
Hon. M. Mungall: What has happened to date is that any time we issue an administrative penalty, by the time it gets to the deputy chief inspector, they will comply with whatever penalty we’ve issued, and they have done so. We have not yet seen anybody go into that final stage of the Environmental Appeal Board.
Should the Environmental Appeal Board, however, uphold the decision by the chief deputy inspector, it is at that time that the operator would be required to comply with the order that is finally determined by the Environmental Appeal Board — and the penalty along with it.
T. Shypitka: Quite a process, a lot of moving parts. It looks like there’s a lot of collaboration in there and going to the proponent or the person that’s running the operation in an effort to right a wrong or to work with industry that way. As the minister stated, nobody’s been penalized thus far with this process, it seems, and that’s a good thing. That’s government working together with industry, and that’s always good to see.
Because of that, can the minister confirm that these penalties will give her ministry more flexibility through compliance and enforcement?
Hon. M. Mungall: From my view, I feel like this process is one that actually allows for quite a bit of flexibility. It allows us to recognize that there are real circumstances that might occur, legitimate circumstances that might occur, where an operator is having some trouble meeting, for example, that fixed timeline to comply with an order.
I mentioned, for example, if a part is delayed in terms of its shipping or…. Goodness knows, I could probably sit here and dream up a lot of different things, but I think the member gets the point — that we do allow for that flexibility.
I would be reticent to have an increased amount of flexibility in this process. I think it’s a good process, and the reason why is that we are ultimately the regulator, at the end of the day, and we have to make sure that our primary focus is always working in the public interest. And I think we’ve met that balance.
T. Shypitka: I understand, through the last government, the previous government….
They did a worldwide study on compliance and enforcement to see if compliance and enforcement was separated in any other jurisdiction. Can the minister tell us what the results of that were, on the last study that the staff did there?
The Chair: The member would like to add to the question.
T. Shypitka: Sorry, I think I said “separated,” but what I wanted to say was “separated from the ministry.”
Hon. M. Mungall: There are a variety of models around the world and in North America alone. A lot of jurisdictions have found what works best for them. For example, you might find in some jurisdictions there’s a completely independent compliance and enforcement branch that looks a lot like the Oil and Gas Commission. Again, just an example.
You might find in other jurisdictions that permitting is a separate branch from compliance and enforcement and that’s the only separation. But compliance and enforcement remains within the ministry. In other jurisdictions, you might find that there’s a compliance division, a permitting division and an enforcement division, each with their own ADM.
It really depends on what that jurisdiction’s needs are and how they’ve chosen to do it. We’re still looking at a lot of that, as we want to identify how best we can ensure that we have very strong compliance and enforcement here in B.C.
T. Shypitka: So what I’m hearing, I guess, from the minister is there are no examples of compliance and enforcement separated from the ministry itself.
Hon. M. Mungall: Yes, there are.
T. Shypitka: Oh, there are? Can the minister tell me what jurisdictions separate compliance and enforcement out of the ministry?
Hon. M. Mungall: What the ministry has been doing is looking at not just in terms of how mining is being regulated in other jurisdictions. They’ve been looking at a variety of different aspects — environment, energy. What we have found is in terms of mining, the member is right. There are no mining compliance and enforcement branches external to a ministry that we’ve been able to find.
I kind of assume that based on the aggregate of all of our research. But actually, what we’re referring to is how energy has been regulated in some of the other jurisdictions, notably Alberta, and our own as well in terms of oil and gas with the Oil and Gas Commission. You do have an external regulator, an external compliance and enforcement regulator from the ministry.
But in terms of mining, no, we haven’t found anybody doing that externally.
T. Shypitka: Thank you, Minister, for the clarification.
Just over seven months ago, I guess, back on November 21 during our last estimates, the minister cited Ontario and Quebec as examples of jurisdictions that operated compliance and enforcement separately because “those who do permitting are not the same people who do compliance and enforcement. Those people are not the same. They are reporting to different supervisors and up the chain.”
Can the minister confirm that this is what the Auditor General recommended in her review?
Hon. M. Mungall: I don’t even want to try and attempt to speak for the Auditor General and say what her specific intentions were with her report. That is her job to do.
What we are doing, however, as a ministry, is that we do regularly engage with the Auditor General in terms of some of the ideas that we have been looking at, to have a better understanding if those would meet what her intentions were.
T. Shypitka: I believe — and I’ll confirm it in a second — that the mandate of the ministry was to go by the recommendations of the Auditor General. On page 11 of the report — and I’ll look it up here just to confirm — the quote is: “Our expectation is that this new unit” — compliance and enforcement — “would not reside within the ministry.” Can the minister confirm that?
Hon. M. Mungall: We’re working with the Auditor General to have a strong understanding of exactly what she is looking for. But ultimately, the responsibility to finalize what our compliance and enforcement branch is going to look like…. That responsibility rests with government. The Auditor General provides recommendations. We take her recommendations very seriously. That’s why I said to the member earlier…. That is why we are working with her and engaging with her regularly as we go through this process.
T. Shypitka: I don’t know. I’ll have to go back to Hansard. Did the minister not just say previous to this question that you weren’t going to work with…? The Auditor General’s report was just hers and that you’re going to do your own thing and you’re not about to step on any toes with the Auditor General? I’ll have to go back.
In the mandate letter for the Ministry of Mines is to take the recommendations of the Auditor General and the Auditor General report from 2017. In that report, it says: “Our expectation is that this new unit would not reside within this ministry.” I’d like to confirm with the minister. Is she keeping compliance and enforcement in the ministry, or is she breaking it out?
Hon. M. Mungall: As I previously said to the member, we are looking at a variety of examples around North America. We are looking at how they are addressing it, and we’re currently in the research stage.
He’s asking a question as though we’ve already made decisions. We haven’t made any decisions of how this is ultimately going to result, because we are in the research stage.
T. Shypitka: Well, the research stage has been going on for over seven months. I asked this question back in November, and the answer from the minister was that they looked at…. They cited Quebec and Ontario as examples of jurisdictions, although they’re not outside the ministry. They’re broken separately within the ministry — separate ADMs, I believe, in that example.
In the last seven months, what jurisdictions, during the research stage…? What examples is the minister looking at, and which ones are they compelling to follow?
Hon. M. Mungall: I appreciate the member is new to this House and is therefore new to understanding government processes and how things take place. So let me just say right now that looking at other jurisdictions is by no means, and would never be, the only thing a government does when looking to develop a new branch of operations. I think that is pretty standard and par for the course.
I think what the member is trying to get at is: what is government doing in terms of trying to meet the recommendation put forward by the Auditor General on this? I’m happy to answer that question.
We’ve established the deputy ministers mining compliance and enforcement board, comprised of Environment, Energy and Mines and environmental assessment. The board’s terms of reference and the minutes and action items are all available on line.
In undertaking a review of other regulators’ organizational structures, my ministry has found that organizations separate permitting and compliance and enforcement functions, often within the same agency — so within the same ministry or state department or whatever. The Ministry of Energy and Mines is now working to develop options for establishing an independent oversight unit along with appropriate controls to ensure any promotional role of the ministry is separate and distinct from the regulatory role.
As I said, now, the member opposite is determined to conclude that when we say independent oversight unit, that is somehow outside of the ministry. There’s been no decision on whether it’s outside of the ministry or inside of the ministry. The point is that it would be independent from the permit holders. The permit holders would not be the same people doing compliance and enforcement. That’s ultimately the goal, and that’s what the Auditor General, when we engage with her as part of this process, is saying to us — that that is a very critical function.
Keeping in mind along with this, we, as a ministry, need to look at what would be the budgetary implications, and we need to be making submissions to Treasury Board and to the budgetary process for this. We also have to engage with staff. There are collective agreements but also just general respect for the work that people do and how their work obligations may have to change.
All of that needs to take place, and to do it within this time frame that the member opposite has suggested of seven months since our last budget estimates would be miraculous, at best, for government to achieve something like that.
T. Shypitka: I would have to agree with that.
The question was: are you looking at any other jurisdictions? It’s a fairly simple question. The minister didn’t say any specific jurisdiction. That’s got to be something on the top of her mind, I would imagine, if she’s going through this research, that we are looking at certain things. All I wanted to know was which jurisdiction.
Hon. M. Mungall: If the member wanted to know just which jurisdictions, I would have been able to answer that early on, but he asked just if we were, and the answer was yes.
To then further elaborate on which jurisdictions we’re looking at, we’re looking at Yukon and Queensland. He’s mentioned Ontario and Quebec from previous estimates. Obviously, I’ve already mentioned Alberta and looking at what they’re doing. If he wants a more fulsome list than that, I’m happy to provide it following the budget estimates. We don’t have the entire list with us right now.
T. Shypitka: Does the minister think that she will get the best compliance and enforcement out of a group of public servants who work in permitting inspections, as we do now, or from a group that is separate from permitting inspections of mines?
Hon. M. Mungall: As I stated earlier, this is exactly what we’re trying to figure out right now. I have made no personal conclusions. The ministry has made no conclusions. We’re actually working on this right now. Ultimately, there’ll be a submission coming back with some recommendations to government.
T. Shypitka: All right. Thank you, Minister.
Through the permitting process, as the minister is probably well aware, there’s well over 100 conditions for some of these mines — some even closer to 200 conditions.
Does it not make sense — just a yes-or-no question, I guess, here — to have these people that are working in compliance and enforcement be the ones that are actually inspecting to ensure that the compliance is met on these permits and overseeing that the work is done completely by the company?
As I said, there are a lot of conditions. It’s very technical sometimes, and it can take years to get put through. So does it not make sense for those that are putting the permitting together to be the same people that are doing the enforcement and compliance?
Hon. M. Mungall: Whether it’s the exact same person who’s issuing the permit as is doing the compliance and enforcement, or whether it’s different people… In the latter scenario, you would find that those people would be working together closely in some fashion. If it’s an independent body outside of the ministry, they would still need to collaborate and work with the permit issuer to have an understanding of what the intentions were — not only the intentions but in terms of any details they may need to know — so that they can do their job effectively.
If it’s the same person, obviously, that seems to be a lot easier. However, you’ve got to keep in mind that there are other issues at play here, such as workload, travel time and any perceived conflicts of interest, for example. There are a variety of things, and that is precisely why other jurisdictions have gone with separating the two out. It’s precisely why the Auditor General made the recommendation she was looking at, in terms of separating the two out, and it’s why we are looking at it as well.
With that, the member wanted to know which jurisdictions we are looking at. I’ve already mentioned a few. In addition to that, there’s Nova Scotia, the Canada energy board, the U.S. EPA as well.
T. Shypitka: So whether it’s broken out of the ministry or kept inside the ministry, it seems like the minister is looking at part of the AG’s recommendation, and that’s to separate it in some form. That would take extra staff, obviously. We’re not using the same people, as the minister is saying.
In fact, actually, according to a document obtained through freedom of information, the advice from the minister’s own ministry states this: “…would require more staff, all having the same technical knowledge to ensure knowledge of mining operations currently held by permitting inspectors can be transferred to C and E.”
If you decide to go with option 3, the functional and organizational separation of roles, how many new staff will be required to start this new office, and how much will this cost the taxpayers?
Hon. M. Mungall: If separating out compliance and enforcement is ultimately where we decide to go…. We have not made a decision at this stage yet. But yes, we are looking at it, and I think that’s the appropriate thing to do. I hope that the member opposite understands that. What we are trying to achieve in all of this is regulatory excellence. We want to make sure that we’re delivering on best practices for British Columbians. So if we do separate it out, would it require more people? Yes, it would. Would it cost more? Likely so.
That being said, we’re not just recklessly wanting to increase the number of staff just for the sake of increasing the number of staff. Obviously, they would have a very specific job that they need to do. And we’d be wanting to make sure that we are delivering on services that protect the public interests and are ensuring that we’re good regulators and that we are meeting a high standard of excellence.
I have to say that if there’s any concern in terms of increased costs to taxpayers, well, if we have to spend a little bit more to prevent something like Mount Polley from ever happening again, it’s worth every penny, in my books.
T. Shypitka: So the minister doesn’t know how much this would cost. She says “every penny,” but where is it in the budget? We need to know. These are important things. The minister is rolling her eyes and shaking her head, and yet, she’s failing to answer any of the questions. It’s a little disappointing.
The investors and the industry want to know. There has been a mandate letter, right in front of me, saying they will follow the recommendations of the AG. Now she’s saying: “It might be in; it might be out. We haven’t decided quite yet. We’re under review.” But clearly, in the mandate letter, it says she will do that. She has no budget on what it’s going to look like, or they have no one else that’s on any of that stuff. So a little disappointing once again. But I’ve got to move on, and I’m going to hand it over to my colleague.
M. Bernier: Before I move along to a few more topics, recognizing that our time is running to an end here, in short…. So we’re going to do the best we can here. But I have one quick other question on the mining side that a colleague would like to just ask. What changes have been made in the past six months on water discharge permits for the mines, both existing and new permits — water discharge permits for mining?
Interjection.
M. Bernier: Yes, just in general. Have there been any changes within the ministry in the last six months?
Hon. M. Mungall: Once the water is discharged from the mine site and they have a permit to do so, any changes to those types of permitting or anything like that is actually not in this ministry. It would be determined by the Ministry of Environment, under…. The acts governing the water discharge permits would be the Water Sustainability Act and the Environmental Management Act.
With that, Chair, I ask if we can take a five-minute break.
The Chair: We’ll have a recess for five minutes.
The committee recessed from 3:42 p.m. to 3:50 p.m.
[R. Glumac in the chair.]
M. Bernier: We’ll try to see if we can do a marathon run here, but it’ll be a very short marathon right through to the end.
I’m going to jump right in here with some more office-related questions. Can the minister first confirm: does she have an EA or any ministry staff or political staff working in her constituency office in her riding?
Hon. M. Mungall: My executive assistant is housed in my Nelson-Creston community office.
M. Bernier: Can the minister…? Does she agree that any and all activity in her office, including the conduct of staff and the judgment of staff in executing their duties, is actually the responsibility of the minister to oversee?
Hon. M. Mungall: Yes, to the best of my abilities. If something occurs that is not appropriate and it contravenes appropriate conduct, it is my responsibility to also discipline them.
M. Bernier: Can the minister confirm that her staff, then, since she took office, to the best of her knowledge, have not done anything inappropriate that contravenes any of the acts?
Hon. M. Mungall: To the best of my knowledge, they have not done anything inappropriate.
M. Bernier: See, I told you we’d go quickly here. Is the minister aware of the Composite group?
Hon. M. Mungall: Not that I know of. That doesn’t sound familiar.
M. Bernier: Is the minister aware of a staff member that worked for her named Laurie Winstanley?
Hon. M. Mungall: Laurie Winstanley was hired not by myself, but she was a temporary ministerial assistant when we first formed government.
M. Bernier: Laurie Winstanley was working in the minister’s office then — we’ve confirmed that — for a brief period of time. The minister confirmed that. Under the terms of contract, what was her role?
Hon. M. Mungall: She was a ministerial assistant.
M. Bernier: Can the minister just quickly explain, then, what usually are the roles of ministerial assistants?
Hon. M. Mungall: I’ll just further elaborate. She was a ministerial assistant until, I believe, sometime in September or October. Her role was, first off, as a new minister, to help get things settled.
She was actually a sole staff person for well over 30 days, and so she provided a lot of scheduling support, a lot of correspondence support. She helped arrange initial briefings so I could be briefed on the transition binders and all the transitional information from the previous government to this government. She helped in terms of setting up meetings and any preparatory work for those meetings. That was the nature of her duties.
M. Bernier: I’m just not sure exactly how long this individual worked. Under the OIC, just to put on the record, she was signed up for a salary of $94,500. I’m not sure how much of that was actually charged out or not and kind of irrelevant to the point. Is it normal for a ministerial assistant to execute contracts?
Hon. M. Mungall: I’m not too sure what he means by contracts — to execute contracts with consultants within the ministry, execute contracts on a personal note for herself with someone else outside of her work duties? If he could elaborate.
M. Bernier: Sure. Well, where I’m going with this is we have a staff person who was working in the minister’s office for a period of time during transition that was hired by this now government — working for this minister — that was in charge of helping with transition, it sounds like, from what the minister was saying. What I’m asking is: is it normal for someone in the role of a ministerial assistant to be executing contracts by trying to hire people to do things for the minister?
Hon. M. Mungall: I would say it is…. It wouldn’t be uncommon for someone in her previous position to take on administrative duties that are required in that particular time frame to fulfil her job duties. Like I said, for well over a month — I said for about, over, 30 days — she was the only staff person I had within the ministry office. She might have conducted activities that you would normally find with an administrative coordinator, for example, or somebody else, simply because there was nobody else.
M. Bernier: During that time, then, is she aware of the fact that Ms. Winstanley allowed for a contract to be worked on for $200 an hour, for $5,000, to an NDP insider, Marvin Shaffer, to actually redo the transition binder, which the minister already had?
Hon. M. Mungall: When I first started as minister, I think anybody can understand that there was a lot of information that I needed to get up to speed on in a very, very short order. A lot of the information was quite new to me. So I approved a contract with Marvin Shaffer. I’m sure if the member has FOI’d that information, he would see my signature on it.
I approved a contract with Marvin Shaffer not because he’s been described as an NDP insider by the member opposite, but because he’s one of the leading energy economists in B.C. and knows energy files inside and out. I was seeking his help to better understand the transitional information that was given to me, which was, I’d say, about six inches thick. It was quite dense material, and he provided a lot of insight and a lot of expertise in better understanding it.
M. Bernier: I appreciate that when the minister is new in a role…. I know what that’s like. I’ve been there. Of course, in the role she’s in now, I’ve read her binders and understand — probably, maybe, not to the extent that the minister does. But I’m well aware of a lot that goes on within that ministry.
Where I’m going with this, though is: does the minister feel it’s appropriate that her ministerial staff…? We did FOI. We did get information. One of the challenges I have, though…. I want the minister’s comment on this. Does she feel it’s appropriate that this was done through the Composite group, who her ministerial staff actually is a principal on and was since 1996?
When we FOI’d to get information on this, in fact, it came back that it was being done by this individual, her ministerial assistant, through her, through her company and through her company’s email. Does she feel that’s appropriate?
Hon. M. Mungall: I don’t know what kind of information the member has. I’m not going to start making accusations or making conclusions or anything like that without having a full understanding of all the information that he has, nor hearing from the people that he’s implicating in his line of questioning.
That being said, if he’s concerned about an email address that may have been used that was not a government email address, I should let him know that many of us did not have a government email address several weeks into being government. Often several staff and MLAs had to use personal email addresses to actually conduct business, not because that’s what we wanted to do but because there was no other option.
M. Bernier: Is the minister, then, condoning…? She’s saying that it’s okay for her staff — who also owns a consulting group that is sometimes used, or was, by the ministry and who has people working for this Composite group who are actually former NDP MLAs as well — to be using private business emails to conduct ministerial business?
Hon. M. Mungall: What I am saying is that when you have no other email address because the government IT department has not set one up for you and you need to conduct business…. You’re in a new contract, you have a request from your employer — that is that “I need help with this” — you need to find that help, and yet you still don’t have an email address. You might have to use your personal email address, whether it’s at the Composite group, at Gmail, at Telus, at Shaw, at Yahoo, at Hotmail — whatever it is.
Yeah, it’s unfortunate that IT was struggling to get all these emails up and running — a big job for them, though. I understand why it was. And I understand why somebody might have to use their personal email because they had no another option but to do so.
M. Bernier: Did the minister attend a conference…? October 27, the minister was asked to attend a conference that was actually being put on by the same Composite Public Affairs group. Did she attend that conference that they asked her to attend?
Hon. M. Mungall: No.
M. Bernier: I appreciate that. I know the minister didn’t attend. She was planning to attend. In fact, can she confirm that she probably received an email from the Premier’s office suggesting she doesn’t?
Hon. M. Mungall: I was neither here nor there in terms of whether or not to attend that particular conference. The Premier’s office advice was that it would be best not to, which was fine with me because I was actually looking forward to going back to my constituency that weekend.
M. Bernier: Maybe the minister can explain why, then. I mean, we get invited to conferences all the time to speak, so why would this one, all of a sudden, get direction from the Premier’s office not to attend?
Hon. M. Mungall: You’d have to ask the Premier that question in the Premier’s estimates. I know that I got an email suggesting that there was no need for me to go. And as I said, it was fine by me, because I was looking forward to getting back to my constituency that weekend.
M. Bernier: One of the easy ways, then, the minister can put this issue to bed…. If she’s trying to say that she, I assume, doesn’t condone companies or employees doing work on private emails unless, as she’s trying to say to the House, they had no choice, that is an interesting line of defence. It’s easy to clear it up. Will the minister put this forward, then, to the conflict commissioner to look at?
Hon. M. Mungall: I don’t have all the information that the member clearly seems to have. Whether it’s appropriate to put it forward to the Conflict of Interest Commissioner or not, I can’t say one way or another.
M. Bernier: Well, the minister does have the information. She just acknowledged that she had this staff person working for her in her employ. She did acknowledge, I believe, that this person worked for this Composite group. The minister did acknowledge that it’s possible that they were using their private emails because they didn’t have government emails.
She did acknowledge that this person probably let out contracts which might have been, now, on private emails. Those squarely fly in the face of all of the rules we have in government that you can’t do.
Now, if the minister is trying to say that there’s a reason for all this, then, is she willing to send it to the Conflict of Interest Commission just to verify and clear the issue up?
Hon. M. Mungall: Like I said, he says that I have all this information. I don’t. I don’t know what email Laurie Winstanley would have used to seek out various experts to see if they were available to help me go through all of these transition binders. I don’t even know what email she would have used. If he has copies of her emails, then, perhaps he’d like to share them. We can look at them at that time and determine if seeking input from the Conflict of Interest Commissioner is the appropriate way to go.
M. Bernier: Well, I’m going to, I guess, take the minister at face value and say…. From her earlier comments when we first started, if she became aware of anything, she would deal with it. Hopefully, now she is aware of something that was inappropriate. She will do the due diligence. The minister will do the research, and the minister will find out.
Even though I have, I shouldn’t have to supply the minister with this information. I have put it on the record. It is about 30 seconds for her to verify this when she gets back to her office. The minister should be doing the right thing as a representative of the Crown, as a minister, of ensuring that this activity doesn’t happen.
If it was appropriate, then, she can make it clear and say: “Here are the reasons why.” If it was inappropriate, it should be looked at by the Conflict of Interest Commissioner. Will she actually do that work as the minister, do her job as the minister, verify this and do the appropriate action?
Hon. M. Mungall: I have the distinct impression that the member opposite is trying to find something where something doesn’t exist. Again, I was really clear that a lot of people, when they were first hired during that transition phase, did not have government email addresses. So whether her email address was at Composite group, and that’s her personal email address that she used…. Many people have only one email address. I mean, a lot of us as MLAs have, goodness, four or five. But a lot of people in this world actually only have one.
If she was using her business email address for all of her personal work and that was the only email address she had, I don’t understand why the member would think that’s such a terrible thing. That being said, maybe if she had a Gmail account, she might have been using a Gmail account. I don’t know which account she might have been using, because the member has not shared any of that type of information with us here.
That being said, if there’s some wrongdoing by a person who no longer works for government…. I don’t have any authority to conduct any disciplinary action whatsoever, because she no longer works for government.
M. Bernier: Well, I appreciate the minister trying to make that distinction, but that’s actually not her call to make. That’s the Conflict of Interest Commissioner’s call to make. In fact, when Ms. Winstanley was working with the ministry, she had a ministry address because she was able to dictate information and email the deputy minister at the same time that she was able to use her private email to get contracts for the minister to an NDPer.
All I’m trying to say is that the minister has a responsibility here as a member of the Crown, as a minister, when something is brought to her attention, to bring it forward. Now, whether she wants to say she knew or didn’t know, it doesn’t matter. It’s irrelevant now. The minister has to research this and has to bring it forward to the Conflict of Interest Commissioner.
If she’s not willing to do it, then she’s not fulfilling her duties as the Crown. So will she do this and send it through to the Conflict of Interest Commissioner to review? If it’s nothing, like the minister is trying to say, it should be very easy. Conflict of Interest will write back to her and say it’s absolutely nothing. “Nothing to see here,” as the Premier likes to say all the time on issues. So will she do that?
Hon. M. Mungall: I believe I’ve answered this question multiple times, actually. With the short time that we have, I don’t know if the member would like to move on. But I have said that if he’d like to share the information that he has, which I do not have, then I’d take a look at it, and then I would determine if it’s appropriate to be approaching the Conflict of Interest Commissioner.
M. Bernier: With all due respect to the minister, in the short time we do have, it’s mine to choose what questions I ask, not the minister’s. So I just respect the time we have and also ask the minister to answer the questions. She did not give me a straight answer. She ducked the question.
The minister has not said whether she’ll send it to the Conflict of Interest Commissioner. So we’ll just have to wait and see if she actually follows through with that or if she’s going to leave this as a void for other people to decide whether it was a perceived conflict of interest in that.
I’m going to switch to LNG for a moment here. Obviously, today we had what we would agree was a great announcement with Petronas, with the acquirement of some shares, stakes, into the project in Kitimat with Shell and the consortium, LNG. Is the minister still as excited as we are on that?
Hon. M. Mungall: I am very encouraged with today’s announcement from Petronas. They had actually never left their investments in Canada in terms of their operations in the North Montney area of B.C. For them to come back as a major joint venture partner in LNG Canada, I think shows not only the investment interest that exist in the world to invest here in Canada, to invest here in British Columbia, but it also shows the strength of this particular project.
Right now they’re going through their final investment decision process, and I look forward to that coming to a conclusion. I hope that we’ll be seeing a new industry here in British Columbia, an industry that First Nations, from well to tidewater, very much want to see, that they are very much are a part of.
They’ve communicated to me over and over and over again that they are partners with LNG Canada, and they have done their due diligence in researching the type of industry this is. They feel it’s a good industry for British Columbia, and I agree.
M. Bernier: I’m just excited that the minister has found this new-found love for LNG that she and her government didn’t have about a year ago. I mean, that’s encouraging, definitely.
I guess my first question on that is: is that shared equally within her caucus? I know of at least three people who have actually signed petitions to try to stop it.
Hon. M. Mungall: I am very certain that the opinions and activities of other MLAs are not within the scope of the budget estimates debate, so I am not going to comment on the personal views of any other member of this House. In fact, I don’t even need to be commenting on my own personal views, but I get asked, and so I share, to the best of my ability.
That being said, I will not be talking about other members of caucus or other MLAs anywhere in the House in terms of what their personal views may be on any item.
I believe that the petition that the member is referencing is actually a petition about the siting of the former Pacific NorthWest LNG project on Lelu Island. The community and the First Nations in the area felt that that was not an appropriate location, and the local representatives agreed with that.
What actually ended up happening from that was that Petronas took that feedback very seriously — which, to me, shows their value of First Nations input and feedback — and actually began to do work to site their project in a different location. Unfortunately, they made the decision to shut that project down before proceeding.
The Chair: Member, I would encourage you to direct your questions towards Vote 21, which is what we’re discussing here.
M. Bernier: That’s exactly what I’m asking, with all due respect, Chair, because I’m talking about the estimates. I’m talking about…. If I ask for the opinion of the minister…. Actually, the minister’s opinion is valid. I know she always likes to say that it’s not, but why would we need her to be the minister, then?
Does that mean if she’s at the cabinet table, she doesn’t have an opinion? At the cabinet table, she doesn’t speak? She doesn’t represent the ministry? She doesn’t speak on behalf of LNG companies? She doesn’t speak on behalf of mining companies?
Of course, the minister’s personal opinion is important. If I ask questions on that, I hope I get a straightforward answer. But I’ll try to do a little bit easier one for now. Has the minister ever met with company members, people from Petronas, in her time now as minister?
Hon. M. Mungall: Just for the record and just for anybody watching at home and just to make sure that we all understand the rules of this House, the budget estimates debate is actually a debate on budget and operations within the ministry. It’s actually not a debate on anybody’s personal opinion. Therefore, it generally is considered out of scope within this debate.
If members want to ask me my opinion via other mechanisms, they are more than welcome to do so. But let’s just correct that, for the record, in terms of what is within the scope of this debate. That being said, I have answered questions about my personal views and personal opinion. To answer the member’s question just now: yes, I have met with executives from Petronas.
The Chair: Member, I would encourage you again to try to stick your questions to Vote 21.
M. Bernier: I am, with all due respect, Chair. Thank you. I’ll continue to do so.
The minister, then, has confirmed that she’s met with them. Is it fair to say that they discussed their project and maybe, from time to time, might share confidential information with her?
Hon. M. Mungall: Yes.
M. Bernier: Did the minister sign any agreements, nondisclosure agreements, with any of the LNG companies?
Hon. M. Mungall: No.
M. Bernier: Okay. The minister has confirmed that she’s heard confidential information. Does she think that at any time it would be appropriate, then, for her to release publicly any of that private information that she heard during those meetings?
Hon. M. Mungall: Well, it depends what the member’s trying to get at here and what he’s specifically trying to reference and what the general context was.
M. Bernier: I mean, it’s very well known that the minister is excited about the announcement today, so excited that she’s known about it for a while. In fact, the minister has hinted publicly about today’s announcement in the past. Many in the investment world would call it forward-facing information that she has and that she’s shared. Is the minister denying that she said anything publicly about today’s announcement?
Hon. M. Mungall: No, I’m not making any denial, and I’m very curious as to how this impacts the ministry budget and operations.
The Chair: I would encourage the member to direct the questions towards Vote 21 related to the budget. Thank you.
M. Bernier: Which I am, hon. Chair, because as I’m asking these questions, they’re completely pertinent to what’s happening within the ministry. So I’ll continue along with those lines of questioning, with all due respect, because it is pertinent. I know it might be uncomfortable for the minister. She might not want to answer them, but to keep telling me not to ask the question doesn’t change the fact that I should have the right to ask them.
Is the minister acknowledging, then, that she’s had these confidential meetings, that she’s heard information that could be very sensitive? Because I’ve talked with some of these companies, I have information, and I haven’t released it. They’ve told me that, by the way, this can’t be talked about until it’s released publicly because it could affect trading in the markets.
Now the minister has similar information. Has she shared some of that in the past?
Hon. M. Mungall: As I’ve said, Chair, I’m very confused at how this has to do with ministry budget and operations — in terms of what I have said publicly about a project that doesn’t have a final investment decision, that does not actually currently have any boots on the ground in terms of an actual facility or any pipeline or anything like that. In terms of its generating revenue back to the province or any type of permitting that we need to do or so on, I haven’t heard any questions about that.
Rather, these are questions about my conversations with a reporter about information that I may have or may not have had from a proponent of a project. I’m not too sure how this relates to Vote 21, and I would ask for your ruling on this and whether these questions are actually in order.
The Chair: I think what it’s in order is: if the questions relate to the budget and operations of the ministry, then the questions are in order. Let’s try to stick to that.
M. Bernier: Again, my point is that this is completely about the operations of the ministry and the minister — her doing her due diligence, her doing her job in a capacity as a minister of the Crown, as a member of cabinet who has sensitive and confidential information.
On May 1, the minister, actually, was quoted as saying: “To fully emphasize a point, Petronas is now investing in LNG Canada’s project.” That was three, four weeks before they actually publicly made the announcement. In fact, we had the company having to come out back-pedaling, because they had to deny, that that was not the case, and now they’ve had to come out and say, “Yes, in fact, it is,” because they were worried about the comments, I would argue, that the minister made.
That affects the stock markets. That affects the integrity of the government. It also affects the credibility of the minister and the government. So of course it’s relating to the operations.
Is the minister denying that she made those comments then?
Hon. M. Mungall: Again, I would seek the ruling from the Chair on this particular question, because, again, my view of the question is that it does not have to do with any of the budgetary items or the operational items of the ministry. It has nothing to do with permitting. It has nothing to do with any type of regulatory function. Rather, it is directed at personal activity, and that is actually not the function of the budget estimates debate.
M. Bernier: Not to make it awkward for the Chair and for everybody else as well, I am going to move on, recognizing the time. But I just do believe that the minister needs to remember that she does represent not only her ministry, but she represents the government. She represents the province.
The credibility of trust is incredibly important when we’re talking about companies and investment in the province of British Columbia. If they cannot trust the government, they are not going to want to come here and invest very easily. So those are important questions that the minister needs to be aware of.
As we’ve been moving forward with LNG, what role does the minister actually play within the discussions and within the decision-making around LNG in B.C.?
Hon. M. Mungall: Very quickly, sorry. If the member could just repeat the last question there.
M. Bernier: Actually, it’s not asking for your opinion either. It’s actually asking: what’s the minister’s role as the government is moving forward to try to secure LNG in British Columbia?
Hon. M. Mungall: My overall role in terms of LNG — and the ministry as a whole, really — is to provide leadership in the broadest sense of the term.
For example, on this particular file, when I was informed earlier on that B.C. had a competitiveness issue in terms of liquefied natural gas and that if we wanted to develop the industry here, we were going to have to address those issues around our competitiveness, my role — and I fulfilled that role, and I fulfilled my duties — was: well, let’s get to work. Let’s see what it is that we can do to make B.C. more competitive on the global stage if we want to bring this industry here.
I also have a role to liaise with stakeholders. I also have a role to liaise with First Nations and to consult with them on this file, on any file, and so that’s the function that I’ve provided.
M. Bernier: I don’t want to minimize the minister’s roles or duties when it comes to this. In fact, I would argue that this minister’s role should be probably the most important one when it comes to LNG and that.
But when the LNG framework was announced by the Premier…. He was really excited to announce. He had the Minister of Finance. He had the minister’s deputy minister. He had other people involved, but he never mentioned the minister for oil, gas, energy and mines, who, I feel, should be responsible in some way when the framework was being put together. The minister was left absent off that framework.
What role has the minister had, actually, with the framework since she wasn’t listed or mentioned by the Premier?
Hon. M. Mungall: In terms of who took on the new framework for LNG and building B.C.’s competitiveness on the global stage for this industry, it was both this ministry and the Ministry of Finance that did the day-in and day-out work.
I don’t want to take all the credit for what was amazing work done by staff. I was blown away at the due diligence, especially my deputy minister, who is sitting next to me today. He put in extremely long hours, a lot of sweat, a lot of thought and a lot of creativity into this. I don’t want to steal away from giving him full credit for being the person who put the nose to the grindstone.
But which ministers were responsible in terms of providing leadership and being the entities who are responsible in terms of reviewing all the work and ensuring that the public interest was being met and providing that role in terms of not just leadership but also the connection back to the public? That was myself, absolutely, from the very beginning to the very end, and the Minister of Finance, as well, because a lot of the implications were tax implications as we looked at competitiveness.
If the member opposite is referring to the Premier’s press event, I believe that was in January, and I was back in the constituency, pregnant, but nobody knew it at the time. Not only was I in the family way, but if he would like to hear all of my wonderful Castlegar Airport stories and the various cancellations that happen at that time of year, I’d be happy to share them. But maybe not in this venue, because it’s very lengthy.
M. Bernier: Well, I’ve had the privilege of flying in and out of Castlegar as well, so I can appreciate what the minister goes through. And I do want to thank the minister for the acknowledgement of her staff. I have the utmost respect for her staff, especially her deputy minister and the work that he does and the advice and the guidance on this file. I trust that wholeheartedly.
As we’re going through the LNG framework, what is the ministry and government thinking is going to happen in the LNG industry? We know we have one. Do they think one is possibly coming, as the minister alluded to — a possible FID, which we’re all hoping for later on this year?
There were, at some times, 20-some-odd LNG projects on the books that were being reviewed, looking at permitting and being discussed. Where does the minister see the LNG industry going in B.C. with the discussions she’s had? How many are they hoping to secure or achieve?
Hon. M. Mungall: We currently have what you could say are 18 different projects on the books. But in terms of which ones are going concerns that we’re feeling are probably on their way to some success: LNG Canada, obviously, and Kitimat LNG. That’s Chevron and Woodside. I’ll let the member opposite know that I recently wrote a letter indicating this government’s support for Kitimat LNG for when they are speaking with their investors, which they are doing all the time.
Then there’s, of course, Woodfibre LNG and Kwispaa LNG, which recently changed its name from Steelhead. The member might be more familiar with their former name.
M. Bernier: To maybe discuss just quickly the one that’s really a very large one but one of the most pertinent ones right now because of today’s announcement…. The minister mentioned earlier in the comments, then, about all the support, especially First Nations support and community support. Can the minister explain what discussions — or what the thoughts are? How is the gas going to get to port?
Hon. M. Mungall: For LNG Canada, their project would rely on Coastal GasLink. That would be the pipeline that would take the gas from the northeast, from the member’s region, to the facility, which would be located in Kitimat, very close to Rio Tinto — on their own property, actually.
M. Bernier: Is the minister aware, then, of…. Because obviously a concern that companies are going to have is: can we even build a pipeline? Is the minister aware of any challenges that they foresee — Coastal GasLink, TransCanada, any of the pipelines running in the north — to get the gas to Kitimat, where it’s going to be needed?
Because we talked about First Nations support. It’s my understanding that the companies have done an incredible amount of due diligence when it comes to acquiring First Nations support through consultation. Is that still the case, or does she see any protests or any issues that might come along?
Hon. M. Mungall: In terms of any issues. The member kept it broad, so I’m going to speak to some of those issues — government in terms of permitting and so on.
I have a lot of confidence in Coastal GasLink, that they will be doing their due diligence in making sure that they dot every i and cross every t in terms of the permitting process, and that government will therefore, then, be issuing permits. I’m not too concerned on that level. If concerns arise, we’ll deal with them appropriately as the regulator, as they come along.
I know the member is likely aware of the Unist’ot’en healing camp, where people who are involved with the camp are very opposed to pipelines in general. They were opposed to the northern gateway pipeline, as a lot of the First Nations on the very same route were as well. But they are not opposed to this pipeline, nor are they opposed to this industry. There are some people within the Wet’suwet’en Nation who have put together this camp and who are opposed. It’s their democratic right to express that opposition in a legal and lawful way.
That being said, the member knows that this government values, very strongly, reconciliation and building relationships — strong relationships, respectful relationships and meaningful relationships — with First Nations. That’s precisely why we have already begun. Myself personally as well as the Minister of Indigenous Relations and Reconciliation have reached out to the Wet’suwet’en Nation, both the hereditary chiefs and band councils, and started to have initial discussions to build that relationship.
That is where we are starting at, right now. Of course, the Minister of Forests, Lands and Natural Resource Operations, who’s the MLA for that very area, has a very long-standing, multi-decade relationship with the nation. He continues to ensure that that is a good relationship. So we’re working to build that relationship.
I would also note, if the member is unaware…. Witset, which was formerly Moricetown — their council has voted in favour of signing and implementing an impact-benefit agreement for this pipeline.
M. Bernier: I appreciate the minister saying it. I was aware, but thank you anyway.
I do acknowledge and recognize that people have a democratic right to voice their opinion — and, as the minister said, “in a legally and lawful way.”
Is the minister willing, then, to go on the record and say that any unlawful, illegal activity will not be condoned, and this government and her ministry will take a stand against that?
Hon. M. Mungall: I think that we would do that in any situation, wherever that took place. I think it’s very important that civil disobedience and the democratic right to freedom of assemble and freedom of speech is something I hold near and dear. I’ve been on picket lines myself. But it’s absolutely imperative that we uphold the rule of law and that violence is not condoned.
Sorry. I could go on, but I’ll let you ask a question.
M. Bernier: Maybe I’ll say something to the minister so she can keep going, then. I do appreciate the comments.
Again, I find it a little bit challenging in light of what’s happening with another pipeline project in the southern part of B.C., where some people are recognizing their legal, lawful right to oppose a project and others are not. I don’t see any leadership from this government on that pipeline project — stepping out and condemning the actions of those people.
Why would it be okay for one project and one pipeline and not another one?
Hon. M. Mungall: I have heard the Premier and other ministers and MLAs say on numerous occasions and numerous times that any illegal activity and violence, in particular, will not be condoned in terms of the Kinder Morgan pipeline or any type of activity.
I would again say that in terms of whether it’s this pipeline in Burnaby or it’s a pipeline in the north or it’s any other type of project, violence that would result in, especially, harm to workers who may be working — to whatever, whether they’re siting or whether they’re actually building — and anything that could harm other people is just absolutely unacceptable. It’s just absolutely unacceptable. It is illegal, and people who conduct that would be arrested, and they would be prosecuted according to the law.
M. Bernier: I was actually giving the minister an opportunity to have a soapbox there. To date, I actually hadn’t heard the minister — who I feel is responsible, again, for this — make any public comments on that. So I do appreciate it. I do know the minister’s personal background, from what she’s shared, anyway.
I do appreciate, again, that people have the democratic, legal, lawful right to have a difference of opinion and to be able to express that. But, again, I’m hoping….
On whatever project it is, companies need certainty. Companies need to know that government has got their back if they’re going to invest. They need to know that if something is happening that is unlawful, whether people agree to it or not, they can’t come out and do unlawful acts. Government and the courts should be doing the appropriate action, and government has to have leadership there, so I appreciate the minister’s comments.
I know we’re almost out of time, but I want to make sure I ask a few more questions since we’re on LNG still. With the announcement today and with the hopeful FID announcement later this year, does the government intend or have to come back to the House to change any of the former acts, laws that were created by the previous government around LNG strategy?
Hon. M. Mungall: Our written commitment to LNG Canada is that, should they have a positive FID — so that’s if that FID takes place, not before, but if we get an FID — we will have to take on some legislative activities, repealing the LNG Income Tax Act.
There will also be some other orders that we will have to do in an effort to meet our commitments to the industry should a positive FID take place.
M. Bernier: Can the minister explain, then, why she’d have to repeal the LNG Income Tax Act?
Hon. M. Mungall: This is one of the many tools that the member would find in our new framework on LNG. It’s part of our commitment to the industry, and so we would need to follow through on that commitment.
M. Bernier: Well, I appreciate that. It didn’t quite answer the question. Of course, there’s a commitment. What does that commitment look like?
The reason I’m asking is…. The minister — we’re still somewhat on speaking terms, I hope, at the end of this — and the opposition at the time, before they were government, were very vocal on the LNG Income Tax Act, and other acts that were brought in to support the LNG industry, that we were giving the farm away. We were just, like, doing all this stuff that was going to hurt the people of British Columbia. We were not going to generate enough revenue. We were actually letting companies just walk all over us.
Is the minister actually looking at the LNG Income Tax Act and others to actually make those rules stricter and to actually generate more revenue — like they said when they were in opposition that we should be doing?
Hon. M. Mungall: A lot on the global stage around natural gas and LNG has changed since 2014. I believe that was the year that the LNG Income Tax Act was first introduced. Those changes that have happened in the global marketplace resulted in B.C. becoming quite uncompetitive.
We’ve addressed those competitive issues, and in that mix was repealing this Income Tax Act. If we wanted to bring this industry here and be competitive — recognizing the place that we’re in today in 2018 rather than the place that we wish we were in back in 2014 — we had to make adjustments.
M. Bernier: I had to check my pulse there for a second to make sure I was actually awake, and I’m still alive for that comment. Because I’m having these amazingly horrific flashbacks of this minister and the now Premier and others, who stood up here and said, when we put in the LNG Income Tax Act, that it wasn’t enough, that we should have done more. Now I’m hearing that in order to be competitive, we should be getting rid of it. At the time, we said it was competitive, that we should be having it to generate revenue for the people of British Columbia.
Now, don’t get me wrong. I’m probably one of the most fierce LNG and natural gas advocates in the province. But it’s also one of these things that I find quite hypocritical, from this minister and this government, that in order to get LNG, they’re saying we have to actually give away even more, because they’re saying now times have changed. What benefits, can the minister say, is LNG going to bring to British Columbia, then?
Hon. M. Mungall: In the interest of time, I’ll try and keep the list short in terms of the benefits to British Columbia from LNG Canada’s projects, specifically. I’m not even going to go into the entire industry.
I’m sure that in his lifetime, the member has had opportunities to change his mind, change his perspective, recognizing that where he might end up is different than where he was earlier. I think all good representatives should always be live to not sticking in the mud and staying the same — not being static but being dynamic — especially when they’re presented with new information.
What are the benefits of LNG Canada’s potential project to British Columbia? First off, the revenue side is $22 billion to B.C. alone over 40 years. That’s not including to local governments or to the federal government or to First Nations. That’s just to British Columbia. And 5,000 construction jobs, 800 to 900 permanent high-paying family-supporting jobs.
We have 19 signed impact-and-benefits agreements with First Nations. I don’t have the total of what those are, but they’re very significant — and, I would say, meaningful partnerships with First Nations in this initiative, in this endeavour. That’s not my opinion. That’s the opinion of First Nations who have made it one of their top priorities to come and tell me that.
Skills training to First Nations that are also outside of the impact-and-benefits agreements, skills that they’ll be able to transfer from jobs that they might be able to get in the construction phase to other potential jobs. That’s just a short list of some of the benefits that B.C. specifically will realize.
M. Bernier: I recognize time has wound up. I guess I just wanted to thank the minister and thank her staff. My only closing tongue-in-cheek comment to the minister there was…. As somebody who was working with the LNG advocate and doing all that, it was vaguely familiar, reading out all of the benefits, because I remember listing off almost the exact same list when I was in government to the then opposition.
I do want to thank the minister and her staff for the last couple of days with myself and colleagues who have gotten up. I do know how much work goes in by staff and apologize to staff and other people who were very eager, I’m sure, to help the minister with questions we didn’t get to, who probably put a lot of time and effort into being ready. So I apologize to them that we didn’t have time to get to it and thank the minister for her candidness and, again, wish her well as we go forward this summer.
Hon. M. Mungall: At this time, as we’re wrapping up, I want to thank all ministry staff, all B.C. Hydro staff, all staff at Oil and Gas Commission not only for the work that they do to make estimates possible, putting together an incredible amount of information for me so that we can provide that information to the members opposite, but also for being at the ready. For example, when a member asks a question and we don’t have the answer at our fingertips, there is somebody who is not in this building, who is not sitting next to me, who is at their desk watching estimates — I thank you for just doing that alone — and getting that information so that we can provide it back to the member in the most timely fashion, sometimes within just a few minutes. I really want to appreciate the work that they’re doing as well.
I am so fortunate that the team I’ve inherited is definitely, I think, one of the A-teams in government. They are amazing, hard-working people. I am continually impressed with their professionalism and their dedication to the people of British Columbia. I’m so grateful for all that they do with the estimates process — and what they do year round. So I just want to let British Columbians know that they are very, very fortunate for the staff that they have in this ministry.
Thank you to the members opposite for their questions, for showing that accountability is very important and for making sure that we dive deep into these ministries so that the public is aware of all that’s going on.
With that, I believe I’m supposed to close off debate.
Vote 21: ministry operations, $58,015,000 — approved.
Hon. M. Mungall: I move that the committee rise and report completion of the resolution and ask leave to sit again.
Motion approved.
The committee rose at 4:54 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF
JOBS, TRADE AND
TECHNOLOGY
(continued)
The House in Committee of Supply (Section C); N. Simons in the chair.
The committee met at 1:39 p.m.
On Vote 33: ministry operations, $104,769,000 (continued).
Hon. B. Ralston: Before I begin to receive the questions from the members opposite, I want to actually draw attention to one of the staff here. Rob Mingay is the assistant deputy minister for workforce, immigration and major investments division. I don’t often single out staff like this, but apparently it’s his birthday today. I think we all want to join, everyone here, to wish Rob a happy birthday.
On that happy note, we can perhaps turn it over to questions.
B. Stewart: I guess, first off, we want to wish Rob Mingay a very happy birthday.
On that particular note, I just want to introduce the fact that today we’re going to talk a little bit more about trade and trade agreements. We do have private members’ questions that would like to be addressed first, so I’d like to turn that over to my colleague the member for Prince George–Valemount.
S. Bond: Good afternoon. I certainly want to add my happy birthday wishes to Rob Mingay. I had the pleasure, I think, of working with him for a period of time.
I want to start by asking the minister if he’s familiar with Junior Achievement.
Hon. B. Ralston: Yes, I’m familiar. I just wanted to check some of the details. It’s a non-profit organization that operates throughout the province, typically in association with schools, training young people, typically high school age, in business principles and entrepreneurship.
S. Bond: Junior Achievement is an exceptionally successful program. It teaches children and young people about business and entrepreneurship. It’s a very important set of skills when we look at a knowledge-based economy. Previously, Junior Achievement B.C. has been provided with funding to support the programs that they offer throughout the province. It was particularly important to allow them to provide services outside the Lower Mainland.
I’m wondering if the minister has considered the request of Junior Achievement B.C. and what he can tell us about the government’s commitment to that program and ensuring that students right across British Columbia have the opportunity to participate in that program.
Hon. B. Ralston: I thank the member for the question. The organization has been funded previously by the ministry. There is a proposal before the ministry, and it’s being examined. A recommendation will be coming forth to my office very shortly.
S. Bond: I would like to encourage the minister to find a way to continue the programming, which is really important in British Columbia. Last year alone Junior Achievement reached 2,000 students in the north, 7,000 in the Interior, 8,000 on Vancouver Island, 9,000 in the Fraser Valley–Surrey area and over 12,000 in greater Vancouver.
One of the really creative programs they have looked at is they piloted the Indigenous youth program called Youth Aboriginal Business Circles. They have been delivering 13 Be Entrepreneurial programs in eight First Nations communities. They obviously work very hard to raise funds, but they require the assistance of government to ensure that programs continue to exist outside of the Lower Mainland.
As I understand it, there was an ask that looked at a three-year funding envelope so that they can continue the level of service and expand as they generate funds from other private funders.
Certainly, I would assume, again, with a focus on a business-based technological economy, this is probably pretty good value for taxpayer dollars. Does the minister have a timeline within which Junior Achievement can expect to hear about any funding?
Hon. B. Ralston: I appreciate the member’s interest in this organization and her advocacy for them. The proposal has been received by the ministry. It’s being evaluated. I expect that evaluation and the results of that will come forward with a recommendation to my office within the next few weeks.
S. Bond: I thank the minister for that answer. Again, I know that some of the changes in the education curriculum place a greater importance on work readiness and financial literacy. One of the fantastic things about Junior Achievement is that they work alongside and in collaboration with the school system. I will look forward with anticipation to a positive outcome for Junior Achievement so they can continue their good work.
I know my colleagues have additional questions. I’ve appreciated their willingness to allow me to ask one other set of questions.
I know the minister shared lunch with Community Futures. I was there as well, and he made some very complimentary comments about the work that was done. It matters a great deal to those of us who live in rural B.C. This is an organization that has a mandate for small business and economic development.
Last year alone Community Futures in B.C. approved 635 loans valued at $38.7 million, leveraging $31.4 million in the rural B.C. economy. That created jobs, which is obviously the mandate of this minister, for 2,421 individuals.
Can the minister update me on the status of the export navigator program? It was a pilot program that we started. It’s been very, very successful. I’m wondering if the minister can update us on that program and what he expects will occur with it in the coming months and years.
Hon. B. Ralston: I do thank the member for reminding me of that excellent lunch with Community Futures here in Victoria, during one of our lunches in the community. I’ve met with Community Futures on several occasions, and I have a high regard for their capacity and certainly their network throughout the province. As the member mentions, it’s throughout rural British Columbia as well as urban British Columbia.
The export navigator program, which the member has referenced, is being delivered. What was initially a pilot project has been extended for a further year, to 2019. In these communities, it’s being delivered in cooperation with Community Futures Development Corp. So Community Futures of Alberni-Clayoquot, of central Kootenay, of Fraser–Fort George, of north Okanagan and of the Pacific Northwest. In Comox, it’s being delivered in conjunction with the Comox Valley Economic Development Society.
The one-year extension is now set to conclude on March 31, 2019, and there was an allocation of $607,800 to fund that. Over this following time, consideration will be given to establishing a permanent program.
The member will know from her own experience that developing export capacity for small and medium-sized business is crucial. In small markets, sometimes the only route to expansion and business success is by developing a capacity to export. People often say that, but it’s not an intuitive process, so it’s important to have assistance and people who are knowledgable about the process to guide businesses who are incented to do that, guide them through that and help them achieve business success.
Certainly, in a globalized world, the opportunity to export is an important one, and I’m sure that the member from Kelowna will also want to be talking about the importance of the export economy and what the government of British Columbia might do to assist companies in developing those networks, that capacity and that business success.
S. Bond: I appreciate the minister’s comments about potentially moving this to a permanent program. I think that would be incredibly important. The organization has done a fantastic job. Between October 2016 and December 2017, Community Futures assisted 157 participants in the program and connected 45 participants with the appropriate next step to help them on a successful export pathway.
I think all of us recognize that if we want to grow the economy in a meaningful way in British Columbia, export has an absolutely critical role to play, and small businesses are very challenged as they try to sort though that process. This provides very specific expertise to those businesses.
I’m encouraged. At least we’ll see the program continue until March of 2019, and I would encourage the minister to contemplate permanency for that program.
My last question is related to the Small Business Roundtable, which, obviously, my colleague from Quesnel spent a great deal of time working on. I know that Community Futures is very concerned and very interested in having a seat on the Small Business Roundtable. Personally, I can see no reason why that wouldn’t be an appropriate match, considering that their prime function is to support small businesses, particularly in rural B.C.
I’d like to ask the minister if he has considered appointing a member of Community Futures to the Small Business Roundtable.
Hon. B. Ralston: I have met with the Community Futures organization. That topic was not raised. But I understand from discussing with staff that very recently, they made a submission at the staff level, and that is going to come forward. I wasn’t aware of it at this stage, but now I am. I’d be pleased to consider that.
Certainly, I’ve made some new appointments there. As the member may know, there was a separate subcommittee, if I can call it that, or a subgroup of the round table, which is the task force that will be out in the field soliciting input. I gave the names of the members yesterday. I think it’s a very strong group, a group of three. The website soliciting input is going live, I believe, tomorrow. So there’s an opportunity to solicit that.
It’s an organization that I’m interested in and receive valuable advice…. I’m looking forward to the results of the task force consultation. So I’d be pleased to consider the suggestion that’s been brought forward by the member.
S. Bond: I have a very high regard for this organization. I’m not sure what the new configuration looks like or the new group that the minister is talking about. But I know that when the focus of this organization is assisting small business, I would assume that a place where small business decisions or policy thinking is being done would be a very appropriate place for them to be.
With that, I’ll thank the minister and his staff for their time.
B. Stewart: Minister, I just want to talk a little bit about the changes in the organizational structure within Jobs, Trade and Technology versus the original ministry or the former Ministry of International Trade. Just wondering what the increments to be spent on trade promotion, facilitation…. We had previously separated the spending in the Ministry of International Trade as a stand-alone.
The stand-alone ministry’s budget in 2017-18 was set at $53.6 million. I’m wondering if you could provide how this money will be spent on the same functions as in the old Ministry of International Trade. Where in the estimates blue book can we find that information?
Hon. B. Ralston: Since the member has referred to the blue book, which is entitled Supplement to the Estimates for the Fiscal Year Ending March 31, 2019, on page 50 is the ministry operations. If I can just go through that on page 50, the divisions which were in the previous ministry were international business development, international strategy and competitiveness, forest innovation investment. Those three were there.
As the member will look across from comparing 2017-18 to 2019 operating expenses, there’s been an increase from $21.296 million in the previous year to $21.857 million. The other areas I’ll leave the member to consider. There was one area that was not transferred over and went to the Ministry of Tourism, which was the multicultural operations. That number appears on page 62 in the ministry operations budget of the Ministry of Tourism, Arts and Culture. You can see the line item there, where it’s, again, increased slightly over the previous year.
I think the message here is that…. I’m not sure what the import of the member’s question is, other than to perhaps understand the restructuring, but those functions have largely continued, other than multiculturalism, within this ministry in a division. All of those functions are there. They’re funded at the same level, with slight increases — modest, prudent increases, not rash, irresponsible increases. The ministry is proceeding.
The design of the ministry. It was designed to integrate a number of non-resource, economic-side ministry functions. While organizational change can be challenging sometimes, the new mix and the synergies that are available from combining immigration, small business and trade are, I think, immense. My sense is that the transition has been a successful one.
B. Stewart: Just to be clear, the reason for that is…. What I wanted to clarify was that the amount to be spent on trade promotion and facilitation was being maintained.
Hon. B. Ralston: In fact, there’s been an increase in the budget for trade promotion. Two new offices, one in Seattle and one in San Francisco, have been opened and funded. There’s an additional half-million dollars transferred to FII. The member will be familiar from his previous employment, with the role of FII in promoting B.C. forest products — more typically in Asia, but in various Asian countries. Whether it’s India, China, Korea or other destinations in Asia, that’s the reason.
I would say, in summary, there’s been an increase in the budget for trade promotion in this year.
B. Stewart: I can assume with that increase that you’re talking about…. Let’s not talk about FII, obviously, as a separate organization that’s operated, but let’s talk about the trade side of things.
What’s the level of staffing that is expected within the ministry based on the previous levels of staff, and what are those two new offices — the Seattle and San Francisco office operations — bringing the total count to?
Hon. B. Ralston: As the member will know from his own personal experience, the services in the U.S. market are delivered through contracts. There are two new contracts, one for services in Seattle and one for services in San Francisco. Those are in addition to the budget. And there are…. The contractor employs people who are on the ground.
I think that’s what the member is interested in — are there more people in the field rather than fewer people in the field? In Seattle and San Francisco, there are more people in the field. There are two additional staff in the Vancouver office, the headquarters, to support those two contracts in Seattle and San Francisco.
As the member can well imagine, both Seattle and San Francisco are very busy locations, with a lot of business opportunities for British Columbia — whether it’s investment attraction, particularly from Silicon Valley, or assisting Canadian and British Columbia companies in finding new markets and new business opportunities, either in the Seattle tech hub or in California.
B. Stewart: Thank you to the minister. I guess it’s safe to say that the investment is increasing and more staff are being added.
Let’s talk more specifically about the minister’s goals in terms of the trade division in his ministry and the strategy that he’s using to pursue increases in trade. He touched on that briefly with just his comments there. Could we get a more fulsome answer in terms of strategies? Obviously, you’re in a lot of different markets, so maybe we could go through and just have a little bit of a summation by the different areas of focus and markets.
Hon. B. Ralston: The member will know from his own experience that there are different strategies for different destinations, different countries. But let me begin, particularly, with the United States. As I’ve mentioned, the ministry has opened an office in Seattle, and it opened one in San Francisco. I’ve travelled with staff both to Seattle and to San Francisco.
I think it’s important to stress that although there are — let me think of the best way to put this diplomatically — some stresses in our trading relationship with the United States, particularly on a day when the United States government is imposing tariffs on Canadian steel and aluminum on the basis of national security…. But notwithstanding those tensions, it’s still important to pursue our business opportunities north-south.
Certainly, I think it’s recognized in the Cascadia relationship, which a number of companies on both sides of the border are strongly committed to, that there are real business opportunities north-south for British Columbia firms in Washington, in Oregon and in California. So those are being pursued.
Certainly, at the tech conference, I met with a number of prospective American investors in Vancouver and British Columbia. Whether it’s the tech hub in the member’s city of Kelowna, whether it’s the emerging tech hub in Kamloops, whether it’s the biofuel and bioeconomy hub emerging in Prince George or here in Victoria, because there are 1,000 firms…. There are opportunities to grow Canadian firms and British Columbia firms, particularly orienting them towards the markets in the United States and also attracting investment that originates in the United States.
That would be the first piece. I think it’s important to continue that. It’s important to talk about that. It’s important to stress that, lest people think that because of some of the disputes, we are not pursuing opportunities in the United States. We are. And there continue to be many opportunities in the United States. They are still and continue to be our No. 1 customer and, for a long time in the future, will still be our No. 1 customer.
In Asia, as the member will know, our No. 2, No. 3 and No. 4 customers are China, Japan and Korea. To that end, the Premier, the Minister of State for Trade, the Minister of Tourism and I travelled there to four cities, all of which have a trade and investment representative office in them — Guangzhou, Beijing, Seoul and Tokyo — and pursued a number of opportunities.
The strategy is different from that of the previous government. We are not focusing all or the vast majority of our effort on the single natural resource industries, although there were meetings in that sector — important meetings that the Premier held with proponents there.
There are opportunities in technology. In Korea, I met with Netmarble. It’s a very rapidly growing, global gaming company, which has a studio in Vancouver on Alberni Street — 100 people. In Japan, I met with Sega, which owns a studio of a couple of hundred people, called Relic, which is in Yaletown and soon to move to Mount Pleasant.
We pursued opportunities with people in Japan — Chiyoda — who have a proposed plan to develop hydrogen opportunities here in British Columbia.
In Guangzhou, we pursued and met with the company that’s received technology from Ballard here in British Columbia. They’re using that to power a number of buses in Guangzhou, and that is continuing.
I’m giving a number of examples because I want to give the member a little bit of a sense of the multiple-sector strategy that we are endeavouring to pursue. I think, whether it’s the traditional exports of natural resources or wood…. We did have some meetings, and I made a presentation on structured wood products. The Chinese are very interested in that — the ministry of rural and urban affairs as well in conjunction with FII.
The strategy is to expand British Columbia’s trade opportunities. As a relatively small jurisdiction in a very competitive world, it requires effort to get a toehold in those markets. I’m convinced that there is progress being made. It’s not always easy, and there are obvious barriers to that, but I think we’re making some progress.
The trade mission itself. I’m sure that maybe I’m anticipating questions from the member, but the trade mission, I think, has given some early fruit.
There was a story just on Tuesday in Business in Vancouver about one of the aspects of the ten-day trip. In South Korea, the Premier signed an agreement, a three-year trade plan with a focus on digital media. DigiBC, our local industry association, entered into a collaborative agreement with Gyeonggi Content Agency. It’s a government body that organized the delegation. If I could just quote from the story: “DigiBC Executive Director Brenda Bailey said she was pleasantly surprised at how quickly the visit came after the initial trade outreach in January.”
There’s a delegation from Gyeonggi with the aim of finding partners and co-developing VR-AR platforms or distributing Korean-made products and services in the North American market. She says: “Often, when provincial trade delegations to a foreign market happen, there would be memorandums of understanding. It would take some time for there to be action. So for us to have in May, after signing in January, already an esteemed delegation here in British Columbia is very exciting, and it speaks well to how each country sees the opportunities in AR-VR and is moving very quickly on this subject.”
There are further meetings and further exchange and further business opportunities that were discussed by that delegation, who were here today and yesterday. Given the fact that the House is here, I was not able to meet with them.
I think that’s, again, a tangible example of the multiple-sector strategy that we’re pursuing and some early signs of success.
B. Stewart: Well, it’s a big topic, and I know that there are many different facets to it. Maybe what I would like to just pursue a little bit is that there was a discussion and pursuit being talked about in tier 2 cities in China, where the main centres — Shanghai, Guangzhou, Beijing — were being covered off by the trade and investment offices.
The opportunities in the tier 2 cities…. Many of them are ten million plus, and I’m sure that with your recent visit there you probably have come away with how big and the opportunities. Can you just enlighten as to the ministry’s strategy in terms of dealing with tier 2 cities in China?
Hon. B. Ralston: The member raises an interesting question. There is a bit of history to that, which I think he’s aware of. A large study of tier 2 cities was conducted some time ago. I’m aware of the idea that the member’s advancing. I think Dominic Barton, who was with McKinsey and now retired, a Canadian, spoke on that in public fora several times. The idea is that rather than attach to a province or the country writ large, it is better to focus one’s efforts on a specific city and gain entry into markets that way.
The strategy, I think, was considered in this report. The decision was to have those tier 2 cities serviced by the offices that exist already, rather than adding an additional cost of opening offices in other cities. There are trade contacts with Hebei, Jiangsu, Jiangxi, Shandong and Sichuan. Certainly, there are opportunities there. They are pursued through the staff that are dispatched from the respective offices that already exist.
B. Stewart: With that being pursued and the decision having been made to pursue it in the direction that he just described, I think that I’d like to just find out if that means that there are additional resources in the contracts for the trade and investment offices to pursue having the additional staff or travel costs covered.
Hon. B. Ralston: Just so that it’s clear — I did ask staff for clarification — the decision to pursue the tier 2 cities in this way was not made by me, because I don’t recall making that decision. It was made by the previous minister and the previous government.
But there is an interest in tier 2 cities. What I can add, by way of additional comment, is that the government of Canada, through their trade commissioner network, has also expanded into some of these cities. Of course, as the member will be aware, the B.C. offices work very closely with the trade commission network, and there are those synergies that take place in terms of exchange of information, lead generation and ongoing communication of opportunities between British Columbia’s trade and investment representative offices and the Canadian trade commissioners.
B. Stewart: I didn’t really get the answer I was looking for. Does that mean that there is no increase in resources, or an increase or a decrease? It sounds to me like there is an increase in the ministry, but I just want to clarify: is there an increase in resources to pursue the tier 2 city strategy?
Hon. B. Ralston: To be clear, then, on how this allocation process works, the only financial increase in the budget was to add the two offices on the U.S. west coast. But within the relationship between the ministry and the contractors — in this case, in China — there was the opportunity, through dialogue and direction, to direct that the representatives pursue opportunities which are considered to be more fruitful or more valuable within the context of the existing contracts.
It’s a question of reallocation or redirection. It’s not a question of adding additional funds to fund that change in direction. I’m sure the member is familiar with that. The process has not changed from when he was involved.
B. Stewart: We may come back to that, but I think maybe we should just talk about the ministry’s service plan. On page 10, goal 2 in the Jobs, Trade and Technology Ministry’s service plan is that: “Investment potential in each of B.C.’s regions and communities is ready to be realized; and leverage foreign direct investment opportunities for maximum growth.”
Under objective 2.1, under this goal, is to “enhance investment attraction, economic opportunities within each of B.C.’s key sectors.” Will the minister please provide what these key sectors are and how they were identified?
Hon. B. Ralston: The areas are, broadly speaking, technology, as the member will know. That includes a number of areas, whether it’s ICT, clean tech, life sciences, AR/VR. I just gave an example of the Korean Gyeonggi delegation that came here to pursue that. So that’s one sector.
Infrastructure and transportation. Although it is not a target, there are a number of foreign department stores, consumer retail outlets that have established here, whether it’s a Muji or Uniqlo from Japan. There’s another — Miniso, I think it is, from China — that was established here. But those are not a target and not actively pursued. They’re coming here based on their own initiative and their assessment of the market opportunities here.
Other manufacturing, natural gas, energy, financial and professional services, education, forestry, agrifood, mining and tourism — those would be, I think, the main sectors.
B. Stewart: Okay. Regarding these performance measures. We’re talking about enhancing investment and attraction opportunities within B.C.’s key sectors, which I do know those sectors that you referred to.
I guess one of the things…. In a table that you have on page 11, here, it talks about two performance metrics and the amount of foreign direct investment supported by the ministry and the number of offices established in B.C. now, by foreign organizations assisted by the ministry.
I just want to make certain that the line in here is, essentially, pretty well flatlined in both objectives. The 2018-19 targets are the same as in ’20-21, and the same as the number of offices. I guess what I’m saying is that that incremental amount is, obviously, compounded.
I’m just wondering why it would not be increasing with the efforts of all these trade offices — the new offices in the United States and the additional one in Singapore. What I’m really trying to figure out is: with increases in population and inflation, why are these numbers stagnant?
Hon. B. Ralston: I have received some report on what’s been taking place. I would hardly adopt the member’s word. I would call it dynamic rather than stagnant. I think that’s far too negative a characterization of the very hard work and the success of the trade network.
The numbers are not final, so I would deliver them with that caveat. In terms of the target of 25 offices, the preliminary figures suggest that it’s going to be 27 for the previous fiscal year. In terms of the amount of foreign direct investment, the target was $1.2 billion. We achieved — again, a preliminary figure, yet to be finalized — $1.4 billion. So those targets have been exceeded, and there will be a calibration based on that going forward.
I understand the member’s comment about the setting of targets, but these are targets where one is attracting offices. It’s not a cumulative number. It’s an annual number.
B. Stewart: That’s great that those numbers, the 27 and the $1.4 billion in FDI…. I understand the numbers are cumulative. However, I still believe that with population and inflation — all the things that are supposed to be making British Columbia better — we should be at least aspiring to some sort of increase rather than it being kind of just at this level. I don’t quite understand why that number…. I mean, even your own budget, as a government, has an increase for economic forecast growth of over 2 percent. So I guess I’m trying to understand why it would be flatlined.
Hon. B. Ralston: A slight correction, just looking at page 11. There is a slight increase in the target for foreign direct investment in this year — an increase of $50 million. That reflects, I’m told, the addition of the two U.S. offices.
Just to deal with the member’s point, markets are dynamic. They do go up and down in certain sectors, depending on global prices and demand. It’s not necessarily an upward ascent automatically in every sector across the board.
Acknowledging that, there is a target-setting process internally as part of the budget-making process. Based on the success of the previous year, there’ll be a consideration of whether these targets continue to be appropriate or whether it’s necessary to revise them.
S. Thomson: My thanks, as well, to the ministers and their staff for being here this afternoon.
I’m going to focus a few questions around trade agreements, trade relationships, currently. Obviously, those have been in the news and quite significant — relationships, disputes, stresses and strains in the trading relationships.
The first one I wanted to ask about was the CPTPP. Canada has signed the agreement. They’re working towards ratification. We have groups and organizations making a significant effort to have early ratification so that Canada, provinces, can benefit from the agreement. Groups like the Forest Products Association of Canada and, by extension, COFI, here; groups like the Canadian Cattlemen’s Association and the B.C. Cattlemen’s Association; the Canadian Chamber of Commerce; and the B.C. Chamber of Commerce are all pushing for ratification of the agreement.
I guess the question I would like to ask is: what is this government’s, this minister’s, current position on it? The minister will recall the motion in the House where this government, when they were in opposition, opposed the TPP agreement and a motion that talked about all of the benefits of that agreement. Now that we have an agreement and a process towards ratification — one that is a little bit different from the original one, clearly — what advice is the minister providing to the federal government? What comments are they, as well, making a case for, for ratification, as quickly as possible, for the agreement? What engagement has the minister had with his federal counterparts on this particular agreement?
Hon. B. Ralston: The member makes reference to the original TPP and the debate that took place on that. He will know that the CPTPP differs in very significant respects. Many of the areas that were areas of concern are not part of the new agreement, given the exit of the United States and the renegotiation.
For example, in the current agreement, there are key differences in the following areas. There’s additional protection for culture. There’s an agreement on auto standards between Japan and Canada. The provisions in the TPP are suspended that would have broadened the application of investor-state dispute settlement to investment agreements between states and investors, and — I think particularly key — suspending provisions in the original TPP in areas that went beyond current Canadian IP law and policy and on issues raised by Canadian concerned stakeholders: copyright-term and patent-term adjustment. There’s also a phase-in period for Vietnam on labour rather than the full exemptions that Vietnam had been seeking.
The changes are significant. Many of the concerns that I expressed in that debate, which the member references, particularly around IP…. There was a very furious debate in Canada about the impact, potentially, of the IP provisions in the original TPP. Those are suspended.
I’ve heard from COFI, for example, that they’re anxious that it be ratified. I understand that the federal government — they drive the process of ratification — intends to ratify it in late fall of this year or early next year, and it will come into effect.
I think it does present significant opportunities for Canada and for Canadian companies among the signatory countries. It’s even more important now, given our ongoing and accelerating, it would seem, trade disputes with the United States.
S. Thomson: I thank the minister. I guess the part of the question that maybe wasn’t answered in the response…. I understand the changes and the differences. I hear in the answer, I presume — and I just want to get this confirmed — that the now government supports the new agreement.
The second part of the question is: has the minister taken any direct steps, in terms of engagement with his federal counterparts, supporting organizations that are seeking ratification as quickly as possible? Has he had direct engagement with the minister at the federal level, either by correspondence or by meetings on this particular issue, supporting the general call from many organizations that see the benefits for early ratification?
We see countries now ratifying the agreement. If we don’t stay in step with how the other countries are ratifying, then we potentially create a different or an unlevel playing field for a period of time until we can ratify.
Has the minister had direct correspondence? Is there correspondence that he could table or provide to us in terms of making that representation, or can he specifically advise on direct meetings or engagement he’s had with his federal counterparts on this particular file and this particular agreement?
[D. Routley in the chair.]
Hon. B. Ralston: I want to assure the member that I’m aware of the concerns of the organizations that he has referenced. There is a ratification process underway at the federal level. Officials are in touch with them. Detailed legislation has to be prepared to be presented to the House. That process is underway, and there is constant communication on that issue.
I think, frankly, though, officials in that department are giving their main effort to NAFTA and all the ramifications of NAFTA and the other trade disputes, whether it’s the new tariffs imposed today, to take effect tomorrow on Canadian aluminum and steel…. That may be understandable, given the huge impact that NAFTA negotiations will have, or are having, on the Canadian economy.
S. Thomson: To the minister, thank you. I’m going to move on to discuss some of the other agreements here. It was a good segue into the next question I wanted to ask.
It was around the NAFTA negotiations and the current process that’s underway there. Obviously, as the minister pointed out, potentially very, very significant impacts to the Canadian economy. We are seeing one of the impacts of that, whether it’s directly related or as a result of it, around the tariffs being placed on aluminum and steel starting this evening.
Just in terms of the NAFTA process, could the minister describe what process is in place in British Columbia for analysis, for assessing all of the potential implications? How is the ministry structured in terms of participating in those discussions? Has a specific analysis been done around the issues, assessing either positive or negative impacts of the main issues that are at play here? What level of engagement has the minister had with the business community in those sectors that are impacted? And is there a study or an analysis that could be provided and shared around those impacts?
Hon. B. Ralston: I first want to talk about steel and aluminum, since that’s very topical. The American government announced today that they’re imposing tariffs on Canadian steel and aluminum. The tariff on the Canadian steel imports into the United States will be 25 percent; on Canadian aluminum, 10 percent.
The basis on which the Americans purport to do this is under a provision of their trade legislation that describes Canada as a threat to the national security of the United States, which is obviously preposterous and absurd. But that is the basis on which it’s proceeding.
Because of the integrated nature of supply chains, these tariffs will do damage to other industries in the United States that rely on Canadian steel exports, in particular. So it does seem counterproductive.
The Prime Minister had a news conference late this morning where it was announced that there will be matching tariffs imposed by Canada, dollar for dollar. There will be two different categories. One will be a 25 percent category, and one will be a 10 percent category.
Clearly, this is regrettable. I think for those who recall the history of the Great Depression and the Smoot-Hawley Act and the way in which escalating trade wars can begin to close off markets, reduce production and lead to a decline in jobs and prosperity across the piece for many a nation, this is indeed a regrettable step.
Here in British Columbia, the implications are quite clear and important to recognize. I spoke this morning with Gareth Manderson of Rio Tinto Alcan. They export about $550 million worth of aluminum into the United States each year. They are in the early stages of assessing the impact on their customers, given the 10 percent tariff. He has spoken with the union and wasn’t able to….
Phil Germuth is the mayor of Kitimat. I wasn’t able to connect with him today, but certainly, when this tariff was first announced, I had spoken with him and expressed the position of the government of British Columbia and certainly of the Premier that we stand strong and solidly with an important industry and with Kitimat, as a key producer of aluminum for export.
We will do everything we can, in conjunction with the federal government, to fight this unfair tariff. It’s regrettable, but unfortunately, that’s where we’re at.
I want to then talk a little bit more about the NAFTA process, generally. Let me say that I want to acknowledge and praise Minister Freeland for her ongoing consultation with the provinces. There has been a regular series of teleconferences in which provinces and territories have been kept up to date as the strategy emerges.
British Columbia is represented by a full-time official, Steve Anderson, who has been present, not in the room at the negotiations but on site, and receiving briefings at all the formal rounds of the negotiations.
I’ve also discussed these issues with Minister Champagne, who’s the federal Minister of Trade. And more recently in a visit to Ottawa, I met directly with Canada’s chief negotiator, Steve Verheul, a very experienced Canadian negotiator who leads the negotiating team on behalf of Canada.
We are concerned. Certainly, there’s a process through the department for consulting with stakeholders. There are, obviously, variable impacts of the various proposals that have been put forward at the table by the Americans upon British Columbia industries — including scenarios of, for example, if NAFTA were to simply be ended and there were no agreement and we would resort to the previous law under the WTO.
Those ongoing assessments are done, but as the member, I’m sure, will surely acknowledge, the landscape there is very tumultuous. It’s certainly a moving target in terms of assessing that. Obviously, that uncertainty does not serve business, particularly, and the country, generally. Everyone, I think, is concerned about that. But that is, unfortunately, the political reality that we’re dealing with at this point in terms of the leadership of the trade negotiations in the American executive branch, in the United States.
Ultimately, this will be settled. But it’s something that, on behalf of the government, the Premier and myself and others are paying close attention to because of its impacts on British Columbia.
Another side bar, I suppose, would be the tariff, the countervailing duties imposed upon newsprint, with a direct impact on Catalyst. We had a meeting to which all parties were invited, and the CEO of Catalyst was here in Victoria. Members representing the three production facilities in Port Alberni, Powell River and Crofton — MLAs representing those areas — were present. Representatives of the union were there. I think that on that issue, there was very much a united front.
Again, it’s a very difficult issue. There are a lot of jobs and export revenue that enable Catalyst to continue in British Columbia. So that’s another issue that we are following closely. Catalyst has recently announced — I see from advice I’ve got from the newspaper — that they’ve sold their two American plants, one in Maine and one in Wisconsin. I think they’re going to be able to use that revenue to assist them in the transition in British Columbia.
These are tough times in trade negotiations with the United States. Everyone acknowledges that. We are doing our very best to stay on top of it and to keep the interests of British Columbia workers, British Columbia families, British Columbia communities, and British Columbia economy at the very heart of our consideration.
S. Thomson: Obviously, as you point out, it’s a very critical issue, one that…. When you say it’s preposterous and absurd, the basis on which they’ve done this, I think we would, certainly, on this side, agree with that. We’ve seen that in other processes too. Their whole basis for the softwood challenge — you could probably put it in some of the same category or the same wording. Actions that are not really founded on real or valid or legitimate issues in terms of taking those actions.
To the minister, could I ask…? You said you’ve reached out. Can you advise us of any specific measures that you are contemplating, maybe taking? I know it’s very early days in this…. But it wasn’t totally unanticipated. Have you contemplated any specific action in terms of working with the sector, with the industry?
As you point out, because of the integrated nature of the industry, there are broad impacts on this, and this really has the potential to impact jobs. It’s unfortunate that we’re having to be in a retaliatory process, but are there any specific measures that the government is contemplating?
Hon. B. Ralston: I’m assuming, by the member’s question, that he’s referring to the steel and aluminum dispute. What I’m advised is that there’s a joint federal-provincial working group which Steve Anderson, who I’ve referred to earlier, is part of. In my conversation with Mr. Anderson this morning, he told me that it’s very early in terms of their assessment of what action they might want to recommend to government. Certainly, they are talking to their American customers and deciding how they will proceed.
In terms of specific action by government, I think it’s premature to take action from the provincial perspective. What the federal government has said is that they are…. They announced today that they are imposing tariffs on American imports into Canada that will, dollar for dollar, reflect the tariffs on Canadian goods entering the United States.
There’s a long list, in two categories, of those goods. There are a number of steel products in the first category and a number of other goods which are consumer goods and a number of other…. I don’t have the list right at hand, but I can provide it if the member wishes it. So those are the actions that are taken by the federal government, and that is federal jurisdiction.
I think, though, that it’s important at this stage to stress that we broadly support the federal government initiatives. We have worked closely with them in this dispute. I have confidence in Minister Freeland, who’s been on the file from the beginning — a very, very challenging file. They have kept us informed, and we are, I think….
At this point, I think it’s more important than ever that there be unity across all Canadian provinces and territories with the position of the federal government in order that there not be a weakening of resolve by not having everyone on board. I’m convinced that that’s the case — that everyone is on board. I think that’s the way it should be as we go forward into this very difficult dispute.
S. Thomson: Maybe I’ll just ask a question around the softwood dispute, or the softwood issue. I know the minister is very familiar with the importance of this and the impact on the industry and all of the work that is underway. Could the minister provide his perspective or an update on the provincial involvement in the current litigation reviews that are underway?
We’ve got a NAFTA appeal on injury. We’ve got a NAFTA appeal on the countervailing duties. We’ve got a NAFTA appeal on dumping. We’ve got a WTO inquiry on injury.
We’ve got WTO on the countervailing duties as well. We’ve got a broader WTO challenge by Canada against the systemic trade practices of the U.S. and whether they violate international trade law. So there’s lots going on.
Could the minister comment on the provincial government–level involvement currently — who’s leading the overall process, and what contingencies does the province have in place to manage the ongoing litigation costs of all of these disputes?
Hon. B. Ralston: The jurisdictional responsibility for these negotiations is shared between myself and my colleague the Minister of Forests, Lands, Natural Resource Operations and Rural Development. There is a senior-level committee represented by an assistant deputy minister, and those are the people that have guided the process so far.
Right now — given, as the member has acknowledged, that the dispute is at the litigation stage — there’s a variety of litigation. And given the track record that British Columbia has had in these tribunals and Canada has had in these tribunals, we’re fully confident that we will prevail legally, although even a legal victory involves, as the member has noted, a substantial cost, and sometimes, as victory becomes imminent, then there’s a subsequent negotiation.
I think that’s what took place in the softwood lumber deal that was reached in, I think, 2006. For the industry right now, obviously, all the entreaties….
The Premier, right after being sworn in as Premier, headed both to Ottawa and to Washington and met with Mr. Lighthizer and Mr. Ross with a mandate, after discussion with the Prime Minister, to endeavour to — thinking and hoping that there was a window — settle the softwood dispute prior to negotiations on NAFTA commencing. He undertook that work. That wasn’t successful, obviously. It’s in the litigation stage. That will go forward. These processes are very protracted, I think, as everyone recognizes, and could literally take years.
I think if there is any good news, it is that the price of lumber in the United States is very, very high because of the demand there. Producers here have not been financially affected quite as badly as one might have expected, but one can’t continue to rely on the expectation of a high market price. As everyone knows, markets go up, but they also go down.
Really, that’s where it’s at. One is, I suppose, ultimately optimistic about a legal victory and then some, probably, likely, negotiation that might ensue after that. The case is very strong. We continue to defend British Columbia, British Columbia’s industry, which is 60,000 direct jobs, jobs in most of the communities across British Columbia. A very significant, foundational industry for British Columbia. We continue to defend our forest industry, our forest communities, our forest workers. We’re optimistic about an eventual successful resolution, although it’s taking, certainly, longer than we would have hoped.
S. Thomson: This is a very complex and broad issue. I’ve just got a couple more questions, I think, and then we’re going to…. My colleague from Kelowna West will have a question, and then we’ll transition back to our other colleagues.
I just want to preface my comment, before I get into the other questions, with, I guess, a bit of an apology to the FII staff, who I know have taken some time out of their lives to be here. We had a number of questions where we wanted to specifically delve into some of the market conditions and what’s happening in those key markets, particularly in the forest sector. So my request would be whether we would be able to have an opportunity, at some time, for my colleague and I to sit down directly with them and review those questions and get a good understanding of some of the…. What are the constraints and some of the challenges they’re dealing with in those markets, and where do they see the opportunities?
I just wanted to ask the minister…. Given what’s happening in the U.S. around the current disputes and challenges — which, as the minister pointed out, puts more importance on developing other markets and making sure we have that diversified approach — can the minister advise what plans are in the works or being proposed in terms of outgoing trade mission opportunities in the year ahead by the government?
Hon. B. Ralston: The member mentioned the FII staff here. I neglected to introduce them — Kevin Regan and Doug Greig.
Certainly, I am agreeable to set up a meeting. FII officials, including the CEO, Michael Loseth, would be happy to arrange that. It’s an important agency. I know the member is familiar with their work, but there are new developments in the work that they do. We can arrange that. I appreciate, given the time, that you’re not able to ask the questions of FII that you might otherwise have done.
If I can just talk about ongoing work. In terms of the work, outward-bound travel missions continue. Next week, I’m in Boston for the BIO conference. There are 40 B.C. companies that will be there. I think I have ten meetings on Monday and six on Tuesday, and then I fly out on Tuesday evening. It will be an action-packed agenda there, and I’m very much looking forward to it.
I think the members will know that the life sciences sector in British Columbia is a major one, with great recent success, whether it’s Avigilon being acquired by Motorola or whether it’s Zymeworks striking a licensing deal of $1.5 billion with Johnson and Johnson — just to give some examples of the strength of the sector. At the LifeSciences Awards, the health of the sector is very evident.
In that sector, just recently — as I think I said in my opening — together, the federal minister, Navdeep Bains, and I jointly announced an investment by British Columbia and Canada into Stemcell British Columbia to create 625 new jobs in an advanced manufacturing facility to be constructed in Burnaby, in a campus that will lead to, prospectively by 2030, several thousand more jobs.
The life sciences sector is, again, part of something that we’re pursuing. Over that trip, we’ll meet with significant investors and companies in the life sciences sector. The plan is, at this point, to continue our efforts in the American market on the west coast, whether in Seattle or in San Francisco. Certainly, the consul general in Seattle, Brandon Lee, has been very helpful in terms of assisting British Columbia and, I think, is very much in tune with the tech sector there and is very helpful.
[R. Leonard in the chair.]
The consul general in San Francisco, Rana Sarkar, I met with when I was there the previous time. Again, not only do we have a trade office, but the Canadian consulate there, obviously, advances Canadian interests and, particularly, British Columbia interests very strongly. We will continue that.
In terms of others, the member may be referring to other overseas missions. I’m not able to make any announcements on that topic at this time.
B. Stewart: I just want to talk a little bit more about issues around our goal to offset what the member for Kelowna-Mission has just referred to in terms of threats from jurisdictions — obviously, the U.S. is the jurisdiction that’s the most challenged — and, I guess, the fact that there aren’t extra resources in the budget at the trade office level for reaching out to some of those. It’s a reprioritization, I think is what you said.
There are a couple of agencies that your ministry was responsible for and that have been closed or shut down abruptly. I guess the point about this is HQ Vancouver as well as Advantage B.C.…These are additional resources that were on the ground, attracting foreign direct investment. Advantage B.C. had a specific mandate. It has been around since, I believe, the early ’80s, set up by the Socreds and then maintained through the ’90s by the NDP government of the day. Of course, we chose to keep it open.
I think our position…. I’m sure you know the statistics. British Columbia was moving into one of the most important financial hubs within North America. Of course, our goal was to change that balance.
I’m just kind of wondering two things. One is what the strategy was around either shutting those down or redeploying the resources elsewhere, and what your intention is now to do with the resources that were originally allocated. I know Advantage B.C. was somewhat self-funded or fully self-funded, but I ask the question about why we would shut that down.
Hon. B. Ralston: I thank the member for the question. Let me deal first with HQ Vancouver. That was a three-year pilot project jointly funded by Western Diversification, the Business Council of British Columbia and the ministry. Upon an assessment, it was decided by the participants not to continue it. Those functions of investment attraction are performed by the ministry. That’s the status of HQ Vancouver.
In terms of Advantage B.C., Advantage B.C. is self-funded through memberships. It administered a provincial statute. I believe it was called the International Financial Activity Act. The assessment by Finance was that it was no longer meeting the objectives that were promised or expected in the act, so that ability under that act was withdrawn. But the society still continues due to its self-funding. It’s not a government agency per se.
B. Stewart: Thank you for that information. I’m not quite certain…. I mean, there were tax credits that Advantage B.C. provided as an incentive for companies to come here and invest. Is that the reason that you felt that those tax credits were not providing worthwhile attraction and investment in British Columbia?
Hon. B. Ralston: In the fall budget update in 2017, the statute that the member refers to was the subject of an assessment by the Ministry of Finance. They made the decision that that was no longer meeting the objectives that were set out for it, and that change was made.
B. Stewart: I guess a last question about a position that I know a little bit about: the position of the representative that was in Asia. Is the minister planning on replacing that position?
Hon. B. Ralston: No, we are not.
J. Johal: I wanted to turn our attention to LNG, just for a little while. The Premier’s LNG Working Group met last session, I believe. Have they met again this session?
Hon. B. Ralston: I appreciate the member’s question. Upon assuming the role of minister, I directed that this group continue. The group is active. It has met recently — in recent months, five or six times. There’s a meeting scheduled for June 11. The key personnel there are Jim Sinclair, David Keane and Chief Clifford White.
Obviously, as interest in LNG is somewhat revived, according to recent news reports and some of the initiatives that are taken by the government, there will be further meetings.
J. Johal: That’s great news to hear, particularly hearing about some of the individuals involved. The minister alluded to some of the good news that we’ve heard in the last little while in regards to LNG. We’ve been talking about a potential final investment decision later this year.
I guess the question I want to ask, in regards to the LNG working group: what can we expect from the working group in the near future, in the next six months to a year?
Hon. B. Ralston: The focus of this group, as I think the member may be aware from his previous role in the industry, is that if and when a final investment decision is made for any of the projects that are in play at the moment, there be a workforce available to begin that work.
There’s work done with Advanced Education, with the ITA — the Industrial Training Authority — and with the relevant federal agency. There are subcommittees that deal with training and also have an eye on labour force data and trends in labour force data. Obviously, that will be determined by the pace of activity and what may or may not happen in terms of announcements, but the goal is to be able to have a workforce available if and when a project is going to proceed.
J. Johal: It’s great to hear that the LNG Working Group is still running. Certainly, the needs, especially the labour needs, will be significant when, hopefully, we do have an FID. It will be great for the province of British Columbia.
I just want to change course a little bit and talk a little bit about the service plan goals. I believe that in the service plan, it says that the B.C. labour market outlook predicts that B.C. will have over 900,000 job openings by 2027, and over a quarter of those openings will need to be filled through immigration. I want to ask the minister: which sectors are those job openings going to occur in?
Hon. B. Ralston: The challenges of labour supply in the future are, I think, acknowledged and recognized, and I thank the member for raising this question.
There are potential shortages in a number of areas in the economy, whether it’s in skilled trades, where the government is making some efforts…. Certainly, in the $15.8 billion of infrastructure projects that are announced over the next few years, there will be opportunities to train new people up to the level where they can perform at the Red Seal level.
In technology, of course, there are many job openings, and companies are avidly pursuing the talent here in British Columbia. That was the basis on which the Minister of Advanced Education and Skills Training made her recent announcement of 3,900 places in public education institutions across the province — SFU Surrey, Thompson Rivers University, the College of New Caledonia, the University of Northern British Columbia, Vancouver Island University — which are partial steps towards and an acknowledgment, I think, of the import of the member’s question about shortages.
In other sectors. There’s an anticipated shortage of truck drivers. In the retail sector, there’s always a challenge of finding employees, and in food services as well. Some of that will be filled by immigration. The immigration targets are set federally. There isn’t provincial input into that, but that’s part of the forward planning process that takes place in terms of assessing labour market trends and the response of employers identifying their best guess as to where employees will be required in the future.
J. Johal: In the service plan, there are many goals, obviously. The first one is to maintain B.C.’s economy as prosperous, sustainable and shared. A key strategy to reach that goal is to establish, of course, the emerging economy task force. I guess the question is: when is the task force expected to begin? We know that the minister put $600,000 towards the project. Has anything else been added since then?
Hon. B. Ralston: In the ’18-19 fiscal year, there’s a budget of $800,000. The task force is not yet announced. I’m anxious to get it underway. I’m anticipating that it will be announced in June.
J. Johal: That’s good news. I’m curious. The minister was stating that he’s hoping to announce the task force in June. If he could at least, maybe, chat a little bit about what the process was in regards to recruiting for this task force and what kinds of credentials he was expecting in regards to the specific members that he’s recruiting — or that the ministry is recruiting.
Hon. B. Ralston: Thanks for the opportunity to talk about the task force. I’m pretty excited about the opportunities that the task force presents. It’s an opportunity to look at the future economy, beyond the political cycle, bearing in mind the fact that we’re relatively small in jurisdiction population in a very competitive world.
The goal would be to look at sources of future prosperity and social well-being into the future. It’s an initiative that was suggested to us by the Green Party. That’s the genesis of the idea. We’ve adopted that idea and are working forward.
In terms of the composition of the task force…. I don’t know if the member is familiar with the people I appointed to the board of Innovate B.C. There was a range of people — entrepreneurs, people with research skills in the universities, business people. A wide range of people with specialized skills who have the capacity to, I would hope, think expansively and bring some insights to the process and fashion a vision and a direction that the government might take some advice from.
I suppose the most closely analogous process would be the process the federal government engaged in when they engaged Dominic Barton, the Canadian who was the former head of McKinsey Global, and did a series of reports — probably a more expanded report than I have in mind but certainly in that vein of future-looking, examine areas of the economy, the challenges and make recommendations.
I think it’s recognized that notwithstanding the great talent within the government and within the political process, it’s sometimes important and helpful to look outside that to a broader civil society, to business, to the academy, to all kinds of groups that might want to help fashion, and have ideas about fashioning, a future British Columbia.
J. Johal: Listening to the minister…. Certainly, the ministry’s economic development strategy is informed by these task forces that we’ve been talking about. You have the emerging economy task force — we’ve talked about that a little bit — the Small Business Task Force and even the innovation commission, based on the last estimates.
With at least two of these task forces fully formed, what is the status of the development strategy overall in regards to his economic development strategy?
Hon. B. Ralston: I acknowledge the question that the member has posed in the sense of pointing to the different sources of potential advice that will come to the government. I’m optimistic about the Small Business Task Force, given the importance of small business, particularly in the B.C. economy and the role of start-ups, entrepreneurship, growth and scaling up of smaller companies into bigger ones. The role that those companies and businesses play in the future of the British Columbia economy will be important. I’m hoping to get some helpful advice from the task force.
The Innovate B.C. board is, I think, a very high-powered, skilled board. I’ve got a number of things that I’m going to ask them to do, although I think I would acknowledge that they’re independent, so they can choose to take their own course, and I’m sure they will. They’re a very independent, knowledgable group of people.
There is also the Mining Jobs Task Force, which is out in the field as well, headed up by the assistant deputy minister — Rob, I believe it is. The Fair Wages Commission has also reported back.
All that advice will be gathered and collated. From that will emerge a strategy to create a sustainable, strong, shared-prosperity economy in British Columbia. I think it’s important that we not simply listen to ourselves, but that we reach out through these kinds of processes and talk to British Columbians in all parts of British Columbia with diverse points of view in order that we fashion the best and most durable result for a good strategy to take us forward.
J. Johal: Last session, the minister stated that, along with the emerging economy task force, he would be developing a made-for-B.C. genuine progress indicator. This is part of the confidence and supply agreement with the Green Party. Could the minister elaborate a little bit more on the progress indicator in regards to who he’s consulting with in regards to this indicator, and what specific measures are being considered at this time as well?
Finally — I know it’s a three-part question — when is the final indicator being made public?
Hon. B. Ralston: The member raises an interesting question. I think I would respond this way. The traditional gross domestic product numbers that everyone is familiar with and are often referred to in public debate or as an assessment of the relative strength of economies, both provincially and nationally, only capture so much of the, I suppose, broader measures of economic and social progress.
A real progress indicator would measure, or attempt to measure, in addition to that, environmental indices, social progress. It’s a broader measure of social and economic well-being. There’s a substantial literature on it. It is something that we are working on and we hope to incorporate as part of a general economic strategy.
J. Johal: I want to just change course a little bit and focus a little bit on the smart communities initiative. I want to ask: what is the timeline for the development of this initiative, and does the minister have a terms of reference for the initiative?
Hon. B. Ralston: It’s a little bit of a longer answer here. There are a couple of smart city initiatives. One is an initiative by the federal government for bigger communities. An announcement will be made of finalists, I understand, at the Federation of Canadian Municipalities this weekend in Halifax. There are British Columbia applicants, and we’ll see how that goes. The ministry has also, as a pilot, initiated a request for proposals, or a contest, for much smaller communities to make application.
The essence of the smart city process is to use technology-enabled solutions. The member may recall that the member for North Vancouver–Lonsdale made a two-minute statement in the House just this week about the process. Her statement gave some scenarios of, for example, through the Internet, things and sensors measuring energy use throughout a community, measuring the number of bus trips. For the smaller communities, it might involve the use of diesel and monitoring that.
Essentially, it’s to use technology-enabled solutions to produce better results for communities. There’s a process for the bigger communities, and the ministry has started a small pilot project for much smaller communities that don’t have access to that other process.
G. Kyllo: I just want to switch and speak a little bit about the major investments office. I wonder if the minister could confirm what the number of FTEs is currently working in the major investments office. And if you could also provide a bit of an indication on the number of different projects that are currently active with the major investments office.
Hon. B. Ralston: The question is about the major investments office. As the member knows, that office works with proponents, communities, First Nations and government agencies to facilitate significant investment projects in British Columbia. It strives to make it easier for major investors to create jobs in British Columbia while ensuring all permitting and consultative requirements are met.
Some recent examples. I think I’ve given some of these before. Molson Coors is investing $300 million in a new brewery in Chilliwack. Construction is well underway towards the 2019 opening.
AltaGas is investing $500 million in a new bulk liquids export terminal on Ridley Island in the Port of Prince Rupert.
I mentioned stem cell technologies a number of times.
Pretium Resources has invested close to $900 million on the Brucejack mine. It began full production last July and reported production of 227,000 ounces of gold in the first nine months of production. The mine is expected to operate for 18 years.
The volume of inquiries and work continues at an increased level. In fact, I’m advised that it’s gone up somewhat from last year. There are six staff there. In addition to that, there are some vacancies as a result of turnover.
G. Kyllo: The minister mentioned six FTEs. My understanding, from our conversations last year during estimates, was that the intent was to keep the major investments office fully funded and to not see a reduction in the number of FTEs. My understanding, if my memory of it is correct, is that there were actually nine FTEs as of last fall. I just wonder if the minister could share with us why there’s been a reduction in staff from nine to six.
Hon. B. Ralston: Just to be clear, the funding remains the same. There are some staff vacancies in the office, but the budget is the same.
G. Kyllo: Would the minister be able to share with us how long those positions have been empty and what effort has been undertaken to replenish those positions?
The Chair: Just a reminder that we’ll be finishing up in 20 minutes.
Hon. B. Ralston: The member may be aware of this. What I understand is that this office works in conjunction with a number of other ministries and staff in other ministries. So depending on the project…. I’ve given an example of a number of successful projects and recent successes. There’s no shortage of work, and there’s no shortage of success. The workforce will expand or not, depending on what’s required. The service is provided, and the performance metrics are great, so I’m fully confident that this office is performing at the requisite level.
For the vacancies, new people will be attracted. It is a fairly specialized skill set that’s required to be successful in positions in this office.
G. Kyllo: What I’m hearing from the minister is that there’s been a 30 percent reduction in FTEs working in the ministry, but with the reduced 30 percent, they’re still able to keep up with the current demand.
Just going back to…. My first question was if the minister would be able to share with us the number of projects that are currently on the MIO active list.
Hon. B. Ralston: I hope I’m going to be able to give a nuanced explanation that captures the nature of the work in this office. What I understand is there’s roughly an average of 25 projects on a list at any given time, but that is a flexible list in the sense that a project may come in; the proponents may decide that, at this time, they don’t wish to proceed; they may become dormant; and then there may be interest revived at a later time.
There are sources of referral — whether it’s the trade network, whether it’s other ministries in government. To some extent, the volume of work is driven, obviously, by the proponents and their interest and their desire to proceed at whatever speed they think is the right one for their proposal.
The kinds of conclusions that I don’t think member should draw is…. The work is being done. There’s interest in projects, and it continues unabated. There’s no interruption in interest in using the services of this office. I pointed to some very recent successes of this office, which, particularly in the issue of stem cell, was a very intense process — given the involvement of the federal government and the fairly elaborate process in terms of vetting before it went through with an approval.
Based on my experience in dealing with the office, it’s performing at a very high level. I have confidence in it, and it’s being well serviced. The budget remains the same. We are glad to be able to use the resources that are provided by this office to advance our goals of creating a strong and prosperous British Columbia with jobs in every corner of the province.
G. Kyllo: The number I heard is that there are 25 active projects that are currently being worked on by the MIO. Is the minister able to share with us what the total dollar value of those projects is, both the construction dollar value of those projects that are currently under the review or assistance of MIO? As well, how many jobs are anticipated to be created, both during the construction of those projects and what the full-time-equivalent job numbers would be once those projects are actually completed, should they get to final investment decision?
Hon. B. Ralston: I just want to correct one statement the member made. I said an average of 25 projects, not 25 explicitly. I think that’s important, because that number does fluctuate.
What I am advised is that…. There’s a calculation here of the estimated value of prospective investment and the potential number of jobs. I’m going to give those numbers to the member. I just want to stress that the objective of the office is to attempt to land these projects and clear some of the internal hurdles that might exist to do that. That’s the purpose of the office: to coordinate, to work cross-ministry, to use knowledge of government and the connections to help proponents bring these projects to fruition.
Certainly, I would avidly and fervently wish for high-quality, good projects that are being advanced, that they do come to pass. But I just want to sound a little note of caution. This is an estimated value, and just in the nature of the process, not every project will come to pass. That does not diminish the effort that is being put in to attract them.
I’ve given a number of examples of successful projects, whether it’s Coors in Chilliwack, or AltaGas or Stemcell or Pretium or any of the others. With those caveats, the estimated value of the active projects is $21 billion in prospective investment and more than 55,000 potential jobs. Of that number, slightly more than 19,000 would be operational jobs and 36,000 plus would be construction jobs.
G. Kyllo: The minister indicated that there were approximately 25, but these firm numbers must relate to a specific number of projects. I just wondered if the minister could share with us the job numbers, the dollar value to which he refers, and what the specific number of projects is that he’s referring to.
Hon. B. Ralston: I just want to once again correct what the member said. I said “average;” I did not say “approximate.” There is a difference between those two words, and I chose the term “average” very deliberately.
Just to recapitulate on this issue, the number that’s given represents the current active projects with all the qualifications that I’ve attempted to convey. Projects do change. Proponents expand the project, they may withdraw, or it may become dormant for a while. But that’s the effort to quantify so that there’s some sense of what the office is engaged in.
In my experience and the reports that I’ve received on the activity in this office, it’s an attempt to be realistic in terms of what may come. There are very big projects, such as the Brucejack mine. There are projects which are smaller, such as the Molson Coors brewery, at $300 million — which, I suppose, in this era, qualifies as a smaller project in terms of the scale that this office deals in.
That’s a best effort to give an estimate of what the value of the projects in the inventory are. I hope that’s an answer that the member can accept.
G. Kyllo: I take it, from the minister’s response about the average number of projects, that the number of jobs that he refers to are also average — based on, I guess, the average number of projects that the major investments office may have underway at any given time.
Noting the hour, I just have a few closing comments. Certainly, we have a significant number of additional questions we’d like to pose of the ministry, and I hope that the minister would be agreeable to us providing those in writing and then receiving those responses in due course.
I want to thank the minister and his staff for their time. Obviously, the impact of jobs on the economy is extremely important to all British Columbians. I want to thank the minister for taking the time to provide answers to what government is doing in order to help support job creation and economic growth in our province and, more importantly, I think, to give British Columbians some confidence that the minister is actually the champion for businesses and standing up for businesses.
I certainly hope that in the months and years ahead, should it go that long, British Columbians can feel confident that our Minister of Jobs, Trade and Technology will be there to fight to support their initiatives and their directions and that we do not see continued escalation of tax increases on businesses in our province.
With that, Madam Chair, thank you very much.
Hon. B. Ralston: Let me briefly conclude. I know we have to adjourn. I want to thank the ministry staff. I want to thank the array of opposition members who have posed questions. I would, of course, have been prepared to proceed much longer. I think, unfortunately, other priorities overtook the decisions that allocated time to different ministries. Be that as it may, I’ve done my best to answer the questions that have been posed.
I want to just make sure that people understand that my commitment, the commitment of the Premier and the commitment of the government is to build a strong and prosperous British Columbia with good, sustainable jobs in every corner of the province, to respond to and make life more affordable for British Columbians, and to build the services that people count on. That’s what we were elected on, and that’s the job that we are endeavouring to carry out.
Vote 33: ministry operations, $104,769,000 — approved.
Hon. B. Ralston: I move that the committee rise, report completion and resolution, and ask leave to sit again.
Motion approved.
The committee rose at 4:48 p.m.
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