Orders of the Day

Hon. C. James: I move that the House, at its next sitting, resolve itself for this session into a committee to consider the supply to be granted to Her Majesty.

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED
FOR THE SERVICE OF THE PROVINCE

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2020, and a supplement to the estimates for the fiscal year ending March 31, 2020, recommending the same to the Legislative Assembly.

Hon. C. James moved that the said message and the estimates accompanying the same be referred to the Committee of Supply.

Motion approved.

Budget Debate

Hon. C. James: I move, seconded by the hon. Premier of British Columbia:

[That the Speaker do now leave the Chair for the House to go into Committee of Supply.]

I’d like to begin by acknowledging that we’re on the traditional territory of the Songhees and Esquimalt First Nations and give a warm welcome to everyone who’s here today — the Indigenous leaders, parents with young children, students, workers, seniors, mayors and council, current and former MLAs and MPs, members of the press and, of course, the people who might be listening from home or work.

I want to also say thank you at the start to all those who wrote and took part in the Select Standing Committee on Finance’s budget consultations. Thank you, as well, to the members of the Green Party caucus, who helped shape our work through the confidence and supply secretariat.

Thank you to the many people who wrote letters, stopped me on the street and engaged me on line. Your ideas and your voices are helping make life better for people in this province.

For each and every person who reaches their full potential, they get there because the people around them care. They care about the places that have shaped their lives and the opportunities they’ve had to succeed. That’s certainly true for me as Finance Minister.

I grew up in a house with open doors. My old family house is just a few blocks away from the Legislature, on Lewis Street in James Bay. It’s a rambling, seven-bedroom house that, over the decades, was home to my family and extended family, including dozens of foster children.

I knew I’d have trouble getting through this.

I grew up in that house, and I later raised my own family there. The road out front sported constant games of street hockey. The nearby beach was a stretch of sand that we were certain belonged to all of us, and the backyard was always full of kids and of laughter. Dinner hour in our family was animated with discussion, and then a wave out the door, as family headed off to a volunteer meeting, to support a cause or to help out a neighbour.

I lived with my grandparents and my mom. They never lectured us about why we dedicated our time to people. It was just part of our everyday life. That home on Lewis Street showed me the importance of taking care of one another. I saw firsthand that often all it takes to change a person’s life is an opportunity paired with a hand up. Those values of caring, of opening doors, of recognizing that everyone has something to contribute, of living within your means and of sharing what you have — those are the values of the people of this province, and those are the values that they expect from their government.

But I have to say that under the former government, those values were often forgotten. Opportunity became further out of reach for most, while a few at the top flourished. We became a province that despite thriving economically, allowed the people who power our community to fall further behind.

Over the last decade, many British Columbians started to accept that this is just the way it is. Hard-working middle-class families could no longer afford to own their own home, and the cost of child care could stop them from starting a family or going back to work. Young people graduating with huge amounts of debt were faced with the difficult decision of moving to a different province they could afford to live in. Years of cuts meant that people couldn’t access the health care or the education that they need and deserve.

[1:45 p.m.]

The past government made the choice to make life easier for the few at the top while everyone else struggled. People of this province were told that they had to choose between a strong economy or investments in people. But the truth is that we can and we must have both.

That’s a lesson I learned at my house on Lewis Street so many years ago. Success really doesn’t mean much unless it’s paid forward to help others. I’m proud to announce that Budget 2019 does just that.

Your government is building a strong economy and balancing the budget, creating a foundation upon which people will thrive. We’ve shown that putting people first is the responsible thing to do. It’s good for people, good for our economy and good for our province.

One year ago we tabled our first full budget. It put people back at the centre of government’s work. After 16 years of cutting services and prioritizing the few at the top, Budget 2018 finally offered a hand up for middle-class British Columbians, who’ve been left on the outside looking in.

Nothing demonstrates this more clearly than the housing crisis. The last government chose to look the other way as the housing market spiralled out of control. The crisis left a generation of young people believing they’d never be able to afford a home or raise a family here. Teachers, carpenters, small business owners could no longer afford to live in the communities where they worked. Seniors and students ended up living in shelters or, in some cases, in cars. This is wrong in a province as rich and as prosperous as British Columbia.

After years of neglect, Budget 2018 took decisive action to begin to address the housing crisis. We introduced our 30-point plan, because every person in our province deserves a place to call home. We’re leading the country in our work to ensure that housing is actually used to house people rather than being a resting place for foreign capital or, even worse, money laundering.

That’s why we introduced important measures to curb speculation and foreign demand in our housing market. That’s why we’re ending the hidden ownership of property and closing loopholes in the presale condo market. And that’s why we’ve made the largest investment in affordable housing in B.C.’s history, more than $7 billion over ten years. That means building 114,000 new affordable homes for people across this province.

We’re also working to ensure that B.C. is a fair, affordable place for renters. We cut the annual allowable rent increase by 2 percent, helping 600,000 renters in our province. We closed the fixed-term and geographic loopholes, giving households more protection from unfair evictions and rent increases.

Tackling the housing crisis isn’t just about making life more affordable for people. It isn’t just about making it easier for businesses to find the workers they need. It’s about restoring a sense of hope, a sense of optimism for people in our province.

For young families, housing is one challenge that they’ve had, to make a life in British Columbia. Another one is child care. Too many parents have been unable to find quality child care for their children. Even if they were lucky enough to find a spot, the costs could be overwhelming.

Parents are struggling to choose between their family and their career, which is not a choice that any young family should have to make. That’s why, in Budget 2018, we took an enormous step forward, making the largest investment in child care in B.C.’s history, transforming child care and changing families’ lives for the better.

At the centre of this plan, we launched the affordable child care benefit, providing the majority of families in British Columbia with up to $15,000 per child, per year, so that people could afford child care in B.C.

We also delivered an immediate fee reduction for parents, bringing the total benefit to nearly $20,000 per child, per year. To deliver the quality care our kids deserve, we’re creating 22,000 new licensed child care spaces across this province, and we’re growing the number of early childhood educators, with access to training and fair wages.

Together these initiatives mean tens of thousands of B.C. families can finally access quality affordable child care, and they’ve set our province on a path towards a made-in-B.C. universal child care system.

[1:50 p.m.]

Budget 2018 was the first full budget in over a decade that put people first and started making their lives better. As a government, we’re delivering on our commitment to the people of B.C., because together we need to restore a sense of hope and opportunity.

Today with Budget 2019, we find ourselves standing at a crossroads where we get to choose our path forward and think about what B.C. will look like in the next ten, 20, 50 and even 100 years. And that is the starting point. It acknowledges, in Budget 2019, that a truly prosperous economy needs to work for everyone. It needs to make life better for people today and ensure that our children have the opportunities they need to meet the challenges of tomorrow.

It looks ahead into the 21st century to unlock the potential of a green economy. It asks ourselves: what kind of environment, province do we want to live in, and what kind of world do we want to leave our children and grandchildren? It works to lift people up who for far too long have been left behind.

B.C. is in a strong position. We can be optimistic and deliberate about how we chart our course from here. Budget 2019 continues on the transformational path that was set out in the past year and a half. It’s about creating opportunities for you, your neighbours, your children, your friends. It’s about opening doors to a good education, quality health care, secure housing and a good job. It’s about making life better for British Columbians in every corner of our province.

Everyone in B.C., regardless of their background, wants life to be more affordable. Our new government has been hard at work putting money back in people’s pockets and lowering costs. Budget 2019 continues to do just that. One of the first things we did as a government was to get rid of tolls on the Golden Ears and Port Mann crossings, saving tens of thousands of commuters $1,500 a year. We gave more than 22 million passengers travelling on B.C. Ferries a break by freezing and rolling back ferry fares.

We put an end to the past government’s scheme of hiking MSP premiums year after year on middle-class families. We made a different choice. We immediately slashed MSP premiums in half, undoing a decade’s worth of middle-class tax increases from the former government. In Budget 2019, our government is moving ahead with the full elimination of MSP premiums. This will save individuals $900 a year in taxes and families $1,800 a year. At $2.7 billion, this is one of the largest tax cuts for people in B.C.’s history. It was long overdue.

Eliminating MSP premiums is just the beginning when it comes to making life more affordable. Our government believes that every parent should be able to give their kids a good start in life. We believe that no child should be forced to go to school without a lunch or school supplies. No child should be denied an opportunity to play sports or be in band because their family can’t afford the equipment.

To make sure that every child has the opportunity to thrive and to provide more help to parents raising a family, I’m proud to announce that Budget 2019 introduces the new B.C. child opportunity benefit. The child opportunity benefit is a historic investment in the people of our province that puts more dollars directly back in parents’ pockets.

This benefit gives supports to families for every child they have up to the age of 18. For the first child, the benefit will be as high as $1,600 a year. For a family with two children, the benefit rises to $2,600. That number continues to increase for larger families. For anyone who has raised a child, they know how transformational this support can be, from the ability to put healthy meals on the table to buying your child a good winter coat.

That kind of support is going to make an incredible difference. In total, the B.C. child opportunity benefit will put nearly $400 million a year back in the pockets of hard-working families.

[1:55 p.m.]

In Budget 2019, we’re committed to making life better for all British Columbians, including the most vulnerable. Too many people in our province are just a paycheque away from poverty. When family budgets are squeezed, even a small setback can lead to a crisis. Too many people in this province feel stuck, worried life will never get better for them or their children.

That’s why I’m proud to announce that our government is investing over $1 billion in Budget 2019 to lay the groundwork to make sure that every person can reach their full potential. As I mentioned, the centre of this work is the B.C. child opportunity benefit, but that’s just one part of our work.

Our government — one of the first things we did when we were elected was to increase income and disability assistance rates by $100 a month. Today, in Budget 2019, we are adding more support by raising those rates by an additional $50 a month, bringing the total increase to $150 a month or $1,800 a year. This means more money for groceries and life’s basic necessities.

But we know more needs to be done. We need to make income and disability assistance more accessible, so we’re also investing $26 million to make these benefits more fair and respect people’s dignity. This will mean examples like allowing people on income assistance to keep their car, helping them get a piece of ID that they might need to secure a job or find a place to live.

We all know that without secure housing, it’s impossible to build a better life. To provide security for renters at risk of losing their homes, I’m proud to announce that we’re establishing the first-ever provincial program to fund rent banks in B.C. This means that renters on the brink of eviction will be able to get immediate short-term loans, because no one benefits when families are thrown out on the street. The province is taking action to make sure people have a roof over their head, and we’re making sure people can connect to the essential services they need that were previously out of reach.

The inability to access affordable legal services can often mean unfair treatment in the workplace or the inability to escape domestic abuse. That isn’t right, and it’s why we’re piloting a new network of legal clinics to ensure that B.C.’s most vulnerable citizens will have equal access to justice in this province.

No one who works hard for a living should be forced to live in poverty. Our government is giving the lowest-paid workers in British Columbia a raise by setting us on a path to reach a minimum wage of more than $15 an hour.

After years of neglect, Budget 2019 addresses serious inequities when it comes to caring for our most vulnerable in B.C. Community Living B.C. home-share providers will see the first increase to their compensation since 2009. Family-based caregivers like foster parents will also receive higher support payments starting April 1, their first increase in a decade.

I’m so proud to announce that extended families, like grandparents and aunties and uncles, who support children and keep them out of care will finally have payments that will be equal to foster payments in this province. We’re investing in care and in caregivers to help those who need it live a better life.

Breaking the cycle of poverty is about making sure people have the fundamentals: a roof over your head, food on the table, an opportunity to make life better for ourselves and our family. It’s also about opening doors for people so they can get the skills and get ahead.

In my 17 months as Finance Minister, one of the most meaningful moments for me was to confirm funding for our provincial tuition waiver program. Free tuition — for English language learning, for adult basic education and for B.C. students who are former youth in care — goes to the heart of our values as government. We’re seeing thousands take advantage of this opportunity.

[2:00 p.m.]

Our work to make learning more accessible to all doesn’t end there. Creating opportunities to learn is not just good for young people; it’s good for our province and good for our economy. From engineers to teachers, nurses to electricians, our students are the future workers who will ensure that our economy continues to grow. That’s why I’m proud to announce that our government is delivering on our commitment to eliminate interest from all B.C. student loans.

Students and young families with loans will save an average of $2,300 after graduation, so they can start their careers off on the right foot. Instead of worrying about growing debt, young people will be able to focus on learning, and graduates can put their energy into the next steps in life.

I believe this important work to create opportunities reflects the core values of British Columbians. We’re a diverse and generous people, and our government’s work must reflect those values that we teach our kids to live by. Budget 2019 is about lifting people up, giving everyone a chance to build a better life, because British Columbians take care of one another. We offer a hand up to someone when they’re in need. It’s the right thing to do. It’s good for people, it’s good for communities, and it’s good for the economy.

We’re grateful to live in a province with a thriving economy, and we all know that our province’s success comes from the hard work of people who call B.C. home. British Columbians have been clear. They don’t want a government that works for the few at the top. They want a government that hires teachers, that builds hospitals and lowers wait times, that ensures seniors are taken care of as they age.

As we know, there is nothing more important to British Columbians than their health and the health of their loved ones. That’s why we’re moving forward with investments in our health care system, to deliver better, faster medical care to people. It’s why we’re hiring 200 new family doctors, 200 more nurse practitioners and 50 more clinical pharmacists. These professionals are going to provide primary care for thousands of patients in every corner of our province.

To give people the health care they deserve, we’re building and improving hospitals across B.C., from North Vancouver to Langley, from Terrace to Penticton. We’re investing in seniors care, with hundreds of new beds and expanded diagnostic and treatment options for patients. That includes 37,000 more MRI exams and a new surgical strategy that will reduce wait times.

Universal health care is foundational to who we are as Canadians, but for far too many, the price of prescription medication is too high. I’ve heard from seniors who only take half of their prescribed medication, putting their health at risk, because they can’t afford it. That’s why we eliminated Fair PharmaCare deductibles for people with low incomes in this province, and in Budget 2019, we’re taking the next step by investing an additional $42 million to expand drugs covered by Fair PharmaCare so that people can access the medications that they need.

Our government’s also working hard to tackle B.C.’s overdose crisis and expand mental health services for British Columbians. One of the first things we did as a government was to invest $322 million to help stem the tide of the overdose crisis. This action is saving lives by expanding harm reduction, increasing access to naloxone and connecting people to life-saving supports, including treatment and recovery services.

We’re getting to work to improve the mental health services people count on. I’ve met with countless parents worried about their child’s well-being, and they didn’t know where to turn. It’s time that B.C. had a child and youth mental health system where families can ask once and get help fast. In Budget 2019, we are making a $74 million investment to start to build that system now.

We’re going to improve access to care and work to end stigma, so families can feel safe accessing the supports they need. Our kids and our young people deserve a complete system of care, where every door is the right door, because after a decade of neglect, people can’t afford to wait for the services they so desperately need.

This commitment to the well-being of our children doesn’t end at our health care system. Our children deserve a good education in safe, supportive classrooms. We’re making record investments to achieve smaller class sizes, improve schools and classrooms and give kids more support.

[2:05 p.m.]

In Budget 2019, that means over a half a billion dollars going to education to ensure our schools can deliver quality education to all British Columbians. That’s on top of the work we’re doing to hire over 4,000 new teachers, school psychologists and counsellors. It’s in addition to hiring 1,000 new education assistants to support children in the classroom. We’re investing almost $1 billion into new schools, additions, seismic upgrades and property purchases with the largest capital investment in B.C.’s history.

What have these investments meant? Over 17,000 students with safer classrooms because of seismic upgrades and replacement schools and over 11,000 children enjoying new school playgrounds just one year after the launch of our government’s new annual playground fund.

We’re investing in health care, in education and in fundamental services, because that’s what British Columbians have asked us to do. It’s good for people, it’s good for our economy, and it’s good for British Columbia.

British Columbia is a remarkable province of natural beauty, hard-working people and a thriving economy. For British Columbians, our mountains, rivers, forests and ocean are part of our identity, part of our way of life. They’re vital to our health, recreation and industries. Our environment not only represents us to the world; it represents who we are as a people. It’s something that all British Columbians feel proud and protective of, and it’s something we must preserve.

The increase in catastrophic wildfires and devastating floods over the last two years weigh heavily on hearts and minds. This past summer when B.C. was blanketed by a dark, smoky sky, I heard many people wonder out loud if this is what we can expect for our future. British Columbians from all political stripes recognize the threat posed to our province by climate change. The Intergovernmental Panel on Climate Change let the world know that urgent, large-scale changes from government, industry and individuals are all needed to address this crisis. It’s not too late to do our part. So we have chosen to act.

In December, working together with our colleagues in the Green Party caucus, we introduced CleanBC, our climate action plan, to put our province on the path to a cleaner, better future. We’re reducing climate pollution by shifting homes, vehicles and businesses away from fossil fuels towards clean electricity and other sources of renewable energy.

With CleanBC, we are building a strong, sustainable, low-carbon economy for the future. We’re protecting the place we call home. I’m proud to announce that Budget 2019 invests $902 million in CleanBC, the largest investment in climate action in B.C.’s history.

Budget 2019 includes a $41 million investment in incentives that will save families hundreds of dollars with clean energy retrofits for their homes. We’re investing $90 million to make electric vehicles more affordable, putting up to $6,000 in any British Columbian’s pocket who buys an electric car. This isn’t just good for the planet; it’s good for people’s pocketbooks.

We’re increasing the climate action tax credit for working and middle-class British Columbians. That means that families will receive payments of up to $400 per year. CleanBC will strengthen our province by opening doors to new, clean opportunities. B.C. is a destination for new investments and industries that share our goal of urgent climate action. First Nations, local governments and businesses are all partners on the path forward to reduce our reliance on fossil fuels and cut air pollution.

Now, we know that fighting climate pollution isn’t the same challenge for all communities. That’s why we’re investing $15 million this year to support remote communities in transitioning to clean energy solutions. For those communities facing the threat of wildfires, we’re investing $171 million in response, prevention, recovery and resiliency work.

We’re taking critical steps forward as we build a clean future for our children and our grandchildren. We’re doing our part in a way that makes life better for people and builds a strong economy.

[2:10 p.m.]

Central to our commitment to make life better for British Columbians is the work we’re doing with First Nations to achieve true and lasting reconciliation. We have an obligation to recognize injustices which continue to affect the lives of generations of Indigenous peoples.

Our commitment to do so is more than just words. Last year we made a historic $50 million investment in supporting the First Peoples Cultural Council and First Nations communities to revitalize Indigenous languages. We took the bold step of being the first province to partner with First Nations communities to build and operate over 1,700 units of social housing on and off reserve.

At the time, I told people that this was just the start. Today I’m proud to say that we’re taking another step forward in our government-to-government relationship. In partnership with the First Nations Leadership Council, we are co-creating legislation to implement the UN declaration on the rights of Indigenous peoples.

We’re taking action with legislation, but we’re also taking action with resources. I’m also proud to announce that Budget 2019 introduces the most substantial revenue-sharing agreement with First Nations in B.C.’s history. This commitment means over $3 billion in provincial gaming revenue will be shared with First Nations communities over the next 25 years, including nearly $300 million in the next three years.

This agreement is the result of decades of work and advocacy by First Nations to address the need for stable long-term funding in their communities. With these funds, First Nations will be able to invest in services and infrastructure for their communities — like child care, supports for new parents, housing, road upgrades, self-government and economic development. It’s the right thing to do on the path to reconciliation, because B.C. thrives when everyone has the opportunity to succeed.

On that note, I’m proud to say that British Columbia’s economy is thriving. We’re projected to run surpluses: $274 million, $287 million and $585 million, over the three years of the fiscal plan respectively.

Our debt-to-GDP ratio is at its lowest level since the financial crisis, and we’re the only province with a triple-A credit rating from all three major international rating agencies.

The operating debt has been eliminated for the first time in 40 years, and the Economic Forecast Council predicts that B.C.’s economy will grow by 2.5 percent this year and 2.6 next year, leading all of Canada.

As I’ve said, we’re at an important crossroad. We have the opportunity to lay the groundwork for what B.C. will become for our children’s children and invest in the opportunities people need today so we can continue to build a strong, sustainable economy for the future. To build that strong economy, we need a strong foundation. I’m proud to say that we are building that foundation — again, with the largest capital plan in B.C.’s history, a $20 billion investment in infrastructure in communities around the province. The construction of these schools, roads, health care facilities and post-secondary institutions will support tens of thousands of jobs.

We’re choosing to innovate, diversify and move British Columbia’s economy forward. Our government has facilitated the largest private sector investment in Canadian history — a liquefied natural gas project worth $40 billion, of which $24 billion will be spent right here in B.C. We did so under four important conditions: a fair return for B.C.’s natural resources; good jobs and training for British Colum­bians; respect and partnership with First Nations; and protections for our air, land and water.

[2:15 p.m.]

This project will produce one of the cleanest LNG facilities in the world. It generates funds for critical services while meeting our responsibility to guarantee clean air, land and water for generations. It creates opportunities for British Columbians and their children in the communities they call home. This includes up to 10,000 construction jobs and 950 permanent jobs.

This is a critical investment in our resource-based communities, who for too long saw their sectors neglected. I’m proud to say that Budget 2019 also invests in these communities. We’re working to rebuild a strong, healthy forestry sector, with a $10 million investment. And to support the people who work in the mining industry, we’re investing $20 million to ensure a fair, independent oversight body that protects workers’ health and safety.

While we work to strengthen resource industries like forestry and mining, we’re also supporting tourism, agriculture, manufacturing, tech and the creative economy. Budget 2019 invests $15 million in making B.C. a leader in the arts so we can open doors for our artists, writers and creators.

As we look to the future, we continue to create the conditions for B.C.’s tech sector to continue to thrive. Tech and innovation are growing rapidly, and to help B.C. become a global hub of innovation and connectivity, we’re investing $50 million to expand high-speed Internet all across this province. This investment will allow businesses to expand in dozens of rural and remote communities.

However, none of this work to advance and diversify our economy would matter without the skilled workers to do these jobs. That’s why we’re supporting 2,900 science and tech spaces at post-secondary institutions across this province.

Our government is working to set the stage for B.C.’s future economy. To that end, we’re also helping small business and entrepreneurs get ahead. We cut the small business corporate income tax rate from 2.5 to 2 percent, making it the second-lowest small business rate in Canada.

As of April 1 this year, we’re fully eliminating the PST on non-residential electricity, again helping businesses expand. And I’m proud to announce today that our province will be joining with the federal government to deliver tax reductions for businesses investing in machinery and equipment in British Columbia. In total, our contribution means $800 million in tax reductions for businesses over the next four years.

We’re working to create opportunities so that businesses and people can thrive, and we’re seeing the results. Unemployment is at record lows, and we continue to lead the country with a 4.7 unemployment rate. After years of stagnant wages, our strategy is paying off for British Columbians. Wage growth has accelerated to 4.1 percent, the highest rate in a decade. And the new child opportunity benefit and the full elimination of MSP premiums will put thousands of dollars back in people’s pockets.

The net result? A family of four making $80,000 will be paying 43 percent less in taxes than they did under the last government. When all of this work is put together, it’s clear that we’re making choices to put people first, because it’s good for people, it’s good for our economy, and it’s good for British Columbia.

It’s a true privilege to stand here today and to table our government’s second full budget, and it’s a privilege to work each and every day for the people of this province. When people voted for change nearly two years ago, they knew they could count on our government to roll up our sleeves and get to work.

Under the last government, we saw health and education underfunded and neglected. Fiscal mismanagement turned ICBC and B.C. Hydro into fiscal messes, and money laundering and real estate speculation were allowed to take root in our province.

[2:20 p.m.]

There is no shortage of work to do. We are doing, in our government, the heavy lifting to put B.C. back on track, where people can see hope on the horizon, where they can break out of a cycle of living paycheque to paycheque and access opportunities to make their lives better. We’re working to ensure that all British Columbians can live a good life.

Now, we know the problems we face won’t be fixed overnight, but looking back on the progress we’ve made and our next steps in this Budget 2019, the results are showing. Young people are getting the chance to start off their careers without being saddled by ever-growing debt. Families are getting the supports they need so they can afford child care and give their children the opportunities they deserve. Businesses have the assurance of a thriving economy, a balanced budget and some of the lowest personal income taxes in this country, and future generations of British Columbians will know that our province did our part to lead the fight against climate change.

There is a long way to go yet, but your government is committed to making your life better. As I look ahead to the future we’re charting, I can’t help but reflect on my past and where I came from. When I think of the work we’re doing to support each other and give people access to opportunities, I think back to my family home a few blocks from here.

Today the owners rent out the spare bedrooms to tenants. I’ve talked to students, newcomers to Canada and even a family with a newborn born in the house, who have loved the warmth of living there. After all these years, it fills me with happiness to know its door is still open to people. The old house reminds me of where I come from and where we are going as a province: through open doors that lead to a better life for all British Columbians.

T. Redies: It’s my privilege to deliver an initial response to Budget 2019 on behalf of the official opposition. Today, as the designated speaker, I’ll be providing a brief overview and will reserve my remaining remarks for a later time. I also want to note that my fellow critic, the member for Prince George–Valemount, will provide final remarks later in the debate. Along with my colleagues, we will present a detailed review of what exactly is in this budget. We expect it to be much the same as it was in Budget 2018, with the devil truly in the details.

Last year tax policies appeared made up on the fly. Constant revisions to the half-baked speculation tax have only contributed to the market uncertainty and confusion on the part of average homeowners. It seems this Finance Minister has cast her tax policy as a giant fishing net. Only a month ago 1.6 million British Columbian homeowners discovered they had to declare their ownership or be deemed speculators and forced to pay the NDP speculation tax. Now, we’ve been warning that the NDP would take us back to the 1990s. We just never thought it would be cable-company negative billing.

The employer health tax, or EHT, is another prime NDP tax attack. Without public consultation, without warning and without a mention during the election, the Finance Minister cast her net over taxpayers again with the EHT. This tax caught everyone off guard. Here in the capital, Victoria council has said the EHT is the reason it has held off on a planned boost to its police budget, and the chief says that it will result in the equivalent of nine police officers and civilian employees being cut this year.

Make no mistake: the police budget is going up by $1.8 million, but $700,000 of that is going into the Finance Minister’s net, paid for by increased taxes on Victoria residents. The Finance Minister’s net is catching municipalities in every part of the province, and not just for local governments. Businesses are facing a triple whammy. Not only are they paying the EHT and the MSP in 2019; they’re also paying higher taxes to pay their municipality’s share of the EHT.

[2:25 p.m.]

Now, what we didn’t see in Budget 2018 was an economic plan or a vision for the province, and Budget 2019 is no different. The distinct absence of any bold economic measure is not very reassuring to the private sector or the average British Columbian. We see no efforts to stimulate the growth of the private sector or to encourage foreign direct investment and grow high-paying jobs, only the continued growth of the public sector, now on a bloated path to grow by $13 billion since the NDP took over.

Business confidence, a barometer for business investment, is sagging in this province, with only 46 percent of businesses believing this government supports them. That figure has dropped from 78 percent just two years ago, according to the B.C. Chamber of Commerce.

We certainly didn’t see any concrete vision in the government’s lame-duck throne speech last week. In fact, if the government’s two new primary strategies for solving affordability announced in last week’s throne speech cover only cell phone bills and ticket scalpers, what reassurance can British Columbians take who are living paycheque to paycheque?

That bring us to today’s budget speech. While it appears this budget is balanced as of 2019 and through the next three years, we believe there is significant risk in this forecast that will put the budget in jeopardy.

The government is baking in $13 billion in spending since the NDP took office, which is a 26 percent increase over four years. Taxation revenues are increasing by $10 billion, including almost $6 billion in new taxes. This budget, importantly, also includes a one-time $1.6 billion federal transfer payment, which was based on a super-hot 2017 economy under the previous government.

Let’s be clear. It’s not a given that this transfer will be repeated in 2019, 2020 and beyond. If this transfer was excluded from this year, the government would be facing an $800 million deficit. And notwithstanding the increased uncertainty in the global economy, the NDP have actually reduced their forecast budget allowances over the next three years to a minuscule amount, despite razor-thin surpluses. There is no room for error. Surpluses are only a half of 1 percent of the planned spending of this government.

Further, based on ICBC’s $300 million in additional losses to forecast this year, we remain highly skeptical that ICBC can get back to the black in one year, which is essentially what this budget is forecasting in 2019-20.

Simply put, the math doesn’t work. We’re concerned that this government continues to be the tax-and-spend NDP of the 1990s on overdrive.

It’s very important that governments build in fiscal prudence, as one never knows how the global economy will end up. We know that the global economy is slowing, as is the B.C. economy, yet this government is increasing spending at a huge clip, and they are basing their budget on a hope and a prayer that the federal transfers will continue.

More importantly, there is virtually no reference to a jobs plan, to growing the private sector economy, to attracting foreign direct investment, to improving business competitiveness, to increasing exports, to growing high-paying private sector jobs that add to the tax base. There is nothing in this budget about that, and based on what we’ve seen in the last two budgets, should a fiscal challenge emerge for this government, which we think is highly likely, we have absolutely no doubt that this government will not hesitate to go back to their primary revenue generation source — the B.C. taxpayers.

This government is being far from prudent. To date, what have the middle class, the average person on the street, got to show for this government’s largesse on their behalf? Are their lives any better? Is life really more affordable under the NDP? Even the throne speech acknowledged that many people are still having to work two jobs just to make ends meet — this after two years of the government promising to make life better.

Interjections.

Mr. Speaker: Members, we shall hear the reply.

T. Redies: Has a lottery system for daycare services translated into universal savings for families across the province or just in randomly selected communities? We looked hard at the child care spending in this budget, and what we found was that there’s nothing new. The B.C. child opportunity fund that the minister announced doesn’t kick in until 2020. Based on our previous concerns, we are very skeptical that the government will be able to fund it without going into deficit.

Where is the $10-a-day daycare? Today only 2 percent of child care spaces in this province are at $10 a day. What about the $400 renters allowance? That appears to have disappeared into the ether of unfulfilled campaign promises.

[2:30 p.m.]

This government said they would be putting more money in your pocket. It’s more like more of your money into their pocket. As we’ve seen, this government truly believes it can spend your money better than you.

By next year, per-capita taxation — that is, the amount of tax paid on average for every man, woman and child in this province — will have increased by almost $1,100 under this government, net of the MSP elimination. Now, that is the average. Some people will be paying less, but the large majority will be paying more in tax. How is this making life more affordable for British Columbians?

After two years of the NDP, where are the affordable homes in Metro Vancouver? This government’s housing policy has certainly led to the plummeting value of the most expensive homes in B.C., by probably 20 to 25 percent, depending on the area. Unfortunately, they still remain well beyond the reach of the average British Columbian. So if the Finance Minister wants to take credit for making luxury homes more affordable for rich people, by all means, Minister, take a bow.

To date, housing prices in more affordable markets in Vancouver have only increased in price. From Chilliwack, where prices have risen by 11.2 percent in 2018, to the Fraser Valley and Victoria, where prices have increased by 7 percent or more, for the average middle-income earner, homes have just become more expensive since the NDP took power. In black and white, this budget shows that housing starts will drop substantially in each of the next three years. Apparently, everyone except the NDP knows that adding supply is a key factor in improving housing affordability. Why is it so hard for this government to understand that they are one of the biggest culprits in the lack of affordable housing in B.C.?

While British Columbians are struggling to heat their homes through an extended cold snap this winter, they can take cold comfort in the fact that this budget contains the second of four consecutive increases to the carbon tax, which will increase by 67 percent under this government. The carbon tax will generate $6 billion over three years, dramatically increasing gas prices, heating costs and, of course, the cost of doing business, at a time when B.C. has already lost its competitive advantage.

You can imagine our surprise when we discovered in this budget that out of this $6 billion, only $900 million is being invested in the CleanBC green initiatives. The rest is going into general revenues. Further, 45 percent of this money is unallocated or has no detailed plan regarding the expenditure. It’s clear that this is a slush fund to keep the leader of the Greens happy. For a government that claims to make life more affordable, British Columbians are wondering if they can afford any more largesse from this government.

Life is not more affordable for most British Columbians two years into this NDP government. No, from house prices to gas prices to car insurance to groceries, life is not more affordable under the NDP. Far from it. The NDP minority government, backed in full by the Green Party, has now been in power for two years. Instead of outlining a discernible pathway to sustainable economic growth, this government appears stalled at a crossroads, stalled in a mid-life crisis with no plan to create the higher-paying jobs that are needed to address affordability, no plan to stimulate business investment in our province, a growing and punishing tax burden on employers in B.C. and no incentives to make B.C. more competitive in global markets.

Today we see a government that is almost catatonic on the economy, perhaps relying solely on one LNG project that was started by the B.C. Liberals and no economic plan of their own. Instead, we have a government that seems to think that economic policy is about growing public sector jobs and paying off the unions that got them elected. They’ve been blindly spending the surpluses left them and taxing British Columbians more and more, thinking that this party will never end.

The government can’t keep going to the piggy bank of the roughly 2½ million people in this province who pay tax. They’re already taxed to the hilt. We know global and provincial growth are slowing. Housing starts are down. Housing sales have cratered, and we can already see the impact on the government’s property tax revenues. The party may not be over, but it’s nearing midnight.

We’re left wondering: just how is this government going to deliver on its many unfunded promises to British Columbians? It’s certainly not clear from our perusal of this budget, and I don’t think it will be clear to British Columbians.

I will conclude now and ask to reserve my remaining time for tomorrow, as we adjourn debate.

T. Redies moved adjournment of debate.

Motion approved.

[2:35 p.m.]

Introduction and
First Reading of Bills

BILL 5 — BUDGET MEASURES
IMPLEMENTATION ACT, 2019

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2019.

Hon. C. James: I move first reading of Bill 5, Budget Measures Implementation Act, 2019. The bill amends 12 statutes in order to implement many of the tax measures in Budget 2019.

To make sure that every child has the opportunity to thrive, effective October 1, 2020, the Income Tax Act is amended to replace the early childhood tax benefit with a new B.C. child opportunity benefit, providing hundreds of millions of dollars each and every year to families with children.

The Income Tax Act is also amended to extend or make permanent several tax credits. For example, the mining flow-through share tax credit is made permanent. The mining exploration tax credit is made permanent. The training tax credits are extended for one year. The shipbuilding and ship repair industry tax credit is extended for three years. The farmers food donation tax credit is extended for one year.

The Income Tax Act and the Small Business Venture Capital Act are amended to make several changes to modernize and enhance the small business venture capital tax credit program. These changes will help ensure that the program continues to meet the needs of B.C.’s business community.

The Motor Vehicle Act is amended, effective July 1, 2019, to enable Metro Vancouver mayors to increase their motor fuel tax by up to 1.5 cents per litre on gasoline and diesel in the TransLink service region, at the request of the Mayors Council.

Finally, a number of statutes are amended to improve tax administration through enhanced enforcement and information-sharing provisions and to ensure necessary consequential amendments to various statutes.

Motion approved.

Hon. C. James: Now I’ll move that Bill 5 be placed on the orders of the day for second reading at the next sitting of the House after today.

Bill 5, Budget Measures Implementation Act, 2019, 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.

Tabling Documents

Hon. C. James: I have the pleasure to rise to table government’s overall strategic plan and the Budget and Fiscal Plan 2019-20–2021-22, which together fulfil the requirements of sections 7 and 12 of the Budget Transparency and Accountability Act. I also table, on behalf of the ministers responsible, service plans, as required under section 13 of the Budget Transparency and Accountability Act.

The service documents are presented in two binders. The first binder contains service plans for the Office of the Premier and 20 ministries. The second binder contains service plans for 27 service delivery agencies and Crown corporations. The second binder also includes a listing of organizations that are exempted from the service plan requirements and identifies two new exemptions from section 13 of the Budget Transparency and Accountability Act.

Presentation of Estimates

SUPPLEMENTARY ESTIMATES FOR THE
FISCAL YEAR ENDING MARCH 31, 2019

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: supplementary estimates for the fiscal year ending March 31, 2019.

Hon. C. James moved that the said message and the supplementary estimates accompanying the same be referred to the Committee of Supply.

Motion approved.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 1:30 tomorrow.

The House adjourned at 2:39 p.m.