Fourth Session, 41st Parliament (2019)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, April 4, 2019
Afternoon Sitting
Issue No. 232
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day | |
On the amendment | |
Proceedings in the Douglas Fir Room | |
THURSDAY, APRIL 4, 2019
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this chamber, I call continued third reading debate on Bill 10. In Section A, the Douglas Fir Room, I call continued estimates debate for the Ministry of Jobs, Trade and Technology.
A. Weaver: I rise on a point of order. I would suggest we check quorum quickly.
I notice that some opposition members are coming in. I believe we now do have quorum. So I will remove the point of order.
Mr. Speaker: Thank you. Quorum is present.
Third Reading of Bills
BILL 10 — INCOME TAX
AMENDMENT ACT,
2019
(continued)
A. Olsen: I rise to continue the debate here at third reading on Bill 10. I recognize that we’ve had a protracted experience here with this bill.
[J. Isaacs in the chair.]
It is an important discussion that we’re having in this province right now and that we’re having in this House on behalf of the people of this province. I’m speaking today at third reading to ask my colleagues to reconsider. I voted some dozen times on this bill. That is a unique situation, in which I and my colleagues from Cowichan Valley and from Oak Bay–Gordon Head have asked for the members of this place to vote numerous times on this bill because of the importance of the decision that we’re making.
During the second reading debate of this, I raised some very substantive issues around climate change. I discussed the deep concerns that I have with adding the single largest point of emissions in British Columbia — or, indeed, in the Canadian context — to a situation in which we’ve been told, very clearly, we can’t add more emissions. Indeed, we have to find ways to reverse the situation that we have. We have to find ways to reduce the amount of emissions.
I highlighted the power of our youth with the youth climate strike. We see, on the very steps of this Legislature and at legislative and parliament buildings around the world, the youth standing up and asking their legislators to make different decisions than the decisions that we have in front of us and that this House collectively, aside from the three Greens, has made a dozen times now on this bill.
My colleagues moved three amendments at second reading stage of this debate. We’ve called division at every single section of this bill. We’ve been very deliberate in that, because we’re asking our colleagues in this place to consider the impact that this decision is having. I get here at third reading, in speaking to the bill that we have in front of us, and I reflect back on the committee stage of this legislation. I mentioned this in my comments to the amendment moved by my colleague from Oak Bay–Gordon Head, and I’ll talk a little bit more about it now.
The reality is that as we moved section by section through this bill, the members of the official opposition — some folks that have been in this place for a very, very long time, extremely skilled legislators — pulled apart this legislation with the questions they asked in fine detail, and did an incredible job of highlighting the substantive challenges this bill has.
That is the role for the committee stage of this bill. It’s the role of the official opposition to deconstruct the bill we have. We do this on behalf of British Columbians so that indeed, British Columbians can be certain about the legislation this House is passing on their behalf, so that we can be certain about the kind of future this House is locking in not only for us as current legislators but for future legislators. The impact of this bill is going to impact the operations of this place for decades to come — four decades, as has been pointed out.
I raise my hands to the member for Abbotsford West, the member for Langley East, the member for Surrey–White Rock and the member for Oak Bay–Gordon Head. They’ve done a tremendous job of highlighting the substantive issues that we’re now faced with voting on here at third reading, in this bill — the issues that were not responded to clearly in the responses.
I want to raise my hands for the work that was done. I want to highlight, very clearly, that going through the papers, going through the debate that happened here at committee stage, I’m frankly shocked and disappointed with the quality of the responses that were given to the questions that were asked around temporary foreign workers — or the lack of responses given to very substantive questions — about agreements that may or may not have been signed and suggestions that we have to go outside of this debate.
We have to go outside of the debate at committee stage into a different room to find out information that should be forthcoming in this debate at this time when we’re voting on third reading of this bill, when we’re taking the time to pass this legislation, so that we can be certain that the commitments made by this government — the commitments to meeting climate targets, the commitments to jobs for British Columbians, the commitments to real partnerships with First Nations, the commitments to a fair return for British Columbians — these four conditions pushed forward by this government, will, indeed, at third reading here of this bill, have been satisfied through this debate.
I can say I am left with little satisfaction that, to the good questions that were asked, any answers were given. There were, indeed, responses, but they left a lot to be desired.
We’ve been critical of this legislation, all aspects of this bill, whether it be the natural gas tax credits, the changes in the calculations, the cost-of-natural-gas calculations, the administrative penalties, the natural gas sampling aspects of this bill, all the way through, which are highlighted in this bill.
We’ve definitely been critical about the decision of government to proceed with an incentive to attract an industry which is adding 3.5 megatonnes of greenhouse gas emissions to a climate, to an environment, that cannot withstand further emissions. Indeed, in order for to us to be able to live up to our commitments for climate action, we need to be reducing. From an environmental perspective, there’s very clearly a challenge. It was highlighted by the member for Oak Bay–Gordon Head, who stood a couple of times during the debate at committee stage — I was reading through it last night — with respect to the first condition of meeting our climate targets.
The responses to those questions…. The fact that we have to wait until June 30 for the Minister of Environment to complete his consultations with industry, the fact that we have to wait for that time or we have to canvass those questions with the Minister of Environment in a different House at a different time at a different section of the work that we do this in this place — at budget estimates — is really a troubling aspect of what’s gone on in this House this week.
The fact is that we have disconnected this information. We’ve disconnected the information about this bill and the benchmarks that are being set. I would imagine that probably LNG Canada is quite concerned about that. But I and my colleagues in the official opposition and my colleagues here in the B.C. Green caucus are also quite concerned about the fact that this has been disconnected.
That the information about those consultations, the information about the clean growth industrial incentives, needs to be canvassed during budget estimates should be deeply considering for all sides of this House. All 87 of us in this place should be very concerned that we’re not being satisfied with those very substantive and, in fact, important questions as to the aspect of this agreement.
One of the most frustrating parts through the documentation that I read last night was the interaction around temporary foreign workers — the documentation that the member for Abbotsford West highlighted and brought to the awareness of the people of this place. I thank him for that. We don’t necessarily agree on a lot, but on this, I have to raise my hands to the work that was done yesterday with respect to finding the documentation that an agreement was signed that perhaps opens up LNG to accessing more temporary foreign workers.
Indeed, and I know that my colleague would like to speak to this a little bit more, we got emails from people who are working in the area up there, who own companies that are working on LNG. They’re very concerned that while their people are sitting idle, folks are coming from all across the province to work up there and getting jobs before locals. I know that there’s more about that coming.
The fact that we have to go to the Jobs, Trades and Technology debate on estimates to get information about the temporary foreign workers contract that potentially the Minister of Jobs, Trades and Technology signed…. That’s going on in a different room right now, completely disconnected from the debate around Bill 10. That’s going on in a different House.
We’ve had deflections on jobs. We had deflections on the clean growth industrial incentives program. So now what we have in front of us is Bill 10, which has survived dozens of votes during second reading and all the way through — stage by stage, section by section — at committee stage. We have a bill that survived all of that with very little information informing us as to what it is that we’re actually voting on.
I’ve been around the local government tables, now the provincial government tables, for a decade. There’s nothing that drives me more crazy than when I’m sitting at these tables looking across at the people around me and knowing that the homework wasn’t done. And in some cases, the information was all in front of them. That’s really a frustrating experience, when everybody around the table had access to all of the information, yet people were not reading their agendas and reading the briefings and reading the information.
That’s not the situation we have here. The situation we have here is that the good work of my colleagues in the official opposition has been frustrated. The information they tried to seek to get clarification…. They were told: “In order to get it, you have to leave this House, go to another House and have a different discussion.” It won’t be on the record as part of the second reading and committee stage debates. It’s not, in fact, available to inform us about the decision that we’re going to be asked to make.
When we had the decision in front of us as to whether or not we were going to indeed stand and debate at third reading, while we have stood at every opportunity to oppose this bill, it became very clear to me that, indeed, yes, it’s necessary to stand at third reading and have this debate. It’s necessary to challenge the assumptions that have been made, the statements that have been made that: “Yes, trust us. We’ve met our climate targets.”
Well, how? We have a CleanBC program that’s got 75 percent of the way there, meaning 25 percent of it, a quarter of it, is yet to be identified. So how can we say that we’ve met it? The benchmarks for the clean growth industrial incentive have not been yet set. We have until June 30 in order for those to be set. So we’re being asked — members on all sides of this House — to vote on a bill which, in fact, we don’t actually have all of the information from.
In some respects, I think that the frustration around the table when I could identify that my colleagues had not done the homework that was in front of them…. I can set that aside for this debate. What I can’t set aside for this debate is that we are about to vote in favour of a bill — we’re not, but the vast majority of the people of this place are — in which the information has not been made available.
I ask: how can we possibly turn and say to British Columbians, “Yes, we’ve done a responsible job,” if, in fact, we haven’t taken the time to ensure the information is in front…? That’s the reason why, at this stage, I’m going to be moving a hoist amendment to this bill: because I believe that, in fact, there is an opportunity for us to be informed.
I’m going to be moving the hoist amendment, because I think that we have the opportunity to get the information. We have the opportunity to be able to ask the questions that need to be asked if there is more time and to get the answers to the questions that have been asked that have been left unanswered.
I’m not necessarily even asking that I be satisfied. I’ve got quite strong opinions about the direction we need to be taking on LNG, and I know that’s not lost on any of my colleagues in this House. I recognize I may not be satisfied on this, but I think there are members of this place that are far from satisfied with the answers they’ve been given. I ask them to stand with us and take this opportunity to delete….
I’ll move this amendment:
[That the motion for third reading of Bill (No. 10) intituled Income Tax Amendment Act, 2019 be amended by deleting the word “now” and substituting “six months hence.”]
Deputy Speaker: Thank you, Member. Please proceed with your remarks on the amendment.
On the amendment.
A. Olsen: I have had the opportunity to speak a couple of times here at third reading — to the amendment moved by my colleague from Oak Bay–Gordon Head and then now to my comments at third reading.
I’ve been quite clear that I feel that there have been substantive questions raised. The challenge that I would like to lay down here, for all of my colleagues in this place, is if we were to set aside the politics of this and look at it from just a business perspective, would we be entering into providing these tax breaks?
I recognize the Minister of Finance has been saying this is a long conversation that’s been happening. I would like to say that the long conversation that’s been happening has been outside of this place, for the most part. It’s only been in the last couple of weeks that the long conversation has been happening in this place. The people of British Columbia deserve to have these questions answered on the record, and they deserve to have these questions answered on the record in light of the fact that we are committing them to 40 years.
Forty years, four decades. I am 43 years old — I think. I might be just close to that. I’m wondering: how old am I?
Anyway, the point I’m making is that it’s my lifespan, essentially. The point I’m making is that it’s my lifespan that we’re committing to. And a lot has changed in my lifespan. I remember my mom was debating, as the PAC chair, as to whether or not we should just agree to the Apple IIe’s that they were offering to our school for free.
That’s a long, long time ago we were having that debate. A lot has changed. A lot has happened. Do we really want to be leaving these gaps open? This is a long conversation. This is a long conversation that we’ve had.
Indeed, the members across the way in the official opposition started this conversation a long time ago. The depth of knowledge that the member for Langley East demonstrated yesterday in his questioning of the Minister of Finance was substantive. That conversation has been going on a long time.
I ask the members across the way…. In light of the fact we’ve gone this distance, in light of the fact we have a final investment decision that has been made with so many questions left unanswered, I think we owe it to the corporate interest that’s made this agreement to us that we seek those answers out and get them, for them and for the people of British Columbia. Primarily, that’s the most important group I’m responsible for standing up for, the people of British Columbia.
I ask the question: what is six months? If in fact this is everything that it’s been said that it is, then we should pay respect to the people of British Columbia and seek out that information. And those questions were good questions. The answers left a lot to be desired.
For me, I believe there is a really good case to be made here. We are not going to be able to get the information around the temporary foreign workers and just exactly how many jobs are going to be British Columbian jobs, how many jobs are going to be coming from outside this jurisdiction. Indeed, we’re not going to be able to get the answers about the clean growth industrial incentive until at least June 30, 2019. Even as long as December 31 was the answer given by the Minister of Finance. So I think actually there is a very good case to be made.
This is my last opportunity to speak to this bill, so I’ll just leave it at this. I place the challenge in front of my colleagues. I place this challenge in front of them. Do they want to be able to say that yes, in fact, we have supported a good deal? If so, then we have the responsibility to make sure that we have all the information to be able to say that.
The case becomes extremely weakened when the points have been made that in fact we don’t have all the information, yet we vote for it anyway. So I ask my colleagues to really deeply take this time to consider the fact that we have not been given answers to the questions that we’ve asked and that we have an opportunity right now to take the six months, to reconsider this in six months and to say: “Yeah, you know what, member for Saanich North and the Islands, we did get the answers. You might not like them, but we got the answers.”
I think that that’s a worthwhile endeavour, to make sure that for the next four decades, we’re able to say to the people of British Columbia: “Yeah, we did the work.” And we didn’t just do the work in the back rooms here. We did the work where it’s supposed happen — under the lights, in front of the cameras, on the record, in Hansard so that you can actually go and see the information. Right now, I’ll tell you, the information that’s on Hansard…. I would imagine it’s going to cause British Columbians some deep, deep concern.
Thank you, Madam Speaker, for the opportunity to speak to this, and thank you to the members of this House for listening.
A. Weaver: I rise to speak very briefly in support of my colleague’s, the member for Saanich North and the Islands, hoist amendment on the bill.
My colleague, I think, has made a very, very compelling case as to why we need the additional six months’ time to reflect upon it. More so, I would suggest, members in this House have not received the information that they need to make a decision. I’ve heard many talk about the importance of evidence-based decision-making. It’s something that’s fundamental to who we are as members of the B.C. Green caucus. I’ve heard others in this place talk about the importance of that. Yet we know that the information, the evidence on which to make such a decision, has not been presented to us here in committee stage.
We know that this bill has three components to it. It has a component to repeal the Liquefied Natural Gas Project Agreements Act. There’s a component to repeal the LNG Income Tax Act. And there was, at the same time, a component of the bill to retain the tax credit, the corporate welfare on steroids, that existed within the LNG Income Tax Act.
We know, in what has got to be described as a bizarre set of things that have happened here, that we’ve broken precedent in this place. We’ve broken historical precedent in Westminster parliamentary democracies during the course of these debates, not once, but twice during the course of these debates. That, in and of itself, I would suggest, should give us pause to reflect upon this bill with the additional time that we would get through this hoist amendment.
We had an amendment put forward by the B.C. Liberals, an amendment to quibble about where the deck chairs on the Titanic should be prior to the Titanic sinking to the bottom of the ocean. We had an amendment that actually led to a tie vote, 41 to 41. With respect, in the long, rich tradition of Westminster parliamentary democracies, we had a precedent set that goes directly against the historic nature of this building where a Chair votes out of conscience in a partisan manner with the opposition.
This is outrageous. It’s outrageous, given that we, at the same time in the U.K., had the ruling set out why the Speaker in the U.K. ruled with government. That is the role in a Westminster parliamentary democracy of a Chair, to ensure that the debates flow forward. That was our first precedent-setting decision — very, very unfortunate. But that was not the only one.
The second one, too, gives reason to pause as to why we need to reflect upon this bill for a few more months, because clearly the process in this place leaves a lot to be desired. That was my colleague from the Cowichan Valley, who spent many, many hours going through the media to determine what information was missing, in order to inform members on the decision that was going to be made today — information that was not present, not given during committee stage, information that she took upon herself to find and bring forward. She was shut down at third reading. The member was told to sit down. Her voice was silenced. Outrageous.
Two times during the course of the last 48 hours — two times we’ve had such statements. That is why it’s critical for us to reflect upon this.
With that, I’ll take my place and suggest to members opposite that this is the time for us to actually reflect upon the implications of this. I certainly hope we’re joined in voting in support of my member’s amendment.
S. Furstenau: I appreciate the opportunity to support the amendment put forth by my colleague from Saanich North and the Islands, an amendment that delays this bill by six months.
I would suggest that given the enormity of the decision being made with this legislation, given the very significant impacts that we are actually choosing to bring into the entire world with approval and, even more gallingly, the subsidization of the single largest point source of emissions in Canada’s history, at a time when, as I was pointing out this morning, on a daily basis, every single day in the media the news about the impacts of climate change is getting more frequent and more alarming….
While we were debating this bill in this House, the first city was lost to climate change. While we were debating this bill in this House, scientists came out to identify that we will be seeing far more tropical infectious diseases in Canada because of the warming. While we were debating the bill in this House, we learned that Canada will, in fact, warm at twice the rate as the rest of the world and, in fact, northern Canada and B.C. even faster than that. While we were debating the bill in this House, we learned that Canada, overall, is failing to address climate change while at the same time we are some of the biggest per-capita emitters of greenhouse gases in the world.
This absolutely requires a pause. This absolutely requires of us, all 87 of us, to reflect at length and in depth on the choices that we’re making in this House, the implications of those choices and the signals that we are sending to the rest of the world and to future generations.
If we look even at the four conditions that have been laid out…. A fair return for the resource. There’s no way of guaranteeing that. How do we determine a fair return when we’re supposedly in a free market economy? We’re supposedly supposed to be letting the market determine what can and cannot be economically viable, yet we choose to insert ourselves, in the wrong ways, into this.
Respect and make partners of First Nations. Well, while we were debating this bill, the people up in Wet’suwet’en territory have announced that they’re going to be building a new camp to be protesting this. Not protesting; I take that back. They’re going to be building a new camp to be asserting their territorial rights. That’s happened while we were debating this bill.
The condition to protect the air, land and water. Well, while we were debating this bill, we got more information about the impacts of fracking from the doctors who have been touring this province and telling us that they are seeing symptoms and conditions up in the area where there is intense fracking in B.C., symptoms they can’t explain.
Rates of brain cancer, here on Daffodil Day, that far exceed statistical norms. Respiratory diseases, respiratory conditions, that they make a connection between flaring of gases and the expansion of these symptoms. That happened while we were debating this bill. Those doctors have been sharing their stories.
I think there is only one responsible thing for us to do at this point. I know we’ve been speaking for days now, the three of us. Our pleas and our requests and our arguments and everything we’ve brought forward — it has felt like they’ve fallen on deaf ears, yet we keep trying.
For us, this is a deeply distressing and sad time. We have this extraordinary province, these extraordinary potentials. Imagine what we could do with $6 billion. With the outcomes of those investments, we could be providing education and training opportunities to fill those 30,000 tech jobs that are unfilled in B.C. right now — jobs that could contribute to increases in medical technology, maybe jobs that would eventually be the source of solving cancer.
But we’re not. We’re not going to spend our $6 billion that way. So it is with a truly heavy heart that I, too, speak to this, which I think will be for the last time as well. While I recognize that this vote will likely go the same as every other vote on this bill has gone, I hope that our words have resonated with some of the members in this House.
I know that they will be recorded, and we will be looking back at them. I think what is important for us to communicate at this point is that this is a sad defeat, but in no way do we give up on what we believe to be an extraordinary potential and a vision for a different future for this province that isn’t about dragging us backwards into the 20th century.
On that note, I will hope that there will be members who will vote with us on this amendment to take six months.
Hon. C. James: Madam Speaker, thank you for the opportunity. I rise…. I’ll only speak for a couple of minutes. This amendment is basically the opportunity to push off for six months, as the previous amendment was, so I don’t think I need repeat myself. I think we’ve had a thorough discussion.
I say thank you again to the members who’ve taken part in the debate — and certainly my Green colleagues, who have raised their issues and their concerns. I understand they’re passionate about this issue. I understand their feelings about the issue. Will we be held accountable for this decision? No question. It’s why I felt so strongly about the four conditions we put in place and why I feel so strongly about being held accountable for those four positions.
We will, as a government, be judged by making sure that we move ahead with climate action. We will be judged by making sure that we put in place the good work that happened around CleanBC. We will be held accountable as a government for ensuring jobs are here for British Columbians. The job strategy, in fact, was released.
I understand the debate that occurred, but in fact, we do have a job strategy from LNG. We do have a track record around the work that’s going on for local first — B.C. residents, Canadian workers.
I think it’s important to note, as well, the work that has been done with First Nations. I recognize the work that the company has, still ongoing, with the hereditary chiefs, but there is work, as well, with the First Nations along the route as well.
Again, I come back to the importance of our climate action, so I will be speaking against the amendment.
Deputy Speaker: The question is the third reading hoist amendment of Bill 10.
Division has been called.
[Mr. Speaker in the chair.]
Mr. Speaker: Hon. Members, the question is the amendment “that the motion for third reading of Bill (No. 10) intituled Income Tax Amendment Act, 2019 be amended by deleting the word ‘now’ and substituting ‘six months hence,’” as put forward by the member for Saanich North and the Islands.
Amendment negatived on the following division:
YEAS — 3 | ||
Furstenau | Weaver | Olsen |
NAYS — 76 | ||
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 |
Malcolmson | Glumac | Cadieux |
de Jong | Bond | Polak |
Lee | Stone | Coleman |
Wat | Thornthwaite | Paton |
Barnett | Yap | Martin |
Davies | Kyllo | Sullivan |
Reid | Morris | Oakes |
Johal | Redies | Milobar |
Sturdy | Clovechok | Shypitka |
Hunt | Throness | Tegart |
Stewart | Sultan | Gibson |
Isaacs | Letnick | Larson |
| Foster |
|
Speaker’s Statement
RULES FOR THIRD READING DEBATE
Mr. Speaker: Hon. Members, before proceeding, I would just like to make a statement here, and that is I wish to state for clarity that the Chair has been fairly lenient with the third reading debate that took place on Bill 10 today. As the Deputy Speaker noted earlier, debate at third reading is not common practice in our House, though it is a decisive stage in the legislative process, and members are within their right to speak on debate on a motion for the third reading of a bill and to propose certain amendments as this stage of a bill’s consideration.
I wish to affirm that the direction provided by the Deputy Speaker earlier today was correct. Parliamentary Practice in British Columbia, fourth edition, states, at page 220: “Debate on third reading is limited to matters which are contained in the Bill.”
This is also reinforced in other procedural authorities. Erskine May’s 24th edition states, at page 595: “Debate on third reading, however, is more restricted than at the earlier stage, being limited to the contents of the bill.”
House of Commons Procedure and Practice, third edition, states, at page 792: “Debate at this stage of the legislative process focuses on the final form of the bill.”
The Deputy Speaker properly upheld this recognized practice.
Third Reading of Bills
BILL 10 — INCOME TAX
AMENDMENT ACT,
2019
(continued)
Hon. C. James: With that, I move third reading of Bill 10.
Mr. Speaker: The question is third reading of the bill.
Division has been called.
House Leaders, waive the time here?
Interjections.
Bill 10, Income Tax Amendment Act, 2019, read a third time and passed on the following division:
YEAS — 76 | ||
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 |
Malcolmson | Glumac | Cadieux |
de Jong | Bond | Polak |
Lee | Stone | Coleman |
Wat | Thornthwaite | Paton |
Barnett | Yap | Martin |
Davies | Kyllo | Sullivan |
Reid | Morris | Oakes |
Johal | Redies | Milobar |
Sturdy | Clovechok | Shypitka |
Hunt | Throness | Tegart |
Stewart | Sultan | Gibson |
Isaacs | Letnick | Larson |
| Foster |
|
NAYS — 3 | ||
Furstenau | Weaver | Olsen |
Hon. M. Farnworth: In this chamber, I call the continued debate in the estimates for the Ministry of Transportation.
Committee of Supply
ESTIMATES: MINISTRY OF
TRANSPORTATION
AND INFRASTRUCTURE
(continued)
The House in Committee of Supply (Section B); R. Chouhan in the chair.
The committee met at 2:31 p.m.
On Vote 43: ministry operations, $925,616,000 (continued).
Hon. C. Trevena: Before we get underway, we had a number of questions in our last get-together, and our get-together before, that were unanswered. I know that the critic had asked in our last get-together about whether he was going to get an answer. So I’d like to read into the record some of the answers provided and give us the opportunity to follow up.
One was transit-oriented taxes on transportation fuels. It was from the critic regarding the taxes and levies on transportation fuels and about the point of collection of these taxes. There is a comprehensive tax bulletin published by the Ministry of Finance. It is bulletin MFT-CT 005, just updated on April 1, which outlines the various tax rates on fuel.
The motor fuel tax is made up — as I say, this is about transit-oriented taxes — of both provincial and dedicated taxes. The provincial tax rate varies by region and by type of fuel. The proceeds for this tax go to general revenue, and the rates are listed in the bulletin. Dedicated taxes apply in certain regions in the province. They go to three organizations: the South Coast British Columbia Transportation Authority, which is TransLink; the British Columbia Transit Authority; and the British Columbia Transportation Financing Authority.
The current tax rates are as follows. South Coast British Columbia Transportation Authority, or TransLink, gets 17 cents a litre. British Columbia Transit Authority, which is assessed in the Victoria regional transit service area, receives 5.5 cents a litre.
BCTFA, the B.C. Transportation Financing Authority, receives 6.75 cents a litre. This is charged across the entire province, including the Sea to Sky region, the critic’s own area. A portion of the 6.75 cents per litre that goes to the BCTFA is used to fund transit capital across the province.
In regard to the question about the collection of tax, at the general level — without getting into the nuances of motor fuel taxation, which we obviously had a heated debate about earlier on today — security in the amount of the tax is applied at the time of the first sale of the fuel in B.C., after it’s manufactured in or imported into the province. There’s also a tax bulletin for fuel sellers available from the Ministry of Finance.
I would urge, if the member has any other concerns or questions regarding motor fuel taxes to direct them to the Minister of Finance during her estimates debate, which I believe are following ours in this chamber.
Then there was a request from the MLA for Shuswap about the intercity bus service, the Passenger Transportation Board and Rider Express. I know there was a lot of concern about that.
I would like to first correct the record regarding my response on my engagement with the Passenger Transportation Board. At the time, I said that I had written a letter, that the ministry had written a letter. That letter was not written, primarily because the Passenger Transportation Board took very swift action to address the issue without such a letter. They took the initiative, and the board and the province issued news releases about the fast-track process, to ensure that industry and the general public were aware of the new process.
In terms of the member for Shuswap’s specific questions regarding Rider Express and the state of the intercity bus operator, I can confirm that as of April 1, 2019, Rider Express is operating daily between Vancouver and Kamloops and is providing three round trips a week from Kamloops to Calgary along Highway 1, as per their licence requirements.
Rider Express does have an application before the Passenger Transportation Board to reduce its service, as the member knows. They have to apply both to have the service and then if they want to reduce it. As of right now, they are providing the service as outlined in their licence.
I can share that there have been a few issues with this particular service provider, including reducing service levels without Passenger Transportation Board authorization. But this has been rectified after a verbal order was issued from the Passenger Transportation enforcement officer late last year.
Finally, a question from the Transportation critic of the Third Party, for Saanich North and the Islands, regarding Highway 17 and a bus stop at Mt. Newton Cross Road. The ministry’s transit branch has already engaged with our highways department on this matter to ensure that Highway 17 is used to its full potential for all communities along the corridor and for both automobile and transit users.
There was a question from the member for Columbia River–Revelstoke on options for Golden. I can confirm that depending upon where Golden residents are wishing to travel, there are two options. One is the Interior Health bus, which is available to the general public, which makes a round trip between Golden and Cranbrook along Highway 95 twice a week. And as of April 1, 2019, Rider Express is providing those three round trips between Kamloops and Calgary, with a stop in Golden.
There was a question from the member for Fraser-Nicola, which was again about transportation options for residents in the Fraser Canyon. I really appreciate people’s engagement on this. This is very important, the safe, affordable ground transportation. The member was pointing out the challenges that rural residents have faced when it comes to transportation.
There has been another new applicant to the Passenger Transportation Board to provide service in the Fraser Canyon. On March 27 of this year — so just last week — the Passenger Transportation Board approved an intercity bus application from Gertzen Ventures to provide two round trips per week between Prince George and Surrey travelling on Highway 97 and one through the Fraser Canyon.
The member for Cariboo-Chilcotin provided a letter of support as part of the Passenger Transportation Board application, and Gertzen Ventures now has until April 15 — so just ten days — to obtain a licence from the Passenger Transportation registrar.
I hope that clarifies some of the questions. If there are any answers that weren’t given, we will follow up, either in writing or verbally, at our next session of estimates.
However, just as we start, I’d like to introduce the people who will be supporting me through this process. On my left is Grant Main, the Deputy Minister for the Ministry of Transportation and Infrastructure. On my right is Nancy Bain, assistant deputy minister for finance. Behind me on my left is Ashok Bhatti, who is the executive director for the southern region of the ministry. Then on my right is, first, Mike Lorimer, who is the executive director for the southern Interior region, and Kevin Richter, who is associate deputy minister with responsibility for highways.
With that, let’s move on.
J. Sturdy: Thank you for those responses, Minister. Unfortunately, we had a little emergency over here. We will read through Hansard so that we make sure we’ve covered all that we need to cover.
Interjection.
J. Sturdy: Because this is our third day now, I think we might as well extend it into four or five.
We will continue on here. We had started with northern and Interior highway issues, mostly focusing on various MLAs and the issues in their ridings. We will carry on with that, just to let the minister know in terms of staffing. Then we’ll move into the Metro Vancouver Highway 1 issues.
I’ll pass it on to my colleague from the Cariboo.
C. Oakes: I raise a question that I’ve canvassed multiple times with this minister. It’s been a year since West Fraser has faced a significant landslide as a result of the 2017 Plateau fire. It has been a year. The communities continue to be travelling a forest service road — the communities of ?Esdilagh First Nation and Buckridge.
We have over 200 people. We have a doctor. We have care aides. We have professionals and small business owners that have to travel that road every single day. Further, we have children that are getting on a school bus at 6:30 in the morning. They are travelling two hours each way to attend school.
My question to the minister. The community was advised by the Ministry of Transportation they would be receiving an update. First, they were told they would receive an update in September. Then they said they would get an update in the fall. Then it was delayed to late fall. Then the community was told by the Ministry of Transportation there would be an update in December. Then a communiqué went out to the community, and they were told the Ministry of Transportation would come out in January. That got moved to the spring.
The community continues to wait. It is appalling that local Ministry of Transportation staff are required because this minister or senior officials will not come to the community to answer community questions. When will the minister follow up, take leadership and come out and respond to the community’s concerns about when West Fraser Road will be fixed?
Hon. C. Trevena: I thank the member for the question, and I can quite understand the member’s frustration and that of her communities. I have had a number of letters from various people within the communities — the school district and so on. It is, as the member well knows, a massive problem and a massive fix. If there has been a lack of communication, that is unfortunate.
I can tell the member there is going to be a public meeting where senior staff will be attending on May 1. But just to give the member some comfort, I did write to her in the beginning of last month about what is being done on the road. The fact that it is…. As I say, fixing the main road is a major project. We have the equivalent of…. As the member I’m sure is well aware, 28 million cubic metres of soil slid. To put it in perspective, that’s 11,000 Olympic-sized swimming pools. I mean, it’s huge, what has happened.
The detour road, the road that is being used at the moment…. The member calls it a forest service road. It isn’t a forest service road. It is a Ministry of Transportation road. I underline that because there are different standards. Forest service roads have a very low standard. Ministry of Transportation roads have a much higher standard. I know that from my own constituency, where I have Indigenous people and communities with health care needs and schools and everything else at the end of forest service roads. They are frustrated because they don’t get the same standard as the ministry roads.
The roads the member’s constituents are using are ministry roads. Given that they’re ministry roads, there has been an increased level of service on those roads. We know children are travelling on them, and we know this is the only route that is available at the moment. So the ministry has put in that extra level of both maintenance and upkeep on them.
I can give the member that assurance, and as we speak…. This isn’t just waiting for the big fix to happen. We are working. I mean, as we speak, we’ve got geotechnical engineers working on the slide area, trying to find the best way forward. It’s a serious issue for the member’s constituents, and I recognize that.
C. Oakes: I do thank the minister for the information.
I am very pleased to be…. I will be making sure people in my community understand that on May 1, there will be a community meeting, and there will be senior-level representatives from the Ministry of Transportation. I think the greatest frustration is that there was a commitment to talk to the community, and that just has not happened in a year or short of a year. That’s the sense…. People need to be planning for their lives. I understand it’s a difficult project. They just need to have some answers. So I appreciate that.
I guess the question before that I’d like to bring up…. I raised in March the concern of the after-effects of what we saw with wildfires in the 2017 Plateau fire. Then we experienced the floods of 2018, and then we headed into another wildfire year in the same areas that continue to be decimated because of soil erosion, because of the hydrology changes. We had canvassed that at last estimates.
When we do not have the resources to address it, we find ourselves in situations such as West Fraser Road and the significant challenges we have. I imagine that project is…. I believe it’s at an estimate right now of about $95 million, so it’s a significant project to fix, and I understand that.
My question to the minister. One of the challenges that we have are culverts in the area. Many of our culverts were put in place in the 1960s and 1970s when the land base was significantly different, when the roads that were put in had different climate challenges than we have today. In the Cariboo region, we have 7,800 kilometres of roads and 40,000 culverts. What is the budget that currently exists for the province to be replacing culverts?
Hon. C. Trevena: I thank the member for her question. I think that the member, living in the Cariboo, is very aware that fires have fundamentally changed our landscape. It’s not just the burn but, as she mentions, the hydrology. Everything has changed. As a result, we are both responding and preparing for climate change. So we’re working in a number of areas.
I’ll be quite frank. It’s impossible to say, “We spend this much on culverts,” because we’re spending on culverts and rehabilitation under our side roads. It’s part of our maintenance contract, for instance. At the moment, maintenance contractors are going out to make sure that culverts are clear ahead of the fire season, so that becomes part of it. It’s part of our side-roads budget, and it’s part of our capital budget. It is spread across the whole ministry.
The ministry is working very much with the awareness of climate change as a reality and building in resilience into our infrastructure. In fact, the Ministry of Transportation and Infrastructure has been recognized by the Auditor General as leading on this within government because of the need, whether it’s to upsize culverts or just fix the situation before it gets worse. And I think that’s been highlighted over the last two years.
I’ve got to say: accolades. I know that the member was disappointed with what she perceived to be a lack of communication from the ministry on the specifics of the West Fraser Road. Our ministry has some extraordinary people who work extraordinarily hard. The recently retired chief engineer, Dirk Nyland, is recognized across Canada for revising the standards for resilience. The standards that have been developed by our ministry, by the ministry’s chief engineer, are now being adopted across the country. So I think that we are doing a lot of very important work.
Unfortunately, we can’t rip out all the old culverts at once and put new ones in, but we are working on those four areas to make sure it happens. We are recognized across Canada for leading the way on climate change resilience.
T. Stone: I, first, want to just say it’s always great to see the familiar faces of the hard-working men and women of the Ministry of Transportation and Infrastructure. I know the minister continues to be very well served by the professionals in her ministry.
I just have a couple questions on a couple different topics. The first one relates to passenger commercial bus transportation and service to and through the village of Chase, in the east end of my constituency. We are, obviously, very grateful, as I think all MLAs from the Interior and the north have been, with the enhanced service provision that was provided as a result of the expeditious granting of licences by the Passenger Transportation Board in October of 2017. That was very good news, with Greyhound’s departure.
Insofar as the withdrawal of Greyhound impacted the village of Chase, it was good news that Rider Express stepped up to the plate and was granted a licence to provide service from the Alberta border to Vancouver along Highway 1 and Highway 5.
My understanding is that the grant of the licence, which again was about five months ago, was for 14 stops from the Alberta border through to Langley, including the village of Chase. This is a reservation service that the company has, which is good.
They were granted a licence to operate for, I believe, seven days a week and two departures per day. Unfortunately, only a matter of weeks ago the village of Chase learned that the operator, Rider Express, had submitted an application to the passenger transportation folks to amend the licence, stating low ridership. Unfortunately for the village of Chase, part of what the company is asking for is the permission to no longer stop at, I believe, four locations, including Sorrento and the village of Chase. I believe there may be two other locations in the Lower Mainland.
Obviously, that’s of grave concern to the village of Chase. As part of their application for a revision to their licence, they’re also asking for permission to be able to provide service on other routes in the area — from, I believe, Kamloops to Vancouver, Kelowna to Vancouver and Kamloops to Kelowna — though we do note that those routes are well served at the moment by other operators. I completely understand that Rider Express probably is looking at higher ridership on some neighbouring routes and looking for an opportunity to compete there, potentially, to subsidize less profitable routes where there’s lower ridership.
The issue that I have with this, on behalf of the people of Chase, is as follows. The minister can please correct me if I’m wrong, but my understanding is that a condition of the licence that was originally granted — one of the conditions — is that the operator has to publicly advertise their schedule. They have to make sure that the public has easy access to what the schedule is. I have been advised by the village of Chase — the mayor and council as well as citizens at large — that no one has ever seen any advertising or any publication of the schedule for the village of Chase.
If a schedule had been published somewhere and if people were seeing that schedule and were choosing not to use the service, that’s one thing. I would understand the operator’s desire to no longer be forced to stop there. But no one has ever seen them stop there. No one has ever seen a schedule. It’s hard to have sympathy if the operator isn’t making a good-faith effort to advertise Chase as a stop. So on behalf of the mayor and council of the village of Chase and on behalf of the people of Chase, I’m wondering if the minister could offer some comment.
Is she aware of this application for a revised licence? Can she indicate whether or not she’s aware of any schedule that’s been published? Would she be willing, through her staff, to engage with the village of Chase to make sure, as part of the Passenger Transportation Board’s consideration of this application for a revision to the licence, that, indeed, the concerns of the people that we’re all trying to serve here with these transportation options — the people of Chase and their concerns — are heard loud and clear about what’s actually going on in the village with respect to Rider Express’s service to this point?
Hon. C. Trevena: I’d like to introduce — I know the member knows her well — Deb Bowman, assistant deputy minister for policy, who is advising here on intercity bus.
Yes, Chase is not listed on their schedule — quite right; nor is Sorrento. Right at the beginning of my remarks, when I was reading into the record some of the answers for previous estimates, your colleague from Shuswap had raised the issue of Rider Express. I mentioned at that time that they have an application in, to reduce the service.
I think the member knows that the passenger transportation registrar can review complaints about service to ensure that they are upholding their licence. When I read into the record at the beginning, I mentioned the fact that there had been a warning to the company from the passenger transportation registrar. That was at the end of last year. The next stage of increasing the pressure on the company would be to possibly have an administrative penalty.
I can ask my staff to engage with the registrar to follow up on what has been happening. As the member says, if the company is trying to have applications on other routes that they may think more profitable, is neglecting the route that they have their licence for and not even advertising for two stops that you might have estimated were going to be there, there is clearly a problem there. I’ll ask my staff to work with the registrar to find out what can be done.
T. Stone: Just one quick follow-up on that. Again, I just really want to underscore, from the perspective of the people who live in the village of Chase and who are really depending on there being a bus service comparable to what Greyhound used to provide…. They were very hopeful that Rider Express would be that company.
Indeed, Rider Express may be a great company. I’ve never used their service. This is not about whether they’re a good company or a bad company. I’m not suggesting the minister’s saying that either. But one of the conditions of licence is that they have to publicly post their schedule. People have to know that the service exists in order to use it.
If I’d heard this concern just from one or two people, you might chock it up to a whole number of things. When you’re hearing it from a lot of people in the community and then when the mayor and council actually get exercised about this, as they have, it tends to suggest to me that there’s probably something to the concern that this company has not met that condition insofar as posting their schedule in a manner that is easily and quickly available to the public.
I would hope, and I would ask, that the minister would ensure in her direction to staff that that be central to the further engagement with the company, not just in the consideration of other routes. That’s a totally separate matter. I really liked the way the minister actually phrased that a moment ago. Before you’re worrying about adding new routes, maybe knock it out of the ballpark on the routes that you already have. Completely agree. Let’s put that over here. The routes that they have, which go through Chase, we want to make sure are meeting the needs of the people who live in the communities along that route.
One last time, if the minister could just confirm for me that she’ll ask her staff to please engage with the registrar on that, and please make sure that’s central to the discussion with the company. Yes or no? And then would the minister be willing to ask someone on her staff to actually reach out to the village, to the mayor and council — even a phone call — just to make sure that your staff are able to hear it in the words of the village of Chase so that those concerns are adequately incorporated into the consideration of this licence moving forward?
Hon. C. Trevena: I can give the member confidence that my staff have already got in touch with the registrar as the member was speaking. Absolutely, we’ll connect with the village of Chase and follow up. I thank the member for raising this and bringing it to our attention.
T. Stone: Thank you very much, Minister.
The second issue should be a really quick one. The gentlemen sitting behind you, both of whom live in Kamloops, travel through the Valleyview corridor of the great city of Kamloops as often as I do. So they would be well aware of the increasing congestion that has really taken hold through the entire corridor — from Valleyview, which is on the valley base next to the river, right up as you climb out of Kamloops to what’s called Aberdeen.
That entire section has an incredible amount of conflicting traffic movements and a big volume of commercial trucks. The Highway 5 connects there. Highway 5A connects on. There are on-ramps and off-ramps to get to downtown in different locations — a very, very busy section of the Trans-Canada Highway.
My ask is not: when are we going do something about it? My ask is this. I want to make sure, as we receive concerns from constituents in our constituency office, that we’re discussing this issue in the context of facts, what’s actually happening. Could the minister commit to asking her staff to engage with me on sharing some of the traffic volume information about what’s actually happening in the corridor?
My understanding last year was that there might be some early consideration being made to a corridor study. Again, just having been there and done that in your role, I understand that you can’t make decisions until you really understand the contiguous corridor in question — what’s happening and what the projections look like. This is a section of a corridor that really needs that high-level analysis of what’s going on today and what those projections look like into the future.
Could the minister provide some comfort to me that she may be willing to ensure that the staff are engaged with me and my office and keep us in the loop on timing and scope and what that corridor analysis might look like and if, indeed, it’s something that we might expect could begin to happen sooner rather than later?
Hon. C. Trevena: The good news is that work is already starting. We’re starting to collect data and considering a corridor study. That is already starting, getting the data to see how much is needed for a corridor study. As you mention, two people are Kamloopsians and very acutely aware of the growing congestion there.
As the member is very well aware, having had this role, once you’re doing a corridor study, you look at everything: traffic volumes, intersection improvements, on- and off-ramps. You need to get the community engagement. This is all something…. We are on the first stages of getting that traffic data. Obviously the people who live there and work there see the volumes, so just to ensure that that is right and worth doing the corridor study.
I understand there is a meeting already scheduled between the member and the executive director in about three weeks’ time. This is right in the member’s backyard and obviously sharing information on issues such as this.
T. Stone: That’s much appreciated. Thank you to the minister.
The last topic that I wanted to touch on is an oldie but a goody. It’s obviously a pet project. Well, perhaps I’ve been accused of it being too much of a pet project over the years. The Trans-Canada Highway four-laning projects east of Kamloops are obviously very important, not just to Kamloops but to, you know, folks throughout the region. I know that the minister knows that.
Just a few questions. First off, I’m wondering if the minister could advise whether or not the previously announced project, which was to be delivered in three different segments, with a price tag of $199 million…. Is it still the ministry’s plan to deliver this project in three different segments? If so, could she confirm that the middle section will be the first one to go, followed by the easternmost section and followed by the westernmost section which, the last time that we talked about this opportunity for interaction, was the plan?
Hon. C. Trevena: Yes. It’s middle, east, west.
T. Stone: Could the minister confirm that the original budget, which was announced at $199 million for those three segments, is still the budget that the ministry is working with today?
Hon. C. Trevena: Yes, this is still the budget that we’re still working with. We are, obviously, still engaging with communities and First Nations as we move forward.
T. Stone: Can the minister comment on whether or not there have been any scope changes to the project over the last year? The last set of maps that I was privy to about it — it might have been even six months ago or nine months ago — that the village of Chase had still reflected a full interchange in and about the Chase Creek area. There was a full-access interchange at Brooke. There was talk about the potential for an underpass at Coburn.
I know that the former mayor and council and the minister and I all met at the UBCM last year. That was important to the council. There was emergency access on and off at Coburn as well, recognizing that their paramedic station is right there. Then there were to be some safety and access improvements — not a full interchange but safety and access improvements — at Mattey’s Road, which is right at the top of Jade Mountain.
I just want to understand if any of those significant features of these three segments from Hoffman’s Bluff to Jade Mountain, from a scope perspective, have in any way been modified.
Hon. C. Trevena: I’m not sure if it’s an advantage or disadvantage talking to my predecessor about these issues, obviously seeing when this started.
As the member knows, any major project like this is an evolution. I think the member is aware that we continue to be in dialogue with both the community and with First Nations.
Everybody wants to deliver the same ends, which is four-laning of the section of highway — we want to get four-laning all the way out to the border but, on this specific project, four-laning this section of highway — and ensuring that there is safe access for the community of Chase. We are continuing to talk, as I say, with the community and with First Nations. I think that the member is most likely very well aware from his conversations with the village, that the biggest issue for Chase on this is that safe access, and we are talking about how we can make sure that while we’re working on the four-laning, there is safe access for the village of Chase.
[J. Isaacs in the chair.]
T. Stone: I would say that with all of the staff that you have, you definitely have the advantage here, Minister. But they’re all good people.
I will add that in addition to safe access, the village really needs access. They’re really concerned about, as most communities are when there’s a four-laning project that bisects their community…. There’s obviously a tremendous amount of, I think, well-placed concern and anxiety, to a certain extent, about: “Is this actually going to make access in and out of our village easier, or is it going to make it more challenging?”
This is a small village. The minister has been there. It’s beautiful, nestled on the Shuswap Lake, Little Shuswap. Folks that live there and small business people that have little businesses there…. People want people to stop off the highway and go in and spend some money and time and so forth.
I understand what the minister is saying about ongoing discussions with First Nations. I am in contact with the chiefs involved on a regular basis as well, as I am with the village and the regional district.
Is it still the ministry’s intention to have a full-access interchange, as has always been the plan at the Chase Creek Road, and another one at Brooke?
Hon. C. Trevena: I forgot to introduce another excellent ministry staff member, who is now sitting where Deborah was sitting, on my left. Kevin Volk is the assistant deputy minister for major projects. I know that he had a different role when my colleague was in this role.
We know how important this whole project is for the community. The member was talking about bisecting the community, the concerns about a community being cut off because of a major highway. Absolutely aware of that. That’s why we continue to have discussions, both with the village and with the Indigenous communities — to really understand what is important to the village and to Indigenous communities, what will be safe and how we can really make sure that we are providing that safe access in a way that reflects what the village and what the Indigenous communities are saying to us. We continue to have meetings with the village and Indigenous communities about specific aspects of the project.
T. Stone: The lack of specificity on the question around the full-access interchange here and there, which, in terms of Chase Creek and Brooke, have been in the plan for years and which I know were very much the design preferences of the ministry…. The ministry has been working for years — going back to my tenure as well — with the village of Chase and with First Nations. I’m just trying to understand if those full-access interchanges still feature in the ministry’s preferences that are at the centre of the discussions that the First Nations and the village of Chase are having with the ministry.
The interchange at Brooke, in particular, if indeed the middle section is the first one to be tendered…. If it’s the intention of the ministry to likely tender that one first, then one would have to extrapolate from that that the design would be pretty tight at this point. So certainly, on that project, I would hope the minister would be able say: “Yeah, it is still our intention. Unless there’s some major issue that comes from First Nations or the village at this late date, it is our intention to proceed with a full-access interchange as part of this middle project at Brooke.”
Again, can the minister illuminate this a bit more for me or alleviate the concerns that perhaps I’m expressing as to whether or not full-access interchanges are still the ministry’s preference at Chase Creek and at Brooke?
Hon. C. Trevena: It is still the ministry’s preference to do an interchange at Brooke. It is seen as the safest and best option for the community and for the highway to move forward. We are obviously still engaging with the community — when we talk about the community, that’s with the village — and First Nations about elements at both of the locations. But it is the ministry’s preference to have that interchange at Brooke.
T. Stone: Okay. I appreciate that. That will be viewed as good news in the village of Chase. I do know that there are, I think, lots of concerns that have been expressed about a few businesses in the area. So I appreciate the work that the ministry will continue to do to work with the community and the small business folks, in particular, who would be most impacted by the final design.
I suspect that the minister’s response will include some variation of “We’re still talking to the Neskonlith and the other First Nations, Adams Lake and Little Shuswap,” and so forth. Whether the design is 100 percent exactly what it has been for a number of years or will be modified a bit, am I safe to assume that it is still the intention of the ministry, assuming buy-in from First Nations and the village, that there will be a full-access interchange in and around where the Chase Creek Road is at the moment?
Maybe just to expedite this process a little bit, again, I would like to ask the minister if the emergency access on and off at Coburn, which has been a top priority for the village, is still an intended component of the project, as well as a simple underpass at Coburn that would go underneath the highway, which would therefore connect both sides of the village as a result of these improvements?
Hon. C. Trevena: We are, as the member quite rightly said, continuing to engage with community and Indigenous communities about Chase Creek.
As far as Coburn is concerned, our engineers are looking at how best to accommodate emergency access to the highway along that section. Again, working with the village and Indigenous communities, we are still looking at how to ensure we get the desired outcome for access through the underpass or whatever is so desired. We’re still working through that one. That’s why I prefaced my original remarks with….
As the member is very well aware, it is an evolution. We are continuing to talk. We do have a new council in place. We haven’t restarted with the new council, but we are continuing to talk.
T. Stone: I appreciate that from the minister. What I’ve heard here this afternoon is it’s still the intention of the ministry to, ideally, proceed with a full-access interchange at Brooke. Discussions are still underway with the village insofar as trying to address the village’s previously stated need for an underpass at Coburn and emergency access at that location on and off the Trans-Canada. That’s appreciated.
I guess I want one last time on the scope here to, again, clarify with the minister that it’s still the ministry’s intention for there to be a full-access interchange just west of the village, roughly known as the Chase Creek Road area. If the minister could just address that point — that that’s still the intention of the ministry, notwithstanding ongoing engagement that is taking place with First Nations and others — I would sure appreciate that.
Hon. C. Trevena: It is our intention to accommodate all movements at Chase Creek Road. The consultations that I’ve referred to with the village and with Indigenous communities will flesh that out.
T. Stone: All movements. That’s good. Full access. I appreciate that.
I had almost forgotten, but I wanted to also ask about the safety improvements that had been planned for Mattey’s Road. That’s right at the top of the hill, at the top of Jade Mountain. That would be part of the segment from Chase West to Jade Mountain. Again, those safety improvements, that access…. It was not a full movement interchange by any stretch, but there were to be some safety improvements there in terms of accessing Mattey’s Road.
Could the minister just confirm that, again, it continues to be the ministry’s intention for those safety improvements to continue to be delivered as part of this overall project?
Hon. C. Trevena: I know that’s a very busy intersection. I know there’s a logging company down there. It does remain our intention to have safe access there.
T. Stone: Okay, that’s good. We’ve covered the scope aspects of this project. Again, I’m pleased to hear the minister confirm that it remains the ministry’s intention to deliver on a full-access, full movement interchange at Brooke as well as at Chase Creek, an underpass at Coburn, emergency access on and off at Coburn and the Mattey’s Road safety improvements. That’ll all be good news to folks in the village of Chase.
I would now quickly like to turn our attention to the timelines. As the minister knows well, the middle section originally was intended to be tender-ready in 2017. The overall project, I believe, if memory serves me correctly…. I believe that I made the announcement in 2016. It might have been a bit earlier than that, but I think it was either late 2015 or early 2016. We were working hard to be tender-ready for 2017, the summer of 2017. Obviously, there was an election, a change of power and all the rest of it.
In previous interactions, the minister had indicated it was her ministry’s intention to get that tender out for the first segment in 2018. It’s now 2019. Obviously, the folks of Chase and Kamloops and users of this segment of the Trans-Canada are hoping that this first tender is going to go out soon.
I’m wondering if the minister could comment on any update that she might be able to provide insofar as the timing of the first tender process beginning for this first segment of this piece of highway.
Hon. C. Trevena: I think the member knows that it’s a project that he announced. We want to deliver on it. We know the importance of four-laning the whole of the Trans-Canada, picking up and moving along with it. We want to get it right. I think the member is very well aware that there has been a lot of discussion, a lot of community input. We’ve been negotiating with Indigenous communities. We do want to ensure that this is right. We are anticipating tendering it later this year.
T. Stone: The middle section. Government’s intention is to tender it later this year. Can the minister indicate if she’s shooting for the later spring? Is it the summer? The third week of October?
Again, in all seriousness, I know she knows how important this project is. I think folks would really look forward to and really hope that it’s the government’s intention to get this tender out as soon as possible this year. Is the minister able to be a bit more specific? Can we count on a 2019, fall of 2019, tender for the first project? Is that a reasonable expectation that folks could have with this first project?
Hon. C. Trevena: Apologies for the long discussion. We were going through all of the calendars and trying to ring which date. Well, I was. But staff really are reluctant to give a precise date because they’re asked about ongoing discussions with communities, Indigenous peoples. So don’t ring the calendar. But our intention is no later than this fall. Absolutely 2019.
T. Stone: The last aspect of the questions that I have for this project relates to the community benefits agreement requirement. I’m just wondering. We know that the minister and the Premier, on the record, indicate that the four-laning projects for the Trans-Canada Highway, Kamloops to the Alberta border, will be subject to the community benefits agreement requirement.
First off, can the minister confirm that, indeed, a community benefit requirement will be attached to this project that we’re talking about here today, the Hoffman’s Bluff to Jade Mountain Trans-Canada four-laning?
Secondly, it has been confirmed by the minister and others in government that the community benefits agreement requirements will add, likely, around 7 percent of additional costs to the project estimates. Some have suggested a bit more, but if we go with the 7 percent, then 7 percent on $199 million is not an inconsequential number. So we’ve spent a fair bit of time here trying to understand mutually…. Has the budget overall changed for this project? The minister very clearly indicated no. The $199 million was still in the budget that the ministry is working with, and that’s great.
Then we spent a fair bit of time going through the scope. Notwithstanding continued engagement with First Nations and local communities and so forth, the minister has indicated that it very much continues to be the ministry’s intention to not see any scope reductions in terms of what has been the ministry’s intentions up to this point around the full movement interchanges at Brooke and Chase Creek and the other scope features that we’ve canvassed here today.
I’m just wondering if the minister could, again, confirm that there’s a CBA requirement attached to this project. Secondly, how will the ministry incorporate a community benefit agreement that’s anticipated to add an extra 7 percent of cost to this project if the project budget isn’t going to change and will remain at $199 million and if there won’t be any scope changes?
It would seem to me something has to give. Either the budget has to be lifted a bit or less cost has to be incurred in terms of scope, yet the minister has confirmed the budget will remain the same and the scope won’t change.
Could the minister provide some thoughts on those community benefit agreement questions that I’ve just posed, with respect to this project?
Hon. C. Trevena: Yes, our intention is that it will be a CBA project. As was mentioned, the Premier has made very clear that he would like to see all of the Trans-Canada four-laning projects be part of a CBA, so that is our intention.
As a result, we’re doing our due diligence on this. I’m wary about going into all the different levels of cost because, as the member is aware, that is going to go out for competitive bid. We are, as I say, doing due diligence. The budget remains the same, and that due diligence includes continuing doing some design work, engineering work and making sure that we are getting this right.
The community benefits agreement is, we believe on this side of the House, a very worthwhile approach. It will benefit people in the member’s own constituency, because we’re looking at local hires and local training. If this is a community benefits agreement, as the intention is, it will be of great benefit to the member’s communities, as well as to the province as a whole. But we are still working with the existing budget. We’re still doing due diligence. We’re still anticipating a full tender.
T. Stone: If I understand the minister correctly, then, she’s suggesting that it is her ministry’s plan or government’s plan to tender these projects with the scope that we’ve talked about, ideally, recognizing that there will be some cost pressure on these projects or at least added expectations relating to the community benefit requirements, which will add some additional costs that wouldn’t have been there otherwise.
Is it the minister’s hope that the tender process will result in contractors sharpening their pencils to make up the difference, so as not to result in scope reduction or in the minister having to go back to Treasury Board for approval for a budget lift? Is that what I’m hearing — that she’s confident that the tenders will come in for less than what the ministry has previously projected they would be?
I’ll back up. The context for this is I went through this exercise over and over and over. I get it. The costs go up and down, particularly in relation to First Nations engagement and so forth. I understand fully that whether a four-lane project comes in at $10 million a kilometre or $12 million a kilometre can depend on a lot of different factors. Even a hot economy and lots of projects and scarce contractors, as a result, can lift the price of the bids that come in.
At the end of the day, the ministry, in my experience there, never put together…. When I was sent out behind a podium and I announced a project with a dollar value, the ministry was signing off on that number with a very high level of assurance and some buffer built in, so as not to find myself or the ministry in a position months or years down the road of blowing the budget and therefore having to reduce scope or go back to Treasury Board and ask for more money.
If the scope isn’t going to change and the budget isn’t going to change, is the minister saying that she’s relying on…? In light of an added 7 percent cost that’s related to the CBA requirement, is she saying that she’s counting on the contractors, the folks who bid on these projects, really sharpening their pencils and putting in proposed project values that fit within that $199 million?
Hon. C. Trevena: We’re taking all this into consideration. There’s absolutely no question. The advantage of a member having been in this position is that he knows the hard work that the ministry and the ministry staff do in preparing project budgets, in getting to that position of putting a project out to tender — announcing it and putting it out to tender.
It is very important that we be aware of all contingencies. I think that the ministry staff — I know that the member opposite supports me in this — do extraordinary work to get to that position. They are doing that at the moment. Whether it is, as we were talking earlier, about engaging with community, engaging with Indigenous communities, it is all part of getting ready.
We’re doing the due diligence on the technical side, continuing to work through all the scope and to make sure that it is ready. We do want to have, obviously, good bids. We would love it if those who want to bid on it are sharpening their pencils, are aware of this and are ready to come in with good bids. But this is something that as a ministry, as the member is well aware, we take into consideration. We anticipate that everything will be ready, with a budget in place, for full tender.
T. Stone: Well, I guess we wish the ministry good luck and hope that the ministry is successful at receiving some pretty spectacular bids on this, because I just don’t…. I have started and run several businesses. I’m a former tech CEO. I understand my way around financial statements. I was the minister for four years. I just don’t see how you can take a project that four years ago was estimated at $199 million and say that in today’s dollars….
If you apply even a very modest discount rate to that $199 million value from four years ago, you’re probably, in today’s dollars, talking about $220 million. You take that factor, coupled with, likely, a 7 percent cost escalation related to the community benefits requirement components…. We can agree to disagree on whether that makes sense or not, but I’m just trying to run the numbers here.
Then you layer on top of that no scope changes from what has been the ministry’s intentions, for the better part of the last four years, with respect to this project and say it’s all going to continue to be delivered within the original budget, 2015 dollars — same budget, no budget lift, same scope and an added 7 percent cost for the community benefits.
I fail to see how the minister would believe that this is going to be accomplished simply because she expects good bids, as she said, to come in from contractors. I will leave it there insofar as my concern for this project. Obviously, we’ll all be paying very close attention and hope that if the minister does get…. Maybe I’ll phrase this as a question.
If the ministry finds itself in a place where, because we’re talking about a 2015 project estimate budget; because we’re talking about no changes in the scope and the importance of that for the community that this project would really impact and serve; because the minister and her government would likely continue to be committed to the community benefits requirement component…. If the ministry finds itself in a place where, because of the added 7 percent costs that the community benefits agreement will result in on this project, that drives up the overall project cost beyond the $199 million project budget….
I would like to know if the minister can assure the people of Kamloops–South Thompson, and British Columbians generally, that her choice in those circumstances will not be to reduce the scope of the project in any way but rather to lift the budget, if necessary, to make sure that this project is delivered as originally spec’d, to meet the needs of all of the people that will be depending on the ministry and the government to actually build the right project that will best suit the southern Interior and folks who live along the Trans-Canada Highway east of Kamloops.
Hon. C. Trevena: I don’t want to speculate about the outcome of this. As I mentioned in my previous questions, staff are doing due diligence on all aspects of the project. That means they’re continuing to consult with the community and with Indigenous groups about the design of it, doing the technical and the engineering work-ready. Part of the due diligence is assessing the community benefit aspect. They’re working to the current budget and doing the due diligence around the current budget.
I have every faith in the public servants doing the work and doing that due diligence to make sure that the people of British Columbia get a project that really reflects what is needed, that meets the requirements of both the community of Chase, the member’s constituents, and the people of B.C.
[R. Chouhan in the chair.]
The Trans-Canada, as we all know, is an important piece of highway, and we want to make sure that the four-laning is done and is done in a way that benefits everyone in B.C. Again, that comes back to why our government is using, where possible, the community benefits agreement, because we see that as an added benefit to the people of B.C.
With that, I’m wondering if we could take a five-minute break.
The Chair: The House will be in recess for five minutes.
The committee recessed from 4:31 p.m. to 4:43 p.m.
[R. Chouhan in the chair.]
T. Stone: I just have one final question for the minister that relates to the Hoffman’s Bluff to Jade Mountain Trans-Canada four-laning project, and that would be this.
I was certainly very proud when I was the minister and we delivered on the previous segment at Hoffman’s Bluff itself, as well as Monte Creek to Hoffman’s Bluff. One of the reasons I was really proud of that project was: my understanding all along was that we always had a very significant level of Indigenous workforce participation on the project. I believe — the minister can check with her staff; they will know for sure, because they always gave me the current number — that we were often well in excess of 30 percent Indigenous workforce participation on these segments, which is great.
For the Neskonlith Band, the Adams Lake, Little Shuswap, Kamloops, Skeetchestn — all of the First Nations in the area — if you wanted to work on these projects, you were going to be able to get a job. In part, that was because it was a priority in the ministry, but it was also a priority for the contractors, who really have developed a culture — the companies that I have in mind, in particular — of building strong relationships with Indigenous peoples and First Nation communities to ensure that those opportunities can be well tapped into by those Indigenous folks.
With that context, and now with a community benefit agreement requirement wrapped around the project, I’m just wondering if the minister could address a couple points. What is the ministry’s target for Indigenous employment on these Trans-Canada projects? There must be a target. We were somewhere around 30 percent on the previous project, so I would assume the targets are higher. What is that target? And at what intervals will the ministry be measuring against that target and reporting out on the achievement or where the ministry is actually at in delivering on those targets?
I ask this because it’s been one of the key components of this community benefit agreement requirement. The minister and the Premier and others in government have said these community benefit agreements are needed to really drive more women’s employment, which is great, and more Indigenous employment — certainly, local employment. Every contractor will tell you their number one priority is to hire local if they can, and then you kind of go out from there.
I really want to hone in on the Indigenous peoples aspect of this, because I think that there’s tremendous opportunity for Indigenous peoples and the contractors to continue to deliver world-class projects working in partnership. But in order to do that, you need to have some targets. So I’m wondering, again, if the minister could advise: as part of the community benefit agreement requirement, what is the target for Indigenous employment on the Trans-Canada projects from Kamloops to the Alberta border?
I’m assuming they’re all going to be bound in one community benefit agreement. The minister could clarify if I’m wrong on that. What is the target, and how is the minister going to be measuring against those targets? And at what intervals will the performance be articulated or released to the public so that we can measure the success of the community benefit requirement, insofar as Indigenous employment is concerned?
With that, I will thank the minister and all of the staff for their professional courtesy today and a job well done.
Hon. C. Trevena: Just to correct the record: as I understand it, there never has been a target. There has always been a desire to ensure that Indigenous groups have strong representation, and the high level of workforce, I think, is to be applauded on the previous project. But there hasn’t actually been a specific target.
I’ve got to say that our government’s approach…. We have the CBA, but the CBA is among many other approaches that we have with Indigenous peoples. We’ve talked very openly about the U.N. declaration on the rights of Indigenous peoples, of ensuring that those principles are embraced by government and the work that we do. Likewise, the recommendations from the Truth and Reconciliation Commission to ensure that those are embraced as we work on true reconciliation….
This ministry, as the member is very well aware, has a lot of direct opportunity of working with Indigenous peoples, and when we do, it really is terrific. Whether that is…. The relationships are very different, depending on the project, but there are direct opportunities for Indigenous groups. There are the benefit agreements. There are accommodation agreements. There are many different levels, depending on the Indigenous community, depending on the location, and depending on what that community wants. On top of this, now we have community benefits agreements, so it’s yet another level which gives priority to Indigenous workers. So when we’re talking about the….
I stand up here very regularly and talk about, with great pride, our community benefits agreement, the fact that we are going to be dealing with the skills shortage, training people, training women and other groups that are not regularly represented. The first people at that table are Indigenous, the First Nation workers. So that is going to be the first level of hire. This is going to be the first level for when we’re talking about dealing with that skills shortage, the level of apprenticeships, and so on.
While there has never been a target, I think our approach of embracing reconciliation, working on that and building in the community benefits agreement on top of everything else that this ministry has been doing for many years has been breaking ground and doing it. I think the member would recognize that — that this ministry has been working with Indigenous communities for a long while and building in that good relationship. This is another layer, another step and, I think, really another benefit for the communities and for the province.
T. Stone: I told you that I would have one more question. The minister is correct in saying that there was not a target, previously, for Indigenous employment on, certainly, the Trans-Canada Highway projects that I’m referring to here. The 30 percent number that I referenced in my last question was, again, unless I’m corrected…. The people that know the answer are with you. My understanding is we were around the 30 percent mark most of the time on those projects — 30 percent Indigenous employment.
That wasn’t a target. That was what we were achieving on an ongoing basis, which is great. We all agree that that’s good. Continued work with Indigenous peoples, First Nations communities, to ensure that every single person in those communities that wants to work on these projects is given the opportunity to get the training and become engaged in this work is a good thing.
What I didn’t hear in the minister’s response is that in the context of a community benefits agreement requirement on these projects, which have primarily been sold to the people of British Columbia as a necessity in order to drive more employment opportunities for women and Indigenous peoples, in part, one would then be led to believe that there must be targets in order to measure the success. If you’re going to layer an additional minimum 7 percent cost onto a project, and a large part of the reason you’re doing that is to drive more employment with Indigenous peoples and women, surely there must be some targets that the ministry will be seeking to achieve that will be a part of this community benefits agreement.
That’s the piece that I didn’t hear in the minister’s last response. Are there actual targets for Indigenous employment on this project that will be part of this community benefits agreement? If not, why not? If yes, what is the ministry’s target for Indigenous employment related to this particular project? Recognizing, again, that that has been one of the primary selling points all along that the government has wanted to point British Columbians to as the reason that these community benefits agreements are required.
Hon. C. Trevena: To explain to the member a bit about the CBA hiring process and the CBAs…. Though, yes, the CBA, obviously, is to ensure that we have Indigenous people having the opportunity to have training and work, as well as other equity-seeking groups, it is taking it to the next stage. It is also dealing with the skills shortage and with apprenticeships. Through the CBA, we are increasing opportunities.
The hiring process is done to prioritize Indigenous hires. We, obviously, work with First Nations on the capacity, but we are looking at how we can increase opportunity. That’s really part of the CBA.
The hiring process. You have the accommodation agreements, but the CBA has several levels. The first people to be hired are local First Nations. So in an example like the member is talking about…. In the previous project — similar First Nations, the same Indigenous peoples working on the projects — we would anticipate that they would be hired. Initially, the hiring process, under the CBA, is, first, qualified First Nations, then other equity-seeking groups and then other local people.
If we can’t find enough people through that…. It is a hot market, and we know there’s a lot of construction happening, including our work on the Trans-Canada and our work in the Lower Mainland and so on. So if you can’t find enough people locally, within that 100 kilometre frame, you go regionally. Again, it’s first regional First Nations, then equity-seeking groups and then other local people. If that doesn’t fill the pool — I believe on this project it would — you get to B.C.-wide. Again, those three tiers.
The purpose of the CBA, as I say, is to ensure that we do maximize opportunities for First Nations, for women and for other equity-seeking groups, to deal with the skills shortage and, really, to invest in those local hires and in First Nations when we are building our infrastructure. So we’re not just building that infrastructure. We are building up the capacity of Indigenous peoples throughout this.
D. Clovechok: I just wanted to make a couple of comments on the onset here. When you first took the floor, Minister, you…. It seems like hours ago. Oh, it was. You mentioned Rider Express coming through Golden. I’m pleased to hear that. I’m looking forward to our meeting, which seems to be a moving target these days, about the north-south thing. We’ll figure it out, and we’ll get that all sorted as well. Good to hear about Rider Express, because it will take a little bit of angst away.
I want to talk a little bit, of course, about the Trans-Canada Highway. It seems that in my riding of Columbia River–Revelstoke, I have the smallest sections of improvements but the most expensive that go along with that — from 4.5 kilometres, approximately, in the Kicking Horse to the one I want to talk about today, which is about 2.5 kilometres. That, of course, is the Illecillewaet section.
Just to start off and kick this off, if the minister wouldn’t mind confirming that the Illecillewaet brake check and the four-laning project is proceeding in 2019 and when the start date will likely occur.
Hon. C. Trevena: Thank you to the member. Yes, good news about Rider Express. It’s interesting, because we were talking to the member for Kamloops–South Thompson and concerns about Chase and Sorrento not getting stops. We looked at the schedule, and they’re not mentioned on the schedule, whereas Golden is mentioned on the schedule. So added surety there, but we will follow up for the member for Kamloops–South Thompson.
On Illecillewaet. Yes, we received the bids — closed last week. We have the bids. The ministry staff are doing due diligence on those bids, and we anticipate a summer start on the project.
D. Clovechok: Well, that’s great news.
Just a quick question on the concept of scope. Has there been any significant change in the scope of the project? I believe it was going to go from a five-truck stop to around a 15-truck accommodation there with acceleration lanes and deceleration lanes associated with that. I want to check in on that scope. Has that pretty much stayed the same? No changes?
Hon. C. Trevena: Yes, the scope is the same as that which was tendered. It is four-laning two kilometres, and then we’re upgrading the brake check at Illecillewaet, significantly expanding the capacity for commercial vehicles, which is very important. We hear this a lot from truckers. So it’s expanding the capacity, and also we’re going to be improving bathroom facilities and lighting, which, again, is very important for people who are trucking and need to stop. It’s something that you hear a lot about. So yup, same scope as in the bid.
D. Clovechok: To the minister, thanks. I know the industry will be happy with that, as well as the folks that travel along the Trans-Canada Highway on their way to the Shuswap or to the Okanagan for the holidays, so the trucks can pull off and do what they need to do.
The minister just confirmed that you’ve received the project tenders. That’s great. I’m wondering if you can confirm for us today what the value of the low bid for the project was.
Hon. C. Trevena: This is all on B.C. Bid. The low bid comes in at $51.5 million. It is an unverified bid. As I mentioned in my preceding answer, staff are doing due diligence on this to go through the bids that have come in — literally, do the due diligence they do on every bid before it goes out, when it comes in, to make sure that the people of B.C. are getting real value for money.
D. Clovechok: I appreciate that answer.
The next question I have…. Will the minister confirm the original budget for the project that was announced back in the spring of 2017, if you wouldn’t mind?
Hon. C. Trevena: Thanks to the member. The budget that was announced with, in fact, the press release announcing it’s going out to tender is $62.9 million, of which $15.5 million is coming from the federal government.
D. Clovechok: Thank you for that answer. But I don’t believe that that was — certainly, correct me if I’m wrong — the announcement that was made in 2017 in Revelstoke by the member for Shuswap, where he announced that it was a $35 million budget, $19.5 million coming from the province and the $15.5 million from Canada. So I just wanted to confirm that was the announcement that was actually made in Revelstoke in 2017, not the figure that I was just given.
Hon. C. Trevena: I am advised that in 2015, it was still very early in the process to be making such announcements, to say what the value would be. After the announcement, we were still doing some engineering work in the area and a lot of geotechnical work. As the member is aware, there are a lot of issues that keep geotechs well occupied in his constituency.
That geotechnical work found there was acid rock, which is very problematic. So the design had to be modified after the very early announcement was made. That is why there is a reflection of an increased provincial budget — early announcement, lots of issues of the geotechnical problems that needed to be addressed.
D. Clovechok: Thank you for that, Minister. I believe I heard the minister say 2015. It was actually 2017. But if I misheard you, then I apologize. Let’s just go with that number. You’re quite correct. This is a moving target. There’s no question about that.
Let’s use that original 2017 funding announcement, which was made by the member for Shuswap on behalf of the then Minister of Transportation, in his stead. It’s a $35 million budget. I believe you just said that the total estimated project now is $62.9 million, from $35 million, which is about a 47 percent price escalation, based upon acid rock.
I’m wondering why that has gone up as much as it has. Forty-seven percent is a significant increase. I’m wondering why that is and if this has anything to do with the CBA agreement. If you could shed some light on that, we would really appreciate it.
Hon. C. Trevena: Thank you to the member. I beg to differ. I’m with the ministry staff. The ministry staff know when the initial announcement was made. They do convince me, and they have even shown me a press release that says August 1, 2015. But that’s fine. Okay. The member accepts that.
I’ve got to say that because that was early and because there was further investigation and because geotechnical problems were found that did require extensive design changes in the project…. There were a suite of changes, including the need now for walls that hadn’t been there, and walls that include concrete and steel are expensive. There was a suite of changes that needed to be made because of the geotechnical work that was done after the announcement. I mean, that’s really what bumped up the cost.
We are building CBA into budget pricing. CBA is our preference. This is something that we were aware of, and we don’t want anyone to be surprised by the fact that we are looking at as many projects as possible to be included in the community benefits approach. As I say, it hires local people. It trains local people. It ensures we’re dealing with the skills shortage. It ensures that people in Revelstoke will get the benefits of this project, not just while they’re doing the project but long term, because there’ll be well-trained skilled labour as well as skilled tradesmen.
D. Clovechok: Minister, I was wrong once last year. It’s happened to me again this year. It was 2015. It was my mistake, so I do apologize for that and recognize that.
Just on the math itself. I accept the answer around the new $62.9 million and the changing landscape on what you’ve just said. I’m just wondering, though, if you’re on budget…. So $62.9 million…. I’m assuming that the $15.5 million is still coming from the feds. I’m getting a head nod, so that’s a good thing. I believe, then, $47.4 million kind of works out to what the province is doing.
If you could just explain to me, then. Since 2015 to 2019, today, that’s a significant increase. Where will the province be getting that money from? It wasn’t initially budgeted for. Is that in the budget this year?
Hon. C. Trevena: Yes, it is in this year’s budget, the 2019-20 budget.
D. Clovechok: Let’s talk a little bit about the training and the CBA agreement. The previous speaker, the former minister, had mentioned that about 30 percent of the working force, the labour force, that were in projects in British Columbia, especially associated with the Trans-Canada Highway, were already First Nations employees. They were given the first opportunity at all levels, skilled or unskilled, and some training.
I’m wondering if the minister would explain how the CBA agreement is going to take it…. It’s supposed to enhance and create more jobs and more opportunities, which is great, especially for the First Nations communities that I serve. I’m wondering how the CBA…. What strategies are you going to be putting in place, as an old college guy — the training and so on? How are you going to increase that number, which was already 30 percent of the employees?
Hon. C. Trevena: Just to give the member some certainty about the budget figures, it is in the budget and fiscal plan, page 48, bold, because it’s new. The figure, anticipated total cost, is $63 million. So it’s $62.9 million, rounded up.
What the community benefits agreement does…. We continue to have accommodation agreements with Indigenous peoples. First Nations will have accommodation agreements with us, and that’s what we have seen and used in the past. There has been some Indigenous hire.
[J. Isaacs in the chair.]
What the community benefits agreement does is two things. It builds on that, but even more than that, it creates the first opportunity to Indigenous people.
The first hires at a community benefits agreement project are Indigenous. If there can’t be enough local Indigenous people, so people from the Revelstoke area, we go to, then, local equity-seeking groups, as they’re described — that’s women and other people who don’t traditionally get work — and then other local hire. If there’s still not enough of a pool there, it goes to regional — First Nations first, then equity-seeking groups, then other working people. Then if that isn’t enough, we go to the B.C.-wide. So it’s spreading the net, and each time, it is Indigenous people who get the first opportunity.
We’ve had some good success with accommodation agreements, but this is a much more formalized way of ensuring that we can create opportunities for Indigenous people in a way that they may not have had that opportunity before. It’s a way that we will be building not just the opportunity to work, but there is the opportunity for training, too, whether it is just general training or red seal training. We want to build up the number of apprentices, we want to build up the skilled workforce, and we want to give Indigenous people that opportunity. That’s why they are first on the list for hires through community benefit agreement projects.
I think it builds on what we as a province are doing with Indigenous people, with the real need to deal with the issues brought through the Truth and Reconciliation Commission, dealing with the principles of the U.N. declaration on the rights of Indigenous peoples, which are embedded in the work that we’re doing. Every single cabinet minister has that responsibility in their mandate letter. This is one way that we are able to truly effect it, by actually having people first up, first hires, through that formalized community benefits agreement.
D. Clovechok: Thank you for that. I’m just going to make the assumption that those first hires will be either status, non-status or Métis. Maybe if you could answer that just directly.
Hon. C. Trevena: It’s Indigenous peoples, non-discriminatory. Indigenous peoples.
D. Clovechok: I actually agree with you on that, but there is the status. Be it right or be it wrong, it’s a reasonable question.
Also, I want to talk a little bit about what you just mentioned, the expansion area. I could talk forever about the training. How are you going to do that? Who have you talked to? Have you talked to College of the Rockies? Have you talked to Selkirk? But we’re not going to go there. Maybe later on next week we can chat about that.
The scope of the hiring that you just mentioned is interesting. If the work pool is locally not large enough, you expand, and that’s a good vision. My question, then, would be: would the 100-mile rule apply to this project? Or 100 kilometres, sorry. I’m still thinking in miles. The 100-kilometre rule.
Hon. C. Trevena: It’s the 100-mile diet you’re thinking of. But yeah, the 100-kilometre rule will still operate for this project, from its location out — Revelstoke, Golden, other way.
D. Clovechok: Just so I’m clear, then, the expansion to a First Nation Indigenous person in Vancouver…. If that pool is not large enough, they would be exempt from applying for this position if that 100-kilometre-rule applied.
Hon. C. Trevena: As I mentioned, we start off local — we’re talking a 100-kilometre range — Indigenous first, equity groups second and general pool of workforce third. If that doesn’t fill the workforce, we go to a wider pool, a more regional pool. I know 100 kilometres seems regional but a broader, maybe a southern B.C. pool that is looking at…. Again, first call is Indigenous, then women and other equity-seeking groups, and thirdly, general workforce.
If we still are finding that we are not filling the jobs, we go B.C.-wide — again, B.C. Indigenous peoples, whether it’s from Port Hardy, wanting to work out in the Revelstoke area or Fort Nelson. It’s B.C.-wide Indigenous first, equity-seeking groups, women and others, and then the general workforce. At each level, from the first 100-kilometre radius regional level and then the broader B.C. level, Indigenous comes first in each opportunity.
This is on top of the other opportunities that we’re giving through accommodation agreements, benefits agreements and other practices of our ministry when we’re working with Indigenous peoples. For instance, if we’re doing some archeological work, it’s obviously hiring Indigenous peoples to do that. That isn’t part of the community benefits agreement.
That’s one of the real joys about it. It’s on top of that. It’s doing that training, and I know the Minister of Advanced Education would be very happy to talk to the member about what the different colleges are going to be offering and how we’re going to be building up that apprenticeship and making sure that we get that skill training and apprentices in place.
I know the member is passionate about Selkirk College for right reasons, so I think that we will….
Interjection.
Hon. C. Trevena: Oh sorry, the College of the Rockies. I apologize.
I’m sure he would have a very good conversation with the Minister of Advanced Education about how that’s all going to fall into place.
D. Clovechok: It’s great. I look forward to a conversation with the Advanced Ed Minister.
Just so I get my head around this 100-kilometre rule. If there’s a young woman in Vancouver, and the pool’s already been expanded to First Nations, and so on and so forth…. If that young woman in Vancouver wants to move to Golden to work on this project, she’s going to be allowed to do that.
Hon. C. Trevena: First, I’d like to correct the record. I’ve been saying that we do this locally and then regionally and then B.C. It is actually locally in 100 kilometres, then B.C., then the three western provinces and then Canada. That’s how it is spread out.
However, for the 100 kilometres, to answer the member’s question…. The person who is wanting to take the job, if they move from Vancouver to Golden, would have had to live in Golden for six months. There is a residency requirement of six months to qualify for the 100 kilometres in that.
D. Clovechok: Thank you for that answer.
Noting the hour, I will move on and come back to this on Monday, if that’s okay with the minister.
Hon. C. Trevena: I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 5:45 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of Supply (Section B), having reported progress, was granted leave to sit again.
Committee of Supply (Section A), having reported progress, was granted leave to sit again.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. on Monday morning.
The House adjourned at 5:47 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF
JOBS, TRADE AND
TECHNOLOGY
(continued)
The House in Committee of Supply (Section A); D. Routley in the chair.
The committee met at 1:34 p.m.
On Vote 34: ministry operations, $96,933,000 (continued).
Hon. B. Ralston: When we last rose, I was in the middle of a response when the bell rang to draw us to the main chamber to vote. Let me just finish that answer — perhaps more briefly than my answers have been thus far.
Just talking about Fujitsu and their decision to locate in British Columbia. What I was advised is that after an analysis of British Columbia, British Columbia has competitive business costs compared to a number of North American jurisdictions; a proximity to Silicon Valley but still not in the United States, which has certain advantages, particularly these days; great educational institutions — UBC, BCIT, Simon Fraser University; and access to great talent and to a company in which Fujitsu has made a major investment, 1QBit, which is a company that devises the complicated algorithms for posing questions to quantum computers.
That decision was made. The company has now moved here, in a very, as I stressed, unusual move for a Japanese company. That whole division of their global operation is here in British Columbia. They have hired, I think, approximately 20 or 25 people, but their estimate is that they will have 200 people within 18 months. I think that’s tangible evidence of the value of relations and the opportunity to persuade people — and companies, particularly — of the value of being in British Columbia.
B. Stewart: We were talking a bit about free trade agreements, softwood lumber and the nature of the importance of these trade agreements. We have a new agreement. It’s my understanding that the CPTPP has now been approved by the necessary countries. Of course, Canada is a signatory in approval to that.
Already, Japan is our third-largest export destination, for both forest products and many others. I’m certainly thrilled that Fujitsu and 1QBit were able to work together. That’s very exciting. We’ve been seeking this agreement, and it does give us an opportunity to ask the question about what we are doing to take advantage of that.
Now, I understand that the trade and investment representative’s office was vacated in August of last year, and the ministry has been, to my understanding, attempting to fill that position. But what are we doing to take advantage of what I would consider a first-mover advantage?
The United States doesn’t have that trade agreement. They’re not a signatory. It is not a deal with China; it’s with our third- and fourth-largest trading partners. I think, by your own admission in your earlier statement, you suggested here that the free trade agreement with Korea that Canada signed has seen the tariff lines on agrifoods imports, particularly seafood, drop dramatically, and there’s a real demand for B.C. fresh seafood.
Of course, this builds on the work that has been in progress for a long time, through the trade and investment representative in Seoul. The added incentive now is the free trade deal with Korea. I was in Asia when that took place. I can tell you, from the statistics — I’m sure you know them — that the numbers have been dramatic in terms of increases in reducing those trade barriers.
My question is, again, to the minister. Why, when we have first mover-advantage on the CPTPP, have we been unable to fill the position? What are we doing to take advantage of this first-mover advantage while we have a vacant office?
Hon. B. Ralston: First of all, I don’t want to be quarrelsome, but I think the description of the office as vacant is not an accurate one. There are five staff there. There is an acting manager and director who has stepped up to run the office.
In addition, and it is indeed the case, there have been two separate search processes to identify the right candidate. I think the member can appreciate that for a market as important as this, the right candidate is essential. That right candidate, through those two processes, was not identified, so efforts continue to find the right person. But the office is active. In addition, the leadership there has been supplemented by regular visits by senior staff from this side of the Pacific who have also gone there to supervise and continue the direction.
I think the member is right. It does present unique opportunities. In fact, that’s why we were anxious to be there. We’re one of the first, if not the first provincial government representatives to be in Japan since the agreement came into effect on December 31.
In my meetings with the Canadian Ambassador to Japan, what he stressed was that there are the advantages that the member spoke of, given that if one builds a strong relationship with a customer in Japan, traditional Japanese loyalty to suppliers might well dictate that if or when the United States re-enters the market, that customer loyalty would override any price advantage that an American supplier might offer down the road.
So that’s why we’re there. We had a series of meetings. Most of those have been publicly disclosed on Twitter, and they’re available. I won’t go through all of them, but we did have a fairly robust series of meetings.
The other thing that I would say in dealing with the member’s point about a lack of knowledge on the business side here in British Columbia is that the department is initiating a program of, basically, business education regionally to companies to be aware of the opportunities that are presented there, coupled with our other programs that help people consider exports: export navigator and the TAP program.
Not only are the basic skills being advanced for companies that are interested, there’s a sense of real opportunity that is unprecedented, particularly in the Japanese market. We are moving forward with that. I know the federal government of Canada has undertaken some similar education projects about the advantages from these new trade deals. So that’s what we’re doing.
B. Stewart: To the minister and his staff, there were a couple of significant trade barriers that were resolved before CPTPP. One of them was the access for hothouse peppers, which was done about three years ago.
Then, of course, last year I believe, you were part of the announcement about access with British Columbia cherries. Can you give me an update on what…? Because of the unbelievable opportunities with agrifood and seafood in Japan, without the leadership of the managing director and knowing who is in place as the acting director, I’m just wondering: what’s happening on agrifood opportunities in Japan for British Columbia farmers and ranchers?
Hon. B. Ralston: I’m going to ask the Minister of State for Trade to answer the question.
Hon. G. Chow: I’m very happy to answer the member’s question.
I was one of the members on the trade mission with the Minister of Jobs, Trade and Technology. It was a very, very short trip but a very, very successful trip. We spent five and a half days — four days of meetings. The other day and a half were spent in transportation. We had two full days in Korea and two full days in Japan.
In terms of Japan, I had the opportunity to be invited to tour the Costco of Japan. This was a bit of a surprise to me because I thought that Japan, you know, being very tight in terms of space, wouldn’t have a box store like Costco, but they do. They have 23 Costcos, and they’re run by an expatriate Canadian from Saskatchewan. So very lucky that way, because he’s been in Japan for 20 years, so we hit it off. He was telling me that this summer there will be B.C. cherries in all the Costco stores.
As far as how Costco works, 40 percent of the product will come from head office, which is in Seattle. The rest they source in Japan. So this is a great opportunity to connect with an expatriate Canadian who is now heading Costco Japan. I think this is a great opportunity. He also said that when the tariff goes down, they will also have Canadian honey. Right now they’re just selling U.S. honey. There are pepper and tomato by one of our hothouses, very famous, in Delta. So our product is being promoted and sold in Japan.
The other thing we also work with is with the shopping channels. Oh, sorry. That’s in Korea. In Japan, in terms of what we did, we also met with a lot of the promotors for food, basically telling them that we have the capacity to supply what they need. They are looking for high-quality products.
I’ll see if you have any more questions, and we can go into that.
B. Stewart: Thank you to the minister and minister of state. I do appreciate that Costco is one of the early movers in terms of adopting British Columbia agrifood products. What are the plans for outreach across Japan in terms of agrifood programs for the 2019-2020 year?
Hon. G. Chow: As the minister said, the office is very active in Japan. We do have a full-time manager devoted to B.C. agricultural products, so they’re embarking on promoting our products throughout Japan.
B. Stewart: I guess we’ve got a period of ten months where in the visits that the minister of state and him have had going to Japan, versus Korea or China, I don’t know whether they’ve seen the importance of the relationships that you really have to have there. Unfortunately, with the departure of the former managing director…. These things happen. We lose those relationships, which are vital to keeping the continuity, whether it’s high tech, LNG or manufacturing. I mean, there are so many places — aerospace — that I know British Columbia has an opportunity to participate in.
I go back to the plans and the absence of the leadership in Japan. What is the plan? I don’t see metrics, in terms of performance metrics. Maybe it would be helpful if you could describe what the plan and the metrics are for the Japanese market for this coming fiscal year.
Hon. B. Ralston: Yes, there is a plan. The member will know better than most that there are metrics for that plan. Those metrics are being met, and they’re monitored by the headquarters as well.
There is a plan, in the coming year. Involved in that plan is also inviting Japanese buyers to the Comox sea festival. There are a number of trade shows, as well, that members of the TIR will be attending and advocating at.
I agree with the member’s note about ongoing relationships. That’s important, and he will know, from his time, that those relationships are important. But he will also equally know that these relationships sometimes come to an end through decisions that are made elsewhere.
Importantly, on this mission, the Deputy Minister of Energy, Mines and Petroleum Resources, Mr. Nikolejsin, was there, who has been on the file and is the same deputy minister that has been there under the old government and has many of the relationships with the clean tech companies and the energy companies, whether it’s Mitsubishi or Pro Gas. In that way, at least in that very broad sector we were there to advocate for, those relationships are continued. But they’re also relationships that are continued through other representatives in the TIR office, which is, as the Minister of State for Trade said, very active.
B. Stewart: I’m assuming if those metrics are being met, etc., you wouldn’t have a problem with sharing the metrics and the performance in the last fiscal year 2018-2019.
Hon. B. Ralston: As the member will know, they’re calculated to the end of fiscal year, which was March 31, so they’ve not yet been compiled. But they should be available by May, and once they’re compiled, we’re prepared to provide the member with those metrics.
B. Stewart: Thank you, Minister, for that.
Okay. I know that you recently announced and opened a trade representative office in Singapore and all of these countries that are actively a part of the CPTPP. But I want to go back to our second most important trading partner, China. I just want to talk a little bit about what the plans are in China, given the tension between Canada and China and how that’s affecting, obviously, our forest products, which is one of the most significant. But we’ve seen with canola recently a non-tariff barrier used and how that’s going to….
First of all, how do we plan on managing China, considering the uncertainty with diplomatic relations between the two countries?
Hon. B. Ralston: The relationship with China is a long-term one. Canada was among the first western countries to diplomatically recognize China and has been present as a diplomatic force in China for some time. On the trade side, and speaking specifically for British Columbia, there is a long-term relationship, whether it’s the twinning with the province of Guangdong, which goes back to the 1990s…. The focus is on the long-term relationship, notwithstanding some of the current disagreements.
On the ground, in the sense of business relationships, the trade and investment offices are active. There’s a conference, I think, this week on LNG in Shanghai, and those representatives of British Columbia are present there. One can only hope that these difficulties are resolved, and certainly I’m sure many people share that view, but in the meantime, we look to the strength and the breadth of the relationship over a long period of time and hope that the current disagreements will be resolved.
B. Stewart: I want to talk a little bit about the importance of forest products in China. I am aware of significant inroads that the British Columbia industry made in the last decade, and of course, it has helped diversify or pivot away from being solely dependent on the United States.
I happened to be a part of a mission a few years ago when the Minister of MOHURD brought forward, I guess, a declaration or…. His plan was to see that the pre-assembly in building construction changed from a number which I believe at the time was about 5 percent and increased to 15.
Those types of relationships, as we talk about with Japan, although different, are really important. I think that the forest sector is obviously distressed by our Minister of Forests, Lands, Natural Resource Operations and Rural Development in not going to China back in December.
With the prospect of the Huawei–Meng Wanzhou case taking years in the courts before extradition, I’m kind of wondering: what’s our plan to maintain our second-largest export market for forest products, and how are we going to deal with that?
Hon. B. Ralston: Despite the recent tensions between Canada and China, the business relationship continues, and those efforts continue. Clearly, the market that’s been developed and the possibility of expansion of that market have huge significance for B.C. forest products.
I probably neglected to introduce the CEO of FII, Michael Loseth, who has joined us and is here as the agency that focuses in particular on that market. FII remains focused on China as a critical market and will continue to advance both the government-to-government and business relationships. Again, we’re focused on the long term and the importance of a business relationship with China in the long term.
Now, the member made reference to MOHURD, which is an acronym for the former Chinese Ministry of Housing and Urban-Rural Development. If I might say just that China set out 15 national construction policies related to prefabrication. So this is creating, as I think the member is aware, new opportunities to promote new building applications such as hybrid, concrete and wood construction, and prefabricated wood buildings.
FII and Canada Wood, which is an agency that’s funded federally, provincially and by the industry — tripartite funding — are pursuing opportunities for wood in this new prefabrication area, through face-to-face meetings with all levels of government, including that ministry that I referred to. Those opportunities continue at the officials level. There’s been no abatement of effort, and they continue heading forward.
B. Stewart: Thank you, Minister. I’m glad to hear that the branch of FII is continuing to pursue working with what I found to be a very knowledgable and insightful team that gave us great insight into the marketplace. And it is a competitive marketplace.
The question I’m really looking for is: if the case that is before the courts with the detained Chinese individual is to persist, is it going to be the policy that the government is not going to send ministers or senior staff into the marketplace? What’s the plan? That’s what I was asking.
Hon. B. Ralston: The case that is well known globally now…. As tempting as it may be to speculate on where that case goes or what the outcome of that case might be or what might happen along the way, I’m not going to do that. I don’t think that’s a fruitful exercise.
What I will say is that the agencies that I’ve mentioned — FII, the British Columbia Crown agency, and Canada Wood, which is, in part, funded by British Columbia — continue to be active on the ground. There has been no change in their focus and their effort.
B. Stewart: That doesn’t really answer the question. The question is whether the government is going to go back and have further trade missions there, as the Premier himself and other ministers like the Minister of Forests have undertaken, not only during their time in government but in the future. Sorry, I meant China.
Then the question is: how do we expand the opportunities in China while we don’t have people that are…? Besides FII, how do we expand and take advantage of opportunities in agrifood, the tech sector, health care? I think you’d know that BGI has invested in and made a commitment to be involved, or has in interest in being involved, in the new St. Paul’s complex.
I’m kind of thinking: how do you foresee moving ahead, growing our market share there? Secondly, there are second-tier cities, of which…. You kind of know the dynamics of China. Is the opportunity in second-tier cities being pursued?
[The bells were rung.]
The Chair: Members, the committee will recess for a division in the big House.
The committee recessed from 2:10 p.m. to 2:33 p.m.
[D. Routley in the chair.]
Hon. B. Ralston: Just to respond to the question that was posed before we broke to vote in the chamber, let me just recapitulate and say that there are trade and investment representatives in China who are located in Shanghai, Beijing, Guangzhou and Hong Kong. Those offices continue to seek to advance trade and investment opportunities in the key sectors — technology and innovation industries, life sciences, digital media, clean technology, aerospace and international education — and in natural resources — mining, natural gas, forestry and agrifood.
To respond a little bit more to the other aspect of the member’s question, over the past several years, British Columbia has been broadening and deepening our trade and investment ties with the key provinces, such as Jiangsu, Zhejiang, Guangdong, Shandong and Sichuan. Many of these provinces with mid-sized cities have populations larger than British Columbia and present new market opportunities for B.C. goods.
If I might give some examples of recent successes, Beijing’s BDR navigation company invested $41 million in Rx Networks, a B.C. mobile positioning company.
Guangzhou-based GF Securities invested $10 million in a B.C. virtual reality, augmented reality gaming company called Archiact Interactive. This investment allowed Archiact to expand its research and development centre. The trade and investment representative facilitated meetings with Archiact Interactive during the 2018 B.C. Tech Summit and continues to identify opportunities with GF Securities across sectors.
In an example that may be familiar to the member, Taisheng International Investment acquired 1,200 acres of industrial land in Terrace to build a manufacturing-oriented industrial park. Given the final investment decision of LNG Canada, that acquisition may result in a lot of business and investment activity. It’s right beside the Terrace Airport.
B. Stewart: Thank you, Minister, for that. Good to see that our offices in China are busy and active.
One of the things that’s mentioned in this year’s service plan is…. The performance measures on trade diversification have changed from last year. For instance, last year’s service plan used the amount of foreign direct investment supported by the ministry as a performance measure. However, this year’s service plan appears to have replaced the measure with the number of trade and investment opportunities supported by the ministry.
The previous measured the total of FDIs supported by the ministry in dollar terms, yet the new one measures the number of trade and investment opportunities. I can’t quite square that in terms of foreign direct investment, which is the attraction of businesses coming to British Columbia, as you mentioned earlier, Microsoft and others.
Can you explain why the previous performance measure was outright eliminated?
Hon. B. Ralston: The foreign direct investment number is still measured. It’s just not in the service plan. That’s all.
B. Stewart: Part of having a plan is developing that, which takes many, many hours, lots of staff resources.
The international business development division, which the reorg has changed, had a detailed budget that identified international events and activities it planned to undertake in 2018, and so on. This plan is built collaboratively and internally. The focus of the plan is to coordinate the entire trade and investment staff on the annual metrics. I’m assuming that there’s a plan for 2019. Is that a plan that you can share with us — and confirm that there is one in place?
Hon. B. Ralston: Earlier we spoke of the review, which was being conducted by PwC, of the TIR — the network, the metrics and the model. That work is ongoing and will dovetail with the plan after that work is finished. While that work is underway, all the TIRs are still executing on the trade promotion activity, the investment attraction and the outreach. All of that is taking place while that review is being finalized.
B. Stewart: In light of all the trade threats that British Columbia’s industries are facing — whether it’s the U.S. softwood lumber, the tariffs with aluminum and steel, the fact that we don’t have management or somebody in place to run our Japanese operations, or the issues around the government diplomatic relations or dispute with China — where is the ministry focusing on, to pivot or take advantage of new markets to help deal with all of those concerns I’ve mentioned?
In light of Brexit — as you know, the 12th is kind of the drop-dead deadline for the European Union — have you got plans to pivot to any of these new opportunities with the CPTPP, CETA or even the Canada-U.S.-Mexican agreement?
Hon. B. Ralston: I have acknowledged — I think it’s obvious — the importance of trade diversification in the present trade environment. Speaking first about Europe, there is a trade and investment representative…. The former British consul general at Vancouver has an office in London and is also opening an office in Munich, which seems wise as well, given the opportunities presented by the new CETA agreement.
Agrifood continues to deliver the most trade deals for B.C. companies in the European market. The EU TIR partnered with the Minister of Agriculture on a major series of initiatives, including the Brussels seafood show and Fruit Logistica.
B.C.’s technology companies continue to see success in Europe, particularly at the Mobile World conference in Barcelona, which was a leading global showcase for B.C.’s wireless sector. In 2018, the European TIR and the ministry facilitated over 700 business-to-business meetings for 28 B.C. companies exhibiting at the Mobile World conference.
To deal with diversification in Asia…. I think we’ve spoken already of the reason for being in Japan and Korea, as opposed to…. Given that in some respects, Japan has the same trade posture as we do — their two biggest customers are China and the United States — there’s a mutual interest there.
We’re also advancing in ASEAN countries. Specifically, there is a trade and investment office in Indonesia. The Philippines has not yet ratified the TPP, if they ever will. Certainly, there is an office there, and there’s an office in Singapore. Those opportunities outside of the traditional, perhaps, markets of British Columbia are being explored actively by the trade and investment network and by the ministry.
M. de Jong: If this is helpful for the minister and his team, we’ll take a break from purely trade-related matters to the more particular issue involving things that have just been dealt with in the House. Actually, I’m accepting the invitation of the minister’s colleague the Finance Minister to come and pose some questions, as they relate to an important dimension to the LNG sector that we hope and think is going to establish itself here in British Columbia.
First question for the minister is: to what extent has he been involved as the Jobs Minister, if at all, in the preparation of forecasts around jobs and employment opportunities?
Hon. B. Ralston: The ministry is involved in workforce development, and the specific group is the workforce development advisory group. Its role was to enhance the availability of necessary workforces and skills that were required to construct and operate proposed LNG projects in British Columbia. The objective was to ensure that the training and employment benefits of LNG would go to British Columbians first, with the priority for Indigenous peoples. The scope of that group’s work was expanded in 2018 to encompass a perspective beyond LNG to all major projects in British Columbia.
To give you a sense of the composition of that group, it’s composed of representatives from industry, organized labour, Indigenous organizations, communities and government. Some of these appointments continued from the previous government. Let me give you some of the names who are on it: Tracey MacKinnon of LNG Canada; David Keane of Woodfibre LNG; Bryan Cox, the LNG Alliance; Chief Clifford White; and, from labour, Tom Sigurdson and Jim Sinclair.
M. de Jong: That’s helpful. I wonder if the minister, then, having confirmed that he and the ministry are fairly intimately involved in this work, could provide the committee with an indication of their forecast. Let’s take a two-train LNG facility. What’s his ministry forecast, concerning the employment opportunities, the number of jobs, through construction and into the operation phase?
[S. Chandra Herbert in the chair.]
Hon. B. Ralston: As the member can probably deduce from the composition of that committee, these are people who are close to the industry and knowledgable about the industry — whether it’s from the labour side, the Indigenous side or the industry side — and have real experience in evaluating the labour needs of these projects.
Their mandate was to commence with a focus on hiring locally, hiring Indigenous people, hiring people from outside the regional area, across British Columbia and then to the rest of Canada. So that group was established prior to the election. The mandate has changed slightly, expanding it in 2018 to include other major projects, but that’s the effort that they were engaged in.
M. de Jong: Somewhat helpful. Not exactly what I was looking for. I was looking for a number, in fairness. I’m sure that the degree of involvement that the minister and the ministry have had convinces me that they will have…. In commending the agreements with LNG Canada, there have certainly been public statements just asking the minister to confirm, on a two-train project, the number of jobs — FTEs, if that’s the term we still use — that would be created through the construction phase and if he’s got an estimate on the operations phase. I’m mostly concerned about the construction phase since that’s where we’re at right now.
Hon. B. Ralston: As the member will recall, in that group was Tracey MacKinnon from LNG Canada. This is a very knowledgable group that is assessing their labour needs as they go along.
The member, I think, because it’s public, will have the letter from LNG Canada signed by the chief executive officer, setting out that there will be, at the peak of construction at the Kitimat site: “We would expect to require approximately 4,000 jobs. Based on the current work and shift assumptions, it would necessitate about 7,000 or more men and women in craft. With the jobs related to Coastal GasLink, there will be about another 10,000 craft workers employed at the peak of construction of the plant and pipeline.”
I also note that on that committee was a representative of Coastal GasLink, Kiel Giddens, as well. What is reflected in this letter, and would inform this committee, would be the assessment of perhaps one of the most knowledgeable people about their labour requirements — that is, those in charge of the project.
From this discussion, then those numbers would be taken to other agencies and ministries in government to look at the training requirements, particularly the Ministry of Advanced Education and Training, to make sure, as best as possible, that the skilled labour that’s necessary and anticipated is available for the commencement of the project.
M. de Jong: I just want to make sure we’re all talking the same language here. The minister’s colleague, on Monday, advised the House that she was operating on the basis that a two-train facility of the sort that we’re dealing with, with LNG Canada through construction, would create 10,000 jobs, followed by 1,000 permanent jobs. Does the minister agree with that assessment?
Hon. B. Ralston: The Minister of Finance gave a number which I agree with: 10,000 jobs during the construction phase and 1,000 permanent jobs after the facility opens.
M. de Jong: That’s what I was looking to confirm.
The Finance Minister also gave a number indicating what percentage of those jobs she believed would be filled by British Columbians and what percentage would be filled by non–British Columbians. Does the Minister of Jobs agree with her assessment, and would he restate the numbers?
Hon. B. Ralston: I understand that the Minister of Finance referred to a modelling exercise that the Ministry of Finance undertook jointly with LNG Canada. As the member will know from his time as Minister of Finance, typically, ministry officials engage in a very conservative evaluation. The modelling was done for generic high-low scenarios for a hypothetical LNG project and was very conservative for the purpose of estimating revenues. I think that’s the genesis of the document that the Minister of Finance was referring to.
M. de Jong: Right. That’s the document. What were the numbers, and does the minister agree with them?
Hon. B. Ralston: There are assumptions, key assumptions in the generic LNG project, which was developed by the Ministry of Finance. I think that’s the document that the member is referring to. The high and low split was…. I’ll have some comments on that before I conclude. But let me just say that the split between B.C. and non-B.C. project employment was, in a low scenario, 55 percent B.C., 45 percent non-B.C. In a high scenario…. Oh, the high and the low seem to be the same here — 55, 45.
M. de Jong: It’s a short range.
Hon. B. Ralston: Yeah, it is very short. I didn’t notice that until I began to read it.
Let me put that in context. Again, the letter is from the CEO of LNG Canada, who has said…. I’m quoting from the letter of March 21, 2019:
“We have a local-hire-first policy, to which the EPC contractor, JGC Fluor, is bound, and through which Indigenous, local community and British Columbia workers will be employed, followed by workers from other parts of Canada. JGC Fluor does not expect to need to hire trade workers from outside Canada, given market conditions. However, should conditions change through the construction period, temporary foreign workers may be needed in very low numbers for highly specialized and high-demand trades.”
As I think also was noted by the Premier yesterday or the day before, in the exchange in question period, the company has committed to a target of 25 percent apprentices on site and are contractually expecting the same of JGC Fluor. LNG has invested more than $1.5 million since 2015 in LNG Canada’s trades training fund to remove monetary barriers to the academic portion of apprenticeship training.
I’m also advised that, so far, there are no temporary foreign workers on the job site at all.
M. de Jong: Let’s not get ahead of ourselves. We’ll come back to temporary foreign workers, and we’ll come back to contractual obligations. I’m just trying to establish the baseline. The minister has indicated that the modelling reveals sort of a best-case scenario of 55 percent of those 10,000 workers being British Columbians.
The minister will also be aware, because of the work he has done with his colleagues, that the government has chosen to budget on the basis of British Columbia–based employment, or the employment of British Columbians, at 35 percent, with 65 percent non–British Columbians. I’m advised by the minister’s colleague that that is a product of forecasting prudence and advice from LNG Canada. Can the minister confirm that figure as well?
Hon. B. Ralston: The estimate of 35 percent was developed by the Ministry of Finance out of an abundance of caution — a lowball figure for erring on the side of prudence. I’m sure as the former Minister of Finance, the member will appreciate that tendency. That is an estimation for the purposes of calculating the personal income tax revenue that the province would derive from the employment of those people.
M. de Jong: To summarize, then, there seems, happily, to be a measure of agreement, which is always helpful in a cabinet, between the Jobs Minister and the Finance Minister. On a project that would create 10,000 jobs over the life of a construction…. It gets staged. We don’t have to get too involved in the details of that. Of those 10,000 jobs, somewhere between 3,500 and 5,500 — and one hopes the higher, the better — would accrue to British Columbians. If the minister disagrees with my synopsis of what we have learned and established, then I’m sure he’ll point that out.
Now I want to just take a moment and call this the trip down memory lane, if you will. Because it’s not the first time the House and the committees have had an opportunity to discuss LNG and LNG agreements. Happily, in this case, things have matured to a final investment decision. The House has just, in a fairly definitive way, voted on that moments ago.
We do have the benefit of the now Jobs Minister having expressed some views on what are essential prerequisites to an agreement. I have to say the government has been more than just a little bit vague about how at least one aspect of those prerequisites is being dealt with. I want to canvass that briefly with the minister today.
He carried a pretty significant burden for the then official opposition in 2015, when the House was recalled for a summer session and the agreement with Petronas was presented to the House in its entirety. He was the member for the official opposition who very ably took advantage of the opportunity to go through the agreement clause by clause, and he offered second reading remarks.
He had some specific things to say about employment. Ironic that now he carries the burden of being the minister for employment or jobs in British Columbia. In commenting on that deal, he had some criticisms, which is the job. On an agreement of such magnitude, it’s entirely appropriate to critique. He was talking about the proponent in that case.
On July 15, he had this observation and, I think, criticism. Pacific NorthWest, the proponent, “has issued some news releases saying that that’s his intention, to hire British Columbians first. Well, Petronas and Pacific NorthWest were very careful in the project development agreement to get benefits for themselves very carefully written and codified in the agreement. But on that side, one is simply to attend” — “on that side” referring to local employment — “to and expect the verbal assurance of the CEO without any accompanying language in the agreement.”
He went on a few moments later to say: “The idea that one would put that in an agreement was totally unnecessary….” He, the now minister, observed: “…we should simply just trust the proponent and take them at their word. That’s, I suppose, an interesting point of view, but that’s certainly not what the Australian agreements say, and that’s, I think, not the best approach.”
He went on, the minister now: “…members of the labour movement who have been supportive of LNG in general terms are disturbed by the lack of specific contractual language supporting jobs for British Columbians and Canadians.”
The minister had some very specific things to say and some specific expectations. I think it’s fair today, in his capacity as Jobs Minister, to ask him to demonstrate to the committee how he actioned those expectations at a time when he was very much responsible and very much involved. His colleagues, at least, have pointed to aspirational language, have pointed to letters and statements and statements of goodwill and statements of intent, largely similar to what we heard 2½ years ago, which the minister then characterized as being wholly unsatisfactory and insufficient.
Now would be the moment to succeed where his colleagues have failed, quite frankly, and point the committee to the specific contractual language — the minister is very able counsel, so he knows the difference between binding, contractual language and statements of intent and aspirational documentation — that British Columbians can bank on and the government can enforce to achieve and maximize the employment of British Columbians in the way that I think all of us would like to see.
Hon. B. Ralston: I thank the member for his carefully constructed and well-crafted question, and I appreciate the research that he’s done. It’s always a mixed feeling when one hears what one has actually said from an official transcript, so I’m digesting that. But let me say this. I think there are some differences between what the circumstances were that I was commenting on back then and the circumstances now.
You have, in the letter of March 21, 2019, the words of the CEO of LNG Canada: “We have a local-hire-first policy to which the EPC contractor, JGC Fluor, is bound” — that’s a condition of the main contractor, and they are bound to that particular policy; he goes on to say: “and through which qualified Indigenous, local and community workers will be employed, followed by people from other parts of Canada.” Now: “JGC Fluor does not expect the need to hire trade workers from outside Canada, given current market conditions.”
I think that is a different circumstance in the sense that the main contractor is bound by that condition. In addition, the main contractor is bound to…. “We are committed to a target of 25 percent apprentices on site and contractually expecting the same of JGC Fluor as well.”
Let me just go on to say that most recently, in a tweet, Susannah Pierce, who’s a senior executive at LNG Canada, said the following: “LNG Canada has been public in its commitment to hiring local, regional, provincial before going outside the province. It is truly a shame that our commitment and record to support local employment has become a political football.”
I would kick that one over to the member opposite.
M. de Jong: The minister is very capable and understands the significance of being a party to a contractual arrangement with rights of enforceability versus being a passive observer. The situation he has just described places the Crown in Right of the Province of British Columbia as a passive observer, unless he is going to stand up in a moment and talk about rights of enforceability that would trump a change that could conceivably take place between the proponent and the contractor. I’m not suggesting that’s anyone’s intention.
The question here is not about intention. The question is about comparing the position that the minister and his colleagues took just a few years ago when they said, rather explicitly, that it is not sufficient simply to trust the positive intentions of a company. That was the criticism.
There were aspirational letters and attachments to the previous agreement about maximizing local hiring, about involvement with First Nations. And what was the criticism from the minister and his colleagues then? They weren’t built in, “codified,” to use his word, as part of the agreement.
What I think he is saying today — and in the absence of pointing to language of enforceability and rights of enforceability — is that, actually, he and the government are content now to trust and rely on the good intentions of those involved. I have nothing to bring to the committee to challenge or question that, but it is an interesting change — an interesting change in thinking, an interesting change in what are essential prerequisites to a deal.
I’m focusing on one. There are many, but we’re going to focus on the area for which the minister has ministerial responsibility. The letters are fine. The contract that presently exists between the proponent and their chief contractor is fine, but will the minister confirm that the government is not a party to that arrangement? Were it to change, there are no mechanisms to enforce any of the numbers or any of what is reflected in those positive statements of intention.
If I’m wrong, now is the time to tell me. Now is the time to stand up and say: “No, the member is wrong. Here are the specific rights of enforceability that the government has secured as part of this arrangement to ensure that there are X number of apprentices, that there are X number of British Columbia residents, that we’re budgeting on the basis” — apparently, the government is — “of 35 percent, with hopes that it’ll be 55 percent.”
Even for those numbers, which I think will surprise a lot of British Columbians, there are no guarantees, unless the minister can stand here and will say, “No, the member is wrong. Here are the guarantees. Here is the language. Here is how we have codified our expectations in our arrangement with the proponent,” and what has led to some of the concessions that we have given them on other fronts — taxation and elsewhere that we don’t need to get into here.
Hon. B. Ralston: I think it’s perhaps most helpful to look at what is actually happening on the job site in Kitimat. The CEO, Andy Calitz, has said, by letter to the Premier, the letter that’s been referred to, that there are over 600 people employed on the site, and the most recent number was during December. Of that number, approximately 45 percent were local residents from the local Kitimat-Terrace area or from a First Nations community. We’re also informed that among the labourers or the tradespeople, there are no temporary foreign workers at all.
Clearly, Susannah Pierce, in the tweet that I read, has expressed the intention of the company — that there’s every expectation and intention to continue on that path. I think probably the most important way of evaluating that expression of intention is what’s actually happening on the job site in Kitimat right now.
M. de Jong: Well, a couple of things on the positive front. I have tried, and will do so again here, to acknowledge something that I think the government is entitled to acknowledge and is the product of the work they’ve done. When one has been labouring in the past on something, one is inclined to hope and think that one’s efforts helped contribute. But the government is entitled to tout and acknowledge and celebrate the fact that we are talking about an agreement that has given rise to a final investment decision and work is underway.
The minister points to what’s happening on the ground. About 5 percent of the labour component has now been deployed, and the minister points out that he is satisfied with the data and the evidence that British Columbians are participating at a reasonable level in this major project. It is 5 percent. The government’s numbers are: somewhere between 45 and 65 percent of the participating labour will not be from British Columbia.
I think that probably took a lot of people by surprise. It’s certainly not something that the minister or his colleagues took any effort in expressing until we had an opportunity to pose some questions to them. I suppose, at some point, in a more candid moment, he or his colleagues will point out whether they’re satisfied with that number or recognize it as a reality.
I’m going to say something else. Well, I mean it to be complimentary. The minister, at least a moment ago and on an occasion just before that, was able to blurt out the term “temporary foreign workers.” That is not something his colleagues have been willing to do, which makes the conversation about the topic very difficult.
We were told that there will be aspects of this project in the establishment of a new industry in the country that will engage foreign experts. I think the minister is alive to that. In these early days, he mentions that that’s not the case, but I think most people understand there will be a dimension of that to the project.
What we’ve asked, and what I’ve tried to ask the member’s colleague, the Finance Minister, who was designated to speak on behalf of the government on this topic, is what the forecasts for that are and what steps, if any, have been taken to facilitate the entry of temporary foreign workers.
The committee has much work to do, and there are other aspects of the estimates, so I’m not going to prolong this. I wonder if the minister might indicate…. He heard me refer in the House a day or two ago to a document, a decision note. Does he have the document?
Interjection.
M. de Jong: I’ve got a couple of versions of it, but for the moment, I’m going to deal with the one I received officially through FOI channels. Here’s what the document appears to say. Back in November of 2017…. Well, it was prepared in November, and I know enough to know that that doesn’t mean the minister saw it in November. We do know that he saw it later in December.
At the end of November or beginning of December, a decision note was prepared that speaks to the issue of temporary foreign workers. The redacted version that I received says the following: “Timely access to temporary foreign workers to address labour shortages was considered a key factor in the feasibility of LNG Canada’s project.” Then it goes on to say: “They” — referring to LNG Canada — “may still feel that temporary foreign workers are an essential part of project feasibility and would want to have access to an international workforce to address specialized skills not available in Canada.” I don’t see anything surprising in that statement, by the way.
There’s then reference to the global talent stream, the GTS, of the temporary foreign worker program, a federal pilot project launched in June 2017. There’s a description of what that is and how it might be applicable, and it talks about the employer under that agreement receiving an exemption from the four-week advertising requirement, an expedited application process and an exemption from doing a transition plan for each temporary foreign worker. It sounds like an expedited process for bringing in temporary foreign workers.
Then there is reference to: “In terms of considerations for the minister, the implication of the relationship with LNG Canada. The willingness of both the federal and provincial governments to establish such a document was perceived extremely positively by LNG Canada and seen as a signal of support for the project more broadly.” There are three broad areas of options listed on the redacted version that are redacted, and then the signature block with a circled “approved” and the minister’s signature.
So surprise, surprise. I asked the minister what he approved with respect to temporary foreign workers. And in asking that, I hope I have been fair in pointing out that the idea that there would be some specialized foreign workers engaged in the establishment of a new industrial sector in British Columbia is neither surprising nor offensive.
The only part about this that I find offensive is the unwillingness so far of members of the government to acknowledge that despite all the rhetoric and the kind of commentary we heard two and a half years ago, they have been actively involved in developing a program protocol for the expedited entry of temporary foreign workers. I just want this minister to be honest — honest with the committee and honest with the people of British Columbia — that that work has been undertaken. And what are the results of that work?
Hon. B. Ralston: Let me just say this, and to be clear, our government has not entered into any new agreements with LNG Canada or the federal government with respect to foreign workers on LNG projects. I understand that there is a letter of intent with respect to temporary foreign workers, put in place by the previous government, as it relates to LNG Canada. That letter of intent remains in place.
The briefing note that the member is referring to was prepared by staff at the Ministry of Jobs, Trade and Technology to inform me, as the minister, of the status of workforce discussions related to LNG and the range of federal mechanisms through which employers can access foreign workers on major projects. LNG Canada would have access to the same federal expedited processes that exist for other employers, should they qualify.
In response to the briefing note, I, as the minister, approve maintaining the status quo left to us by the previous administration. Let me stress this. There is no new agreement on temporary foreign workers with LNG Canada.
Through the workforce development advisory group, which I’ve referred to earlier, which has representatives from First Nations, organized labour, industry and government, we have continued to work diligently to ensure that British Columbians are always prioritized and will benefit from major projects. LNG Canada remains committed to hiring First Nations, locals, British Columbians and Canadians, before any consideration of labour from outside the country.
Let me just add this, as well, in terms of a comment. With respect to the estimate of a 35-65 split for B.C. and non-B.C. workers, this, as I’ve said earlier, came from a conservative modelling exercise that the Ministry of Finance jointly undertook with LNG Canada. The modelling was done for a generic low-high scenario for a hypothetical LNG project and was very conservative for the purpose of estimating revenues. The 35-65 number that the member has mentioned is simply that — an estimate. A very conservative one, as he will know, is the want and the inclination and, indeed, perhaps the requirement of senior officials in the Ministry of Finance.
We fully expect that the B.C. employment numbers will be higher, based on LNG Canada’s latest workforce planning document and what’s taking place on the site in Kitimat already. Both the conservative modelling scenario and the LNG Canada workforce planning document are publicly available on the Ministry of Finance website.
M. de Jong: I, of course, appreciate that the minister can restate stuff. But I hope he understands I am trying to be fair. When I talk about the forecast, the government, from the documents we’ve had…. Happily, this minister has been somewhat more forthcoming than his colleague. He tells me the government of British Columbia is forecasting that, for the employment created on this type of project, somewhere between 35 and 55 percent of those employed will be British Columbians. So 35 percent is a conservative estimate; 55 percent seems to be the high end of the scale.
I’m not trying to trick anyone. I’m not trying to manufacture numbers. The government’s numbers suggest they are forecasting that somewhere between 35 percent and 55 percent of the jobs will accrue to British Columbians. I think that range will surprise some people, but there it is.
Getting back, then, to temporary foreign workers and the decision that the minister was asked to make. I’m still going to continue to rely on the redacted version for the moment. The note contains this passage. “Using the annex….” The annex seems to refer to a program under the global talent stream of the temporary foreign worker program that this federal pilot program launched in 2017. “Using the annex would send a public signal of B.C.’s support for the use of temporary foreign workers for LNG projects. To date, B.C. has not used the annex.” Will the minister confirm that B.C. continues not to use the annex, if that is so?
Then the document continues: “There may now be alternative options available to obtain expedited processing in a way that more clearly demonstrates the benefits to local workers and removes reference to the annex.” Has the government availed itself of an alternative option to obtain expedited processing?
Hon. B. Ralston: I’m obliged, I’m told, to correct the member. The “annex” referred to is an annex of the Canada-B.C. immigration agreement. It’s not related to the global talent stream. To answer the member’s further question, B.C. has not used the provision of the annex that enables B.C. to request — and that’s “request” — the federal government to provide expedited processing for certain occupations.
Just by way of some colour commentary from Tom Sigurdson, who is on that workforce development advisory committee, responding to some of the debate that took place on this issue yesterday…. I’m quoting from his tweet of yesterday: “What unmitigated nonsense. Local, Indigenous and B.C. workers have first priority for employment, followed by Canadians, before any foreign workers will be on site. The TFW review process is in place and secures work for B.C. first.”
M. de Jong: I am obliged to concede that the minister and his colleagues are not the only people whose measure of what constitutes a guarantee of B.C.-first employment is different today than it was 2½ years ago.
Back to the decision note. On the bottom of what I believe is labelled as page 5 of 8 is this paragraph: “The final consideration is the implication on the relationship with LNG Canada. The willingness of both the federal and provincial governments to establish such a document was perceived extremely positively by LNG Canada and seen as a signal of support for the project more broadly. A decision to continue that support or to rescind it will be interpreted similarly.”
I have two questions. What is the document that is referred to in that paragraph?
Hon. B. Ralston: The document that’s referred to is the letter of intent with respect to TFWs put in place by the previous government as it relates to LNG Canada. That’s the document that’s being referred to. It was never released publicly, I’m advised.
M. de Jong: The final line in that paragraph is: “A decision to continue that support or to rescind it will be interpreted similarly.” I’m going to suggest to the minister that the information I have is that he and the government chose to continue to support it, within the meaning of that paragraph.
Hon. B. Ralston: The answer is yes.
M. de Jong: The minister has pointed out that the document, the letter of intent, wasn’t released by the previous government. Is it in the public domain now? If not, will he release it?
Hon. B. Ralston: Because it’s an agreement between the federal government and the provincial government, we’d have to seek permission of the federal government in order to release it. But we will seek that permission from them.
M. de Jong: I think what the minister had said is that he has prepared, subject to securing agreement from the federal government to release the documentation, the letter of intent that he and the government chose to continue to support, with respect to the access to temporary foreign workers. I’ll just check that I’ve got that correct.
Hon. B. Ralston: The answer is yes.
M. de Jong: My time here is, therefore, nearly complete. Before I turn it back, I want to leave on a particularly positive note. I haven’t advised my colleagues that I was going to do this, but I see representatives here from Forestry Innovation Investment. I know the minister and his colleague, the minister of state, have responsibilities there. I feel obliged to take advantage of the opportunity to comment very favourably on the work of that agency and to commend the ministers and the government for continued support for that organization.
From infancy, it has played a major, major role, in my view, in securing access in some very important areas of economic life in British Columbia. Access to other markets is not always easy. I know it’s one piece of the overall trade puzzle, but some of the specific areas of success in parts of Asia — South Asia, India — are things that, I think, will serve the interests of the province and the people well and are things that I am proud of.
With continued support from the government, I think there is much to be achieved, much positive achievement lying ahead. That’s my admonishment on behalf of the folks at FII and the work they do.
Hon. B. Ralston: The member’s very gracious comments are acknowledged. I concur with his assessment of the work of FII — both of the CEO, Michael Loseth, and of his team. As we seek to diversify our impact on global markets, they’re an important part of our future.
C. Oakes: I would like to take this opportunity to canvass an area, so it helps support with the changing of the staff, of the regulatory competitiveness branch, please. My first question is a simple one. What are the budget changes this year for the regulatory competitive branch, and have there been any changes in FTEs?
Hon. B. Ralston: It’s a relatively simple answer. I just wanted to also convey some of the nuance, and I want to welcome the member to the debate here.
Formerly, there was what was called a regulatory and service improvement unit and a cross-sectors initiative unit. Those two have been consolidated into the sector and regulatory competitiveness branch. But there is no change in the number of full-time-equivalents, or employees, as we call them, at all.
C. Oakes: Thank you very much, Minister. So just to confirm, is that seven FTEs?
Hon. B. Ralston: Yes. It’s six plus the executive director.
C. Oakes: I really do want to say thank you very much for the commitment you’ve made to continue on with the efforts around ensuring that we continue to have a net zero around regulatory count. I want to say thank you to the amazing staff who have worked tirelessly over many years. British Columbia is a significant leader across the globe on behalf of that. Your commitment to continue on with that work — I just want to say thank you very much for that and, of course, to say thank you to staff.
I’ll go to the service plan now, if I may. I would like to start on objective 1.3, which is “to reduce the cumulative impact of government policy decisions on businesses and the economy to encourage business growth.” Again, I would like to compliment the minister on changes that I see in the key strategies. I think this is a really fulsome opportunity for us. If I may, I would like to read into the record the strategy that has been outlined in the public service report. It’s to:
“Implement a framework to evaluate the potential business and economic impacts of government’s policy decisions; maintain a net-zero increase to government’s regulatory requirements; and maintain the regulatory reform policy, including the small business lens, to support ministries in identifying and mitigating negative impacts of any new or amendments to legislation, regulation and policies and forms on small business.”
To the minister: could you kindly outline what that framework looks like?
Hon. B. Ralston: I think some of what is set out in the strategy is pretty straightforward, but it is an effort to recognize that initiatives by government have potential impacts upon the business and other parts of society and that that should be part of the lens in assessing a new policy. Certainly, it’s my view as the minister that the regulatory burden that can sometimes result from action by government is sometimes a real business issue. That’s what the policy is designed to address.
C. Oakes: I appreciate what the minister has said, and I think we’re absolutely on the same page. I think it is pretty straightforward, so the questions I have, following, I think are simple analytical and number questions.
My first question is: could you kindly tell me the regulatory impact of the Budget Measures Implementation Act, Bill 44, 2018, which was the employer health tax — first part of that question, so the regulatory count. And the second piece, you have a framework in place as pertaining to the key strategy that the minister is required to identify and mitigate the negative impacts. I would like to understand how you will be mitigating those impacts.
Hon. B. Ralston: I appreciate the member’s continuing and keen interest in this topic. Under the statute that the member will be familiar with, the Regulatory Reporting Act and the regulation, government is required to release an annual report on its regulatory reform progress by June 30 each year. That’s something I think the member, from her previous time as the minister responsible, will be familiar with.
The annual report provides comprehensive information on regulatory and service improvement activities across government and the number of regulatory requirements as of the end of the fiscal year. The 2018-19 annual report is currently being developed with input from all ministries for release by June 30, 2019.
C. Oakes: I appreciate that. What I am actually just talking about is the requirement that the minister has to apply a small business lens. Every piece of legislation that goes through, unless there has been a change, gets coded. The minister signs off on every sheet of legislation that tells how many regulatory increases or decreases there may be in a piece of legislation.
I assume, because we continue to have the regulatory body and we continue to do the regulatory count, that the minister continues to also sign off on the regulatory forms of every piece of legislation that goes through cabinet.
If it’s easier for you to get the information after, could I kindly get the regulatory sheet that the minister signed off on for the Budget Measures Implementation Act, 2018, Bill 44?
Hon. B. Ralston: I just wanted to correct what may be a misleading impression that’s been left. I, as the minister, do not sign off on every piece of legislation. The minister responsible for that piece of legislation in the case of the bill that the member has referenced would be the Minister of Finance. That’s part of the screen that’s applied and part of the decision to send the legislation forward. So that’s not something that I do, other than legislation that emanates from my ministry.
C. Oakes: To the minister, thank you very much for making that correction.
I was reading your mandate letter, and there is a responsibility that the minister has to work cross-ministry to ensure that every piece of legislation that does come forward through cabinet ensures that there is a small business lens applied to that. So I certainly know that in my time — and certainly, maybe it has changed — and reading what your key strategy is in objective 1.3…. I know assumptions always get us into trouble, but one would assume, based on your mandate letter that says you are to work cross-ministry on any piece of legislation that comes forward through to cabinet that will have impacts on small business, that you are to be working with the ministries on those regulatory pieces on the first side.
On the second side, in your service plan, you have a responsibility….
The Chair: If I might, Member, the appropriate form of address would be “the minister has” as opposed to “you.” I don’t have a service plan, and you’re referencing me as the Chair when I think you’re meaning to reference the minister.
C. Oakes: Thank you very much, Mr. Chair, and thank you for that correction.
In the minister’s service plan, it identifies that the minister has a responsibility to identify and mitigate any negative impacts on any new pieces of legislation that will impact small business. What was the work that the minister did to first do the analysis on the legislation that would impact small businesses through the employer health tax? And the second component of that: what steps will the minister take to mitigate those incredible impacts on small business?
Hon. B. Ralston: As part of the process of bringing the legislation forward, Ministry of Finance staff advising the Minister of Finance on that particular piece of legislation would be obliged to follow the checklist of the regulatory reform act, including the small business lens. But any further questions about that should be directed to the Minister of Finance in her estimates.
[R. Leonard in the chair.]
C. Oakes: I would like, while there is a change in the Chair, to read out a few of the small businesses that we’ve certainly heard from, and I’m sure the minister has as well.
Flying Fresh Air Freight in Richmond — the employer health tax will cost them $40,000 a year. Gabi and Jules in Port Moody, $6,000. Inland plumbing and heating in Kelowna, $185,000 a year. iTel Networks in Kamloops, $95,000 a year. Jansen family farm…. We all know we’re a very strong supporter of agriculture, and the government likes to talk about their support for agriculture. The employer health tax will cost them $100,000 per year.
KF Aerospace in Kelowna, over $1 million. LIFESUPPORT Patient Transport in Parksville, $70,000. Nature’s Fare Markets, in various locations, will cost $2 million. That’s the employer health tax. Ocean Trailer in Delta, $125,000. Panorama Mountain Village in Panorama, $160,000. Parksville Chrysler, $60,000. Pioneer Chrysler Jeep in Mission, $76,000. A restaurant owner, Justin Atterbury, in Columbia Valley, $22,000. The Milner Group in Nanaimo, $55,000. The list goes on and on and on.
In every single riding in the province of British Columbia, small businesses are being significantly impacted by a piece of legislation that this government brought forward. The minister has a responsibility, as outlined in his service plan, to identify the mitigation that will be taking place to support small businesses with the increased costs that legislation has brought forward.
Again, how will the minister mitigate these costs of the employer health tax on small business?
Hon. B. Ralston: Let me just set out, by way of preparatory comments, some of the initiatives that the provincial government has undertaken to support small business. The member may be familiar with these, but I think they bear repeating in the context and the implications of the question that she has asked.
The government has implemented a small business corporate tax cut from 2.5 percent to 2 percent. Small businesses in British Columbia continue to benefit from the second-lowest small business tax rate in the country. Those measures allow small business owners to keep more of their revenue and invest it in their businesses and communities.
The PST on non-residential electricity was cut in half, to 3.5 percent from 7 percent, effective the first of January 2018, and it’s now completely eliminated as of just this week, April 1, 2019. That will generate approximately $150,000 in annual savings for B.C. businesses. The small business venture capital tax credit, sometimes referred to in a colloquial way as the angel investor tax credit, provides 30 percent tax credits to B.C. residents who invest directly in companies or in managed funds.
That act had not been modernized for at least over 12 years. Tax credits offered support up to $128 million of equity capital annually on $38.5 million in budgeted tax credits. It helps de-risk investment and helps small business access early-stage venture capital, helps start a business, commercialize ideas and create jobs for people in every corner of the province.
The new B.C. procurement strategy promulgated by the Ministry of Citizens’ Services has modernized government purchasing and made it easier for businesses to access opportunities. New under this strategy, the concierge program allows industry experts to propose potential solutions to government business challenges prior to starting the formal bidding process. This has been particularly successful with small and medium enterprise.
We have, as a government, restored the tax benefit for credit unions and made it permanent. Credit unions are an integral part of helping small businesses in rural communities thrive while retaining profits in the hands of their members and allowing those dollars to be reinvested in local economies.
Small Business B.C. is the administrator for the export navigator program, which is a program that offers individual community-based export specialists who can provide a personalized, step-by-step process or approach to exporting and help small business grow their potential markets beyond local and regional markets to international ones with the appropriate export information programs and services at every stage.
Let me just say, finally, what I’ve heard, and I expect the member has as well…. I know, certainly, that I’ve heard from the Surrey Board of Trade in my community and, as a member of the Finance Committee in years gone by, from the Prince George Chamber of Commerce that the access to affordable, reliable, dependable child care has been a real boon to small businesses who have then had access to people who would otherwise not be able to join the economy or work in small businesses — largely women but not entirely women. I wouldn’t want to make that judgment.
In addition, one of the other barriers to business success has been the ability to hire in the very hot economy that we have, with the lowest unemployment rate, for 19 months, of any Canadian province.
To get access to affordable housing…. That has been a barrier to attracting staff for many businesses. So the government is engaged in a very determined plan to increase affordable housing and tackle that through a 30-point program. Of course, the issue is complicated and doesn’t get turned around immediately. But certainly, we’ve made important steps there.
Finally, access to public transit, which enables small businesses, again, to get access to workers who can safely get to work and get home in a reliable, safe and affordable way.
Those are the many steps that we’ve taken to assist small business. I recognize, as the member will, that small business is an important part of the B.C. economy — 493,000 small businesses, I think, by last count. A dynamic, important part of the economy which I’m proud to be responsible for and work hard to advance their interests.
C. Oakes: To the minister, thank you. With your list, I have a list of actually 19 new taxes that I could read out, as well, that comes to a total of $13.718 billion. If you look at even the employer health tax alone, we’re looking at $6.25 billion over the next five years. So one can imagine that the list that the minister has identified certainly is on a scale much smaller than what the increase is in taxes.
Last year when we canvassed the shift of the small business tax from 2.5 to 2, I believe that the amount that was identified…. And we certainly appreciate the minister doing that. But if you look at moving the 2.5 down to 2 percent on the small business tax, it was estimated to save about $70 million. Now, if that figure has changed, I would be happy for the minister to correct me on that amount.
The other amount that we canvassed last year — and, again, we applaud the government for the removal of PST on electrification — was $50 million over two years. That was the amount identified. Again, we appreciate any amount that the minister supports with small business. We think that’s incredibly important. But one can just… Even if you look at the employer health tax, at over billions of dollars, compared to in the small millions, it’s a significant shift.
I would, if I may, as well…. The minister brought up the Surrey Board of Trade. I am sure that the minister has received this from the Surrey Board of Trade on their comments around the employer health tax:
“First, the new tax will shift roughly $2 billion of the $2.6 billion annual MSP tab entirely onto employers…. We live in a new reality today. Businesses are facing the cumulative effects of excessive tax increases, both federally and provincially, that will challenge their ability to invest and grow.
“The EHT is simply too much for businesses, especially in conjunction with the loss of revenue-neutrality of the carbon tax and its lift to $35 per tonne from $30…increases to the minimum wage, increases to the Canada Pension Plan contributions and the corporate tax hike.”
They had asked you to stall the EHT. The EHT could stall economic growth, and they had put in a request to you, Minister, to look at that in support of small business.
I’ll move on to my next line of questions. Could the minister kindly identify for me what the regulatory count was for the Budget Measures Implementation Act, 2018, Bill 2?
Hon. B. Ralston: As I said earlier, the Regulatory Reporting Act requires the government to report out its progress on regulatory reform by June 30 each year. That report includes the total regulatory count for government as a whole. That’s required by legislation.
Then, also, although it’s not required, there are counts for individual ministries, but it is not broken out by bill. That is no change from the time when the member opposite was the minister.
C. Oakes: Thank you very much, Minister. My question is around an item that was in the Budget Measures Implementation Act: the carbon tax. Today we had the opportunity to canvass, in the House, the fact that we have the highest gas prices in North America currently. The province has the ability for 35 cents of that, and there are steps that the minister and the government can take to address that.
Further, we just finished passing a bill providing significant money back to a large multinational around the carbon tax.
Surely the minister has a plan on how you are going to support small businesses with the carbon tax increases. I’m interested to understand what that plan is and what dollar amounts will be going back to small businesses.
Hon. B. Ralston: I just want to generally talk about what is good for small business. Certainly, a booming economy where unemployment is the lowest in the country…. People who are employed tend to have more money to spend, and they will spend it on local businesses. That’s generally what happens with people who spend their wages, except in the case of the very top percentage, who might spend it elsewhere, but that would involve the top 1 percent. Most people spend their money locally, and that’s generally good for small business. So that’s one of the benefits of having the unemployment rate where it is.
The second thing is that wages, union and non-union, have generally increased. They were pretty stagnant under the previous government. Increased wages, again, give people the confidence to spend locally. An economy that is growing, that has low unemployment, I am told — and I think most small businesses would agree with this — is one where it’s good to operate a small business. The opportunity to grow your business in that environment is a good one.
I think I acknowledged earlier that we’ve taken a number of measures — I won’t repeat them — that are designed to have a positive impact on the small business sector. I recognize that the small business sector is an important part of the British Columbia economy. It’s perhaps disproportionately large relative to the small business sector in other provinces, so it’s probably more important here in British Columbia than it is in other provinces. I think that that strong economic environment here helps all businesses and our citizens. A rising tide lifts all boats.
C. Oakes: Thank you to the minister. I was checking B.C. Stats just the other day. I appreciate that we all want a strong, growing economy. I guess I should also say that I take that as there is no money in the budget to help support small businesses with the increased fuel prices, but I appreciate the answer.
I note that the minister was talking about a growing economy and that the consumer has more dollars in their pockets to spend. But on B.C. Stats, I have noticed that there has been a significant increase. In fact, on the business side, bankruptcies have risen by 200 percent over the last year, and 200 percent is quite a significant increase in bankruptcies. One would suggest that that is the nature of what is happening with the economy.
On the consumer side, if you look at where we were in August of last year — August of 2017 versus August of 2018 — consumer bankruptcies have increased by 6.1 percent. How does the minister reconcile the increases we are seeing in bankruptcies on both the consumer and the small business side with what the minister has talked about — the growing economy?
Hon. B. Ralston: Let me just talk a little bit about the economy. Notwithstanding what the member has said, I would go back to say that the unemployment rate here is the lowest in Canada. The economy is doing very well. Wages have increased 4½ percent.
In central and northern British Columbia, where the beneficiaries of the final investment decision made by LNG Canada…. I was in the natural resources conference in January, not too far from the member’s hometown of Quesnel. There was great excitement about the economic prospects for northern British Columbia. I didn’t encounter the gloom and pessimism that the member is expressing. It was certainly an atmosphere of confidence, of forward-looking enthusiasm about the economic prospects for northern British Columbia. I was struck by the number of Indigenous entrepreneurs and companies that were there. In all the resource sectors, certainly, a strong view and a robust view of British Columbia’s future.
There are a number of other investments that the province has attracted, I think, by all the attributes that we are so proud of here, on all sides of the Legislature: our great education system, our public health system that is a real strength — contrast that with what they have in the United States — access to talent, our great public educational system, our K-to-12 system and the environmentally-sound basis of most of our communities.
I think, perhaps, if I could characterize it this way, the member seems to be looking for clouds on a sunny day.
C. Oakes: A 200 percent increase in bankruptcies isn’t looking for clouds. It’s a reality of what we’re hearing across the province with the cumulative nature of the tax increases that small businesses are experiencing under this government.
I’m going to shift to a little bit of a different topic. I would like to read out something that one of my colleagues provided me from one of their small businesses. Currently there is a consultation paper that is being forwarded by the Ministry of Labour, Employment Standards Act, which is proposing significant changes that are going to have devastating consequences on small businesses.
I would like to read out a letter of what I received. This is from Browns Town Centre. Well, I won’t…. I’ll give the math. I won’t say the commentary of what was said:
“My staff levels hover above and below 50 employees. In the restaurant business, you don’t have the luxury of doing today’s work tomorrow, meaning for every person on a paid sick day, someone else will be paid to do their work. That is potentially 500 paid sick days per year, at an average of five hours a shift and $15 an hour. That’s $37,500 before all other grabs.
“In addition, EHT, because of my now-inflated payroll — $1,125. All other fringe costs, EI, CPP, etc., would be about the same. Now, of course, these numbers are worst-case scenario, but if you can cut that in half, it’s still devastating.
“To put it in terms that everyone can understand, if this worst-case scenario became reality, I would now be operating my business for a full five weeks entirely dedicated to funding this new proposal. Yes, 10 percent of a year.”
The types of initiatives that are being brought forward in legislation through this government are having incredibly dramatic impacts on small businesses. When you start seeing bankruptcies to the tune of 200,000…. It’s not that I’m seeing grey skies on the horizon. I am suggesting to the minister that we have significant consequences and impacts that are being placed on small businesses, small businesses that, I may remind the minister, often don’t make minimum wage themselves.
These are your mom-and-pop operators. It’s your coffee shop. It’s your corner grocery store that has often been there for generations. They work seven days a week. They put in a significant amount of hours. The cumulative nature of all of these taxes…. They have nowhere to receive that revenue unless (a) they cut staff, (b) they go out of business, looking at the bankruptcy rates, or (c) they raise increases.
I will say…. I know that members all across the province have strong relationships with their small businesses in their community. In many instances, they’re your family. They’re the people that you know best in your community. That is a symbiotic relationship. Small businesses do not want to increase their costs. But somehow, when you look at these 19 new taxes that are being placed on by this government, something has to give.
To the minister: what steps will you be taking around this consultation to ensure that small business voices are going to be heard?
Hon. B. Ralston: Two parts of a response here. One, the reference to the Minister of Labour and his consultation. He has actually been invited to and will attend the Small Business Roundtable on April 15. The minister will be familiar with the Small Business Roundtable, which advises the ministry and the minister about trends and concerns of small business. That’s where that discussion will take place.
I’ve also asked for the staff to go to the Industry Canada website on bankruptcies and proposals. What I am told that website reveals is that on December 31, 2017, for the calendar year 2017, there were 145 business bankruptcies and proposals in British Columbia. On December 31, 2018, business bankruptcies and proposals for the entire calendar year, 103. The advice that I have, contrary to what the member has advised, is that, in fact, business bankruptcies in British Columbia have declined from 2017 to 2018.
C. Oakes: I appreciate that you went to the Industry Canada website. I went to B.C. Stats. That’s where I accessed some of the…. I’d be happy to try and pull that up. I was looking for the exact form. But let’s put that one aside.
Perhaps the Industry Canada one is a different number than the B.C. Stats. I certainly trust that that could easily happen. But here’s another barometer. The Canadian Federation of Independent Business’s monthly Business Barometer is a reliable indicator of economic conditions that is regularly used by a number of financial institutions.
In September, the Barometer showed small business confidence has weakened significantly, sitting at 55.9 percent, down from 69.5 percent in February the year before, placing the province’s entrepreneurs as being the second least optimistic in Canada. We were very fortunate for many, many years. We were leading the country in optimism and the efforts and confidence that entrepreneurs and small businesses had.
I’ll go on a little bit more. “The cost of doing business under this government has skyrocketed due to policy changes and taxes. Over the past year, the province has done more harm than good for small and medium-sized businesses.” I just leave that there.
I think it’s a good opportunity for me to move, perhaps, on to the Small Business Roundtable, as the minister identified it. They do amazing work. I’m glad that they continue to do the work.
To the minister, how many consultations in the next year is the objective for the Small Business Roundtable — for consultations across the province with small businesses?
Hon. B. Ralston: I just want to talk a little bit about the Small Business Roundtable. As the member will know, it’s a mechanism to receive input from business owners and those concerned about the sector from around the province. We’re next meeting on April 15.
Most recently the Small Business Task Force was out in the field in a series of consultations. That report has come back, and it’s now a public report, I think, as the member would know.
We will meet with the Small Business Roundtable and determine our next steps at that meeting. There is an opportunity there, at the Small Business Roundtable, for individual members to report out what they’re hearing from their colleagues, what their personal views are, and they certainly do avail themselves of that opportunity with refreshing candour.
The other thing I would say just on the Business Barometer. British Columbia is on par with the national average. I think 55.9 appears to be the total.
C. Oakes: To be honest, I don’t know if it was in the Small Business Roundtable annual report or if it was actually in the minister’s mandate. I was trying to identify that. But one of the key indicators that we normally had was a number of consultations that would happen out in communities. I think it’s critically important.
The strength of the roundtable is that it has an opportunity to go out and actually engage with both small businesses and Indigenous small businesses. It’s a key aspect, a key way for the government and the minister to hear directly what small businesses are hearing. We used to have that as an indicator, as a performance evaluator for the minister, and to be honest, I don’t see that, so I guess I’m hoping that that commitment to go out and to continue on with those consultations will continue.
The minister mentioned the Small Business Task Force. They did a significant amount of work. One of the key findings that they addressed or recommended to the minister is a significant need to address the cumulative tax increases that small businesses are facing.
What steps is the minister taking to address the challenges small businesses are facing with the cumulative tax increases through this government?
Hon. B. Ralston: As I stated earlier, I am meeting with the Small Business Roundtable on April 15. That will be the first meeting since the report of the task force was delivered. My view is that as a matter of courtesy and as a matter of protocol, I’d like to hear from the Small Business Roundtable and their comments on that before making any public pronouncements on which parts of the report are advisable to act on and move forward with.
There are a number of the recommendations that are not, strictly speaking, within the mandate of this ministry, but leaving that aside, I would prefer to get the views of the Small Business Roundtable. And given the member’s knowledge of the Small Business Roundtable and their connections to small business throughout the province, I think that would be a course of action that she would understand and appreciate.
C. Oakes: I certainly recognize and appreciate the work that the round table is doing. I will move to the round-table report and some of the recommendations that they, too, have put forward. One of the things that I think is critically important when we look at entrepreneurship is supporting the next generation of young entrepreneurs. Can you advise me of what the budget is for Junior Achievement this year and what the budget is for Futurpreneur?
Hon. B. Ralston: Futurpreneur has been funded at the level of $100,000 for the last three years. In fact, the CEO, Paulina Cameron, who’s now just been announced and hired as the CEO of Forum for Women Entrepreneurs, was on the Small Business Roundtable, and, given that appointment, has resigned from this. But she was there for approximately a year. It was my decision to appoint her there.
Junior Achievement has received $330,000 from the government.
C. Oakes: Just to clarify. So in this budget, Junior Achievement is receiving $330,000?
Hon. B. Ralston: Sorry. A slight correction: $333,000 — I omitted the last “3” — in this budget year, yes.
C. Oakes: It’s a very important program. I just want to make sure they get all of their allocated funds. So thank you.
I have one more question, and then I’m going to ask my colleague to have the opportunity to ask some questions. Earlier, we canvassed the export navigator. It’s an incredibly important program to help export readiness for small businesses. I was with several of the organizations two weeks ago that actually deliver the program, and there is still some lack of clarity on how that program is moving forward.
The minister talked lots about the program and how great it was today. Could the minister identify exactly how much money is in the export navigator program moving forward? When will the agencies hear that there is funding?
Hon. B. Ralston: I do agree, and I am very enthusiastic about the export navigator program. I think it delivers excellent results. There is a contract with Small Business B.C., which administers that. That’s been approved to go forward in the new budget year.
S. Sullivan: My riding of Vancouver–False Creek is full of some very innovative companies that are booming right now in the technology industry. Alan Winter was appointed the innovation commissioner, and he’s working closely with Innovate B.C. He’s written some good reports, including a recent one that the minister seems to have responded very positively to, but I do notice that there is nothing in the budget that reflects the recommendations and efforts he’s making.
I just wanted to ask the minister: will we be seeing some changes or some contributions to this effort in this budget or the next?
Hon. B. Ralston: I thank the member for the question. I, too, share his enthusiasm about the prospects of the technology sector, not only in his riding but throughout the many parts of the province where the technology industry is surviving. Of course, it has many aspects to it.
One of the many decisions that fell to me to make was to appoint the innovation commissioner, and I think we were very fortunate that Dr. Alan Winter accepted. He has worked very diligently in terms of outreach. I’ve spoken with a number of companies, institutions…. He’s very knowledgable in the sector; travelled a bit, as well, to receive advice from foreign jurisdictions; has given good advice on liaison, particularly with the federal government, and on unlocking some of the joint funding mechanisms that the province has perhaps not done in the past.
The other significant thing that’s happened, I think, is the change in the mandate of Innovate B.C., as it’s now called. I’ve appointed a new, I think very strong, board. Just recently that board hired a new CEO, Raghwa Gopal. They’re on a go-forward basis as well. The innovation commissioner has analyzed the innovation sector, broadly speaking, and come up with a number of recommendations. We are in the process of analyzing and digesting those and are hoping to devise a path forward. I am appreciative of his advice, and I’m optimistic about being able to move forward, perhaps not with all of his recommendations but with some of the significant ones that we’ll decide upon internally.
S. Sullivan: The appointment of the innovation commissioner was very well received in the industry, and his report, Observations on Innovation in British Columbia, was also very well received. I encourage and urge the minister to act on many of the recommendations he has made. Thank you for answering that.
C. Oakes: I recognize that the Small Business Task Force recommendations will be going to the Small Business Roundtable, but many of the recommendations that were put forward are very consistent with the round table recommendations that have been put forward through many, many years. The most significant challenge that we have is to make sure that British Columbia maintains its competitiveness in the small business sector. There is certainly some thought and some evidence that we are losing our competitiveness for the small business sector.
What steps is the minister taking, and financial support within the budget, to improve competitiveness for small businesses in British Columbia?
Hon. B. Ralston: The member’s question is a fair one but, I think, also a restatement of questions that she’s asked earlier. Let me restate some of our commitment to support small business and many of the themes that I’ve expressed earlier.
We are working to make communities affordable, with historic investments in child care, a bold 30-point plan to make housing more affordable and investing more than $4 billion in transportation infrastructure over the next three years. Those are not only social issues but key business issues as well, in terms of creating the conditions for business success in communities across British Columbia. As I’ve said, we’ve reduced the small business tax rate by 20 percent, eliminated the provincial sales tax on non-residential electricity, which is now in effect, as of April 1.
We’ve extended, as the member has complimented us on, the net-zero regulatory requirement. We have a new, simplified procurement process to create more opportunities for small business, making that faster, easier and less expensive for small and medium-sized businesses to work with government. We’re also revamping B.C. Bid to make it easier for businesses of all sizes to respond to government opportunities while also doing better to keep suppliers informed of the status of procurements throughout the process.
The Minister of Citizens’ Services, who I don’t believe has had her estimates come up for debate yet, can expand on that. She is understandably very enthusiastic about the changes that have been made in the procurement process and their positive impact on opportunities for small business to access government procurement — which, I think, as everyone would recognize, is a huge purchaser of goods and services in communities across British Columbia.
C. Oakes: I certainly recognize that we all want to look at affordability, and we started this conversation today around the employer health tax. We talked about affordability in municipalities, and I think it’s important to look at some of the costs that municipalities are facing with the employer health tax. The city of Abbotsford is facing a $1.7 million employer health tax; the city of Coquitlam, $600,000; the city of Cranbrook, $240,000; the city of Kamloops, $700,000; the city of Langley, $236,000; the city of Maple Ridge, $700,000. The list goes on and on.
In the service plan, all of these costs get downloaded onto small businesses. We’re hearing clearly that there’s a cumulative nature of the amount of taxation that is being put on the hard-working men and women who own small businesses. It’s our bike shop. It’s our coffee shop. It’s our corner store. It’s one thing to say: “We’re looking at how to make life more affordable.” But when you’re out in these communities, the nature of the significant amount of tax increases that need to go somewhere and the nature of where this government is formulating all these new taxation practices, on small businesses, are incredibly troubling.
Again, going back to both the round table and the task force, what steps will the minister take to assess the combined impact of costs and benefits, of proposed changes for small businesses, when developments happen, amending provincial policies and legislation? I direct the minister clearly to objective 1.3 in the key strategies that he is responsible for: “identifying and mitigating negative impacts of any new — or amendments to — legislation, regulation and policies and forms on small business.” I look forward to what those steps will be.
Hon. B. Ralston: First, I want to correct the record around Paulina Cameron. Although she has been hired in a new job, she has not resigned from the round table, which is a source of some relief to me, because I certainly value her contribution. She’s a thoughtful and dynamic member of the business round table. I just wanted to make that clear. She’s still there, notwithstanding her new appointment, which is great.
Let me cast a different light on economic prospects here in British Columbia, because the member has, clearly, a point of view that I don’t accept and I don’t think really accords with many of the statistics and the lived experience of many people throughout British Columbia.
Employment in British Columbia increased by 1.1 percent in 2018, reaching 2.49 million people. Full-time employment growth was 1.3 percent and accounted for 92 percent of all employment growth in 2018. Private sector employment growth was up 0.9 percent — 18,000 jobs that accounted for 67 percent of all new jobs.
B.C. has the lowest unemployment rate in Canada, with a rate of 4.7. It’s been the lowest in Canada for 18 consecutive months. As the member will know, throughout the province, the low unemployment rate is present in every region of the province. I think of Kamloops, for example, at 4 percent.
The economy is strong. B.C.’s GDP growth has continued to excel and lead among the leaders in Canada. The B.C. economy continues to expand. Wage growth itself is the highest it’s been over the last ten years and the highest among provinces.
The economic prospects for British Columbia and its citizens, its communities, are nowhere near as dim as the member seems determined to argue. I’m very optimistic about British Columbia, its people and our economic prospects.
C. Oakes: This is my last question. I do want to thank staff very much for the work that you do every day on behalf of citizens in British Columbia.
I will make a comment. In the remarks that the minister just made, it would’ve been really encouraging if somewhere in his conversation, he had mentioned small business. It’s great to talk about people. It’s great to talk about all of the aspects of a growing economy, but that small business lens just at one point, please. My request is…. You are the champion. You are identified as the champion for small business. It would be great if, in some of these responses, you could talk about the comments of small business.
My last question, and I think it’ll probably be easiest in writing, is: I’m still trying to understand, from the regulatory count on pieces of legislation, if…. To the minister, if I could be provided with how the regulatory count on pieces of legislation has changed. There used to be a form where each piece of legislation went through, and there were the pluses and minuses. There would be a sheet on every piece of legislation that moved forward. Where does that exist? How would I get access to it if it still exists?
The second piece is: Red Tape Reduction Day was supposed to be the day where we identify the pieces of regulation that we have repealed. I haven’t seen it, so maybe I missed it. If you could possibly provide me with the list of regulations that we have repealed in March, that would be greatly appreciated as well.
Thank you very much to the minister for your answers today, and again, to your staff and to the Chair.
Hon. B. Ralston: Just to conclude, I thank the members opposite for their questions.
I would say, just on the small business file…. I myself ran a small business for over 20 years. I’m very accustomed to the challenges of small business, doing work and looking ahead to see where the next piece of work is going to come from and dealing with the array of administrative tasks that are vital to running a small business — staff, advertising, payroll, remittances, all that sort of stuff. I think the member may underestimate my understanding and commitment to small business here in the province.
On the other two questions, yes, we will answer those. Staff has told me that that is a request that we can fulfil, and we will.
With that, I move that the committee rise and report progress and ask leave to sit again.
Motion approved.
The committee rose at 5:45 p.m.
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