Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Wednesday, November 21, 2018
Afternoon Sitting
Issue No. 188
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Report on multiculturalism, 2017-18 | |
Office of the Registrar of Lobbyists for B.C., Investigation Report
18-06, Greater Victoria Chamber of Commerce, | |
Office of the Registrar of Lobbyists for B.C., Investigation Report 18-01, lobbyist: John Heaney, October 10, 2018 | |
Orders of the Day | |
Proceedings in the Douglas Fir Room | |
WEDNESDAY, NOVEMBER 21, 2018
The House met at 1:33 p.m.
[Mr. Speaker in the chair.]
Routine Business
Prayers.
Introductions by Members
Hon. G. Heyman: November is B.C. Lung Month. B.C. Lung Association staff and volunteers are here today to talk to us about the work of the association to save lives by improving lung health and preventing lung disease, and the negative effects of the forest fires on our air quality and lung health.
The Lung Association head office is in my constituency, and I want to welcome today the members of the association who are in attendance: Christopher Lam, Peter Paré, Kelly Ablog-Morrant, Gernail Bindar, Richie Gage, Michael Ellis and Scott McDonald. Will the House please join me in making them very, very welcome.
E. Ross: Today in the House we have some guests. Gary Biggar, regional director with the Métis Nation, could not make it today but sends his regrets. We also have Thomas Sewid, the ecotourism operator, guide and host of the Sasquatch Island television series. He’s actually a sasquatch Bigfoot researcher. We also have Ken Pearce, who is co-chair of the Pacific Balance Pinniped Society.
Last but not least is Roy Jones Jr. He’s a good friend of mine from Haida Gwaii. He’s a Haida Gwaii elder as well as a chief. He’s a great advocate and a great believer in science and facts and loves B.C. He is here to take a number of meetings. Would the House please make him welcome.
N. Letnick: I’d like to join with the Minister of Environment to welcome the B.C. Lung Association members here. We had a great meeting this morning and look forward to working with them in the months ahead.
I’d also take this opportunity to welcome Alana DeLong. Alana was a Member of the Legislative Assembly in Alberta, now lives on the Island and was very involved with the PNWER group — and, indeed, is a bright light on Vancouver Island. Please make Alana truly welcome.
Hon. J. Sims: Visiting us and sitting in the gallery today are some friends of ours from the Lower Mainland. They live in Richmond, but they’re good friends to the MLAs from Surrey. We see them at many of our events.
We know that they’ve had a huge engagement in the political process back in the Punjab and are very, very active here, to build a good life for themselves. We have with us today Mr. Sukhinder Singh Mansahia, Neenu Mansahia and their beautiful daughter-in-law Megha Goyal, who has just been called to the bar here in British Columbia. I want all of you to join me in welcoming them to this House.
D. Routley: I’d like to welcome, along with the House, a dear friend, John Middleton. John was born in Sarnia in…. Well, never mind. He came to B.C. in 1973, and B.C. has never been the same. John has been a carpenter all his life. He was part of the Carpenters Union, and he tells me he was an on-again, off-again horse-flogger. I’m generously assuming that that means selling horses.
John has two girls and one boy. He was a single dad way back when, when that wasn’t at all a common thing. He works hard for Fair Vote. He’s volunteered for the NDP for a long time, and for me. I’m gratefully thankful for that. John is living the dream as a farmer in Cobble Hill.
Welcome, John.
M. Stilwell: Today seated in the gallery up behind me, I understand, are 24 amazing grade 11 students from Ballenas Secondary School in my riding. Please wave at them. I said I would, but I can’t see them.
Among them are Matthew, Emma, Leo, My Huy and Tananger, who actually presented to the Finance Committee in Campbell River for the B.C. budget consultation. I greeted them with their teacher Olivia Hill in the Memorial Rotunda this afternoon to tell them about what goes on in the House and what the responsibilities of an MLA are. Now they get to witness it for themselves here today. Please join me in giving them a very parliamentary welcome.
L. Reid: We’re joined in the gallery today by two lovely souls who guided the work of the establishing of the Fallen Paramedics Memorial on the south lawn of the Legislature. Gentle-handed Lynn Klein guided that work, and Deborah Price chronicled the entirety — basically, from the moment the idea came to fruition to it actually coming to life on the back lawn. Please welcome Lynn Klein and Deborah Price.
R. Kahlon: I want to recognize some respected elders from North Delta, who took advantage of the free ferry ride today to come see us all in action. I’d like the House to make welcome Gurmeet Singh Sandhu, Daljit Singh Raj and Surjeet Singh Deol. I want to welcome them to the House here today.
Hon. M. Mark: It’s my pleasure to introduce Kevin Wong, who’s a constituency assistant at my MLA office in Vancouver–Mount Pleasant. He’s a second-year student studying political science at the University of British Columbia. Would the House please join me in welcoming my special guest.
J. Thornthwaite: I have some special guests today from the Hope for PTSD Symposium, which I actually attended on October 4. They want government to recognize PTSD and outline best practices for all professionals treating this disorder and aid people through the recovery process.
My introductions to the House are for Dr. Michael Sorsdahl, Mike Annan, Janelle Breese Biagioni, Alana DeLong, Andrea Zoric, Josh Crawford, Crystal Bouche, Dr. Connie Alsop and Trish Schooler. Could the House please welcome them to the House. They’re right there.
Welcome.
J. Martin: It’s a great pleasure to introduce a very close friend of mine and a longtime acquaintance of yours, Mr. Speaker. All the way from beautiful downtown Kelowna, please welcome John Shandalla to the gallery.
Hon. R. Fleming: I would like to introduce a young student, a grade 5 student, from Cloverdale Traditional School in my constituency who is here with us, I believe, visiting the Legislature — or the gallery, certainly — for the first time. Her name is Sophie Wilkinson. She’s here with her grandmother, Sharon Wilkinson, who is the president of the Premier’s executive council. I would ask the House to make both of these guests most welcome here today.
Hon. B. Ralston: Joining us in the members’ gallery today is a delegation from Italy, representing the region of Emilia-Romagna, led by the Regional Minister for Agriculture, the Hon. Simona Caselli. For those of you who don’t know Emilia-Romagna, it is a leading jurisdiction in cooperative enterprise, both in agriculture and many other sectors.
This is the minister’s first visit to British Columbia. She’ll be meeting with me and a number of other ministers to discuss matters of mutual concern between our respective jurisdictions.
Would the House please make the minister feel welcome.
T. Shypitka: I’m happy to see in the gallery today members from HeliCat Canada. Formed in 1978, HeliCat Canada is a not-for-profit association registered under the B.C. Societies Act. They advocate for safe and fun recreation and are a welcome component to our tourism industry. House, please welcome the guests today.
R. Leonard: Today visiting the gallery and the Legislature are 40 students from Mark R. Isfeld, under the tutelage of Ms. Zirkl and Heather Beckett. I asked specifically why, because this is the second or third time that these teachers have brought students to the Legislature. They say grade 10s love to learn by experience. So when they do come into the House, I hope that everyone gives them a great experience. Please join me in welcoming them here to Victoria today.
R. Singh: I would also like to welcome the members of HeliCat Canada: Ross Cloutier, Chris McNamara, Christopher Nicolson and Walt Judas. Would the House please make them feel very welcome.
A. Kang: Today, for the first time, my legislative assistant, as well as the legislative assistant for the MLA for Maple Ridge–Mission and the MLA for Surrey-Fleetwood, is here. It has been a long time since she’s been in the gallery. I want to make her feel very special.
She has been one of the longest-serving staff here at the Legislature. She was the CA to Penny Priddy, who was a former Minister for Education and Health. Then she moved on to become a family justice counsellor, and now she’s back here again as an LA.
She has been a mom to me and a family, a very caring, thoughtful friend. As well, I love her smiles and cooking and her wonderful advice for fashion and life advice. Her name is Gurbrinder Kang. Would the House make her feel very welcome.
Thank you, Gurbrinder.
A. Olsen: I figure we’d give the gentlemen a trifecta here. It was a wonderful opportunity to meet with Walt Judas, Ross Cloutier, Chris Nicolson and Chris McNamara last night.
Thank you very much for coming and taking the time to talk with me about adventure tourism and the importance that it has in the British Columbia economy.
Here is the trifecta. Welcome, gentlemen, to the House.
Tributes
TIM BOUTIN
Hon. K. Conroy: I rise today with some sad news, the passing of a constituent, Capt. Tim Boutin of the Trail Fire Fighters Local 941. Many members will remember Tim for his many years advocating here at the Legislature on behalf of firefighters provincewide. He had worked for the Kootenay Boundary Regional Fire Rescue, Station 374, for 26 years.
He passed away on November 14 from occupational cancer. He leaves behind his wife of 36 years, Lorraine; his two children, Kyle and Sam; their spouses, Karen and Kate; and his four granddaughters. He will also be deeply missed by his mom, Blanche, and his extended family.
He was born in Montreal and had lived many places across Canada before coming to B.C. He was a devoted husband and father and loved coaching his boys’ hockey and soccer. After he retired, he really loved being a grandpa and woodworking. Tim had a great sense of humour and will be remembered by family and friends for his ability to make you laugh no matter what the situation.
There will be a celebration of Tim’s life on Monday, November 26. I ask the House to join me in sending an expression of sympathy to Tim’s family, his friends and his firefighter family.
Introductions by Members
B. D’Eith: I also wanted to echo my greetings for my legislative assistant, Gurbrinder Kang.
I also wanted to mention that today I was very pleased to be able to spend some time with her brother, Harinder Singh Mann. He’s a farmer from Amritsar, Punjab. He’s here with Gurbrinder’s nephew, who’s a civil engineer who’s also working right now on the farm, growing pears and guavas. His name is Harbakshish Singh Mann. They were here, as well, today to see the Multiculturalism Week proclamation, which was great timing.
I just wanted to have a big welcome to our guests from India.
Introduction and
First Reading of Bills
BILL M222 — ADOPTION
AMENDMENT ACT, 2018
D. Barnett presented a bill intituled Adoption Amendment Act, 2018.
D. Barnett: I move that the bill entitled Adoption Amendment Act, 2018, of which notice has been given in my name on the order paper, be introduced and read a first time now.
This bill removes the legislative stipulation that disqualifies adults over the age of 19 from formally being adopted if these individuals were not supported as children by their prospective adopter.
The bill increases the ability for consenting adults to have the freedom to define their family relationships and have them recognized by the state without the unnecessary and arbitrarily restrictive legislative exclusions currently present in the Adoption Act. This bill will allow consenting adults who enter adoptions the ability to have equal access to state benefits afforded to families.
This bill aligns British Columbia with other Canadian jurisdictions that already have allowances to adulthood adoption in place, such as Manitoba, Alberta, Ontario and Saskatchewan, among others.
This bill allows for the same protective safeguards against abuse of the adoption process granted to adoption of minors to remain in place for adults by allowing the courts to determine the validity of the motivations of prospective adult adoptions.
This bill has been brought forward due to the fact that in my constituency, I have adults who wish to be adopted, and under the system, it is difficult.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
D. Barnett: I move this bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill M222, Adoption Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Statements
(Standing Order 25B)
RACISM AND MULTICULTURALISM
R. Kahlon: This year marks the 25th anniversary of B.C.’s Multiculturalism Act. In 1993, when the act was first created, residential schools remained open in Canada. A ban preventing Sikhs from wearing turbans in the RCMP had only just been lifted. The provincial cabinet included just one person of colour.
We have made significant strides in 25 years. However, like many of you, I feel and observe an unsettling change in our society. This change is occurring in daily life both off and on line.
People’s symbols of faith are being challenged in Quebec. A new Canadian political party is using issues of public safety and immigration to stir up hate. Here in B.C., we have seen people targeted on public transit for who they are or how they dress. And sadly, racism has led to recent horrific hate crimes south of the border as well as here in our own country.
This is a critical moment in our society. It’s up to us as individuals, as human beings, to build these bridges. Tolerance is no longer enough. Instead, we must strive for equity, acceptance and inclusion.
Our government takes this responsibility seriously. We have re-established a B.C. Human Rights Commission with the power to address systematic discrimination in our society. As part of our commitment to true and lasting reconciliation, we will be fully adopting and implementing the United Nations declaration on the rights of Indigenous peoples and the calls to action of the Truth and Reconciliation Commission.
These are just first steps, but they won’t be the last. This Multiculturalism Week, our pledge as a government is to meet hate and intolerance head-on for the sake of our beautifully diverse province. I ask all British Columbians to do the same.
SUPPORT FOR
SIKH COMMUNITY IN KELOWNA
N. Letnick: Earlier this week a Sikh gurdwara in Kelowna was the target of hateful graffiti. For many years, my colleagues and I from Kelowna have visited the Sikh community on Davie street. They have become more than our neighbours. They’ve become our friends.
The bigotry reflected in these crimes is not representative of the people of Kelowna or British Columbians as a whole. We are a proud multicultural society, and we are all the better for it. The attitudes of those responsible for these acts against the Sikh community have no place in our province. No one is born with hate in their heart, and we must stand together to condemn this type of learned behaviour.
Every spring I organize a walk up Knox Mountain for world peace. Families come out, and we make a real effort to teach the values of tolerance, acceptance and peace. Many Sikhs attend. Today I rise in this House to extend our sympathies and support those affected by this bigotry. We stand in solidarity with the Sikh community in condemning this hateful act and ask that anyone with information on vandalism please contact the Kelowna RCMP.
Together we must oppose racism and intolerance of any kind and strive to create the kind of society where crimes such as these are a thing of the past. I ask all members of this House to join me in saying Waheguru ji ka Khalsa, Waheguru ji ki Fateh.
DUNDARAVE FESTIVAL OF LIGHTS
B. Ma: “It is better to light a candle than to curse the darkness.” Those are the words of Michael and Mary Markwick, two West Vancouver residents who organize the annual Dundarave Festival. This winter celebration of arts and culture in West Vancouver features four Saturdays of absolutely free, jubilant and heartwarming concerts. It’s cherished across our region.
The true heart of the Dundarave Festival is the forest of miracles, an outdoor display of hundreds of Christmas trees purchased by donors with the aim of, in the words of the festival, ending homelessness beautifully. The Dundarave Festival’s forest of miracles has raised over $400,000 in charitable donations for the Lookout Society’s life-changing work on the North Shore.
Earlier this year the Dundarave Festival and Lookout Society were able to announce that with the money raised through years of hard work and community support, the Lookout Society has purchased a unit of permanent housing for a homeless North Shore senior.
It was because of their dedication to this important work that I was honoured to have Dr. Markwick join me on November 13 at Chelsea Gardens, where the Minister of Municipal Affairs and Housing, along with the Premier, added to their success by announcing the construction of 4,902 affordable rental accommodations for seniors, families and individuals alike, with 196 units to be built right there in our home on the North Shore.
In using arts and culture to create meaningful dialogue about the housing crisis and powerful action to end homelessness one person at a time, the Dundarave Festival shines with the best spirit of our community and the true spirit of the season. It is my honour to invite all members to join me for the launch of the tenth annual Dundarave Festival on Saturday, December 1.
WILLIAMS LAKE
CHILD DEVELOPMENT CENTRE
D. Barnett: The mission statement of the Williams Lake Child Development Centre is “to provide an accessible regional hub of services that support children, youth and their families.” Taking an integrated service approach, their vision is to make a positive difference in the lives of everyone in the community by providing vital support to children and youth.
The Williams Lake Child Development Centre is primarily supported by the province through the Ministry of Children and Family Development. However, the centre also enjoys the support of the Williams Lake Bingo Association, the Variety Children’s Charity, parent fees and, from the generous contributions of individuals and business donors, foundation funding and corporate sponsorship.
The centre has been in operation since 1974 and has grown over the years in scope, under the auspices of the CEO, Nancy Gale. Over 600 children and their families in Williams Lake and the surrounding area received support from the centre in 2016 and ’17.
In 2015, the CDC Cariboo autism centre was officially opened. It provides individual programming to clients and their families in order to make life better for everyone. One of the goals of the CDC’s Autism Centre is to learn more about the experiences of families in rural and remote communities with someone living with autism spectrum disorder.
This is an amazing organization that provides much-needed services to families throughout the region: occupational therapy, physiotherapy, parent support groups and much more. Every year the community comes together in Williams Lake and holds an annual fundraising Christmas Wish Breakfast. I invite everyone to come to Williams Lake on the 12th of December, 6:30 a.m., for a great breakfast with myself and the centre and families.
OPERATION RED NOSE SAFE RIDE PROGRAM
A. Kang: As the winter holidays draw near, Operation Red Nose is gearing up. Operation Red Nose is a national safe-drive program. It is a non-profit, community-based program that helps drivers get home safely during the holidays. The service is free, but drivers may make donations, which then get donated to local youth and amateur sports charities. Its mission is to make sure that anyone who has been drinking or is too tired does not drive.
The program and its volunteers operate on most Friday and Saturday nights from November 30 to December 31. For those who are tech-savvy, you can download the Operation Red Nose mobile app. Operation Red Nose is available in many cities, including Abbotsford, Mission, Burnaby, Chilliwack, Delta, Richmond, Kamloops, New Westminster, North Shore, Prince George, Maple Ridge, Tri-Cities and Williams Lake. As well, ICBC has been a proud partner of Operation Red Nose since it began in B.C. in 1996.
The success of Operation Red Nose depends on its volunteers. It’s a great way to give back to communities while helping to keep our roads safe over the holidays. In 2017, approximately 3,300 dedicated volunteers across B.C. gave 4,700 rides to get people and their vehicles home safely, while raising over $137,000 for the local charities. Businesses can also get involved by supplying many things that keep the program and volunteers running, such as phones, food, advertisements and gifts for the volunteers.
Operation Red Nose hopes that by offering a completely safe, free and confidential way to get home, lives will be saved on our roads. Remember, only Santa has a magical vehicle. The driver is safer when the roads are dry. The roads are safer when the driver is dry.
Think of the future. Think of your date. Think before you make that fatal mistake. Don’t drink and drive. Call Operation Red Nose at 1-877-604-NOSE.
BILL MUSTAKLIM
R. Sultan: My constituent Bill Mustaklim describes himself as competitive, always trying to improve. He believes physical and mental fitness go hand in hand, and most experts would agree.
Bill takes full advantage of the North Shore Mountains in our backyard — Grouse, Cypress and Seymour, two of them provincial parks. He hikes, does mountain biking, snowshoeing, and in particular, he runs.
Last year at the B.C. Seniors Games in Kimberley-Cranbrook, he won a gold in the 4 x 100 relay, a bronze in the 50-metre sprint and a fourth in the 100 metre. Next year the 55+ games are in Kelowna, and Bill will be there too.
Bill uses sports to help fundraise for important causes. He helped organize the Glotman-Simpson Cypress Cycling Challenge, a mountain climb criss-crossing my riding boundary as it reaches the mountaintop, raising funds for the B.C. Cancer Foundation. This year 770 cyclists took the challenge and raised over $400,000 for pancreatic research.
Bill finished second but confesses there were only two other competitors in his age group. Did I mention he’s in the age 75-to-79 category?
Congratulations, Bill Mustaklim. You are a role model for the growing number of very active seniors in our province.
Oral Questions
RIDE-SHARING SERVICES
A. Wilkinson: We all know that Vancouver is now the largest centre in North America without ride-sharing services. Sadly, we’ve seen the introduction of legislation, put together, presumably, with the connivance of the Third Party and their secretariat, that has the effect of obstructing any foreseeable modernization of the taxi industry or permission of ride-sharing.
I’ve now received close to 10,000 emails expressing distress over this. Clearly, there is a public wave of dissatisfaction with the legislation recently introduced.
This is what Ride-Sharing B.C. had to say about this yesterday: “We are bewildered. We are absolutely stunned. It completely defeats the purpose of ride-sharing, which is driven by the consumer.”
The obvious question is: why is this Transportation Minister obstructing the development of ride-sharing with this completely backward legislation?
Hon. C. Trevena: I thank the Leader of the Opposition for his question. The Leader of the Opposition was also in the former government and knows that for the four years he was in the former government, nothing happened, although ride-sharing was available at that time.
We know that Uber approached the former government. In fact, the present Opposition House Leader was Transportation Minister when Uber first started to want to operate in B.C. That was back in 2012. But we have nothing.
We have brought in a bill that is going to bring in ride-sharing for the people of B.C. It’s going to modernize the taxi industry, and it’s going to provide safe transportation options for people who really want to be able to travel around our province.
Mr. Speaker: The Leader of the Official Opposition on a supplemental.
A. Wilkinson: The Minister of Transportation either has conveniently forgotten or didn’t bother to ask about the miscellaneous statutes passenger transportation services amendment act of 2017, which has accomplished exactly the task that she pretends didn’t happen under the prior government. Can the minister explain…?
Interjections.
Mr. Speaker: Members. Members, order, please.
A. Wilkinson: Did the minister ever see this draft act that’s two years old, or is she misleading the House?
Hon. C. Trevena: The previous government had five years to bring in legislation. The Leader of the Opposition may have draft pieces of legislation which are still draft. We have real legislation. And if the Leader of the Opposition says it accomplishes the same thing that their draft legislation did, which wasn’t introduced to the House in the five years that they had the opportunity to do it, I anticipate they will fully support our bill.
Mr. Speaker: The Leader of the Official Opposition on a second supplemental.
A. Wilkinson: Well, we now see the minister playing games. She denies the existence of pre-existing legislation, comes here with her magic bullet. This is like “Jack and the Beanstalk.” We’re suddenly told that there is the magic pill that will solve the problems.
The problem is that the draft legislation the minister has put on the table blocks the needed changes in insurance. It blocks the opportunity to introduce ride-sharing in British Columbia. And we have close to 10,000 people writing in to say that this legislation accomplishes absolutely nothing except to stall, delay and obstruct.
Perhaps the minister can answer the question. Why is the minister oblivious to the needs of consumers, creating a high-handed, centralized bureaucracy and ignoring the needs of the taxi industry for more flexible insurance?
Hon. C. Trevena: Again, I’d like to remind the Leader of the Opposition that as a member of the previous government, he knew that there was a great opportunity, a great demand for ride-sharing for five years. Since 2012, since Uber first came into the market in Canada, there’s been a huge opportunity, a huge demand.
As a critic, I was getting a lot of emails. As the minister, I’m getting a lot of emails. People want change. We’re bringing change, but we are bringing change that is going to be safe. We are ensuring that people who get into a car that they’re paying for, for their ride, will be safe.
I know the Leader of the Opposition agrees with this, because he said, just this summer: “The issue is how you make sure there’s a safe environment in which drivers can operate and passengers, in particular, can operate.” That’s exactly what we’re doing, and I anticipate that he will fully support our bill.
J. Thornthwaite: Despite receiving one email every five seconds, the minister continues to thumb her nose at consumers. Here’s just a sample of hundreds of comments I’ve received from my constituents in the last 24 hours. Joanne writes: “I cannot understand why the government is being so difficult and dictatorial.” Joe writes: “They have failed to bring one of the best tech services…”
Interjections.
Mr. Speaker: Members. Members, we shall hear the question. Thank you.
J. Thornthwaite: “…to citizens. It’s a disgusting mess.”
My question is to the minister. Why is this government introducing a bill that will effectively block Joanne, Joe and the rest of British Columbia from ever getting ride-sharing?
Hon. C. Trevena: Yes, I think we all get a lot of emails from people who want to have options for transportation. I accept that, and I know that it is absolutely unacceptable to have to be waiting for a long while to get a cab. People are really frustrated, which is why, after five years, there is finally legislation in this House that will bring in ride-sharing for people.
I mean, even Uber — we use this as the generic for ride-share — has acknowledged that they approached the government in 2012. The spokesperson here in B.C. says: “Timelines are a big question to British Columbians. There are people who’ve been waiting for this service since 2012.”
The opposition was in government in 2012. The opposition was in government until 2017. They did nothing. We have brought in legislation that will bring it about.
Mr. Speaker: North Vancouver–Seymour on a supplemental.
J. Thornthwaite: The NDP government promised ride-sharing in 2017. They promised it in 2018. Now we have it at 2019. Maybe ’20, maybe not. Maybe never. Ride-sharing means customer-driven service, and my constituents want it now. Brenda writes: “I’m sorry. I just don’t believe the delays are driven by legitimate concerns for the public.” Greg writes: “What’s the holdup? This is crazy. Every other major city in Canada has it.”
Again, Brenda, Greg and the rest of British Columbians….
Interjections.
Mr. Speaker: Members, the member for North Vancouver–Seymour has the floor.
J. Thornthwaite: My question, again, is to the minister. Brenda, Greg and the rest of British Columbians want to know: why is this minister blocking ride-sharing?
Hon. C. Trevena: As I have stated several times, there is a bill in the House. We have legislation here which is going to enable app-based ride-hailing — enable it, not block it.
We know that people want options for transportation. They know they want safe options. They want affordable options. That is what we’re going to be providing. We’ve also been able to, in the time that the opposition, when they were in government, didn’t bring in anything….
The only advantage to that, apart from frustrating constituents, is that it means that we have been able to learn from other jurisdictions where they have found there were massive problems when ride-share was brought in. For instance, in New York City, they are now bringing in caps on the number of vehicles.
A ride-hailing expert from the University of Toronto has said about our approach to ride-hailing…. Shauna Brail said, on our approach to ride-hailing: “They,” meaning B.C., “skipped right over ride-hailing 1.0, and they’re at ride-hailing 2.0.”
It’s going to be good legislation.
GOVERNMENT ACTION ON CLIMATE CHANGE
AND ROLE OF TRAINING AND
TECHNOLOGY
S. Furstenau: In just a few decades, the carbon drawn down over many tens of millions of years and stored in the oil, gas and coal reserves of today is being released back into the atmosphere. If global emissions do not start to dramatically decline in the next few years, millions of people, including British Columbians, will be at risk from heat waves, droughts, floods, storms and wildfires. Small communities across our province, already hit by increasing natural disasters like wildfires and floods, will need more and more resources to cope.
We need to train and educate our workforce today with the skills that will be needed tomorrow. We need to focus skills training on technology and innovation that will help us to be more resilient and adaptable in the face of a changing world.
To the Minister of Advanced Education: what are the greatest climate change–related risks and opportunities facing your ministry, and how are you prepared to deal with both?
Hon. M. Mark: I thank the member opposite for the question. We are taking climate action seriously. It is, in fact, one of the greatest challenges for our generation. I think about Grand Chief Stewart Phillip, the president of the Union of B.C. Indian Chiefs, who says that we need to all embrace climate action and its challenges.
I am confident that the 25 public post-secondary institutions are up for the challenge. They have the capacity to deliver. They are training the leaders of tomorrow in climate policy and climate research, and we are going to build up the next generation for the green economy.
One of the key pillars of our ministry’s government is to work with Indigenous people — truth and reconciliation in action. I had the opportunity to visit the Penticton Indian Band, who’s working in partnership with the Nicola Valley Institute. They are training up the next generation of stewardship for their land. I’m very proud of those partnerships.
Mr. Speaker: Thank you, Minister.
Hon. M. Mark: I’m also really proud of our ability to promise on the 2,900 seats that are investing in tech and, finally, to deliver on student housing, Passive House standard.
Mr. Speaker: Thank you, Minister.
S. Furstenau: The current state of B.C.’s climate is not “the new normal,” as many were saying this summer under a cloud of smoke. Normal implies a plateau and consistency. We are not on a plateau. We are on a steep trend towards increasingly extreme events. I’m sad to say this is just the beginning, and it pales in comparison to what we have in store.
Climate change poses an opportunity for B.C. to be at the forefront of developing an economy that is part of the solution. We’ve seen the tech industry in B.C. blossom. Over 100,000 people work in local tech, accounting for over 5 percent of B.C.’s total workforce. Ensuring that our workforce is prepared for the vastly different economic landscape and the job market of a changed climate will require an all-of-government approach.
To the Minister of Jobs, Trade and Technology: what are the greatest climate change–related risks and opportunities facing your ministry, and how are you prepared to deal with both?
Hon. B. Ralston: I thank the member for the question. We recognize the challenge before all of us to reduce greenhouse gas emissions and to make meaningful steps while investing in a sustainable economy.
Climate change presents, obviously, a number of risks that could impact all sectors of our economy and our ability to trade with other countries. As a coastal province, for example, our ports and other trade infrastructure are particularly susceptible to rising sea levels and more extreme weather. Some of our key economic sectors…. Forestry — we’ve seen the fires just in the last two summers — mining, agrifood, seafood, transportation and tourism will all be greatly impacted by a changing climate.
We are taking real action on climate change to grow our economy and create good jobs for people. As the global economy shifts to greener, low-carbon products and services, we’re ensuring traditional industries innovate to remain competitive.
As the member mentioned, we launched the emerging economy task force to identify how B.C. can remain globally competitive and support our people in the future. The task force will help us understand the emerging impact of climate change, understanding the nature of business and the economy.
Interjections.
Hon. B. Ralston: They just don’t want to hear what we’re doing, clearly. I know the people of British Columbia do.
ACTIVITIES OF
COMMUNICATIONS CONTRACTOR
P. Milobar: According to the Minister of Citizens’ Services and her repetitious, canned answers, the “no records” response from Marie Della Mattia in the Premier’s office was on account of the nature of her work. Well, Della Mattia became a contract employee in January and was required to produce, according to her own contract, “a monthly written report to the deputy minister.” A monthly written report.
Can the Minister of Citizens’ Services explain why no monthly written reports exist?
Hon. J. Sims: That particular person has worked on contract for government and in a variety of roles. She provides advice. She worked for us for a while when we first came into government. I can tell you she did her work and carried out her duties.
Mr. Speaker: Kamloops–North Thompson on a supplemental.
P. Milobar: Let’s be very clear. This is a nine-month period we’re referencing when Mrs. Della Mattia was on contract and was required under her contract to provide written reports. When asked under FOI for these reports, this government could only produce a handful of Della Mattia invoices over that same period of nine months. They aren’t monthly, and they certainly aren’t reports. They’re bills.
That’s right — not one written report, only invoices that show she cashed her cheques at a rate of $150 an hour, totalling just north of $35,000. But still no reports.
This government fired a civil servant after falsely accusing him of not producing any reports. Will the minister fire Della Mattia for breach of contract?
Hon. J. Sims: I do not have the specifics. I will report back.
J. Johal: Well, let me provide some specifics. On September 25, three hours for “FOI.” The same thing on August 18, July 23 and on two other occasions — 15½ hours for FOI at $150 an hour, plus GST. That’s nearly $2,500.
To the Minister of Citizens’ Services, why is Della Mattia billing taxpayers $150 an hour to go through her own Gmail?
Hon. J. Sims: I will take this under notice and report back.
GOVERNMENT RECORDKEEPING POLICIES
G. Kyllo: Let’s look at this email again. It was sent on December 21 of 2017, and it reads: “Don” — this is the deputy minister, Don Wright — “did want to maintain the policy that has been implemented from the previous administration for political staff to not delete sent items.”
Had this policy been maintained, as Don Wright wanted, none of the “no records” issues would have actually occurred. But they did, and British Columbians deserve to find out who is responsible.
To the minister, what justification did the Premier have in overruling Don Wright and directing staff to delete sent emails?
Hon. J. Sims: I am proud of the fact that we are practising good records management. Let me tell you. We’re going to take no lessons from people who, when they sat on this side of the House, were a government of triple deletes and “win at all costs.” I can tell you that we have put training in place that is ongoing. We want to get this right, and we’re following the policies that exist for records management. Those that are transient are deleted. Those that need to be kept are kept. That is good practice, and we’re going to continue to do that.
Mr. Speaker: The member for Shuswap on a supplemental.
G. Kyllo: That is very rich. On May 17, the Premier said: “The deputy minister of my office is ensuring that best practices are being observed.” Clearly, Deputy Minister Don Wright felt that best practice was to retain all sent emails.
Did Geoff Meggs overrule Don Wright and order senior staff to delete all sent emails?
Hon. J. Sims: I think my colleague must really have been searching for a question to ask today. Let me tell you that we on this side of the House…. We need to know that our Premier committed to this. We did have some transitional problems right at the beginning. We corrected those. We put training in place, both for staff and for ministers. And you know something else? We are following the practices and policies that exist. Transient emails are deleted, and those that need to be kept are kept. We’re going to continue to do that, because good records management is exactly that, and we are committed to it.
L. Throness: We’re going to continue to raise this concern. Last spring and this fall we raised concerns about the mass deletion of emails by NDP staff. The Premier initially responded with his profound disappointment, and then he fobbed it onto his deputy, Don Wright, to do some kind of a review for political cover.
It could have been addressed very simply if the minister were simply to have instructed ministers and staff to retain all sent emails.
My question to the minister is this. Did Don Wright ever recommend this solution, to retain all sent emails?
Hon. J. Sims: We are following good records management practices. As committed, training was given to staff. It is ongoing training. And like any good records management, those records that need to be kept are kept, and those that are transitory are deleted. We will continue to follow the practice.
Mr. Speaker: The member for Chilliwack-Kent on a supplemental.
L. Throness: We have an email here that’s a year old, from the office of Don Wright to the Premier’s office. The email reads…. I quote from it: “Don” — that is Don Wright — “did want to maintain the policy that has been implemented from the previous administration for political staff to not delete sent items.”
Why did the minister or the Premier overrule the advice of B.C.’s most senior public servant in order to delete all sent emails?
Hon. J. Sims: I want to remind my colleagues that the records management practices, the policies, are exactly the same now as they were when the other side sat on this side of the House.
What we do and what is good practice is to keep records that should be kept, and transient emails are deleted. We have given training. We’re going to continue to give more training, because we know best practices is what we want to model here.
We are committed to good records management, unlike the other side, who were a government of triple deletes. And when they got caught, they misled the public.
S. Bond: Well, the minister can keep repeating the same answer, but let’s try the question one more time. It is not that complex — a pretty straightforward question.
Here’s what we know. We know that the deputy minister, Don Wright, wanted to maintain the policy requiring all ministers and their staff to retain their sent emails. Pretty straightforward.
Was the decision to overrule Don Wright documented, and will the minister, today, answer the question and commit to release those documents?
Hon. J. Sims: As I have said a number of times, we will continue to follow good practice for records management, and we will continue to provide the training to staff and other people as needed.
You know something? That policy is all about good records management and making sure those records that need to be kept are kept and transitory records and superfluous records are deleted.
It’s very hard to listen to my friends across the way being so sanctimonious, knowing their own past record.
Mr. Speaker: Prince George–Valemount on a supplemental.
S. Bond: What’s hard is to listen to this minister continually duck, dodge and weave her responsibility. Let’s be clear. She is responsible for the Freedom of Information Act as well as the chief records officer and records management of the province.
Let’s ask this question. What conversations did this minister have with Don Wright related to the policy of retaining sent emails? Not all about the answer she’s given before. What conversations did she have in reaction to Don Wright’s request that she direct ministers to keep their sent emails?
Hon. J. Sims: I want to thank my colleague for that question. Let me tell you. We are following…. I know she’s not going to like the answer, but it’s the same answer as I gave before.
There are policies that guide records management, and in my ministry, we have the responsibility for that. We take it seriously. We provide training, and we’re going to continue to do that to make sure we have good practice. I’m not going to take any lessons from people on that side, knowing their deplorable record for records management.
M. Polak: Let’s place the issue squarely before us. When the minister took her position, there was an existing policy. It was already in place. There was an existing policy that required that all ministers and senior staff in their office, their ministerial staff, retain all of their sent items. That was the existing policy.
At some point, someone had to make the decision to change that policy. It’s clear it wasn’t the Deputy Minister to the Premier that gave that advice. We haven’t heard whether it was Geoff Meggs, whether it was the Premier’s office.
Maybe the minister could try to answer this question. In terms of making the decision to end that practice, whose advice did she follow?
Hon. J. Sims: Records management sits in my ministry. We have policies and guidelines for good records management. We give training. That is ongoing.
We follow the policies that are in there. So do our staff. That is: you keep records that are meant to be kept, that have to do with government decisions or that are connected with them. Transitory emails are deleted. That’s basic hygiene in the email world; otherwise, you would just bung up the whole system.
Let me be clear. There is written policy. We’re following the policy, unlike the people on that side when they were in government — triple-delete, mislead and destroy.
[End of question period.]
Tabling Documents
Hon. L. Beare: I rise to table the 2017-18 Report on Multiculturalism.
Reports from Committees
FINANCE AND GOVERNMENT
SERVICES COMMITTEE
B. D’Eith: I have the honour to present the Select Standing Committee on Finance and Government Services report on the Budget 2019 consultation.
I move that the report be taken as read and received.
Motion approved.
B. D’Eith: I ask leave of the House to move a motion to adopt the report.
Leave granted.
B. D’Eith: In moving adoption of the report, I’d like to make some brief comments. As members know, each fall the Finance Committee has the privilege of hearing from British Columbians about what they believe should be the priorities in the next provincial budget.
This year, for the Budget 2019 consultation, we took some steps to renew our approach in an effort to encourage broader participation. We reached out directly to Indigenous organizations in the community-based groups and refreshed our communications and promotional activities. We also held the public hearings in community-oriented spaces, such as recreation centres, libraries and universities.
In total, we heard 267 presentations at 14 public hearings in communities across the province and received 253 written submissions and 472 responses to the on-line survey.
We were particularly pleased to be able to travel to Haida Gwaii for the first time. We learned how important it is for our committee to visit remote areas like this so that it provides us with a more fulsome picture of the needs of all British Columbians.
This report provides a comprehensive and detailed summary of what we heard and makes 100 unanimous recommendations for the next provincial budget.
Four key themes emerged during the consultation and shaped our deliberations: reconciliation with Indigenous peoples, inequality, climate change and the economy. These themes are reflected in many of our recommendations, and the challenges and opportunities they present need to be addressed in the next and subsequent provincial budgets.
I would also like to highlight the ongoing impact of climate change on our province — including the increased impact of wildfires, flooding and invasive species — and the need for significant investments to improve prevention, mitigation, adaptation, response and recovery efforts. On behalf of the committee, I’d like to thank all of the individuals and organizations that took the time to participate. Their thoughtful, detailed input was immensely valuable, and our report and recommendations are very much rooted in their input.
I’d also like to take this opportunity to thank all of the committee members — especially the Deputy Chair, the member for Penticton — for their diligence and hard work in this process, their attention and engagement during the consultation and excellent discussions during the deliberations.
On behalf of the committee, I would also like to acknowledge and extend our appreciation to a number of staff for all of the work they do in supporting this consultation. From the Parliamentary Committees Office, thank you to Jennifer Arril, the Clerk of the committee; Stephanie Raymond; Mary Newell; Mariana Novis; Karan Riarh; Nicki Simpson; and Willi Fahning. From Hansard, Mike Baer, Amanda Heffelfinger, Steve Weisgerber, Simon DeLaat and the entire broadcasting, transcribing and publishing team.
I believe that this report sets out a very good summary of what B.C. is thinking in terms of priorities on the myriad of issues facing our province. I invite the ministers to consider the recommendations — making this all-party committee as informed for the next public budget.
I wanted to thank you very much, hon. Speaker, for the chance to present this.
D. Ashton: As the Deputy Chair, I, too, would like to issue many, many thanks to the citizens who responded and came out to address the committee. Their input is incredibly invaluable. Also, many thanks to the incredible staff of the Clerk of Committees and Hansard, the backbone of all the committees in this House, the people’s House, and also to my peers on the committee, especially the Chair, from Maple Ridge–Mission, who did an incredible job.
As you heard, it was a unanimous report. That makes a big difference. Many people, unfortunately, only see question period in this House of the people. With the committees of both sides of the House, the Third Party included, we all show that we can work together. When a report like that can come forward, it makes a really big difference. Those are the kinds of things that the people of British Columbia should really notice of what goes on in the people’s home here.
Last but not least, I would like to pre-thank the Finance Minister and her incredible staff for the attention that will have to be addressed to the issues that are brought forward. Hon. Speaker, thank you, and thank you to all my peers on the committee for doing an incredible job.
S. Furstenau: I want to echo the comments. Thank you to the Chair. Thank you to the Clerk’s office, to Hansard and to all of the people that made this possible. It was indeed an enormous privilege to be on this committee, to travel across the province to hear from people across so many communities and to recognize that there is so much more that not only unites us in this House but that unites us across this province. We saw that time and again.
I do want to say that as the lone Third Party member, I was indeed not lonely at all. I felt great pleasure to be working with colleagues on both sides of the House. The congeniality, friendliness and warmth of our time on that committee, I think, really does need to be noted, and I thank all of the members, the Chair, the vice-Chair, for making this such a wonderful experience. Thank you very much.
Mr. Speaker: Members, the question is the adoption of the report.
Motion approved.
Tabling Documents
Mr. Speaker: Hon. Members, I have the honour to present investigation reports 18-06 and 18-01 from the Office of the Registrar of Lobbyists for British Columbia.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call continued second reading debate on Bill 55, the Passenger Transportation Amendment Act. In Section A, I call continued committee on Bill 45, Budget Measures Implementation Act.
[L. Reid in the chair.]
Second Reading of Bills
BILL 55 — PASSENGER TRANSPORTATION
AMENDMENT ACT, 2018
(continued)
J. Yap: It’s an honour and a privilege to carry on with debate on Bill 55, the Passenger Transportation Amendment Act. I appreciate the opportunity to continue my remarks after yesterday evening’s opportunity to begin my remarks.
I want to start out by, first of all, saying that this bill that’s before this House and that we’re debating here in second reading is, quite frankly, a great disappointment. It’s a great disappointment because this was an opportunity for the government, this minister, to bring forward ride-hailing to British Columbia. Today, as we’ve heard over and over again, we are the last jurisdiction in Canada to have ride-hailing. Greater Vancouver is the only remaining major metropolis in the entire continent of North America that is without ride-hailing.
This is very disappointing because this bill, while it is intended or is packaged and is marketed as a bill to bring in ride-hailing, is, in fact, a mirage. It does not do that. It only enables the introduction of ride-hailing to the province of British Columbia. This is very disappointing. Hundreds of thousands of British Columbians share in this disappointment.
My constituency office has been receiving, overnight, a tremendous number of emails and messages from very disappointed constituents. I am sure that all members of this House, both sides and the Third Party, have been receiving these messages of disappointment. Let me share for the record, with this House, some of the messages from very disappointed constituents that were really looking forward to something more from this government.
Let me begin with some feedback from commentators who have been following this topic with great interest. I quote some of the comments from journalists. We’ll start, first of all, with Rob Shaw from the Vancouver Sun. This is a direct quote: “NDP Legislation Pushes Ride-Hailing in B.C. to Late 2019.” Mike Smyth of the Vancouver Province: “Not an Encouraging Start to Ride-Hailing in B.C.” Vaughn Palmer from the Vancouver Sun: “B.C. Bill Just Delays Ride-Hailing Even More.”
My constituents have this to say. This is from my constituent Elon. He has this to say: “My wife cannot work a full-time job because of the health of our kids. Even part-time jobs with a schedule can be challenging for us. But something like Uber will allow her to work when she can. We are now struggling financially. This would really help.”
From my constituent Roxanne: “It’s ridiculous that a major city like Vancouver does not have ride-sharing. I have travelled all over the world and have used ride-share in the smallest towns. More importantly, I have a daughter who has been stranded on more than one occasion in downtown Vancouver because cab drivers refused to drive her home to Steveston. So I consider it a safety issue. Do your job and serve the people who elected you.”
Another constituent, Steve, says: “As a long-time resident of Richmond and user of Uber in many other cities, I remain frustrated and dumbfounded that we do not yet have the option of Uber here in B.C.” Let’s have one more, from my constituents Ed and Donna: “Why all the delays? We need ride-sharing now. My wife and I are seniors who do not drive and have been waiting patiently for ride-sharing for the last two years. We have used ride-sharing in Toronto, Honolulu and Los Angeles and found it very convenient.”
Clearly, British Columbians are disappointed that this government, this minister and the Premier, overpromised and now are underdelivering with this sham of a bill, which purports to introduce ride-sharing to the province of British Columbia — when, in fact, it is just another delay tactic, kicking this file down the road, perhaps another year and perhaps beyond. Who knows?
Some of the aspects of this bill that we’ve already heard about include regulations that will make it so onerous for potential entrance into this industry that it’s almost like this government does not want ride-hailing to come to British Columbia.
For example, insisting that a commercial licence, a class 4 licence, be required is making it so difficult and creating a high barrier for ordinary citizens who would like to participate in a program like ride-hailing to earn a little extra income. Whether it’s a senior on fixed income or a student attending college, an opportunity to drive as part of a ride-hailing service to earn a little extra income would be disallowed, unless citizens would be willing to go through the hoops and to go through the significant investment of time and training to get a class 4 licence.
When we look at the requirement, which this bill will require, that there would be an arm of government that would regulate the geography of where ride-hailing can happen, the supply of participants in ride-hailing, this goes completely against the whole intent and spirit of ride-hailing as an opportunity for a market-driven, consumer-driven service that would serve the needs of consumers, of customers.
Those are examples of the key flaws in this legislation. I hope, as we progress past second reading and get into committee stage, that the government would be open to some suggestions, perhaps amendments, that would help to make this legislation what it’s purporting to be, which is to introduce ride-hailing to the province of British Columbia. In its current form, it just does not do that.
It’s another broken promise of this government, another broken NDP promise on bringing ride-hailing to the province, when this bill, as it’s presently written, will not do that. I cannot support this bill in this current form, and I know that colleagues from this side of the House share the same views. This does not do what it purports to do, which is to bring ride-hailing to our province — a needed service for customers throughout the province, especially in urban areas, as we’ve heard.
We hope that the government will be open to changing it so that it will do what it’s intended to do, which is to bring greater Vancouver, bring the province of British Columbia, into the 21st century and to have ride-hailing in our province. In its current form, it does not do that.
A. Wilkinson: Of course, we’re here on Bill 55, which is the unfortunate piece of legislation brought on by the government — apparently with the cooperation of the Third Party, since they worked with their secretariat — which has the result of dismally failing the ridership and drivers of British Columbia.
By failing to address the key issues related to ride-hailing and modernizing our taxi system in any significant way, this bill does nothing more than delay and obstruct and create totally unnecessary bureaucratic structures for something that should be managed out of a smartphone, not out of a building somewhere in Victoria filled with bureaucrats.
The issues involved were dealt with fairly substantively and thoroughly in a bill that was prepared in December of 2016. It’s, I think, stunning that the Minister of Transportation denies knowledge of this. The bill, which was referred to earlier today, known as the miscellaneous statutes passenger transportation services amendment act, 2017, is a fully substantive bill which was processed through the necessary drafting committees of the Legislature, through the legislative review committee, fully prepared by Attorney General’s ministry lawyers and ready to go. The Minister of Transportation has denied its existence.
This is either wilful blindness on her part or a derogation of her duty. The minister has an obligation to this House to be forthright about what has happened in her ministry, and she apparently overlooked the existence of substantive legislation that accomplished these goals two years ago — something that she flatly denies.
That bill, which I’ll call the 2017 act, created a level playing field, exactly what the industry’s been calling for. It dealt with insurance. It dealt with licensing. It dealt with zones. It dealt with the consumer demand–driven issues. And the minister pretends it doesn’t exist.
In the spring of 2017, there was a fully prepared revision to the Insurance Corporation of British Columbia’s insurance products to provide for exactly what we’re talking about here — insurance for ride-hailing. That was a bill in March 2017. It was actually announced on March 7, 2017, when that minister was sitting on this side and the Leader of the Third Party was sitting in this House. All were fully aware of it, and all of them have been denying its existence.
This calls for a great deal of clarification and also a great deal more honesty from the Minister of Transportation. This is a more substantive point. We rise to the issue of whether there’s an element of hypocrisy going on here….
Deputy Speaker: Excuse me, Leader. The minister seeks the floor.
Point of Privilege
(Reservation of Right)
Hon. C. Trevena: Thank you, Madame Speaker. I’d like to reserve my right on a point of privilege.
Debate Continued
Deputy Speaker: Please proceed.
A. Wilkinson: The hypocrisy of the members opposite and the government opposite and the Green Party, when they are fully aware of this pre-existing legislation, is rampant. It is inexcusable.
This, of course, goes to the issue of whether there is an opportunity for this government to redeem itself by making clear that these pieces of legislation were actually available to them, by telling the truth in the near future.
The core of this, of course, is to focus on the customer, on improving the industry in the face of technological change. That’s exactly what needs to be done in this kind of legislation in the very near future.
The wave of technological change is not going away. Ride-hailing, ride-sharing, the applications on smartphones are not about to disappear because of the whim of the government opposite and the Minister of Transportation, who is wilfully blind to the fact that everywhere else in the industrial world these services are widely available, including everywhere else in North America. Now we have a piece of obstructive legislation that is going to block the modernization of the taxi industry.
In terms of the consumer, we have to think of the demand being necessarily driven off the smartphone. This is where the demand will be measured, where it will come from, and it will not be determined by a ministerial committee operating out of the Ministry of Transportation. What the minister has introduced in legislation provides for an over-weaning, heavy-handed, state-run, ineffective mechanism for adjustment of a rapidly adaptive line of work and a field in which technology is now driving the future.
Instead, we get this state-driven approach driven out of the Ministry of Transportation which will not have any significant effect for years to come. We’re looking at, at least a two-year delay before any meaningful change will occur in the industry. So what we see is an effective bill from 2017 that has been transformed into a bureaucratic nightmare with top-down command and control of a service that, essentially, should be driven by the customer.
There is no need for the heavy hand of government in this line of work. There is no need to cripple the taxi industry by keeping it in the Dark Ages.
We have to think primarily, of course, of the things that need to be addressed — a flexible insurance product. That was anticipated in the 2017 act that was available in March of 2017. Why don’t we have insurance that’s only available on weekends? Why don’t we have daily coverage insurance? And most critically, why can’t it be kilometre-based? Why can’t it be, particularly, provided by the private sector?
Instead, we have the ongoing dead hand of the state-run monopoly run out of the Minister of Transportation’s office, which will have the effect of crushing enterprise, denying that spirit of entrepreneurship that is available to everybody in British Columbia if only the Minister of Transportation would provide some kind of modernized bill rather than put the dead hand of the state onto enterprise.
We have a second issue, of licensing. The minister has provided that anyone entering this line of work has to have a class 4 licence. This is a totally unnecessary, bureaucratic, costly hurdle. When we think of the people in this line of work — I rode with two of them yesterday — these people have challenges in life. They’re working off-hours. They’re working very hard, night shifts through the night to 6 a.m., to try and get ahead. There are many of them immigrants, just as I was an immigrant when we came to this country, and they’re looking to get ahead in British Columbia.
Instead of being able to say, “Here’s my class 5 licence. I’d like to get a few upgrades and some safety checks and get a class 5A licence,” or the kind of licence that already exists under class 5, with a type 7 endorsement for trailers without air brakes…. These are readily available today. It’s a minimal pathway to get it done, minimal obstacles for someone to go out and get ahead in life. Instead, we have the Minister of Transportation saying: “Forget it. Your dreams of getting ahead, those little incremental gains of a few hundred dollars a month, will not be available to you until you have a class 4 licence.”
This is crushing the spirit of enterprise and telling people who are trying to get ahead in life that they need not bother because there’s someone wiser in their world, and her name is the Minister of Transportation.
We also have to make sure that we understand where the demand comes from. It doesn’t come from a government ministry. It doesn’t come from some hallway in Victoria. It comes off the smartphones of consumers. That’s the modern world. The idea that you have to phone or use some completely inefficient app or somehow be in contact with one of the taxi companies is obsolete, and everyone knows it.
The taxi industry is very keen on modernizing their dispatch system. They’re working on the issue of getting uniform applications that will apply to the entire industry. That should be respected. This legislation should anticipate that change, accommodate it and facilitate it, rather than obstruct it.
What we have here is a bill that is designed to paralyze the ride industry in British Columbia, to obstruct transformation in the taxi industry, to make it more expensive and more difficult to be a taxi driver — all because the state knows better. The NDP, in all of their wisdom, know better how to arrange a 5,000-taxi fleet and know better how to crush the dreams of entrepreneurs who have very little in the way of means and who are just trying to get ahead with a class 5 licence. And the Minister of Transportation grins from ear to ear as she laughs at their prospects.
We have a chance here to send a very clear message to this government and to our society that this legislation is hopelessly backward-looking and ineffective, and it should be voted against. We cannot vote to support this oppressive, inefficient, backward-looking system that is designed to lock in the status quo at the expense of consumers and to cripple the future development of the taxi industry.
We’ll be providing amendments to this legislation that will address these very issues we’ve described. We’ll provide a private member’s bill that will comprehensively address the issues. And, of course, the invitation is to the Third Party to rise to the occasion, review the private member’s bill that is coming and to make it clear that they support a forward-looking, modern taxi industry, not the archaic, backward-looking, 20th-century industry that the Minister of Transportation is trying to keep in place.
It’s time for us to endorse a bill equivalent to the miscellaneous statutes passenger transportation services act of 2017. This has been fully reviewed in all the necessary vehicles in government, and it’s ready for entry into this room to be considered as legislation.
Of course, the question is: why wasn’t this considered as part of the current Bill 55? More importantly, since the members of the Third Party were here during that spring of 2017, why are they prepared to tout an obsolete and ineffective piece of legislation in the hands of the Transportation Minister, rather than to look into the future, rather than to address the interests of consumers, rather than to make for a more efficient taxi and ride-sharing service?
Rather than embrace the future, we’re going to grip onto the past and try to preserve the status quo. Why? Because the Minister of Transportation’s concept of the future looks an awful lot like the past.
I’m pleased and proud to pass on a notice of this bill, which will be the miscellaneous statutes passenger transportation services amendment act, 2018. I’m now prepared to hand that to the Clerk so that we can get on with modernizing our taxi fleet and our ride-sharing services, so that we can embrace the future and live in the next decade, not stick ourselves into the past of 20 years ago.
Deputy Speaker: Seeing no further speakers, the minister closes debate.
Hon. C. Trevena: I’ve sat through the opposition’s various creations of various myths about what is and isn’t going to be happening with our legislation, what did and didn’t happen when they were in government for 16 years. Admittedly, in those 16 years, ride-hailing apps were not part of the whole 16 years, but they were part of five years.
At the end of the rather hyperbolic rant by the Leader of the Official Opposition, he tabled a piece, a private members’ bill, which he says he had as a draft, the opposition had as a draft, when they were in government. It brings to the very heart the question. If it was there as a draft, it was there as a draft in the fall of 2016 into 2017. Why wasn’t it tabled, if there was legislation there? The opposition had five years in which they could table legislation.
The member for Langley, now the Opposition House Leader, met with Uber. She said at that stage, back in 2012, that it was going to cost $75 to ride in Uber. A bit steep. I know people anticipate to have cheaper rides. I’m sure that under our model, with the Passenger Transportation Board setting their fares and making sure we get that in place, the rides, when we get app-based ride-hailing, will be much cheaper.
I have to say the Leader of the Opposition and the opposition talking about how they had something ready to go…. They had every opportunity to bring it in. They were government for five years when there was app-based ride-hailing.
Now the Leader of the Opposition is talking about turning to private insurance to deal with app-based ride-hailing. I’ve got to say I think it’s outrageous if the opposition believes that undoing decades of a public insurance model in this province is going to be faster than creating a new product under the existing model. That is what we’re going to be doing.
Given the mess that the previous Transportation Minister left ICBC in, it is going to take a little time. We have a $1.3 billion hole, thanks to the previous government. I’ve got to say the opposition really don’t like to remember that they were a government up until just over a year ago, 16 months ago, and they have a responsibility for what hasn’t happened.
We have the draft legislation, which the previous government inadvertently forgot to bring in, even though it had gone through all the various stages it needed to go through to bring it in. They didn’t bring it in. They decided they weren’t going to bring it in.
Now, a bit like Neville Chamberlain, they’re waving it in the air, saying: “This is a solution. This is the solution.” I think that the public realized that that is not the solution. Even the former minister talked about the laborious approach needed to get to this stage. What did they do? They actually forgot to bring in their bill.
I think that the members of the opposition forget their own history with app-based ride-hailing. They do forget their own history. Even back in 2016, the member for Kamloops–South Thompson, the then Transportation Minister, said that at some point in the future, companies like Uber might be here, but not any time soon. That was back in 2016.
By the end of 2016, they were thinking they’re going to have an election issue. Maybe they needed to get something ready — didn’t get it tabled. They got their draft legislation — didn’t get it tabled. Now they’re waving it around.
I think that what they were planning, what they had five years to do, what they finally got together but forgot to table in this Legislature, forgot to bring it to the House whenever they got it ready — we have done it. We have before us a piece of legislation that will ensure that we get app-based ride-hailing as well as modernizing the current system.
I heard the member for Surrey South asking: “What is so unique about B.C.? Why is it taking so long?” Well, why is it taking so long? I mean, she was part of the government that, you know…. As her colleague says, it was a laborious process.
We also have the Passenger Transportation Board. We look at it provincially, and that’s what this legislation does. It looks at it provincially. We have ICBC, a provincial model, which, obviously, the Leader of the Opposition wants to take apart, because he thinks that having private insurance is the way forward.
I think this is going to be very interesting to debate as we go forward.
Accessibility has been a problem. I know that has been highlighted by the member for False Creek. That will be addressed through our legislation by a fee per ride in app-based ride-hailing.
I heard also from members opposite that our reputation is going to be at risk. B.C.’s reputation is going to be at risk. I’m concerned, obviously, about B.C.’s reputation. We are a wonderful province. We are a leader around the world for many, many things. But my role as Minister of Transportation…. While I want to enhance B.C.’s reputation, I also have to look out for the safety of the people of B.C. That is my prime role here.
I know that in London, England, a major market where they’ve had black cabs, they’ve had minicabs and they have app-based ride-hailing, they are really concerned about what has been happening in London. There is the question of safety of passengers, and attacks.
I heard the member for Chilliwack-Kent say that safety is driven by consumer demand. I would disagree. I think safety is driven by good regulation, and that’s what we’re going to be doing.
I heard, also, a very interesting, throughout the debate — the opposition making parallels with proportional representation. I find it’s very interesting that they’re making parallels between our referendum on proportional representation — which I think that they had wanted to see too, but yes, it’s our referendum on proportional representation — and then making parallel analogies with this legislation.
What was very strange was that the member for West Vancouver–Sea to Sky, my critic, was talking about all these locations where there is app-based ride-hailing: Iraq, Afghanistan, Russia and a number of other places. Syria, I think he mentioned, though I’m not going to count Syria because there has been a dreadful civil war in Syria for the last six years. So I’m not going to count Syria in this, and Iraq has its own problems. But I do know that at least in Iraq and Afghanistan and very likely Russia, we do actually have proportional representation.
It’s a strange analogy that these places have ride-hailing but they also have proportional representation. I’m not quite sure what the member was trying to drive at in his quotes. Maybe I shouldn’t press him on it.
While that logic really doesn’t follow, I’d like to compare. We heard from the Leader of the Opposition about the fact that, basically, Vancouver is the last major North American community without app-based ride-hailing. We’ve got to realize that these jurisdictions that have app-based ride-hailing have faced problems. They acknowledge they’ve faced problems. An urban planner in Toronto says that we’ve actually skipped over app-based ride-hailing 1.0. We’re at app-based ride-hailing 2.0, because we’ve learned from others’ mistakes.
In Boston, we’ve heard that…. A study has found that ride-hailing is adding new cars on trips and really exacerbating congestion on the roads.
In Denver, the usage of app-based ride-hailing has increased vehicle miles travelled by 85 percent — again, massive congestion from it. In San Francisco, a 50 percent increase in congestion there, from 2010 to 2016, was found to be the result of the ride-sharing cars. In fact, a report from San Francisco by the transportation authority questioned: “Do TNCs affect congestion?” The answer is, very simply, yes — a 51 percent increase in delay; in number of miles travelled, a 47 percent increase by app-based ride-hailing cars.
In New York, we are seeing a major change. We’re seeing that New York is wanting to…. Bill de Blasio, the mayor of New York, has been looking at caps on the numbers of ride-hailing cars and having everything data-driven, as we are doing, and also ensuring that there is a minimum wage of $17.22 an hour for those who are driving these app-based vehicles.
When the member for Kamloops–North Thompson talked about his trip to New York, I’m sure he was very well aware that with 100,000 new cars on the road and having to fix the system it already has, New York is now looking at a system similar to that that we are going to be introducing in B.C. through this piece of legislation.
We have a demand-driven system. We are using data, and we are going to ensure that people actually have the opportunity for a safe ride.
I’m very pleased that we’ve been having this debate. We have moved in a way that the previous government did not move. We have legislation on the floor of this House that will make a major change for the people of B.C. It will enable the start of app-based ride-hailing. As I’ve mentioned before, we’re looking at having this in. We’re looking at 2019. I know people want it sooner. We are doing it — making sure that we will have it there.
I think that when we finish the debate, we’ll have full support of it. I know that the opposition, who have now tabled a private member’s bill that has been lying around for a long while and never actually got to the floor of the House before, will be very eager to show that they want to see change in B.C., that they want to give their constituents the same choice we want to give our constituents and the whole of everybody in B.C., which is the opportunity that if they so choose, they can use their smartphone to order a ride wherever they want.
I look forward to committee stage. With that, I move second reading.
[Mr. Speaker in the chair.]
Second reading of Bill 55 approved on the following division:
YEAS — 43 | ||
Chouhan | Kahlon | Begg |
Brar | Heyman | Donaldson |
Mungall | Bains | Beare |
Chen | Popham | Trevena |
Sims | Chow | Kang |
Simons | D’Eith | Routley |
Ma | Elmore | Dean |
Routledge | Singh | Leonard |
Darcy | Simpson | Robinson |
Farnworth | Horgan | James |
Eby | Dix | Ralston |
Mark | Fleming | Conroy |
Fraser | Chandra Herbert | Rice |
Furstenau | Weaver | Olsen |
| Glumac |
|
NAYS — 41 | ||
Cadieux | Bond | Polak |
Wilkinson | Lee | Stone |
Coleman | Wat | Bernier |
Thornthwaite | Paton | Ashton |
Barnett | Yap | Martin |
Davies | Kyllo | Sullivan |
Isaacs | Morris | Stilwell |
Ross | Oakes | Johal |
Redies | Rustad | Milobar |
Sturdy | Clovechok | Shypitka |
Hunt | Throness | Tegart |
Stewart | Sultan | Gibson |
Reid | Letnick | Thomson |
Larson |
| Foster |
Hon. C. Trevena: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 55, Passenger Transportation Amendment Act, 2018, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. M. Farnworth: I call second reading of Bill 56, Oil and Gas Activities Amendment Act.
[L. Reid in the chair.]
BILL 56 — OIL AND GAS ACTIVITIES
AMENDMENT ACT,
2018
Hon. M. Mungall: I move that Bill 56 be now read a second time.
I am pleased to present the Oil and Gas Activities Amendment Act, 2018. Bill 56 is proposing to amend provisions in the Oil and Gas Activities Act to support an equivalency agreement with the federal government regarding methane regulations and to provide a legal framework for off-site environmental mitigation.
I know that this particular bill is not going to be capturing as many headlines as the previous bill, Bill 55, but I would argue that it is equally important to British Columbians because we are all committed to reducing our impact on climate change. One of the ways that we are able to do that is by reducing our greenhouse gas emissions, and methane is a greenhouse gas.
On the agreement with the federal government, they are putting in regulations to reduce methane emissions in the upstream oil and gas sectors all over Canada by 40 and 45 percent. The province has committed to going to that higher level of 45 percent. We want to be reducing methane emissions by 45 percent. In order for the federal requirements to not apply here in British Columbia, the provincial approach must be considered equivalent in terms of emission reductions.
I know that all of us here in the House value our place in Confederation and that we appreciate the laws that the federal government puts together and those laws that apply to us as provinces. But we also appreciate our own ability to make laws and govern our own land base.
That’s why we wanted to step forward with a made-in-B.C. approach and make sure it was equivalent so that we also had the jurisdiction to oversee the actual regulations that will be put in place and the implementation of those regulations; then also to be able to respond over time, as things may need to be changed; but also seeking to always achieve that federal goal of 40 percent to 45 percent — us, we’ve chosen 45 percent — reduction in methane emissions.
To achieve that equivalency, we need to do two things in legislation, and that’s what this bill does. We need to have regulations that generate at least the same reductions as the federal approach, which we are doing. And we need legislation that allows the public to request an investigation of any alleged contraventions of methane emission regulations and require government to investigate. That is what we are doing with this bill.
The proposed amendments will support a made-in-B.C. approach, as I said, to methane regulation by creating the complaint mechanism under the Oil and Gas Activities Act.
I think it’s also important that…. I see that there are some students up in the gallery today. You might be wondering: how it is that the federal government can even make laws that apply to the province in this respect? Well, I would bring their attention to section 1 of the British North America Act: “Peace, Order, and good Government….” The federal government is able to make laws for anything that it desires throughout the country. That being said, we have a constitution that defines provincial and federal jurisdiction.
Generally, provinces have jurisdiction over managing the land base. That is why we want to retain that jurisdiction and be able to ensure that we are the primary lead, as governing body, on protecting our environment, as well as ensuring that the work that’s done on the land base in the upstream of our oil and gas sector…. For those who don’t know where that is, that’s generally in the northeast of British Columbia. And for the members in the gallery, you’re going to be hearing from a member from that part of the province. He’ll be able to tell you all about how important that sector is for his region in particular.
That’s the portion of this legislation that looks at methane reduction. But while we are looking at this act, we also wanted to take the opportunity to look at how we do environmental mitigation. So this act is looking at an off-site environmental mitigation. What started this is the province’s current plan, in conjunction with the federal government, to recover boreal caribou and achieve self-sustaining populations. Part of this plan is a habitat offset policy. Where habitat has been lost for boreal caribou, we’re looking to reclaim that habitat and restore it so that our populations for caribou can grow again.
Just so people understand what’s happening with the different caribou, there are woodland caribou, and there are boreal caribou, but all of our caribou are at risk right now. In my riding, the caribou population has gone, in a very short period of time, from over 100 to three — three females at that. So the herd in my riding is considered extinct.
I have watched that over the time that I’ve been an MLA. In a very short period of time, we’ve lost that entire herd of caribou. This is a very, very delicate species, and we need to do what we can to make sure that it is sustained as it was able to do for millennia. We need to make sure that the activity that we have on the land base is not further destabilizing our caribou populations.
One of the things that we need to do is make sure that we’re restoring their habitat. This act allows for that to take place. However, we’re not limiting it solely to caribou. The off-site environmental mitigation policies that are coming through this legislation would also be open to apply to any type of environmental mitigation. That can include habitat restoration for moose, badgers, frogs — any type of wildlife that we need to ensure that their habitat is sustained.
We could look at other issues. For example, working with First Nations on some of the issues that they might find are necessary for their land use. Water reclamation. Whatever we see, as a government going forward, that we might want to use this type of policy for to ensure stronger environmental protection and reclamation as a result of industrial use of land, we’d be able to do that.
To be a bit more technical, the policy from this legislation would require permit holders to mitigate their impact from their activity by treating or restoring previously disturbed land elsewhere, outside of their operating area. In this case, it’s for caribou, so we would require permit holders to mitigate their impact on caribou habitat by treating or restoring previously disturbed caribou habitat outside of their operating area.
That would, therefore, ensure that we are building a strong habitat for a particular species — in this case, the caribou — and ensuring that we’re able to regain those populations.
With that, I look forward to the remarks from other members. Like I said earlier, this might not be the most headline-grabbing piece of legislation, but any time that we make forward movements to reduce our impact on climate change in this province, we are showing leadership not just in Canada, but we are showing leadership globally.
Any time we do it in a way that is in partnership and that works with industry, that’s further leadership showing that it’s not the typical green versus brown or the economy versus the environment — that these are actually one and the same and that we must always be considering them in conjunction. To me, I think that is very important — that that’s the type of path that we walk and the leadership that we show the world.
M. Bernier: I thank the minister for her words in putting the bill forward. Maybe I’ll start by acknowledging that she shouldn’t be selling herself short.
I’m sure this will get headlines in some parts of the province, maybe not in all parts of the province. I know that up in my area, this actually is important, as the minister alluded to, because 99.9 percent of the activity that’s referenced in this act and everything the ministry is doing around oil and gas activity happens, actually, in the Peace region. So of course, it is near and dear to my heart.
[R. Chouhan in the chair.]
To step back for a second, it’s acknowledging the prosperity that we have in the province and how our natural resources are the foundation of what they really bring to our province. Whether it’s mining, forestry, oil and gas or agriculture, all of these industries help build our province. Again, typically, in my part of the world, I’ve got all of those industries that are at the forefront, employing a lot of families and bringing a lot of companies to the region. You know, they depend on these industries. They depend on the natural resources for a job and to raise their family.
One of the main issues that we want to make sure that we talk about in this bill — because a lot of bills have been coming forward — is just making sure we have that certainty. That certainty is really important, not only, again, for the families but for the companies that are employing those people. We support the goal that the government has in front of them.
Of course, as the minister mentioned a few times, it’s nice if we can always look at a made-in-B.C. solution rather than it being a top-down-driven policy from the federal government. If we have an opportunity to meet the targets and be able to put our own regulations in place here — through legislation, hopefully — that is always something that’s desirable and something that we have.
I know we can’t capture it in this act, but one of the concerns or issues that I have when we talk about methane reduction…. We’re going after an industry in my corner of the province, and I’ll bet you if we looked at this, they’re not the largest producers of methane. Yet we’re going to be tarnishing them with these goals of reductions of 45 percent — albeit they have to play their role, and they acknowledge that.
I’d also encourage…. I’m sure the person who might speak after me might even acknowledge this fact. When you look at the amount of methane that is released from municipal dumpsites, from other areas in the province that we deal with in agriculture industries and others, this is not just about one industry. I want to make sure that we in this House don’t think that there’s one group that’s the silver bullet and we try to make sure that we go after them for absolutely everything. That’s not fair to that sector as well. That needs to be acknowledged.
Another concern that I have with this bill that we have in front of us is the continual reliance on regulation that this government has. It creates that uncertainty. When I talk with employers and companies in the area, it’s one of the things that they are always looking for: “Let’s set down some rules. Let’s set down the regulations. Let me know what hoops we have to jump through or what guidelines we have to meet, and we will work with government on that and do our part.”
What’s really troubling for many is when an act hits the floor and, once again, it will be: “More details to come in the future.” I know the minister will have an opportunity, because I’ll ask some questions around this when we get to committee stage, but one of the challenges that we’ve had through this session is that most of these bills that are hitting the floor are saying: “More information to come at a later date.” I’m thinking this one might not have 29 unknowns, like the proportional representation bill, but it does have some unknowns in there. Typically, we ask: “Can you give us more information?” And all we get is: “Dot, dot, dot.” Not too much to work with there.
Of course, we’re going to have questions as we go forward. The minister is, in all fairness to her and government on this, being tasked to meet targets that are put down again from the federal government, and they have to do this policy. So I’m glad to see them doing that. The last thing I would want in my area is government not taking control of this issue and then it being mandated from a higher-up who really doesn’t understand what’s going on in our province or in our area. So I do agree with the premise of this bill coming forward.
When we talk about some of the fugitive emissions, some of the questions I’ll be asking will be around that. Because when we talk about a 45 percent reduction…. From where? From when? What are our targets going to be? Where are we starting at? Governments in the past and present have been working with industry to already…. We are already ahead of the curve, in a lot of ways, of making sure there are regulations in place and policies for reductions, whether it’s in flaring or fugitive emissions. I would say we’ve been the leader in Canada in a lot of these areas.
We have to really be cognizant of how we will go after companies to try to meet these targets, but I would also follow it up with saying we want to be very careful on how we do the reporting aspect of this. The reason why I flagged that is that there are some activist groups out there that will look at what I’ll call reportable spills in the industry.
Well, we changed regulation years ago, where companies would have to report the small…. Like four litres of oil gets spilled on a rig site, and they have to report that. But without the quantifications there, some groups are actually using that and saying: “Oh my god. This is horrible. Look at all the numbers of spills that are happening out there.” But it’s not being broken down to the legitimacy of what’s actually taking place within the industry and the work — the great work, I’d say — that they’ve been doing. So how that will be reported will be really important.
The other issue that we’ll want to really talk to the minister on later is around what really designates an off-site mitigation zone. To me, that is something…. I know her staff’s aware of this, and I’ll talk to her a little bit further about that later.
When you look at the activity that’s in my area, there are already the sensitivities, as the minister alluded to, around habitat and what we need to be doing as a government, as a society, as individuals and as companies for the protection of habitat, and especially in areas where there are very critical numbers. Obviously, this side of the House supports that completely, but we want to make sure that it’s not a one-size-fits-all kind of approach with this, because there are many different factors that play into what the causes are for habitat growth or reductions. We want to make sure that that’s taken into place.
We’ll dig into a few of these topics as we go into the committee stage. Again, it’s maybe not going to be the headlines, as the minister said, but it is important, nevertheless, that we have these discussions in here. We need a strong resource sector, we need a strong oil and gas sector, and we need to make sure that that’s done properly, with the proper environmental protections in place. That’s a given. We all agree with that.
Back to the point that we need to ensure we have certainty, companies need that. I believe this House needs it. The citizens need it. When we have the bar in place so that people know what they have to meet, it makes it a lot easier for people to decide if they are going to invest in British Columbia or not, if they are going to invest in a certain resource in a certain area or not. They need to have those regulations.
As the minister also alluded to, I think it’s important to highlight the resource sector and what it really does for our province — the amount of income revenue that’s generated into our province to help with our social services, our health care and with our school system. I mean, we’d all agree that every child deserves a chance to soar. That’s going to happen when you actually have a strong resource sector that’s helping fuel a strong economy that gives us the revenue sources that we need.
Again, we’re going to support this bill. There are some critical questions, probably just for clarification, that we want to make sure we bring forward and challenge the minister on a few of these areas — to make sure not only that we’re doing our job in opposition but that from an industry perspective and from a perspective for the Peace region, this isn’t something that will be put into place and will give comfort to the people in that area that this is not going to hinder or slow down activity. It’s just going to make it better and stronger.
With that, hon. Speaker, thank you very much.
S. Furstenau: I’m pleased to rise today and speak to Bill 56, the Oil and Gas Activities Amendment Act. Just to speak to one of the comments from the member for Peace River South. Indeed, we agree very much with him that methane emissions reductions — in fact, reductions of all greenhouse gases — need to be considered by every ministry of government, which we have been reinforcing this week in question period. We do need to recognize the true urgency of this task and the dire implications of not stepping up to meet the serious and significant challenges and threats posed by climate change. Reduction of emissions is essential to that.
Directly speaking to this bill, the bill does two key things. First, it is enabling legislation that allows for off-site mitigation activities to now occur. Under this legislation, the minister will be able to determine if there are special considerations that need to be accommodated and what such offset measures might look like. The bulk of this bill is devoted to this change.
Secondly, the bill includes changes that allow for citizen-initiated investigations to occur if there is a suspected contravention related to methane emissions. I want to speak to some aspects of this bill that I think are warranted. For too long, in my opinion, the Oil and Gas Commission has had widespread authority to do as it sees fit. As a result, I don’t think it has done a particularly good job of regulating the oil and gas industry in our province. It has been shrouded in secrecy, its operations often seemingly clandestine.
In the last seven years, only one news release can be found on its website, and there have been no information letters posted since 2010. I remember a year ago raising questions in question period about the oversight, or the lack of oversight, of earthen dams in the province, many of which were outright breaking the law, while the Oil and Gas Commission seemed to have turned a blind eye.
Critics have repeatedly raised valid concerns of the commission not doing its job. Unauthorized storage dams for fracking, leaking natural gas wells, pipelines approved without proper consultation from First Nations — all concerns that were raised, once again, earlier this year. My confidence and, I believe, the public’s confidence has been eroding steadily in the regulator responsible for B.C.’s oil and gas industry, and the bill before us does little to increase transparency and accountability of the commission.
However, I’m happy to see the provisions that allow for a citizen complaint to trigger an investigation. Unfortunately, it only applies to contraventions that relate to methane emissions, but it is a step in the right direction — a step, I might add, that only exists because the federal government required it in order for our regulations to be equivalent to the Canadian Environmental Protection Act. One day, maybe, we’ll see legislation that broadens this power to any contravention that a citizen records with the oil and gas sector.
With regard to the off-site mitigation activities that this bill will allow for, they are also a potentially good step. They allow for the minister to require that in order to receive a permit or to change a permit, additional environmental mitigation measures may be necessary. At present, there is no authority to direct companies to do offset activities in other places, so this is potentially a good thing. But I must emphasize the word “potentially.”
While the bill does give broad new powers to a minister to direct industry in certain ways in specific circumstances, it is all up to regulations that are essentially to be determined on a case-by-case basis at the will of whatever minister happens to be in charge.
We may see good regulations come out of this, or we may not. We may see good mitigation measures, or we may see greenwashing.
My colleagues and I will support this, as it is a potential step forward and is legislation that helps with our overall pan-Canadian climate framework. But I remain concerned, despite what appears to be steps in the right direction, that the Oil and Gas Commission remains a regulatory body that needs further oversight.
Deputy Speaker: Seeing no further speakers, the minister to close the debate.
Hon. M. Mungall: Thank you very much, hon. Speaker, and I thank the members for their comments.
I look forward to our committee stage, where they’ll be able to ask questions that are, no doubt, very important to be able to get clarification, get further information on the record. That process is very important in terms of making sure that people in the industry, people in the communities that are impacted by the oil and gas sector in our province have a better understanding of exactly the intention behind this bill and how it is to be applied.
With that, hon. Speaker, I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
I did get ahead of myself. I should have been moving second reading of Bill 56. Do we want to do that again, or have we considered that we’ve moved Bill 56 at second reading?
Interjections.
Hon. M. Mungall: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 56, Oil and Gas Activities Amendment Act, 2018, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. M. Mungall: I call that we go to Committee of the Whole for third reading of Bill 51.
Committee of the Whole House
BILL 51 — ENVIRONMENTAL
ASSESSMENT
ACT
(continued)
The House in Committee of the Whole (Section B) on Bill 51; R. Chouhan in the chair.
The committee met at 3:55 p.m.
On section 5 (continued).
J. Rustad: The other day, when we had an opportunity, I’d asked the minister about a definition of “Indigenous nation.” The minister, if I remember correctly, mentioned that Indigenous nation was something that would have to have been referred to out of the Indian Act, so there was no definition provided here.
I want to expand a couple of questions with regards to that directly in section 5(1). The reason for asking these questions about an Indigenous nation and what constitutes an Indigenous nation, of course, is there are often disputes or factions within a nation with regards to any particular position that a nation may have.
Where there is a case where there is a dispute, whether it’s a large or smaller faction within a nation that decides to take some action, how would the minister be able to consider a recommendation that comes from an Indigenous nation without a definition of what constitutes an Indigenous nation?
Hon. G. Heyman: As I’m sure the member is aware, this subsection (1) of section 5 has to do with recommendations of individuals to facilitate disputes. There may be a number of recommendations, which the minister might consider, but in the development of regulations to give life and shape to the dispute resolution process, we may choose to define how to deal with that circumstance. Or should it become necessary at some point in the future, the act does allow for definitions to be created by regulation — should it be necessary.
J. Rustad: To the minister, thanks for that. I do understand the process in terms of making regulations, but the issue at hand and the question at hand is: what’s going to drive those regulations? If there is an Indigenous group that claims to speak for the nation and that may be in a situation that puts forward a recommendation to the minister to create this dispute panel, how is the ministry and how is this act going to be guided in terms of the authority of that coming forward and the ability to be able to create this dispute resolution mechanism?
Hon. G. Heyman: Let me begin by saying — I think the member for Nechako Lakes will know this, having at one point been a minister, a member of cabinet; in fact, at that point, Minister of Aboriginal Relations and Reconciliation — that ministers, at times, will make decisions after considering recommendations from one group or a number of groups.
I think the member’s comments or questions may actually be more pertinent to section 14, which refers to participating Indigenous nations. If I’m incorrect in that, the member will clarify that, but I think here we’re just talking about the appointment of somebody to facilitate the resolution of the dispute, in respect to a matter referred to in subsection (2).
J. Rustad: Certainly, it leads to section 14, and there will be some questions that come forward under section 14. Where I’m trying to drive at with this, in particular, is the case, for example, of Lulu Island. During that case, there was an individual who claimed to speak on behalf of the nation, who claimed to be a hereditary chief, and was regarded as such by some individuals — some individuals in this Legislature as well as others outside. Clearly, there was no way to be able to reconcile that this individual had the authority to be able to speak on behalf of the nation, so that becomes the question mark.
If there’s a dispute between a process and you have an individual or group that claims to be the spokesperson or represent an Indigenous nation, versus other groups that also claim to speak on behalf of the Indigenous nation, without a definition, it’s impossible to be able to determine who is the official spokesperson or spokespeople for a particular Indigenous nation. So it creates the potential issue that the minister is now in a situation where they have to choose which side to believe or which presentation to be brought forward.
This, of course, then becomes a subjective process, as opposed to an objective process, which creates all kinds of challenges, as will be laid out in further sections. This is why I’m asking, once again, to the minister: how will regulations…? How will this minister look to implement this section without having a definition of what an Indigenous nation is and without the ability to determine who is the official spokesperson for a particular nation?
Hon. G. Heyman: It’s a little difficult to anticipate every eventuality or every dispute. It’s a bit like asking me to determine in advance how I might rule on a complicated environmental assessment, for instance, for a project that’s yet to be actually proposed or defined. But what I can talk about is that the purpose of this section is specifically to address the kind of issue that the member raises, where there is a disagreement or a dispute between nations or members within a nation regarding who is representing the Indigenous people.
Let me talk about dispute resolution generally. There are a number of ways in which we might define who might be eligible to be a dispute resolution facilitator through regulation. That might be by having a roster or a list of people that generally have the support of Indigenous peoples and government and potentially others beforehand. Or it might be a number of other ways.
I can say that if the purpose is to find somebody to resolve a dispute between parties — and my experience in this regard is that I have a lot of practical experience from labour disputes — it doesn’t help to resolve a dispute if two parties each have a preferred mediator or dispute resolution facilitator and you choose one of them, rather than somebody that is entirely independent and separate from the preferences of the parties and isn’t one of the people that one of them has put forward at the expense of another.
J. Rustad: Having some experience with dispute negotiations and processes as well, that wasn’t the point to the question. I do understand the challenges and issues.
The issue is, really, that you have something in here called an Indigenous nation — it’s in an act without a definition of it — and multiple parties potentially claiming to be representing an Indigenous nation. The action that a minister must take or may consider comes from a recommendation, if any, of an Indigenous nation. That becomes the challenge.
For example — and I would put this, as well, to the minister — you have a situation where you may have hereditary chiefs asking for one thing and an elected chief asking for another thing. Without a definition as to who represents and who speaks on behalf of an Indigenous nation, once again, the minister is in a situation where it becomes subjective in terms of a particular perspective that’s brought forward.
If that’s the case, that’s fine. Then say that. The minister will actually have to make a decision based on whatever information they have available, I’m sure, with advice from staff. What I’m looking for is the clarity as to whether or not there’s an intent to identify what an Indigenous nation is and who would represent or speak on behalf of that Indigenous nation or whether it will be subjective through this process.
Hon. G. Heyman: I think all I can say to the member is that this section is around the minister considering the recommendations, if any, of an Indigenous nation in order to appoint facilitation or facilitators.
I think the real issue that the member is trying to get at is: who is the correct participating Indigenous nation under section 14, where we’re actually getting to the meat of the issues to do with an assessment? That’s precisely why we have dispute resolution to clarify that: so that we can move forward.
Section 5 approved.
On section 6.
P. Milobar: Just a clarifying question for the minister around this. It really has more to do with existing projects that are currently underway.
I’ve had a few people wondering what this new bill would mean to them. I know, in the briefings, staff made it clear. But maybe just for the record and Hansard, if we could get a recap of what will happen to existing projects that are already in the stream and whether they will be subject to this new act or the existing act, where the changeover piece will be — especially in relation to the timelines of when the new regulations would be coming in — and when that full implementation piece would actually be.
Hon. G. Heyman: Thank you to the member for the question and wanting to get this important question clarified in committee stage.
I can answer it now, or I can answer it when we address section 78. As the member will note, we have a small amendment in section 78 which will provide even greater clarity, I think. But I’m in the hands of the member if he would like me to answer this now or under section 78.
P. Milobar: Well, my fear is, as we get rolling through the afternoon and start to hit a wall of time, we may not actually get to any detail on 78.
Hon. G. Heyman: Well, I think we will, given that there’s an amendment to be moved. But I’ll answer the question now.
This is what section 78 speaks to. Projects that are currently being assessed or have received environmental assessment certificates under the current act will be transitioned to the new act. Any proponent may request that their project be brought into the new act if an application has not yet been submitted.
Projects that have been issued a section 11 or section 14 order under the amendment at the time the new act is brought into force will proceed under the current act. It’s a transitional project for the purposes of obtaining a certificate. Projects that have not received a section 11 or 14 order under the current act will need to submit an initial project description under the new act.
S. Furstenau: Could the minister also speak to how this section, along with section 8, would prevent a proponent from starting any work without an environmental assessment certificate? Could he provide an example of how that would be relevant, for example, with the Prosperity mine saga? Would this apply to that kind of case?
Hon. G. Heyman: Thank you to the member for the question. With respect to the ability to undertake work in the absence of an environmental assessment certificate, whether under section 6 or section 8, both the current act and the new act are clear that work related to a reviewable project cannot be undertaken in the absence of an environmental assessment certificate.
Section 6 approved.
Hon. G. Heyman: May I just clarify my answer to the last question? When I said “work,” I was referring to construction work related to the project.
On section 7.
P. Milobar: A question on (b). I know, I think, what the spirit and intent of this section is.
My concern, I guess, is the difference between what the government may feel is an agreement that may require consent, in terms of an agreement in an area between the government and an Indigenous nation, and what an Indigenous nation may feel, if it’s Crown land — that they automatically are required to provide consent and that, therefore, there would automatically be an agreement with the government that any Crown lands would require some form of consent. Can we get a little more clarification from the minister?
I know the intention of this is supposed to be, if there’s a specified area, that there has already been a prearranged document where the government and the First Nations have said: “For any work to happen in this area, it will require us to work together or consent.” However, there are situations out there where many Indigenous nations do feel that any Crown land would require their approval to do any work. Therefore, they would feel, potentially, that they already have that arrangement with the government. Can we get some clarification there?
Hon. G. Heyman: The answer to the member’s question is that this section refers to an express agreement between the government of the province of British Columbia and an Indigenous nation and is prescribed by the Lieutenant-Governor-in-Council.
E. Ross: Section 7 is a hot topic lately, especially when we’re talking about section 35 of the constitution versus UNDRIP. It’s causing a lot of confusion because a lot of First Nations believe consent equals veto, and that’s continually the push. But in reading certain sections of this, I just want to clarify that we’re talking about an agreement between government and a First Nation that allows the consent. But in other sections, we’re talking about the decision of the minister that can override consent, whether it be in favour of or against the wishes of the First Nation.
My question to the minister is: was there any legal advice given to the minister on whether or not this clause fetters the decision-making powers of the minister or ministers in relation to a consent clause even before there’s, let’s say, a statement of a claim made — or maybe there are terms of reference made on an environmental assessment — or any other agreement, apart from what you’re talking about with the First Nation?
Hon. G. Heyman: Thank you to the member for the question. Other sections of the act — and I’m sure we will get to those — require the process, the office and the minister to make every effort to achieve consent. But it does allow the minister, potentially, in the absence of consent from all participating nations, having made every effort to achieve consent, to issue a certificate or, in some cases, to not issue a certificate because the opposite may be true in the absence of consent.
This clause, however, is, in fact, an override of that and very expressly defines those situations where the minister would not have that discretion. That’s where there is a final agreement or where there is a particular agreement with the government of British Columbia that requires the consent and is prescribed by the Lieutenant-Governor-in-Council.
Whether or not this clause was in here, that would be the case. What this clause does is make it absolutely clear, in this act itself, so there will be no misunderstanding that there is not that leeway for the minister in that situation.
E. Ross: Thank you to the minister for that answer. But best efforts to require consent, whether or not the Crown decides for or against a project, are already there with existing case law.
That’s what the proponents have been doing for the last 16 years. With LNG, for example, that’s what the government has been doing for the last 16 years. They’ve been trying as much as they can to get consent. They do it through protocols. They do it through funding agreements. They do it through environmental agreements. So that’s not the point.
My point is that when you’re talking about the ability of a minister to protect his or her decision-making powers at the end of a process like environment assessment, doesn’t this clause on consent contradict that? Doesn’t that actually get rid of the decision-making power right out of the gates?
Even if you did come up with an agreement that says both parties agree to consent, well, you’ve already basically decided the outcome of the project. That takes away the decision-making power of the minister at the end of the environmental process. The minister is supposed to be making a decision on his own on the merits of the information that’s provided in the environmental assessment, and it’s not supposed to be fettered in any way.
Doesn’t this clause fetter the decision-making power of the minister in that respect? The original question was: did the minister get legal advice before inserting this? My question to the minister.
Hon. G. Heyman: The answer with respect to legal advice is yes, of course — on a continuing basis.
With respect to the member’s comments that best efforts to achieve consent are exactly what’s required now, that is certainly not true. The member may choose to argue with that, but if it were true, there’d be no litigation.
The answer with respect to fettering the minister…. Where there is a final agreement or where there is an agreement ratified by the Lieutenant-Governor-in-Council, that would be a binding agreement. Whether or not this section was in the act at all, that would prescribe the nature of the decision-making that would take place by the minister.
A certificate would still be required. Conditions would still be considered and applied, but the requirement for consent would be defined in a binding agreement. That is exactly what’s described in section 7, binding agreements.
E. Ross: Thank you, Minister. When I was talking about consent that’s already existing, I was talking about LNG, for example or, say, forestry. The forest and range agreements that were developed ten years ago — that was basically consent. That was to get rid of the war of the woods.
With or without this clause, you’re still going to get litigation. With the new environmental assessment, you’re still going to get litigation.
I haven’t really seen, in the last 14 years, a government or a proponent that hasn’t been working for consent. The proof is in the LNG projects already. We’ve got 20 First Nations on board with LNG Canada. We’ve got 17 First Nations for the Chevron project. That’s consent in my mind. That was a cooperative arrangement between three parties: the proponent, First Nations and industry. I don’t know what else you’d call it. In either case, litigations can be present in any type of situation, especially when you’re talking about Aboriginal rights and title versus vague language around UNDRIP, for example.
With that being said, there’s another part of the clause here I wasn’t clear on. I wasn’t quite sure if I got the answer from staff in our briefing. On section 7(b): “in an area….” I’m assuming geographical area — that we’re actually talking about an agreement between the Crown and a First Nation agreeing to the First Nation having consent.
When we’re talking about this, are we talking about geographical areas, both in non-linear and linear projects?
Hon. G. Heyman: I’m not going to presuppose what the nature of a geographic area that would be the subject of an agreement with the Crown might be. But whatever that is, that is what is covered by this section.
S. Furstenau: In this section, is it referring specifically to treaty nations? If so, what about nations that have not signed treaties?
Hon. G. Heyman: Subsection (a) refers specifically to treaty nations, but (b) refers to agreements that are made outside of the treaty process.
Section 7 approved.
On section 8.
S. Furstenau: Actually, this goes back to sections 6 and 8, which work together. Just in terms of the EA process and the other way around, if a proponent has passed the provincial environmental assessment process but not the federal, would work be able to start?
Hon. G. Heyman: Thank you to the member for the opportunity to clarify. This is provincial legislation, so it would apply to provincial certificates and projects that need a certificate from both the federal government and the provincial government. Federal law would apply with respect to whether work could proceed in the absence of a federal certificate.
Section 8 approved.
On section 9.
P. Milobar: I’m seeking further clarification here. It seems to be fairly open-ended for cabinet, on the regulation side, to prescribe what constitutes a reviewable project moving forward, with this new legislation. I say that because there’s a lot of worry with this bill that it’s, in fact, not streamlining any processes, that it’s adding a lot of red tape and that it’s going to add a whole new scope and scale of project that previously had never been required to go through these types of processes before.
So perhaps, contrary to maybe the best of intentions, this section here seems to open the door wide for cabinet to really start to bring projects in under this legislation that otherwise wouldn’t.
I specifically look at 2(a), where: “categorize projects on the basis of size” — so that’s understandable — “production or storage capacity.” Again, that pretty much goes into size. “Timing” is an interesting one. I don’t quite understand why cabinet could decide a project needs to be based on timing.
Does that means only projects in January have to go through this process, but ones in March don’t? Or is it political timing? Is it what timing would possibly come into play that would affect whether a project should be reviewed under the Environmental Assessment Act or not? Given how long these projects go and how much work needs to be done, it can’t be based on weather, when a study needs to be done or anything like that, because that would just flow.
“Geographical location.” Are we saying, then, that if it’s a project in Metro Vancouver, it gets a pass, but if it’s in the Peace country, it’s going to automatically have to go through an environmental review? That’s interesting that the geographical location will be a trigger, potentially, on cabinet’s decision-making on whether or not you need to do this.
“Potential adverse effects.” That’s understandable.
“Type of industry to which the projects are related.” Again, somewhat concerning, given that…. Does that mean that if you’re having a ten-acre wellhead site for oil and gas that that still triggers it, or is it the overall 1,000 wells that may trigger it? That needs a little more clarification, I think.
“Type of proponent.” That’s where it gets more problematic, though. Is that opening the door so that cabinet can say it doesn’t matter what size, what scope, what scale it is at all; if it’s to deal with oil and gas, it must go through this?
[L. Reid in the chair.]
Could we get a little clarification from the minister why cabinet seems to, after this bill has been passed, have the door wide open to it, and for anything else it considers appropriate; to suddenly open the door wide open to any and every project that they deem acceptable to go through this process, including things like geographic location and timing — which, again, make absolutely no sense that I can see?
I’d appreciate an answer to the logic behind this.
Hon. G. Heyman: I think the best answer I can give to the member is to read from section 5 of the current Environmental Assessment Act, which was introduced and passed by a Liberal government in 2002. It’s called “Reviewable projects established by regulation,” and it reads:
“(1) The Lieutenant Governor in Council may make regulations prescribing what constitutes a reviewable project for the purposes of this Act. (2) For the purpose of a regulation under subsection (1), the Lieutenant Governor in Council by regulation may (a) categorize projects according to size, production or storage capacity, timing, geographical location, potential for adverse effects, type of industry to which the projects are related, type of proponent or on any other basis that the Lieutenant Governor in Council considers appropriate, and (b) provide differently for the different categories of projects.”
S. Furstenau: Could the minister explain his expectation and plan for what will be established through regulations in reference to section 9(1) and who he will be consulting with while developing the regulations?
Hon. G. Heyman: I would expect that we would consult broadly, as we did on the act itself, with the same general bodies — Indigenous people, business, local government — with the opportunity for public comment. We would do that over the course of the next year, in preparation for implementation of the act.
S. Furstenau: Could the minister also provide an example of what a “different category” of project might be?
Hon. G. Heyman: I can’t be exhaustive in this list, nor will I attempt to be, because we will be consulting broadly. But let me use as an example…. There might be a category of projects that overall has the likelihood of significantly fewer potential adverse impacts than a different category of projects. In that case, you might want to use different threshold limits for a decision to make it a reviewable project or not. That might be one example.
It might be a difference between categories of projects, although this would also relate, potentially, to a geographic area and an area where there’s a land use plan or an area where there isn’t a land use plan, or an area where there’s a regional assessment or there hasn’t been a regional assessment, or areas that have been more substantially impacted by previous projects than areas that have been less seriously impacted already.
S. Furstenau: Just one more. In terms of this section, I appreciate the need for further consultation and flexibility, but could the minister not speak to the notion that many would think there should be a baseline standard of what constitutes a reviewable project set out in the legislation, which the regulations could then build off?
Hon. G. Heyman: Thank you to the member for the question. I think the breadth of the act is fairly substantial, and it’s meant to be, because we have a broad range of projects that could potentially be reviewable now, and there may be different kinds of projects in the future.
In general, I would say, the baseline is contained in the purposes of the environmental assessment office that are laid out and are further elaborated in the matters that must be considered in every assessment. That is the guiding baseline from which regulations should flow.
Sections 9 and 10 approved.
On section 11.
P. Milobar: I’m just wondering if the minister….
Well done. I hadn’t read that one provision in the previous legislation, on 9. So good job there.
I’m guessing, especially because “Indigenous nation” would not exist in the previous act, that in 11(4), “On receiving an application under subsection (2), the minister must consider the following….” Now, this is if a project is already deemed to not be required to fall under this act and move forward but somebody in the public or a municipality or an Indigenous nation — anyone who feels that it should…. They can appeal to the minister to have it included in, if I’m reading the section correctly.
My question, I guess, is that after receiving the application, “the minister must consider the following….” The first thing the minister must consider is if the applicant is an Indigenous nation, but I don’t see anything that the minister must consider if it’s a municipality or any other type of potential applicant wanting a project to be included. Recognizing full well, obviously, that Indigenous nations do have a voice — and appropriately so — I’m wondering why they would be specifically singled out to automatically have to go into the minister’s decision-making process.
Does this mean that a request by an Indigenous nation winds up having more sway with the minister than if it were a municipality, an NGO, an environmental group or any other of a myriad of possible applicants wanting a specific project to be put under this act?
Hon. G. Heyman: This particular sub, (4)(a), flows from a desire by Indigenous nations to ensure that there was recognition. But it also flows from the purposes of the environmental assessment office, one of which is to advance reconciliation by…. I’ll have to look up the exact wording. Section 2 says: “to support reconciliation with Indigenous peoples in British Columbia by supporting the implementation of the United Nations declaration on the rights of Indigenous peoples.”
Considering whether the applicant is an Indigenous nation flows logically from that, in terms of holding the opinions that would be expressed by Indigenous nations in enough regard to consider whether a second look should be taken as to whether the project should be reviewable.
P. Milobar: Well, as I say, I can understand wanting to work with Indigenous nations and trying to hear their voice in a meaningful way. But this section is all about people or anybody being able to apply to the minister if they feel a project that has been deemed not to be reviewable should be reviewable. The question is: why would the first thing the minister has to consider be whether or not the paperwork was filled out by an Indigenous nation?
Does that not send a signal to everybody that an Indigenous nation making an appeal to have a project reviewable has more clout, more sway, in the process than anyone else that’s entitled to file the same type of paperwork to have a project reviewed?
Hon. G. Heyman: I think it’s important that the member understand that in some cases, you have to read subclauses together. So the first thing that’s considered is whether the applicant is an Indigenous nation. If the answer to that is yes, then consider whether the eligible project may have effects on an Indigenous nation and the rights recognized and affirmed by Section 35 of the Constitution Act, 1982.
But to the member’s point: would people assume that greater regard is being given to Indigenous nations than anyone else? There’s nothing in the act that would give legal standing to that assumption, other than where legal rights actually exist very specifically and where we talk earlier in the act about advancing reconciliation through implementation of UNDRIP.
P. Milobar: Well, when the minister spoke to this bill in second reading, the premise was that this bill was meant to provide greater certainty for industry, greater certainty for Indigenous nations, greater certainty for the public and a streamlined and sped-up process. But in this section….
There’s also, in section 5…. Although the minister is right. You read 4(a), and 4(b) automatically kicks in if the applicant is an Indigenous nation, but (c) and (d) are still around the paperwork that’s been filed, whether it was from an Indigenous nation or not.
The problem is that this is supposed to be a streamlined and sped-up act for people, which seems totally contrary to just about everything else that’s been talked about from the government when it comes to environmental reviews and processes.
In (5), this is saying, essentially, then, that if you combine (4) and (5), and you are an Indigenous nation…. The minister, by way of this section, is saying that in (5), that First Nation, that Indigenous nation, will get an answer back within 30 days.
But what is the mechanism around whether or not the ultimate decision is agreed to by the Indigenous nation? In other words, if the minister says, “No, this is still not a reviewable project,” does that end it right there and then, regardless of who the applicant is? Or is every applicant in the same boat, and they would have to go to ask for a judicial review on something under section 11?
Hon. G. Heyman: I realize that the member and I have different views on the efficacy of this act and whether it will lead to more timely approval of projects and reduced litigation, which we on this side firmly believe and which, apparently, many people in the business community also believe, because they’re eager to work with us on the regulations that will give life to this act so that we can then move forward with actually seeing how it works on projects coming forward in the future. What I’d like to point out to the member is that the current act provides for the minister to designate a….
First of all, the 30-day time limit applies to anyone making an application under this section. Anyone, of course, can apply for judicial review. The act can’t prohibit that. But the current act allows the minister to designate a project as reviewable. It does not require the minister to give reasons for the decision, which this act does. There is no time limit in the current act, as opposed to a 30-day time limit in this act. So I would say that this act goes further to meet the concerns the member is raising than the current act does.
Sections 11 and 12 approved.
On section 13.
P. Milobar: A question, again, on the timelines. My understanding, as part of the new spreadsheet of the timeline, is that this early engagement block is no longer considered under the clock, compared to the existing system. So a nice big chunk of time on the front end suddenly disappears, even though that work still needs to get done and discussions still need to take place.
The question I have is within 13(1). It says that the proponent of a reviewable project may submit, in accordance with the requirements of the assessment officer, the initial project description and an engagement plan and other issues there.
It says it “may submit” as part of the early engagement. What happens to the applicant if they choose not to submit? It doesn’t say they have to; it just says that if they choose to early engage, they can.
Hon. G. Heyman: This process remains proponent-driven, as the existing process does. This is substantially similar because this is the first phase of the application process for a proponent. So it says “may.” The current act says, with respect to applying for an environmental assessment certificate, that the proponent “may apply for an environmental assessment certificate.”
The discretion for the proponent to do that remains the same. But the fact is that for a proponent to proceed with a project, they need a certificate. For them to get a certificate, they have to go through certain phases that are described in the act. What happens if they don’t do that is that there is no process and no certificate. But that’s the same as today.
P. Milobar: Well, today the initial project description and the engagement plan and all that aren’t on the front end the same way as is written in this act. That’s my understanding. This isn’t meant to be a gotcha question. It really isn’t. I personally read this as it was as simple as yet another “may” or “must” wording.
The reason I say that is because it doesn’t say a proponent has to submit the initial project description — they may — or has to submit an engagement plan. It says they may. And my question was: if they don’t do that, it doesn’t say that the project’s dead. It’s silent on that. Does that mean they get to bypass their early engagement process and just file their paperwork? That was really the intent of it. I’ll leave it at that in the interests of time.
Actually, let’s get an answer on that. That’s really the intent of what I’m trying to get at here. It seems to be totally contradictory between (1), where the proponent may have to do something but doesn’t actually have to. Everything else says what will happen once they file. I understand that in this section, but it doesn’t actually say the proponent has to do that to go to the next step.
Hon. G. Heyman: I didn’t intend to avoid the question. The act needs to be read as a whole. Section 6 of the act requires a proponent who wishes to receive a certificate on a reviewable project to go through the steps in the act. If they choose not to go through this step, which is their choice, there will be no other steps, because they can’t avoid a step in the act. That’ll be it.
P. Milobar: Moving on to (5) — specifically 5(b). So 5 is: “Within 90 days of making an order under subsection (3)(a), the chief executive assessment officer must provide a notice to the proponent setting out…(b) the Indigenous nations that are participating Indigenous nations.”
Am I reading this correctly — that the CEAO will be unilaterally deciding, within that 90-day time frame, the strength of claim of Indigenous nations, making the CEAO the sole determiner of who has a strong enough strength of claim that the proponent needs to work with?
Hon. G. Heyman: Thank you to the member for the question. Section 14 actually addresses the process of determining participating Indigenous nations. The notice and decision will be given by the chief executive assessment officer, but the process of that determination is subject to a dispute resolution process.
The chief executive assessment officer, in giving a notice and determination of who is and who is not a participating Indigenous nation, must set out the reasons for the determination. Of course, that’s also subject to judicial review if it hasn’t been resolved through dispute resolution.
P. Milobar: I recognize, again, that the sections interconnect. However, again, under the guise that this is supposed to speed things along, it’s been my experience, in former political jobs, that typically, hard-and-fast days set out to get comment don’t necessarily totally hold up.
You have the chief executive assessment officer needing, within 90 days, to let a proponent know who the participating Indigenous nations are. I wasn’t trying to interconnect the two, but since the minister referenced 14…. However, in 14, those Indigenous nations have 80 days of that 90 days to make comment that they would like to be a participating Indigenous nation, which would mean that that gives ten days — it doesn’t say working days; it says calendar days, so depending on the time of year, that could be a little problematic — for a CEAO to make a final determination to give a list to the proponent.
However, there’s no guarantee that on day 80, all Indigenous nations would have made their positions known, and that on day 85 or on day 92, they say: “No, we would like to be included.” Does that mean that then they would miss the window of the early consultation part that this whole section is supposed to deal with, which was supposed to try to provide some streamline speeding up, given that they are now past that 90-day window and the proponent has been told 90 days is 90 days?
Hon. G. Heyman: Well, again, I think the member and proponents and nations and all of us need to read the act as a whole and this section as a whole. Section 13 sets out a whole process with respect to engagement, to identification of interests — all culminating in the project description.
While the member is theoretically correct, all through that process leading up to the project description, the chief executive assessment officer will have a pretty good idea of who may or may not have any likelihood of identifying themselves as a participating Indigenous nation. Presumably, the proponent will have done the same.
While it’s true that we’ve given lots of time here for an Indigenous nation to express an interest — up to the 80th day after the publication — an expression on the 80th day would essentially be a form of appeal. The chief executive assessment officer will certainly be in possession, as will the proponent, of relevant information. There will then be lots of opportunity for dispute resolution after that point.
If, theoretically, someone comes forward on the 80th day and the chief executive assessment officer has ten days to resolve the issue or make a decision, my presumption is that the chief executive assessment officer will have done what he or she needs to amass a certain amount of information — or the information needed to make a determination — will consider anything else that comes forward and will work very quickly to meet the timeline.
Section 13 approved.
On section 14.
E. Ross: Section 14. Just to follow up on that last statement by the minister, it’s been characterized that this will be a streamlined process and it will actually make everything a lot more efficient with this new environmental assessment. But in dealing with section 35 of the Constitution Act…. When you’re dealing with strength of claim, that is a very expensive, time-consuming process, especially when you’re talking about one or more nations — let alone, say, 20 First Nations.
Some of the case law that we’re actually talking about under section 35 says that you can’t arbitrarily put time limits on Aboriginal rights and title consultation and accommodation. When we’re talking about three or four First Nations that are applying to be participants here, there’s got to be a lot of archaeological and anthropological work, and it’s got to be assessed by somebody.
In this case, I’m assuming it’s going to be the chief executive assessment officer who makes that determination on whether or not that evidence is actually valid. In my experience, no chief executive assessment officer has that ability or expertise to pull that off. It always goes to some assessment by anthropologists or somebody within the justice department to determine whether or not that strength of claim is valid. Then it goes down to…. The idea of consultation is based on how strong that evidence is.
Has the minister taken into consideration how time-consuming it is to determine strength of claim in respect to section 14? Will that fit within the time limits, whether it be 80 days or even the 90 days in terms of the previous section?
Hon. G. Heyman: To give this section some context, it is a section on an activity that takes place before it’s even determined whether an assessment is required. But not withstanding that, the section isn’t about determining strength of claim. It’s about determining a participating Indigenous nation, in the spirit of allowing Indigenous nations to self-identify and to participate in a consensus-seeking opportunity, as well as reconciliation opportunities pursuant to the stated intent of the government and the United Nations declaration on the rights of Indigenous peoples.
What it really says is that the chief executive assessment officer can’t notify an Indigenous nation that they can’t participate in the EA process in a unilateral and unfair manner. What’s happening in this section is that Indigenous nations are invited to file notice and self-identify. A dispute can be addressed with a dispute resolution facilitator.
We’re not determining strength of claim here. There is a high test for the chief executive assessment officer to tell an Indigenous nation that they won’t be afforded participating Indigenous nation opportunities to seek consensus, and that will only take place where there is no reasonable possibility that the nation that has filed notice would actually be affected by the proposed project.
I’m a little confused. On the one hand, the member for Kamloops–North Thompson is saying that the time frame is too long. The member for Skeena is saying it’s too short. And we’re saying, it’s going to be faster, more streamlined and less prone to litigation.
E. Ross: You can imagine my confusion with the whole chapter on Indigenous nations when you’re talking about section 35 of the constitution versus UNDRIP. Subsection 14(2) specifically says the “…executive assessment officer may provide notice to the Indigenous nation that the chief executive assessment officer has determined that there is no reasonable possibility the Indigenous nation or its rights recognized and affirmed by section 35 of the Constitution Act….” It makes no mention of UNDRIP.
When you’re mentioning section 35, you’re actually talking about the case law and the jurisprudence around that. That’s what you’re talking about. Section 35 doesn’t mention UNDRIP. None of the case law that I’ve read, whether it be Delgamuukw or Mikisew Cree or even Haida, mentions UNDRIP.
The answer you just gave actually contradicts section 14(2), unless I’m reading it wrong. If it’s just notice to say, “Your rights and title will not be adversely affected by the project,” there’s got to be a way to assess that. There’s got to be a way to do that, and to do that, you’ve got to look at the evidence. That’s basically another word for strength of claim.
In determining that the rights and title will not be adversely affected by a project, can I ask the minister: how will the chief executive assessment officer make this determination? Will the chief executive assessment officer have specific resources at their disposal to actually make this determination?
Hon. G. Heyman: To the last part of the member’s question, currently, the environmental assessment office has to determine which nations have an interest. The resources exist to make that determination today, and they will continue. So the answer to the member’s question is yes.
The member said that section 14 doesn’t reference UNDRIP, but the purpose of the environmental assessment office references advancing reconciliation by assisting with the implementation of UNDRIP. So that’s an overarching consideration of the office.
Finally, I would say that, again, this is a part of the spirit of reconciliation in UNDRIP, and clear in UNDRIP is the right of Indigenous nations to organize themselves and identify themselves, whether they believe that they have an interest or a right or whether something will negatively impact them. So in reading subsection (2), it’s important to note that the language says: “…there is no reasonable possibility the Indigenous nation or its rights recognized and affirmed by section 35 of the Constitution Act, 1982 will be adversely affected by the project.” It doesn’t say “and”; it says “or.”
It could be read that there is no reasonable possibility the Indigenous nation will be adversely affected by the project whether or not section 35 applies. It’s important to understand that what we’re trying to do here is allow and express in the act the ability of Indigenous nations to say: “We want to be a participating Indigenous nation because we believe there’s a potential impact on us by a project proposal.” It’s the chief executive assessment officer who then determines if that makes sense or if there is, in fact, no reasonable possibility that there could be an impact on the nation or on its rights under section 35 — not and.
E. Ross: Thank you, Minister. I think you just affirmed my point. That’s case law. When the Crown is aware of an action or a decision that’s going to infringe rights and title, the duty to consult and accommodate kicks in. That’s what I’m reading here. But a First Nation has to provide its evidence.
This is a really tricky area, because nobody has been able to determine strength of claim based on evidence yet, except where it’s right smack in the middle of your territory. The problem with strength of claim, and this is what this clause is speaking to, is that there’s going to be a lot of First Nations from all over B.C. that will use this clause, whether they’re down in the southeast of B.C., and they’ll apply to be a part of an environmental assessment in the northwest of B.C. This clause will allow it.
This will have 203 bands being allowed to be participants in an environmental assessment because the language says: “All we’ll do is provide you notice that your rights and title will not be affected.” That’s not what the case law says. If you did want to include UNDRIP in this clause and you want that to affect the timelines and you want it to affect section 35, then why didn’t you mention it here? You’re dancing between case law and section 35 of the Constitution Act, where one is fairly defined, especially with the case law, and the other one is undefined.
All I’m trying to get to is…. If we really want to get these First Nations involved to a point where they can provide employment and contracts and provide a better solution for these bills, then we need clear language.
In terms of this section here, when you provide notification and you tell a First Nation there’s no possibility of their rights and title being adversely affected as per section 35 of the constitution…. In terms of timelines, there has to be an appeal of the decision made by the executive assessment officer. And how long would that appeal take in terms of a First Nation getting notice that their rights and title would not be adversely affected by the possibility of a Crown decision?
[R. Chouhan in the chair.]
Hon. G. Heyman: Well, I understand that the member doesn’t support this act, that the member voted against the act and that the member believes that the inclusion of reference to the United Nations declaration on the rights of Indigenous peoples, as a mechanism to support reconciliation, may stand in the way of economic development.
In terms of the point that the member is raising…. The point that the member is raising is subsection (2), which — after supporting reconciliation by allowing Indigenous nations to self-identify — provides a provision to decide, in the unlikely event that 203 Indigenous nations said they wanted to be recognized as participating Indigenous nations, which had a reasonable claim that either their rights or their interests would be impacted by the specific project. That happens today. That will continue to happen. The resources to make that determination are available.
The fact is that there are a number of reasons that an Indigenous nation might want to be a participating Indigenous nation. It might be because of negative impacts on their territory physically, culturally or spiritually. It may also be because they want to ensure that the economic development that happens is one in which they are partners and they share and that conditions on the certificate protect their interests environmentally, socially, culturally and spiritually while still allowing for participation in economic development.
We believe that by providing an open-handed way for nations to identify that they have an interest, that they or their rights would be impacted or that the project proposal is on their territory and that they should participate…. We’re inviting them to come in and identify early so they’re not in a position of fighting a project description in which they have not been consulted, their interests haven’t been adequately addressed and proponents haven’t had the opportunity to design a project around issues that are raised by legitimate participating Indigenous nations.
In the unlikely event that there are a bunch of spurious requests to be considered a participating Indigenous nation, the mechanism exists in subsection (2) for those to be winnowed out. But I don’t expect 203 nations, or even a large number of nations that have no interest whatsoever in the territory or the impacts that would flow from a project, to apply to be participating Indigenous nations. In the event they do, subsection (2) provides a mechanism to address that.
E. Ross: Correction. I did not say I don’t support UNDRIP. I didn’t say that I don’t support any of this stuff. I’m just trying to clarify the difference between something that’s basically defined in case law, especially under section 35 of the constitution, versus something that’s undefined in UNDRIP. I still don’t understand the relationship.
In fact, what I see is playing both sides of the fence here, politically, for the UNDRIP side. But really, you’re sticking to case law, specifically section 35 of the Constitution Act. Everything you’re talking about right now is existing practice. In your previous answer, you just said: “This is just notification that your rights and title will not be adversely affected by section 14.”
Then you’re saying: “But there’s a way to wean them out, if….” Well, that’s the Crown’s duty. That’s the job. That’s what I was getting at: which process will you use? That’s what I was getting at, because it’s clear to me that section 35 is still basically the law that the Crown is going to have to follow at the end of the day.
Now, I understand there are certain aspects of any act, regardless of the issue, that government could use aspects of UNDRIP. But when we’re talking about something as important as this, especially around the timelines and how the Crown is saying that they’re going to speed up the timelines and make them more efficient, I don’t see it with the lack of clarity between the constitution, section 35, versus UNDRIP.
I didn’t read any UNDRIP into this. I was asking specifically about the Constitution Act, section 35, and the pursuant case law. I did not say anything about not supporting UNDRIP or anything like that. Those were your words, Minister, not mine.
Hon. G. Heyman: Chair, I’m not sure there was a new question there.
The Chair: There was no question.
Hon. G. Heyman: Okay. Well, the fact remains that the member voted against the act, and I’ve answered the question the member says I haven’t answered. I’ve said there is an “or” in subsection (2), and both UNDRIP and the spirit of reconciliation and the interests of the nation, as well as their rights and title under the constitution, could be reasons that would be considered by the chief executive assessment officer.
S. Furstenau: A bit more of a procedural question. Section 14 says that within 80 days of the first publication, Indigenous nations may provide notice to the chief executive assessment officer. Could the minister just elaborate a little bit on how Indigenous nations will know that a project description has been published?
Hon. G. Heyman: In section 13, there is a requirement for an engagement plan to be submitted, including a proposal respecting engagement among the proponent, the office, the Indigenous nations, so the Indigenous nations to be engaged would be identified. At that point, the environmental assessment office or the chief executive assessment officer would identify any gaps that the office or the officer believed existed in Indigenous nations who should receive notification. Then, in subsection (4) of section 13, the assessment officer must publish the approved description for 30 days.
S. Furstenau: Just one more question on this section. In 14(2) and (3), could the minister clarify how the chief assessment officer will determine if “there is no reasonable possibility the Indigenous nation or its rights recognized and affirmed…will be adversely affected”? What about the constitutionally recognized right to hunt and fish species that move around? For example, migrating salmon could be impacted by projects that are very far away from the people that may depend on them in a distant location.
Hon. G. Heyman: Well, to the member’s question, in order to meet the purposes of the act, the participating Indigenous nation presumably would indicate why they believed that they were potentially impacted with respect to their right to hunt and fish, even though they may be some distance physically removed. That is, in fact, exactly what happens today. That is considered currently by the executive directors — to be the chief executive assessment officer if this bill passes. That is considered, in fact.
Sections 14 and 15 approved.
On section 16.
S. Furstenau: Section 16(2)(b)(i) states it “will not have a significant adverse environmental, economic, social, cultural or health effect.”
The question is: why is climate change not included in this list? And what would the impact of including climate change in this list be?
Hon. G. Heyman: Section 16 and particularly subsection (2) is about the chief executive assessment officer recommending to the minister that there be an exemption to an assessment. Point (ii) is “serious effects on an Indigenous nation or the rights recognized and affirmed by section 35.”
I think that’s not specifically what the member referenced, but (2)(b)(i) says: “will not have a significant adverse environmental, economic, social, cultural or health effect.” Those are the five broad pillars which are given further clarity in section 25, which lists the matters that must be considered in an environmental assessment. Others can be considered, but certainly, those ones in section 25 must be considered.
For the chief executive assessment officer to suggest to the minister that an exemption should be granted for a project, the chief executive assessment officer would have had to consider, pursuant to (2)(b)(i), all of the matters in 25(2), including greenhouse gas emissions, in order to answer the questions for the minister about whether there is reasonable ground to grant the exemption.
It is implicit and contained, and the recommendation under 16(2)(b)(i) could not be advanced without giving consideration to that.
J. Rustad: Under 16(2)(c)(iii) and (iv), I would like to ask for some clarity around “on the advice of the minister or another minister.” This is to whether or not the project can proceed or will potentially be considered for termination. I’m curious as to why a potential other minister could potentially make some advice with regards to termination of a project.
Hon. G. Heyman: The answer is simply that the Ministry of Environment and Climate Change Strategy and the office aren’t responsible for all the laws and policies in government. Many of them reside in other ministries — for instance, the Ministry of Energy, Mines and Petroleum Resources. So this is a provision that allows another minister, who believes that a project is clearly incompatible with a government policy for which they have responsibility, to direct that advice to the minister and to the chief executive assessment officer.
J. Rustad: Thanks for that. Is it possible, then, that a minister who does not have an area of responsibility — in other words, a statutory decision–maker — for a particular project could potentially give advice as to whether or not a project could be terminated?
Hon. G. Heyman: What is happening in this section is that if a minister believes that a project proposal is incompatible with a government policy, that minister will provide that advice to the chief environmental assessment officer who will then refer the matter to the minister for a decision on whether or not to terminate. But the decision rests with the minister.
J. Rustad: I’m curious about the…. In section 16(2)(c)(iii), it talks about “clearly incompatible with a government policy,” in terms of the recommendation. Is that from existing language, or is that new language that’s been added, in terms of the act?
Hon. G. Heyman: In the existing act, section 21 is entitled “Policy direction from ministers during assessment,” and subsection (3) states: “(3) The minister or ministers providing clarification and direction under this section may also recommend to the ministers responsible for making a decision under section 17 (3) that (a) the assessment being conducted by the executive director be terminated, and (b) an environmental assessment certificate not be issued for the reviewable project that is the subject of the assessment.”
J. Rustad: I wonder if the minister could provide a definition or clarity with regards to government policy.
Hon. G. Heyman: It’s a little difficult. I mean, the word “policy” isn’t defined in the existing act. I think the member and former minister has a pretty clear idea of what government policies are. But let me just give an example. For instance, there is a current and previously existing government policy against uranium mining.
J. Rustad: Thanks for that example. I guess the question is…. When I look at this particular government policy, what I’m concerned about is if a project is put forward in the works and if the government — a particular government, not necessarily this government but a future government — decides that they do not like a project that comes forward, they could potentially create a new government policy with regards to restrictions of the flow of goods or the extraction of materials or resources from the ground. That could potentially happen midway through a project — midway through the assessment — that could be potentially coming forward.
This is why I’m asking for some clarity around government policy: whether it’s something that would have to be done through an order-in-council that’s clearly laid out; whether it’s something, then, that comes forward as more of a direction or goals within a particular administration with regards to what they would like to see or not see within the province of British Columbia.
Hon. G. Heyman: Well, as I assume the member would know from my answer to the previous question, we don’t actually need this act to do that. That power exists under the existing act, with no further definition. What this act actually does is provide a place very early in the process, before the assessment begins, to determine whether or not a particular project would go against government policy and, therefore, the assessment should not proceed.
J. Rustad: I thank the minister for the answer. I’m just curious in terms of time frame. Obviously, as a project enters into an assessment, there’s a desire or there’s a clear understanding as to what could potentially happen or what may not happen in the project — for example, if there is a restriction on a particular resource extraction or other type of activity.
As a project comes forward and enters into an agreement, could that policy change while that’s in that agreement? Or what’s the time frame associated with it?
I think the intent of, certainly, laying things out in clear examples within the Environmental Assessment Act is to show a company a path forward or show a company, perhaps, a path that doesn’t work. My concern is that if something comes forward that suddenly there’s a desire for a change of direction, this gives the opportunity for a change midway as a termination to a project as opposed to having the opportunity to be able to go through a full and thorough process to get to an answer.
Hon. G. Heyman: At the risk of repeating myself — which I’m about to do, because I’ve answered this question — nothing in this act or in the existing act passed by the previous Liberal government prevents the government of the day from enacting a government policy that could be used to terminate a project or a project assessment. It is the case today, and nothing in this act changes that.
Section 16 approved.
On section 17.
S. Furstenau: Section 17(1)(b) says: “Subject to subsection (2), on receiving a referral and recommendation under section 16, the minister may…(b) order that the proponent is exempt from the requirement under section 6 to obtain an environmental assessment certificate for the project….” Could the minister provide an example of when or why the minister would say a proponent is exempt from needing an environmental assessment certificate?
Hon. G. Heyman: The considerations are contained in section 16. Sections 16 (2)(b)(i) and (ii) identify effects on an Indigenous nation or their rights under section 35 as well as: “will not have a significant adverse environmental, economic, social, cultural or health effect….” Those are the five pillars of environmental assessment, which are further elaborated on in the matters that must be considered under section 25.
Sections 17 and 18 approved.
On section 19.
S. Furstenau: Section 19(2)(b)(ii) specifies how it will be decided if a hearing is needed. My question for the minister is: why is there no mention of community-specific hearings in this section? Is that implied?
Hon. G. Heyman: Again, many sections of the act need to be read together. I thank the member for asking this question. Public engagement generally is covered in section 23, which refers specifically to section 19(5), which is on publishing the proposed process order for at least 30 days and inviting comment from the public on the proposed order. But if we look earlier in section 19, hearings are broad and do include community hearings. Again, (b) says: “…setting out the procedures and methods for conducting the assessment, including, without limitation….” Hearings are the subject of (b)(ii), and community hearings are clearly a type of hearing.
S. Furstenau: Thank you to the minister for that answer. We are wondering why there is not a strict requirement in this section in the proposed legislation for comprehensive peer review of the proponent’s evidence and for independent information on a project’s effects.
Hon. G. Heyman: I thank the member for the question because this has been a matter of significant interest in commentary that I have received in my office, as well as discussions with her. If I might suggest that where we can address that very specifically and clearly is in section 21 and section 26. We can certainly address the reasons there.
Sections 19 and 20 approved.
On section 21.
P. Milobar: It seems like just the other day we were talking about Bill 49 and professional reliance, and this section seems to tie right into that. “For every assessment, the chief executive assessment officer must establish a technical advisory committee….” Will that technical advisory committee be required to be made up of professionals under the definitions within Bill 49? If so, will they also have to be part of a roster or not?
Hon. G. Heyman: First of all, 21(3) says: “The chief executive assessment officer must invite participating Indigenous nations to be on a technical advisory committee and may invite any other persons the chief executive assessment officer considers appropriate.” So it’s clearly much broader than members of the five associations contained under Bill 49, the Professional Governance Act.
If we look at section 77(2)(e), it provides that regulations can be made “respecting qualifications of individuals who may serve on the technical advisory committee.” Depending on the nature of the project, the chief executive assessment officer may determine that expertise might be needed from a number of fields. There may be a requirement for expertise in Indigenous knowledge. There might be a requirement for expertise from an anthropologist, for instance.
The purpose of the technical advisory committee is to ensure that expert advice is available; that where necessary, that advice is impartial; that the people providing it contain the qualifications to review materials that are being submitted with respect to the project to be reviewed by the technical advisory committee; and that peer review can take place within that process.
P. Milobar: That answer actually muddies the water somewhat. Again, it wasn’t meant to be a gotcha question on this section. I recognize that, in (3), “participating Indigenous nations to be on a technical advisory committee” makes sense. I know that within their own nation, they’d either have some of the expertise needed or they’d go and hire the expertise they need as a nation if they don’t possess it in-house to be able to do that, just as in the city of Kamloops, we had to hire outside expertise all the time if we didn’t have it in-house. It’s totally understandable that that would happen.
The question, though…. This is a technical advisory committee. When one thinks of a technical advisory committee in relation to a natural resource project that’s going to trigger an environmental assessment, and you layer that with what we just went through with committee stage with Bill 49, which was designed around resource industries, I find it astounding. What was the point of Bill 49 if not to start to create a governing body to make sure there was public confidence, as was the intention of Bill 49, in a process exactly like an environmental assessment?
It was meant, we were told, to provide confidence and ease of access and competency declarations and conflict-of-interest declarations and all of those types of situations so that professionals working on and reviewing natural resource projects, in particular, would give the public confidence that they had the right competencies, that they knew what they were doing and that they weren’t in conflict of interest, be it real or perceived.
Here we jump to the next bill, which is inter-related to Bill 49, I would suggest, in almost any person’s view, except for perhaps the minister. When we get to a technical advisory committee, the minister references anthropology and cultural practices as a technical review.
I think the average person would not view those…. When they hear “technical advisory committee” and “technical reviews,” they would appreciate those reviews need to happen. But in a natural resource environmental assessment process, the technical advisory committee…. One would assume you would actually want people from the engineering field that actually have the competencies and have declared competencies around mining, for example, or the competencies around designing a project for oil and gas.
What was the purpose of Bill 49 if it actually…? There is no requirement under this section. Whether you’re hiring a consultant, hiring an engineer or hiring anyone, they don’t have to actually fall under the Bill 49 legislation. What was the purpose, if we’re hearing that technical advisory committees can be made up with, essentially, whoever the chief executive assessment officer deems appropriate?
I don’t understand why we have a whole other piece of legislation then. Could we get a little more clarity around the qualifications you would actually need to have to be considered a technical adviser on a very technical project, like a massive mine site or a massive oil and gas project?
Hon. G. Heyman: The answer is relatively straightforward. Section 21(1)(b) also requires a review of the proponent’s application under section 27, and the scope of that application is considerably broader than simply technical matters or scientific matters or engineering matters.
In addition, the five pillars of the assessment process are considerably broader than the matters that are typically considered by the members of the five professions governed under Bill 49.
If the chief executive assessment officer requires technical expertise in engineering, in forestry, in biology, in agrology or in the matters governed by the association of technologists and technicians of British Columbia, those people, of course, would have to be registrants, because Bill 49 provides that only registrants have the right to practise in those professions.
If their expertise is required in the process, then they would be covered by Bill 49. If expertise outside those five regulated professions covered by Bill 49 are required, they would be brought in from elsewhere. What wouldn’t happen, for instance, would be finding somebody who calls themselves a biologist to provide scientific biologist information who is not a registrant of the association and governed by the association and by the provisions of Bill 49.
P. Milobar: I note that, in 27, it references the technical advisory committee, but there’s more than just the technical advisory committee contemplated under this bill. There’s a community advisory committee, also referenced in 27.
Let’s say I was looking for a permit to store potential hazardous waste, and I needed a permit for that, one would assume there would be a community advisory committee set up for that to try to hear the concerns of the community. But I think even the community would expect full well that the technical advisory committee would actually have people on it that have the right technical skills to deal with those issues.
Again, the questions I’m asking are very specific to the composition of the technical advisory committee, not all the other committees that would, of course, be set up, as needed, for different skill sets on different things. This is about instilling public confidence is what we’ve told. Bill 49 was about instilling public confidence.
I would suggest if the average person…. If a community that’s facing an industrial waste site being used in their neck of the woods hears that a technical advisory committee has been set up, I think that community would go to the natural assumption that the technical advisory committee actually had people with the skill sets and the scientific and educational backgrounds to deal with it, that there may not be a cobbled-together bunch with some of those skills but also some laypeople mixed in.
Again, why was there no certainty in this section around the technical advisory committee needing to be populated by people that have had to, at a minimum…. Now, I referenced Bill 49 because Bill 49 makes those types of technical people and those skill sets sign competency declarations. But there’s no provision, under section 21 of this bill, that anyone has to sign a competency declaration to be part of a technical advisory group that could very well be deciding the science and the facts behind something like the storage of hazardous material next to a community.
Why was that not put into this, given that this was being drafted at the same time as Bill 49 — both shepherded by the same minister, both overlapping timelines.
[L. Reid in the chair.]
How did the left hand and the right hand in the Environment Ministry not know what was going on with the bill drafting that something fundamental, like a technical advisory committee, has missed to specify that people need to have core competencies to be able to sit on a technical advisory committee?
Hon. G. Heyman: Well, as I bring my left hand and my right hand together to repeat the answer that I gave a moment ago to the member, the scope of section 21 is not simply to advise the chief executive assessment officer and participating Indigenous nations on technical matters.
It is also to review the proponent’s application under section 27. The proponent’s application covers a range of issues, some of which are scientific and technical, all of which need to be reviewed, all of which need to be reviewed by people who are competent and, in the case of professionals who are governed by the associations named in Bill 49, will be registrants of the association and will be required to declare their core competencies.
For other areas of expertise that are needed to provide advice — not decision-making but advice — and peer review of materials, where it’s scientific and technical, people who aren’t governed by Bill 49 will clearly be people with the competencies and knowledge required to advise the environmental assessment process and Indigenous nations with respect to any range of the matters that are potentially covered by the Environmental Assessment Act in section 27.
It may be expert knowledge with respect to Indigenous culture, Indigenous heritage. It may be expert knowledge with respect to community health and potential health effects, which would likely require people with medical background and degrees who aren’t covered by Bill 49 but are covered by other acts.
P. Milobar: Well, not to totally jump to 27 — and I don’t have a lot of questions on other sections, just so the minister knows — but he keeps referencing 27. Yes, in 21(1)(b), it says to review the proponent’s application under 27 is one of the roles of the technical advisory committee. However, in 27, it says: “respecting matters addressed in advice, if any, provided by the technical advisory committee.”
So they’re going to review their own advice that they provided, I guess, in 27, from 21. The “results of the invitation made under paragraph (a)….”
I guess all I’m pointing out with this legislation is that it seems, despite the best efforts and despite the preambles about trying to have this and Bill 49 create an environment where the public has more faith in the transparency and more faith in the technical reviews and the skill sets of people putting these applications together and providing advice and reviewing….
We know that the groups putting the package together for the proponent will have to have those skill sets, under Bill 49, and have those competency declarations and make sure that they have signed conflict-of-interest declarations. But the technical advisory committee reviewing that work won’t.
They might; they could. A few of them may. But the whole committee, the technical committee itself, doesn’t have to. I guess that seems to be problematic to me, as you get into these.
Again, I’ve lived through a very contentious application for several years in my community. I’m pretty confident the House Leader of the Third Party lived through a pretty contentious one in her area for several years. All the good intentions in the world don’t build public confidence if it’s not in black and white — the skill sets required to start putting these reports together and actually reviewing the reports, more importantly, on behalf of the government.
It’s the reviewing piece that the public starts to really lose confidence if they feel that there’s not the appropriate skill sets within government to review the information and that those people haven’t signed, necessarily, conflict-of-interest disclosures and haven’t had to sign competency disclosures, unlike the people that have actually put the report together.
That’s all I’m trying to point out here. I think it’s a gaping omission in terms of trying to meet that test of providing the public some confidence and some comfort. If they feel that that was already a missed mark, this has done nothing to change that, once you get into a heated application. That’s been my experience, and I would be surprised if that doesn’t happen again, unfortunately, as a result of this omission in this legislation.
I’m not sure about the minister referencing section 27, where in section 27 it says the technical advisory committee must advise the technical advisory committee.
Hon. G. Heyman: I’m not sure if there was a question there. But the member is simply wrong. There is no current requirement under the act that the previous government, of the party of which he is a member, enacted — any requirement whatsoever for a technical advisory committee. There is a practice for working groups with no requirements whatsoever about the makeup, all of which is being corrected by this act.
S. Furstenau: Just one question, section (3) of 21: “The chief executive assessment officer must invite participating Indigenous nations to be on a technical advisory committee….” What about a situation where the First Nation or the Indigenous nation is, in fact, the proponent of the project being reviewed?
Hon. G. Heyman: Thank you to the member for the question. The participating Indigenous nation would still be invited to participate on the technical advisory committee, as would a range of others, as we will see when we get further along in the process.
Currently, for instance, the government of British Columbia may be a proponent of a project that requires an environmental assessment. It’s incumbent on the government of British Columbia to ensure that there is a separation between the consideration of the project being proposed and the arm of government that’s proposing it. One would presume that the participating Indigenous nation would wish to do the same, because they’re addressing different interests.
S. Furstenau: Would there not be some concern about a perceived conflict of interest in that? Even if they were, as you say, working from a different arm, the public perception could be one of conflict of interest. How would that be addressed?
Hon. G. Heyman: Thank you, again, to the member for the question. It’s an important and valid point. I would say three things. One is that the technical advisory committee is made up of a broader range of participation than simply the participating Indigenous nations. That is one of the safeguards. But also, section 26 as well as section 77 provide for conditions and regulation-making power with respect to makeup of the committees, and that is a good place to address conflicts of interest that could arise, and that is a good point to bring forward in those consultations for the regulations.
Section 21 approved.
On section 22.
S. Furstenau: Section 22 states: “(1) For an assessment or a class of assessments, the chief executive assessment officer must…” if he or she “considers that there is sufficient community interest in a project, establish one or more community advisory committees….” Could the minister please clarify what constitutes “sufficient community interest” in a project?
Hon. G. Heyman: Thank you, again, to the member for the opportunity to talk about community advisory committees, because there has been significant public interest in the ability to engage.
I would say that the way that we’ve constructed section 22 is that the chief executive assessment officer must establish a community advisory committee if they consider that there is sufficient community interest in the project. We intended, in crafting this, to make it as wide open as possible but not to require a community advisory committee if there simply is no interest.
One of the ways — not the only way — to gauge the level of interest is the early engagement phase, where public comment is invited. I think that if there were no public comment, the chief environmental executive assessment officer may think there may not be sufficient interest for a community advisory committee but would probably also take some other measures to determine if that was a fair assessment, given the early engagement phase.
Again, the intention is to have community advisory committees be the default — but an opportunity not to set one up if there clearly is no interest in the community in having one.
S. Furstenau: Thank you to the minister for that clarification.
Who would be on these committees?
Hon. G. Heyman: Thank you, again, to the member.
It would, first of all, be entirely dependent on the nature of the project and the location of the project. But the intent would be to be expansive, not to constrict participation, and ensure that there’s a wide variety of views.
Let me give some examples, which I don’t mean to be exhaustive. It could be local elected officials. It could be chambers of commerce. It could be parents groups. It could be physicians. It could be the chamber of commerce. It could be a tourism association. It could be a local environmental association.
I’m sure I haven’t covered all the possibilities, but the idea would be to ensure that people who would have an opinion and an interest would have an opportunity to express that.
S. Furstenau: Further to that, the criteria for the size and constitution of the committee — would that fall to the chief executive assessment officer? Or would that be determined in regulation? And how much leeway or flexibility would there be on that?
Hon. G. Heyman: Some further clarity might be given through regulation or policy, but generally speaking, the reason the section says may establish “one or more community advisory committees….”
In some cases, it may be quite possible to include everyone on one committee. In some cases, it may make sense to have a community advisory committee on a particular aspect of a project or aspects of a project. But all of this would be decided in accordance with the purposes of the office, which is, among other things, to facilitate meaningful public participation throughout assessments.
That would be the guiding, overriding principle about how people would be chosen, from where, what size of committee, whether there’s one or more committees. It would be to provide meaningful public participation.
S. Furstenau: This is my last question.
The notion of there being sufficient community interest — and, as the minister pointed out, if there are initial comments at the beginning of the process. My question is: why would the community committees not be established earlier in the process rather than waiting to this point? If there is the sufficient community interest identified at the beginning, I wonder why the community committees wouldn’t be created right at the beginning of the process.
Hon. G. Heyman: Well, one possible answer to the member on this question is that until we get to this point, there isn’t an assessment process going on. Notwithstanding that, it actually isn’t limited. Section 23, public engagement, says, “The chief executive assessment officer may conduct public comment periods in addition to those referred to” in a number of sections. In addition to those, other public comment periods can be established: “…and carry out other public engagement activities in relation to a project.” These could be done at any point in the process.
Section 22 approved.
On section 23.
S. Furstenau: Leading in from the minister’s comments, this section allows for additional comment periods. Could the minister clarify what is expected in terms of default basic engagement on an assessment?
Hon. G. Heyman: Well, the specific default public engagement is set out in the sections that are referenced in (1) and (2).
In addition to that, the purpose, again, as I said of the office — to facilitate meaningful public participation — will lead to the development by the environmental assessment office of a variety of forms of public consultation at different stages of the process. Some of these will mirror what has been the practice over recent years and, particularly, the last couple years. Some of them may be new and evolving over time. But the actual default would be the sections referenced in subsections (1) and (2).
Sections 23 to 25 inclusive approved.
On section 26.
Hon. G. Heyman: I move the amendment to section 26 that is in the possession of the Clerk.
[SECTION 26, by deleting the text shown as struck out and adding the underlined text as shown:
Advice from consultants, and
mediators and experts during assessment
26 (1) The chief executive assessment officer
and, subject to any restrictions imposed by the minister, an assessment body
appointed under section 24 (3) (a) may retain
consultants, and mediators and experts and
set their remuneration and the terms of their retainers.
(2) All or part of the advice and recommendations of
consultants, and mediators and experts
retained under subsection (1) may be reflected in the assessment report and in
any recommendations submitted to the ministers under section
29 (2).]
On the amendment.
The Chair: Did you wish to speak to it?
Hon. G. Heyman: I don’t need to speak to it. Well, I will speak to it. I think the critics for both opposition parties have this.
I want to acknowledge, in moving this amendment, that while a number of concerns have been raised and questions asked by members of the public and interested parties with respect to some aspects of peer review and how information from proponents will be reviewed with respect to environmental assessment…. The House Leader of the Third Party has had a number of discussions with me over the past days, has asked me a number of questions of clarification with respect to how this will work and what our intent in the act is.
Our intent has always been to ensure that there was impartial expert review. But in the course of the conversations with the member, it became apparent that this could be clarified further in the act. That is what this amendment is intended to do.
Amendment approved.
On section 26 as amended.
S. Furstenau: Just questions that I was going to bring up in section 19, but the minister referred to section 26. This does speak to expert evidence, the concerns being that: if evidence is primarily generated by corporate- or industry-hired experts, how can people feel or the community members feel certain that the evidence is indeed reliable in this process?
Hon. G. Heyman: Thank you to the member for the question and the opportunity to further clarify what we’re doing in this section, in addition to what we’re doing in other sections of the act, to ensure the public that there is impartial assessment of the information that goes into making an environmental assessment decision.
Before we get to this point, there is an early engagement period. Key issues are surfaced during the early engagement period, including concerns related to information independence. But the process planning brings together the interests of Indigenous nations, the environmental assessment office, the proponent, community members and others in terms of what information is required and how it will be collected and analyzed.
It was pointed out to me by a friend of mine, who has considerable experience in consulting with Indigenous nations with respect to environmental assessments, that project proponents — in the course of even getting to the point to decide that they have a project to propose that they think is economically viable — have already gathered a lot of information. They also have the resources to gather much of the information and to conduct many of the tests that are required to provide information to inform the process.
That’s fair — that they do that. But what this section does is ensure that the public sees that there is advice from consultants, mediators and experts during the assessment, that the experts are retained and that they will be in a position to provide peer review and independent advice of the material that is collected.
That is clearly the intent of this section, as well as some other sections we’ll get into a little bit later — likely another day.
Noting the hour, I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:50 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of the Whole (Section B), having reported progress, was granted leave to sit again.
Committee of the Whole (Section A), having reported progress, was granted leave to sit again.
Hon. S. Simpson moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until tomorrow morning at 10 a.m.
The House adjourned at 6:52 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of the Whole House
BILL 45 — BUDGET MEASURES
IMPLEMENTATION
(SPECULATION
AND VACANCY TAX) ACT, 2018
(continued)
The House in Committee of the Whole (Section A) on Bill 45; N. Simons in the chair.
The committee met at 2:46 p.m.
On section 15 (continued).
S. Bond: I appreciate the opportunity to be back today. We’re going to start this afternoon with a question from one of our colleagues. It will actually be a touch-back just to one issue that was raised. I know that the minister will understand that, so thank you for that.
D. Clovechok: To the minister: during UBCM, I certainly appreciated the time that you spent with my municipalities and my colleagues from municipal government, talking about the speculation tax. One of the commitments that you made to them was that there was going to be a letter forthcoming that would indicate that there would not be the speculation tax coming into the Kootenay area — Columbia River–Revelstoke and the Kootenays in general. I’m just wondering if that letter has been sent yet.
Hon. C. James: It was a good meeting. Thank you. I appreciated the opportunity. I can check. I don’t know specifically whether the letter has gone out, but I can double-check and get back to you — happy to.
D. Clovechok: To the minister: thank you for that. Once you’ve checked, can we get a report back that the letter has been actually sent or the timing that that letter will be sent?
Hon. C. James: Yes, I’m happy to do that. I think you probably have seen some of the debate and some of the discussion where I made it clear that the areas that are covered are the areas that are in the tax bill.
D. Clovechok: We’re appreciative of that.
Just another quick question. I thank the minister for her indulgence. In the region that I represent — and I’m always proud to stand here representing them — there are unintended economic impacts that have been associated with the rollout of this particular tax. For your indulgence, I need to read into the record a couple of things here.
This was a response from Randy Trapp, who’s the president of Luxury Resorts West Capital Corp., Bighorn Meadows Resort and Sunrise Ridge in Parksville, in answering a potential buyer to whom he explained that this tax doesn’t apply to where we live. This was his comment.
Just to highlight the unintentional impacts here:
“It’s only a matter of time until they do. Why would I spend one single dime in a province that has a tax that penalizes me for patronizing this business and makes a concerted effort to kill the oil and gas business that allows me the income to visit B.C. in the first place?”
This is from Mr. Trapp himself.
“Within 15 days of the announced tax that wasn’t even applicable to our area, we halted construction of a $10 million project. We sat dormant for 60 days, laid off construction crews for that time, and digested the situation. We elected to finish the $2 million phase that was partially constructed. At this time, we wait until the existing units sell before proceeding with any other construction in the Radium Hot Springs area.”
That’s a deficit of an $8 million hole there that could have been invested.
The last one I want to read…. This is from Mr. Trapp:
“As side note, I had a conversation with a prospective purchaser from Edmonton recently. His comment to me was, ‘Why would I buy real estate in a province that has legislation in place specifically designated to drive the value of my investment down?’ He followed with that question, ‘And why on earth would you as a developer want to build anything in a failing market?’”
My question to the minister about these unintended economic impacts is: has your ministry done anything with the assessment of those unintended economic impacts, and are you going to do anything about that?
Hon. C. James: Obviously, as the Finance Minister, and, obviously, as the Finance Ministry, we pay attention to all indicators when it comes to the economy. We pay attention to the modelling that we use to look at the impact of the taxes. We’ve talked a lot about that in the last couple of days, so I won’t repeat it again. But we did a great deal of modelling around the taxes, around the specifics, around the housing market that’s part of our 30-point plan. We’re going to continue to do that, as I’ve committed to the areas that are covered by the speculation tax. But when it comes to the economy in British Columbia, we continue to pay attention to all indicators that are out there.
I’m very proud to say…. I think the member can read the Q1 report. We’ll have a Q2 report coming out shortly. We continue to have a very strong economy in British Columbia. We continue to see great employment numbers. We continue to see our unemployment numbers drop. We continue to see full-time jobs created. We continue to see strong investment in British Columbia. And I’m very proud of that.
D. Clovechok: Thank you for the answer, Minister. Just so I can safely say to Mr. Trapp, then, Minister, your government does have a strategy in place that will address those unintended economic impacts? Just wondering when that might be made public.
Hon. C. James: In fact, the economy continues to be strong. We will be monitoring all the impacts of all of the measures that are impacting British Columbia, whether those are internal, whether those are external, whether they’re Canadian, whether they’re global. We know that in a small, open economy like British Columbia, impacts are not only found here in our province. They’re in fact found across the country and found around the globe. And we’ll continue as part of our work and part of my responsibility as Finance Minister to look at all of those indicators when it comes to building a strong economy in British Columbia that works for everyone.
T. Redies: We’re still on section 15. Article 1102 of the North American Free Trade Agreement states: “Each party shall accord to investments of investors of another party treatment no less favorable than that it accords, in like circumstances, to investments of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation and sale or other disposition of investments.”
Minister, the definition of “investment” under NAFTA includes real estate. Can she tell this House whether this act is NAFTA-compliant? Or is she exposing taxpayers to legal liability?
Hon. C. James: We talked a little bit about legal issues yesterday, but all tax bills are vetted, obviously, by legal counsel. We take a look at all of the issues, and there are no risks from that perspective, no legal issues that are impacted. The foreign buyers tax went through the same process that the previous government first brought in to make sure that it was reviewed, and there are no legal issues.
T. Redies: I’d just like to pursue that a little bit more. The minister has previously stated to media that the intent of this tax was to incentivize the disposition of real estate assets. Subsection 4 of article 1102 of NAFTA states: “For greater certainty, no party may…require an investor of another party, by reason of its nationality, to sell or otherwise dispose of an investment in the territory of the party.” Again, can the minister tell us whether this act is compliant with NAFTA or whether she is exposing taxpayers to a legal liability?
Hon. C. James: I’ve already answered that, but I’ll answer it again. There is no legal liability. We are not exposing taxpayers to any legal liability, and there is no requirement under this tax for people to sell their house.
T. Redies: Is the minister aware of a class action lawsuit that has been launched by Gowlings Canada on behalf of Americans who own vacation property in British Columbia? Does she have any concerns with respect to this lawsuit?
Hon. C. James: I don’t believe it’s been launched yet, but we’ve certainly heard that they’re interested in launching it. I think it’s important to note that the same thing happened with the foreign buyers tax when the previous government introduced the foreign buyers tax. That’s still working its way through. And I imagine if this is launched, government will obviously present their information, as you do.
T. Redies: I think what the minister is saying, despite what she’s answered in the first two questions, is that taxpayers actually could be exposed to a legal cost as a result of this act. Can she confirm that?
Hon. C. James: We have obviously received legal advice, as I’ve already said, took a look at constitutional legal advice as well. We’ve taken the legal advice. As I said, it’s no surprise, just as happened with the foreign buyers tax, that new taxes will sometimes bring these kinds of cases. Legal counsel has been consulted, and they’re fine with our tax.
T. Redies: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership also includes property as a form of investment. It states: “Each party shall accord to covered investments treatment no less favourable than it accords in like circumstances to investments in its territory of its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation and sale or other disposition of investments.”
Again, can this minister tell this House whether this act is compliant with respect to the CPTPP or whether she is exposing taxpayers to a legal liability?
Hon. C. James: I’ve already answered that question. We have taken a look at legal advice, we’ve taken constitutional advice, and there were no concerns raised.
T. Redies: Minister, there has been a substantial revenue reduction from the original announcement of this particular tax, as a result of who pays the highest rate. Yet there seems to have been very little change to the amount of expected revenues. Can she explain why that is the case, and what was the exact cost to government of the change?
Hon. C. James: Again, I think we’ve gone over this, but I’m happy to go over it again if the member feels the need.
As I’ve said, we put the principles out in the February budget. The principles were broad principles. We then did the refinement that was needed. We consulted. We listened to British Columbians and others who gave feedback.
The initial estimate, as I mentioned, was a conservative estimate. We anticipated there would be measures and changes. We anticipated it. Part of the reason we put the broad principles out is that we knew that there would be discussions about the specifics that we were going to use around the credits, around the geography — that those kinds of measures and changes would come in. Then we announced those measures.
The change to the estimate in the budget, as the member knows, is $30 million over two years. That was the change based on the rate change. But because the numbers, as I said, that were put out with the broad principles were very conservative and anticipated the changes, that’s the change that’s been made to the budget.
T. Redies: I was speaking about the initial rates that were put out, which was 2 percent on Canadians outside of British Columbia and foreigners. It’s based on the $30 million over two years. Does that mean that the original expected revenue from non–British Columbian Canadians was $60 million?
Hon. C. James: The member is accurate around the $60 million for the 2 percent. The 2 percent was there for Canadians.
I think what the member isn’t taking into account is the issue of addressing the credits, the value of the house — how we were going to ensure that those were taken into account when it came to addressing British Columbians and Canadians and the differential that was there. That, in fact, was built in.
We knew that there would be a change there. We knew that there would be a change, whether, as I said, it was going to be the value of the property, whether it was going to be geography, whether it was going to be a tax credit of some kind.
Those were pieces that, as the member knows, were worked on after the principles of the tax were out. Those were built in to know that there was going to be a shift there in the budget. That’s why you didn’t see the numbers change.
T. Redies: That’s a little curious to me, because the numbers…. Unless the ministry just threw out a number and are backpedalling their way into that number, it’s hard to understand how you could half the interest rate on 2,000 people and then half it again and not have a significant change. That’s why we looked at it as it had to have been around $60 million if the minister’s numbers subsequent to the 0.5 percent reduction were actually correct.
To follow up on the minister’s final comment, am I right to look at the $60 million…? It would’ve been, essentially, $60 million net the tax credit for the 2,000 non-Canadians…? Sorry, the tax credit was only going to be applied to British Columbians. It was never going to be applied to people outside the province of British Columbia. Is that correct?
The reason why I’m asking, just to be clear, is that that would mean that it would be $60 million flat.
Hon. C. James: Again, I’ll just come back to the principles, because I think that’s the clearest way to go through this again. It’s part of the reason…. The member has heard me say this, repeatedly, since February. In fact, it’s part of my principles, as Finance Minister, that in building a budget, you build in that caution. You build in the caution when it comes to using conservative numbers.
In putting the principles out in this tax, we did use caution. We did use conservative numbers. We knew that there were going to be discussions. We knew there were going to be changes, either through tax credits…. We were either going to keep the rates and look at further tax credits. We were going to look at values of homes. We were going to look at the geographic areas. I’ve talked about this already. We anticipated that there would be changes, and therefore the budget stands.
A question to Columbia River–Revelstoke. The letter was sent on October 30. I can pass that along, but I just wanted to make sure we got it in the record. I was asking to make sure we could follow up on that.
T. Redies: Minister, I actually understand the principles, I’ve heard you repeat them many, many times. What we’re struggling with is your numbers. I must admit I still have some struggle with them, because you just implied that the $60 million that I had put on the record didn’t take into consideration the tax credit. But the tax credit doesn’t apply to non–British Columbian Canadians.
Anyhow, we still have confusion on this side in terms of how you got to the numbers. I guess my question, therefore, since we’ve had some time overnight, is: has the ministry been able to put together the average home values in the different classes of foreigners — non-British Columbian Canadians and Canadians? This is fairly basic math.
Hon. C. James: I think the member, again…. I’ll repeat my answer.
We looked at the principles. We finalized the tax credit for British Columbians. There is a credit, related to foreign owners, as well. That was another, additional piece that’s in there. It’s related to the tax that they pay in British Columbia. That, again, was another piece that was adjusted when it came to the March announcement that came out. That, obviously, had an impact as well.
As I said, because of the conservative numbers that were there, the member knows the change of the estimate of $30 million over two years. On the housing credits, we’ve been here doing this bill, and the staff has been working on the bill, so we’ll get the numbers when we’re able.
Section 15 approved.
The Chair: The committee will now stand in recess.
The committee recessed from 3:13 p.m. to 3:25 p.m.
[N. Simons in the chair.]
On section 16.
Hon. C. James: I move the amendment to section 16 standing in my name on the order paper:
[SECTION 16 (1), by deleting the text shown as struck out and adding the underlined text as shown:
16 (1) For the purposes of section 14, a tax rate of
1%0.5% is applicable for a calendar year to an owner
of a residential property to whom this subsection applies unless section
17 (1) applies to the owner for the calendar year.]
On the amendment.
The Chair: The member for Oak Bay–Gordon Head.
A. Weaver: Thank you, hon. Chair, for the enthusiasm in the introduction of me speaking in favour of this amendment. Obviously, I welcome it. It was one of the amendments that we brought forward. When I say brought forward, of course, it was introduced by government, because it had to be introduced by government.
Many, many Canadians who own property in B.C. wrote to me feeling saddened and, frankly, disheartened about the unequal treatment that they were facing under the previous rate design of the tax, the 2 percent rate as opposed to a 0.5 percent rate which would have been applied just to British Columbians — recognizing, of course, there was a transition to the 2 percent rate.
Even if they were willing to pay the tax…. Some wrote and said they were willing to pay the speculation tax because they recognized that there was an externality that they were willing to internalize, to pay a little bit. But they felt that they were being discriminated against. Some were covered by the exemptions, but they still wrote to me and said that they just didn’t feel this was right.
One specific person said: “This tax splits the people of Canada into multiple classes and does not recognize the federal system and the equality of all people in Canada.”
Another wrote to me and said: “I’ve paid my fair share of taxes over my lifetime, the very same taxes that were used, from federal infrastructure moneys, to pay for highways, hospitals and other civic projects here in B.C. How can you, as a member of” — I’m not a member of government. This person thought I was a member of government; I think they meant as an MLA — “that I am different from B.C., Canadian people and, as such, be treated unfairly, differently and be discriminated against just because I do not, at this time, officially live in B.C.?”
Obviously, I agreed with them. I felt it was one of the issues that…. I know, frankly, the minister was not very comfortable in changing this. I do recognize that the minister was quite adamant that the minister wanted to ensure that British Columbians were treated differently.
I’m grateful that we were able to come to a position where the rate has been made to be equal for all Canadians, treating all Canadians the same, with the same half-percent rate. We are one country. I believe it’s important, from the fairness perspective, that we are not penalizing Canadians by making them pay a higher tax rate than British Columbians pay.
With that said, I recognize that the official opposition does not support this bill. I’m not sure where they’ll be on this particular amendment. I would hope they would support this amendment, recognizing that, in essence…. They do not support this bill, but at least, with this amendment, we’re treating Canadians, collectively, as one.
S. Bond: Despite the Leader of the Third Party’s wishful thinking, we won’t be supporting the amendment. I think, from our perspective, the problem with the bill is exactly what the Leader of the Third Party just articulated. The bill targets British Columbians and Canadians, and that is not what legitimate speculation is about.
I’ve heard lots of commentary from members of the government saying: “Yes, when we poll on the speculation tax, it’s incredibly popular.” Of course it is, because when you name a tax the speculation tax, most people believe you’d be taxing legitimate speculators — in particular, offshore money. So clever title, but incorrect and unfair bill.
We are not going to support the reduction. I’m sure there will be all kinds of tweets in social media later about how we didn’t support a reduction for Canadians. The challenge is: we don’t support the tax at all when the majority of people impacted are British Columbians, and Canadians are included in that.
The Leader of the Third Party and I have agreed on things from time to time. We don’t agree on this. I do agree with the quote that he provided previously, though, and I’m happy to share it. I know he’s smiling. He will love to hear it.
Here’s what he said before he managed to negotiate a reduction but not the elimination: “Why is it that the government is targeting fellow Canadians? Why is it not recognizing that the problem is not people from Prince Edward Island or Saskatchewan, the problem is offshore money, bypassing due process in normal channels, flowing into our real estate sector?”
While the minister today has agreed with the Leader of the Third Party to stand up and say, “Okay, let’s reduce it; let’s charge the speculation tax equally on British Columbians and Canadians,” they’re still missing the mark.
I am positive that there are Canadians and British Columbians — we’ve heard compelling stories from many of my colleagues — who don’t and are not speculators. They’re captured in this tax. They are the majority of the people being taxed. You can imagine their shock and horror when they realized…. When the government polls about, “Do you like a speculation tax?” the answer is, “Of course, we do,” except it turned out to be them.
I understand that there was a negotiation. Certainly, the leader of the Green Party will claim credit for that reduction, and rightly so. What we’re not prepared to do is support, from our perspective, a bill that is, from an overall perspective, unfair. It targets the wrong people. While a reduction might be nice so that the pain is felt equally by British Columbians and Canadians, the fact of the matter is that they should not be the target of the speculation tax.
Sadly, I’m sure, from the Leader of the Third Party’s perspective, we’re not going to support the amendment. In fact, it’s another opportunity. Even though there was some negotiation and there was a reduction, the fact of the matter is, British Columbians and Canadians should not be targeted.
We don’t believe that…. This is a tweak, and it does not alter the inherently unfair tax that this is. We intend to continue to speak on behalf of British Columbians and Canadians who are unfairly impacted, so my colleagues and I will be voting against the amendment.
S. Thomson: I just want to support the comments made by my colleague from Prince George–Valemount. I won’t be supporting the amendment either.
To me, this is about the principle, which has been so eloquently articulated here, of the imposition of this tax — period. I think we’ve heard and had the stories of so many people that have, through this process, been labelled speculators — people who have spent their lifetimes building a plan for retirement, a plan for their children, a plan for their kids, all of these stories.
To me, it’s a little bit like if you’re going to be called a speculator, it doesn’t matter whether you’re called a speculator at 2 percent or at 1 percent or at 0.5 percent. You’re still being labelled, and the whole imposition of this tax is ill-advised and misdirected.
We provided opportunities to have municipalities opted out. We voted against the imposition of the tax, appealing to the fairness of the minister. Regrettably, those amendments were not supported, so I just can’t support it, even though I recognize that, for out of province, this results in a reduction of the impact. But to still be called a speculator whether you’re at 1 percent or half a percent…. I don’t see, in principle, the difference here, so I won’t be supporting the amendment.
The Chair: Member for Kelowna West.
B. Stewart: This has been debated, I’m sure, a lot in the minister’s office with her staff. I know that other options were proposed to the minister and the ministry staff, looking at….
I mean, obviously, the outside people like the city of West Kelowna were extremely disappointed that their efforts to try to provide a financial model that really did target speculators was not necessarily what was considered.
This is really a tax that’s affecting many people that unfortunately, even with the exemptions, will not be exempt — seniors that maybe have a second home that will not be able to afford to pay this tax and many other people. This has actually just stopped them, in terms of whether it’s a planned retirement or other investments here.
Generally, from what I have seen around the province, the communities that are impacted by this tax, taxing British Columbians, as well as Canadians, is not something that I think is what we should be doing to prevent real speculators, people that are flipping this.
I think the title does do exactly what the member for Prince George–Valemount said. It’s a very catchy phrase, and people, of course, like that. But the bottom line is that that’s not what it is. This is penalizing people that want to invest here, create jobs….
Now, what’s happening in my community — and, I’m sure, many others — is the fact that we have hard-working British Columbia tradespeople that are finding that the runway has run out on new home construction. New home construction has dropped by almost 50 percent in Kelowna and West Kelowna. The fact is that I know it’s down across the rest of the province. That doesn’t seem to sync up with the economic growth and the opportunities and the endless number of jobs that the minister speaks of.
That is why we will not be able to support this. This tax is a job-killer, and the bottom line is that it’s hurting seniors in our communities with an unfair tax burden that they cannot necessarily exit under the exclusion.
T. Redies: As my colleagues have said, I will also not be supporting this amendment. I agree with everything that my colleagues have said. I would also like to point out a couple of other things.
First off, the number of seniors and retirees that I’ve received letters from who…. This is upsetting their retirement plans. It’s almost heartbreaking listening to these peoples’ stories about how they can’t afford to pay the extra $2,000 or $3,000 a year in taxes. At this stage of their lives, they never, ever expected to be in this situation just for making that decision to invest in a home in B.C.
What’s going to happen for a lot of these people is that they’re going to have to sell the homes, and they’ll be selling in a down market. I think the government really needs to think about this, because they are definitely impacting a lot of peoples’ lives.
I’d also like to point out that the treatment, actually, is still not equal between Canadians and British Columbians, because British Columbians get a tax credit, while other Canadians don’t. So it is not equal.
The other thing that I find…. You know, for all the people and the loss of business investment…. We’ve raised this in this House — that at least $1 billion in business investment has been lost as a result of this tax.
When I look at the numbers, based on what we’ve been trying to gather from the minister over the last couple of days, $110 million is coming from 10,000 foreigners. We found out that there are 2,000 satellite families, so I’m going to assume they’re paying the same average of $11,000. That is $22 million. That would be $132 million of the total tax, which means that the balance of the tax is less than 1 percent of the total budget.
Why the government would do this — basically, sewer B.C.’s reputation as a place to invest, create havoc amongst people’s retirement plans and just create a situation here where jobs will be lost and people’s retirement savings will be lost…. Frankly, I don’t understand it, when they could actually use the tax to tax foreigners and satellite families.
They’re getting a significant amount of income from that alone, so why pick on Canadians? Why take on hard-working British Columbians, people who have paid income tax all their lives and are now being forced to pay another tax with after-tax money. It just doesn’t make sense to me, so I will be voting against the amendment.
A. Weaver: I just wanted to thank the members from the official opposition for their comments. I only wanted to address a couple, early on.
I thank the member for Prince George–Valemount for reading in the quote. That quote is precisely the reason why we felt it was important to address this issue.
I understand that this is not what we would have done. But I recognize that this is an attempt to deal with the issue of vacancy. Members in the official opposition have talked about speculation. I do note that the title of this bill is speculation and vacancy tax. I agree with the members that, initially, when it was talked about only as a speculation tax, it was a tax that taxed “somebody else other than me,” and it was widely accepted.
However, I do also accept government’s argument that there is a social externality that occurs when you leave, in high-density urban areas, your tax vacancy, which needs to be internalized. The way this is being proposed by government is to do it for everybody at slightly different rates.
We felt that Canadians should be treated the same in terms of the rate. We recognize that there’s a $400,000 exemption, but I want to put it in perspective. The rate was 2 percent — once it’s scaled up. Let’s take 2 percent on a $1 million house, just because it’s easy to do those calculations — 2 percent of $1 million. Well, 10 percent of $1 million is $100,000 and 2 percent of $1 million — $20,000 a year. That would have been for a person living in Alberta — $20,000 a year as a speculation tax.
What is it now? It’s $5,000. I think $20,000 to $5,000 is a big difference. It’s an enormous difference in terms of making a difference to make a decision whether you’ll keep your house.
I have spoken to people from other areas of the country who don’t mind actually having this, paying a little bit, the internalization of their social costs, recognizing that right now — this could change down the road — there is an affordability issue. There’s an affordability issue, and they feel that they’re paying their share to actually address that. If they’re leaving their home vacant…. They could build a secondary suite in their home, and they could rent that secondary suite out, and their whole property is exempted. So there are many ways that they can address this.
Now, I recognize…. I understand where the official opposition is coming from. You’re not going to be seeing me doing this on Twitter later tonight. I’m not interested. I might actually tweet about the previous vote on ride-hailing, because I was tweeted by the leader of your party suggesting that he had some amendments that you’re going to bring in. But you can’t bring in amendments if you vote against something at second reading. That, to me, is particularly newsworthy, but this is not.
I do appreciate where the official opposition is coming from. Obviously, I support it. I’ve just tried to put on record the rationale for getting where we are today.
Hon. C. James: I rise to speak in support of the amendment. I think that will be no surprise to anyone in this room. But there are a few things that I do want to say after some of the comments that have been made. I heard the word “havoc” used to describe the situation we’re in. Well, in fact, the housing crisis is the havoc in the situation that we’re in. That’s why we’re moving ahead with the 30-point plan, and this is one part of the 30-point plan.
When we take a look at the homelessness crisis, that is causing challenges to our economy. The members have used a number of comments around building, and again, it’s important to note that if a builder is building housing for people who are going live in it, they don’t pay the tax. It’s that plain and simple.
Year-to-date housing starts. I think, again, I’d like to read those into the record. Year-to-date housing starts from Statistics Canada are 33 percent above the ten-year average. The value of B.C. residential building permits is up 17 percent so far this year. In Vancouver, they’re 21 percent above the ten-year average. We continue to see a very strong economic situation in British Columbia.
It is important to note, again, that 99 percent of British Columbians will not pay this tax. This tax will take a look at targeting speculation and vacancy, people who leave their places vacant. They can avoid paying the tax by renting their place out, by providing that opportunity. It also targets foreign owners. It also targets satellite families, and it targets people, yes, who use the housing market simply as a stock market, who buy places and leave them empty, and hollow out neighbourhoods.
Just as the members talk about stories, I can tell you stories, including, most recently, last night, when I met someone who talked about what it’s like to live in an apartment building, a condo building with a number of the condos completely empty, and what that does to a community when those places are left vacant. Someone bought it because they’re waiting for the price to go up, and that’s what they’re using the market for. Well, housing should be used for housing. It should be used for communities. It should be used to provide opportunities for people who are living and working in British Columbia. So I think it’s important to note that.
I just want to touch on…. The Leader of the Third Party mentioned the discussions that we had around this tax, and he is quite right. We did not agree with this change.
This is not something that we agreed on. In fact, we felt that having the varied rate reflected the income tax that people were paying and the contribution they were making. But again, that is part of working together. That is part of looking at how to move ahead on the principles that were important to us.
The principles that are important to us are to address affordable housing and to actually make sure that we’ve provided opportunities for affordable housing. We may have differing opinions around how we get there — and I think that’s very clear — but we agreed on the principles, and the principles are important to us, and that’s why we’re moving ahead. So I speak in support of the amendment.
The Chair: Shall the amendment…? Oh, does the member still want…?
A. Weaver: I’m so sorry. I don’t mean to filibuster this, but there was one important point that I meant to address, to add to the issue that I raised. One aspect that was covered with this, in a specific reference to people who contacted me from other parts of Canada, is that the money now is required to be spent in the region that it comes from on affordable housing issues.
That, too, is reflected in some of the amendments that will be brought forward later. So any money that is actually collected from West Kelowna is not going to go to Vancouver. It’s going back into West Kelowna for affordable housing initiatives. That is an amendment we’ll discuss later, but that was also part of this idea of internalizing an externality, the externality being the social cost that arises when you keep your properties vacant.
The Chair: Members, the question is on the amendment to section 16 of Bill 45.
Amendment approved on the following division:
YEAS — 9 | ||
Brar | Donaldson | Routledge |
Singh | James | Ralston |
Fleming | Conroy | Furstenau |
NAYS — 8 | ||
Coleman | Wat | Thornthwaite |
Isaacs | Morris | Ross |
Tegart |
| Gibson |
On section 16 as amended.
T. Redies: Before the break on section 15…. I just want to clarify because it pertains to some questions I have in this particular section. When the tax was first articulated, there were 2,000 non–British Columbian Canadians who, at 2 percent, were going to pay $60 million in revenue. Is that correct?
Hon. C. James: I think the information that the member is presuming is that those were fixed numbers in the budget as introduced. The budget number was a total number. Then we knew that there would be changes, and therefore, the adjustments were made. So I think that’s where the member….
The member’s calculation is correct if that’s the number and if you were going with 2 percent. But remember there weren’t tax credits designed at that stage. Those were still pieces to come, and that’s the decision that was made in March.
T. Redies: Maybe I’ll just verify. What I heard was the minister indicated that the $60 million was correct in terms of the calculation. Is that…?
Hon. C. James: The member has her calculation correct. But what I’m saying is that the budget was a whole, and therefore, the decisions were made on the whole budget.
T. Redies: This is where we’re going with the average values, because again, as you start to try and look at how this was allocated across, or how the numbers were come up with…. Again, we’ve never really got a very solid answer from the minister as to where the $200 million originally came from anyways. In fact, actually, it’d make everybody’s lives much easier if the minister would really break it down, the calculations, and then we’d stop asking all of these questions.
But if it was $60 million and it was 2,000 people that were going to be paying that $60 million, at 2 percent, that would imply that the average value of the house would be $1.5 million. Again, the minister said that her and her team looked at the different regions, the different house values, etc.
I guess, from our perspective, $1½ million seems to be quite high for an average value for 2,000 Canadians. If it is that number, does the minister really consider that to be affordable housing that could be rented out to British Columbians who are looking for affordable housing?
Hon. C. James: I think I’ll come back again to the response I gave in the last question, because I think it is part of the challenge — that the member is trying to look at each individual piece in the budget rather than the budget for this tax as a whole. That’s the puts and takes that occurred. When you develop the budget, you use estimates.
As I mentioned, we used average home sales. We used those numbers. We used the numbers, as I mentioned, that we had around the number of Canadians, the number of British Columbians, the number of satellite families, the number of foreign investors.
We used very conservative numbers because, as I mentioned before, the information that we will start to gather will give us firmer numbers on the tax. So we went very conservatively on the numbers to ensure that we were being prudent when it came to the budget. That gave us the numbers that were there.
T. Redies: I feel like I’m in Groundhog Day, and I’m sure maybe the minister feels like that too.
The minister just said that they used average home sales. What we’re trying to get to is: how did you come up with the $200 million? How, specifically, did the minister and her ministry come up with the $200 million? That is what we’re trying to get at.
I wouldn’t use this with the minister, but there certainly seems to be a bit of dodging of coming up with the specific calculations. That’s all we’re asking for. I think British Columbians have a right to know as to how these numbers were arrived at — not some sort of broad number that was just thrown up on a board and now we’re kind of backtracking, trying to figure out how to make that number work.
Why can’t the minister just say how many…? You’ve given us the numbers of Canadians, non-Canadians, satellite families affected. Tell us what the revenues are, and then tell us what the average tax paid is going to be and what the average home value is.
Hon. C. James: Again, I’ll come back, for the member. We’ve already talked about the number of Canadians, the number of British Columbians, the number of satellite families that we used as an estimate. We’ve already run through those numbers. I’ve talked about the average home prices. I’ve talked about the number of houses. I’ve talked about the adjustment made with the change that we just passed in the amendment. So those numbers are there.
We’ll provide the average home prices, although they’re already out there. It’s already public information, but we’re happy to provide that information as well and to say, again, that the budget was looked at as a whole. We looked at the budget as a whole for this tax. We looked, anticipating that there were going to be changes. So we used estimates in each of these areas, anticipating that there were going to be changes, based on the discussion that occurred after the principles of the tax were put out.
T. Redies: Thank you, Minister, for your answer. I guess I’m going to move on.
With the changes that the minister has made, effectively it appears that non–British Columbian Canadians who have B.C. income will not be able to use that as a credit against any tax that they are paying on secondary homes in B.C. Can the minister please confirm that and why they made that decision?
Hon. C. James: I was just making sure we had the numbers. The member is right that non–British Columbian Canadians don’t get the tax credit. But, as the member knows, the rate has been changed to 0.5, so it matches British Columbians. They don’t get the same $400,000 deduction or credit as British Columbians do. Again, that’s an additional support for British Columbians.
T. Redies: Just a question with respect to some of the homes that are now impacted by these taxes. In some cases, we’re talking about homes that are worth several million dollars.
Does the minister expect people who own, say, $3 million or $4 million homes to rent them out? And if they can’t rent them for the market value — for a $3 million or $4 million home, it’s probably $5,000 or $6,000 a month, so there are not that many people that can rent a property at that rate — does the minister expect people to rent their properties at below market rate to create affordable housing?
Hon. C. James: I wouldn’t presume to tell someone one way or the other, but the bill allows for people to not pay the speculation and vacancy tax if they rent their property out for six months. That is part of the bill, and that’s the choice that the owner of a vacant property can decide to make.
T. Redies: But the reality is that if you are looking at a home that’s worth several million dollars and trying to rent it out, essentially, that might be very problematic. So is the minister…? I mean, just honestly, is this really not a vacancy tax? It’s really just a wealth tax to attack those people with properties that they have bought for vacation or retirement purposes, an asset tax, and it really has nothing to do with creating affordable housing at all.
Hon. C. James: I’ve already answered that question.
Section 16 as amended approved on division.
On section 17.
S. Bond: Just a couple of questions here. Can the minister confirm that not all British Columbians will be afforded the lowest tax rate if they’re found to have more than 50 percent of their income as foreign income?
Hon. C. James: The member is talking about satellite families, and satellite families do not get the 0.5 percent.
S. Bond: Has the minister or the ministry assessed the impact that this is going to have on dual citizens?
Hon. C. James: I know we had a bit of a discussion around this yesterday. The U.S. is unique in that…. Well, it’s different than many other countries, where you have to actually report your income, regardless of where it’s earned, in the U.S. That doesn’t change if you’re a dual citizen. If you’re a resident here in B.C. and you’re a dual citizen, you’re living and working here, the issue is where you report your income. If you report your income, you would report your income in British Columbia that you earned while you were living here.
Section 17 approved.
On section 18.
S. Bond: Again, just a couple of questions. This section is entitled “Tax rate applicable if no declaration filed.” All of us have certainly seen the challenges that we’re facing with the PR referendum that is going on, with people actually not knowing what to do or throwing out their ballots. We have the same concerns about people being fully informed about this tax. We had that discussion yesterday.
Can the minister explain what exactly is going to happen should this bill pass? How on earth are they going to ensure that people are fully made aware of the tax and that they are aware of their responsibility to complete a declaration?
Hon. C. James: I think we talked a little bit about the rollout of the notices yesterday, but just to go through it again — obviously, we use B.C. Assessment — people will receive their notices at the end of January. We will, as a ministry, collect all of the returned mail. For example, if someone’s address changes or they didn’t update their address on the assessment roll, we’ll be collecting the returned mail, and we’ll be checking to find the correct address and send it out. People will then have the opportunity, as I’ve talked about, to go on line to do their self-declaration, to send that in.
Then, because of the newness of this tax, we’ve also wanted to build in some fairness there, so they actually have up to three years to submit a late declaration. If there is a problem or an issue, they have up to three years to put that in. There’s actually no late penalty for the first two years of the tax as well — again, to give people that opportunity. If they’re late because something occurred, they’ve got two years where there’s no late penalty in the first two years of the tax as well. Both of those pieces are built in.
S. Bond: Does the minister plan to do any advertising related to the implementation of the tax?
Hon. C. James: I don’t have the communications plan in front of me, so I don’t know the specifics, but yes, we’ll be looking at making sure that that information goes out, that the website is up, that we’ve given information out there through communications to make sure that people are aware of it.
Again, we have the Vancouver experience of the vacancy tax and the notices that went out for the vacancy tax. They actually had over a 90 percent response back — a very high response when it comes to people doing their declarations. That’s a good sign, from my perspective.
A. Weaver: One of the concerns I have with this section is that inadvertently, government is going to be receiving an awful lot of cheques from people who don’t realize why they’re sending in the cheques. They are confused by the bills and notifications they get. They don’t understand the system. What is the plan for government when they start receiving these cheques? There will be cheques from people who don’t understand the way this tax works.
Hon. C. James: I think we’ve built in as many pieces as we can. I think if the individual hasn’t gone on and done their declaration, for example, so that therefore they get a bill without any information, the bill will actually contain a notice to say: “You didn’t do a declaration. Here’s the information to be able to do a declaration.” They’ll actually get another reminder that will come with the bill. We believe that that’ll cut down on the number of people who may have missed the first notice and who didn’t get their information in.
Obviously, if a cheque arrives, it has to…. As happens with the ministry, if cheques arrive, they obviously have to be looked at with the account. If there’s a problem, that money gets sent back. But we think we’ve taken care of that through, as I said, the self-declaration and then a notice coming about the declaration with the tax bill as well.
A. Weaver: Again, I just want to be, for clarity purposes…. If it’s an on-line declaration, there are many people — I have personal experience with this with my in-laws — who don’t use the Internet and would not be able to do such a declaration.
I’m assuming that the declaration is very similar to the homeowner grant, which people understand, where you tick the box: “Yes. It’s my primary residence.” Is that the intent — that the declaration will be similar to the homeowner grant? If not, what is the government’s intent for paper versions?
Hon. C. James: As I said, I think we’ve covered all the bases. There will be paper copies if people want to do that. There will be a phone number, as well, so people will have the opportunity to do it through phone if they’re not able to do it on line.
Yes, the member is correct. It’ll be very similar. “Is this your primary residence?” Check it off, then you move on. You’re done. Provide the information you need to provide, and then you’re done. We’ve worked really hard to make sure that it’s a very straightforward process.
Section 18 approved.
On section 19.
S. Bond: Can the minister confirm that all of the exemptions that are listed related to the speculation tax are all listed on the website?
Hon. C. James: I wanted to make sure that I had the right answer. The answer is yes. All the exemptions listed in the bill are on the website.
S. Bond: Can the minister tell us if the government is contemplating any further exemptions to the tax? And if so, what kind of assessment will be used to decide whether or not there are additional exemptions?
Hon. C. James: Yes, there are regulation-making powers, as the member will know from going through the bill, to add other exemptions for extenuating circumstances. It’s pretty routine, again, in tax bills, to give that opportunity for those kinds of circumstances that may arise.
Obviously, the circumstances that we thought of that we feel are reasonable we’ve included in the bill. But I think the regulation provides that opportunity if there is something that arises that is an extenuating circumstance.
S. Bond: One of the things we have heard — I’m sure the minister has heard it too — in literally hundreds of emails…. We’re very concerned about the impact on seniors. We want to ask whether or not the minister and the ministry have done any specific analysis on the impact for seniors and ask why they were not considered for an exemption.
Hon. C. James: I think, again, just to come back to the principles of the tax…. The principles of the tax were not to look at primary residences. That’s important to note for those few people who may be listening. Primary residences are exempt, so seniors or others who have a primary residence are exempt. We’re talking about people with a second or a third or a fourth home.
No, we did not use age as a determination around the bill. That wasn’t part of the principle of the tax. But I think it is important to recognize that there are exemptions in this bill that do relate more commonly to seniors and others, and that would be the care facility exemption for someone going in to a care facility.
Health-related exemptions. They’re there as well.
Commuters. People have talked about spouses sometimes having two different places, commuters as well. Those exemptions are available for seniors and for others.
S. Bond: I think that the minister needs to recognize that a lot of seniors are subject to fixed incomes, and they are more vulnerable to this tax hit. Not only that, the stress and issues related to renting out a property can actually be pretty onerous. We’ve certainly heard very compelling cases of seniors who are concerned.
In fact, we read into the record yesterday about seniors who are not sleeping, who are worried about…. We heard yesterday, and both the Leader of the Third Party and I talked about a couple that were incredibly distressed about the things that are going to happen as a result of this tax.
Can the minister at least comment on whether or not she thinks that her tax is going to have more seniors consider selling their property rather than renting it?
Hon. C. James: We’ve canvassed the issue of whether people will sell or rent. That’s an individual choice. Again, let’s remember these are second or third or fourth homes. These are not primary residences. These are additional homes that are owned by individuals, and that’s their choice, when it is related to their own tax planning.
Section 19 approved.
On section 20.
T. Redies: I want to thank my colleague from Prince George–Valemount for raising the issue of seniors. This has been raised by other colleagues on this side, and, I believe, by myself as well. They have been some of the hardest stories that we’ve heard from people who are affected by this tax — both British Columbians and Canadians.
I just want to read into our dialogue here today a letter from Joe, who has a property in Kelowna. He says:
“My wife and I are a retired couple who grew up in B.C., obtained careers in Edmonton in the 1970s and, in 2007, purchased a retirement home in Kelowna.
“We can’t understand why any government would go after Canadian seniors on fixed incomes for tax revenues of this magnitude. Frankly, it’s disrespectful, presumptuous and devastating, both financially and emotionally.
“And why is the B.C. government not treating Canadians equally?”
They’re working on that. He goes on to say:
“The speculation tax will cause many people, including seniors on fixed incomes, to be worse off. It’s the supply side of the market housing that needs stimulus, instead of bullying taxpayers to act in specific ways or be punished severely.
“My wife and I worked diligently for 35-plus years and always had a goal to own a summer home, whether or not we lived in Edmonton or Vancouver — anywhere. We are grandparents. We are Canadian. We grew up in B.C. and love this province. Why is this government bullying grandparents? We’ve paid our dues, haven’t we?”
This is an example of the many letters that we have received from Canadians, retirees on fixed incomes who are feeling very, very emotionally upset by this tax.
As a result, we’d like to move an amendment.
[Section 1, by adding the following section:
20.1 An owner of a residential property is, for a calendar year, exempt from tax in respect of the owner’s interest in the residential property if all of the following apply:
a) The owner is a Canadian Citizen,
b) The owner is at least 55 years of age,
c) The owner has held a continuous interest in the residential property for a minimum of 10 years, and
d) The property includes a residence or any part of an improvement that is intended to be a residence.]
On the amendment.
T. Redies: This is an amendment that would basically exempt an owner of a residential property for the calendar year — an owner that is a Canadian citizen, that is at least 55 years of age, an owner that has held a continuous interest in residential property for a minimum of ten years.
We think this is fair. Again, this would alleviate the stress of many seniors, many British Columbian and Canadian seniors, who, through no fault of their own, are now feeling that they’re being punished by this government for investing in British Columbia, as opposed to anywhere else in the country or even out of the country. So we would like to move this amendment.
S. Bond: I rise to speak in favour of the amendment, and I want to thank my colleague and co-critic. We’ve spent a lot of time reviewing and understanding the issues that are facing seniors in British Columbia. We know that this was a surprise. We know that there are communities that have been targeted, and most of them still can’t understand why they’re there.
We believe that if seniors have worked hard in British Columbia and have had the opportunity to have a retirement home or they’ve planned their retirement, they should not be unduly impacted by this tax. We think this has a very unfair impact.
We keep repeating that same word. This is a tax that we see as unfair to British Columbians. Seniors in this province who have worked hard are not speculators. If they’ve worked hard and they have found a way to have that second property, now we’re telling them they need to rent it. They need to sell it. They need to pay extra tax for it. We think that’s unfair. We think this is a reasonable amendment. I support the amendment that my colleague has introduced.
S. Thomson: I rise to support this amendment, because I think it is eminently reasonable. The minister talked a few minutes ago under the question of whether or not there was a consideration for any further exemptions and the regulatory ability to be able to do that. She talked about the ability to have, as circumstances develop, reasonable exemptions. I think this is very, very reasonable.
We’ve appealed, on a number of occasions, to the unfairness of the imposition of this tax, which is, as we pointed out, not a speculation tax. It is an asset tax. I think this amendment, with the provisions that are in it around the age, around the time of ownership of the property, clearly creates a segment of the people that are being impacted by this that this kind of consideration should be given to.
As mentioned, they’ve worked hard for it. This is part of their planning. This is impacting their futures, with respect to being able to transition these properties to their children as part of their estate planning. The minister mentioned: “Well, they have a choice. They can rent it out, or they can sell it.”
Well, when it’s part of your retirement plan to be able to have that as part of your estate that you leave for your children, and you brought up your children in those homes…. Many of these homes have a significant length of time of personal possessions in them, family possessions.
The ability to simply turn around and rent these homes…. You can’t just do it like a simple choice, to be able to manage the rental process, with the restrictions now under residential tenancy, the requirements for tenancy agreements and the challenges that that creates and the fact that these homes are used, in many cases, during intermittent periods of the year for significant periods of time.
The minister said: “They have a choice, and they can make that choice.” In fact, what is happening here is the choice is being made for them by the imposition of the tax. You’re forcing people that have worked hard all their lives and who can’t afford the imposition of this tax to have to make that choice that is not one that is fair.
You’ve disrupted their plans, their retirement dreams. So I think the amendment here, along with the other exemptions here…. The minister said she listened to arguments and put in additional exemptions from when the tax was first announced. I think this one here is a very, very reasonable amendment.
Again, I would appeal to the minister’s sense of fairness. We’ve talked about the fairness issue in our previous amendments — and opposition to sections of it. Here’s a chance for the minister to really take that sense of fairness and compassion for people who have helped build our country and build our province. It’s eminently reasonable, so I’ll be supporting the amendment.
B. Stewart: I just want to talk to why I believe that this amendment is imperative and the reason for it. Imagine for just a minute that, as a family, planning out your life with your kids — their education, raising them — you take that quantum step to being able to maybe buy a townhouse, a condominium, something in a community where you’ve always vacationed or you’ve wanted to get to.
Usually, as they’re finishing up paying for maybe their first home, they’re in a situation with savings and whatnot, being able to stretch out and invest in something, whether it’s in lower Vancouver Island, in Victoria and the communities in the CRD or possibly in the Okanagan or maybe even Nanaimo. But the situation is that these are places where people…. And we know that. They’re retirement meccas — right? This is where people would like to go.
We see a lot of people, other Canadians, for as long as I’ve lived in the Okanagan, move from places on the Prairies and places like that, where cold winters in places like that — maybe this is an opportunity. So I’m just thinking about what I am hearing from people that have maybe recently bought without any kind of expectation, or the fact that they purchased some years ago, and are in a situation where they have committed to this program. Maybe their kids are going to university or Okanagan College. They’re using this in a situation where they truly are not in a situation where they can rent this property out.
I mean, even if they had their own family members going to UBC Okanagan, they would not be eligible, under the arms-length tenancy act that we talked about yesterday. So now what we have is seniors that are in the last kind of twilight, I guess, of their earning career. They’ve purchased property. They may still have plans as to how, on a fixed income or reduced income, they’re going to be able to afford this. And, of course, I think that their strategy may be that they may not have sold yet, wherever they’re living. It doesn’t necessarily mean that they’re living in the Lower Mainland. They could be leaving some other place in British Columbia — or as Canadians coming here.
I think that the situation is that the tests that have been proposed — that they are at least 55 years of age, are Canadians, have owned the property at least continuously for ten years or more and that the property is a residence…. It’s a reasonable way of addressing this.
I don’t see it in the other exemptions. There’s more about health care and people with disabilities, etc. I think that this addresses a certain component of not speculators. And I think we’d agree that people who have spent their entire working lives not only paying taxes, raising a family, with the goal and ambition of possibly locating to one of these meccas, as I described a second ago…. It’s a place they would like to go and have a little bit of freedom. I think that they’re going to lose that with this.
I know that I’ve heard, specifically…. I know of people that have already placed their properties on the market, and I’ve seen recent reports of people in real estate turning them away or suggesting, “Don’t sell now,” because the prices have declined so much, and the market has gone into this free fall in some areas. I know that…. The minister shakes her head, but the reality is that I can bring you lots of real estate information in our area in the Central Okanagan. I don’t know about all the other areas, specifically.
Anyways, I think that that’s the reason I would be supporting this amendment.
A. Weaver: With respect to the members from opposition, I’m not going to speak to the amendment.
I would like to seek clarification from the Chair as to whether this amendment is in order. The reason why I ask this is that the bill is retroactive to January 1 of 2018. The addition of this bill will affect government revenue in the 2018-19 fiscal year that is already included in the Supply Act, which we voted on and passed back last spring.
I’m doing this for my own knowledge. The reason why I’m asking this question is the amendment that I had originally put on the order paper is to reduce the 2 percent to 0.5 percent. We were advised that we should have government bring that bill in. We recognized that it was reducing the income that government was getting, and we were told — what we suggested — that this could not be passed unless government were to approve it and bring such an amendment in by themselves. The reason why, again, I’m saying it is it does affect the budget for the 2018-19 fiscal year.
The Chair: The committee will go in recess for ten minutes.
The committee recessed from 4:41 p.m. to 4:56 p.m.
[J. Rice in the chair.]
The Chair: We’ll provide a ruling that you’ve requested on the amendment.
The amendment provides for an exemption from a tax. A private member’s motion that imposes an exemption from a tax is, in fact, in order, according to page 267-268 of Beauchesne’s Parliamentary Rules and Forms. Is there any discussion on that amendment?
Hon. C. James: I rise to speak against the amendment. I’ve talked about the principles of the tax, and I think that’s important to go back and review again. Ninety-nine percent of British Columbians…. We’ve heard a lot of discussion about people being impacted by the tax. I recognize that there are some people in this province who will be impacted, but 99 percent of British Columbians are exempt from this tax. People’s principal residences are exempt. You know, there will be people listening who will hear people talking about living on a fixed income in their house. That is not impacted. Their principal residence is not impacted. It’s people who own a second house or a third house that are impacted.
I’ve heard a discussion around fairness — fairness for individuals. Well, I think it’s important to note that part of the reason we’re looking at bringing forward this tax is to address fairness when it comes to the housing market, when it comes to individuals who can’t afford a place to live, when it comes to people of all ages, including seniors, who can’t find a place to live. So to make an exemption simply based on age and to leave it open to people to be able to buy houses and, because they’re in this age category, be exempt from a tax and not have to contribute for second and third and fourth properties is unfair, from my perspective, not fairness. So I speak against the amendment.
T. Redies: The minister has again talked about principles many times, but the minister has also said multiple times that her estimates are very conservative. We understand from the minister that about $110 million of the revenue is coming from foreign owners, which means that there’s actually not that much revenue that’s coming, on a relative basis, from other Canadians. So the dollars that would be impacted when we’re talking about just seniors over the age of 55, I think, would be relatively minor.
You know, we are really…. What the minister is basically saying is that hard-working seniors who’ve worked very hard and saved their money — bought homes, second homes, vacation homes in our province with after-tax money — don’t matter. Their retirement plans don’t matter. If that’s the message the minister is sending, I think it’s a very sad day for British Columbians because it basically says that it doesn’t matter if you work hard and you save your money and you put it away into a house. I mean, they could have put it into an investment GIC, but they put it into a house.
For this minister to basically say that these people somehow should have to pay now, when they’ve already paid income tax for many, many years and will pay, ultimately, capital gains tax on the disposition of these properties, just seems to be extremely punitive and really not terribly sympathetic to people who are on fixed incomes who’ve worked hard all their lives in this province and in this country.
A. Weaver: I’m rising to speak against this amendment for two reasons. One, we already know that, according to the speculation tax, you can actually defer if you are over the age of 65. That was my understanding, and I hope to be corrected if I’m wrong.
Secondly, it is a question of intergenerational equity. Frankly, I’m profoundly troubled that this would be brought forward. The whole issue that we have right now is a generation, the baby boom generation, which this is precisely addressing. That baby boom generation is the generation that has benefited from the prices and the society, and it is a consequence of the wealth in that generation that we’re creating inequities for the next generation.
I don’t like the whole structure of this tax. Understand, I’ve done what I can over the months and weeks to try to get it to a place where we are able to work with government and support it.
However, this, to me, is patently unfair — not to the people being exempted but to those who aren’t, the next generation of individuals. For that reason, I cannot support this amendment.
S. Thomson: I’ll just add my comments, again, following on the comments from the member for Surrey–White Rock. I think this is a very disappointing, to say the least, decision and position taken by the minister here. It’s pointed out that the financial impact can be significant, the impact that is happening on individuals and plans.
You know, the wealth that the member for Green Bay — for the Green Party, sorry….
Interjection.
S. Thomson: Go Packers. Brett Favre on my mind.
It’s paper wealth. It’s not cash wealth. This is impacting those families and their plans. I’ve had many, many of them in my office.
I know the minister has taken her position on this. Maybe one day she’ll come and sit down and talk to those seniors face to face about the impact that this has had on their lives and on their plans, because it is real. This is a human impact from such an ill-informed tax.
The leader of the Green Party said he would have done things differently. Well, he could have done things differently. He could have stood up, killed this whole approach and put it back to the drawing board in terms of what would be the appropriate way to address speculation, what would be the appropriate way to address the vacancy side of things.
These seniors and the people who are being impacted by this are not the people that are contributing to the hollowing out of communities, the hollowing out of neighbourhoods. These are people that are vibrant parts of our communities. They spend their time there. They are raising their kids there. They’re investing in our communities. They spend dollars in our communities. They volunteer when they’re there. They contribute to charities in our communities. They are part of our community, and they have a life plan to become an even greater part of that community, both they and their families, as they move forward in their plan.
I’m just extremely disappointed in the position of the minister in this case.
Obviously, we support this amendment. As I said, I think it was a very reasonable approach, appealing to the fairness of all this, that we’ve tried on so many occasions to address. Here was a real chance to put a little bit of fairness and a little bit of compassion back into the provision of this badly structured, badly informed tax. Unfortunately, the minister has not taken that opportunity to do this. I’m really, really disappointed.
S. Bond: Hon. Chair, good afternoon. I want to put this in context, because we’ve been here for, I don’t know — what is it? — two and a half days now, trying to find a way to make this…. I mean, we recognize we’re not going to win by one person every time we vote — getting rid of a tax that we think is unfair.
So what do we do? We work hard, and we bring what we think are reasonable amendments that we think actually…. If nothing else, we try to find a way to make this more palatable, although, as all of my colleagues have eloquently said, we don’t support this tax. It is not a speculation tax.
The minister can stand all she wants and talk about 99 percent of British Columbians.
Let’s talk about the people on this list today, who don’t feel like they are speculators, who are not speculators: the people of the capital regional district; the municipalities, other than the village of Lions Bay, within Metro Vancouver; the city of Abbotsford; Chilliwack; Kelowna; Nanaimo; West Kelowna; Lantzville; Mission; “that part of Electoral Area A within the Metro Vancouver Regional District that comprises the University of British Columbia and University Endowment Land as defined in section 1…” and, by the way, “(k) a prescribed area,” which….
We have now determined we don’t actually need a prescribed area, because the minister has committed and promised there will be no more.
Let’s set aside the 99 percent of British Columbians and talk about the people in these communities, who feel they are being treated unfairly. They are not foreign owners; it is not offshore money. There is a chance right now to show that we actually, everyone in this House…. It is not a raging majority on the other side of the House. It is one or two votes every time. We’re asking for what we think is a reasonable approach to the balance of British Columbians who are being impacted.
Of course 99 percent are not, because they’re not caught in the minister’s arbitrary list. And that’s what it is. “Let’s draw a circle here. No, let’s change it. Let’s pull out Parksville, even though Nanaimo is stuck.” The people of Nanaimo are stuck in the speculation tax, despite the arguments and pleas of the MLA from that region who pointed out to this minister that there’s very little difference with the arbitrary line between Parksville and Nanaimo — yet the people of Nanaimo are stuck.
This is a chance, and we’re going to keep amending until we try to find something that makes this even a tiny bit more fair.
The Leader of the Third Party gets up and questions our ability to bring amendments unless we take them through government. I know he didn’t mean it that way, but of course we can bring and move amendments. That’s what we’re here for.
This would be a chance for the Leader of the Third Party to stand up and tell seniors in British Columbia…. It doesn’t matter if it’s…. Yes, their primary residence, as the minister has pointed out, is covered. But seniors in this province never for one minute, when they worked and built our province, thought that if they had a second property, the government would call them speculators, and that is exactly what this government and minister are doing.
They are not speculators. They’ve worked hard. They don’t deserve to be captured. I would encourage…. I know the leader of the Green Party is happy to come along. I know he has extreme regard for the members from Kelowna.
Interjection.
S. Bond: It’s incredible to hear the member from the opposite…. You know what? This is not a speculation tax. The last time I checked, British Columbians and Canadians are not speculators. If that member wants us to go out and tell his constituents that he thinks they’re speculators, then he can go right ahead and do that.
This side of the House is going to stand up for British Columbians and Canadians every single day when they are the majority of a group that are being impacted. It’s not a speculation tax.
We believe this is a reasonable and appropriate amendment. It’s been ruled in order, and we are hopeful that there would be at least someone on the other side who would see this as an important message to seniors in British Columbia.
A. Weaver: I just wanted to correct for the record. I misspoke when I said “exempted” from the speculation vacancy tax. Of course, it’s over 55 for the property tax, and there’s no exemption here with the speculation tax. I was mixing…. It’s getting towards the end of the day.
I will say that I personally feel somewhat affronted being called a senior at the age of 57. I say that in jest. But coming back to it, I do reaffirm that it is a speculation and a vacancy tax, and it does affect the riding that I represent, both Saanich and Oak Bay. I have spoken to many seniors in my riding and many others. You know, there is a feeling….
I’m not criticizing the members of the opposition for bringing this forward. This tax applies to my riding, Oak Bay–Gordon Head. It applies to everybody in my riding. It applies to the minister’s riding. But it is a speculation and a vacancy tax. If one focuses on the aspect that there is an externality, a real externality — that social cost that has occurred because of people leaving homes vacant — that has created an issue on the next generation.
As a party, the Third Party, the Green Party, fundamental to who we are is the importance of intergenerational equity. To me, an exemption for those over the age of 55 goes against the very thing we as a Green Party believe in — that this generation has had it good and has to also look out for the next generation in the decisions we make today because the decisions we make today not only affect our generation but generations to come.
On this, I’m afraid I just cannot support this motion, because it is unfair to those who are suffering right now as our urban areas get hollowed out. Our young British Columbians cannot afford to live and work in the same place that they grew up or even where there are jobs available.
Already in the city of Victoria, you cannot find people to work in restaurants. Restaurants on the North Shore of Vancouver are closing down because they cannot get people to work there, because nobody can live there. You’re getting people on the North Shore of Vancouver who live in South Surrey. You get traffic jams going the wrong way from what you would expect with normal jams because of the issue of affordability.
On this particular case, while we would have done things differently, I will say that exempting a generation seems to me patently unfair to the next generation that is coming forward.
Hon. C. James: I just want to add a couple of things. I know we’re getting to the end of the debate on the amendment. But I think it’s important to note once again that — and I hear a lot about standing up for seniors — in fact, seniors are a large portion of the population who are struggling with affordable housing as well. They are also facing challenges when it comes to being able to find affordable housing.
The member mentioned certain areas. Yes, there are certain areas chosen. They are certain areas that have the highest unaffordability indexes, that have the lowest vacancy rates and that have the highest impact of the crisis that we are facing in this province when it comes to affordable housing. Large urban settings are facing those issues.
I think, as the Leader of the Third Party said so well, this is not an issue that simply impacts those communities. It impacts the economy. It impacts families. It impacts workers. It impacts companies that are looking to invest in British Columbia.
Primary residences are exempt. We are talking about people who own an additional home or a third home. Using housing as a stock market is, in fact, part of speculation, part of the challenge. I think it’s just important to note, again, that there is a reason this tax is coming forward.
I recognize the other side doesn’t want this tax and won’t support it. I understand that. But moving this exemption does not make that difference. In fact, it creates more of a divide, from my perspective, on the challenges that we face in the housing crisis.
The Chair: The question is on the opposition amendment to section 20.
Amendment negatived on the following division.
YEAS — 8 | ||
Coleman | Wat | Thornthwaite |
Isaacs | Morris | Oakes |
Rustad |
| Gibson |
NAYS — 9 | ||
Bains | Chen | D’Eith |
Routledge | James | Ralston |
Fleming | Chandra Herbert | Weaver |
The Chair: We will resume debate on section 20.
T. Redies: I have a question just on some of the language in this particular section. It appears to exempt cooperatives, but previously in the definitions, common ownership is addressed. Can the minister explain that? Is the intention to exclude cooperative housing?
Hon. C. James: Yes, co-op housing is exempt.
Sections 20 to 26 inclusive approved.
On section 27.
A. Weaver: On section 27, we’re talking here about strata accommodation properties. I’m wondering if the minister could please give the members here an idea, an estimate, of what type of properties these are, with some examples.
Hon. C. James: Strata accommodation properties that are classed as residential under the Assessment Act would be strata accommodation property short-term rentals, hotels, strata hotel accommodation that has been classed as class 1 or partially class 1 or partially class 6.
These hotels, a number of years ago, were given favourable property tax treatment, for example, to encourage the construction of these short-term-occupancy time-shares, hotels. I guess a way of describing it would be a cross between a strata complex and a hotel — that’s kind of a description — made up of individual strata lots that are pooled together for the purpose of being rented. That’s, I think, kind of the best description I could give.
A. Weaver: I can give some examples, then. Oak Bay Beach Hotel, for example, is a hotel in my riding that has a long history as a hotel, but it’s actually strata units that are rented out through a property rental agreement, and the zoning actually precludes any other use.
There are others in the minister’s own riding. Some are zoned tourist commercial. There are others in the province of British Columbia. In the tourist commercial zoning, for example, which some are zoned as, you actually have restrictions put on by your municipality, and those restrictions actually limit the ability for you to rent more than six months. So I agree. I think we’re on the same page as to what units are there.
My question, then. I understand that there’s no problem for the next two years — well, through 2019, because 2018 is exempt, as well, for these properties. My concern is: what is government’s intent for afterwards?
These properties are significant economic drivers in the region. Oak Bay Beach Hotel, for example, is one of the single biggest suppliers of property tax to the municipality of Oak Bay. They have very little commercial property in the riding, as well as in other jurisdictions. I’m sure there are, in my friend’s riding in Kelowna, tourist commercial properties that have similar zoning, as well.
Hon. C. James: The member, I’m sure, knows this, but the commercial portion is already not classed as residential, so therefore isn’t covered anyway because it’s often class 6 property.
I think the further review around how we deal with these properties is really the time that we gave, in this act, for two years. It gives an opportunity for discussions with the municipalities, with the property owners, etc., to find a long-term solution. This gives us the opportunity to have those kinds of conversations.
T. Redies: Minister, I’d also like to raise concerns with this as well, because again, people have invested in businesses, and now the rules of the game have changed.
I just want to read one particular example into the record here. A couple that moved here from Saskatchewan bought a company called City Life Suites, which is a vacation rental agency. They say:
“Three years ago we sold everything and moved here from Saskatchewan, and we are very much starting to regret this move. Although we still hold these hopes, it has become quite clear to us that, through no fault of our own, we’ve made a bad choice. The chokehold the new city of Victoria’s licence fee of $1,500” — it was $115 — “and this insane speculation tax will have on our company will be too much to stay afloat.
“Ten of our 16 owners are out of province, and after speaking to all of them, we will be left with only six suites after the dust clears. In other words, my wife and I will be looking for jobs. These folks aren’t speculators. They simply made an investment in B.C. and handed us the keys to look after their property.”
They have, apparently, again written to the Ministry of Finance. He says here:
“Here I am, day after day, writing, begging, to save my business.”
For this gentleman, Mr. Carroll, is the minister offering hope that this business will be able to be saved — like other vacation rental businesses who are very much dependent on their investors staying in the business?
Hon. C. James: Just in the same way, I don’t want to give specific information for specific individuals or specific businesses. We obviously don’t have all the information, but I’m happy do a follow-up.
I think the exemption here is put in place so that we can have those discussions. I’ve committed to having those discussions and talking about a long-term solution. I recognize the issues that the member has raised and recognize the discussion piece. So yes, that will happen.
B. Stewart: On section 27, I just want to be absolutely clear because of the nature of…. Especially in the lakefront areas around Kelowna and West Kelowna, there’s been a lot of development of properties that have either been sold as strata, fractional strata, other places, and the…. Our office — I confirmed today — had checked with your ministry that there was an exemption. I am concerned, because I did try to look at their assessment to see the classification of the zoning, which I don’t have.
This remark that you just finished saying — that you’re open to dialogue on this…. Who is that dialogue with, and how do we seek clarification? Some of these properties actually are operating, really, as a hotel. There are owners behind it. That’s how it got built. So that is the bigger problem — that the entire business model of…. Hundreds of units are in jeopardy. And it’s not any different than Whistler.
Hon. C. James: The commitment is to, as I said, if they fit under this…. Again, I don’t have all the specifics, so I’d need to know all the specifics. But if they fit under this exemption, then they have an exemption for two years, for 2018 and 2019. The commitment is to have that discussion through the tax department, etc., to make sure that we consult with owners. That may be the individuals who own places and are part of the strata or the owner of the building and the municipalities to make a longer-term decision.
B. Stewart: Just to be clear, then, the intention with this type of development is that…. It is not the intention of the government or the minister and the ministry to prevent the development of rental accommodation for hotel accommodation, that type of thing. I mean, there are many different types of zoning, and that’s the real problem with this. They look and feel like hotels, but they may not be the hotel zoning of the city of Kelowna or the city of West Kelowna.
Some of this predates the incorporation of the city of West Kelowna 11 years ago. They operated in a zone where they could build, and they did this. I think that the city would see that they’re the few hotels that they have in the city of West Kelowna. In Kelowna, there are developments that are stalled now because of uncertainty around this.
Hon. C. James: I think the member has given the perfect description of why we need to have that conversation around the longer term, because it is not the intent, obviously. Hotels are not included. It’s not the intent to look at that as part of the tax, and that’s why we want to have this conversation. They’re different zoning. They’re different pieces in those communities. We want to make sure that we have that longer-term conversation.
Sections 27 and 28 approved.
On section 29.
T. Redies: I just have one question with respect to this principal residence exemption, in general. If a person has a principal residence in Fort St. John and a vacation home in Kelowna, what would stop that person from simply changing their principal residence, if anything?
Hon. C. James: The requirement around a principal residence…. To declare a principal residence — and this is similar with the homeowner grant — it has to be the place that you are spending most of your time. So if a person moved, for example, to Fort St. John and that’s where they were spending the majority of their time, that’s their principal residence. That’s the requirement — that that’s where you’re spending the majority of your time.
Sections 29 to 31 inclusive approved.
On section 32.
S. Bond: Just quickly, can the minister explain the exemption for residing in a residential care facility and confirm that at the moment that is only a two-year exemption?
Hon. C. James: It may be the wording, but just to be clear, they get a two-year exemption. So it’s not an exemption only in place for two years, for ’18 and ’19, like other exemptions are. It’s a two-year exemption to give time for planning, obviously, for individual families or individuals who may be moving in. They get the exemption from the tax for two years to be able to do that planning.
T. Redies: Just to follow up on that. Is the expectation that after the two years the person who’s in residential care has to sell their home?
Hon. C. James: I think, again, the important piece in all of this is that they have the opportunity, then, for two years. Most families, after two years…. If you look at the time period, most families are making decisions about other family members moving into the house or not leaving it vacant. Most people are making the decisions. So that two years gives the planning that a family will need.
B. Stewart: Just further on that particular point about the exemption. These things — and I know this personally — happen a bit gradually. Getting into long-term care, there’s always that point of a certain amount of denial and, “We don’t need it,” and you make those decisions.
Then, of course, in a particular individual I know, the case is that they’re downsizing — the one remaining person is downsizing — to another unit which is being renovated. But that time lapse, etc., and then the sales time…. Two years may not be enough time.
Is there any alternative besides…? I mean, if the property doesn’t sell…. I mentioned this about the market slowing down in the Kelowna area. Are these people, if they can’t sell, to fire sale? I mean, I guess rental is an option on it, but anyways, I don’t know if that’s the option for some of these people that are seniors.
Hon. C. James: If you look at the exemption for illness — there’s an illness exemption for two years — I think it would be the kind of example that you pointed out, where people may be not quite there yet but may be moving back and forth, or they may be having some health issues. That’s a two-year exemption. Then the long-term care, once they’ve moved into residential care, is two years. So you could be looking at four years for planning.
As the member says, it could be rented out. It can be a family member living in the house. It doesn’t have to be an arm’s length. It can be a non–arm’s length, as well, that would cover off the primary residence.
Section 32 approved.
On section 33.
A. Weaver: With respect to section 33, I have a personal story I’d like to relate to the minister. I’m not asking for tax advice. I’m recommending people go to the information that the minister provided yesterday on the record, and that will be there. I’ll just give a sense of the intent, because this is an illustrative example.
This is an example of a couple who recently bought a second home in Nanaimo. They live on a small island nearby with their daughter, and they spend several days a week at the Nanaimo property. They bought it so they could be closer to the hospital. They’re elderly.
The property is worth less than $400,000. It’s a $300,000 property. They don’t want to rent it out. They’re elderly, they’re concerned about medical issues, and they want to go there if they have to be there for medical reasons. Right now they only have to be there on and off, but they might have to be there at any time for a more extended period of time.
I’m asking if the minister could please confirm to me that the couple is not covered by the medical exemption, yet they are covered by the fact that the property is $300,000, which is under the $400,000 exemption. The idea here is that while they have bought a property to go to every now and again, it’s still not being used full-time, and they’re not needing it full-time. But because it is under $400,000, they are exempt.
I’m wondering if the minister, without providing tax advice, could confirm that the general spirit of this would be that they would have exemption because it’s under $400,000, but they’re not eligible for the medical exemption.
Hon. C. James: I appreciate that I must have said it often enough. Based on the information that the member provided — and recognizing that the individual should make sure they get tax information from the tax people — yes, if it’s less than $400,000, that will cover it, and they will not pay the speculation tax. As the member says, from the information he has given, they wouldn’t appear to be covered under the illness, but they would be covered under the $400,000.
S. Bond: This section is about residents being exempt despite extended medical absence. If people are wondering why it’s taking us a long time to get through this bill, this section alone has 3½ pages of “ifs” and “whens.”
One of the things that is becoming incredibly more clear to every member on this side of the House is that we’ve all got hundreds of examples of people asking for help, not having a clue whether they’re in or they’re out, whether they have to pay or not. It’s a pretty significant issue here. Can the minister explain to us what is going to be required in terms of proof in order to claim this exemption?
Hon. C. James: “In this section, ‘medical reason’” — I’ll read the definition — “in relation to an individual…means participation in a course of treatment (a) that, in the opinion of a medical practitioner, is required for the health of the individual, and (b) that is impractical for the individual to obtain in reasonably close proximity to the residence” that would have been, in this section, the principal residence for the individual in the previous calendar year.
Just as we’ve talked about on others, this is, remember, a self-declaration that they put on the form. They would check off the medical exemption on their form. They would be required to have that information from a medical practitioner so that if they were asked for an audit, they would have that information to show that.
S. Bond: There is a lot of self-declaration going on with every exemption. What is the audit plan by the ministry?
Hon. C. James: As the member knows, later in the act, there are provisions to allow the administrator to investigate and audit as necessary. There are also penalties. There are offences. So it’s not simply the audits. We also have penalties and offences for people — to deter and punish, in fact, non-compliance. As I mentioned, I think yesterday or the day before yesterday perhaps, there’s also a very strong audit and enforcement program already within the ministry and within the branch, and a mix of staff. We’ll be using those staff. They’re used to, with other tax bills, doing audits — everything from the homeowners grant, etc.
We’ll be drawing on the strengths of the existing program, but if we need additional staff, that’ll be something that will be discussed and, obviously, be a part of the budget. But, as I said, we have a good, strong audit team in the ministry, and those kinds of audits are something they’re used to doing and something that they’ll be looking at.
T. Redies: I just want to confirm what I heard. Did the minister say that they will not need additional staff, or they will need additional staff?
Hon. C. James: What I said was we’ll use the existing staff, and we’ll monitor that as we go along. If we need additional staff, then that would be part of the budget process, obviously.
Sections 33 and 34 approved.
On section 35.
T. Redies: The minister has spoken at length about low vacancy rates. What vacancy rate would satisfy the minister that there is access to sufficient rental housing in a community in order to remove this tax?
Hon. C. James: I know we’ve talked about this previously. As I’ve said, we’ll be looking at a mix of indicators. That will include rental. That will include properties. That will include prices. That will include vacancy rates, etc. We’ll be looking at a range of options to be able to determine the changes that may or may not need to be done in the tax.
Sections 35 to 37 inclusive approved.
On section 38.
S. Thomson: I’ve got some questions on this section. We canvassed this earlier in the debate a little bit. In further discussion today, the minister took the position…. One of the ways to avoid this is just rent your house for the amount of time required. So I just wanted to pursue this with respect to the provisions and with respect to the Residential Tenancy Act and the requirement for a tenancy agreement in this case.
What it appears to be is if you’re renting for the six months, the concern has been how you ensure that the house will be available to you at the end of the six months. The residential tenancy agreement, the notice, requires an additional cost in terms of this provision. Again, it has to go into…. A family member has to be moving in. The way I read the Residential Tenancy Act, the family has to move in for a continuous six-month period.
Can the minister confirm that that’s the case under a residential tenancy agreement, that if they do this for the six-month period and then trigger the end of that fixed tenancy, there’s the additional cost, and it has to be with the family moving in for a six-month continuous period?
Hon. C. James: I think the member has described the first piece correctly, which is the six months that you are able to have an agreement with a tenant. You could have an agreement with a tenant for the one month, for the six months, for the eight months, and then utilize the property yourself after that. That is permitted under the Residential Tenancy Act.
S. Thomson: Just to be clear, under that, then, it’s not a requirement that the family…. It would not have to occupy that house for the continuous six-month period. They could rent it for the six months, then come in and use it for a month, if that was when they normally spent their time there. The house could be vacant for the balance of the time, and the same arrangement could be put in place for the next year?
Hon. C. James: For the speculation tax purposes, the house has to be rented for six months. So the description you give is correct.
S. Thomson: What happens in the case, then, if there’s a residential tenancy agreement for that time period — you think you’ve got it rented for six months — and the tenant leaves early, after five months or four and a half months, and you’re not able to rent the house again for that one-month period or one-and-a-half-month period because you want to occupy it after the end of the six months?
Is the fact that you had an agreement but the tenant exited that agreement early — or, for reasons, you had to move that tenant out early — and you haven’t got the full six-month period…? Are you then subject to the speculation tax?
Hon. C. James: The requirement under the speculation tax is that it has to be a six-month tenancy. I’m sure, as the member knows, there are other options around renting it out, as the member said, for the other period of time or having the family live in it for a longer period of time. The issue is that it has to be rented out for six months.
S. Thomson: I’m sure that’s going to create some challenges and some issues.
Yesterday we explored the question, and I just want to, again, get clarity on this question: what happens in the situation — and has there been any contemplation of the situation — where, given the nature of the property, you make all your best efforts to rent the property for that period of time but are unable to do so? It may be that the property has a market value and a rent level that is not going to fit that affordable rental prospect that the minister seems to be wanting all of this to be directed to.
What if you can’t find a suitable tenant? As we pointed out, many of these properties are family homes. They’ve got all their possessions in it. They will want to ensure that it is a tenant that will respect all that, and not put all of their earnings and their life’s assets at risk in the process.
We have talked earlier about the nature of these properties. The minister has not accepted any amendments that will try to address this situation, particularly on the senior side of it, so this is going to be a challenge for many of those in those circumstances, to be able to meet the rental side of it.
What happens if, despite all their best efforts and work, they can’t achieve it? Is there a process to be able to seek an appeal, to be able to demonstrate that they’ve made best efforts to do this, and that despite all those efforts, they haven’t been able to? Or are they just out of luck and going to be impacted if they are not able to do that?
Yesterday I don’t think we got a completely clear answer on that, but I do want, again, to get it on the record from the minister whether there is any option for appeal, for consideration, extenuating circumstances — anything of that nature, under those circumstances. Or are they simply out of luck in that case?
Hon. C. James: The requirement is six months — three months in 2018, as we have talked about already. I think it’s also important to remember that the areas that we have included as part of the speculation tax are areas with very low vacancy rates, with big challenges around rental properties, with big opportunities for people who are looking to provide for people who work and live in the community. But there is not an exemption for the kind of situation that the member identified.
S. Thomson: Thank you for that clarification on the record. I think this will create additional concerns. I’ll just add the comment, where the minister made the comment around three months for 2018….
Again, recognize that here we are in the middle of November, bringing in retroactive legislation and retroactive requirements on people without the option to be able to meet that requirement for 2018. Given all of the uncertainty and all of the discussion and all of the expectation that was potentially created by the feeling that the leader of the Green Party was going to vote against this and support getting rid of the speculation tax…. I think this will be a little bit of cold comfort, with that clarity that has just been provided.
A. Weaver: I do have a number of questions on this. This is the predominant section where I have most of my remaining examples that I’d like to get in just for the record.
Again, I’m not seeking individual tax advice, but seeking kind of a specific interpretation of the intent of the general direction. Here is an example. A couple owns a home in Sidney and a condo in Vancouver, which they rent to their own company and use for office use. The couple resides in Sidney, British Columbia, subject to the speculation tax; owns a condo in Vancouver, subject to the speculation tax; and rents that condo to their company in Vancouver.
They are planning to transition over to Vancouver in the next few years, where they’re going to move full-time to live in it when they sell their company. So they’re going to sell the company. Then they’re going to move to Vancouver and into the condo that they have there. They want to enjoy living in both places for a little while and then transition to Vancouver full-time to live near their grown-up children and take care of their children’s children.
My question is: how will this tax affect them, since they rent it to their own company? If the property is being rented to a company for office use, is this exempt or not — either to one’s own company or a different company?
Hon. C. James: Again, given the information that we have, if an office was rented to the company, it would not be exempt.
A. Weaver: Another example is a couple from overseas who spent many years visiting family in Victoria. They finally bought a house in Oak Bay a few years ago. Their intention is to be in Oak Bay about half of the year. They don’t see themselves as foreign speculators but as people who want to spend time with their family and friends here.
They have a basement suite, in this case, in Oak Bay. Now, this is where it gets complex. Oak Bay does not allow secondary suites, yet they have a secondary suite, and they wish to rent it out. If they rent it out, they could be, I assume — my interpretation would be — exempt from the speculation tax. However, they’re not allowed to legally rent it out in Oak Bay, which doesn’t allow secondary suites.
My question is: in complex situations like this, is this couple to take a risk that they can rent it out as a non-conforming suite, which is not actually allowed, and then claim exemption? Or is there some mechanism where they would be punished for renting it out? This is a complex example. I’m hoping to seek some clarification on it.
Hon. C. James: I think a couple of things would apply. One would be if they’re earning B.C. income. If there’s any B.C. income while they’re here, they could use that as part of the tax credit, because that’s there for them if they’re foreign living in British Columbia.
I think, for the purposes of this tax bill, they need to be able to show that they’re renting it out, whether that’s through an arm’s-length rental agreement.
I wouldn’t want to wade into a municipality’s bylaws that they have in place and give someone advice around whether they should or shouldn’t rent a suite in an area that may or may not be legal. That’s not something that I would want to wade into.
For the purposes of this tax bill, they would need to be able to show an arm’s-length rental agreement to be able to get the exemption.
A. Weaver: My understanding, if we’re going to follow the letter of the law, is that if the municipality of Oak Bay does not allow secondary suites, you should not rent out your secondary suite. However, the intention of this legislation would be that if you were allowed to rent out your secondary suite, you would be exempt. So there is a challenge that’s been presented here for those municipalities that do not allow secondary suites. I assume the minister would agree with that interpretation.
Hon. C. James: I certainly would.
A. Weaver: The next one is relatively straightforward. I have a couple who are self-employed. They have no pension, but they have a secondary suite in the property that they own. They’re profoundly concerned that they will be subject to the speculation tax if their secondary suite in their actual residence is not rented out.
I won’t ask the minister for tax advice, but I would suggest that…. Is it correct to suggest to them that the fact that they are in that house anyway means that they are not exempt and that even if they’re not renting it out, they’re fine? There really is no worry here, because it’s a secondary suite in the house that they reside in, whether they rent it out or not. They’re concerned about their inability to rent it out — they do rent it out now — in case rental vacancy rates go up.
Hon. C. James: If it’s a primary residence, if it’s their principal residence, then they are exempt from the tax.
A. Weaver: I’m just trying to follow these through so that I can be done with the list that I’m cutting through here. I understand that my friend here from Kelowna–Lake Country would like to follow up, perhaps, on some of these, and I suspect I’ve prompted another couple of questions.
If we come to another one, I have a couple who owns a house in Vancouver. They moved away to Mexico for a little while, after recently retiring. While they’re away, two of their family members and a friend permanently occupy the home in Vancouver. They’re in Mexico, and two of their family members and a friend permanently occupy their Vancouver home.
The occupants are Canadian citizens, but they do not have a formal tenancy agreement because it’s an informal arrangement. These owners are actually — to use their word — “terrified” that they will be subject to the speculation tax, which they could not afford to pay, as they are on a fixed income. They’re seniors. So they would have to sell their Vancouver home.
I’m hoping that the minister could confirm that the couple is exempt through the non-arm’s-length rental exemption. I’m also asking: even though they are away, will this couple be treated as Canadian citizens and thus be eligible for the non-arm’s-length rental exemption to the tax? Or will they be treated as foreigners or a satellite family and so face rental restrictions?
Hon. C. James: Thank you to the member. I think this is one of those examples where we’d need more information to make the determination. We’re happy to get the information. If they are Canadians, then they can use non-arm’s-length. The member is quite right. But I think the question would be whether they’re a satellite family or where their income is being earned and claimed. That would be more information that we’d just need to get to be able to clarify.
A. Weaver: I very much appreciate that and will convey that, along with the information for these people too. Again, I’ve had thousands of emails, literally thousands of them. I’m picking some very illustrative ones because they represent hundreds of other similar-type examples.
Here’s another one from out-of-province owners. They split their time 50-50 between their Sidney home and their Ontario home — obviously, in the summer in Ontario and in the winter in Sidney. They occupy their residence themselves for more than six months of the year, but they do not rent it out. I’m hoping to confirm that even though they’re spending time in both places, they are exempt because they occupy the Sidney home for more than six months of the year.
I’m wondering if the minister could speak a little bit to the decision to create a rental exemption rather than a straight occupancy exemption. How does this differ from the city of Vancouver’s empty homes tax?
Hon. C. James: Certainly, if they’re spending more time in the Sidney home and that is their primary residence. I think the piece that is important to note — that we don’t know, which would need to be clarified — is whether they were a B.C. resident for tax purposes, because the primary residence is obviously for B.C. residents. So we’d need to know if that was their primary residence for tax purposes. If it is, then given the information, it would appear that they would be covered. But again, that’s an important piece of information.
A. Weaver: I don’t have that information, and I would agree 100 percent with the minister that that information, of course, is critical.
The final example that I’d like to put forward is…. This is a fascinating example, but it’s indicative of hundreds of others. It’s an example of a couple who live in the Kootenays, but they’re going to retire to Victoria. They have a house in Victoria. Their house has their son living in it. However, their son works in the military, and he’s presently absent. But this is the son’s home. He’s not on the title. He lives in the family home. As he is in the military, he gets posted. But this is his base. He may be away for extended periods of time and then come back.
My question here is: is that family in the Kootenays exempt from the speculation and vacancy tax or not?
Hon. C. James: I’m not trying to not provide the information to the member, but I think this is another example where we need more information and where we need to clarify it. I’m happy to get the information and clarify. I think it depends on…. It doesn’t appear to be his primary residence. It appears to be his family’s primary residence, but again, I think we need more information to be able to give an accurate assessment.
We’ll get the information from you and pass it back. Thank you, Member.
N. Letnick: Thank you to the minister and her staff for being here. I think we’re almost done for…. No, we’re not, because we’re going till seven o’clock. That’s right.
Just one question. The minister already knows that I am, like my colleagues, totally opposed to the speculation and vacancy tax. Nothing new there, so I guess we’ll have to agree to disagree. Having said that, one question did come to mind while the Leader of the Third Party was discussing secondary suites and not encouraging citizens to break municipal bylaws regarding whether they should or should not have secondary suites.
If you’re having a secondary suite, usually that means you’re occupying the main house. That should mean that you’re exempt from the vacancy tax. Correct?
Hon. C. James: If it is your primary residence, that’s correct.
Section 38 approved.
On section 39.
S. Bond: Just a couple of questions here. Can the minister confirm that this section establishes an income test for tenants that are family members of the owner, if the owner is taxed at the highest rate?
Hon. C. James: That is correct.
S. Bond: Can the minister explain why she set the income test at three times the annual fair market rent for the property?
Hon. C. James: We compared a variety of rates. We looked at a number of rates, related, to ensure that the tenant had enough B.C. income to be able to pay the rent and looked at the standard housing affordability rate, which is that one-third of your income goes toward rent, and felt that that was a fair approach to be able to use.
S. Bond: Considering that a significant number of British Columbians actually spend more than 30 percent of their income on rent, doesn’t the minister…? The whole discussion we’ve been having is about affordability. Yet we have to find these homes, owned by people who…. They may not be in the affordable category, as we’ve had a conversation about.
[S. Chandra Herbert in the chair.]
Is the minister not concerned at all that this income test actually may shift demand and put pressure on more affordable apartments as a result of families seeking to use this clause? In other words, defeating the entire purpose of the speculation tax and the vacancy tax.
Hon. C. James: Just to go back again to who rents to who. For Canadians, you can rent arm’s-length or non-arm’s-length. You can rent either. If you are foreign owners or a satellite family, you have to rent arm’s-length. That’s the requirement, unless your tenant is a Canadian citizen or a permanent resident. They are the ones who then have the income test to ensure that they, as I said earlier, have enough B.C. income to be able to afford the rent. It’s the difference between the Canadians and the foreign owners and satellite families that is the key in this piece and in the income-testing piece.
Section 39 approved.
On section 40.
T. Redies: I would like to actually thank the minister for listening to the UDI on the issue of development properties and removing the speculation tax from these particular situations. I’m going to take a little bit of liberty here, but given that the same issue applies to the school tax, has the minister given any thought about exempting development properties from the school tax, since it ultimately passes on a significant cost to end-condo-buyers?
Hon. C. James: No, that’s not a consideration.
T. Redies: Thank you for that definitive response. Can the minister provide an overview as to what went into determining what qualifies as building activity, and could the minister please detail for us what would qualify as applying for financing?
Hon. C. James: I think the member has the section in front, but just to give you an idea of the kind of work that was done, we worked with the construction industry, with developers, the UDI and others. We had conversations about what would make sense. As the member would know, there’s a whole variety. We looked at things like using a timeline around how long the development took, and we talked about the challenges of different municipalities and different development times. So we came up with the description that’s here in consultation.
As the member knows, there’s a whole long list of areas that will show that you’re in the process of doing renovations. Applying for financing is one piece, but there is a whole variety of those, and that’s really just looking at capital. They may be going to banks. Maybe they’re looking at other lenders. It’s one area that they may show in addition to some of these other areas that they may show.
T. Redies: What if the owner, through timing or other reasons, is not in a position to develop or finance a particular property at that particular time? We know there are a lot of variables in here that have been detailed in the tax, lots of different decision points. What happens then? Is the developer…? Are they then going to be in a position where they either pay the tax or sell the property?
Hon. C. James: Section 41 talks about exactly that circumstance. It talks about an owner taking reasonable steps to ensure that the building activity progresses without undue delay. So they have to be able to show that they’re taking steps. But it also recognizes that if there is undue delay in the moving ahead caused by circumstances that are unforeseeable and out of their control, zoning changes — there may be a whole variety of things — they then don’t have to pay the speculation tax. Again, it’s that reasonableness that is built in there.
T. Redies: In the case of…. I remember talking to the minister about this in the spring, about presales, which is often…. Well, it is a condition of financing, and it has to be at a certain stage in order for builders to get development financing.
In a situation where a builder doesn’t have the requisite presales, and it’s taking a long time to get those presales, is the builder going to be okay in terms of not having to pay the spec tax?
Hon. C. James: As long as they’re showing reasonable steps — that they’re taking steps, that they haven’t given up, that they’re continuing to take steps — then they would be covered by the exemption.
T. Redies: What happens if there is a complete downturn in the market that makes it completely non-conducive for builders to build those properties? Then what happens?
Hon. C. James: I think, again, it comes back to reasonable efforts. If you’re continuing to make reasonable efforts, regardless of what situation you’re in, then you will be covered by this section.
T. Redies: A builder can make reasonable efforts, but if the market is in a downturn and people aren’t buying, for whatever reason…. I mean, think back to the 2008 financial recession, which was a housing crash. Builders aren’t going to build out property that they can’t sell.
In situations like that, where the builder really has no control over the market and it can be demonstrated that there are significant declines in market pricing that makes it uneconomic for builders to build, will those builders be exempted from the speculation tax?
Hon. C. James: I think, again, taking step (b) and step (c), and butt that section together, which is that they take reasonable efforts. But there may be circumstances beyond the reasonable control of an owner of a residential property. Then they would get the exemption.
Section 40 approved.
On section 41.
T. Redies: I want to pursue this just a little bit more to provide clarity for developers out there. Can the minister tell us, from her perspective, what constitutes an “undue delay” under this section? What length of time, specifically, constitutes an undue delay?
Hon. C. James: I think, again, much of this kind of language is written, as it is in many tax statutes, to give the opportunity for those unique circumstances that may arise.
“Undue delay” in terminology in an act like this would mean “excessive.” Again, the administrator would make that judgment.
If someone felt that that wasn’t followed when the judgment was made around paying the tax, they would have the opportunity to be able to appeal to the administrator, and then you move into the appeal section that’s there.
T. Redies: Thank you for that answer, Minister.
Would an application for construction in the ALR potentially run afoul of undue delay provisions?
Hon. C. James: I think, again, it goes back to the test of making reasonable efforts. So if they’ve made an application and they’re checking up on their application and they’re looking where their application falls and they’re following the rules that are in place, then that would be making reasonable effort. If there were circumstances outside of their control, then obviously they’d apply for the next section.
T. Redies: What about where construction permits on ALR applications are denied? Is that a post facto exemption?
Hon. C. James: I think it’s important just to note that this, obviously, is a yearly tax. So it’s each year that gets assessed. If they are continuing on and making reasonable efforts and that’s moving along, then obviously they get the exemption. If it’s a year when there isn’t any opportunity and they’ve given up the application, then they pay the tax.
Sections 41 and 42 approved.
On section 43.
S. Bond: This section is related to an exemption for phased developments of residential property.
I’m going to read a quote for the minister from the KPMG newsletter. It says: “The policy reason to have the same person or a related person own all phases of a phased development project is not clear. This condition may be hard to meet if each of the phases are done in separate limited partnerships for liability reasons, as there is no mechanism for partnerships to be ‘a related person’ in the Income Tax Act.”
So it’s a problem. Can the minister explain why she hasn’t taken into account the practice of doing separate phases in separate limited partnerships?
Hon. C. James: The tax bill obviously doesn’t limit how people deal with their taxes. That’s up to them. People have individual tax planners, and they’ll look at how they’re going to deal with their taxes in separate phases. They can look at separate limited partnerships. But for the purposes of this bill, they’re required to be related parties, and that’s what this section refers to.
S. Bond: So from our perspective, that’s an error, as far as we can tell. Is the minister prepared to fix that to allow for phased developments to continue unhindered?
Hon. C. James: I think phased developments can obviously continue. Phased developments can continue under whatever structure the people put together.
For the purposes of this act, for phased developments, if they are not making reasonable efforts and not taking reasonable steps to do development on the other properties, then, as I said, they’re…. And they are required under this section to be related parties, so they may fit under section 41. It doesn’t exclude them from fitting under section 41, which is, again, the reasonable efforts that people are making. If they are making reasonable efforts, then they’ll fit under section 41 for this purpose.
B. Stewart: I just want to clarify. Just a week ago the MLA for Kelowna-Mission and myself toured a rental project that has been built. There are about 500 units in two different locations. I didn’t realize until I had toured that project how they had phased the project and how the partnerships had become such an intricate way, both the ownership of the land….
The phasing of the development had several or multiple partners that were actually a part of the actual phases. And then the building company was also a part of…. In one case, it was a party to the actual land. So anyway, I guess the point about it is that it’s very complicated, and I was a bit surprised.
My point being is that…. Is there any danger, especially in a situation where these people are building exactly what you’re looking for — affordable, lower-income housing — and the fact that this method that they’re using is to help finance and structure a deal — being able to put, maybe, something that’s unorthodox together…?
Interjection.
B. Stewart: It’s not unorthodox, I’m told. Sorry, that’s not my background. Well, it was my background a long time ago.
Hon. C. James: I think that the project in the phases that they’re doing it would be exempt. But the phases that aren’t being done, that aren’t being financed, that aren’t having development on it would be covered by the speculation tax — the piece in the year that they’re getting financing.
For example, if they get financing for one parcel and they start development on it and they’re making reasonable efforts, they’re obviously covered, then, under section 41. But if they’re leaving the other two pieces vacant, then they would pay the vacancy and speculation tax on those parcels.
If they then move to get financing for the other parcel, then again, in the year that they’re getting financing, that’s showing activity. Therefore, they would be covered by the exemption.
The Chair: I just wanted to wish a special happy birthday to the member for Prince George–Valemount. May she enjoy another trip around the sun and be as much of a whipper-snapper as she wants to be.
Hon. C. James: Noting the hour, I move that the committee rise, report progress and seek leave to sit again.
Motion approved.
The committee rose at 6:49 p.m.
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