Fourth Session, 41st Parliament (2019)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Monday, April 29, 2019
Afternoon Sitting
Issue No. 241
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Office of the Auditor General, service plan, 2019-20–2021-22 | |
Orders of the Day | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
MONDAY, APRIL 29, 2019
The House met at 1:36 p.m.
[Mr. Speaker in the chair.]
Routine Business
Introductions by Members
S. Bond: I’m delighted to introduce a number of guests in the gallery today on behalf of my colleagues from Prince George–Mackenzie and Parksville-Qualicum. I’ll explain the connection in a moment. It’s not geographic, obviously.
We’re delighted to have representatives from Spinal Cord Injury B.C. here today, Chris McBride and Jocelyn Maffin. Jocelyn is a wheelchair basketball player. I know that the member for Parksville-Qualicum is as well, and she wanted to be sure that that was recognized.
Then, of course, are Nancy Harris and Pat Harris. Nancy and Pat live in Prince George. They are part of the process called Access B.C., doing an incredible job creating more accessible opportunities for families. They presented to our caucus today and did an outstanding job. I do want to recognize that Pat and Nancy are community builders. In fact, they were recognized for their tireless advocacy by being named Citizens of the Year in 2018 in Prince George.
Pat Harris is a well-known wheelchair basketball player and coach. Pat and Nancy are awaiting the arrival of their grandbaby. I’ve very happy that they’re here, but they’re going to be driving home to await the arrival of their grandbaby.
Thank you for presenting. Thank you for your great work. We’re very proud of the work that’s being done.
Please, I’d ask my colleagues to help me welcome them to the Legislature today.
R. Chouhan: It’s my pleasure to welcome some special guests to our Legislature this afternoon. We are honoured to have visiting us today a delegation from the Parliament of Western Australia and from the New Zealand House of Representatives. The delegations had the opportunity to participate in meetings this morning and met with officials and Members of the Legislative Assembly at lunch.
Joining us in the gallery from the Parliament of Western Australia are Hon. Martin Aldridge, Member of the Legislative Council; Hon. Diane Evers, Member of the Legislative Council; Shane Love, Member of the Legislative Assembly. Accompanying the members from the Parliament of Western Australia are Scott Nalder, Deputy Clerk, Legislative Assembly; and Christine Kain, Clerk Assistant of committees and Legislative Council.
From the New Zealand House of Representatives, I’m pleased to welcome the following Members of Parliament: Jan Logie, Ginny Andersen, Denise Lee, Tim van de Molen and Hamish Walker. They are accompanied by Winton Holmes, interparliamentary officer, Office of the Clerk; and Amy Tisdall, delegation secretary, deputy high commissioner, New Zealand High Commission in Ottawa.
I ask the members to join me to welcome our delegations.
S. Sullivan: I have a very special guest from Vancouver, Leslie McDonnell, who is with Re/Max Select Properties, a very active and engaged citizen. Many of her fans are hoping she might consider elected office one day, so we’re giving her a sense of what it’s about. Please welcome her.
Hon. H. Bains: In the House today we have Laird Cronk, the president of the B.C. Federation of Labour, and Sussanne Skidmore, the secretary-treasurer of the B.C. Federation of Labour. Please help me give them a warm, warm welcome.
Also joining us in the House are Natalie Drolet, the executive director of the Migrant Workers Centre; Rona Fernandez, a member of the board of directors of the Migrant Workers Centre; Helesia Luke, communications and development coordinator of First Call: B.C. Child and Youth Advocacy; Tia Semple; Stephen Portman, longtime employment standards advocate; Pamela Sharon, coordinator at Retail Action Network. These folks represent many of the organizations that have been strong advocates for workers. Would the House please join with me in giving them a warm, warm welcome.
J. Yap: I have ten people in the gallery to welcome. These are members of the most successful, vibrant neighbourhood association in Richmond that have done a great job in mobilizing the neighbourhood to be a Block Watch neighbourhood. They’ve received accolades from the Richmond RCMP and the city of Richmond. With us today are the president of the Broadmoor Neighbourhood Association, David Zhao, and Qiang Du, Jian Hua Dai, Chengming He, Ai Qiong He, Evan Jiang, Zhi Jun Zhang, Hongbin Zheng, Ting Ying Du.
Also, my constituency assistant, Po-wah Ng, is here.
Would the House please give a warm welcome to these visitors.
Hon. D. Eby: Joining us in the House today are the B.C. Real Estate Association president, Michael Trites, and CEO Darlene Hyde, representing the 11 real estate boards and nearly 23,000 realtors across British Columbia. They, along with other delegates in attendance, are here as part of their annual Government Liaison Days event. Will the House please join me making them feel very welcome.
M. Bernier: It’s an honour, actually, for myself — an introduction I don’t get to do very often. My wife of almost 30 years has made the long trek from Dawson Creek. Valerie has come down. I hope it’s mutual that she’s as excited to be down here with me as I am excited to have her here. She would also probably agree with me that she’s holding one of the most important people in our life. Our oldest grandson, Crozzley, is with us, who made the trek from Dawson Creek as well. Will the House please make them both welcome.
Hon. S. Robinson: We have an honoured guest here today joining us. Katherine McParland from Kamloops is here. She’s the executive director from A Way Home Kamloops, which is a collective of community leaders working together to end youth homelessness. She’s an amazing young leader in her own right, and she is now a member of the B.C. Housing board of commissioners. She’s here to take in question period, and I hope everyone will make her feel very welcome here.
D. Barnett: Today I have some wonderful guests here from my riding. I’ve known this couple for I don’t want to say how long, because that’ll age us. I’d like the House to help me welcome Pat and Juanita Corbett here today. With Pat and Juanita is a special guest, but I’m going to let one of my colleagues do the introduction. Please welcome Pat and Juanita here today.
Hon. L. Beare: I want to join my colleague from Prince George–Valemount today in introducing a number of key stakeholders in my file as well, in the tourism sector, for accessible tourism. From Spinal Cord Injury B.C. and Access B.C. we have Chris McBride, Jocelyn Maffin, Nancy Harris and Pat Harris. I’m sure we’re going to see them again during Tourism Week, which also coincides with AccessAbility Week. Will the House please join me in making them feel very welcome.
R. Leonard: I have the pleasure to introduce an august group of citizens, not from my constituency but organized by one person who attended a fundraiser for some folks who have been flooded out of their affordable homes.
Dan Olson is from Maple Ridge. He’s a self-described human rights advocate as well as a labour advocate and is now working towards being a mentor to bring more people into the fold.
He brings with him, from Maple Ridge–Mission and Maple Ridge–Pitt Meadows, Chris Bossley, who is a resident of Maple Ridge. She’s a highly respected resident advocate for the street population.
Heather McCain is from Vancouver–West End. She’s a volunteer executive director of Citizens for Accessible Neighbourhoods, CAN, which she founded over 13 years ago. It’s grown into a very respected and established provincewide resource, not just Vancouver-based. From the Mid Island–Pacific Rim, we have Karen Lloyd-St. Pierre from Port Alberni. She’s a labour advocate for worker rights and particularly for women workers.
I hope that you will join the members from those constituencies and welcome these folks to the House today.
E. Ross: Today the member for Chilcotin introduced Pat Corbett and Juanita Corbett. I just wanted to let the House know that today the matriarch of that family is here as well, Adrienne Corbett. She’s sitting up in the gallery just off to my right here. She’s from Surrey, and she’s got a very strange bucket list. One of her bucket list items was to meet me. I’ve told her that she needs a better bucket list. I had lunch with her — a very interesting lady, a very smart lady and a very thoughtful conversation we had.
I’d like the House to make her feel welcome but, more importantly, wish her happy birthday, because today is her 95th birthday. Would the House please wish her happy birthday.
Hon. M. Farnworth: I haven’t had many opportunities to do this, but as of Saturday night, I get to do it in this House. On Saturday night, my youngest brother became a grandpa for the first time as his eldest daughter, Ashley Paine, and husband, Brian Paine, became proud parents of a 7-pound-12-ounce baby boy, the first grandson in our family. I’d like the House to please welcome one of British Columbia’s newest residents, Charlie Robert Paine.
D. Routley: I’m super excited. I would have said über-excited, but I don’t want to start an argument. So I’m super excited to introduce these people. I have seven guests. The first I would introduce is David Brown, a former public servant, and his wife, Linda Brown. They’re two people who I’ve known for almost 15 years. They’ve worked on campaigns with me. We worked together in theatre, actually. They’re fantastic people, and I’ve known them a long time. That’ll come into my next introduction.
Along with Linda and David Brown is wee David Brown, five-year-old David Brown, who’s dressed in a lovely suit. He’s here to join us, and I’m sure we’ll all treat him to the most spectacular display of democracy in action.
I also would like to introduce my partner, Leanne Finlayson, who’s up above us here — the love of my life. I’m going to steal from the member for Powell River–Sunshine Coast. The best day of my life was May 1, 1974. I didn’t know, but that was the day my sweetheart was born. That’s completely stolen from Nick.
I’m also very excited to introduce one of our dearest friends, the wonderful Cherie Boyle, who is an MRI specialist, and her son, Eli Boyle, and his girlfriend, Ohannah Green. I emphasize pronouns for a specific reason that will become clear very shortly. I’m very happy to welcome them to the B.C. Legislature.
S. Furstenau: I have two sets of introductions to make. First, I’d like to just introduce Diane Evers, a member of state parliament for Western Australia, and Jan Loji, Member of Parliament from New Zealand. Diane and Jan and I met last night and, over the course of about three hours, discovered that being green actually has a lot that makes us have a lot in common. I’m happy to say I have two new friends.
Secondly, I’d like to introduce my stepdaughter, Mireta Strandberg-Salmon, who’s in the gallery today. Mireta won’t remember this, but she was introduced in this chamber on July 7, 1999, by the member for Burnaby-Willingdon, who introduced her parents Cora Strandberg and Blaise Salmon. At the time, the member, Ms. Sawicki, said: “She’s three weeks old, and she’s already had a picture taken with her MLA and with the Premier.”
I am most fortunate to be the stepmother of Mireta, who is a remarkable young woman. She has continued to have an exceptional track record right from that first three weeks. She’s an accomplished musician, a handball player and an academic whirlwind, having always maintained an average somewhere north of 98 percent. She’s of unceasingly good humour. As her dad observed yesterday, she even laughs at the jokes that aren’t all that funny. We love having Mireta in the house, and we love hearing her laugh.
She just completed her second year at Simon Fraser University, where she’s studying environmental resource management — imagine that — and looking forward to her co-op placement with Environment Canada. For her relentless efforts to ban bottled water at Simon Fraser, Mireta has been named the environmental woman of the year.
We are so proud of all that she has accomplished in the first 20 years since she was introduced here, and we can’t wait for the next 20.
Love you, Mireta.
Hon. K. Conroy: Today I had the pleasure of hosting some guests who, unfortunately, had to leave. I said I would still introduce them, because their daughter was quite thrilled with the idea that she would be in Hansard.
Here today was my sister, Sana Marsh, from Whistler, her husband, Jerry, and their daughter, Mandy Marsh. With them were Jack and Deb Marsh from Quesnel, and Jody and Tom Marsh from Salmon Arm. Would you please make them welcome. They’re going to go on line and look and see, so please join me.
M. Elmore: I’m going to ask for the indulgence of the House. I’m going to introduce some guests who are here, and I know the very capable Minister of Labour gave a warm introduction to members from the Migrant Workers Centre — Rona Fernandez, on the board of directors for Migrant Workers Centre.
A special introduction I wanted to make is the very talented, gifted, skilled, accomplished, capable staff lawyer, executive director of the Migrant Workers Centre — and also my partner, to make it an official recognition. Please make them very welcome.
Statements
MOTORCYCLE AWARENESS
G. Kyllo: Today was a very important day here at the Legislature, the 27th annual MLA Ride. It a great opportunity to bring awareness to motorcycle safety in our province.
I want to give a special thanks to Bill Wellburn at Island BMW. He was kind enough to loan a couple of bikes again this year to my colleague from Penticton and myself. We were also joined today by our leader, our MLA for Vancouver-Quilchena. So a great day.
I just want to remind people that when you’re on the roads, to watch out for motorcyclists. Obviously, we’re seeing an increasing number of motorcyclists on the road. A very challenging year last year — we actually had double the average annual fatalities on our roads for motorcyclists.
Please, I want to let everybody know to pay special attention as we start to see more motorcyclists on our roads over the spring and summer months.
Introduction and
First Reading of Bills
BILL 8 — EMPLOYMENT STANDARDS
AMENDMENT ACT,
2019
Hon. H. Bains presented a message from Her Honour the Lieutenant-Governor: a bill intituled Employment Standards Amendment Act, 2019.
Hon. H. Bains: I move that the bill be introduced and read a first time now.
I am pleased to introduce Bill 8, the Employment Standards Amendment Act, 2019. This bill makes a number of priority amendments to the Employment Standards Act. It supports our government’s commitment to update employment standards and ensure that they are applied evenly and enforced.
The changes in this bill focus on four important areas of reform: protecting child workers by having laws that comply with the international standards for child labour; modernizing the employment standards system with a more effective compliance and enforcement program; establishing new, unpaid, job-protected leave for employees experiencing domestic violence and for employees who need to care for a critically ill child or adult family member; and strengthening wage recovery for workers.
These amendments will modernize B.C.’s employment standards and bring our laws to protect workers in line with other jurisdictions.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. H. Bains: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill 8, Employment Standards Amendment Act, 2019, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL 31 — POLICE AMENDMENT ACT, 2019
Hon. D. Eby presented a message from Her Honour the Lieutenant-Governor: a bill intituled Police Amendment Act, 2019.
Hon. D. Eby: I move the bill be introduced and read a first time now.
I am pleased to introduce Bill 31, the Police Amendment Act, 2019. The bill proposes amendments to the Police Act related to the independent investigations office, also known as the IIO.
The amendments address concerns raised by the IIO related to recruitment of investigators by the chief civilian director — from appointing investigators who have been a member of a police force in B.C. within the last five years.
The amendments will also raise the IIO’s referral standard to Crown counsel to be consistent with the referral standard used by the police and avoid referring files unnecessarily to the independent prosecution service.
Both amendments were requested by the IIO.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Eby: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill 31, Police Amendment Act, 2019, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Statements
(Standing Order 25B)
ARTIFICIAL INTELLIGENCE
AND TECHNOLOGY
SECTOR
R. Glumac: The tech sector is diverse. One area that’s flourishing right now is artificial intelligence. It’s estimated that 62 percent of businesses are using AI in some form. This sector is projected to grow from $8 billion in 2016 to more than $125 billion worldwide by 2025.
B.C. is emerging as a strong market for AI. In fact, 22 percent of AI companies in Canada are located in Vancouver. This includes companies like Cloudburst, Mobify and Kindred. It’s not a surprise, then, when international AI companies are also looking to B.C., companies like Fujitsu, who have recently chosen to establish their new artificial intelligence headquarters in Vancouver.
B.C. offers a highly skilled talent base, a well-developed tech ecosystem, top-quality educational institutions, competitive business costs and better connections to Seattle, Silicon Valley and the Pacific Rim than anywhere else in the country. Our government is committed to growing B.C.’s tech economy. We’re investing in 2,900 new tech seats and building tech-focused infrastructure at our universities such as the sustainable energy engineering building that recently opened in Surrey.
Our government has gone on many trade missions to Asia, and we’ve been hearing a lot about the optimism, about the tech opportunities in B.C. We are proud to have Fujitsu and many other tech leaders choose B.C. as their home. We look forward to continued growth in AI and all tech sectors here in B.C.
DAY OF MOURNING FOR WORKERS
J. Martin: No one goes to work expecting to suffer a serious or a fatal injury. Unfortunately, far too many British Columbians do lose their lives every year at the workplace due to injuries, and to illness.
Yesterday, April 28, marked the National Day of Mourning for those killed or injured in the workplace. This is an opportunity for all of us to honour those who have lost their lives, along with the families and loved ones that are heartbreakingly left behind.
No words, no actions can bring back those lost, but we can work diligently in this House and across the province to implement preventative and educational policies, making B.C. an even better place to live, to work and to play.
We also have a duty and a responsibility to ensure that vulnerable workers such as teenagers, young adults and recent immigrants are made aware of their employment rights and what the provincial workplace safety standards are.
Everyone — absolutely everyone — has a right to a safe and supportive work environment, and everyone should be able to return home safely from work at the end of the day, every day.
Together let us remember those who have been lost and support those who have been injured and make every effort to eliminate preventable deaths and injuries in workplaces across British Columbia.
SHIPYARDS DISTRICT ON NORTH SHORE
B. Ma: While North Shore residents are keenly aware, many others from other places in B.C. might be surprised to learn that North Vancouver’s lower Lonsdale community is not at all today what they might remember it to be. The city of North Vancouver and the Lower Lonsdale Business Association have been busy at work, turning the newly branded shipyards district of lower Lonsdale into the place to be.
Lower Lonsdale is North Vancouver’s oldest neighbourhood, steeped in history and bursting with vibrant shops, restaurants, cafés, pubs, boutiques, specialty food shops, a plethora of personal services and galleries — yes, plural, galleries — like the Polygon Gallery, the under-construction museum, North Van Arts, just to name a few.
In the summertime, children play in the new water feature against incredible views of the Vancouver skyline and North Shore Mountains or at the big, grassy Waterfront Park next door.
Soon they’ll also have another water feature to play with over at Victory Ship Way, which becomes an outdoor skating rink in the winters and sits underneath the North Shore’s brand-new Capilano University lower Lonsdale spinoff campus, which will open in the fall of this year.
That campus will be right next to the 700-foot-long Burrard Dry Dock Pier and the historic shipyard site, which hosts concerts, community events, festivals and even a night market every Friday night from May through September. By the way, the city of North Vancouver just approved a new brewery district in the area as well, so there’s really no excuse not to come visit.
This and so much more is available in a walkable area, well served by public transit, that is only about four by four city blocks large.
If you’ve got a free afternoon or a weekend and you’re looking for a spot to hang out with friends, spend time with family or just seek out your next favourite joint, skip the hustle and bustle of downtown Vancouver and opt for a more charming pace at the shipyards district, just a SeaBus ride away.
SEMIAHMOO POWWOW
T. Redies: It’s my pleasure to speak today about the annual powwow event hosted by the Semiahmoo First Nation and Earl Marriott Secondary School in my riding of Surrey–White Rock. Earl Marriott has been hosting this annual event since 1996 to showcase a remarkable culture that needs to be celebrated.
As described by the performers, powwow is a celebration of life, a celebration of livelihood — livelihood which is loaned to us. The dances, songs and native crafts seen during the powwow event provide an avenue to truly appreciate the history and traditions of the Indigenous peoples.
It was wonderful to see and meet many Indigenous dancers and singers from across the province and even as far away as Manitoba. At one point, all of us were dancing together, following the lead dancer in celebration. It was also very heartwarming to see the number of young dancers engaging in their culture and sharing it for the benefit of all of us.
Powwows are important because they serve as a reminder of what was almost lost. In 1884, powwow celebrations were forbidden under the Indian Act. It was not until 1952 that powwows were once again celebrated within Canada.
This is an event that many in our community from all cultural backgrounds look forward to, with hundreds attending the weekend event. I know everyone enjoyed the festivities and the performances, and I particularly enjoyed speaking to a number of the talented artists showcasing their wares at the event.
I would like to thank elected leader Harley Chappell, the Semiahmoo First Nation, principal Claudine Davies and teacher Michael MacKay-Dunn of Earl Marriott Secondary for putting on another successful powwow in our community.
TRANSGENDER RIGHTS
AND SUPPORT
SERVICES
D. Routley: This is a statement in the voice of Eli Boyle.
As a queer transgendered individual, I would like to address the gaps in care that myself and those in my trans community experience in our current system. Two minutes is not nearly enough time to begin discussing the obvious issues, but the most crucial place to start is to first acknowledge that trans rights and issues are not something that we can just politely disagree upon. Disagreeing with the validity of someone’s existence and the rights and services they deserve is discrimination, not disagreement.
Quiet complacency with homophobic and transphobic ideologies is far more harmful than those who spout hate from a place of ignorance. Trans people who are not accepted by those around them are 44 percent more likely to attempt suicide, while that percentage drops to 4 percent when they are acknowledged and accepted. Just acknowledging trans people as valid is suicide prevention. Many Canadian youth are currently at risk because of people who are uneducated and/or complacent with their homophobic and transphobic views.
It is unbelievably complicated being a trans person and trying to navigate and access physical and mental health care in our current system. But the gaping holes in trans care are even more huge and damaging for trans people who are not neurotypical or disabled or live in isolated areas or for those who fall outside the gender binary.
It is far too easy for these individuals to fall into your blind spots of biases and complacency. It is simpler for you to help those who are more able to help themselves, but no one should go forgotten. Your system, our system, is not successful until it is accessible to everyone who needs it.
I urge each and every one of you to check yourself for your own biases, to hold yourself and your colleagues accountable and to make conscious effort to include trans people in your decisions. We make up your constituents, and we are not and should not have to be comfortable expecting any less from you than our cisgendered counterparts do.
Thank you, Eli.
I would say this: it takes a little courage to do something unusual like wear something ridiculous in the B.C. Legislature — no kidding, right? — but imagine the courage it takes to be Eli Boyle.
WAR VETERANS JOHN AUGUSTYN
AND JIM
ASHWORTH
D. Clovechok: I rise today to recognize 200 years of life in my riding — two gentlemen that are both celebrating their 100th birthdays, and both have been warriors: John Augustyn, who lives in Revelstoke, and Jim Ashworth, who lives in Invermere.
John was born in Poland, and as a young man, he was captured by the Russians and forced to march over 700 miles through artillery fire. Unlike so many others, he survived the march. He had a distinguished military career that included service with the British Army. He was stationed in Iraq, Palestine, Jerusalem and Egypt. While crossing the Mediterranean, his ship was hit with a torpedo, and then he was rescued by a destroyer. He survived again.
For his distinguished service, he received many medals, including the Cross of Monte Cassino, the British and Italian stars and the Defence and War medals. After the war, he moved to Canada and eventually Revelstoke, where he worked in the logging industry for 33 years and where he and his wife, Emily, raised two daughters. They also have three grandsons and one granddaughter. He is a true Revelstoke hero and is loved so much in his community.
Jim Ashworth was born in Cranbrook and grew up in Invermere. He enlisted in the RCF in 1941 and flew Hawker Hurricane planes, an aircraft built for war and loved by pilots. Jim’s act of service started on the south coast of India, close to the Burmese border. His job was to support the 14th army by taking out targets in the thick jungle or destroying tanks, gun emplacements, vehicles and ships. It wasn’t easy being a pilot, Jim pointed out, saying: “We took off and landed on the beach. They laid down chain link fence on the sand to stabilize it, and it worked.”
He eventually retired from the RCF after 25 years of service. He moved to the Columbia Valley and ended up operating the Hoodoos Resort in partnership with his family. Jim still lives in Invermere. He can still fly the plane if you ask him to. He ended up, as I say, operating the Hoodoos. He is a true Invermere hero.
Happy 100th birthday, John and Jim. Thank you for all you’ve done for your country and your communities. You’re both true heroes, and here’s to the next 100.
Oral Questions
ACTION ON GAS PRICES
A. Wilkinson: In the two weeks that this Legislature has been in recess, we have seen all-time high gasoline prices in British Columbia. In Vancouver, we see the spectacle of empty gas stations at full price and a rush on gas stations with even a few cents discount. Overnight we see queues at 11 p.m., when people spot a deal. Word travels quickly, and people rush out to buy gasoline.
The response from the Premier has been a series of ineffectual and often non-credible answers, ranging from conspiracies to federal jurisdiction to, “Let’s have a refinery in the Lower Mainland,” which obviously raises the question: how would the fuel get there without a pipeline?
What we’re left with is a retail disaster for small businesses. They are simply running out of cash flow. Their margins are disappearing as they pour it out into the gas pump.
In response to this, this government has done absolutely nothing. That’s what governments are for — to try and make peoples’ lives better and to take action when their livelihoods are at risk.
Interjections.
Mr. Speaker: Members.
A. Wilkinson: Here’s what the Premier had to say on March 21, 2018: “We are monitoring gas prices, and we will take steps if necessary. We have talked about a range of options….”
The question, obviously, goes to the Premier. People are hurting out there. This has been going on for weeks. All of the options put forward by this government are empty promises, ten-year plans or simply implausible.
To the Premier: in the next 30 days, what are you going to do to bring down the price at the pumps?
Hon. J. Horgan: It’s nice to know, as we start another few weeks in this Legislature, that we can start question period where the Leader of the Opposition and I agree. Gas prices are ridiculously high in the Lower Mainland. Where we tend to diverge is to figure out just how that happened. I know the member would be aware….
Interjections.
Hon. J. Horgan: Well, we got into — what? — six seconds there before a heckle. The new approach of the Leader of the Opposition.
The member will know that over the past three or four months, the price of gasoline in the Lower Mainland has gone up in the range of 40 cents a litre. He will also know that during that time, government policy has led to a one-cent-a-litre increase. Instead of being concerned about the one cent a litre, we should all be concerned about the 39.
A good chunk of the answer comes from the refining margins in the Lower Mainland versus the refining margins in other parts of Canada. The average refining margin in Canada is 20.8 cents; in British Columbia, it’s 42.7. That’s a problem not created by government but created by the market. We need to work together to fix it.
Mr. Speaker: The Leader of the Official Opposition on a supplemental.
A. Wilkinson: Well, the members of the media are having none of this. Let’s look at some of the reviews of the Premier’s performance in the last ten days.
Keith Baldrey of Global TV: “Outright desperation. This issue is getting away from him.” Mike Smyth of the Vancouver Province: “He’s flip-flopping around on it. The pointing finger starts to look desperate when you scratch the surface of some of his pretzel logic.” Vaughn Palmer of the Vancouver Sun repeatedly, consistently pointing out: “Any day now he’ll be blaming the United Nations.”
The Premier’s dancing around this has done nothing for people at the gas stations. It has done nothing for millions of British Columbians who just can’t handle this level of gas pricing.
The obvious question that comes to mind for this government — who are supposed to be primarily, fundamentally, as a top priority worried about affordability for the middle class: what are you going to do?
Interjections.
Hon. J. Horgan: For those who missed that, that applause was for the sentiment. It wasn’t for the Leader of the Opposition. The sentiment is that we do want to do everything we can to bring costs down for citizens, but I think the fundamental difference between this side of the House and that side of the House was evident in the member’s question. It’s all about performance. It’s about: how did you do in the performance today? Did you perform well? Did you flip this way, or did you flip that way?
Citizens are concerned that there’s a 22-cent difference in the average refining margin and the real refining margin in British Columbia. I didn’t make that. The Leader of the Opposition didn’t make that. The industry made that. So when we propose solutions to help the industry find a better way…
Interjections.
Mr. Speaker: Members.
Hon. J. Horgan: …to bring a product into the Lower Mainland, we get ridicule from the other side. Instead, their solution is to cap the price and then start giving taxes back. Well, that is an invitation to companies to take more, not an invitation for them to drop prices.
Mr. Speaker: The Leader of the Official Opposition on a second supplemental.
A. Wilkinson: Well, it’s no comfort to motorists in this province to hear the Premier’s theories about petroleum economics, because he has demonstrated he has done nothing to solve their problem.
Premier, let’s get down to business. There are two immediate things you can do. There is nothing standing in your way as a government. You can deal with the 35 cents a litre of gasoline tax that people are fed up with paying when they’re paying all-time high prices, and you can get on a plane to Alberta and make peace with Jason Kenney so that we have a reliable supply of fuel.
Hon. J. Horgan: I think it was just two weeks ago the Leader of the Opposition was saying I should be going to war with our friends in Washington, and now we should be going to make peace in other parts of the country. I’m good with that. But to suggest, as the Leader of the Opposition has, that somehow his economics on this question are sound and mine are not…. I do have to…. Well, the Opposition House Leader doth clap too soon, I think.
Werner Antweiler, a professor of business at Sauder business school of the University of British Columbia, a pre-eminent business school in the country, with respect to the opposition’s plans on gas prices: “I’m quite astonished by the proposal, because it defies any economic logic. It wouldn’t really change the prices, but it would boost the profits for the oil companies, and it would do absolutely nothing for consumers.”
I’ll be forgiven, I think, if I take my advice from those who are looking at the industry rather than those who are worried about their performance.
S. Bond: Well, here is something that defies all economic logic. This is the Premier that currently presides over the highest gasoline prices and gas taxes in North America, and he stands here and refuses to do a single thing about it.
Let’s look at someone else who analyzes the situation related to gas taxes. Let’s look at Dan McTeague: “The ‘inconvenient truth’ for the NDP in B.C. is that the expansion of the Trans Mountain pipeline would allow a greater supply of gasoline into the province.” The Premier absolutely knows all about that, because his very own documents show that he knows that is true.
There is one thing this Premier can do immediately. He can stand up, stop blocking the pipeline and start to mitigate British Columbians’ pain at the pumps.
Hon. J. Horgan: I thank the member for her question. I’ll just kind of shape some of those facts into closer-to-real facts.
First of all, there is no magic endless supply of refined gasoline products in Alberta or Washington state or, for that matter, anywhere else in an area that would allow us to see more refined product come here. When we talk about more refining capacity, not in the Lower Mainland but somewhere in North America — perhaps to the south of us, where there already are five refineries, or into Alberta….
There is no plan currently in the twinning of the Trans Mountain pipeline to move refined product to British Columbia. To say otherwise is distorting reality.
S. Bond: Every day this Premier decides he’s going to duck, he’s going to dodge, he’s going to weave, and he is going to point his finger at everybody else.
Interjections.
S. Bond: That’s right — this finger.
This Premier — it’s time he stood up and he looked at himself in the mirror. This is what else….
Interjections.
Mr. Speaker: Members.
S. Bond: While it might be a laughing matter to the members on the other side of House, British Columbians are tired of this Premier’s inaction. It’s time he stood up and looked in the mirror.
Here’s what else Dan McTeague had to say, and again, the Premier has obviously dismissed everything he said in the previous comment. “He’s painted his province into a corner. He’s harming consumers, and he has no one to blame but himself. If he can’t understand these very simple concepts — doing damage to consumers and to ordinary people — then perhaps he should consider another job.”
A year ago this Premier said he would monitor the prices and consider doing something. He said that weeks ago. The time is here now. The Premier needs to look in the mirror, stop calling everyone else out for their comments and take action to mitigate the pain at the pumps.
Hon. J. Horgan: Well, again, the flipping and the flopping seems to be largely on that side of the House. It wasn’t that long ago that the Leader of the Opposition was saying that he was satisfied that markets would find their way. But now, all of a sudden, the former free enterprise party wants everybody to interfere in the market.
They always forget, and I’m grateful that we on this side of the House don’t let them forget it, that of the 16 cents in gas tax increases that have happened since 2003, 14 cents of them came from that side of the House. So the party that increased the taxes the most says that taxes are too high. The party that says we shouldn’t intervene in the market should have probably taken their own advice.
Again, I go back to the Sauder School of Business, which said: “It’s a completely ineffective proposition. It makes no economic sense.”
B.C. TECH ASSOCIATION PROGRAMS AND
SUPPORT FOR
TECHNOLOGY INDUSTRY
A. Weaver: Hon. Speaker, if you or other members in the gallery thought they were participating in an episode of The Twilight Zone, I share their concerns. Here we have the official opposition and their leader arguing for Marxist policy to bring in a price cap, and we have the leader of the socialist party arguing for free market economics. What has B.C. politics come to?
We now have a new level of standard for research by the official opposition — oil apologist gasbuddy.com, providing the official opposition official research on their efforts. I cannot wait till the next episode comes forward.
Two weeks ago I asked the minister if he was committed to ensuring that programs and services provided by the B.C. Tech Association at The Cube and the Hub were able to continue. In his response, the minister spoke about how The Cube had provided many opportunities and shown leadership in the sector.
However, since that time, The Cube has now announced it is closing its doors in May because it was unable to secure either provincial or federal funding. This closure sends a wrong signal, the exact wrong signal, as to where we should be headed.
My question is to the Minister of Jobs, Trade and Technology. How can the minister reconcile his stated support for the tech sector with the fact that the B.C. Tech Association is being forced to close the doors of The Cube facility?
Hon. B. Ralston: I would like to thank the Leader of the Third Party for his question and for his continuing support for the tech sector. It’s a growing, vibrant sector here in our province.
We spoke last time about The Cube. The Cube’s source of funding came from the federal government, from the western diversification fund. They decided to discontinue that funding. As part of the transition, our government gave them $500,000 to point themselves in a new direction. That did not result in their ability to continue it.
At the same time, in the same sector — the virtual reality, augmented reality sector — just on Tuesday, April 16…. I was there. Actually, Ms. Tipping, the head of the Technology Improvement Association, was there at the launch of a new incubator, the Launch Academy, in the very same sector, the VR-AR sector — very successful, a couple hundred companies there.
This is the biggest AR-VR sector in the world — perhaps maybe second, although one would be permitted, as an advocate, a little bit of boasting, I think. That sector is world leading. We are doing well.
The vibe at that place was really good. I spoke with Alex Chuang, co-founder of Shape Immersive. They are very enthusiastic about the possibilities.
This is a sector where there is change. Things change. The Cube didn’t work out. This sector is taking over. I’m very confident about that sector and its future here in British Columbia — indeed, its future globally.
Mr. Speaker: Leader, Third Party, on a supplemental.
A. Weaver: Well, I, too, am excited about the prospects for tech in British Columbia. I’m profoundly concerned that B.C. is not stepping up to draw the federal dollars that are available that jurisdictions like Ontario have done. In fact, the same week that the Cube was being closed, the federal government announced, in partnership with Ontario, a $90 million investment in innovation in Ontario.
Both B.C. and Ontario have burgeoning innovation sectors that drive economic growth and create high-paying, good-quality jobs. The sectors in both provinces have huge potential for growth, and our sector has some of the best potential of all. It will help us transform our economy and drive prosperity for British Columbians from north to south and east to west.
The only difference is that in Ontario, they’re at the table and willing to invest substantially in this new, up-and-coming sector, whereas B.C. appears to be absent. We’ll be left in the dust behind other jurisdictions if it doesn’t back up its words with actions to ensure that we’re there, able to leverage those federal moneys to ensure that we get the innovation centres in B.C. that are so instrumental to the development of the new economy.
My question is again to the minister. Why is the Ontario tech sector getting $90 million as an investment the same week as the B.C. tech sector is being forced to close a facility for innovation in B.C.?
Hon. B. Ralston: I appreciate that the member is particularly enamoured of the initiatives taken by the Ford government in Ontario. But the reality here in British Columbia is that we are investing a huge amount in the tech sector here.
Let’s begin with 2,900 new tech spaces in institutions across the province. We are investing $110 million in innovative research in B.C.’s leading post-secondary institutions through the B.C. Knowledge Development Fund. We are investing $12 million in graduate scholarships for students, including science- and tech-related disciplines, as well as $500,000 for women-in-tech scholarships.
We are making the commitments. Those commitments are going to be renewed through a new Innovate B.C., which has a fresh mandate, a new CEO who comes from Accelerate Okanagan. I’m very optimistic about the future of the tech sector and the investments that come not only from the start-up environment here, which is booming from global companies which are choosing to locate here. Fujitsu was mentioned in the two-minute statements, and there are many others.
People want to be and tech companies want to be in British Columbia. They are coming here, and they will continue to come here because of what we have to offer.
MASSEY TUNNEL REPLACEMENT PROJECT
I. Paton: It seems that everyone in local government circles has come on board just recently with respect to the tunnel replacement, including the mayor of Delta and the mayor of Vancouver. The NDP are the only holdout to getting a Massey replacement built now.
Residents are demanding a replacement. Any replacement in the year 2030 doesn’t quite cut it with anyone south of the Fraser. All the mayors and First Nations say the NDP timeline is totally unacceptable.
The Premier has no excuse to stall any longer. When will construction start?
Hon. C. Trevena: I appreciate the question. It’s been a long while since the member has asked a question about this very important subject. People are frustrated. I know people are frustrated. They want to get to their families. They want to get to work. But they didn’t want a megaproject, a tolled megaproject that they would be paying for every single time they crossed the bridge.
Our government commissioned a report which showed that it was the wrong project for the region. It was the wrong project. It was too big. It was causing division, and for everyone who did cross it — day in, day out — they would’ve been paying for it.
We removed tolls, and we’re getting consensus on a solution for the Massey project.
Mr. Speaker: The member for Delta South on a supplemental.
I. Paton: Well, commuters waiting for this have been on side from the beginning. It is the number one issue that I’ve heard on the doorsteps in Delta. Rehashing three years of environmental, agricultural and engineering assessments is senseless and redundant. This thing has been studied to death — three rounds of consultation, 4,000 participants and 14,000 pages of studies.
If he hadn’t cancelled it, a replacement would be halfway complete by now. The people of Delta don’t trust this Premier to deliver anything anytime soon.
Commuters and commercial truckers stuck in traffic want to know. When is this new crossing going to be built?
Hon. C. Trevena: As I say, I do understand people’s frustration. They are stuck in traffic. If the opposition, when they were government, had approached this in a way to try and get consensus instead of….
Interjections.
Hon. C. Trevena: We would not be in this position — a $3½ billion project that they kept pushing forward when they were in government.
We now have a consensus from the mayors in the region, which I think is really good to start moving on. We are working through Metro Vancouver. We are working. We are listening to local governments. We’re listening to the needs of local government in a way that the opposition never did when they wanted to put a massive tolled bridge across the Fraser.
J. Johal: Now, if the NDP weren’t so interested in punishing voters who didn’t support them, a replacement would already be halfway built, meaning relief would have been there not only for commuters in Delta and Richmond but also for travellers from Tsawwassen — ferry users, of course — and of course thousands of truck drivers who work Canada’s busiest port. Instead, 90,000 vehicles a day sit idle, burning the most expensive gas in North America, at the George Massey Tunnel.
Question to the minister: when will construction start on the replacement?
Hon. J. Horgan: It’s rare that I get an opportunity to rebut the comments from the member for Richmond-Queensborough, but I don’t know about punishing people in non-government ridings. I mean, say that to the hospital people in Fort St. James. Say that to the hospital people in Terrace. Say that to the hospital people in Dawson Creek.
I lift my hands to the member for Penticton, who has an understanding of the importance of delivering good projects to people regardless of how they vote. That’s exactly what we’re doing on this side of the House.
Mr. Speaker: The member for Richmond-Queensborough on a supplemental.
J. Johal: Clearly the Premier couldn’t answer the question. We’re talking about the George Massey Tunnel.
We’ve had 14,000 pages of consultation done over five years under the previous government and 145 scientific and technical reports done. Then there’s the issue of safety. In 2016, there were, on average, 24 ambulance trips through the tunnel. Six of them were code 3, meaning lights and sirens.
Now, London Drugs — which is also a major employer in my riding, has a distribution centre in my riding — is threatening to move its head office to Alberta because of that fumbling, bumbling minister over there.
After two years, there can be no more excuses for not getting on with the Massey Tunnel project. If the Premier doesn’t commit to this timeline, what timeline will he commit to?
Hon. J. Horgan: Here, after my brief list of hospital projects, I forgot to mention the hospital in Richmond. That was the one that was announced every year for 16 years, with no money attached to it — that hospital. To have the official opposition stand and applaud the fact that there’s consensus on a solution to congestion in Massey defies logic, similar to the lack of economic logic by the Leader of the Opposition. How can you stand up in this place and name-call to someone on the other side because we’ve got agreement on how best to proceed? Four years of them saying, “Our way or not at all,” four years of: “We’re going to add tolls.”
I was in Langley on Friday announcing a highway expansion in Langley, and what the federal minister said to me was: “Maybe we can now help you at Massey because you’re not going to toll the project.”
T. Stone: Six-laning of the Trans-Canada Highway in Langley; the lower-lane corridor, Highway 1; widening an interchange project in North Vancouver; four-laning and intersection improvements on Highway 7 between Pitt Meadows, Maple Ridge and Mission; interchange upgrades along the SFPR corridor; and a cut-the-congestion plan for the Alex Fraser Bridge. These are all projects which were funded and announced by the former B.C. Liberal government.
In addition to that…
Interjections.
Mr. Speaker: Members. Members, we shall hear the question. Thank you.
T. Stone: …these projects have all been delayed by two years by the NDP government, only to recently — each and every one of them — be reannounced by the NDP government.
When it comes to the largest bottleneck in British Columbia, the George Massey Tunnel, the NDP have pushed out implementing a replacement for this bridge by nine years. That is unacceptable to the thousands of residents in Delta and those south of the Fraser. These are residents who are demanding a solution now, and they want a date.
So the question, again to the Premier, is this. Mr. Premier, what’s the bridge replacement date?
Hon. J. Horgan: I was just looking at a list of projects that wouldn’t have been able to be funded if the Leader of the Opposition had given back gas taxes. The six-laning of Highway 97 in Kelowna, the improvements in Prince George — all a result of what used to be sound policy. I’m grateful that the member for Kamloops–South Thompson did a Steel Wheels Tour — his greatest hits, from issuing press releases when he sat on this side of the House. It’s a shame he didn’t mention the ride-hailing option that they worked so hard on as well.
I am delighted — this is directly to the member for Delta South — that the Mayors Council has come together with a focus on a plan. They just did it last week. Let’s give ourselves some time to sit down with them and to work out the details, shall we?
[End of question period.]
Tabling Documents
Mr. Speaker: Hon. Members, I have the honour to present a report intituled Service Plan 2019-20–2021-22 from the Office of the Auditor General of British Columbia.
Orders of the Day
Hon. M. Farnworth: Before I proceed to orders of the day, I do ask leave to make a quick introduction.
Leave granted.
Introductions by Members
Hon. M. Farnworth: I was remiss earlier in not introducing a longtime Port Coquitlam councillor and a friend of mine for many, many years. That’s Port Coquitlam councillor Darrell Penner and his wife, Brenda, who are over here visiting. He does amazing work in our community and has done for a very long time. I would ask the House to make him most welcome.
Motions Without Notice
COMMITTEE OF SUPPLY
TO SIT IN THREE
SECTIONS
Hon. M. Farnworth: I move, by leave, now:
[That further to the motion adopted on February 28, 2019, that this House hereby authorizes the Committee of Supply for this session to sit in an additional third section designated Section C which will sit in the Birch Committee Room as may be appointed from time to time. All rules and provisions of the motion related to Committee of Supply, Section A shall apply to Section C. The Members of Committee of Supply, Section C shall be identical to the composition of Committee of Supply, Section A.]
Leave granted.
Motion approved.
Hon. M. Farnworth: In this chamber, I call second reading on Bill 29, Miscellaneous Statutes Amendment Act, 2019. In Section A, Committee A, the Douglas Fir Room, I call Committee of the Whole on Bill 20, the Medicare Protection Act. And in Committee C, the Birch Room, I call continued debate on the estimates for the Ministry of Environment. When those are completed, it will be the estimates of Indigenous Relations and Reconciliation to follow.
[J. Isaacs in the chair.]
Second Reading of Bills
BILL 29 — MISCELLANEOUS STATUTES
AMENDMENT ACT,
2019
Hon. D. Eby: I move that the bill be read now a second time.
This is the Miscellaneous Statutes Amendment Act, 2019. [Applause.]
I thank the Minister of Trade and Technology for the thunderous round of applause.
The Ministry of Attorney General has the responsibility of assembling minor amendments to different statutes within government and putting them forward in miscellaneous statutes acts. This is one of those acts.
Within this bill, there are several different sections related to different ministries. I can advise members that ministers and their staff responsible for each of these sections will be handling those questions that they may have in committee stage on this bill, as we work our way through in committee stage.
I guess, in short, what I’m saying is that credit for this remarkable bill belongs with several different members of this place and would be wrongly placed exclusively on the Ministry of Attorney General.
First of all, this bill repeals the Christ College of Canada Society Act and the World Trade University Canada Establishment Act. Both of these acts were put in place by the Legislature in order to establish private post-secondary institutions, and it’s the understanding that we have within the ministry and the Ministry of Advanced Education that these institutions are no longer, or perhaps never were, actually in operation.
One of the pieces of work that staff do within the Ministry of Advanced Education and the Ministry of Attorney General is review legislation to ensure that it is compliant with what’s happening out there in the world. It’s our hope that the repeal of these bills will ensure that when people see that these are laws within British Columbia, they won’t see laws establishing universities that do not, or perhaps never did, exist.
It’s the hope, certainly, of staff and of the members on the government side that these repeals will maintain the integrity of British Columbia’s post-secondary system and protect students who may rely on the existence of legislation as an indication of quality and provincial endorsement where none may exist.
Secondly, there are a number of amendments pertaining to the Integrated Pest Management Act. These amendments fall into two categories.
The first is the collection of information and ensuring consistency in terminology. With respect to the collection of information, members will be fascinated to hear that the Integrated Pest Management Act will allow inspectors to collect information and records about future pest management activities that might be planned but may not be underway. This means that site visits can be better organized and that compliance audits during pesticide application will be more proficient, a value that I’m sure all members in this place share. Currently inspectors have no authority to ask for information about future scheduling of pest management activities.
Regarding terminology, with respect to the Integrated Pest Management Act and pest management activities, the amendments are intended to clear up inconsistencies within the act and provide clarity of understanding for members of the public and for those designated to do inspections and to enforce the act. The amendments are in the section of the act regarding administrative penalties, for those members who wish to look up the original act to reconcile the amendments.
The Personal Property Security Act is also proposed to be amended by this bill. That act allows lenders, sellers and other secured parties to obtain security interests in a debtor’s personal property in order to secure payment of the debt and to establish a priority position in the property used as collateral. The purpose of the amendments is to make changes, clarifications and corrections which promote harmonization of personal property security law. These changes are intended to address changes in business practices and the growing importance of interjurisdictional financing transactions, and these were recommended by proposals ratified at the 2017 meeting of the Canadian Conference on Personal Property Security Law.
It’s my understanding, and certainly it will be the experience of members in this place, that we often look to conferences or organizations that monitor the law in British Columbia related to various specialties, including personal property security law, for example, to recommend changes to government to ensure that the law responds to commercial realities in British Columbia. That is what happened here, and it is our hope that these amendments will improve the law, and business practice as a whole, in the province.
The most significant change among these changes is to correct and bring into force new rules for determining which jurisdiction’s law applies to security interests in movable property. These were enacted in the Finance Statutes Amendment Act of 2010. Saskatchewan and Ontario have corrected their new rules, and we’re catching up with them to some extent here in that respect. The minor changes made by these amendments include a change to the procedure for removing a registration from the personal property registry to eliminate an out-of-date exception which requires a court order.
I can also advise members that there are amendments in this bill to the Motor Vehicle Act and Motor Vehicle Amendment Act, 2018. The intention here is to clarify the review framework for administrative driving prohibitions and make other minor changes.
Members in this place may be familiar with the administrative driving prohibitions which can take place at roadside and be issued by a police officer when an individual is believed to be impaired while driving at a level of .05 or higher.
When a person is served one of these driving prohibitions — that’s in relation to alcohol, obviously; it applies in relation to cannabis now, and other impairing drugs — they can apply for a review of that prohibition to the superintendent of motor vehicles on limited grounds.
In an effort to clarify the review grounds, the amendments in the bill will explicitly state that an individual may apply for a review on the grounds that they did not actually operate the motor vehicle. It seems strange that this should be necessary. But in fact, it has been observed by staff within the ministry that this would clarify and ensure people understand, when they’re looking at areas allowable for review, that if they were not actually operating the vehicle and they received a driving prohibition, that would be an appropriate area to request review by the superintendent.
These amendments make the review framework for administrative driving prohibitions consistent with other alcohol- and drug-affected driving prohibitions under the Motor Vehicle Act, more broadly.
As you can see, it’s an array of amendments to various acts of a more minor variety assembled into a single statute by the Ministry of Attorney General for the members here. As I advised members, multiple ministers and their staffs will be coming in to provide support throughout the committee stage of this, to assist the House in understanding the implications of these amendments and the proposed amendments under the act.
I think I’ll conclude my remarks there, and I look forward to hearing what other members have to say in response to the bill in this second reading debate.
M. Lee: I rise to speak generally in favour of what’s been proposed under this Miscellaneous Statutes Amendment Act, 2019, Bill 29.
Generally speaking, of course, members of this House are supportive of the need to continue to clarify and update B.C.’s laws so that they reflect the current realities in our province and also take advantage of the continued nature of improving and taking into account best practices, in terms of drafting, learnt through experience and also from other jurisdictions.
It is certainly an important task of legislatures, including this one, to look at, across the country, the importance of harmonization of various regulatory frameworks, as is done with the Personal Property Security Act, for example.
However, this is the sixth miscellaneous statutes amendment bill that this government has introduced in their first two years of government. It’s a bill that continues to put forward amendments on top of amendments. We’re seeing that, given the nature of the legislative agenda for this government, they’re going back and forth on various provisions of various acts that they’ve put forward. There’s a tremendous use of resources and time here. I think that this is something that we’ll be reviewing in the committee stage as well.
The changes to the Integrated Pest Management Act certainly provide for additional compliance requirements on reporting and specific details around when an area will be applied with various pesticides. That’s important, certainly, for more high-risk zones and sites, including where there are water bodies involved. As I heard only a few hours ago in the briefing that I was provided, this will enable inspectors and other ministry personnel to be on site to ensure that the buffer zones are met from the application of various pesticides in a sensitive area, in particular.
It does, of course, invite questions around how this new tool of reporting will be managed, the resources that’ll be employed, the nature of the recordkeeping that will be necessary under these provisions and the kind of enforcement personnel that the ministry would have available to itself.
As I mentioned, the amendments that are being proposed to the Personal Property Security Act, certainly as we understand, are well recognized in terms of the importance of the harmonization across the country and the timing of those provisions. There are some technical amendments, as well, that we’ll be looking at in the committee stage relating to priority, not just perfection. That’s something, certainly, that many — and some in this chamber — study in law school in terms of the basic principles around PPSA registrations.
If I go forward and look at what’s going to be required in terms of the Motor Vehicle Act, certainly in terms of the administrative driving prohibitions and what’s required to have clarity of the individual that might be going through those prohibitions, to ensure that that person is a person who is actually driving the motor vehicle and the time of evaluation being the evaluation at the time this test is being conducted….
I think there’s certainly a level of clarity that’s necessary there. As I understand it, these amendments are being made to the Motor Vehicle Amendment Act, 2018, which this government has brought forward, and there are regulations that are still to be brought in connection with that amendment act that require these amendments to be made in this miscellaneous statutes amendment bill.
So there’s a piling up of amendments that are to come here in the face of what is a very important security concern for the public here in this province — that is, those individuals who may be driving under the influence. Certainly, whether it’s alcohol or drugs, this is an important area that this government needs to be addressing and, hopefully, is doing it in a more thorough way at this time and in the face of these amendments being brought forward.
With that in mind, those are the kinds of issues that we’ll be looking to have more review of at the committee stage, and I may be joined by other colleagues of mine on this side of the House.
Hon. R. Fleming: I’m pleased to be able to speak to this miscellaneous bill this afternoon, because it does have a number of important housekeeping functions in it, amending, as it does, four different statutes.
One in particular that I’ll speak to is particularly important to me as somebody who oversaw providing some scrutiny on advanced education in this House for a number of years, where we warned the government of the day that it was committing a mistake, that it hadn’t done its due diligence. In fact, they went ahead and created a law allowing an entity that never actually came into being for a number of financial reasons and otherwise, including the fraudulent representations of the proponent at the time.
I would take issue with the member for Vancouver-Langara, who notes that this is the sixth miscellaneous bill that the government has introduced. I would make two points in response to that.
It’s no secret that our government has a number of areas where it has to clean up messes left by the previous government — a number of areas. In some cases, these are Crown corporations, entire programs, and in some cases, it has to deal with flawed legislation that the government was warned at the time was flawed but proceeded to pass anyway.
Where I may agree with the member for Vancouver-Langara about the potential abuses of a miscellaneous bill is if government is tucking in amendments that are substantive and significant, as opposed to what this government has done, which is to transparently advise that — rather than, for example, splitting this into four bills and wasting valuable legislative time that I’m sure that the opposition wants to manage as closely and prioritize as much as the government does — we put it in a miscellaneous bill so that debate can happen simultaneously on things that could be considered by some, perhaps, to be insignificant but nevertheless are substantive enough that they deserve amendment and attention. That’s what a miscellaneous bill is intended for.
So the member for Vancouver-Langara may want to actually qualify rather than just do a drive-by on an allegation that we’re using a miscellaneous statutes amendment bill wrongfully — to acknowledge, in fact, that our government has been absolutely transparent and fair in providing debate time in the use of a miscellaneous statutes amendment bill. If only his government had treated the opposition the way that we treat them — in the same fair-minded way.
Let me speak to the area that’s of particular interest to me in this bill, and that is a bit of housekeeping, if I can put it mildly, around the World Trade University Act that was passed ignominiously by this Legislature in 2006 — against the advice of various post-secondary educators’ organizations and faculty associations in the province of British Columbia; against the advice, undoubtedly, of ministry staff at the time who had probably checked out the credentials of the proponent and found it wanting; against the warnings, certainly, from the opposition at the time; and many, many others.
This entity was promised free land at the former CFB Chilliwack site. They were promised all kinds of tax concessions by local government. They were lauded by the B.C. Liberal government of the day as some kind of heroic senior executive management school that would be absolutely free to the taxpayer, even though it was layered with all kinds of tax concessions. They promised us that nobody would be able to operate in British Columbia using the word “university,” which is sacredly guarded, without their quality and reputation being checked.
Guess what. They didn’t do the work. In fact, the proponent of this so-called university was reprimanded — this was public knowledge at the time, as the government was putting its bill through the House — for illegally using and claiming a connection to the United Nations, with which it had no such connection. It was reprimanded for illegally claiming and representing that it had a connection to the World Trade Organization, the WTO, with which it had absolutely no connection.
Guess what they were doing. They were shopping around for investors, many of whom could have been bilked out of their potential investments, using the reputation that Canada and British Columbia have built up over decades for high-quality post-secondary education, using that as a way to suggest that they had been scrutinized and that they were the real deal.
That’s the shame of the bill that we’re repealing today — that this happened in plain sight, with the government’s knowledge at the time and that Mr. Chowdhury, who was the proponent, was somebody who was, shall we say, being chased by the law on several continents and was invited to do business here with all kinds of free tax goodies and incentives in British Columbia. He did not have the authority to offer MBAs and advanced management degrees by the United Nations. He did not have a curriculum that was aligned with any of the international trade organizations to which he claimed affinity.
The reason why that act needs to be repealed here and today is because British Columbia suffered significant damage, reputationally. The United Kingdom higher education supplement wrote all about the debacles in British Columbia and how unusual it was for a Canadian jurisdiction to get it so wrong. The Vancouver Sun wrote an interesting summary of the whole World Trade University fiasco, which went on for several years, and said that in the end, this university only served up “degrees of embarrassment.” It never got off the ground. It cost the taxpayers a lot of money. It could have done even further reputational damage than perhaps it did do in the end.
That brings me to the point which the Attorney General should be thanked for this afternoon: that government needs to clean up a lot of messes from the previous government. To have this statute on the books would invite, potentially, further abuse than we’ve suffered already. It could allow a third party to claim that it would act within the law if this were allowed to stay on the statute books. So it needs to be repealed. In fact, the government had the opportunity to listen for years and years to CUFABC, to the Federation of Post-Secondary Educators, to various university presidents — who would say, both privately and publicly, that what is being done today should have been done a long time ago.
I would hate to see somebody come into this province and examine that — a law that is flawed and that refers to a failed entity, which could somehow be picked up and marketed again to international students. We’ve seen, in the past under the previous government, way too many students lose valuable savings, getting ripped off and not having adequate consumer protection in British Columbia.
We’ve worked quickly as a government to change that and to make sure that international students here don’t have horrific nightmare stories where they’re being ripped off by unsavoury fly-by-night operations. As a jurisdiction connected to other Commonwealth countries that have, over the years, protected who can legally use the right to the word “university,” we must protect that. The amendment bill that’s before us today does exactly that.
The Attorney General has obviously considered opinions that the previous government wrongly rejected — those of senior academics, those in the business community, those from the entities that were erroneously linked to the very name of this so-called, fake, university. For cleaning up that mess, among many others, I think the House should thank the Attorney General this afternoon. He’s properly using the parliamentary procedure around what a miscellaneous statutes bill should be. I would say it’s an exemplary example here this afternoon, and I will enthusiastically vote for this bill.
Hon. D. Eby: Just a couple of quick remarks in relation to the speeches on this bill before I move second reading. First of all, I wanted to thank the Minister of Education, because when he was the critic for Advanced Education, he raised this issue that he spoke about — about this university. He explained to the government in several different ways why that bill should not go ahead. So he speaks with some knowledge about that. I want to thank him for his service to British Columbians — drawing it to the attention, at that time, that it wasn’t a great idea — and for giving us a little bit of history about that bill.
I also wanted to respond a little bit to the comments of the member for Vancouver-Langara in relation to the miscellaneous statutes bill and what the government is doing. The member can expect, and should expect, multiple miscellaneous statutes bills. We are doing a lot of work within the ministry and within government — to borrow a phrase again from the Minister of Education — to clean up a lot of problems that were left for us by the previous administration.
Some of them are small, as miscellaneous statutes — all bills introduced that needed clean-up, that people were suggesting changes to, to make things run more smoothly. We’re listening to those, we’re making those changes, and we are prioritizing those changes. We’re very proud to do that. I don’t quite understand the criticism; we’re doing what we were sent here to do. In any event, that’s his position, and that’s mine.
With that, I move second reading of the bill.
Motion approved.
Hon. D. Eby: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 29, Miscellaneous Statutes Amendment Act, 2019, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Report and
Third Reading of Bills
BILL 20 — MEDICARE PROTECTION
AMENDMENT ACT,
2019
Bill 20, Medicare Protection Amendment Act, 2019, reported complete without amendment, read a third time and passed.
Hon. D. Eby: In the big House here, I call second reading of Bill M209, the Business Corporations Amendment Act (No. 2), 2019. In Section A, in the Douglas Fir Room, I call Committee of the Whole on Bill 25, the Coastal Ferry Amendment Act, 2019.
Second Reading of Bills
BILL M209 — BUSINESS CORPORATIONS
AMENDMENT ACT
(No. 2), 2019
A. Weaver: I move that Bill M209 be now read a second time.
It gives me great pleasure to rise and speak at second reading to Bill M209, Business Corporations Amendment Act. I will outline my speech in four different sections. I’ll start by giving a brief introduction as to the purpose and the intent of the bill — what it does — moving on to the process by which it was created, and finishing with a conclusion and the type of economy it’s trying to encourage and build.
This is a bill that my office has been working on for quite some months, since May of last year, and I’m thrilled that we’ve been given the opportunity to debate it today. I’m, frankly, grateful to government for providing us and members of the opposition access to legislative drafters to allow us to bring this bill in the form that we know has gone through the formal legislative drafting process.
I’ve talked a lot about the emerging economy and the fact that the government needs to be prepared and resilient amidst the rapid shifts that are occurring in our society and our economy. These include, but are not limited to, things like climate change, environmental degradation, changes to the nature of work, rapid technological advance, the whole increasing disparity between those who have and those who don’t have, income security and so forth. I believe that, frankly, business must play a central role in helping us tackle these enormous challenges and find solutions. It is not only up to government to find the solutions. It is also up to business.
That’s why we created this legislation to create benefit companies in British Columbia. The idea for this legislation was brought to us from the business community, from both small and large companies that are already using their business to do good and wanted a clearer legal framework under which to operate. I think government, frankly, needs to do more to encourage and support these types of businesses that have chosen to go beyond the pursuit of profit to also pursue critical social and environmental values.
What does the bill do? I want to start by highlighting some of the key elements of the bill. One, it adds a new part to the Business Corporations Act, enabling companies to incorporate as benefit companies. It would provide a legal framework for companies that are committed to pursuing a triple bottom line to embedding social responsibility and environmental sustainability into their companies’ DNA. These companies could take on expanded purpose, accountability and transparency.
The bill would require companies to change their articles to enshrine a commitment to act in a responsible and sustainable manner. This means they must — that’s important, the word “must” — take into account the well-being of persons affected by their conduct and endeavour to use a fair and proportionate share of available environmental, social and economic resources and capacities. They must, again, also pursue one or more specific public benefits of a positive effect on society or the environment.
Another key component of the legislation is that it creates new duties for directors of benefit companies. They must — again I use the word “must” — balance their duty to act in the best interests of the company with the new duties to act with a view to operating their business responsibly and sustainably, as well as to promote specific public benefits. I want to come to highlight this a little bit more because I think this is an important element, a key element, that we need to highlight.
Right now it’s clear. Our case law already makes it very clear that directors may — it’s a very important word “may,” as opposed to “must” — consider broader stakeholders as they consider their duty to act in the best interests of the corporation. The federal government recognized this and is now codifying this into the Canada Business Corporations Act. That’s a very welcome move, frankly, that the federal government is doing in making it clear that all directors have the ability to consider broader stakeholders in their decision-making — that they may consider. That’s based on the case law that arose from the very famous BCE case that enshrined at the Supreme Court level that directors may in fact go broader than just fiduciary responsibility.
We also know that considering broader stakeholders in their decision-making is one thing but also that Canadian directors are not bound by a shareholder primacy rule. This bill does something different. It does something very different. It goes further. It creates a duty for directors of benefit companies to act responsibly and sustainably to promote public benefits. More than this, it requires directors of benefit companies to balance their existing duty to act in the best interests of the company with these new duties to act responsibly and sustainably and promote public benefits.
Again, I come back to this. This was an issue brought to us by small and large business looking for certainty, looking to do a reduced risk as they move forward in these directions.
It’s important to note that nothing in this legislation precludes the directors of an ordinary company from also considering other interests, like employees or the environment, when acting in the best interest of the company. This does not preclude any existing company from doing that. But benefit companies must also report their performance against an independent third-party standard which must be developed by a person or entity that is unrelated to the benefit company.
The reporting must be done annually and must be available to the public. This element is important to ensure transparency for suppliers, purchasers and customers that the company is indeed living up to its stated goals. I hope that this requirement will spur innovation in B.C. and that strong local standards will emerge for benefit companies to use, as put forward and adjudicated by strong, B.C.-based, third-party verifiers.
The legislation creates clear expectations about the nature and mandate of the company and provides protections for directors who choose to prioritize public benefits and not only profit.
This legislation would help mission-driven companies stay true to their mission as they grow and protect the vision of the founders of benefit companies by embedding the environmental and social benefits into the companies’ actual mandate.
It would provide more certainty for impact investors, another critical aspect of this bill. The impact investors are looking to invest in mission-aligned companies of the nature and the mandate of a company, but what’s critical to them is that they not have an asset lock that existed in very fine enabling legislation for the creation of what are called C3s in the province of British Columbia, put forward by the B.C. Liberals in the last session. That doesn’t affect that at all.
But what it does here…. The asset lock associated with those C3s precluded impact investors from actually moving forward, because you invest and you can’t get your investment back out. This would allow impact investors to actually know that the company is triple bottom line and is one focused on a much broader mandate than just fiscal benefit for the shareholders.
The act would provide more certainty for impact investors looking to invest in mission-aligned companies, as I said. Moreover, this legislation would provide a simple framework for companies to adhere to that is legally and commercially recognized.
The choice to become a benefit company is completely voluntary. There’s no requirement. There’s no impact on existing corporations and no tax implications at all, although the government down the road may view some kind of change in the way it incorporates tax to benefit companies versus other companies, if a government moving forward sees that this is something they wish to encourage. But that is up to government and not something that we’ll be bringing or discussing in a private member’s bill.
I also believe that the benefit company legislation would be complementary to existing structures in place. I want to recognize again — come back to this — the leadership and initiative put forward by the previous government in creating the so-called C3, or community contribution companies, that I spoke about. I see C3s and benefit companies as different ways, on a spectrum, for government to support socially and environmentally responsible business forums.
Now, I’ve heard, and we’ve consulted extensively, from many businesses that the C3 structure is simply too restrictive for many for-profit businesses, since they would need to fundamentally change their corporate structure and reduce their ability to attract investment. We can and should, frankly, provide another option to support sustainable and responsible businesses in B.C.
The C3 structure works wonderfully if a not-for-profit is looking to create a business arm that is permanently associated with the not-for-profit because the asset lock of the company associated with a not-for-profit is the not-for-profit. So any profits must be flowed back to the not-for-profit. That works well in that case. It does not work well for a for-profit business venture which is seeking to do more than just fiscal bottom line.
I’d fully support any efforts to continue the work started by the previous administration to support C3s. Steps in this direction could include, for example, doing more to promote the C3 brand, enhancing public awareness of C3s and providing tax incentives and benefits for investments in C3s.
This, again, is not something that we believe competes with C3s. It’s something that we believe is very complementary to C3s. But it gives certain classes of companies, those that are looking to the triple bottom line and not have to worry about the asset lock associated with the C3, to actually incorporate and move forward in that manner….
I’d like to take a few minutes on section 3 here to discuss the process that led to the position we’re in now. As many, obviously, who are aware, I first introduced this bill for debate last May with the purpose of starting a conversation of that Legislature. We had a discussion and a debate and passed second reading, and over the following months, we worked as a caucus very hard to consult stakeholders and experts from across Canada, frankly, and elsewhere to make sure that we got the details right.
We met with many, many business leaders, as well as leaders in social enterprise and owners of C3s, about their goals for a sustainable economy and how this legislation would fit in or what we needed to do to ensure that we were able to build support. We also undertook an extensive consultation with the B.C. branch of the Canadian Bar Association to get insight from them as to the various legal questions that might arise from this.
Throughout this process, we worked closely with the legislative drafter, the one that we’ve assigned to this project, to craft this amendment in order to ensure that it is legally enforceable and that it works well and is consistent with existing B.C. laws. And, of course, we consulted with government through the confidence and supply agreement secretariat.
In conclusion, I’m very proud of this piece of legislation, and I’m very glad to see that we’re debating it at second reading today. I’m grateful to government for bringing this forward on the order paper to actually allow us to have this debate. I think it bodes well for working across party lines to see private members’ bills discussed in this fashion. I hope we’re able to move forward both with opposition bills as well as other bills from others in this chamber.
We will have a rather interesting and novel process in committee stage. I look forward to articulating that as we move towards that. This hasn’t been done before in this Legislature, as far as we can tell, where an opposition member is in committee stage. That will be a unique experience. I think we might point to some revisions in the standing orders that we might want to discuss collectively as we move forward, as we move to this committee phase, an odd committee phase that it is, in the B.C. Legislature, compared to other jurisdictions.
I believe that, frankly, becoming the first jurisdiction in Canada to champion benefit companies is a huge opportunity. We know that Quebec is right behind us here and likely going to follow through shortly thereafter. But we’re leaders here in B.C. We don’t follow others. I think British Columbians enjoy being leaders, and that’s why I’m excited that government has continued to support this effort moving forward.
B.C. is already, like Quebec…. We’re sort of a mirror of Quebec in that regard. We are home to many, many socially responsible companies. It’s part of our, frankly, stellar brand as one of the greenest places in the world. “Super, natural British Columbia” and “Beautiful British Columbia” are monikers on our licence plates, for years have been focusing on our natural beauty and what brings people to our lovely province.
We’ve been seeing, also, shifts in consumer patterns and behaviour, particularly among younger demographics sensitive to social and environmental impacts. We know, again, from our extensive consultation, that the millennial group — the category, however you want to call them — millennials in this area, are very concerned about social enterprises. They’re very supportive of and look, actually, to buy from and invest in social enterprises or triple-bottom-line companies. Benefit companies allow those companies, from small to large, to actually demonstrate, distinguish and be publicly transparent about their overall mission in a triple-bottom-line sense.
Frankly, we’re struggling as a society to adjust and respond to massive technological, social and environmental shifts that we’re facing — whether it be, as I said earlier, from climate change to automation. We need, frankly, I think, to think differently in order to turn our challenges into opportunities. This is one of the things this bill does here.
We need the partnership and to engage with the business community to help us deal with these challenges. Not to prescribe solutions to business but to work with business to allow the innovative ideas in business to flow through in an environment that seeds and nurtures this innovation. That’s how we’ll be successful.
Government and the non-profit sector cannot, by themselves, respond to the challenges that we face before us; frankly, nor should they. Businesses play an incredible and a huge role in our society, and they must be part of any solution to any problem that we see emerging. Companies that pursue a triple bottom line, frankly, are on the cutting edge of rethinking the role of business in the 21st century.
Now, some are doing so voluntarily. Others wish to do so, and they wish to be protected. This legislation gives them protection and gives them the ability to follow a suite of rules that are set out to ensure that what they do is enshrined in their articles and protected moving forward.
Businesses know that acting in the best interests of people and the planet is the best way to build a thriving economy for the long term. If B.C. had this legislation on the books and if companies were able to incorporate as benefit companies, with an explicit social or environmental benefit baked into that purpose, it would send a very strong signal to the market that the government supports this approach to business and that British Columbia is a home and wants to seek and attract new business in this area.
We look forward and encourage more companies to incorporate social and environmental values into their own businesses, empowering them to create change in our province and to help us solve many of the challenges that face us all.
I look forward to listening to the other comments and the deliberations at committee phase.
Hon. B. Ralston: I’m pleased to stand in the House today and support Bill M209, amendments to the Business Corporations Act, tabled by the Leader of the Third Party.
Indeed, this is, as he has mentioned, an exceptional example of how the Legislature works best when all sides of the House can come together to work for British Columbians. The values of collaboration, partnership and public good are fundamental to this minority government and to the confidence and supply agreement between our two parties. We’ve worked closely, as the last speaker pointed out, with our partners towards today’s amendments, which will give B.C. businesses a new option to create a corporate structure which furthers the companies’ social, environmental and business goals.
Certainly, there is some tradition of legal interpretation and, I think, public discussion that suggests that a company has to advance only, solely, the interests of shareholders. It’s sometimes called shareholder value. Or the other focus would be exclusively on maximizing profit. Sometimes it’s expressed that way.
Now, that is a matter of legal dispute, whether that is the sole requirement. This sometimes comes up in debates on pension fund administration, where the trustees may wish to invest in a company for reasons other than their ability to maximize profits. There has been some litigation and consideration of that obligation.
What this bill does, and the language of this bill, is make very clear and explicit that the purpose of…. These amendments would allow for incorporation of a legal entity that is a benefit company, where the purpose of the company is expressly set out in its articles of association.
A benefit company is defined as a for-profit company that is legally required to consider its stakeholders — such as the environment, the local community or future generations — in addition to its shareholders. It bypasses that debate and makes it very explicit that the company isn’t legally required…. It’s, in fact, obligated — it’s not an option — if the company chooses to head in this direction, to consider the shareholders or the stakeholders in specific areas.
The new legal framework described in these amendments would require a company to state that it is a benefit company in its notice of articles and to state the public benefit it wishes to promote. So rather than subject to the changes of the board of directors or the whim of the CEO or changing directions in public sentiment, this would anchor that company to those articles, and it would be required to report what its public benefit is.
The company will define for itself what it is. For example, it may state expressly that its interests are climate change, cultural diversity or scientific advances. Each company, then, a benefit company, would report on how it has conducted its business in a responsible and sustainable manner and promoted its stated public benefit.
Many B.C. companies and B.C. businesses are already leaders in building sustainable and socially responsible practices into their enterprise. The Leader of the Third Party certainly pointed that out. In fact, one might argue that in order to be a successful company, in order to attract and retain particularly millennials who are looking for meaningful and purposeful work…. One of the advantages of having a company with a social purpose is its attractiveness to its employees and also its attractiveness to potential consumers of its services or of its goods. Certainly, that’s very evident in the corporate advertising strategies of many companies these days.
I think this legislation is reinforcing a direction which is already emerging as a trend, particularly here in British Columbia. Businesses will have a new way to build public responsibility right into their legal framework. People certainly want more choices that reflect their values when building their businesses, and British Columbians, as I said, want to choose businesses that share the same goals. This bill puts forward changes that will help to build a strong, sustainable economy that works for people in British Columbia and helps build a sustainable economy.
As the Minister of Jobs, Trade and Technology, I’m happy to support this bill, Bill M209, and to provide businesses with a new corporate structure by which they can show their commitment to the public good.
That concludes my brief remarks.
M. Lee: It’s a pleasure to speak to this private member’s bill introduced by the member for Oak Bay–Gordon Head.
In reaction to my last comments by other members in the House about a miscellaneous statutes amendment bill, the sixth one, let me just say that it’s indicative of the kind of dialogue we have this in this House. Clearly, a miscellaneous statutes amendment act is there for housekeeping.
[R. Chouhan in the chair.]
The concern that was raised regarding the prolonged nature of these exercises and how we keep turning over various amendments and the fact that there’s a sixth one that has come forward in the less-than-two-year span of this government is a concern. That was the concern I made. The fact that there was some language utilized about cleaning up messes…. I think that that is something that was clearly beyond the scope of the miscellaneous statutes, as these statements might be the concern.
Interjection.
Deputy Speaker: Member.
M. Lee: Let me say, with the changeover here…. I should say, of course, that there have been 26 private members’ bills introduced by members of this House — not by members of the NDP government or from the Green Party but by members from the B.C. Liberal caucus. In some cases, those bills have been tabled twice — the Safe Care Act, for example; the Equal Pay Reporting Act; the Welfare Payment System Reflection Act; the Vulnerable Adolescents Protection from E-Cigarettes Act.
These are just a few of the various private members’ bills that have been tabled in this House and have not had this opportunity that we are about to have in this conversation around this particular bill. As the member for Oak Bay–Gordon Head just noted, he would wish and hope that there’d be an opportunity for those other bills that have been raised by members of the B.C. Liberal caucus to also see the floor of this House.
I certainly stand here, along with my other colleagues, to urge this government to enable that. Because there are other pressing matters as well, good initiatives where private members put in time and effort to go out to do the various stakeholder-type conversations that the member for Oak Bay–Gordon Head has done in order to bring forward a private member’s bill. Again, I would say, on behalf of the other members of the B.C. Liberal caucus, that we certainly would urge this government to give the opportunity for members of this House to consider the 26 private members’ bills that have been introduced over the last two years in this House.
Having said that, it’s very clear that the record in this House has been that we need to continue to support the development of a corporate model that allows for companies and entrepreneurs to pursue a social purpose in addition to their business interests. We see that the corporate world continues to evolve in terms of good governance and that it’s important for all stakeholders — including employees, shareholders and other potential investors — to consider the aims of a company and whether they align not just with the notion of dollars but the notion of public good.
This legislation certainly would provide a further choice for entrepreneurs, business owners and risk-takers to work forward on a different structural entity. This does, however, follow, as noted by the member for Oak Bay–Gordon Head, the previous initiative, which at the time was the first legislation of its kind in Canada. This was back in 2012-2013, when the B.C. Liberal government established the community contribution companies act, 3Cs, in terms of the initiatives that were brought forward for amendments to the Finance Statutes Amendment Act and also the Business Corporations Act.
This was to ensure that entrepreneurs could pursue social goods through their businesses while allowing them to generate a profit and provide investment opportunities to like-minded investors. The legislation, as it was originally considered, was designed to bridge the gap between for-profit businesses and not-for-profit enterprises.
As I mentioned, this innovative business model was the first of its kind in Canada, and the 3C status certainly signalled that a company has a legal obligation to conduct business for social purposes and not purely for money gain. The establishment of the structure was built to facilitate companies pursuing social goods and to help them build earned income to secure long-term growth.
One or more primary purposes of a 3C, a community contribution company, must be community purposes, and these purposes were to be set out in the articles. This obligation was in the hope to attract capital that is not readily accessible to the social enterprise sector by appealing to philanthropic investors who still expect some financial return from their investment.
There are a lot of good measures of this particular bill, which we will come back to. But I wanted to also acknowledge what the member for Oak Bay–Gordon Head said, which is that for the 3C framing, it’s going to be important that we continue as a province to support that option — that we publicize and encourage and support that so that more organizations can take advantage of what has been a B.C. Liberal caucus initiative in the past.
In terms of the ability of a benefit company to come forward, there are some elements of the bill that we will have to walk through in discussion at committee stage. That will be how we would be working with third parties responsible for managing the standards of benefit corporations — who will do that, how that process will work, whether or not domestic standards will be developed. Additionally, we’ll want to seek to examine in greater detail how this legislation fits into how Canadian corporate law already works. I will make some comments later on in my remarks about that. It certainly will be something that we’ll want to consider in terms of the protection that was there.
The so-called asset lock was really to ensure that those who might invest funds in a 3C weren’t going to find themselves with those assets or those funds being moved to another purpose. If there was a dissolution of a 3C enterprise, those funds would need to find their way into another similar enterprise that had a similar objective or aim in mind. That is an example of how we will be looking, at the committee stage, as to this particular private member’s bill about benefit corporations and what protections there are for investors in these enterprises.
Certainly, there is increased level of transparency in terms of the reporting of benefits on a regular basis that’s contemplated here, as was the case with 3Cs. But in terms of the actual spelling out in the articles of the purposes of, in that case, a 3C or benefit corporation, that’s going to need to be clearly set out.
One thing I would add here to members of the House is that it’s useful, of course, to keep in mind that the evolution of good governance of corporations in Canada has certainly gone beyond ensuring that the interests of stakeholders and shareholders are kept front and foremost.
As my colleague on the other side just mentioned in terms of shareholder return, that has been the traditional way of looking at how companies might operate. But we have seen that with greater transparency requirements, disclosure around governance structures, annual report expectations, companies of course that want to ensure that they have the support from local communities, from governments of the day, from their investors, from their employees, operate with the best interests of not just the shareholders in mind, but of all stakeholders. That includes employees, creditors, consumers, the environment — those who are concerned about the impact that a resource company may have on a local community and where people live — and, of course, relationship with Indigenous peoples.
These are the kinds of contexts in which companies must operate and for which there is expectation by shareholders that companies can demonstrate that they’re operating in accordance with best governance principles.
Of course, it doesn’t take the laws of the day, whether it’s through the courts or through government, to tell companies to do that. The dialogue that’s here in this province and this chamber oftentimes is that there’s a separation between the corporate interest versus individual British Columbians. I think that a bill like this…. We need to be careful about the bill, in the sense that we need to recognize that companies today need to operate in the best interests of all stakeholders. That’s in the case of decisions that we’ve seen at the Supreme Court level, whether it’s in Peoples Department Stores v. Wise or the BCE decision.
I know that when I worked in business law, advising many companies about their duties, directors and management teams, those boards of directors and management teams took the responsibility seriously. The laws of the day certainly have provided for greater expectations around transparency, as I mentioned, and also greater requirements around how companies operate. So it’s important, as we look at this bill, that it’s done within the context to understand that benefit corporations will give one further option. But it should not, for some investors who see impact investing vehicles as having a necessary structure, to enable that….
Benefit corporations in the United States certainly have been a movement of sorts. We will see how they adapt and work within the Canadian context. But Canadian corporate governance laws are much different from U.S. corporate governance laws. We are far more progressive and far more accountable, let’s say, in the way that corporations operate. I think it’s important that members of this House continue to recognize that, and recognize, as we consider this benefit legislation, that it is one piece in a spectrum of what’s important as to how we continue to support and work with business owners, management teams and their boards and their stakeholders in terms of ensuring that companies are part of building a better future here in this province.
Hon. C. James: Thank you for the opportunity to speak to Bill M209. Before I go into talking about the substance of the bill, I just want to take a couple of minutes to talk a little bit about the process of how the bill was developed.
I understand that the Leader of the Third Party talked a little bit about that, but because it’s often contrary to what people believe happens in this place, often contrary to what people imagine is always the cut and thrust of debate and discussion in this Legislature, I think it is important to just take a few minutes to talk about the process of developing this bill.
From my perspective, it really underscores what I believe most of the public expects us to do in this place. It underscores the value of collaboration. It underscores the value of partnership, of public good — all the foundations of our confidence and supply agreement that we have in place in the minority government. But I really believe these are the principles that most of the public expects of their elected officials to come to this Legislature and bring to this Legislature. They certainly, I believe, were the values and are the values that helped bring this private member’s bill forward.
As we all know in this House, this is not a government bill. When this bill was first tabled, our government felt it was an idea worth exploring. We noted, certainly, that the Business Corporations Act is a very large bill. It’s a very technical foundational piece of finance legislation. It was critical to make sure that any legislation that came forward was drafted in a way that worked with the principles of the bill that were there.
Our government…. The public may not be aware of this, but we have a new policy that ensures that all members of the Legislature — not simply members of the Green caucus but, in fact, all members of the Legislature — and their staff can access the legislative drafter to ensure that as they bring legislation forward, it meets the intent of the existing legislation and that it works. Because ultimately, if we want to make sure that we bring something forward, we want it to work in the Legislature.
I know that the Third Party caucus worked very closely with their drafter to make sure that they drafted the bill in a way that, as I said, made it possible for it to be brought forward. I also know that the members welcomed the feedback from Finance staff. I’ll say thank you to my Finance staff as well. They provided technical advice to make sure the amendments that were coming forward fit within the existing framework of the Business Corporations Act.
There were meetings. There were reviews of the draft legislation. As I said, the work certainly was very much in the spirit of collaboration that was set out. I think, again, that the agreement that we’re seeing today and the debate on a private member’s bill, certainly from my perspective, show that the Legislature works best when all MLAs can bring forward good ideas and when MLAs can come together to actually support those ideas that will advance the public good. That’s really what you’re seeing today in the legislation.
As I said, I highlight it because I think it’s so contrary to the adversarial process that people associate with politics and associate with the Legislature. I think it’s important, as I turn to the substance of the bill, to make sure that we’ve reminded people that in this place, it is possible. It is possible in this Legislature for us to come together. It is possible for opposite sides to collaborate, to bring forward good legislation and to be able to have that debate and discussion in this place.
I’m just going to take a few minutes to look at the substance of this bill. The Business Corporations Act, in itself, is a facilitative statute. It allows British Columbians to create legal entities to help further their business and their social goals. The amendments that are coming forward create a new legal entity, as you’ve heard in the discussion — a benefit company — and give British Columbians a new option when choosing a corporate structure for their business.
A benefit company is a for-profit company with the legal requirement to consider other stakeholders and other issues and areas such as the environment, the local community or future generations in addition to its shareholders. In particular, the directors of the benefit company must exercise their powers in a manner that balances their duty to act in the best interests of the company and their new duty to act in a responsible and sustainable manner and promote the company’s stated public benefits.
Benefit companies are a relatively recent creation in corporate law, first introduced in 2010 in the United States. Since then, we’ve seen significant growth in jurisdictions, with benefit companies now possible under corporate law in 35 of the U.S. states as well as Italy and Colombia.
In line with the facilitative nature of the Business Corporations Act, this bill will enable companies to state the public benefit that they wish to promote. As a safeguard — because, I think, accountability and transparency are critical in making sure that this legislation works and that these amendments work — the benefit company must explicitly state its public benefit goals in its articles of incorporation, which allows investors to determine if the stated public benefit aligns with their investment and their social goals. To measure these goals, every year a benefit company must prepare a benefit report describing how it’s conducted its business in a responsible and sustainable manner and promoted the public benefit specified in its articles.
This assessment — I know the member of the opposition will be asking questions in committee — will be performed through the use of a third-party standard that will measure the benefit company’s success in achieving its stated public benefit. A third-party standard is a standard developed by a person or entity unrelated to the benefit company — again, providing that accountability. State clearly up front what the benefit is, report out on that benefit, and have a third party be able to assess whether they have reached the success.
The benefit report must also be presented to the shareholders of the company at the annual general meeting. It must be kept in the company’s corporate records, where it can be inspected by the members of the public, and be posted on the company’s publicly accessible website, if one exists. Again, that’s accountability: ensuring that the public and the shareholders are aware of what the benefits are of this company.
Again, to fit the facilitated purpose of the Business Corporations Act, the benefit company selects the third-party standard through which it will measure its performance in achieving its public benefits commitments. The annual benefit report must specify which third-party standard was chosen and the process and the rationale for its selection or replacement. Another safeguard built in: the bill gives the government the power to specify, by regulation, minimum requirements of a third-party standard.
These amendments allow an existing company to become a benefit company by altering its notices of articles to include a benefit statement and setting out the nature of the company. This has to be done through a special resolution, which generally means about two-thirds of the shareholder votes in favour. Similarly, going the other way, a benefit company can cease to be one by removing the benefit statement through a special resolution.
Lastly, as a conversion to or from a benefit company, there’s a fundamental change to a company. Minority shareholders who disagree are given a right to dissent. This protects their interests by requiring the company to repurchase any shares of a dissenting shareholder for fair market value upon conversion to or from a benefit company — again, providing that support for the shareholders to ensure that they have all the information they need to make that judgment, to make that decision and then an ability, as I said, to have their shares repurchased for fair market value.
I’m pleased to speak in support of this bill to provide British Columbians with a new corporate structure with goals to benefit the public through which they can conduct their business. And in response to the opposition speaker, I would certainly hope that this is just the first of many opportunities to see the kind of cooperation and shared goals on behalf of the public interests that we see come forward in this Legislature.
S. Chandra Herbert: I hadn’t planned to speak on this bill, but I just wanted to, certainly, thank the Leader of the Third Party, the member for Oak Bay–Gordon Head, for bringing it forward and to congratulate the government on working with him to see this legislation brought forward.
As members will know, I have long brought forward private members’ bills myself in this House. Under the former government, we never had a chance of having any of them debated or brought up for discussion, so it makes me happy to see that a bill like this has come forward in this way. I know the member has worked very hard to prove the case for it, to make the arguments, to ensure everyone understood why legislation to support these benefit corporations should support a different form of business with a social and an environmental conscience.
Congratulations to all for working together to do this. I’m happy to hear it and happy to see it, and I hope we have more opportunities in the future for all MLAs, indeed, to get a greater chance to have their voices and their passions heard through legislation as we see here today.
Deputy Speaker: Seeing no further speakers, the member for Oak Bay–Gordon Head will close the debate.
A. Weaver: Thank you to the Minister of Jobs, Training and Technology, the Minister of Finance, the member for Vancouver–West End and the member for Vancouver-Langara for their thoughtful comments on this legislation. I look forward to the further deliberations at the committee stage.
A number of issues were raised, and I look forward to discussing them, by the member for Vancouver-Langara. In particular, he referred to the case law under BCE, which, I’m sure, we’ll explore further at committee stage. As I’ve emphasized earlier on in my introductory remarks, we know that Canadian directors are not bound by the shareholder primacy rule that exists in the U.S., and we understand that there is a different corporate law in Canada that means that directors may seek and go beyond the fiduciary requirement under a shareholder primacy rule that exists and that is enshrined in law. Even more so, we know that the federal government is actually bringing it into a bill that’s before the federal House. So I look forward to debating that further.
To the point that the member opposite raised with respect to private members’ bills, I think it’s important just to address it in the context of this bill. We did use, extensively, the access that we have been granted by government to legislative drafters. This ensured that the bill we brought forward and that is debated is one that meets the requirements set out to ensure it is consistent with, legally okay with, other existing B.C. acts.
I would encourage the member for Vancouver-Langara to encourage his colleagues to take advantage of the legislative drafters that we have been given access to, because it allows for us to actually ensure that the bill we’re debating actually has all the i’s and t’s dotted legally, in terms of how it fits into other law in British Columbia.
I look forward to the committee stage. I thank the members for their comments, and I look forward to further discussions.
With that, I move second reading of Bill M209.
Motion approved.
A. Weaver: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill M209, Business Corporations Amendment Act (No. 2), 2019, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. B. Ralston: I call second reading debate on Bill 18, Workers Compensation Amendment Act.
BILL 18 — WORKERS COMPENSATION
AMENDMENT ACT,
2019
Hon. H. Bains: I move that Bill 18 be read a second time now.
As Minister of Labour, it is my commitment and the commitment of this government to make British Columbia the safest workplace jurisdiction in Canada. It is also a prime concern of mine that those workers who put their own safety at risk to keep British Columbians and their properties safe be afforded the best possible protection under the Workers Compensation Act.
To facilitate workers compensation coverage for firefighters, the Workers Compensation Act and Firefighters’ Occupational Disease Regulation have been amended a number of times over the last 14 years to provide better and more expensive presumptive coverage for firefighters, including the mental health disorder presumptions that we added last year.
A presumption under the act provides that if a worker in a specified occupation develops certain diseases or disorders, those conditions are presumed to be due to the nature of the job. The worker is then eligible for benefits under the workers compensation system without requiring additional evidence of proof that their specific condition was caused by their job.
In 2005, the act first recognized certain cancers as occupational diseases that are presumed to be associated with long-term employment as a firefighter. This presumption recognizes that firefighters face exposure to toxic substances that, over the long term, can lead to serious illnesses. Additional cancers have been added since 2005.
In 2013, the Workers Compensation Act was amended to restore heart disease and heart injury in firefighters to the list of presumptive diseases recognized by WorkSafeBC.
In 2018, our government further amended the act to add a new mental health disorder presumption for firefighters as well as police officers, ambulance paramedics, sheriffs and correctional officers. This presumption recognizes that firefighters, along with these other first responders, are often exposed to traumas in their work that can result in post-traumatic stress disorder — PTSD, as we call it — and other serious mental health disorders. These existing presumptions provide valuable support for many of British Columbia’s firefighters if they have the misfortune of developing one of the recognized cancers, heart disease or heart injury, or a mental health disorder resulting from a traumatic event experienced in the course of their work as a firefighter.
As I indicated, these presumptions facilitate the firefighters’ access to workers compensation benefits.
All of the existing presumptions are available to paid and volunteer firefighters working for British Columbia municipalities and other local government bodies, and to firefighters employed by the federal government and Department of National Defence based in the province. However, there are gaps in the existing presumptive coverage for firefighters specifically. The cancer, heart and mental health disorder presumptions do not apply to fire investigators, and wildfire fighters and firefighters employed by the First Nations and other Indigenous organizations are not captured by the cancer and mental health disorder presumptions.
The purpose of Bill 18 is to address that gap. For the cancer, heart and mental health disorder presumptions, the Workers Compensation Act currently defines a firefighter to be a member of a fire brigade who is assigned primarily to fire suppression duties. Because fire investigators are not primarily assigned to fire suppression, they’re not eligible for any of those three presumptions.
Fire investigators investigate the cause, origin and circumstances of a fire. Their duties require them to work at the scene of a fire, often while it is still in progress or smouldering, and to sift through ash and other fire debris. In performing this work, they may be exposed to the same toxic smoke, airborne particulates and carcinogens that firefighters are potentially exposed to and, by extension, the same cancer and heart disease risks as firefighters. As well, they may be exposed to dead bodies, burn victims and other horrific scenes, the same potentially traumatic events that firefighters encounter.
Because fire investigators can face similar risks as firefighters, Bill 18 will amend the definition of “firefighter” in the Workers Compensation Act to include members of a fire brigade, who, in addition to fire suppression duties, may also be primarily assigned to investigate the cause, origin or circumstances of a fire or to a combination of fire suppression and fire investigation duties.
This approach recognizes that individuals may perform fire suppression or fire investigation duties at different points in their career as a firefighter — or may even perform both roles as part of the same job — and that they face similar risks at a fire scene regardless of their role. There are precedents in other jurisdictions — Ontario, for example — for including fire investigators in these presumptions.
With respect to wildfire fighters, they were excluded from the cancer presumptions first established in 2005 on the understanding that forest firefighters do not entail the same cancer risk as urban firefighters and on the basis that other Canadian jurisdictions generally do not provide cancer presumption for wildfire fighters.
However, it is now clear that wildfire fighters are exposed to toxic and carcinogenic components of smoke from burning forest and from the increasing number of wildland-urban interface fires that also involve burning houses, other buildings, vehicles, garbage dumps, railways and other infrastructure.
What’s more, as with the work of other firefighters currently covered by the mental disorder presumptions, wildfire fighters perform emergency response duties that can involve exposure to traumatic events in the course of their work.
Wildfire fighters risk their lives to protect the lives and property of British Columbians, our infrastructure and our natural resources. Their important contributions should be recognized in the same way as local government and federal firefighters by extending the cancer and mental health disorder presumptions to them. Bill 18 does that.
To achieve this, last year Bill 9 removed wording from the Workers Compensation Act that explicitly excluded wildfire fighters from the cancer presumptions and established a new definition of firefighter that is broad enough to capture wildfire fighters in the mental disorder presumption.
Regarding firefighters working for First Nations and other Indigenous organizations, these firefighters are currently eligible for the heart disease and heart injury presumptions. There is, however, a gap with the other presumption. Specifically, firefighters employed by a fire department operated directly by a First Nations band council or other Indigenous organizations may not be covered by the cancer and mental disorder presumptions. There is no policy rationale for this coverage gap.
The broad definition of firefighter proposed in Bill 18 will ensure that the paid and volunteer firefighters working directly for First Nations band councils and other Indigenous organizations will have the benefit of the workers compensation presumptions on the same basis as other firefighters.
Like firefighters who are currently provided these presumptions, fire investigators, wildfire firefighters and firefighters working for the Indigenous organizations put themselves in the path of danger when others run from it. They save lives, but they also perform work that is physically dangerous, see lives lost and sometimes suffer physical and mental health consequences from the important work they do.
Bill 18 is an important act because it will ensure that the firefighters in British Columbia are treated equally when it comes to the workers compensation presumptions. As government, we must do our part to protect and support these brave men and women. I ask all members of this Legislative Assembly to support this important legislative initiative. I look forward to the debate on this bill.
J. Martin: It’s good to be back here after the break, and I’m looking forward to the next four or five weeks of engagement in this House.
I would like to just say, right off the bat, that I’m here to share the official opposition’s support of Bill 18, the Workers Compensation Amendment Act, and agree with everything that the minister has just so thoughtfully and eloquently put forward.
I’m sure everyone in this House, on both sides of the aisle, recognizes that certain occupations and careers bring with them unique health risks to individuals. I can tell you that when I started studying criminology back in the early ’80s, and even when I went to grad school, there wasn’t a mention of PTSD in a single textbook regarding law enforcement officers. It was completely unchartered territory. There was no mention of it. There was no discussion or consideration of it, so we’ve certainly progressed immensely in the last several decades on this very important and critical subject matter.
The women and the men that take on the challenge and the unpreparedness of this risk-filled work, as firefighters and in other occupations, to keep the neighbours and communities safe, deserve every protection that this House can afford them.
For some, obviously, it is a full-time job. For others, it’s a voluntary dedication of their time. For many of these volunteers, their tenure lasts for decades. I know a person I graduated with in high school, in 1976, who’s still a volunteer firefighter to this very day and has been through maybe six or seven different communities that he’s lived in. Certainly, it’s more than a short commitment in local community volunteerism. It’s something much, much more than that.
There’s always going to be more work that can be done to reduce the risks for the men and women that go into fields such as this. We have to be realistic. We cannot reduce all of the risks. We cannot eliminate all of the risks. Risks will always come with the nature of these types of positions. This is where the presumption that certain diseases are directly related to the firefighting careers comes in and where we need to be responsive.
The legislation that the minister has brought in builds on the changes that were made when my side of the House was in government, in the previous administration. The province first recognized certain cancers as occupational diseases for firefighters back in 2005. This included brain, bladder, lung, testicular cancers, among others. It’s very heartwarming that the present government is continuing with further recognition of some of the hazards of certain occupations in British Columbia.
When we recognized that we needed to do something in that regard, back in 2012, our government passed legislation recognizing that mental health impacts can also be work related. So it was a very massive leap and defied conventional wisdom that all of a sudden we’re moving from the recognition — the long overdue recognition — of physical ailments associated with the nature of the job to mental health issues. That is one that I’m sure many people never saw coming. In that recognition, we made sure that workers compensation coverage was included for mental disorders, including PTSD but many others as well.
Then in 2014, the government of the day delivered on a commitment to restore heart disease and heart injury as a workers compensation presumption specifically for firefighters. More recently, in 2017, the government added breast cancer, prostate cancer and other occupational diseases for firefighters. So again, we have seen this as a cumulative growth in recognizing the realities and the hazards of certain occupations.
Now here we are in 2019, and the legislation in front of us, Bill 18, expands the cancer, heart disease and mental health disorder presumptions to include wildfire, Indigenous firefighters and fire investigators. So we’re broadening the net. We’re recognizing that this might not be as limited and as specific a situation as was previously thought.
I do welcome, and my colleagues and the member of the official opposition welcome, this legislation from the hon. Minister of Labour. It’s a welcome step in ensuring that those who put their lives and their health at risk protecting others, protecting their communities, protecting their neighbourhoods get all the protection possible under our workers compensation system.
We look forward to helping ensure the changes in this legislation become law. I have no doubt that it is not going to stop. We will be revisiting this issue, and both sides of the House will be doing everything in their purview to ensure that everybody is treated fairly, that we recognize certain occupations come with certain hazards and that those people will not be left behind.
Thank you so much for the opportunity to speak to Bill 18.
A. Weaver: It gives me great pleasure to rise and speak in support of Bill 18, Workers Compensation Amendment Act. While this bill is relatively without controversy, the lead-up to the implementation of the bill is not. I’ll come to that in a minute.
The bill before us expands presumptive conditions for forest fire fighters, Indigenous firefighters and fire inspectors, allowing them to more easily claim coverage for work-related illnesses like cancer, heart disease and mental health disorders that, already, a traditional municipal firefighter would be eligible for.
This was really an oversight in definition. I understand the rationale for bringing forward the amendments that we’re discussing and debating today, and of course, I support those amendments. The groups were previously exempt from the ability to claim presumptive clause for the listed illnesses for no other reason than oversight, frankly. The bill expands coverage by changing the definition of firefighter to include a person whose main job is to investigate or to suppress fires.
To put some context into this bill, let’s go back to 2017. As the member opposite for Chilliwack articulated, the B.C. Liberal government added presumptions for breast cancer, prostate cancer and multiple myeloma as occupational diseases for firefighters. This was back in 2017. This added onto several other diseases that fell under presumptive clauses for firefighters. However, forest fire fighters were not included in the definition of firefighter and did not receive the presumption.
Now, one might suggest or say that in fact fires in, say, a city, where you might have a chemical plant or a Home Depot, might be slightly more dangerous than forest fires, which are just traditional wood, etc. However, a carcinogen is a carcinogen, and the forest fires in rural areas are going far beyond rural areas these days.
We only need talk about the citizens of some of our rural B.C. communities and what they’ve had to deal with in the last few summers — and sadly, I suspect this summer, as well, in light of the fact that the seasonal forecasts are for much above-normal temperatures and drier-than-normal conditions in British Columbia, both of which are setting the stage for yet another forest fire season. Let’s hope not, but sadly, it looks like that from the seasonal forecast.
In 2018, the NDP government introduced changes to the Workers Compensation Act that would designate PTSD and certain other mental disorders as presumptive conditions that are linked to specific kinds of jobs. The changes applied to firefighters, police officers, paramedics, sheriffs and correctional officers. It did not include forest fire fighters or, more importantly, nurses, dispatch operators, teachers and others. Let me say why that was unacceptable in my view.
We know that there are traditional jobs that are male-dominated jobs: police officers, firefighters — strong lobbyists who come here and meet with us year after year, and they’ve been very effective at lobbying. However, jobs like nursing, teaching, 911 responders — which traditionally or historically have larger numbers of females — have not had the same success in having their working conditions dealt with through changes in law. To me, that’s unconscionable in 2019 that we still consider professions that are predominantly male-dominated as preferential in terms of the offering of amendments or support in legislation than those that are traditionally female.
Unacceptable. In fact, I conveyed as much to the deputy minister of the minister’s file over the last several weeks, suggesting to him that we may not support this bill if the government did not fix the error from the previous bill. And they did. For that, I am very, very grateful. On April 16 of this year, an order-in-council was signed that extended the mental health disorder presumptive clause to “emergency response dispatchers,” which means a worker whose duties include one or both of the following: dispatching ambulance services, firefighters or police officers, receiving emergency calls, etc. It also included health care assistant and included the term “nurse.”
Now, this is really important, because when we talk about workplace trauma, particularly with the issue of mental health disorders, I frankly see very little difference between a first responder who happens to be a nurse in pediatric intensive care watching a child go through the trauma that it’s going through, than, say, perhaps a police officer who sees the same thing in the street. These are traumas.
I go to the teaching profession, and I look at the number of teachers. I know we have very high dropouts in the first five years of teachers because of the overbearing stress that new teachers are put into, the conditions, where they’re not given the support. And if they don’t have support of administrators or administration, this can lead to mental health disorders. Even today, the teacher has to go forward and actually argue that it is caused by work as opposed to have it presumed to be caused by work, if they have the appropriate designation from a professional, and workers compensation could still do that.
I understand the importance of this bill. I understand the importance of fixing the errors that were created, but we must not forget that the errors that were created are not just in the context of the historical context of this bill but are in the historical context of society more generally. We often fixate on errors in a piece of paper, but there are systemic errors in our society that we need to address.
This bill, while going a small way to fixing the errors in the previous bill, and the order-in-council going a longer way to actually bring into the fold nurses, emergency responders, health care assistants…. I still think that in the province of British Columbia, we have an awful long way to go to ensure that labour laws, workers laws, employment standards are actually the same for women and men.
They may be the same for women and men who are forest fire fighters. They may be the same for women and men who are police officers. But where they’re not the same is in historically male-dominated professions compared to female-dominated professions. That’s a problem, and that problem has yet to be addressed in its entirety here in the province of British Columbia.
In April 2019, the NDP government introduced legislation, this bill, that expands cancer, heart disease and mental health disorder presumptions to include wildfire and Indigenous firefighters as well as fire investigators who deal with the aftermath of often traumatic fires. I have no problem with the extension there. I have no problem with the correction of the error that occurred in the previous bill.
Through regulation, as I said, nurses, emergency dispatchers and health care assistants were added. That’s also to be lauded, but as I said, there’s been no change or movement towards changes in teachers.
Social workers are yet another example of a profession that historically has been dominated by women. We don’t have the squeaky wheels coming into the Legislature lobbying us daily, so nothing gets done. But as legislators, it behooves us to think beyond what is lobbied and think about broader societal change that needs to occur.
I’ve said in the past that what’s wrong with this legislation is we’re not talking about teachers in this province, teachers who work in environments of bullying and harassment with unsupportive administrators, who struggle and take leave but are not covered by the WCB because they have to prove that their mental illness or disorder directly came from their workplace. Imagine that. Working in an environment, an abusive environment, one where going to work each day requires you to build up the courage to get out of bed, to show your face in that class knowing that you have no support from your administrators, knowing that you have children who you’re seeing in conditions that you cannot control. You know what they’re going through when they go home. You know they may be coming from an abusive family. You know you have a duty to respond. But you know you feel frustrated by an inability to actually get a solution there.
That can lead to stress. That can lead to systemic stress that can lead to mental disorders. Now you have to start to recant this and prove it. It’s devastating for people. I hope that we can move forward as we go on.
Again, last October, this is what I said: “While I’m pleased that B.C. is extending protection for some workers, I’m concerned that others who suffer mental disorders on the job are being left out. In particular, I’m profoundly troubled that professions such as teaching and social work, professions that employ disproportionate numbers of women compared to men, are being left out.”
I’d suggest that, perhaps, a number of us in this Legislature should actually think a little beyond the immediate and start thinking about gender-based analysis with some of the legislation we’re bringing forward. Is the legislation we’re bringing forward to deal with this problem really creating other problems because it’s not dealing with systemic other issues, or is it just dealing with this one here? I think there’s some work that needs to be done.
There’s absolutely no question, as I said, in my mind that we need to have presumptive clauses in place for police, firefighters, correction officers and sheriffs. But there’s also no question in my mind that we need to include more workers. We need to include teachers. I’ve said it probably three or four times. Social workers. Even on construction sites, the Speaker, you yourself — or was it the minister? One of you were on a construction site. Was it construction site union leader? One of you two. I’m not sure. Perhaps it was the Speaker or perhaps….
Can you imagine if you’re on a construction site and you’re a crane operator. The crane falls over, and it’s your best friend. That crane operator falls over, and you’re the first responder there on the ground to scrape the person out of the crane cabin on the ground. Now you have to prove if you have PTSD from that result. You have to prove that that’s a direct consequence of your accident, as opposed to being presumed that it would be coming from that accident. I don’t see much difference there.
During the debate on the Workers Compensation Act last year, I moved to grant the presumptive clause for work to all workers. I actually didn’t get a chance to move the amendment because games were being played by members of the official opposition who, despite an agreement before lunch that they still had further questions to go, decided not to ask any questions after lunch and so shut down debate, which I thought was quite deplorable at the time. I still do. I would hope that we wouldn’t stoop to such levels as we move forward.
I like to think that we could at least bring ourselves to the standards already in place in Alberta or in Saskatchewan. These are provinces where all employees are covered. It’s likely that had my amendment gone forward, it would have been ruled out of order. Nevertheless, the point of doing it was trying to raise it to debate. Why is it we are picking winners and losers in society? Why don’t we recognize that mental illness is an issue that recanting and trying to prove, on the work-related side — that it’s because of your work — can actually be a very troubling process to go through.
We know the WCB, the Workers Compensation Board, can, at any time, challenge anything that is brought forward, but at least the presumptive clause is there. In fact, by actually requiring a presumptive clause for all workers, the premium that is based on your claims will ensure that bad-apple employers get their act together to start dealing with some of these issues, particularly in office work, where systemic bullying and harassment can lead to stress, anxiety, mental illness and mental disorders that are not dealt with by the institutions because they’re afraid to create waste. If they start seeing their WCB premiums go up, oh, boy, they’ll have to start dealing with it.
In 2018, the government did not include 911 dispatchers in their Workers Compensation Act. Again, I pleaded with the Minister of Labour, both in question period as well as in the third reading of the bill — the previous Workers Compensation Amendment Act — that they actually be included. I am pleased to see that they have been, through order-in-council.
I read a compelling testimony about a nurse who no longer practised because she couldn’t after the horror she experienced — she was in the audience there as I read her story — being a front-line nurse. Again, a traditional woman’s occupation that we have now included through order-in-council. But surely, as a province that claims to have progressive leadership, we should be taking a card from Alberta. Can you imagine thinking of Alberta as the progressive? Or Saskatchewan? These are the progressive examples of labour presumptive clauses that we’re seeking to bring to B.C. Saskatchewan and Alberta, for heaven’s sake. Surely, a progressive government here in B.C. could extend the presumptive clause beyond what it is now.
While, obviously, my second reading remarks have extended more broadly beyond the actual content of this bill which I speak in support of, I think it’s important to caveat our support in the broader context that we still have a lot of work to do. While this bill is a very fine step in the right direction for those workers it is affecting, there are so many other workers in our economy, so many others that I believe should be considered through an extension of those professions included.
I have no intention of not continuing for it. I intend to continue advocating for those workers to be treated with the same fairness as we treat our firefighters and our police officers. I agree that we need to look after the well-being of our firefighters and our police officers, but we also need to look after the well-being of our teachers, our social workers, our nurses — which we are, to some extent — and so many other professions that often go unrecognized because they’re not squeaky wheels. They’re not here en masse lobbying us, because they’re not organized. I think that’s a shame.
I and my colleagues, I’ll note in conclusion, will be supporting this legislation, clearly. We’ll continue to advocate, hoping we’ll extend the presumptive clause, moving forward, to other professions.
S. Malcolmson: This is just the day after the International Day of Mourning. In Nanaimo, as in dozens and dozens of ceremonies across the country, certainly across British Columbia, people stood together at noon — for us, it was downtown, right at the Bastion — with firefighters, with ferry workers, with representatives from BCGEU, with front-line paramedics, with forestry workers and their families, with commercial fishermen. People have the opportunity to stand at the microphone. It’s the Nanaimo, Duncan and District Labour Council that organizes us, bringing the blue poppy button to remember fallen workers, passing out roses. It’s a very intimate circle of our community where people tell the stories.
One young woman, a B.C. Ferry and Marine Workers Union representative, was telling the story that she is the first — and she hopes to carry this on — in three generations in her family not to lose a loved one on the jobsite at work.
We can never be complacent about our responsibilities. People come to the open mike and tell the story about who has been lost on the jobsite. Increasingly, the stories are not only physical trauma — people lost in the woods or drowned at sea. In Nanaimo, especially, we think of the hundreds of years of mining accidents.
We talk now, the stories we hear now, are about front-line workers who keep our communities safe taking their own lives because of PTSD, the trauma that they experienced on the job, and the cancers and occupational exposures that increasingly bring people down — workplace exposures and injuries that were invisible until decades later.
[J. Isaacs in the chair.]
We are standing today to do one more level of repairs. I raise my hands to the Labour Minister and his team for bringing this work forward, recognizing that the previous amendments for firefighters had not been adequate to capture the full range.
I do hear the comments from my colleague in the Green Party. There is more work to do. There’s no question.
This is something that we can do quickly, because we see people falling right now, whether it’s from PTSD or other mental disorders that result from the workplace or whether it’s cancers and heart disease. We need to be attending right now so that those families and ill people, where the evidence is so absolutely obvious, are not having to fight with paperwork when what they should be doing is fighting only for their own health or their own recovery.
This legislation, this amendment, Bill 18, amends the Workers Compensation Act to include firefighters that are wildfire firefighters; also, those working for Indigenous organizations — a lot of First Nations have their own firefighting teams; and also fire investigators. They will have the same recognition under legislation for cancers, heart disease, heart injury and mental disorders.
This is a request that came from the B.C. Professional Fire Fighters Association and the B.C. Government Employees Union, requesting that these presumptions from previous legislation be extended to make this work complete.
What a presumption means under the act is that if a worker in a specified occupation develops certain diseases or disorders, those conditions are presumed to have been due to the nature of the job. The worker is then eligible for benefits under the workers compensation system without requiring additional evidence or proof that their specific condition was caused by their job. These are cancers that are directly linked by, unfortunately, decades of experience — these occupational exposures.
In particular, we think — in my own community, I hear a lot about this — that the types of fires that are being fought increasingly are full of poisonous gases. No matter the best training, the best equipment, it is in many cases, unfortunately, almost impossible to avoid. If you are a firefighter for X number of years, then you may very well develop very specific cancers that don’t apply to other people.
So in this case, the extension for wildfire fighters…. They were not included in the full cancer coverage nor the mental disorder coverage, and Indigenous firefighters, the same. The previous legislation did not include them in cancer presumption nor mental disorders; and fire investigators, who again are exposed to the same toxins in the workplace that could affect either cancer or heart but as well may well be traumatized by what they see. Now, with this legislation, hoping that it does have the support of the whole House, that will make whole again just this group of firefighters.
There’s work to do in other areas. We are doing the work behind the scenes, and we’ll be bringing it forward. But this is a package that we can bring forward and that will make the life for families and those fighting fires easier. When they have the worst circumstances befall them, they, at least, will have the backing of Workers Compensation Board and of this Legislature.
I do want to just give a particular shout-out, though — because again, my colleagues in the Green Party have raised it — and salute Paul Smith from Nanaimo. He is a nurse who’s worked very hard, a very effective lobby, to remind us that, for some nurses, what they experience in the workplace is indeed PTSD. He has been heard. That cabinet, by order-in-council, has taken his advice and that of others is a compliment to his tenacity and his articulate approach as a spokesperson.
I want to give a special shout-out to Paul Smith from Nanaimo and the many, many other people that are doing this very brave and, in some cases, very dangerous work in our communities. It keeps us safe. It keeps us healthy. We’re grateful for their service.
I’m grateful for the work of this Legislature, both in the past and then right now, to make sure that these people that work to keep us safe have the very best protection, the protection that they deserve.
S. Gibson: It’s a privilege for me to rise here in this House on behalf of my constituents of the Abbotsford-Mission riding with regard to Bill 18, Workers Compensation Amendment Act.
I speak with some interest in this, particularly because of my experience as a city councillor in Abbotsford for a number of terms and my privilege to chair, for many years, the Abbotsford-Mission fire department when we had a joint fire department when we were two separate communities. I came to appreciate the challenges and stresses faced by our firefighters in particular. I was privileged to see the growth of that department to a significant service to the people of the community.
As we know, the communities of Abbotsford and Mission ultimately amalgamated, and they have a single fire department, which is doing very well under the leadership of Chief Don Beer. I want to acknowledge Don here today as an excellent leader of the fire department in our community.
This legislation is, I think, kind of a progression, really, from what was started by our government when we took an interest in this and realized that there was considerable empathy needed and understanding of the kinds of challenges faced by firefighters today. As we know, the tensions and, indeed, the health implications are significant.
Now, last spring government did expand the presumptive condition to include a number of occupations, related to mental health — police officers, paramedics, sheriffs, correctional officers and a number of urban firefighters. I might add anecdotally that a good friend of mine was a police officer and experienced an incredible amount of stress on the job. One particular issue where he arrived at a tragic crime and thought that he was going to be fine; however, he wasn’t. He became so stressed out to the point where he had post-traumatic stress disorder. It’s under that kind of overall file that we look today to firefighters.
This legislation, which we will be supporting in the official opposition, applies to both full-time firefighters and what we call paid on call. Throughout the valley, whether it’s in the township of Langley or in my community of Abbotsford and Mission, there are many paid on-call firefighters throughout the province. This legislation is timely indeed and covers these firefighters.
I might say that firefighting is not really just a job; it’s a calling. For all of us in our communities…. I look around this room. Whether it’s Vancouver or Oak Bay or in Surrey or in Parksville, wherever it might be, the firefighters that we have the opportunity to get to know…. We realize that it is indeed a calling, not just a job.
Unfortunately, there are risks that have come with the job, and some of these can’t be eliminated. It’s just a part of the work duties. But where there is a presumption that certain diseases are directly related to firefighting careers, that’s what we really want to address. I think the province has recognized certain cancers as occupational distresses for firefighters some years ago, and that included brain diseases; bladder, lung and testicular cancers, among others. Of course, the tragedy is that when these are diagnosed, in many instances — and this is what, really, the issue is today — they’re caused directly by the stresses of work.
In 2012, our government passed legislation recognizing that mental health impacts can be work-related. I think sometimes we can forget that somebody can appear very healthy and stable, performing well, but just below the surface, there are huge stresses and issues. As I mentioned earlier, my police buddy — who actually, subsequently, had to retire early — moved to the Okanagan, to Kelowna, and has a wonderful little business up there with his wife. We made sure that workers compensation coverage would include mental disorders like the ones that I’ve been commenting on.
In 2014, our government delivered on a commitment to restore heart disease and heart injury as a workers compensation presumption for firefighters. One thing we know about firefighters: they do stay in very good shape. I think most firefighters in my community are pretty healthy. The challenge, of course, is that there’s a lot of sedentary experience in the office, and suddenly there’s a challenge to solve a major issue in the community, fire or otherwise — ambulance-related duties as well, on which our first responders are out there. So you’ve got that kind of up and down, which obviously is not very healthy.
In 2017, our government added breast cancer, prostate cancer and multiple myeloma as occupational diseases for firefighters. We were keeping on top of that file. We were showing concern.
The legislation in front of us expands the cancer, heart disease and mental health disorder presumptions. The government of the day did that, and this government, I think, is sensitive to the issues that are being faced by so many of these folks that are out there on the front line.
This government added heart disease and mental health disorder presumptions, wildfire, Indigenous firefighters and fire investigators. That’s a part of the proposal moving ahead, and we welcome that, as do all members of the official opposition.
It’s a welcome step. And I think increasingly, with the challenges of firefighters — and others, frankly — the presumption is that there have been so many cases…. These roles in our society, folks that are needed — they’re the front line out there. They need understanding and legislation to protect them when, unfortunately, tragedy does strike and there are some diseases.
We look forward to helping keep these legislation changes to become law. The official opposition is encouraged by this. And again, on behalf of my constituents of Abbotsford-Mission, it’s a pleasure for me to rise and speak to this legislation. I’m sure there will be other remarks, as well, by colleagues.
B. Stewart: It gives me great pleasure to rise in the House on behalf of the constituents I represent, not only in Kelowna West but in British Columbia, that really look at this as something that is important and necessary. Of course, as my colleague from Abbotsford just mentioned, there is a series of these progressive improvements that have been made to protect professional firefighters in the risks that they face every day in terms of their work.
I can’t help but think about what the front-line firefighters were thinking. I know that there were literally hundreds and hundreds of firefighters in 2003 in the wildfire that ravaged Kelowna. Of course, we’ve seen it in my riding, in both the Glenrosa and Rose Valley fires and many others, and it continues to be a recurring theme where firefighters, whether volunteers or whether professional paid firefighters, are being subjected to all sorts of different risks that were never, perhaps, expected when they first originally took on the task of being a firefighter in their community.
As we found out, they stood their ground. They protected many homes. Frankly, it wasn’t until I arrived in this House about ten years ago…. I often tell the firefighters from my community that the professional firefighters do some of the best lobbying and making certain that we know about their issues.
Some of those issues are things that are not necessarily just about what they face in their day-to-day work, but it’s the elements of things that are coming into homes that they are unaware of. They’re faced with toxins that are inside homes, whether it’s furniture, mattresses and things. We try to eliminate those things by trying to develop thoughtful building codes to make certain that we protect people, not only the residents that own the home but the people that may end up subsequently having to fight something that happens. Of course, it continues to be a challenge, I think, for both the firefighting community and the building community to find what would be considered to be a non-toxic fire.
I can’t help but think about the great work that we have made on this file, if you want to call it great work. I say that we recognize…. Presumptive injuries are now being dealt with in the sense that you don’t have to necessarily go back and prove individually why you’ve ended up being sick.
I think about this. On March 4, we had the Fallen Firefighter Memorial. Capt. Troy Russell, from the city of West Kelowna’s fire department, was one of the ones recognized and, of course, leaves behind two young sons who are just getting started in their lives, a wife and family. The bottom line is that that’s not the way that I think starting a career should end.
So I think that one of the things that we’re really looking at is: how do we do better? What is it that we need to do? I mentioned some of the things in the building code and things like that. I do think that the labour code is one aspect. But when it comes to the built environment, what can we do better in terms of trying to make certain that we reduce the risk through pre-planned activities, whether it’s the equipment or scientific evidence that would protect these individual firefighters?
I know that when it comes to mental disorders, etc., there is some suggestion about investing in training as well as during their career to make certain that there’s that opportunity of being able to reach out and not feel that…. It’s that checking in. It’s not just good enough that they’ve become certified to become a firefighter. The fact is that they face these stresses that grow and accumulate.
The fact is that there is more work that needs to be done on that matter to be preventative so that we don’t end up with families like Troy Russell’s that are without their father because of that fact that something…. In Troy’s case, it wasn’t a mental illness. He was one of those people that everybody loved to work with. It was unfortunate that he had another work-related illness that was unfortunate for him and took his life.
So what I really do think that we need to be doing is that although we’re embracing and kind of adding on to that in Bill 18…. And we do support it, as we have throughout the last number of years that we were in government. I know that this government has brought forward changes that were accepted and adopted this year, and this would be a further amendment.
The legislation before us today builds on the changes that were made when I first was supportive of the party that I was a member of and continue to be a member of. In 2005, we added occupational diseases for firefighters. In 2012, our government passed legislation recognizing mental health impacts that can be work-related. As well, in that recognition, we made certain that workers compensation coverage was able to include mental disorders and PTSD.
In 2014, our government also delivered on a commitment to restore heart disease and heart injury as a workers compensation presumption for firefighters. In 2017, our government added breast cancer, prostate cancer and multiple myeloma as occupational diseases for firefighters.
This legislation in front of us expands that to a broader group of people that are in the same occupation. However, their occupation is not necessarily working for the city of West Kelowna or other communities across this province. These are people that are out working on wildfires. We only have to look back at the last two or three years, the last couple of decades, at the wildfire activities in communities. We are having to invest a lot in it, and we need to do better.
I know that the minister responsible for forests has a budget to increase fireproofing of communities. We need to make certain that we are doing that. These things are not necessarily preventable, but we need to try to take down the risk, and that’s a positive investment. More importantly, B.C. wildfire fighters are going to be covered by this new legislation for all of this new presumptive protection that’s provided to regular firefighters.
Of course, last year during the multitude of fires that we had in the Penticton riding…. We had the rebirth of the Squally Point fire in Okanagan Mountain Park. I met with these firefighters, along with the former Forests Minister and the incident commanders. I’m looking at these people who have been out there fighting in 40-degree heat, even hotter than that when you’re actually on the fire lines. Squally Point is without any trees; no shade or anything. They’re working in unbelievably tough conditions, coming back just to get cleaned up enough to have a meal. Frankly, I can only imagine what they’ve been inhaling throughout the day, trying to slow this down and protect property.
I’m glad that we’re including the professional wildfire fighters. We’re also including Indigenous firefighters. There’s also a detachment or a group of them that work with the B.C. Wildfire Service. They deserve the same protection. They are a separate group, and I’m glad to see that they’re being recognized in this. I’ll be much happier when, hopefully, I don’t have to attend an incident commander briefing in my riding again, but if it does happen, I look forward to being able to speak to them and talk about these additions — not that they’re looking for these types of problems.
As well, the fire investigators. How many of them go into an incident after something has happened? You know, maybe it’s out, but there’s a lot of this residual residue that they can’t protect themselves against or they don’t even know what it is. They’re looking through the debris to try to identify what the cause is of a particular incident and to make certain…. I mean, what if it happens to be an illegal grow op or a methamphetamine production? These are the things that these people are being faced with. Who knows what the problems are or the risks that they’re facing?
I’m proud of the fact that we’re supporting this legislation and the fact that we have a long history and track record working with professional firefighters. I’m so glad that the minister and the government have seen their way to adding on these other groups, because I think that the reality is that there is a cost to this, and British Columbians will have to deal with that. What we need to do is try and do better beforehand and be preventative.
I’m proud to have been able to speak to this. I look forward to this bill coming to committee stage.
Deputy Speaker: Seeing no other speakers, the Minister of Finance shall close debate.
Hon. C. James: On behalf of the Minister of Labour, I want to thank the members who have spoken to this bill. It’s very clear that there is strong agreement and strong support for moving in this direction. I think, as the minister said in the opening remarks, this really is a critical act. It’s a critical act because it ensures that firefighters in our province will be treated equally when it comes to workers compensation presumptions.
We all know how important it is. I often say about firefighters that they’re the people that you always want there and you hope you never see. We all rely on them, and we know that they put themselves in incredible danger, the men and women who work in this field. To have a bill come forward and to see the strong discussion on this bill, I think is a very good day in the Legislature and a good move together.
With that, I now move second reading of Bill 18.
Motion approved.
Hon. C. James: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 18, Workers Compensation Amendment Act, 2019, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. C. James: I will call second reading of Bill 28.
Could I call just a five-minute recess while we ensure the minister is present?
Deputy Speaker: Certainly. Five-minute recess, please.
The House recessed from 4:55 p.m. to 5 p.m.
[J. Isaacs in the chair.]
BILL 28 — ZERO-EMISSION
VEHICLES
ACT
Hon. M. Mungall: I move that Bill 28 be read a second time now.
I’m pleased to present the Zero-Emission Vehicles Act. When I was thinking about what this bill does in terms of going forward into the future, and I’ll speak quite a bit about that, I’ll speak to specifically what it does. First, I just want to maybe offer a bit of a metaphor.
I’ll start with 2015, because a lot of us who grew up watching Michael J. Fox and Christopher Lloyd as Marty McFly and Doc Brown were very disappointed, in 2015, because there were no flying vehicles. They promised us in Back to the Future that we’d all be in flying vehicles, and they’d be powered by fusion. They also promised us a whole host of other things: shoes that did themselves up and jackets that sized themselves to you and all kinds of things. Hoverboards — people who love to skateboard were really looking forward to hoverboards. But they wouldn’t, of course, work over water.
Anyway, before I get too far down the rabbit hole of Back to the Future, the point is that back in the late ’80s, early ’90s, when science fiction writers were dreaming about what the future would look like in 2015 in terms of vehicles, they were a bit off the mark, to say the least. We don’t have flying vehicles. They aren’t powered by fusion. But the future of vehicles is starting to grow today, and that’s with zero-emission vehicles. With this legislation, we’re going to make zero-emission vehicles that much more available to British Columbians so that they can get into those cars of the future — not the cars that were promised to us by Marty McFly and Doc Brown, but very much the cars that are a real part of our future.
To help people do that, we have this legislation. What this legislation does, in a nutshell, is require automakers to meet zero-emission vehicle sales targets. That’s 10 percent by 2025, 30 percent by 2030 and 100 percent by 2040. That means all light-duty vehicles sold by 2040 — all new ones — have to be zero-emission vehicles in British Columbia.
Now, we’re not the only jurisdiction adopting this kind of mandate. In fact, this very same mandate has been adopted in Quebec, California and nine other U.S. states, so a total of 30 percent of North America’s car market is actually covered by zero-emission vehicle mandate. I also understand that China very, very recently has adopted a zero-emission vehicle mandate, and more jurisdictions are getting on board with this. The reason is that we want to make zero-emission vehicles more available to the various people that we represent in each jurisdiction.
How we do that — how we trigger the market, and how we communicate that to manufacturers — is we create this type of mandate so that it’s in law and so that we actually have an accountability mechanism to get to the point where we want to get to. It’s not just because zero-emission vehicles are cool and really peppy and are actually able to meet the driving needs of today, whether you’re in an urban area or, as where I live, in a rural area.
A lot of people in rural B.C. still have a lot of concerns on whether zero-emission vehicles will work in winter weather, and will work in not just winter weather in terms of temperature but also the type of snow that we get. In my area, where I live, we can have a day where we’ll have three feet of snow fall in one day, so how will a zero-emission vehicle operate in that type of weather? Well, I have to say I’ve done the test drives, and many others have done test drives, and these vehicles work fantastic in urban settings as well as rural settings.
How do we make sure that they’re going to be available to us? Right now, for example, only 40 percent of B.C. car dealers have zero-emission vehicles on their lots. That means a lot of us in rural areas don’t even have that. We want to trigger the market through an accountability mechanism, that being legislation. We are putting forward this zero-emission-vehicle mandate today, and I’m very pleased to be doing so.
A lot of people wonder: “Well, is it even possible to achieve 10 percent sales by 2025? Will it actually be possible for 10 percent of new vehicles to sold by 2025 to be zero-emission vehicles?” Well, I think what’s really interesting is that right now in British Columbia, there are 17,000 ZEVs on the road. In 2018, 4 percent of new car sales were zero-emission vehicles. B.C. clearly has the demand. In fact, B.C. has the highest demand in the entire country for zero-emission vehicles. We are definitely lining up for these types of cars and trucks.
But the supply is not necessarily meeting the demand. Again, going back to how we do that, these types of mandates are exactly how we do that. We work with manufacturers to make sure that these vehicles are available and that we have these benchmarks so that we can ultimately get to 100 percent of new car sales being zero-emission vehicles.
One thing that attracts a lot of people to buying these types of cars is the savings. They can be more expensive upfront. I’m going to come back and talk about how we’re going to help people with that. But the savings that people can achieve every year are about 75 percent on their fuel and maintenance costs compared to an internal combustion engine. Some people have come up to me, and they are concerned that maintenance costs for a ZEV will be higher because they’re so new. Actually, what a lot of ZEV owners are finding, and I’m sure we’re going to be hearing from other members in the House who are ZEV owners, is that actually, their maintenance costs are lower. Of course, fuel costs are lower. What people are saving on average each year…. I said it’s 75 percent, so that works out to be about $1,500 per year.
B.C. Hydro predicts that there will be at least 300,000 fully electric cars on our roads by 2030. Looking at the current demand and the current uptake that exists in British Columbia, and forecasting that forward and forecasting how that will actually impact our electrical grid, our load, we’re forecasting 300,000 electric vehicles, specifically, to be on the road by 2030.
I think that what I’m pointing out in all of this is that if the question is, “Is it even achievable to meet these sales targets?” what the numbers are showing us is absolutely, yes. This is achievable. In fact, when I talk to some of the manufacturers myself, they anticipate the demand being so high and ramping up so quickly that they’ll have no problem meeting the 2040 target date of 100 percent new light-duty car sales being zero-emission vehicles.
I mentioned that people see savings in terms of fuel and maintenance. But, of course, the price point for buying a new zero-emission vehicle can be higher than an internal combustion engine, and that can actually be a barrier. So this legislation is actually part of our CleanBC plan to cut climate pollution and boost the economy and make life better for British Columbians.
We’ve said that we’re investing $902 million over the next three years into our CleanBC plan. Part of that is actually incentives, rebates to help people buy zero-emission vehicles. Those rebates include up to $5,000 for a new battery, electric or plug-in hybrid vehicle and up to $6,000 for a hydrogen fuel cell vehicle.
We also have rebates and incentives for people to put in charging stations in public as well as in private venues. For example, if you live in a large condo strata, there are incentives to actually put in some electric charging stations into your strata.
What we’re trying to do is to help people with the price point in terms of adopting these types of vehicles, because we recognize that they are pricier now. But if more people buy them, we increase the demand, and that brings the price down for everybody. Of course, we want to get to those overall sales targets that are very much part of this legislation.
Another one of the barriers that exists for people adopting zero-emission vehicles is not just availability, not just price point, but it’s also: “Can I charge up? I know that there’s going to be a gas station 75 kilometres down the highway when I’m on this long, dark road. But is there going to be a charging station?” Well, I think that what a lot of people don’t know right now is that you can go from the Alberta border all the way to Tofino without losing a charge because there are enough charging stations along the way. That’s because the infrastructure for charging stations is being built out as we speak. There are already over 1,000 charging stations around the province, and that number is just growing.
As I mentioned with, for example, condo strata, more condo strata are putting charging stations into their complexes, into their buildings, because the demand of the residents is so high, and it’s increasing. So with over 1,000 charging stations that already exist, that’s growing and growing and growing and expected to grow by leaps and bounds over the next few years.
Some of the things I’d like to point out that show the support and the demand for this type of bill are that not only does it fill a key commitment made in our CleanBC plan to implement a zero-emission vehicle standard and mandate that every new car sold in B.C. is a zero-emission vehicle in just over 20 years, but British Columbians want greater access to more numbers and types of zero-emission vehicles, and they want it at a more affordable price.
Only 40 percent of dealerships, as I pointed out, have zero-emission vehicles on their lot, and there are also a limited number of models to choose from. So we need to trigger the market to respond to that demand so that we have the supply to meet that demand. And as Clean Energy Canada has pointed out, that’s exactly what this bill will do.
They have said: “British Columbians are excited about electric cars and the chance to cut both their fuel costs and pollution. It’s a win-win for commuters. But British Columbians have had a tough time finding electric cars on dealership lots and often have had to go on long waiting lists.”
I’m going to just interrupt the quote right there. I had an open house about six weeks ago in Kaslo, a village up at the north end of Kootenay Lake. They were telling me about the efforts that this individual had to make just to get a zero-emission vehicle in terms of the travel down to the Lower Mainland and then to get on a waiting list and then travel back down to the Lower Mainland and so on and so forth. If they could have just gone to Nelson, to one of the Nelson dealerships in the area, that would have been much easier. So we want to get more of these cars onto lots all throughout British Columbia.
I’ll return to what Clean Energy Canada said. They said: “This legislation will help ensure supply keeps up with demand, making it easier for people to go electric while helping B.C. cut carbon pollution and combat climate change.”
So we’re going to be able to get more of those vehicles and make sure that the supply meets the demand. It also provides long-term certainty and consistency for vehicle manufacturers. They know what the expectation is. They know where British Columbians are going with the cars of the future and when we want to start adopting them. It’s a more achievable goal for them. It’s something that gives them some transparency and some certainty in terms of how they build out these products that they’re manufacturing.
I think that at the end of the day, it’s going to be something we can all be very proud of as British Columbians. We are going to be a leader in the clean energy vehicle sector, which contributes…. Already we are a leader, and we’re going to continue to be a leader. Already this sector is contributing $700 million per year to the province’s economy and includes 198 companies with 3,850 employees. Already this sector is contributing to B.C. So if we can create greater supply to meet that growing demand, it’s going to be an even greater contributor to our provincial economy, and that’s only a good thing.
One of the things our advisory council, who put together our CleanBC plan…. One of the things they said during their public consultation was that no other topic grabbed people’s attention more than zero-emission vehicles and clean transportation. They said that well over half the comments received were ideas and suggestions to make getting around cleaner, more convenient and more affordable. British Columbians told the advisory council that they want more zero-emission vehicles on the road and that timelines for phasing out gas-powered cars should be accelerated.
I think those who participated in our public consultation to develop our CleanBC plan will be very pleased to see this legislation finally come forward, because it’s delivering on exactly what they said they wanted to see. We know that in British Columbia, the primary source for our greenhouse gas emissions is our transportation sector. That we’re going to be able to reduce the greenhouse gas emissions associated with our transportation is going to be very positive and make our CleanBC plan even stronger.
One of the ways we are going to be specifically measuring how we are rolling out vehicles but also reducing our greenhouse gas emissions, because that’s a very important benefit from the zero-emission vehicle mandate, is by ensuring what are going to be called ZEV units. Other jurisdictions use this, because not all zero-emission vehicles have the exact same type of profile. For example, a plug-in hybrid is great for a rural area like mine where you can plug in overnight, say, and you can use that vehicle with electric-generated battery to go commute around town. I’ve got to go to the Co-op and do some grocery shopping. I’ve got to drive downhill. Downhill is fine for walking, but uphill is a whole other story. So I drive downhill. I get in my car. I use electric battery to go to the grocery store. I use electric battery to go back home.
Well, my family also likes to go camping, and we like to go to some of the Forest Service campsites that are quite a ways away from any gas station and certainly from any charging station. We would charge our car overnight. We would drive it out, and by the time we get to roughly around Meadow Creek, well, the charge might be lost. If we’re in a hybrid, it would flip over to an internal combustion engine, and we’re using gasoline at that point. We’re out in the back country, and we don’t have to worry. We’ll get home fine, and everything.
These types of vehicles are really great for rural areas, but they also have an internal combustion engine component. They still can produce GHG emissions. They don’t have the exact same type of profile as a fully electric car like a Chevy Volt, for example, or a Kia Soul.
How we’re going to be structuring it is that a fully electric vehicle like a Chevy Volt will receive a higher rating of ZEV units than a hybrid, because they will never generate GHGs, whereas the hybrid will. At the end of the year, there will be a tallying of all the ZEV units that manufacturers acquire. They have to meet a certain threshold in terms of their sales, and that will then allow them to proceed going forward into the next year. Otherwise, they would face a fine.
There is a mechanism for accountability within the legislation to make sure that manufacturers are selling a sufficient number of vehicles to meet the demand and to meet those targets. We measure that all with what are called ZEV units, which not only measure the sale of the cars but, ultimately, the GHG emissions that are going to be reduced as a result of these car sales.
I should mention that this type of approach with the ZEV units is…. The way in which they accumulate is not just through the sale of vehicles. That’ll be, obviously, the primary way. Vehicle manufacturers can accumulate ZEV units by selling zero-emission vehicles, acquiring them through trades with other automakers and taking actions to reduce emissions or increase the use of ZEVs in B.C., as well as purchase agreements. This provides flexibility as to how auto manufacturers can meet their targets.
I think this flexibility is really important. I’ll give you two examples why. One might be that car-sharing has gotten a lot more popular, particularly in the Lower Mainland. I know that while my husband was doing his program at St. Paul’s Hospital, he had a Mobi and a car2go membership, right? So he was doing the car-share thing.
Well, car manufacturers are seeing the popularity of car-sharing, and they’d like to get in on some of this with zero-emission vehicles. If they are running that car-sharing program, they’re not actually selling the zero-emission vehicles, but they’re putting more of them on to the road. So we want to have a mechanism that acknowledges that. That’s part of the flexibility in the way in which we’re going to be allowing them to acquire ZEV units.
Another situation might arise where, for example, maybe a car manufacturer…. Car manufacturer X designs a car, gives it a really nice name, and nobody likes it. That just happens sometimes. So they might find themselves…. They’ve done everything that they thought they needed to do, but for some reason, the market isn’t responding. They want to go back to the drawing board and redesign this vehicle for next year, but they don’t want to be docked for being out of compliance on that model year. This mechanism provides the flexibility to acknowledge these different types of circumstances.
So there are a variety of ways to accumulate the ZEV units. We’re doing this to ensure the sales but also to ensure emission reductions.
The mechanisms for enforcement and reporting. To aid in tracking and enforcement, the bill includes provisions for annual reporting and verification. It has administrative penalties and information-sharing. It also ensures accountability every year. Government will be publishing a public report on progress towards achieving our zero-emission vehicle mandate. So there’s that public eye that’s going to be on this every single year so that people know exactly where we’re at and so that we are actually going to be meeting our targets.
I am very, very pleased to have had the opportunity to work on the zero-emission vehicle mandate and to be bringing this forward today. It’s a great step into the future. It might not be the one that I thought would be the case after watching Back to the Future Part 2, but it is something that I’m very proud of.
I know that by the time we get to 100 percent of light-duty vehicles sold as zero-emission vehicles, my son will be 22 years old. I have no idea what everything in the future will be for him, but I know that with this type of mandate, there’ll be a cleaner and greener future in terms of B.C.’s transportation sector.
This is a very, very good step in bringing the cars of the future to today.
P. Milobar: It gives me pleasure to rise to Bill 28, the Zero-Emission Vehicles Act.
First off, I’d just like to say that…. Generally speaking, I think it’s safe to say we’re very supportive of people seeking out zero-emission vehicles and government programs to try to incentivize and get people into zero-emission vehicles. Certainly, under our former government, that’s when the whole CEV for B.C. program originated. It was good to see that those $5,000 subsidies and $6,000 for hydrogen vehicles continued on.
However, that said, there are always some concerns with new legislation when you take a first look. I was appreciative of the minister’s staff for providing a briefing to myself and several of my colleagues today so that we could get a bit of a background into the bill. Certainly, we’re going to be canvassing much heavier questions when we get to committee stage on this bill.
Overall, the general premise and the idea and the goal of this bill, I think, are supportable. The reality, though, is that there seems to be, as we’ve seen with other pieces of legislation — especially, frankly, around some environmental measures — a bit of rebranding or repackaging without a real true tangible end goal that will see what I think the general public thinks they’re going to see as an end result versus what will actually happen in reality.
The minister referenced CleanBC. CleanBC, for something as simple…. Well, it’s not simple but a fuel mix change that will be mandated under CleanBC, which will undoubtedly see an increased cost per litre at the pumps for the travelling public, given that one would assume that the oil and gas industry is not producing a product at a higher cost right now than they otherwise could with this other blend. So this new blend that will be mandated under CleanBC, which will add costs to everybody’s pump price per litre, will result in a four mega tonnes reduction by 2030, under CleanBC. That’s what their booklet says.
This program, by 2030, will only see a 1.3 reduction of mega tonnes. So it’s not even a third of what the fuel mixture will actually accomplish. Why I say that and why it’s important is because…. What we see with this bill is people still will have the ability, and I’ll touch on this in greater detail as I move along, to buy vehicles out of province and bring them in, combustion vehicles out of province. They will still have the ability to buy any used vehicle they choose. This legislation only deals with new cars and the mix of new cars that are being sold on a lot. They have to be brand new cars, not a year old, not the quick return vehicle. If it’s classified as a used car under the current system, that’s what will continue on moving forward.
That is problematic when you think of the overall economy of British Columbia. I know from personal experience, when I traded in one of my trucks at a dealership years ago…. The way the dollar was working, there were trucks from British Columbia getting loaded on larger trucks to get taken down. They were getting driven all the way down to Texas for resale. That’s what happens in the used-car market. Cars are very portable. They get loaded up on the haulers, and they get moved to the jurisdictions where they’re needed.
Right now British Columbia already has the oldest fleet of vehicles in the country. That means we have the least fuel-efficient car fleet in the country, as well, when you think of the age of a vehicle and all of the technology advances that we’ve seen in fuel efficiencies and GHG emissions coming out of a vehicle over the years. The older your fleet goes, the more problematic it is.
With this bill, essentially, we are creating an environment where if people want a brand-new vehicle, they need to take their business to another province and then drive back home. That’s not that hard to do. It’s not that hard, from the Lower Mainland, to hop on a plane, zip over to Calgary and land, pick up your vehicle and drive across the border. Yes, you have to register it in British Columbia, and you pay the provincial tax like you would when you bought it in British Columbia anyway, but you now have your brand-new gas vehicle to drive around in the province. When you’re talking about used vehicles, though, that opens up literally all of North America to start moving vehicles around and finding a market of people that would like to see that.
There are a couple of other points within this bill that I think we’re going to have to really drill into as we get into committee stage as well. A couple of them. “Light-duty” is defined as anything from a half-ton pickup and smaller. Now, going back a few years, back when they changed what a farm truck status was…. Originally, it was that it was a three-quarter-ton truck or higher, and you wouldn’t have to pay the luxury tax.
When they brought in the luxury tax, it was pointed out that a lot of one-tons were that price of a luxury vehicle, even though these were crew cabs for people working in the logging and mining industry to try to get their crews out to work and be able to haul a reasonable amount of equipment and Tidy Tanks of other fossil fuels in the back, to make sure they could actually get into the bush and work and get back out on the day and fuel their equipment.
[R. Chouhan in the chair.]
Those trucks were then finally deemed to be exempt from the luxury tax. What you have seen — and, certainly, I know in Kamloops what you see — is a lot of people driving a larger truck than they would necessarily need to avoid the luxury tax. The fuel economies are not that different when it comes to the larger trucks, but they have a bigger suspension. They can tow more. They’re a little bit costlier to maintain. But overall, people are willing. On balance, they would rather pay the dealership a little bit more for a slightly heavier-duty truck and feel that much more secure in it than pay extra tax to a government of any political stripe, because people don’t like paying taxes to government in general.
That’s what we’ve seen people do with the workaround. Well, with this bill, a half-ton truck or smaller is considered under this legislation.
Let’s fast-forward to full implementation of this and see how easy a workaround would be. If you’re in the oil and gas industry, you lease your fleet out of Alberta, or you buy your fleet out of Alberta, or you just buy three-quarter-ton pickups for your operation from that point forward. There has been zero done in the increasing of the number of electric vehicles when it comes to that.
When it comes to making sure that those vehicles from out of province are registered properly, as I say, that’s not a problem. However, they’re used, which means we will take what is already the oldest fleet in Canada and are now going to transfer it to be an even older fleet in Canada because this legislation does nothing to address that.
When the minister first started her comments today, she made a point of making sure she said “new” car sales, and at the end, the minister forgot to add in the “new.” That’s a very critical piece of this whole legislation.
I think the average person out there is either applauding this legislation and think it’s the greatest thing ever to hear that all vehicles will be electric by 2040, or they think it’s the craziest thing ever because there’s no way you’re going to have all electric vehicles by 2040. The reality is that this accomplishes neither.
All this does is says to the car manufacturers: “Your branded dealerships that are selling cars in British Columbia by 2040 have no other option than to sell an electric vehicle.” They have nothing that says they have to sell an electric vehicle as a used car on that same lot. They only have to report their new car sales, and that’s it.
I would suggest a lot of dealerships, given that a lot of their revenues are generated these days in the service departments, probably won’t mind selling a few extra used cars that are relatively new — coming out of lease returns from other provinces, that are gas combustion engines — to make sure that they can move forward and be profitable.
Again, overall, the sentiment of this bill, I think, is in the right direction. But the reality is that you don’t need this legislation to drive electric vehicle sales, as we have seen in British Columbia already. Unfortunately, this is a government that seems to feel that they need to be able to tell people how they should live, what size of house they should live in, whether or not they should be allowed to apply for home land use issues and a wide variety of things that government knows best.
The reality is that without an incentive program, sales dry up. In Ontario, as soon as the incentive program was removed, sales of electric vehicles stopped. The minister mentioned the CleanBC and the continuation of the incentive program. In British Columbia, from September 2017, when this government was brought in and they brought in their provisional budget, to the end of fiscal four weeks ago, there was $57 million put towards the incentive program. In CleanBC, there’s a one-year commitment, for this year only, of $42 million. The simple math would say that that incentive program will actually run out before the end of this year. There are no commitments for year 2 or 3 in this current budget book.
In fact, the concern I would have with this is that once a piece of legislation like this is enacted, there is nothing mandating the government to be a full partner in trying to get people into these cleaner vehicles, because by law, the manufacturers have no choice but to do it. So there does not have to be an incentive program moving forward, and in fact, we do not see an incentive program budgeted for in the government’s own budget documents over the next two years moving forward.
There is an underfunded program for this year, and this year only. That is a big concern moving forward because every jurisdiction…. Whether they have a piece of legislation like this or have no legislation at all, without a subsidization program moving forward, this will not succeed.
The government can say, oh, they were waiting to see what the federal government was going to do or not do. You cannot count on another level of government providing the funds on a consistent basis year over year over year to try to make this work.
The government will also say: “We’ve talked with the manufacturers, and they feel that the price point is going to be almost equal to other vehicles within the next couple of years.” Well, I don’t know which manufacturers they’re talking to, because the ones I’ve talked to certainly don’t feel that’s going to be the case. In fact, when they’re left with no other option but to try to sell these vehicles here if they want to be able to sell a new vehicle, they will see that they’ll actually be able to charge a premium for that because you won’t have an option as a purchaser going onto their lot at all.
As well, the manufacturers, as we’ve seen in other jurisdictions…. When you have a jurisdiction like California or Quebec, both of which have been doing this longer than us — California significantly longer than we’ve been doing it — and their 2025 target is the same as our 2025 target, I think this might be a bit of an overreach, to say the least.
The problem is that when you get into the detail of how these actually function and work, it really does get to be problematic, when you look at the lack of incentives, at the lack of charging infrastructure, at the lack of clear direction of where that infrastructure is going to come from. How we’re going to be able to power the grid properly with this, when you look at 4,000 hours of hydro needed just to run to 2030…. If you take that out to 2040, that actually means you need 12,000, because remember, we’re only at 30 percent at 2030 after all.
That’s not even the whole fleet of British Columbia. That’s just for new car sales. Imagine, if you will, if this is wildly successful and people stop buying those used combustion engine vehicles, where exactly is the electricity going to come from for our vehicles?
Another thing that people like to do is they like to buy these vehicles right now because of the absolute gridlock that they see, particularly heading to and from the North Shore or heading to and from the Massey Tunnel and the lack of replacement in those areas.
So what do a lot of people do if they can afford it? They’re buying an electric vehicle right now because they’re allowed in the HOV lane. It’s still a commute of one; it’s still a vehicle on the road. But they’re clogging up the HOV lanes now, with the electric vehicle slowing down the commutes for others as well and defeating the purpose of the HOV lane, which was actually to get more occupant vehicles on the road in terms of people sharing and carpooling and getting more people on the road.
What this will eventually do, with the gridlock we’re facing…. That just is, I think, a testament about how bad the gridlock through the Massey area is. Thankfully, the long-awaited improvements and long-constructed improvements on the North Shore are starting to get to near the end so that traffic, hopefully, will start to move a little bit better and flow as has been engineered.
Those are large-volume corridors where the commute has gotten so long for people that they have decided to go out and pay a premium for a vehicle so that they can drive a single-occupancy vehicle to and from their workplace in an HOV lane. That, and you also have the other phenomenon where businesses are now sending two people, paying a second person on a service call just so they can use an HOV lane. But I digress on that point.
The biggest piece to this whole bill though, Bill 28, again, is that we really do…. I know that I do support the efforts to try to get as many people into electric vehicles as possible. I have serious concerns around mandating a government-knows-best approach that says that although the market has been finding its way and developing infrastructure and developing a market for their product and innovating, the government is now going to jump in and say: “No, we know better than you, and we’re going to accelerate that.” We need to keep in mind that we are only a market of five million people.
I know that in the British Columbia context, that might seem like a really large area, but California, let’s remember, is larger than the whole economy of Canada. When California says, “No, we need these on our lot,” other jurisdictions that would otherwise have electric vehicles going to their jurisdictions are out of luck. The manufacturers…. There is a backlog in certain areas. It’s not because of the popularity in those areas. It’s because the allotment that the manufacturer has put through is going into the jurisdictions that have legislated it.
I guess if there is one silver lining — the fact that the government is taking the heavy hand of legislating where a manufacturer can or cannot sell a product within Canada…. The good side of that is we’ll be one of those jurisdictions where they’re forced to dump all their electric vehicles into, whether there is a purchaser for them or not, and create a shortage in the rest of the country as they try to keep their manufacturing numbers balanced.
It’s not as easy to say: “Well, just crank up your manufacturing.” They still have a business to run. They still need a viable customer for what they are producing, no different than if you were producing pounds of coffee or if you’re producing pounds of oranges or anything else. You can only produce what you have market for.
We need to make sure, through this legislation, that those types of things have been addressed and, unfortunately, they haven’t been addressed. There is no provision, as I said at the beginning, to stop people from owning a combustion vehicle. I’m fine with that. I’m quite happy that that’s the case, frankly. There is no provision stopping people from buying a combustion vehicle in Alberta and bringing it across the border, or Saskatchewan or Manitoba or anywhere else.
Interjection.
P. Milobar: Yeah, or Seattle. I know some on the other side have much better friendships down in the Washington state area than maybe some on this side do, but I don’t think the intention of this bill is to help prop up the new car sales in the Seattle area. But you never know, I guess.
The reality, in the context of CleanBC, is this is being bundled and marketed for, Mr. Speaker. There is a fuel mix piece within CleanBC that will achieve three times the reduction of GHGs than this bill will. All this bill will do is add red tape. It does nothing to significantly impact the GHG reduction targets within CleanBC. These are government documents with their government’s own numbers attached to them. There is no significant change.
Part of the reason of that is that newer cars keep getting more and more and more fuel efficient. In fact, the province of British Columbia, the Ministry of Environment, has changed the tonne per car that they use to calculate the emissions from a car. It used to be 4.7 tonnes per vehicle is what you would use to use as an illustrative purpose for how many cars of carbon you’ve taken off the road. Because cars are so fuel efficient now, that has been reduced to 2.8 tonnes per vehicle, a significant change to the calculations. When queried, the Minister of Environment confirmed that part of it is because cars are much more fuel efficient. They do not emit like they used to. The gains trying to convert the whole fleet over to electric are just simply not there.
The fact that this doesn’t even come close to converting the whole fleet I think speaks volumes to why, even at the 2030 target date on this, there will be three times the GHG reductions by the combustible fleet driving a different fuel mix than there will be from the people who have decided to implement the electric vehicle as a new car purchase. So to think that people will not be moving vehicles around this great country of ours to where there’s a market for them is just folly. To think that those vehicles won’t be older is folly. And to think those vehicles will not run at a higher tonnage emission rate…. You know, we know that to be the fact.
We know, based on all of these types of things, that in fact, this bill does nothing to truly impact and significantly help the overall GHG footprint of our province, let alone the unanswered questions we have around power supply, let alone the unanswered questions we have around bringing in power from other jurisdictions. The minister’s staff confirmed today in the briefing — as well, the Minister of Environment confirmed in estimates earlier today — that there is no mechanism to prevent the importation of power if needed in British Columbia from coal-fired plants or natural gas–fired plants in Alberta.
Here we have clean, green B.C. hydro power available to us, with an unknown quantity needed to try to fully implement this program, and the backstop to it is that people in downtown Vancouver or Victoria or Kamloops can feel very good getting about their daily business driving their electric vehicle while it’s powered up at night by a coal-fired plant in Alberta and while their neighbour is probably on the plane to Alberta to pick up the pickup truck and drive it back across the border the next day as well.
This bill seems to do a lot for the new car salesmen in Alberta. It seems to do a lot to make sure that we are probably going to have to be reliant on coal- and natural gas–fired electricity from Alberta. It definitely is a bill that seems to want to support our neighbours to the east. Probably, after the last two years, they’ll be appreciative of the fact that there might be some positives coming out of B.C. toward Alberta. But I don’t think that helps the British Columbia business person. It certainly doesn’t help the British Columbia environmental footprint. It certainly is something that will give us pause moving forward.
The last piece I’ll speak to on this bill, and again, dive into much more at committee stage…. It’s amazing to me, bill after bill after bill now, how much is left to regulation — how much this government is leaving to regulation after the fact, how many unknowns are out there.
Whenever there’s a question and a query by either industry or an affected party, it’s, “Don’t worry about it. We’ll figure it out in regulation. We’ll deal with it afterwards. We won’t deal with it in this chamber. We’ll do it with a quiet order-in-council and take care of it that way and implement things when the House isn’t in session. When, maybe, people aren’t paying great attention on the Friday of a long weekend, we’ll issue the press release,” and that will now be the way things are being implemented.
In this bill in particular, especially when you get into the complexities of trading credits around, when you get into the complexities of reporting and trying to figure out if a car is worth 0.6 of a credit or 0.2 or 1.6 or 4.1 and what that means, to leave it all to regulation when it already has more overlays in it than California or Quebec actually have, is a worry. Because there are things like credits. We touched on this again.
There is a lot of interconnectivity to the Environment estimates. We touched on that — where the public sector organizations have to pay $25 a tonne by law for carbon offsets to the provincial government, to the Ministry of Environment, to make sure that they stay carbon-neutral. So your schools, your hospitals and your universities are paying $25 a tonne by law to the government.
In fact, the government of the day did that. In fact, the current Environment Minister spoke very strongly, as a critic, about that policy. But that policy was confirmed to be still in place. It is not going anywhere. In fact, it is going to stay firm. Why that’s important is because the minister, with this bill…. The Minister of Finance, the Minister of Environment, while they were negotiating an LNG bill around our carbon footprint, made sure that LNG projects would be able to go out to a world market and purchase carbon credits at any price.
They can go out and buy $3 credits to receive a $20-a-tonne rebate back from the taxpayers of British Columbia while hospitals, while schools and universities — on a program that the government spoke out against it for many years stays in place — are paying $25 a tonne.
Why that ties into this bill is that there is a credit system in this bill too. If you’re selling more credits than you need to in the early years, before it gets to the 100 percent years, you can turn around to your neighboring dealer, your neighboring manufacturer, and work out a deal to transfer credits back and forth. But there is no cap to that price. There is no minimum purchase price to that. So it’s interesting that when it comes to free market, LNG can go out and price free market carbon credits at will to make their numbers work and get a $20- per-tonne rebate back from the taxpayers of British Columbia, but schools, hospitals and universities don’t get to have that free market.
Now with this…. On the one hand, let’s legislate and tell people exactly not only what you can sell. We’re going to tell the public what you can buy — that you can only buy this. But in the background, the free market will decide what the pricing of these credits going back and forth are. So there are a whole lot of holes in this that we need to get into in greater detail in committee stage.
On balance, as I say, the sentiment, I think, is there. Frankly, I think a lot of people are expecting that by 2040, there will be changes in this legislation anyway as time moves forward. But as a first step — as, I think, a signal to the market — it’s definitely something that we can understand. But it’s not something that…. When you really start to dig into the numbers, when you really start digging into the practicalities, and when you really start to see what its end-goal target is, a best-case scenario is one-third of the result of what a fuel mix change at a refinery will give us for our CleanBC goals. One would have to say that this is a massive under-reach for what it is actually going to accomplish.
I guess the bad pun of the day is that there are enough holes here that you could drive a truck through them, because that’s exactly what’s going to happen. The trucks will be flying off the lot. The 250s and the 350s will be flying off the lot. The 2500s, the 3500s — I don’t want to be just one brand over another — will be flying off the lot, because that’s the easiest workaround of all if you want new and stay in British Columbia.
If you want new, you can just go to Alberta, the government says, and take your business to Alberta. This is the bill from the government that is saying: “Folks, go take your new car sales business to Alberta, and then come on back over, and we’ll be happy to let you drive on our roads.”
All in all, the sentiment of trying to get more and more people into ZEVs is laudable. It’s one that I think we need to keep moving. We have our doubts around this, and we have serious concerns and questions about where the extra money for the subsidization programs are, given that there is an underfunding in this current year, let alone no money in the two years moving forward. That will be something we’ll be watching very closely as well.
I thank you for this time to speak on Bill 28 today.
Deputy Speaker: Member, could you move adjournment of debate, please?
P. Milobar moved adjournment of debate.
Motion approved.
Report and
Third Reading of Bills
BILL 25 — COASTAL FERRY
AMENDMENT ACT,
2019
Bill 25, Coastal Ferry Amendment Act, 2019, reported complete without amendment, read a third time and passed.
Hon. C. James: In the Douglas Fir Room, I call Committee of the Whole on Bill 4, Witness Security Act, and in this House, I call continued second reading on Bill 28, Zero-Emission Vehicles Act.
Second Reading of Bills
BILL 28 — ZERO-EMISSION
VEHICLES
ACT
(continued)
S. Malcolmson: I am pleased to stand in support of Bill 28 today, one of the concrete measures in the CleanBC program, North America’s most ambitious plan to cut climate-change-causing greenhouse gas emissions and also to build the new, renewable, sustainable jobs of the future, the high-tech, economy-sustaining jobs that our young people are hungering to be involved in. This is one of many measures being taken, one that puts the onus on automakers, not on the car dealers, to move towards 100 percent of their light-duty vehicle sales being all entirely electric or hydrogen battery.
This is by the year 2040. The legislation before us proposes a phased approach, starting with the first requirements in the year 2020, then moving to 10 percent of new light-duty vehicle sales by 2025, 30 percent by 2030 and 100 percent by 2040.
The previous speaker had a whole range of complaints that are hard to piece together. I know we’re going to get into that debate. For tonight, I want to say that the impact for British Columbia, particularly, is encouraging to see. We’ve got already, just north of my riding, in the town of Errington, north of Nanaimo, Canadian Electric Vehicles. It has been manufacturing electric trucks and Zambonis for 25 years. The work is already well established and already creating jobs in our region.
On Gabriola Island, when I was the island’s trustee, we were responsible for zoning. We had a requirement that new commercial development had to include electric car chargers in new developments. Now we have two different little malls with coffee shops where, indeed, people can charge their vehicles outside. It’s something now that draws people in. If they will search and are thinking of going to a restaurant or coffee shop that allows them to charge their car, that is a good thing. It’s something that business can attract more people with.
I was at a very compelling presentation with the chamber of commerce some years ago on Saltspring Island where John Stonier and the B.C. electric vehicle association were saying to B-and-B operators: “Look, it used to be that you would market yourselves saying, ‘We have Wi-Fi in our accommodation.’ Now if you market yourself saying, ‘We have electric vehicle charging capability,’ then that will bring in the network of travellers, especially people coming up the whole coast who are planning their holidays out based on which regions have sufficient electric vehicle charging stations.” That was at the time of the previous government when we didn’t have these kinds of supports.
Now to see, under the Environment Minister, a rapidly expanded network of roadside electric vehicle charging stations…. The city of Nanaimo and the regional district of Nanaimo have brought them in over the years. Just last weekend I was able to pull just off the Island Highway, built under the NDP government, at Buckley Bay where the Denman Island ferry takes off, to a four-lot charging station with high-speed chargers. Makes all the difference to be able to get from Nanaimo up to Courtenay.
The networks are expanding all the time. It becomes easier and easier for people, especially on Vancouver Island where we don’t have much access to natural gas. For the most part, we’re heating our homes with electricity. The one thing that we can do to lighten our personal climate change footprint is to not have fossil fuels in our tank but to be able to drive an electric vehicle.
I recognize it’s still very expensive to buy into them, even with the rebate and clunker turn-in programs. You can get up to $11,000 off a new vehicle if you use some of the provincial government programs. It’s still a financial barrier, but the price is coming down. Sales are increasing.
Four percent of new vehicle sales in British Columbia are electric vehicles already. To have that network expanding is a point of pride, and it’s one small piece of the broad climate strategy that this government is taking on.
I will just leave you with a story of my very favourite electric vehicle station, which my partner Howard and I visited. Abbotsford has a place called the EcoDairy, where they are generating electricity using waste from agricultural operations, particularly goats and geese and cows — generating power that you plug your car into. There are kids running around eating ice cream and people visiting the barns, patting the animals and, at the same time, charging their vehicles with absolutely a waste reduction form of electricity use.
I’m glad that we’re moving in this direction. To require of automobile manufacturers there be an adequate supply will certainly help overcome the problem that I found with my partner when we were shopping for an electric vehicle nine months ago. We had to wait a month on a waiting list to be able to get one.
We know people want to buy in. This is something that this government is doing in a concrete way that helps consumers keep their price of operating a vehicle down and that helps the environment at the same time. That sounds like a win-win to me.
I’m glad that this bill is before us. I hope that all sides of the House will support it.
L. Throness: It’s a pleasure to speak today to Bill 28, which is called the Zero-Emission Vehicles Act. I want to preface my remarks by talking about technological disruption for a few minutes.
I’ve had an abiding interest in zero-emission vehicles for, really, all of my life. I remember back in 1977 a guy named Roger Billings built a Cadillac Seville to run on hydrogen. He used something called metal hydrides in the tank to store the hydrogen. It actually ran in Jimmy Carter’s inauguration parade, not using hydrogen as a battery but replacing gasoline with hydrogen in an internal combustion engine.
I thought: “Wow, this is the cat’s meow. This is going to take off. We’re in a new age.” But it was not to be. Energy storage was the problem.
Then came, many years later, the computer revolution and lithium batteries. The tiny lithium batteries that went in the computers were taken by Elon Musk, who’s a real genius, an amazing fellow. He built a roadster out of those thousands of batteries. The Tesla Roadster came in 2008 and used the computer technology.
Since then, I have followed Tesla and the electric vehicle industry because I’m really intrigued by it. This past year or two I’ve been really informed by a futurist and a prof at Stanford named Tony Seba. He has a video on YouTube that anyone can watch. My constituents can watch it, if they like.
He lectures on disruption. He begins his lecture with a picture, and that picture is from the year 1900. It’s a picture of a New York City street, and it’s a street filled with buggies and horses. He says: “I want you to spot the lone car on the street.” There it is. In the middle of all these buggies and horses, there’s one car. Then he goes to his next picture, and that’s a picture from 1913. It gives a New York street, rush hour, same type of thing. This time it’s filled with cars. He says: “Spot the buggy, the one lone buggy amongst all those cars.” In only 13 years, the technology flipped. It was an amazing, amazing thing.
I listened to a podcast that was related to this era. There were at that time, around the turn of the last century, about 50,000 horses in New York. Of course, horses produce a lot of waste. Basically, New York was getting buried in waste. It was very active, the economy was booming, so they needed all sorts of horses to bring stuff around. The more horses they got, the more the waste piled up. They wanted to take away the waste using wagons, but to drag the wagons, they needed more horses.
The problem was just getting worse and worse. This was a real problem. It was making the city of New York unlivable until the technology of the automobile intervened. A technological revolution solved that problem in just a few years. It’s an amazing thing.
Tony Seba made a rule, a rule of market disruption. Whenever a new technology becomes ten times cheaper or more efficient, there is a market disruption and a very rapid switch to that new technology.
Allow me to go through a few technologies, because I think this is really important. I want to make a big point here. I can think back to 1440. The Gutenberg printing press, with movable type, completely replaced handwriting. It didn’t replace it, but it augmented handwriting and put the book into the hand of the common person.
I studied the Penitentiary Act, in my PhD studies, of 1779. I went to the House of Commons archives in England to find the very first one that was written. They brought it to me in a roll. It was made of sheepskin. It was all written in large, flowery handwriting, because that was the best they could do at the time. It would unroll maybe 100 feet long, the very first Penitentiary Act. If you wanted a copy of something, you had to print it out or write it out longhand.
I think of coal over wood in the 1700s and the steam engine that resulted from that — steamships over sailing ships in the 1800s and railways over carts pulled by horses. I think of looms instead of hand spinning, which caused the movement of the Luddites — which we now know to have been kind of a weird time in English history — where Luddites would destroy the looms because they were taking away jobs from the contractors that would weave wool by hand. In the end, the looms caused more jobs and better jobs for everybody because of technological change.
In more modern times, as I’ve already spoken about, the automobile replaced the horse, which had been the mode of transportation from time immemorial. Mass production, through Henry Ford, brought the automobile to the masses. The tractor replaced horses. My father told me that on the farm, when they bought their first tractor, they sold 20 horses. They didn’t need those horses anymore.
In modern times, I think of the acceleration of change in technology as just going faster and faster. I think of my first pocket calculator that I bought when I was in grade 10. It was in 1973 — 50 bucks at Sears. All those calculators replaced slide rules and abacuses and people bending over pieces of paper with a pencil and furrowed brow.
I think of bank machines that replaced bank tellers. Think of the hundreds of hours that the older people in the room here have spent waiting in line in banks, waiting to go to a bank teller. I think of videos. Think of Blockbuster. Think of thousands of other video stores, replaced in a few years by streaming video, Netflix.
Think of CDs replacing long-play vinyl records. I grew up on them. That now is being replaced by iTunes, and recently I got Spotify. I used to say in the 1980s, a bit hopefully and kind of blowing smoke, that I would one day carry my entire music library in my pocket. Then I got iTunes and an iPod, and I put that in my pocket. But now I’ve got Spotify that replaced my iPod, and I can now play 30 million tunes using my smartphone. It’s an amazing thing.
I think of flat screen TVs and monitors replacing tube TVs and computer monitors. It all happened quietly. It all happened just in a few years, very quickly.
I remember the era of the land line. In fact, I remember my grandpa on the phone, in the country, in Grande Prairie, when I was just a little boy. He would spin a dial to make the phone ring and make it work. It was an amazing thing. I remember the era of the land line, then the era of the cell phone that replaced it — it was big as a brick — then the small cell phone and now the smartphone.
Several waves or generations of technology in our lifetime have been replaced in the billions by new technology — billions of smartphones — within the space of a couple of decades. Computers have replaced longhand bookkeeping and writing by typewriters. Emails have replaced letters so that Canada Post is hardly viable anymore.
Digital cameras have replaced film cameras. I now scan all of my slides and pictures, and I think of the thousands of dollars I spent on film and film development and out-of-focus pictures. I think of Stockholm’s harbour, which used to be very polluted because of Kodak processing film there, but that harbour is now completely clean, and Kodak went into bankruptcy in 2012.
The point I want to make in all of this is an important point. None of the things I’ve talked about were initiated by government. They didn’t require government programs, except maybe to regulate their safety. Maybe there were little grants for research for some of them — maybe a bit of a kick-start — but these disruptions, all of them for the better, were driven by the market. The best role of government was to get out of the way and let them happen.
Now, the market in B.C. is far more important than government. Our GDP, run by the market, is $2 trillion every year. The provincial budget is just $60 billion. Only a small portion of that can be devoted to zero-emission vehicles. It is not possible for this government or any other government to effect a transition to zero-emission vehicles. The market has to do it.
I want to cite one more case study, though, in this regard. In 2013, the federal government phased out incandescent bulbs. I remember thinking about that and being kind of irritated about that: “Why is the federal government getting involved in incandescent bulbs and dictating to citizens what they can buy and what they can’t buy?” But it did it regardless.
It turned out to be entirely useless, because today I wouldn’t buy an incandescent bulb. In fact, I stocked up on incandescent bulbs when they were still available, and now I don’t know what to do with them. They’re useless. They’re way more expensive to operate. New LED bulbs last for 25 years and use a fraction of the power that an incandescent bulb uses. Government created an entire bureaucracy to regulate the phase-out of incandescent bulbs when the market would have done it for nothing. It’s a complete waste of money.
I want to move on to talk about zero-emission vehicles — in particular, about their technological development. I’ve followed various iterations of the electric car. As I was saying, in 2008 the Tesla Roadster was created. Elon Musk is an incredible figure, to whom society owes a great debt.
There are still problems with electric vehicles. I think of range. Range is a problem that has hindered the development of the electric vehicle. I think of the time it takes to recharge. In some, you have a 240-volt outlet. It can take all night to recharge your Tesla. I think of operation in cold climates. It’s more difficult for a battery-operated vehicle to operate in cold climates. I think of the recycling of lithium batteries. That’s a real problem. We’re going to have, perhaps, millions and millions of electric cars, and those batteries are going to wear out someday. What are we going to do with those batteries?
There are so many advantages to a zero-emission vehicle. Let me list a few. An electric vehicle has maybe three or four moving parts, as opposed to thousands in an internal combustion engine. It’s an amazing thing. The torque and acceleration in an electric car is amazing — way better than an ICE, which is an internal combustion engine. Think of electric motors that are almost soundless. They’re amazing. Noise pollution will be reduced by an enormous measure.
Cars will last for a million miles, five times longer than vehicles today. I just sold my old gas-powered SUV. It had 200,000 kilometres on it, and it was just about worn out. The biggest expense with an electric vehicle is tires. There’s hardly any maintenance to do.
I’ve heard that service station mechanics are worried about the introduction of electric vehicles, because what are they going to do with their jobs when cars come that don’t need maintenance? Soon, Elon Musk just announced, their newest vehicle will have a 1,000-kilometre range, a 600-mile range. It’s an amazing thing. Superchargers are going to reduce charge times, and solid-state batteries are going to reduce charge times even further, increase range and decrease the time it takes to charge.
Of course, there will be a savings in money through all this. Think: there are no complicated transmissions. There’s no cooling system required. There’s no gas tank and apparatus to support that. There’s no oil needed. There’s no muffler, no heavy internal combustion motor, and soon no steering wheel and no pedals.
We are on the verge of a new disruption, with respect to motor vehicles, that is not unlike the disruption of cell phones, flat-screen TVs and all the other things I just talked about. We’re approaching a new disruption. There is some question as to whether it will be hydrogen or electricity, but I think of the manufacturers that are now all promising to switch. I think of Ford. I think of Volkswagen. I think of Porsche, which has a new e-car. I think of Volvo, which has promised to switch completely in the next ten years or so.
Right now a third of Norway’s new vehicles being sold are electric vehicles. There’s a new Audi that’s just out, new pickups being promised, new semi transport trucks which may run on electricity, like the Tesla, or there’s another company which wants to run long-haul trucks on hydrogen.
The next iteration to come after that will be self-driving cars, and that will further disrupt the transportation industry. I just watched a video on the weekend where Elon Musk said that the public will demand that the steering wheel and pedals be removed — not that he likes that or that perhaps many of us who like to drive will like that, but the public will demand it. As Elon Musk said, “Why would we allow people to drive these two-tonne death machines, when a self-driving vehicle will be able to drive without an accident?” as hundreds of thousands of vehicles right now are feeding their learning into a central computer that is teaching every Tesla car how to drive better. Within a year, Elon Musk says you will be able to get into a Tesla and go to sleep. Punch in your coordinates, and the car will take you there more safely than you can drive yourself.
After that, Tesla owners will want to rent out their Tesla as a self-driving robo-taxi, and their Tesla will become an appreciating asset. Auto insurance will be cheaper in the future, as there will be fewer accidents as cars become more intelligent. We will need fewer cars. You’ll simply dial up a car. Why would you own a car and pay for a car when you can just dial up a car? A car will come to your door, and you just pay for the ride. There will be fewer parking lots needed, and we’ll have a lot of space in cities that is now devoted to parking lots, because there will be fewer cars needed.
I had a person email me who talked about class 4 licences and how you ought not to need a class 4 or class 5 licence for an Uber or a ride-hailing system. Well, Uber will be taken over by automatically driven cars. All the involvement with government that will be needed will be to regulate in the interest of public safety. To sum up so far, I would say that Bill 28 is a completely useless piece of legislation. It is not needed, and in fact, it will be a useless expense.
I want to go on to talk for a moment about electricity supply, because I just want to make a point here. The government wants to switch from fossil fuels to electricity. To do that, it will need more electricity, but this government opposed the Site C dam, tooth and nail — tried to get it to stop. This is amazing to me. We will need the equivalent of something like four Site C dams in order to switch our entire vehicle fleet to electric vehicles. Is there a plan for electricity in this bill that will be needed in the coming revolution of zero-emission vehicles? No. There’s nothing. There’s no plan of the government. In fact, they’re still mourning the fact that Site C is being built, including the Green Party, which opposed it in a mighty way.
Let me go on to this legislation to talk for just a few minutes. We have a complete bureaucratic scheme here. We classify vehicles — hydrogen or electric — and we’re picking winners and losers. What if a new technology comes along before 2040? You think of how quickly technology is advancing today. Something else might come along, but we’re picking winners and losers in the market. Maybe we’ll have fusion power by 2040. Who knows?
We identify private suppliers and say that they have to report their sales to the government. The legislation identifies targets which are not soft targets — which is usually the meaning of targets — but they’re hard quotas. They’re backed up with fines and jail time. And the signature piece of the legislation is in section 9, when, by 2040, a person must not make a consumer sale of a light duty motor vehicle that is not a zero-emission vehicle. You will, by the way, be able to get a new vehicle in Alberta or the States and bring it in. And you’ll be able to sell a used vehicle but not a new one.
In fact, the minister said in this House today that it’s not needed, that suppliers have all told her that by this time, the requirement will not be a problem to abide by. So why do we make a law about it? Let’s make a law about other things that we’re going to do anyway. Let’s make a law that you have to look both ways before you cross the road. Or let’s make a law that you have to wear lighter clothing in the summer. It’s something we’re going to do anyway.
There’s more to this law. We will have debits and credits and compliance ratios and complicated equations. We will have a director appointed and, I’m sure, an office filled with industrious public servants to whom suppliers will have to submit a report every year with the number of sales and the serial number of every vehicle sold and a supplementary report just in case the supplier left out a dotted “i” or a crossed “t.”
The director will do an assessment and tell the supplier, “Yes, you’ve complied with the law to meet your target.” If not, automatic administrative penalties will apply. The director will make information requests and do audits. The supplier has to maintain records. The director can make inspections, take away samples — including a sample that is a motor vehicle, by the way — will be able to enter premises, inspect, analyze, measure, sample, test and take away videos and other records.
All this is backed up by administrative penalties. Or if the director really wants to get tough, we have an offences section — the offences section is amazing — just for disobeying the command to sell electric vehicles.
This is criminalizing behaviour, by the way, that is entirely legal today. Almost all of our vehicles sold are ICE vehicles, internal combustion engine vehicles. That perfectly innocent, good behaviour will be criminalized in the future. If administrative penalties are not enough, there will be a fine of up to $1 million and six months in jail for perfectly innocent, good behaviour today — it’s incredible — all for something the market is going to bring about anyway, way earlier than 2040, because a disruption is right on the horizon.
To sum up, I cannot imagine a more useless piece of legislation — a more cumbersome, intrusive, expensive and bureaucratic process. A criminalization of good people and totally innocent behaviour is now being set in place by this government, and by the minister’s own admission, none of this is necessary.
Hon. J. Sims moved adjournment of debate.
Motion approved.
Point of Privilege
(Reservation of Right)
Hon. D. Eby: I regret to have to do this, but I rise to reserve a point of personal privilege in relation to the remarks made by the member for Prince George–Mackenzie about me earlier this morning, in relation to allegations that I breached confidence in my role as Attorney General.
Committee of the Whole (Section A), having reported progress, was granted leave to sit again.
Committee of Supply (Section C), having reported resolutions and progress, was granted leave to sit again.
[Mr. Speaker in the chair.]
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. tomorrow morning.
The House adjourned at 6:23 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of the Whole House
BILL 20 — MEDICARE PROTECTION
AMENDMENT ACT,
2019
The House in Committee of the Whole (Section A) on Bill 20; R. Kahlon in the chair.
The committee met at 2:50 p.m.
On section 1.
The Chair: Minister, would you like to introduce your staff? Okay.
Section 1 approved.
On section 2.
N. Letnick: Thank you to the minister and his staff for being here.
For those that are just tuning in, we are currently looking at Bill 20, the Medicare Protection Amendment Act, 2019, which basically just — not just; it’s important — removes the provision for the government to collect premiums for MSP.
We had a lot of debate during second reading, mostly to do with the replacement of what’s coming out here. Here, during committee stage, we’ll focus just on the particular pieces of the bill that are removing the provision for premiums, which means that we’ll probably be about five minutes. The government has provided amendments that strike out “premium” and other parts to the bill, and the opposition is in support of the government’s actions to remove the premiums.
Having said that, a section removes a whole bunch of clauses throughout the bill. I’d like to thank the government staff for providing me with a redlined copy of the bill and also for the briefing which the minister provided to me. That’s great. That means this should, actually, flow even smoother.
My question on section 2 of the bill is: when you remove one section of the actual law, of the act, does the renumbering of all the other parts move up automatically? Or do you need a part in the bill that says we’re renumbering all the specific ones? For example, if you remove 5(1)(a), what happens to (b), (c) and (d)? Do they automatically move up to the new (b), (c) and (d)? What’s the effect of that?
Hon. A. Dix: No, they don’t. They just appear blank. There’s not a renumbering.
Section 2 approved.
On section 3.
N. Letnick: Thank you to the minister for informing us that there’ll be a whole bunch of blanks in the legislation, because we’re removing quite a bit.
Hon. A. Dix: It’s an achievement.
N. Letnick: Yes, it is.
Section 5 “is amended by striking out ‘premium assistance’ and substituting ‘additional benefits or services’.” Would the minister please be so kind as to describe some additional benefits or services envisioned here?
Hon. A. Dix: These are the supplementary benefits that are available for low-income people. The reason to continue to have that provision is that while there’s not premium assistance per se — there’s no MSP premium, right? — there is continued access and a need to measure access to those benefits, which include benefits for chiropractic, massage therapy, naturopathy, physiotherapy, acupuncture and non-surgical podiatry.
That’s that class of supplementary benefits that people are eligible for in that category — up to 12 visits a year, I believe. That’s the category we’re talking about. We continue to need to define that for the purposes of providing that insurance. That’s why we’ve made this change.
Section 3 approved.
On section 4.
N. Letnick: I have a question on section 4 and then none for 5 to 10 afterwards, if you want to adjust accordingly.
Section 4 talks about adding a section. “Before making a cancellation under” some sections, “the commission must notify the beneficiary in a manner the beneficiary can understand (a) of the commission’s intention to proceed,” and “(b) of the circumstances giving rise to the commission’s intended action,” and a couple of other things.
Could the minister please describe why this particular section is being added to the act.
Hon. A. Dix: This isn’t a change to the notification perspective. It’s just putting it into the act in a different place in order to make it more clear within the act. That’s the purpose of it. So it’s not an actual change we’re talking about. It’s taking this provision from one section of the act and moving it to another.
Just to correct, I misspoke earlier. It’s ten visits, not 12 visits, with access to supplementary benefits.
N. Letnick: Would the minister be so kind as to let us know where it’s being taken from?
Hon. A. Dix: It’s moving from the current section 11(4) to section 7.4.
Sections 4 to 10 inclusive approved.
On section 11.
N. Letnick: Section 11(1) says: “If a person is required under an agreement made under section 32 of the Medicare Protection Act to pay all or part of another person’s premiums or to collect premiums from another person for remission to the commission,” and then it gives some particulars.
Could the minister please give an example or examples as to when this might happen, where someone would be required to pay MSP, in part or in all, for somebody else?
Hon. A. Dix: Just a practical example is if you’re under a group plan, say with Telus or with B.C. Hydro. That obligation to pay your premium would be on to the employer, and that obligation continues. This allows for the transition for amounts owed prior to January 1, 2020, after January 1, 2020.
N. Letnick: So clause (a) says: “the agreement continues to have force and effect until terminated in accordance with its terms.” So if the term…. Let’s say it’s a five-year contract, way past the 2020 date. What happens then? Are they still required to collect premiums for MSP when MSP premiums have been removed from the legislation?
Hon. A. Dix: This is when they owe. Telus isn’t probably a good example for this. But say money was owed in the period while there are still MSP premiums. Money was owed by an employer, say, whose obligation was to remit that amount, and that money is owed. This allows and makes sure that that money continues to be owed after January 1, 2020.
Obviously with the elimination of the premiums, the requirement to provide the payment goes away.
Sections 11 to 14 inclusive approved.
Title approved.
Hon. A. Dix: I want to thank our staff team and thank the critic.
I move that the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 3:01 p.m.
Committee of the Whole House
BILL 25 — COASTAL FERRY
AMENDMENT ACT,
2019
The House in Committee of the Whole (Section A) on Bill 25; R. Kahlon in the chair.
The committee met at 3:11 p.m.
On section 1.
J. Sturdy: I wondered if the minister had any opening statements with regard to the bill or not. If not, I did have some questions with regard to the Redlin report, as it is informing this particular piece of legislation. I wondered if the minister could let us know, perhaps, why it took as long as it took — I think eight or nine months — to put forward the Redlin report or to publicly issue the Redlin report after its submission on June 30.
Hon. C. Trevena: I thank the critic and thank him for giving me the opportunity to say a few words, but I know that we want to work through this bill.
The member asked me in estimates debate pretty much the same question about the report. It was obviously a very detailed report. We did want to take time to consider it. During that time, we were also working with B.C. Ferries on such issues as the reinstatement of service that we were able to see on April 1, so there was some work going on in tandem — discussions with B.C. Ferries as well as the work preparing for this legislation.
J. Sturdy: Were there any other versions or amendments to the Redlin report after it was submitted on June 30?
Hon. C. Trevena: No.
J. Sturdy: On to section 1. Could the minister clarify the rationale for expanding the definition of “executive”?
Hon. C. Trevena: This comes from recommendation 5 of the Redlin report. It is to bring greater transparency to the system. At the moment, there are four executive vice-presidents and five vice-presidents. The vice-presidents aren’t subject to the executive compensation plan under the existing definition of the executive, so this will ensure that the remuneration of all B.C. vice-presidents is subject to the approved executive compensation plan.
I think the member is well aware that there’s often been questions of transparency when it comes down to compensation, and this will provide that greater transparency.
J. Sturdy: So how many more executives do we expect to see covered by this definition?
Hon. C. Trevena: At the moment, there are four executive vice-presidents and five vice-presidents. So currently it would be five, but it would be up to B.C. Ferries to determine who is and isn’t a vice-president.
J. Sturdy: Do we have a sense, then, if there is an implication for compensation for B.C. Ferries as a result of the change to this definition?
Hon. C. Trevena: We don’t know the details of the contract, so we have no expectation of that either way. But it is up to the authority to be dealing with this.
J. Sturdy: So this is, then, for clarity, just really about public notification of compensation, or about making sure that people understand who’s making what. Is that the gist of it?
Hon. C. Trevena: It’s primarily for transparency. There are compensation plans for the executive vice-presidents. This will now include the vice-presidents, and that will increase, we assume, the transparency.
J. Sturdy: Will that mean, then, that the authority will be setting that compensation package, or were they already?
Hon. C. Trevena: We’re into the two-board thing, Member. It’s the services…. The authority board sets the plan with maximum limits, and the services board sets the compensation itself, so there’s a range. The authority would set the plan with the range, and the services board would come in and say: “This is the level of compensation for X executive vice-president or vice-president or CEO, whomever.”
Section 1 approved.
On section 2.
J. Sturdy: If the minister could give us a bit of an overview on how this — specifically, “(a) by adding ‘and’ at the end of paragraph (b)….” This is about the change to the appointments of the authority board. My understanding is that two of the community-at-large members would no longer be appointed by….
Perhaps the minister can tell us how those community-at-large members are currently appointed and how they will be appointed in the future.
Hon. C. Trevena: I just wanted to clarify this, because it does seem to be a bit strange when we’re working this one through.
The community-at-large members — generally, they are names provided by the services board to the authority board. Basically, then, the authority board will appoint those people. It is seen to fill in gaps of expertise that may be at the authority board. The authority board may sometimes have its own names, but generally, it’s been that the services board has given the authority board names of people that the authority board will then appoint to the community at large.
There isn’t a public process for it. It is all internal within the two levels of the board system in B.C. Ferries.
J. Sturdy: So two of the four members-at-large will now be appointed through Lieutenant-Governor-in-Council.
Hon. C. Trevena: At the moment — under the current system, before this gets into effect — there are four community members, two members-at-large, two appointed through order-in-council and one that is a labour representative. Under the changes, it’s going to be that there are the four sort of regional representatives, one labour and four appointed through order-in-council.
J. Sturdy: What is the rationale for having, essentially, in many respects, a majority of this authority board being appointed through order-in-council? I recognize there are four out of nine. But then you add labour to that, and one would imagine there is a common interest there anyway — certainly from this government. What’s the rationale for appointing four appointees by cabinet?
Hon. C. Trevena: This is something that was suggested in the Redlin report, and we thought it was a good move forward. I think that the labour member is completely separate. It’s not appointed through OIC, and there have been no consultations with labour about who the representative is from labour.
Through the Redlin report, the suggestion was to increase the provincial representation to four, with a transparent approach going through CABRO, where you can apply to be a board member for multifarious boards around the province.
J. Sturdy: Well, there were many recommendations in the Redlin report, and certainly not all of them were accepted by the minister. The minister obviously felt this was a good idea. I see she’s been quoted as saying that it will bring a greater public interest to the role of the B.C. Ferries shareholders. Can the minister explain how that would actually provide a greater public interest?
Hon. C. Trevena: By having a separation from the services board and the authority board. This is what this will allow, basically. Under the present model, two community-at-large people, not regional representatives, are recommended by the services board. This is taking it outside of that, so it will give greater independence, and the authority is the shareholder. It needs that independence. It needs to be able to have the independent oversight, and by having a greater balance of independent members, it will be able to create that independent oversight.
J. Sturdy: The minister is suggesting that appointments through order-in-council, by government — one would imagine, on the recommendation of the minister — is more independent than a member-at-large?
Hon. C. Trevena: It’s more independent than somebody who is suggested by the B.C. Ferry Services board suggesting who should be on the B.C. Ferries authority board. That’s sort of an inner loop. To have people who are appointed through order-in-council, there is…. I think the member is very well aware that there are many boards. The public can say that they want to be considered for boards generally or boards in particular. There are websites that allow that, so I think that this will allow for a separation from the services board and the authority board. That’s what we’re trying to do: make sure that the shareholder that will have sort of a more strategic oversight will be more separated from the services board.
J. Sturdy: I guess we’ll have to disagree on that. I think historically, there had been a need to fill certain positions as recommended to fill in expertise — that sort of thing. Now it’s really going to be purely a political position or a political appointment through order-in-council.
Doesn’t this concentration of power really just strip away some of the desire for a public interest, being that it’s really a political appointment?
Hon. C. Trevena: The authority candidate still has to be a qualified candidate, which means that they don’t hold elected office of any type; is not an employee, steward, officer, director, elected official or member of any union representing employees at B.C. Ferry Services; is not an employee of a municipality, regional district, trust council or greater board within the appointment area; and is not an employee, director, officer or executive at B.C. Ferry Services.
Further, this comes from…. Back in 2009, the comptroller general reported on the governance at B.C. Ferries. I’m reading here from the Redlin report, the coastal ferry services review report.
“The 2009 comptroller general’s report on governance of B.C. Ferries recommended strengthening the role of the authority and called for the authority to fulfil the normal functions of shareholders, including providing broad strategic direction to the board of B.C. Ferries. The comptroller general said the authority needed to maintain independence from the board and management by breaking that loop of, basically, self-appointment. The services board gives names that the authority board then hires for itself. It’s a very closed loop. I think most people would see that. It’s a very strange and very closed loop.
This will, as the comptroller general suggested back ten years ago, maintain independence from the board and from management as a prudent shareholder who will be providing strategic oversight.
A. Olsen: I just want to get some clarification on a comment that you just made about the Redlin report and the suggestions that the Redlin report made to take this action — going from two to four.
It’s my understanding that sections 5, 6, 7 and 11 be amended so that the two Ferry Authority positions are replaced with at least one, and possibly two, OIC appointment. I don’t know that this legislation has done that, and I just wanted to get a clarification as to why you are not necessarily following the direct advice of Redlin. I might have been reading this wrong or heard that wrong, but I just wanted to get that clarification.
Hon. C. Trevena: Mr. Redlin suggested replacing either one or both of the community-at-large people with appointments to break that cycle and to create a greater sense of independence. We’re taking the recommendation to replace both of them.
J. Sturdy: Did the minister consider any other model so that the appointment would not necessarily be made through order-in-council? It really just comes across as cabinet working to take as much control of the authority board as they can without having the Auditor General look at it and say: “Well, you’re actually just controlling the whole corporation. Therefore, you have to take over the debt.”
Isn’t there another way of appointing these two positions at large without having a political appointment through cabinet?
Hon. C. Trevena: Mr. Redlin was commissioned to provide a report without looking at changes to governance. I think that was very clear. I think the member is very well aware that we were very clear that we were not going to change the governance model — so within the existing governance model with a two board authority.
Mr. Redlin suggested that to make this work in a more transparent and accountable manner would be to break that loop. So you’re not having the services board naming people who are going to be on the authority board who are going to be providing the oversight for the services board. I mean, it’s a very closed loop.
We followed Mr. Redlin’s advice — he was working within the existing governance model — on how to give the authority board, which is the shareholder responsible for the share of B.C. Ferries, that ability to be more independent from the services board. I think that it makes a lot of sense, given the structure that…. We were working within the current governance model of B.C. Ferries.
J. Sturdy: The authority board really, up until now, was just responsible for services board appointments and executive compensation, essentially. That role is now…. Two more of those positions on the authority board will be appointed. There will be four appointees by cabinet, and they will be given — we’ll get into it in the next section — much more authority. Would the minister concur with that?
Hon. C. Trevena: I go back to the 2009 comptroller general’s report, where it was said that the shareholders were all to give strategic direction. We are changing the legislation, amending the legislation, to give greater independence to the shareholder, so they will be better able to give strategic directions. Instead of B.C. Ferry Services’ board appointing people at B.C. Ferry Services’ board wants to be giving oversight to the B.C. Ferry Services’ board, we’re breaking that loop.
We’re using the board appointment process, where, as I say, we have people from all over applying for board positions, and where we think that there will be an independence — that the shareholder is supposed to be giving strategic oversight to B.C. Ferries. We all know how important B.C. Ferries is to the province. We want to make sure that we get the best possible oversight that we can.
Section 2 approved.
On section 3.
J. Sturdy: The addition of section 21.01(1) provides the B.C. Ferry Authority to “oversee the strategic direction” of B.C. Ferries. Can the minister let us know who she thinks currently provides strategic direction to B.C. Ferries?
Hon. C. Trevena: I go back to the comptroller general’s report. It’s the role of the shareholder to give strategic direction. B.C. Ferry Authority is the shareholder. There has been no explicit part in any of the Coastal Ferry Act that gives that shareholder the responsibility for strategic direction. We believe that there needs to be a strategic direction coming from the shareholder, and that is why we have put section 3, 21.01, into the legislation, so there is strategic direction coming from the shareholder, both as a result of the comptroller general ten years ago suggesting that this was important and underlined again by Mr. Redlin’s recommendation 32.
J. Sturdy: Again, the question was: who is providing the strategic direction now? What problem is the minister attempting to fix, other than…? The Redlin report made all sorts of recommendations, but neither here nor there in many respects. What is the objective here? What is the problem that the minister is trying to solve by adding this complexity to the management structure?
Hon. C. Trevena: So it might perhaps be…. To clarify a little, reading into the record just a new section that is being brought in to the Coastal Ferry Act under Bill 25, Coastal Ferry Amendment Act, 2019, which is:
“(1) The Authority, as the sole voting shareholder of BCFS, is to oversee the strategic direction of BCFS in support of the public interest…in safe, reliable and affordable coastal ferry services in British Columbia. (2) BCFS must provide the Authority information reasonably required by the Authority in carrying out its oversight role under subsection (1),” which I’ve just read. “(3) The directors…must make public an annual report, published with the annual report required under section 18 (4), that describes findings made and actions taken….”
So basically, as I say, it is providing the oversight, providing the role of the shareholder and fulfilling the role of the shareholder, which it has not been able to do because it’s not been set down in legislation. The shareholder provides strategic oversight.
Back in 2009, the comptroller general did his report on the governance of the set ferry service. At that time, it was suggested that the role of the B.C. Ferry Authority be tightened and be given a stronger position, so it could fulfil the normal functions of a shareholder. At the moment, it has not been able to do the normal functions of a shareholder.
If you ask whatever business school what a shareholder should do, it is to provide strategic oversight. The B.C. Ferry Authority has not been able to do that until we have the explicit declaration in this legislation that allows it to do that.
We’re changing the makeup to allow that to happen, to break some of the complexity and break the links between the services board and the authority board, so the authority can provide that strategic oversight.
J. Sturdy: Well, again, I’m not sure that I understand what problem the minister is trying to fix, as it were, by making these changes. I wonder if the minister could let us know what, in her mind, she believes strategic direction is and how this will manifest itself in some sort of change to the way the corporation works.
Hon. C. Trevena: The role of the shareholder, as I say, is to provide strategic oversight. It’s very explicit in this legislation. It’s to be looking after the public interest. I know we’re going to get into this discussion in a little while about how one does define public interest. But it is to look after public interest.
I think everyone recognizes that B.C. Ferries, like it or hate it, is an independent company. But it has a huge responsibility for the workings of B.C. communities, the B.C. economy and just the very fabric of life of B.C. Look what’s been happening the last couple of weekends when, for whatever reason, whether it’s overbooking or bad weather, B.C. Ferries hasn’t been able to sail. I’m sure the member has been hearing about it. I’ve been hearing about it. It makes a lot of news.
We’ve got to make sure that the ferry system, which is an independent company but has a big public responsibility, is running in a way that best services the public interest. Having a shareholder — the B.C. Ferries authority board that was established by the former government as a shareholder — and making sure that that shareholder is fulfilling its responsibility without the direction of the services board, which is dealing with operational issues with B.C. Ferries, is hugely important not just for the public interest but for the economic well-being of our whole province, I would suggest.
J. Sturdy: I take it by that that the minister doesn’t feel that the current operations or services board is providing a service in the best public interest or appropriate strategic direction.
Hon. C. Trevena: I’m not going to comment on the services board fulfilling its functions or not. What I’m talking about here, and what we’re doing in this amendment to the act, is ensuring that the shareholder is able to fulfil its responsibility in the public interest. We believe that these amendments will allow it to do that by breaking that link for the appointments and by ensuring that the public interest is enshrined in the act so that when the shareholder is looking at that strategic oversight, it’s keeping that in mind.
J. Sturdy: What does strategic direction mean?
Hon. C. Trevena: We’re not talking about operational. We are talking about strategic. But it is up to the authority, as the shareholder, to define and to look at its role with the strategic oversight for B.C. Ferries.
We are keeping the model set up by the previous government of an arm’s-length system. We have B.C. Ferries still as an independent company with a services board that deals with B.C. Ferries services with a separate board. It’s strange, as I say, for most people. If there’s anybody watching this debate, we’re discussing this quango, which has two boards. One looks after the services, and one is the shareholder. The shareholder has the responsibility to define for itself what the strategic direction will be.
We as a government are well out of it. This setup was created by the former government. We have worked within this system to ensure that what we as a government see as important is that the public interest is embedded in the legislation, which it wasn’t before. We anticipate and we would hope that that public interest and that direction, which is the only direction we’re giving in the legislation, is taken by the B.C. Ferries authority board. The authority defines the strategic direction. The authority is working as the shareholder, as the board, with its elected chair. It’s the way the authority works independently of government and, we expect, independently of the services board.
J. Sturdy: A shareholder typically, in most situations, would be involved in the selection of the operational board in terms of voting for the board and putting a board in place. It’s very unusual for a shareholder to be setting some sort of strategic direction as a shareholder. You do that through the tool of appointing a board.
I would suggest that when the minister is proposing to change the legislation to bring four of those board members on the authority into government control, they have ample opportunity to change the makeup of the operational board, which would perform on behalf of the shareholder, so I would fundamentally disagree that a shareholder has a responsibility or an obligation or even a role in setting strategic direction other than through the appointment of the operational board.
Again, I don’t understand how this would work in terms of…. Words do matter, and the authority is now going to be setting a strategic direction, which then a separate board is going to have to somehow carry out and define what the public interest is. It seems a very, very cumbersome structure. Again, because words do matter, how is the board…? How does the minister expect the board to interpret strategic direction or oversee strategic direction in support of the public interest? Like, they are going to have to interpret that, and then impose it somehow on the services board, and I just don’t understand. Perhaps the minister can help me understand how that’s actually going to work.
Hon. C. Trevena: Without harping too much on problems created by previous administrations, the previous administration, when the member’s party was in government, established this two-board system.
Interjection.
Hon. C. Trevena: The member can say it’s worked very well.
The difference that we are putting into the legislation is bringing in something that was missing under the previous administration, which was the public interest. The two-board system is very cumbersome, very complex, but it is still independent.
Back in 2009, the comptroller general reported on the governance of B.C. Ferry Services. I’m sure the member has read it. It was a very good report and led to some amendments, but not this one. We are adopting this. When Mr. Redlin did his review, people said: “Why are you doing another review?” He read the previous reviews and saw this as a very helpful piece for transparency and for being able to build the public interest into the legislation.
Back in 2009, the comptroller general recommended that B.C. Ferry Services strengthen the role of the B.C. Ferry Authority and called for the authority to fulfil the normal functions of a shareholder, including providing broad strategic direction to the board of B.C. Ferry Services. The comptroller general said that this was the normal function of a shareholder.
We accept what the comptroller general is saying. We are embedding this in the legislation.
J. Sturdy: The minister continues to refer to a lack or a miss on behalf of B.C. Ferries in terms of not necessarily serving in the public interest or of having strategic direction or oversight that is somehow inadequate. Is that what the minister is saying?
Interjections.
The Chair: Members, I just want to remind all members that questions and answers are through the Chair.
Hon. C. Trevena: Thank you to the member. We’re not judging the ferry system or the ferry service. What we’re doing is trying to give the authority the role of the shareholder, strengthening what it can do, in line with something that was recommended ten years ago by the comptroller general.
It has been reviewed and recommended again in ways to make sure that the shareholder, the B.C. Ferry Authority, which is the shareholder in this very strange two-board model, is able to work for the public interest, so that people, whether in the member’s own riding, in Horseshoe Bay or Bowen Island or anywhere around the coast or around the province, know that the shareholder for B.C. Ferries has the public interest of coastal communities and others at the root of what it’s doing.
R. Sultan: I’m intrigued enough to try to insert myself into this sometimes semantic debate of the public interest and the restructuring of the governance structure of B.C. Ferries, which is in prospect.
I wonder if the minister would care to comment on the perspective that the public interest, as embodied in this legislation, refers to the interest of the ferry user community, which is a very large community.
Certainly, most of the people on Vancouver Island and many in the archipelago and up and down the coast would identify with being a very interested public with respect to ferry services. But there’s a vast body out there in the hinterland which hardly ever, or perhaps never, uses the ferry. I’m wondering if it is a mistake to assume that the public interest is the public interest of all British Columbians, who are the public that we serve here in the government.
It would seem to me that the existing governance structure…. Directors chosen to serve the shareholders, who are the citizens of British Columbia, attempt to serve that interest. The shareholder interest is the interest of all British Columbians, but the public interest you have identified, it occurs to me, is the interest of the users of the ferry.
If I may, with respect, suggest to the minister, I don’t think the interests of the user of the ferry are identical or coincident or always consistent with the interests of all British Columbians. Ferry users want lots of service. They want low prices. They want great service to the most remote archipelagos. It’s wonderful. That is the interest of ferry users, but people who live in Quesnel and Cranbrook, who seldom even get down to the coast, aren’t really particularly interested in that.
Interjections.
The Chair: Members.
R. Sultan: They are the shareholder community, but they are not the public interest that this legislation will change the focus of ferry operations to serve. It is a fundamental shift in focus, I would suggest. I’d be interested in whether the minister sees any merit in my thoughts.
Hon. C. Trevena: There are opportunities further on in this legislation to pick up on some of the areas that the member has been talking about. I just wanted to correct him. I know he’s an erudite member of this Legislature, but we are not changing the governance structure.
This is one of the things that has caused, I’ve got to say, immense frustration for many people who I represent and for many people that the member opposite represents. Many people up and down the coast are concerned about this.
We looked at the governance structure, and we are maintaining the governance structure established by the previous government. We are maintaining the two boards to provide the service. So we’ve got the authority board as the shareholder and the services board working with the ferry corporation. I mean, it is a very complex operation, and we are keeping that operation.
I know we have lots of opportunity, through this legislation, to talk about the public interest, how to define the public interest. The public interest, of course, involves ferry users. It involves the whole province.
As government and as policy-makers and as people who…. All of us who are working on behalf of the people of British Columbia want to ensure that the best consideration is made for the people of British Columbia, whether it is for the people of Quesnel or the people of Port Alberni — that we are doing the best we can and that the interests of the public are embodied in whatever we are doing. Whether we’re talking about health care…. We have health care for everybody around the province. We have highways for everybody around the province. We are looking at how we can ensure that that public interest, the needs of the public, is embraced in this through the ability of the shareholder to provide the oversight.
As I say, I correct the member. We are not changing the governance model.
R. Sultan: A brief follow-up. I wonder if the minister would therefore care to comment in the midst of, in fact, perhaps not a restructuring of the organization chart but a redirection — a new set of instructions, you might say — values that have to be incorporated, that are going to be reflected in how the ferry corporation operates.
Despite that refocusing — which, it seems to me, is the purpose of this new legislation — the minister still believes that the public interest is identical with the shareholder interest. Is that the view of the minister?
Hon. C. Trevena: To the member: I go back to what I was saying to his colleague. Back in 2009 this was recommended by the comptroller general — that the authority’s position be strengthened, that within the existing governance model the authority fulfil the normal functions of a shareholder, which include providing broad strategic direction to the board of B.C. Ferry Services. That was, again, picked up by Mr. Redlin, who said that this is important.
What has been lacking in the legislation is the concept of “public interest,” which means the common good. That is the common good for the people of B.C. I would suggest to the member…. I mean, he’s got a very fine, trained mind and knows that the good for people…. Whether you’re in Sooke or you’re in Parksville, there is an equal sense of common good there as there is in Fernie or in Pouce Coupe. The people of B.C. deserve that their interests are looked after, wherever they are.
That is what we want to make sure: that the public interest is part of the oversight in this incredibly complex system that was established a number of years ago by the previous government to try to keep ferries — as we are doing likewise — at arm’s length from the government, but ensuring that the people of B.C.’s best interests are reflected in that governance.
A. Olsen: I guess it just bears…. One of the people that has critiqued the decision to keep the governance structure the way it is, while trying to reflect the public interest in the system, has been myself. I’ve been one of those critics of that. I’m just wondering if the minister can comment on the challenges of keeping the model, while also trying to reflect the public interest in this. I’ve heard a series of questions here. I’m not sure whether they are critiquing the model that was created. Also, I guess, if anybody’s watching this, they might be as sufficiently confused at what the point of this has been as I am.
I’m just wondering. Why is it that the minister and the ministry — the government — decided to take this route in reflecting, rather than the question of bringing it back into government as a Crown corporation or into the ministry? I think that that might help clarify some of the challenges that we’re faced with here, trying to balance the public interest and the current governance model, which really has the outcomes we have seen.
Hon. C. Trevena: I thank the member. I know where the member is coming from. What I’d like to say, I think, is that really no model is ever going to be perfect. There is a value to having an independent operator. B.C. Ferries gets plaudits around the world. There is a value of independence. What we are acknowledging in the amendments here is that there is a value of independence, but there’s also a need for good governance.
That’s what was suggested back in 2009, with the comptroller general’s report that Mr. Redlin picked up and that we are now, through this legislation, bringing in, accepting that there is…. No one model is going to be perfect, but with the model that we have, we want to ensure that there is good governance there. Good governance, as far as our government is concerned, is that the public interest for the people of B.C. and their needs are built into legislation when we’re dealing with something as important as our ferry system.
A. Olsen: I thank the minister for that response. I’m just going to move into a question that I have around section 3 here — it’s the second part of this — just around the information. It says, “BCFS must provide to the Authority information reasonably required….” I’m wondering if the minister could provide some examples of what information might be considered in this section.
Hon. C. Trevena: I’m not going to try and speculate what the authority board may or may not want.
What this line does, section (2), “provide to the Authority information reasonably required by the Authority in carrying out its oversight role,” is it’s giving the authority that tool. They will, as an informed shareholder, be able to make an informed decision. Without speculating what specifically they may need, we’re giving the responsibility to have the public interest embodied here.
There may be times where they feel that they need information on whatever it is from B.C. Ferry Services to determine that that has been done. So it’s really a tool to ensure that they can do their work as an informed shareholder.
A. Olsen: There has to be a reason why this is in the bill. Is there a time, like when the information has been withheld from them that they need in order to be able to make the informed decision? I’m just wondering how this arises, I guess.
Hon. C. Trevena: There’s never been a section like this in the act before. We just want to make sure that there is the tool there in case they need it. We brought the concept of the public interest in. We want to make sure that if the authority does need information from B.C. Ferry Services, there is the foundation of the legislation to which they can turn if there would be any confusion there — to say it’s part of the legislation.
J. Sturdy: Just for the member for Saanich North and the Islands — and the minister, who has reflected on this a number of times — I really don’t believe that it is particularly complicated in terms of a governance structure. You’ve got a shareholder and a shareholder’s representative in the way of the authority’s board. That’s your shareholder. You’ve got a board, and then you’ve got a corporation. Not that complicated, really.
The minister keeps referring to the public interest and the common good, and it’s been lacking. I hope the minister could articulate what it is that’s been lacking, where the public interest has not been served, where the corporation has gone wrong. What is the problem that the minister is trying to fix?
I don’t really see it. I see a company that has modernized its fleet; that has modernized its terminal infrastructure; that has had great labour relations; that, as the minister even reflects, has been lauded internationally for the quality of its service and as a great employer. You know, this is an internationally well-respected company. I, again, fail to understand the problem that the minister is trying to fix.
I believe that the introduction of this oversight on strategic direction and public interest is going to create enormous difficulty in understanding what that actually means. Perhaps if the minister has a chance to answer this question, then we can delve into what the public interest means to her, how this will be operationally implemented and what impacts it will have on the corporation. There are some very, very significant implications depending on how public interest and strategic direction are interpreted.
What is the problem that the minister is trying to fix?
Hon. C. Trevena: What this legislation is doing…. I think the member is sort of questioning the governance of it and so on. This is a governance model that was established when his party was in government, and we are keeping that same governance model.
What we are doing is giving the authority, the shareholder…. Clearly defining its role. This is something that was suggested ten years ago, back in 2009, by the comptroller general. Again, as I mentioned, Mr. Redlin brought this up in his report earlier this year — last year. Earlier this year I got Mr. Redlin’s report. This section, section 3, gives the B.C. Ferry Authority, which is the shareholder, a clear purpose.
Really, I believe in the model that we have. I would suggest we know that it is this model. Whether the member thinks it’s easy or others find it complicated, it’s the model under which we are working, the governance under which we are working.
We’re basically strengthening the Ferry Authority’s independence and giving it the tools so it can work as the shareholder, as a strong shareholder. That is the purpose of this legislation.
J. Sturdy: We’re really having trouble, I think, defining what the problem is that the minister is trying to fix. So let’s put forward a “for instance.” When we talk about the public interest, is it in the public interest for all ferries to be built in British Columbia?
Hon. C. Trevena: That’s something that the authority board would have to decide. The authority board is independent. We don’t give direction. This is giving the authority board the opportunity to have the tools to do the job of the shareholder.
J. Sturdy: This is a type of authority that has enormous implications for this corporation and for the sustainability of this corporation and for fares. This is a tremendously important authority that is not typically….
I’m very much having difficulty understanding what the purpose of this is, in that it is creating very much a grey area. It is taking away the authority of the services board to do their job on behalf of the users of this service. With the changes that the minister is proposing around increasing the appointments to the authority board which appoints the board, then they have an opportunity to do whatever they want to do.
If the government felt that it was very important to reduce fares, for example, or increase the number of sailings in any given season, the ministry, through the performance term, could decide that they’re going to increase the taxpayer contribution and say: “Here’s the next performance target. Here’s how many runs we want.”
I just don’t understand how this nebulous, undefined, ill-defined insertion of strategic direction and public interest does not just complicate the management of this organization. Again, I do not understand what problem we are trying to solve. The ministry, with all due respect, doesn’t seem to be able to answer that question either.
I really don’t care what happened in 2009. I think the parties opposite, in opposition, were at the time talking about axing the carbon tax, and now they’ve completely embraced it. I really don’t see that that’s relevant. This is about a very important corporation. As the minister acknowledges — as the minister highlights — this is a very important organization for the province of British Columbia and to the people of British Columbia, and now the suggestion here is to create a more murky structure.
I recognize the minister has said that she’s not proposing to change the governance structure, but by setting the strategic direction and public interest, especially the strategic direction part, away from the services board…. I don’t know how the services board can operate, in many ways, when you’ve got another board telling it…. I don’t know what. Nobody seems to know.
What does it mean, and where is the public interest and strategic direction not being served currently?
Hon. C. Trevena: I’d just like to correct the member on one thing, about setting the prices. I think the member is aware — he maybe forgot just in his exuberance over this legislation, because it’s really good legislation — that the Ferry Commissioner sets the price cap.
The member is also dismissing whatever happened in 2009. This was a report commissioned by the previous government — the member may raise his eyebrows — from the comptroller general. This is an office within the Legislature that we respect, that has an important role. The previous government decided, for whatever reasons, not to accept those recommendations.
We, having gone through this, thanks to the hard work of Mr. Redlin, who went through all the many…. There have been a number of reports about B.C. Ferries in different years, different reports. Mr. Redlin brought that up again — a very important piece from the comptroller general, as I say, which has legislative authority — and suggested to us, through recommendation, that this was important.
What this section of legislation is doing is making clear what the role of the shareholder is. The member may dismiss the concept of public interest, but I think the people of B.C. — all the people of B.C., for whom we have responsibility as government — expect that the public interest be considered when decisions are being made that impact the economy, the social life, the welfare of people in B.C.
J. Sturdy: At no time have I dismissed or would I suggest that we dismiss the public interest. I am asking, and I’ve asked I don’t know how many times now: what areas of public interest are not currently being served?
[J. Rice in the chair.]
Hon. C. Trevena: This amendment to the legislation strengthens the role of the shareholder to include broader issues than it presently has had to consider when it is giving strategic direction or providing strategic direction to the services board, to B.C. Ferries. It is ensuring that the shareholder has the ability to do the job that people would anticipate a shareholder does. The tools that this legislation provides will allow the shareholder to act in an independent manner in the best interests of, as the shareholder defines — not as I, as minister, define — the public interest.
J. Sturdy: Well, again, the minister wasn’t able to articulate what area of public interest is not currently being served, because the implication is that it’s not. The implication is that the strategic direction has gone sideways and that the public interest is not being served.
Recognizing that we’re not going to get an answer, perhaps the minister could tell us whether she has consulted at all on these changes with regard to the services board or the corporation itself. Did she get any comment from them on how these changes could affect the operations and efficiency of the corporation and services it provides to the public?
Hon. C. Trevena: Mr. Redlin, when he was doing his report, had…. It was very thorough. I know that he had a huge amount of engagement with the authority board, with the services board, and with the executive. He made recommendations, a number of which we have accepted and which are reflected in this legislation.
We have the comptroller general’s recommendations, which are likewise reflected in this legislation. I think that both are important because we have had that outreach.
Likewise, I have conversations with the CEO, with both the authority and the services board, when it is necessary and/or appropriate. It’s not every single day. But we feel very confident in this legislation, where we got to and how we got to this legislation, having had, through Mr. Redlin and through other discussions, many conversations about where we are and where we would hope that B.C. Ferries is through the active shareholder.
J. Sturdy: Has the minister met, on this issue, with either the ferries services board or the CEO of B.C. Ferries to discuss with them the implications of this legislation?
Hon. C. Trevena: To the member, as I’d mentioned before, a lot of work was done by Mr. Redlin in his report, but I did talk with the B.C. Ferry Authority board when we tabled the legislation.
J. Sturdy: Thank you for that. So the minister has not met with either the services board or the ferry corporation itself on the potential changes to this legislation and the impact on both the services board and the corporation itself.
Hon. C. Trevena: Yes, I’ve talked to the CEO, and I know there has been correspondence between the CEO and my deputy. I’ve reached out to the chair of the services board also. We do a lot of outreach a lot of the time, and as I say, there’s been a lot of work that’s gone into this legislation. I feel very comfortable and confident that it is going to ensure that the shareholder, B.C. Ferry Authority, is able to act in a way that will provide the strategic oversight that has not been enabled before under the model that we inherited from the previous government.
We are looking, as I say, at the recommendations from Mr. Redlin, as well as recommendations from the comptroller general. We have embedded those in this piece of legislation and look forward to seeing it giving the authority that opportunity to work as the shareholder, with all the tools it needs.
J. Sturdy: How would the minister characterize the response to this legislation from the services board chair and the CEO? Would the minister characterize them as supportive of these changes and feeling that they would be effective and useful in providing a better service to citizens of British Columbia?
Hon. C. Trevena: I think it would be quite improper for me to interpret conversations like that. I’ve got to say to the member that it’s a very strange question. I just don’t feel that I can comment on interpretations of conversations.
J. Sturdy: Well, it is certainly not a strange question to wonder what the Ferry Services board feels is the impact of these legislative changes. That’s a pretty basic thing: to understand what their interpretation of it is. To suggest that it’s a strange question is, frankly, a bizarre response. We’re obviously not going to get an answer to that question either, any more than we’d understand in what areas the public interest has not been served, according to the minister.
What are the implications of these changes to the role of the Ferry Commissioner?
Hon. C. Trevena: If the member wants to move on from section 3 to section 5 — that’s 38 — on the role of the Ferry Commissioner, I’m very happy to answer those questions at that point.
J. Sturdy: That section actually deals with a different aspect of things, in terms of the commercial interests, but when it comes to the services board and the Ferry Authority having a role in setting strategic direction and public interest, this will have to be interpreted by these bodies. It will have to be implemented in some respect and will ultimately, one would imagine, have an impact on how the commissioner performs his or her role and on what the questions are that the commissioner will be having to grapple with when it comes to providing services.
Perhaps the answer is no, there’s no impact. But I can’t imagine that the pricing…. When we have another entity deciding on public interest and strategic direction — not the operational board, not the services board — and making those decisions about how they can best provide the services to the citizens of British Columbia, when there’s another authority having some other kind of control, will that not have an impact on the types of questions and the types of challenges that the commissioner will be facing in terms of representing the interests, from a physical perspective, of the users?
Hon. C. Trevena: This does not alter the power of the commissioner, and the role of the commissioner is addressed in section 5. So if the member wants to discuss that, maybe we’ll pass section 3 and section 4 and move on to section 5.
J. Sturdy: The member for Saanich North and the Islands did touch on this issue of the information reasonably required by the authority in carrying out its oversight role. I’ll ask it more specifically.
Has there been an issue in the past? Is the minister aware of any circumstances where access to information to the authority or to the commissioner or anyone else was denied by the services board or the corporation itself?
Hon. C. Trevena: This is a new section of legislation, so it’s creating a new provision for the authority. We want to make sure that when the authority as shareholder is fulfilling its role as shareholder, it has the tools available. But this is a new section of the act, so it is giving the new powers of the authority to be a prudent shareholder.
J. Sturdy: So the minister is not aware of any time where information has been requested and it’s been denied. Clearly there is a perception of need for this, so one would imagine that it is a result of a lack of information, or it’s a circumstance, or this is, perhaps, the minister imagining that the corporation would be obstructionist.
Hon. C. Trevena: This section provides the authority with the ability to have the tool, have access, if needed. We don’t know whether it’s been denied or not in the past. As I mentioned to the member, it’s a new section. Therefore, in building this new section, we wanted to make sure that it works and that the authority, if needs, has the ability to access information. It’s just ensuring that we have the greatest amount of clarity through the legislation.
Section 3 approved.
On section 4.
J. Sturdy: Section 4 deals with term limits. Is the minister aware if there are term limits for board members in Crown agencies or organizations? Are there term limits for directors?
Hon. C. Trevena: Yes, it’s quite common that there are term limits.
J. Sturdy: What are the common…? If it’s a common occurrence, how do these term limits reflect that? Will there be continuity issues with regard to the authority or the board?
Hon. C. Trevena: Term limits are generally three to four years. We’re looking at four years in this through this legislation, as the member will say. It may not exceed four years.
This has been selected because the services board does provide strategic direction to the corporation, and we want to make sure that the quality of decision-making benefits from the experience of a longer term. So it’s three to four years. We have opted for the longer term.
J. Sturdy: Will this be retroactive to existing board members?
Hon. C. Trevena: This will come into effect through regulation.
Just to clarify for the member, there can be two consecutive terms. The legislation says: “An individual may not hold office as a director…for a consecutive period exceeding 8 years.” So you can have a board member who is there for two terms.
J. Sturdy: It’s two consecutive. So you’ll be able to do two and have a term off and then, potentially, come back for two more? Or is it two terms total? And will this, again, be retroactive to the existing membership?
Hon. C. Trevena: Yes. There is nothing that prevents somebody from doing eight years, taking a four-year gap and coming back.
J. Sturdy: Will it be retroactive? Will it affect the people that are currently sitting on the board or the authority?
Hon. C. Trevena: Yes. It comes into effect through regulation. Once the legislation is passed and we have the OIC, it will come into effect at that point.
J. Sturdy: So if you’ve already served two terms, then the regulation would prohibit you from serving another term.
Hon. C. Trevena: One of the things that this does is set term limits. We don’t know what the term limits are for the B.C. Ferry Services board. But if somebody has been on the board for more than eight years, which would be two terms, under the new legislation, that would be the end of their time, and they’d have to take four years off if they wanted to come back on to the board.
Section 4 approved.
On section 5.
J. Sturdy: This is about the commercial approach to service delivery. I wonder if the minister can tell us what she believes commercial approach means or doesn’t mean and, perhaps, why it is being removed.
Hon. C. Trevena: I know. This is an interesting piece.
Commercial approach has never been defined anywhere in the legislation, nor is it clear what it means in the context of B.C. Ferries. B.C. Ferries is a monopoly, so it will always have the advantage of being the only service providing a link between the Island and the Lower Mainland if you want to take your car — or between other communities.
The member is aware that there are no other ferry operators operating. There were attempts to have — and we’ll get on to this section later — B.C. Ferries put out to competition. Nobody came on and wanted to compete. So it is a monopoly, I think it’s fair to say.
The concept of commercial approach could be at odds with what’s very clear under the commissioner’s role, which is under 38(1)(a) of the legislation. That is “the primary role of the commissioner,” and this remains in the legislation, “is to balance, in the manner the commissioner considers appropriate” — because as the member is well aware, the commissioner is independent — “(i) the interests of ferry users, (ii) the interests of taxpayers, and (iii) the financial sustainability of ferry operators.” The commissioner has to weigh up those interests, including, as I say, the financial stability of ferry operators.
The concept of commercial is being taken out, because there’s no definition and because it is very hard to define what…. I’m sure it’s not there, because how does one define commercial when you’ve got a monopoly? But making sure that it’s still a fiscally sound, financially viable corporation, I believe, is still there under 38(1)(a), the primary role of the commissioner.
J. Sturdy: The corporation is a monopoly, I suppose, in some respects, although it does have competition for trailer drop, freight service. There’s certainly been interest in generating a passenger service, a variety of different passenger services, which haven’t been successful until this point.
But the issue of a commercial approach…. Is the minister suggesting that that’s not necessary, because it’s somehow reflected in another part of the legislation or another part of the act in terms of the commercial approach? To me, commercial approach means a businesslike approach. You’re looking for the best return for your shareholder and providing the service. I’m not sure I understand the rationale for removing it and how it makes the operation better.
Hon. C. Trevena: There’s been very little evidence that the concept of commercial approach has been used by the commissioner in making decisions, particularly in light of the fact that we have kept in the amendment the original, which is that “the primary role of the commissioner is to balance, in the manner the commissioner considers appropriate, (i) the interests of ferry users, (ii) the interests of taxpayers” — so the interest of the public — “and (iii) the financial sustainability of ferry operators.”
So that balance, whether it’s a three-legged stool or however you’re looking at that balance, is there. The ferry commissioner, in making his or her recommendations, will be looking at that, which looks at the financial viability and ensuring that we have an economically sustainable ferry corporation.
J. Sturdy: The quote that the minister just provided out of the commissioner’s role — doesn’t that actually speak to the issue of public interest and strategic direction in some respects?
Hon. C. Trevena: This is about the commissioner. The public interest in the authority is a separate section, and this has been part…. We are adding that the commissioner does work in the public interest.
But there has already been the construct that the commissioner work in “(i) the interests of ferry users, (ii) the interests of taxpayers and (iii) the financial sustainability of ferry operators.”
J. Sturdy: No, I’m aware of that. That commissioner’s role in overseeing the public interest in terms of rates and fares seems to be, in some respects, duplicating what is now being proposed for changes to the authority. The commissioner has the role of looking after the public interest.
[N. Simons in the chair.]
Hon. C. Trevena: The concept of commercial approach…. I’d like to quote from Mr. Redlin’s report, and I’m sure the member has read it a lot. It says:
“…section 1 of the act does define what a ‘competitive service’ is” — in particular interest of what the member mentions, the drop-trailer services — “there is no definition of what is meant by a ‘commercial approach.’ This may be one reason why there’s little evidence of the commissioner overtly requiring a commercial approach, though the principle has likely informed the price cap process. Competitive services are discussed in the orders of the commissioner on drop-trailer service, but there have been no orders directly defining or explicitly mandating a commercial approach.”
It brings back the concept of public interest and adding in, explicitly, “in the public interest,” in addition to the fact that there is in the interests of ferry users, in the interests of taxpayers and the financial sustainability of ferry operators.
This section — ferry users, taxpayers…. It’s a phrase that I find concerning, but interests of ferry users, taxpayers and the financial sustainability of ferry operators looks at very much ensuring that the ferry system is going to continue to be commercially viable and not be overly onerous. When it comes to setting fares, you’re not going to be doing what happened in the past, where fares were inflated to cover costs, when there was no cross-subsidization.
But “in the public interest” is the broader concept, going back to what we were talking about before, which is the broader good for all the people of British Columbia — that we as policy-makers have to be concerned about the commonwealth, the common good. That’s where we’re looking at the public interest, and that is why that is in that section.
So commercial is not defined. We believe that that’s still going to be covered, adding in the concept of public interest for the Ferry Commissioner as well as separately for the authority. But as the member is well aware, both are separate.
J. Sturdy: Is the minister not concerned or sensitive to the criticism that she just…? The minister and Mr. Redlin had been critical of no definition of the commercial approach, yet they now put in place two undefined requirements of public interest and strategic direction.
So on one hand, we’re suggesting that because commercial approach hasn’t been defined in the past, it should be removed. But let’s put in place two other definitions, which are incredibly nebulous in terms of what is strategic direction and what is public interest. Shouldn’t those be defined as well, both for the commissioner but also, more importantly, I think, for the authority?
Hon. C. Trevena: The removal of a commercial approach is really…. Removing the concept of commercial approach or the words “commercial approach” does not take away the concepts which the commercial approach is working for, which is making sure that the ferry system is making money. You don’t want a loss-making ferry system, because you want to be able to ensure that the ferry system is making some money.
This isn’t the be-all and end-all of the ferry system. It is, as we say, a monopoly, so how do you have a commercial approach in a monopoly? But we wanted to comfort the member by the fact that the essences of a commercial approach are covered still in the legislation, in part of the legislation that was always there. So by withdrawing the words commercial approach, we’re not lessening anything that will ensure the financial viability of the ferry operation.
J. Sturdy: Is it not true, though, that the removal of the commercial approach aspect — and how that implementation is affected through the commissioner remains to be seen — allows for a broader definition of public interest to be applied? This could have significant implications.
I think, specifically, if we looked to, say, a requirement for where ships are constructed, for example, where vessels are constructed…. The minister has been very clear in the past that she would like to see essentially all ferries built in British Columbia. As an aspirational goal, I think it has some merit in terms of the development of a shipbuilding industry. But from a commercial perspective for the commissioner, the commissioner would need to, at this point, see where the best vessel provision can be provided through a commercial lens, through understanding that it’s going to have an impact on the bottom line of the corporation. So is this a bit of a…? Would this removal facilitate a requirement to have vessels built in a particular jurisdiction?
Hon. C. Trevena: Continuing the discussion of how a commercial service may or may not impact the monopoly of B.C. Ferries, I’d just like to clarify for the member that the words we are removing are: “ferry operators” — the one ferry operator — “are to be encouraged to adopt a commercial approach.” So it’s not saying that there has to be a commercial approach.
We’re saying that this can be removed because the considerations of a commercial approach are captured in the concept of the interests of ferry users, the interests of taxpayers and the financial sustainability of the ferry operators.
Further, what we are maintaining from the previous legislation, which was still going to be in section 38, the “Role of commissioner,” is that “ferry operators are to be encouraged to be innovative and to minimize expenses without adversely affecting their safe compliance with core ferry services.”
So I think that that also allows interpretation by the commissioner for what can and can’t be done at the suggestion of B.C. Ferries and the B.C. Ferries services board.
J. Sturdy: Fair enough, to the minister, although I think it does…. It’s a tone. It’s a perspective to look at things commercially as opposed to not commercially, whatever that means. I don’t understand why this is a priority.
I think, at this point, we should keep going in this particular section, which also talks about greenhouse gas emission targets. Now is there…? Well, I’m sure the minister’s aware of this. But perhaps the minister can tell us what those greenhouse gas emission targets are.
Hon. C. Trevena: What this does is…. As a government, we’re not able, obviously, to prescribe to B.C. Ferries, to say that B.C. Ferries has to meet the targets that we have through CleanBC. But through CleanBC, we have very strong targets, emissions targets, that we are anticipating reaching in our inland fleet, for instance, which is owned by the Ministry of Transportation. We’re going to be all electric by 2040.
We cannot say to B.C. Ferries that they have to do X, Y or Z, but through this change in legislation, through this amendment, we can ask that the commissioner — who is the overseer, the one responsible — encourage ferry operators…. Again, the commissioner can’t use suasion. He or she can use whatever encouragement they can to meet provincial greenhouse gas emission targets.
We would very much like it if B.C. Ferries either meets or exceeds the targets that are set out in CleanBC. We as the ministry are working assiduously through our own ferry fleet, working with B.C. Transit and working with others where we have a more direct ability to ensure that government targets will be met. We cannot tell B.C. Ferries…. We can work through the legislation, giving the Ferry Commissioner the opportunity to encourage B.C. Ferries to meet these targets.
We would hope that B.C. Ferries, of its own volition…. It’s already moving to LNG ferries. It’s moving to dual fuel. It’s making moves of its own volition. But this is to put that in legislation, that the commissioner is encouraging the ferry corporation to meet those targets.
J. Sturdy: Specifically, what targets would they be encouraged to meet? I don’t believe they’re sectoral targets. We’ve got global targets. What targets would the commissioner be encouraging the ferry corporation to meet?
Hon. C. Trevena: We’re not talking about sectoral targets; we are talking about global targets. This section will encourage, we anticipate, B.C. Ferries to work to meet those targets, being very well aware of the impact. Forty percent of emissions come from the transportation sector.
Diesel-powered ferries, everybody knows, are large emitters of greenhouse gas emissions. B.C. Ferries has already moved towards LNG, towards dual fuel. I know that it’s been criticized for not bringing in electric ferries, but the new Island class ferries that B.C. Ferries is bringing in are hybrid diesel and battery powered. They can be moved to full electric over time, anticipating. So B.C. Ferries is already working.
The legislation for greenhouse gas reduction targets 40 percent below 2007 levels by 2030, 60 percent below 2007 levels by 2040, and 80 percent by 2050. We’ve got a very aggressive plan for dealing with greenhouse gas emissions. I know that the member was trying to ask the Minister of Environment questions, in his estimates, about this. I don’t know if it was about this, but he was trying to ask him questions.
We do have a very aggressive approach. We as a government cannot tell B.C. Ferries that they have to do something. We cannot mandate them, but we can, through the commissioner’s role, urge reductions in greenhouse gas emissions — that the global targets be considered, largely when doing capital projects. Capital projects are fleet procurement.
J. Sturdy: I think I heard the minister say or acknowledge that in fact B.C. Ferries is already doing this in many respects. I understand that announced today was the new Kootenay Lake ferry, which is exactly the same. It’s electric-ready, I believe. Is it a natural gas ferry or a diesel ferry?
Interjection.
J. Sturdy: The minister says it’s diesel.
It’s all to say that that ferry is completely in the control of the Ministry of Transportation and Infrastructure, yet the ministry chose to go with a ready-to-electrify ferry, which is where B.C. Ferries is on that, one of those classes. That’s certainly the indication I’ve heard — that that’s where they’re going. They will go to lower emissions as time goes on, as their model works.
What is the mechanism for the commissioner to actually encourage? Is it just a pat on the back and say: “Try and do a good job”?
Hon. C. Trevena: Well, the Ministry of Transportation, as part of government, has targets that we have to meet. As I mentioned before, the Ministry of Transportation ferries will all be electric by 2040.
Crown corporations have anticipated targets. B.C. Ferries, as an independent operator, doesn’t come under that, which is why we are turning to the commissioner, who has the oversight for B.C. Ferries, to look at, effectively, how government is working and how other bodies are working in the contemporary world, where there are targets for greenhouse gas emissions.
The commissioner, obviously, cannot tell B.C. Ferries where or which vessels to procure. The commissioner has the oversight of section 55 requests. But this allows the commissioner to ensure that what are, I believe, in contemporary life, very important values that we all have on ensuring that we reduce our carbon footprint and we reduce our greenhouse gas emissions, that we all work to targets…. The commissioner is cognizant of that, and B.C. Ferries is cognizant of that.
While the commissioner already looks over fuel plans of B.C. Ferries and is working on reduction of fuel usage and so on, this puts it into the broader, contemporary societal picture of “we’ve all got to do this.” This is the role that the Ferry Commissioner has. It’s to encourage B.C. Ferries to do that with the Ferry Commissioner’s role of oversight, since no one can mandate B.C. Ferries, as an independent quango, to abide by government’s objectives.
J. Sturdy: I think it would be possible, though, would it not, for government to put in sectoral targets, if government wished, and could be very quite specific about different sectors, in the same way that the government is currently suggesting that by 2040, there won’t be any light passenger vehicles sold with internal combustion engines. I believe that’s the proposition. That’s a sectoral target. Is the minister suggesting there isn’t a mechanism there for government to set a sectoral target on B.C. Ferries?
Hon. C. Trevena: Specific to B.C. Ferries, the government cannot impose its targets, its will, on B.C. Ferries. We just had the discussion earlier on about changing the authority makeup where we are keeping a hands-off approach, and we’re keeping the governance model introduced by the member opposite’s government when they came in. We’re keeping that model, which means that we, as government, cannot impose our targets on B.C. Ferries.
J. Sturdy: Well, through appointments to the authority, which is setting strategic direction, I think that it’s entirely possible for the government to very much influence the outcomes of B.C. Ferries, because the authority is setting strategic direction on public interest. That could very much set the determination on what the propulsion systems are and where the ferries are built, you know? What’s the cost of food? These are all things that the authority is going to have an opportunity to influence and will be outside the purview of the services board.
I suppose it’s possible that the government could look at a very specific sectoral target for a particular class of vessels, in the same way that the government is suggesting that certain types of propulsion systems in light passenger vehicles are not going to be permitted any longer. I take it that the minister is not interested in going down that road.
Hon. C. Trevena: I appreciate the member’s confusion about the way that B.C. Ferries operates.
The member has been questioning a hands-on approach by government. We are keeping a hands-off approach. As a hands-off approach, we as government cannot tell B.C. Ferries the sorts of vessels that it should be building or that it should be procuring. The commissioner has the ability to encourage, as we have put in the legislation, the ferry operators — the one ferry operator that we have at the moment — to meet greenhouse gas objectives.
The member either wants us to have our hands on and tell them to have purely electric vessels or purely LNG vessels or our hands off, to please don’t look at using the board appointment process — which, I think, is extraordinarily inclusive — to ensure that you have a board that will give the authority that ability to be an informed shareholder.
I ask the member: “Take your pick.” Which would the member like — that we have the hands on and tell B.C. Ferries, “You have to do this, that or the other,” as he is suggesting with the greenhouse gas emissions, or have it completely hands off, as he is suggesting because he doesn’t like the way that we want to change the authority board makeup?
Sorry, Member. You can’t have it both ways.
J. Sturdy: I’m sure the minister is having trouble understanding this as well. I’m not at all confused by this, not at all. I have made the suggestion on numerous occasions that the minister, through this legislation, is trying to get as much possible control as they can of the authority and, therefore, the services board and, therefore, the corporation without….
I see the member for Saanich North and the Islands is gone now, but he had asked at one point about how the corporation is run. It’s pretty clear that the reason that the ministry has not gone further, the reason that the ministry has not rolled it back into government, is because the Auditor General would require that it be on the debt, that the debt be on the provincial government’s debt. The ministry, through this legislation, is trying to gain as much control as possible without actually rolling it back into government.
I’m not suggesting that the ministry or the government should be mandating these emissions targets for B.C. Ferries. I’m not at all suggesting that. I’m trying to discover, through the minister, whether there are opportunities for the minister to do that, whether there are other mechanisms to do that and whether this is just a feel-good thing, in some respects, with the commissioner to encourage. Wonderful. They can encourage. That, clearly, has no force. It’s an encouragement.
I’m not at all suggesting that this is something that should be aspired to, other than through sectoral targets and requirements. Clearly, the ministry could put in place a sectoral target for passenger ferries, if the ministry wanted to. I’m not making that proposition. Don’t get me wrong here. I guess through this — although we don’t have any understanding of how these costs would be borne — if there were to be additional initiatives to reduce emissions, ultimately that would be borne by the user and through government contributions to the service.
Hon. C. Trevena: I know that the member feels that we’re not being strong enough or stringent enough by encouraging through this — to say that the commissioner should encourage ferry operators to meet provincial greenhouse gas emissions. That’s the same language that was used for encouraging ferry operators to adopt a commercial approach, which the member was so concerned about and which was, according to the member, equally nebulous.
It is the role of the commissioner, again, to encourage, to work with the ferry corporation, and that’s what we’re doing. The way that B.C. Ferries makes money, it makes money because we invest in it — the government invests in it — and through farebox revenue.
The Chair: I would just remind the member not to refer to the absence or presence of another member.
J. Sturdy: Oh, yes, my apologies. I’m sorry about that. I was hoping he’d have been here so I could have pointed out the answer to that particular question.
I would remind the minister that with regard to encouragement, we’re talking about one where the ministry is adding encouragement to the legislation. The previous reference was to ones that were being removed. It was: “We don’t want that one in there, so we’re going to remove it. Now we’re going to add it to this one.” I’m not sure that that’s an analogy that has a huge amount of value. Ultimately, I think the point I was trying to get to was that regardless, the costs of these initiatives fall to the ratepayer and to the government contribution to the service. I think that’s it.
Hon. C. Trevena: I’m going to leave aside the semantics of the word “encourage” and where we’re putting it in and where a section is being taken out.
B.C. Ferries gets its money through government funding and through the farebox. When it is procuring a vessel — they’re in a big capital plan at the moment; we know there is a very significant capital plan — B.C. Ferries has been looking at, as we are well aware, the hybrid electric-diesel models. This concept is to give greater oversight by the commissioner to ensure that greenhouse gas emissions are contemplated when B.C. Ferries is planning its future actions.
Section 5 approved.
On section 6.
J. Sturdy: On section 6, could the minister…? I’m sorry. It just is…. Section 6 is in reference to what?
Hon. C. Trevena: It’s consequential. It’s relating to getting rid of the alternative service providers.
Sections 6 and 7 approved.
On section 8.
J. Sturdy: Section 8, I believe, is around participant costs in the Coastal Ferry Act to accommodate “participation costs of eligible organizations.” What is the rationale for this? Why is this section being added? Has it been an issue historically?
Hon. C. Trevena: Again, just referring back to Mr. Redlin’s report, where he suggested that there be a consumer advocate here. This is really what we’re looking at. A number of utilities with the BCUC and others allow for a consumer advocate to come in and really question certain things that they’re not able to do on their own.
The eligible organization, as it says, “means an organization that, in opinion of the commissioner,” because this is done through the commissioner’s office, “(a) is a non-profit or volunteer organization, and (b) represents the interests of non-commercial ferry users,” and the one that always comes to mind for me is something like seniors advocates or disability groups.
Really what it’s doing is allowing organizations that want to have a voice in a decision that is being made by the commissioner, by B.C. Ferries — it wants to get its voice heard, but it’s not good at advocating for itself — to have the ability to work through this and be able to make submissions. Really, as I say, it is consistent with what we see elsewhere, such as…. The B.C.’s Utilities Commission Act has a similar clause in it.
J. Sturdy: Could the minister perhaps help me understand out of whose budget this would ultimately come? Who would pay for all this? Is there any containment to this cost?
Hon. C. Trevena: Just to clarify. When the commissioner is seeking public input on making registered decisions, whether it’s price caps, as we’re going through at the moment, application for relief, reduction in service or a discontinuation of service, it will allow greater public participation in that.
It will come out of the commissioner’s own budget. He’ll determine the amount, and obviously he’ll be able to control the amount because he’ll be the one budgeting it.
J. Sturdy: The commissioner’s budget is paid for by the ferry corporation?
Hon. C. Trevena: It is.
J. Sturdy: So in fact, it would be the corporation that would be paying for these costs through the commissioner. Would local governments be eligible for reimbursement of these costs?
Hon. C. Trevena: It’s not anticipated. What this is defined as, in this section, is that it’s a non-profit or volunteer organization and represents the interests of non-commercial ferry users. Those are the eligible organizations, not local government. It’s those groups that may want to participate, want to have their voice, but not be able to organize in any other way. I think local governments are pretty confident at being able to get their submissions on various sections that the Ferry Commissioner may have.
J. Sturdy: Who would be making the determination as to eligibility? Because I think by that definition, most local governments would define themselves as non-profits to some degree. Would a First Nation be eligible for these sorts of costs? What types of costs are we anticipating? Is it reports? Is it studies? Is it assessments? Is it travel to meetings? Is it consultants? How is this defined in terms of what’s eligible and what’s not?
Hon. C. Trevena: The commissioner will determine who can get it. They will pay all or some of the costs to the organization, which I’ve just defined as non-profit or volunteer organization. What comes to my mind is not local government but, say, for instance, the disability advocacy groups and seniors advocacy groups.
It is the commissioner’s opinion that these are non-profit or volunteer organizations that represent the interests of the non-commercial ferry users. It’s not the B.C. Trucking Association; it is CARP or something. It’s a volunteer organization. That’s how I would read it. It will be up to the commissioner.
I’m not going to prejudge what the commissioner does decide, but it would be surprising, I’d say, if he was working and making sure that local government had that when they have other avenues to be able to make submissions to the Ferry Authority and to the Ferry Commissioner on decisions.
Section 8 approved.
On section 9.
J. Sturdy: Under section 9, how much does B.C. Ferries annually pay under the requirement of section 57 of the Coastal Ferry Act?
Hon. C. Trevena: There is no budgeted amount for this. It’s more of, really, a billing mechanism. The commissioner’s overall budget — so his global budget — is one-fifth of 1 percent of tariff revenues from the preceding year. This is more of a billing mechanism to ensure that those non-profits who may want to be having advocacy can have the money.
J. Sturdy: Does the minister feel that the ferry corporation is the best, most appropriate source of revenue to do these consultations? Eventually, it’s the user that is going to pay the bulk of these costs. Are they the best entity to be paying those costs in terms of the public interest?
Hon. C. Trevena: For regulation of the industry, as I mentioned before, this is pretty commonplace. For instance, the CRTC — if there are people who want to participate, it’s the phone companies that would be paying. Likewise, the ferry, the Ferry Commission. We don’t have the ombudsman and everything. The Ferry Commissioner is that oversight role for ferries. It’s the organization that sets the fares and will allow for advocacy and can take complaints.
Really, it’s a model that exists very broadly. It allows for broader public participation, which is very valuable when you’re delivering something for the public good — that you have as much public participation as you can do. So it’s a very common model.
J. Sturdy: Would that model be replicated with BCUC?
Hon. C. Trevena: Yes.
Sections 9 to 11 inclusive approved.
On section 12.
J. Sturdy: We may have covered some of this already. I think it is dealing with the alternative service provision and repeals that section. I understand that it’s a section that’s rarely, if ever, been used in the past. But would the minister agree that by removing an encouragement to look at alternative service provisions, it really just strengthens the monopoly?
Hon. C. Trevena: Basically, this was a redundant section. It hasn’t been used. It’s been in legislation since 2002, 2003, and not been used, so a good 16 years of sitting on the books.
But by removing this section, as I say, which is redundant, it doesn’t mean that B.C. Ferries can’t contract out if they want to, nor does it mean that we as government can’t go to another provider and ask them to service a particular route. It allows flexibility.
You’ve still got flexibility without this section on the books that has never been used. The flexibility, I’m suggesting, has never been used either, because this section has never been used. We can still do it. B.C. Ferries can still contract out. We could still go to another provider. We’ve been working with B.C. Ferries for 16 years in this very arm’s-length relationship.
Sections 12 to 13 inclusive approved.
Title approved.
Hon. C. Trevena: I move the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 5:51 p.m.
Committee of the Whole House
The House in Committee of the Whole (Section A) on Bill 4; N. Simons in the chair.
The committee met at 5:58 p.m.
On section 1.
The Chair: Minister, do you want to make a statement?
Hon. M. Farnworth: We’ve had considerable debate on this. I know my colleague has questions that we’re going to deal with in committee stage. We do have a House amendment that we’ll put on the floor right now.
Hon. Chair, I move the amendment to section 1 standing in my name on the orders of the day.
[SECTION 1, by deleting the text shown as struck out and adding the underlined text as shown:
“service provider” means a person or
entity who
(a) will be providing, is providing or has
provided a service to an individual who is a participant or former
participant, and
(b) knows that the individual is a participant or
former participant, but does not include the designated agency if
that designated agency is the Royal Canadian Mounted
Police;
“service provider” means a person or entity who
(a) will be providing, is providing or has provided a service to an individual who is a participant or former participant, and
(b) knows that the individual is a participant or former participant,
but does not include the designated agency if that designated agency is the Royal Canadian Mounted Police; .]
On the amendment.
Hon. M. Farnworth: This amendment modifies section 1 of the bill by reformatting the definition of service provider. The amendment is to rectify a minor formatting issue, and the objective is to ensure that the phrase “but does not include the designated agency if that designated agency is the Royal Canadian Mounted Police” applies to the entire definition of “service provider” in both subsections (a) and (b) as intended.
Amendment approved.
Section 1 as amended approved.
Section 2 approved.
On section 3.
M. Morris: I’ll have a few questions, just because this is a new statute, and probably things might be clearer once I hear from the experts as we go through this.
Just some clarification. “The minister must designate a person appointed under the Public Service Act as the director of the witness security program.” What qualifications would this individual have? Would this be an existing position that’s already there, or is this going to be a new position under whatever qualifications the minister decides?
Hon. M. Farnworth: This will be a new position. In terms of the background required, it could be in law enforcement or a law background, but it would not be a current police officer.
Sections 3 and 4 approved.
On section 5.
M. Morris: Noting the sensitivities around this particular issue in this bill and the work that’s required in these kinds of things, I’m just wondering how detailed the information required for the minister would be. How much information is going to be revealed in that?
Hon. M. Farnworth: I would be receiving information — assuming it was me — on the administration of the program. I might get general information on the number of people in the program but would not be receiving specific information about details on individuals. That would be held very closely within law enforcement.
Section 5 approved.
On section 6.
M. Morris: Section 6, the director’s delegation powers. “The director may delegate to a person appointed under the Public Service Act….” Does this give the director authority to appoint any individual that’s appointed under the Public Service Act itself, like an existing position, or is this going to be a new position as well?
Hon. M. Farnworth: This section relates to if, for example, the director is on vacation or is unable to act. They’re able to delegate to somebody within the branch to continue their role and their duties.
M. Morris: I just want to follow up on that. So the branch you’re talking about is the Solicitor General Ministry, the public safety branch.
Hon. M. Farnworth: Yes, that’s correct.
Section 6 approved.
On section 7.
M. Morris: Again, most of my questions, I guess, will most likely reflect my concern over the sensitivity around this issue and the information that we have here. I know we’ll talk about it further on in the statute or in the bill itself as well.
This section authorizes the examination of records. Does this include police files? I think that later on it gets down to that, but I guess what I’m curious about is: does it include police files from agencies other than the sponsoring agency itself? Can they go to other police departments, other police forces or other Canadian jurisdictions? How broad is this power that’s provided in section 7?
Hon. M. Farnworth: The police will do a thorough vetting on a person that they want to place in the witness security program. They may well look at other jurisdictions, provincially or across the country or perhaps even internationally. They will then do the assessment. Then, if the individual goes into the program, they go into the program.
The director may also say that they want additional vetting or information. The director can make that request to the police and then go from there.
M. Morris: Just a follow-up to this, then. A lot of these investigations…. When it gets to this point where we need to protect their identity and protect their well-being, a lot of the information becomes very sensitive. These are ongoing, current investigations. I’ve seen leaks occur before, and I’m sure others assisting you have seen that happen in the past. That’s one of my main concerns.
Are there safeguards in place, and is there going to be a requirement to force an agency to provide information on an ongoing, sensitive investigation that gets to this particular point here? People’s lives are at stake. There are a lot of issues at stake here. What will happen if an agency outside of the sponsoring agency says: “No, I can’t provide you with that because of our concerns over the sensitivity of the information”?
Hon. M. Farnworth: I fully understand what the member is saying. The security and safety of the individual are always paramount.
In terms of getting information that may be required, yes, the act says that you must provide the information. However, having said that, if getting that information is deemed to compromise the safety of the individual, then, of course, that will override everything. The safety of the individual is going to be paramount. That’s a key safeguard and check in this.
M. Morris: Would that be the discretion of the agency that holds the information, that’s conducting the investigation or that part of the investigation, other than the sponsoring agency, or would that be the discretion of the director?
Hon. M. Farnworth: The sponsoring agency will actually be the one that goes out to get the information. They will come back, work with the director on that and the director may make a determination that they, in fact, require additional information.
Section 7 approved.
On section 8.
M. Morris: I’m just going to make one comment on that. I’m familiar with the Administrative Tribunals Act, because I’ve worked with it extensively in the past. There will be some questions coming up. I guess I am saying I agree, and pass it, but I will have some questions later on regarding the privative clause in there.
Section 8 approved.
On section 9.
M. Morris: With respect to section 9, I guess I’m looking, again, at qualifications. I’m looking, again, at expanding, on a need-to-know basis, the number of people that get involved. I do understand the rationale behind establishing the security committee.
I guess I ask: will any of the committee members be police officers? Where are you drawing the committee members from? What kinds of basic qualifications are you looking for from these individuals, again being cognizant of the sensitivity of the information and the complexity of some of the cases that will be coming before the committee?
Hon. M. Farnworth: The member is quite correct. This is a committee that will be comprised of individuals who have to have a thorough understanding and record, a background in keeping confidential information. Legal backgrounds — law enforcement and corrections, for example — would be the kind of individuals that you would be looking for to serve on this committee.
M. Morris: Would the members of this committee be security cleared to the top secret security clearance? What’s the anticipated level?
Hon. M. Farnworth: Absolutely. They would have to be.
R. Coleman: As I read this, as I watched the debates earlier, my concern is always how many people know what, because the more opportunity for a leak puts more people’s lives at risk. As the minister knows, in the last year or two, there have been comments made publicly by people that actually put people’s names at risk, because they talked too much.
We have a five-person committee and say they have a high security clearance. I just want to be clear. I get the fact that we’re establishing a committee, and it’s four or five people, one of which should be each of the designations. I want to understand the role of that committee, but I also want to go past where it goes to “the committee may,” because there’s a term of appointment. But it also says that the committee may “advise the minister on matters relating to this Act and the regulations” under (a), which I’m assuming is relative to regulations in the legislation itself but not to individual cases, and “perform other duties that the minister may specify.”
Does this act allow for somebody to go to this committee for a decision on a witness protection?
Hon. M. Farnworth: I thank the member for his question. The idea is that the committee that’s in place…. It will be a subsection of that committee, which deals with an application that comes to it. On that basis, only they will know. So the details will not be known by the committee as a whole but rather that subsection of that committee, the panel, that is dealing with that particular application.
It will be an odd number. The reason why it is either three or five is so that you have a broader perspective in terms of being able to make a decision, as opposed to having a single individual.
R. Coleman: I think that I’ve got some more questions on this section. Maybe, noting the hour, I can move that the committee rise, report progress and seek leave to sit again. This takes us down a totally different rabbit hole from where the description of the director and the responsibilities of the director go to a committee all of a sudden. Who is the chair of the committee? Is it the director? A whole bunch of other things come to me that concern me about confidentiality, so I think we’ll have to continue this tomorrow.
Hon. M. Farnworth: I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:18 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF ENVIRONMENT
AND
CLIMATE CHANGE STRATEGY
(continued)
The House in Committee of Supply (Section C); R. Glumac in the chair.
The committee met at 2:49 p.m.
On Vote 23: ministry operations, $192,734,000 (continued).
T. Stone: I appreciate the opportunity to ask one question of the Minister of Environment here today. It might have three parts. There’s a little bit of a preamble that I want to just walk the minister through. It’s important, I think, to get this on the record as well, so if everyone could bear with me.
My question relates to a ranch just outside of Kamloops, in a community called Knutsford. It’s known as the Willow Ranch. It’s owned by Huston Cattle. This is a ranch that was established in the 1800s. The current owner, Dean Huston, has owned this ranch since 2004. The ranch is a 400 cow-calf operation. The ranch consists of 2,700 deeded acres and 27,000 acres of Crown grazing. The ranch has approximately 300 acres of hay land, from which they are able to produce three crops to feed the 400 cows. They don’t produce anything besides beef.
Approximately half of the hay land that this ranch uses is irrigated by a gravity system that flows from Roche Lake, Horseshoe Lake and Bleeker Lake, all of which have dams.
Now, the issue is this. Two years ago a ministry official responsible for dams — and I appreciate that’s not in this minister’s purview, but I’ll get to the point in a moment — out of FLNRO’s Kamloops office, contacted Mr. Huston and said that they wanted the Willow Ranch to build an engineered spillway around the dam at Roche Lake.
If the minister isn’t familiar with Roche Lake, Roche Lake is one of the most popular fishing lakes in the Kamloops area. I think several of his officials know exactly where Roche Lake is. I see lots of nodding heads. It’s a beautiful gem very, very close to downtown Kamloops. It has a provincial park and a campground. Some international fly-fishing competitions are held there. It’s an important resort area, but most importantly, it’s used by lots of people, from a recreation perspective.
The ranch, upon being advised by the ministry official for dams, hired a gentleman by the name of Jeremy Cooke, who is also out of Kamloops. He’s an engineer specializing in dam-related projects. The ranch was advised by this dam engineer that all that was required was a small spillway to be built, likely at a cost of about $200 for materials and $2,000 in engineering fees. The spillway would be approximately 30 feet long and about three to four feet wide and one foot deep, and it would, basically, just be filled with rocks.
The MLA for Kamloops–North Thompson and I actually took a quick road trip up there last week with Mr. Huston, just to see with our own eyes what was going on here. The dam that’s there appears to be in good working order, with no imminent threat of bursting, and the work required seems minor.
The official responsible for dams advised the ranch’s dam engineer that the matter would have to be shared with the parks division of the Ministry of Environment. This was despite the fact that the work involved was really minor — minor is probably overstating it: no roads to be built, no trees to be cut down and very minimal disturbance to the land. As I mentioned, it’s a very small spillway. So parks were notified, and parks requested that park permits be obtained. The ranch obtained these park permits, paid about $2,000 for the park permits.
After that process was done, parks then advised…. The rancher at this point thought that he had the approval to move forward and invest the couple thousand dollars more to actually do the mitigation work. Parks then said: “No, no. You’ve got to notify First Nations first.” So 12 different bands were notified. Those 12 bands responded to the rancher, indicating interest from an archeological perspective. In a letter, the First Nations indicated that they would be satisfied with the work going forward as long as they were paid $19,000.
The ranch advised the First Nations that they were not interested at all and that before this happened, they would, potentially, just walk away from their water licence and allow…. Potentially, it could result in the dam being breached or the dam not being managed properly and, therefore, cause significant environmental impacts to the lake, particularly with respect to water levels.
The First Nations responded to the rancher again, indicating that upon further consideration, they would accept $6,000 in payments and that they, further, would not do any on-site work. They would rely on the pictures from the ranch’s engineer.
Just to put this into perspective, again, this dam was originally built in the 1800s out of wood. It was replaced in the 1980s out of concrete. So the earth there has been disturbed twice. The ranch has the water rights from Roche Lake, and they’ve controlled the level of the water on the lake since owning the ranch. As I mentioned earlier, controlling that water level benefits not just the ranch but, obviously, all of the other users of the lake.
The ranch has spent many hours dealing with all of these different government agencies and departments and First Nations and still doesn’t have approval to move forward with this project. Again, it was estimated to be a $200 fix in so far as the rocks required. With some engineering fees, maybe you’re at $2,200. You layer on top of that the parks fees, so you’re maybe at $4,200. But the additional costs that are being suggested and that the rancher has to pay with respect to the First Nations referral are prohibitive for the rancher to be able to move forward.
This particular ranch has four other dams that they control water on, in the same water system. I mentioned those other lakes a moment ago. They’re all of the same vintage. Slightly different technologies employed, but they’re all going to need repairs at some point in the near or mid-term. As I said, there’s no resolution to this, two years later.
To sum up, if it becomes too time-consuming and cost-prohibitive for this ranch to deal with all of these issues that they’re facing on these lands, for which they’ve been proven to be good stewards, they may just have to consider giving up their water rights, and the ranch will become half the size of what it has always been. It will no longer be a beef-producing ranch. The ranch owner could always resort to selling each of his 29 titles, and the next thing we know we have a whole bunch — potentially up to 29 — of ranchettes, none of which would be producing beef in this area just outside of Kamloops. That’s not what anyone wants.
My question to the minister, in three parts, is the following. First off, in recognition of the fact that there are literally thousands of dams just like this one all over British Columbia…. Most of these dams are of the same vintage. They’re all coming up upon the need for repair; some are much more urgent than others. Can the minister advise as to what the process and the protocols actually are in the Ministry of Environment, with respect to these kinds of dam referrals from parks to First Nations? That’s the first question.
The second question is: are there any plans within the ministry to streamline this approval process, specifically respecting the referral to First Nations?
Third, what would the Ministry of Environment or the government, more broadly…? What would the government’s plan be if private landowners — ranchers, farmers, like Dean Huston — were to simply throw their arms up in the air and say: “Enough is enough; I’m walking away”? That’s, thus, potentially jeopardizing the safety and the reliability of thousands of dams across the province — again, largely because of the time-consuming and cost-prohibitive requirements related to even the most insignificant of maintenance work.
Last but not least, would the minister be willing to commit to directing the relevant officials from within his office or the Ministry of Environment, up in the Kamloops office, to actually sit down with Mr. Dean Huston at the earliest convenience to work with him on finding a path forward here?
This is a hard-working rancher who wants to continue on a multigenerational ranch that produces some great beef for British Columbians. He describes himself as an environmentalist. He’s very conscious of the important work that he does, that his ranch is expected to do, to properly maintain the dams that are associated with his water licences. He’s trying to do the right thing.
I’m hoping the minister would acknowledge that two years of process, from beginning to end, not all of which involves his ministry…. When you put yourself in the shoes of this rancher, that’s not an acceptable time frame to obtain necessary approvals to do work that he could just simply walk away from. He doesn’t want to do that.
Those are the four parts of my question to the minister. I appreciate any and all information that he can provide, either today or subsequent to today — as soon as possible. Again, I would really hope that the minister is willing to direct his staff in Kamloops to actually sit down with Mr. Dean Huston in the very near future to work with him to find a path forward.
Hon. G. Heyman: Thank you to the member for raising the question on behalf of his constituent, and potentially on behalf of other citizens of B.C., to talk about this process.
First of all. I think the member knows this, but I want to make sure anybody who is observing the proceedings in this rather darkened room on a sunny spring day will understand that this particular set of circumstances doesn’t have anything directly to do, in terms of the ministry, with the Water Sustainability Act. That’s under the auspices of FLNRO, and questions about determinations under that act to repair infrastructures are best directed to them.
This is a unique situation, but it could happen again, where the actual dam is in a park. That’s why the parks branch in our ministry got involved. Any activity that takes place in a provincial park, as the member knows, requires a park use permit. That’s where parks came in. As a matter of law, not ministry policy but case law, all park use permits have to be referred to First Nations for their consideration under our duty to consult. That’s exactly what happened here.
But we certainly are interested in those referrals and the determinations of Indigenous interests and how they impact people who are seeking to find out what they have to do to undertake a particular action — whether they’ve been ordered to or not; in this case, they were ordered to — and have a fair and expeditious process. That’s important, and we would encourage anybody going through a similar set of circumstances to contact parks staff for answers to questions, advice about what the process looks like and any help in making their efforts, their time and their money be used more expeditiously and effectively.
The member’s second question was: do we have any plans to streamline the process? The answer is that we’re always looking for ways to streamline our processes, our systems and our work flows. The only constraint on that, of course, is we have a legal duty, a legal obligation, to consult and to address the referral to First Nations, so we have to operate within that legal constraint.
In terms of the ministry plan for what happens if private landowners essentially give up in frustration or believe it’s too costly and walk away and, therefore, leave infrastructure unattended…. I mean, if there was to be a plan for that, it would be a FLNRO plan, not a Ministry of Environment plan.
But I think a better answer to the question, from my perspective — and I hope it’s one the member wants to hear — is that our plan is that people don’t walk away, that we assist them to work through the process, that necessary infrastructure repair happens and it happens in a way that is affordable and reasonable for the people being asked to undertake the work, that they can continue to ranch, and they can continue to protect the water values and whatever other recreational tourism or local community values exist. That is the goal of the ministry and government, as I’m sure the member understands.
Finally, the last question was: would ministry officials sit down with Mr. Huston and discuss what’s happening? The answer is: absolutely, yes. Assistant Deputy Minister Jim Standen, responsible for parks, is behind me, and he is making sure that happens as we speak.
D. Clovechok: To the minister: I know your time is precious, so I’ve got a couple of quick ones for you. Thank you to all the staff, too, for being here to help out.
The minister would be aware of the fact that the Trans-Canada Highway in the Kicking Horse is being started in 2020. As a result of that, there are going to be road closures on either end of the season, either the spring or the fall. As a result of that, the 24-hour mussel station — the zebra mussel station that is right now located in Golden at the tourist information centre — will not really be able to collect all the cars because it’s all being closed down.
My question is: when the highway closure happens on the Trans-Canada Highway in the Kicking Horse, will that mussel station be able to be diverted to Radium as a 24-hour station? All the traffic that is not coming through the Trans-Canada Highway will then go through Highway 93, 95, through the Kootenay Park, down through Radium and then access Golden that way — or head south if they don’t want to get tied up in the traffic.
My question is: will that mussel station, that 24-hour station, be moved to the Radium area during those highway closures?
Hon. G. Heyman: Thank you to the member for the question. The general answer to the question is that we’re constantly reviewing the allocation of resources for mussel defence, if you will, ensuring that we’re not victimized by invasive mussels in British Columbia, and we’re constantly looking to see if our resources are adequate, are placed in the right places and if they’re spread out over the right time periods. The specific answer is: if the traffic moves to Radium, so will the inspection.
D. Clovechok: To the minister, I appreciate that, because it’s so important. The other question around zebra mussels that I have is that…. During the summer months, as the traffic increases through the Columbia Valley and all the way, actually, from north in the south corridor…. From the northern part of B.C. to the southern part of B.C., along the Alberta border, we’re seeing increased traffic. The population in my riding increases anywhere from 30,000 to 50,000 people in any one given summertime.
I’m wondering if the minister can let us know if it is possible for border communities to have 24-hour mussel stations set up that aren’t already 24-hour stations. We certainly don’t want any of that happening. Quite frankly, there are boats that are coming through in the middle of the night in those stations that are not manned 24. If they get by us, we’re in big trouble. My question, therefore, is: when will we see 24-hour manned along the Alberta-B.C. border?
Hon. G. Heyman: Thank you to the member for raising, once again, this important issue. Many people, as I’m sure the member knows, raise it with us when we meet with communities. It’s raised at Union of B.C. Municipalities conventions on a constant basis, and we have made changes in response to many of the suggestions and questions asked.
I want to start with a bit of a general description, a very general description, of the system we use as mussel defence. We rely on a perimeter defence system, which essentially means that we work in cooperation with neighbouring jurisdictions — for instance, Alberta, Saskatchewan, Montana. We share information, which means that we will get advance warning if there is, potentially, a contaminated boat coming near us.
We also, in addition to the inspection stations, have commercial vehicle safety and enforcement staff who assist with monitoring. Canadian Border Services also assist with monitoring. If we see a potential for a particular risk, we also have the flexibility to move staff and resources around to the area where the risk may exist. About a year ago, in addition to that, we added more funding for the program, and over the course of the last couple of years, we’ve added two mussel-sniffing dogs as our newest conservation officers working on mussel defence.
We take a risk-based approach to this. There are no immediate plans to open all the stations 24 hours a day, but if we saw the need or a potential threat that indicated a need, we’d certainly approach the Minister of Finance and Treasury Board to seek the funding to protect British Columbia against the very significant economic damage that would result from letting a boat through with invasive mussels attached.
D. Clovechok: I appreciate that answer. I’ll leave it at that. The CB guys don’t check boats though. They check trucks, and trucks aren’t pulling boats. In any event, it’s really important, and I think he’s very aware of how critical this is for the region — all of British Columbia, for that matter. We’ll move on.
The final question that I have, of course, is around a passion that I have around Revelstoke and a conservation officer for Revelstoke. I don’t see anything in this year’s budget for the conservation officer in Revelstoke. I’m just wondering why that is.
Hon. G. Heyman: Well, in general…. Budget 2018-19 added 20 new conservation officers. In ’19-20, we’ve added two more conservation officers. In each of the next two budget years, there will be one new conservation officer.
Where they are permanently located is primarily a function of call volumes and incident activity. We have a significant number of communities that exceed Revelstoke by quite a margin. Deputy Minister Ursus and Deputy Minister Jim Standen or one of his staff would be happy to review both the numbers and the process for determining where people are assigned based on that, and how we make those decisions. That might be useful for constituents in Revelstoke and the surrounding area, who, understandably, would love to have a conservation officer.
What I can say is that we do revisit staffing if the situation changes. We recently had a seasonal conservation officer in the area specifically to deal with caribou issues. We also use the zone model. In the case of Columbia River–Revelstoke, it’s based out of Golden. So if there are incidents, people will move within the zone to respond to the calls and, if necessary, would come from outside the zone to offer assistance. That is the process that we have in place, that is playing out now.
D. Clovechok: I appreciate the answer. The Golden model is not working. I can tell you that. But I will take you up on your offer to meet with your staff and have those conversations. One of the things that we talked about at last estimates was the two-man concept with the conservation officer service. You had mentioned that to me the last time.
So my question is if Revelstoke…. And they are willing. The mayor is watching today. If the minister is willing to sit down with the mayor of Revelstoke and explore the concept of Revelstoke potentially paying for the second officer, in order to get the two officers in Revelstoke….
Revelstoke needs a conservation officer. Frankly, the Golden model is not working. The member that you put into Golden, again, should have been in Revelstoke, with all due respect, because that’s where the issue is — not in Golden. It’s in Revelstoke.
The question that I have then is: would the minister be willing to sit down with the mayor of Revelstoke and discuss that potential?
Hon. G. Heyman: Thank you to the member, again, for representing the community. I’m always willing to sit down with local elected officials to discuss any proposal, but very specifically to this one, absolutely. I would be happy to sit down, along with Assistant Deputy Minister Jim Standen.
J. Tegart: I’m back. Good afternoon to the minister and staff.
I’m here this afternoon as co-chair of the steelhead caucus within our caucus. I want to talk a little bit about the iconic fish, the steelhead. Steelhead is incredibly important in my region, not only as a food source but as a tourism industry. My community of Spences Bridge depends on steelhead fishing in order to survive, and as we all know, steelhead are in trouble. I would like to ask the minister exactly how many dollars are in your budget for projects targeted at steelhead recovery.
Hon. G. Heyman: Thank you to the member for the question. Steelhead are incredibly important, not just to the member’s constituency and surrounding areas but to all British Columbians.
The answer is that while we work with Forests, Lands, Natural Resource Operations and Rural Development on planning — we have some fishery scientists in our ministry — the responsibility for habitat restoration and budgeting is with that ministry. I understand that their estimates are now done, so the member can’t ask the question there, but we will try to get the answer outside of this format and forward it to her.
J. Tegart: Well, thank you very much.
Last year it was estimated by DFO that possibly 80 returning steelhead were caught and killed as a bycatch of the chum salmon fishery. It’s a huge proportion of the estimated 200 to 300 spawning steelhead in the Chilcotin system. Would you endorse a total shutdown of gillnetting at the mouth of the Fraser River when steelhead are returning to spawn in our freshwater rivers and streams?
Hon. G. Heyman: Thank you, again, to the member for the question. I’d reiterate that protecting a species like steelhead, which is under such significant threat, is critically important, as are measures that can contribute to that. The way that my ministry contributes to those discussions and decisions is through scientific information. But I think, as the member knows, the decisions around a commercial fishery are not only outside my ministry; they’re outside provincial jurisdiction. So that’s not really an appropriate question for me to speculate on in this forum.
J. Tegart: I guess I was looking for an advocate. And I tell you, our steelhead need a few of them. Part of the issue with steelhead, and the frustration of those of us who are advocating on behalf of the fish, is not knowing who’s who in the zoo. You know, there are three ministries in the provincial government which have been identified — Environment, FLNRO and Agriculture — as some sort of responsibility for steelhead. I guess, as someone who has been advocating, well, since I was elected, it’s tough to find that one person or the one ministry that actually is the voice for a fish that we’re watching disappear.
My question to the minister is: can you share with me who has the primary provincial responsibility for steelhead, and which is the lead ministry that would have money in their budget for rehabilitation?
Hon. G. Heyman: FLNRO is the lead ministry on this file. Again, we offer to get some information, or assist in getting the information, for the member. We’ll do that.
P. Milobar: Sticking with a couple of more parks-related questions here, there was an article on April 15 in the Peak newspaper in regards to Joffre Lakes and the day use parks and around B.C. Parks potentially reinstituting day use fees. Has there been a final decision on whether or not day use fees in the Joffre Lakes area will be instituted for this coming season or future seasons?
Hon. G. Heyman: There are, I think as the member knows, no fees currently, no plans to put fees in for this season, although we are moving to a 100 percent reservation system for back-country camping, and we’re working with the RCMP and the Ministry of Transportation and Infrastructure to try to address some of the over-crowding and parking issues at the park.
We have a survey out. The Peak article was a reflection of some of the questions asked in the survey, which asked the public a range of potential solutions. The survey is actually still open, so we’re still consulting. We have no plans. We’re interested in the feedback we get.
P. Milobar: Back in 2011, when it looks like the fees were removed, it was almost about an $850,000 revenue stream that was removed. You jump forward eight, nine years. Of course, it’s got to be in the $1 million plus range nowadays, accounting just for simple inflation, let alone user numbers.
I guess the broader question then is: if Joffre Lakes isn’t going to see day use fees this year, but it hasn’t been ruled out completely, and if there’s a decision to be made around day use, is it going to be for singular parks, or is it going to be for B.C. parks in general for day use for those day use type areas?
Hon. G. Heyman: When the decision was made on dropping the fees…. Certainly, the use of the park has expanded significantly since then, which is why we’re trying to deal with a range of problems.
We are still, as I said, in the middle of a consultation phase. We’re interested in the feedback from the general public, but the overriding principle that we want to maintain is affordability of B.C. parks for all British Columbians, particularly British Columbians who can get away from hustle and bustle with their families for a day and enjoy a B.C. park.
P. Milobar: I guess I’ll rephrase the question, then. My understanding is the survey is strictly for the Joffre Lakes Park. It, specifically, is also starting now to get feedback on the potential around day use, based on feedback and a potential direction for B.C. Parks to manage crowds.
Is the minister committing then, I guess, to the same public engagement process if there is a move for each individual park? Or will it be a provincewide discussion and input before day use fees are implemented in other parks? I hope I’m being clear here. This is very specific to Joffre Lakes Park, but is there a willingness to make sure that there’s a public engagement piece before any provincewide decision might be made around day use park fees?
Obviously, people feel very strongly about them. I know the minister is aware of people in my area…. Some are happy with the 100 percent reservable, some of them not so happy with the 100 percent reservable. Even within B.C. Parks, I’m sure people were…. Some were happy with day use fees, leaving some not so happy that day use fees left and the parks got busier.
Is there going to be an assurance there will be public consultation provincewide if this turns out to be a provincewide look within B.C. Parks at what to do with day use fees within day use parks?
Hon. G. Heyman: To reiterate my previous point, we’re very committed to maintaining affordability for British Columbians, particularly British Columbians who want to take their family away someplace where they can enjoy the beauty of British Columbia and the spectacular nature in British Columbia, even if it’s for just a day. We are not contemplating day use fees on a provincial basis, but were we ever to do that — and we’re not currently doing that — we wouldn’t make such a significant move without consulting the public of British Columbia.
P. Milobar: Sticking with some Parks programs, a program that I found to be very beneficial, especially for university students, is the student park ranger program that got underway last year and continued on this year. My understanding is that there’s been a reassignment of some of the areas and the sizing of the groups and where they’re located. This is actually a question on behalf of my colleague, who’s in the same area as Joffre Lakes Park as well.
Really, the question is around…. Last year the group was in the Sea to Sky area. This year that’s been removed. My understanding was that the groups last year were about six per group, and this year they’ve been shrunk down to four but more groups of them. In spite of there being more groups, in our understanding, Sea to Sky has lost their group completely, and it’s been moved over to the Sunshine Coast. What was logic behind removing something from a corridor with so many parks in its system, that Sea to Sky area?
Hon. G. Heyman: The member’s correct. The rationale of moving the crew to a new area is because we knew from the start of the program that we wanted as many areas of British Columbia as possible to benefit from the initial piloting of the program and the program as it stands. As the member knows, we don’t have enough crews to assign, in any given year, to all of the areas of British Columbia that could benefit. So we’ve moved them to a new area this year.
Obviously, one of the ways that we can ensure that more areas in British Columbia can benefit from the student ranger program and more young people in British Columbia can benefit from being part of the student ranger program is to have more revenue from the very successful licence plate program to fund even more student ranger teams and build the capacity of that program to both go to new areas of British Columbia as well as go back to areas that have already benefited but could benefit further still.
P. Milobar: Switching over — a quick question or two around the environmental assessment process, actually a project-specific question. We have Blackwater in the northern area of the province. It’s been recently approved by the feds. I’m just wondering where the timeline is at within the province for an approval or not with that project, given the various changeovers of new versus old process and that.
Hon. G. Heyman: Well, Blackwater is under the old process. In fact, all projects that are currently before the environmental assessment office are under the old process as we work on the regulations to implement the new process. Blackwater is under consideration by the environmental assessment office. I understand that process is nearing completion, and I expect that the package with the recommendations will be forwarded to myself and the other minister responsible fairly shortly.
P. Milobar: Okay. Thank you.
I’ll just switch over again, then, to a few — everyone’s favourite topic — CleanBC questions. Just to clarify, and I’ll try to follow up with the Minister of Finance, as well, on this. Certainly in my area — in a lot of my colleagues’ constituencies, as well — I’m getting more and more bills sent to me, people’s personal home heating bills from Fortis. After April 1, it was already…. The carbon tax was already higher than the cost of gas pre–April 1 lift, at $35 a tonne. Now, at $40 a tonne, it’s even that much more noticeable. I think it was that people noticed it when it said: “April 1 and the carbon tax will be increased.”
It’s increased to 1.9864 per gigajoule, and then you look at their commodity charges, and the cost of gas is 1.549 per gigajoule. The carbon tax is now higher than the cost of gas on people’s home heating bills. That’s only the first two rate increases. There are obviously two more rate increases coming.
Has the minister had any discussions, within the confines of CleanBC and trying to meet targets, of the practicality of now having a gas tax, a carbon tax, on people’s home heating that, by no fault of their own at this point, is actually higher than the cost of the fuel that they’re burning?
Hon. G. Heyman: As the member knows, the carbon tax is based on emissions intensity, not on the price of the commodity, and 75 percent of the carbon tax today was introduced 11 years ago by the former Liberal government. But what is important to note is that while the carbon tax is a budget measure and a Ministry of Finance measure, CleanBC provides a number of measures to assist British Columbians to deal with the impacts of the carbon tax, which is exactly the purpose of the carbon tax, by reducing their emissions — in this case, with a series of measures to assist British Columbians to reduce their need for home heating gas by energy efficiency measures, appliances and retrofits.
As recently as last week, there were announcements of new grant and rebate programs, and there are yet more to come. That is the way we’re choosing to address affordability for British Columbians while at the same time addressing our collective need to reduce emissions.
P. Milobar: I did notice that some of the rates had gone up. Some of the program recapture has gone up.
The reason I ask is because it is meant to try to encourage people, incentivize people, to try to make changes — in their homes, in this case. But when you’re looking at the same number of billing days between ’18 and ’19…. When you’re looking at, in ’18, an average temperature of minus 12 and, in ’19, an average temperature of minus 2, the daily gigajoule usage is almost the same.
Many, many homes in our northern climates have already done what they can do when it comes to retrofitting, energy efficiency and insulation. They didn’t do it necessarily under the name of GHG emissions or anything. They did it because that’s the more modern insulating factor technology that’s out there, and as they retrofit their homes and want to have a comfortable place to live when it’s 12 below and colder, on average, through the winter months, they had to do that out of necessity.
These are the people that are asking if there’s not a plan on the horizon to recognize that as soon as it went over $30 a tonne, the carbon tax…. I’m speaking of home heating natural gas bills in particular, because this is very specific around that. That seemed to be the tipping point — where your tax was now more than the commodity you were consuming. Has there been any discussion by the minister, within the CleanBC confines, to talk to the Minister of Finance about, in home heating in particular, trying to make sure that there’s some different way of looking at this tax so that people…?
I get that it’s a commodity. It may go up, and tomorrow it could suddenly — I guess not tomorrow, but when it goes to the BCUC — be more than the carbon tax. But that’s not what people are seeing on their bills right now.
This is a stack of bills just from one colleague, let alone the other ones I have. Has there been any thought to that, recognizing that a great many of these homes…? You see that even when there’s a ten degree difference in temperature, there’s not a massive difference to the amount of energy they need to consume. There’s a little bit. It goes from 0.51 to 0.46. It drops when it gets a little bit warmer, but there’s still that baseline to try to keep a bare minimum of heat. And when they see that…. These are larger bills in the wintertime, obviously, so that extra tax starts to really add up by the end of the year for these homeowners.
Has there been any thought at all, in relation to home heating under the realm of CleanBC, to taking a new look at how carbon tax gets implemented? We have different tax rates and different tax measures for all sorts of things. I don’t see why there has to be an absolute when it comes to something as easily definable as home heating versus other source points that carbon tax might apply to.
Hon. G. Heyman: I appreciate that the member is looking for ways that the constituents who speak to him can have as affordable a life and as affordable a system of home heating as possible. We share that concern, and we’re addressing it in a number of ways.
The truth is that when the carbon tax was introduced in 2008 by the previous Liberal government, gas prices were even higher. So the impact on families was at least as great as it is today. The difference — the key difference — between how we’re addressing the issues that the member raises is that we’re not choosing, just as the previous government didn’t choose, to look at making adjustments to the carbon tax with respect to home heating fuels or with the fluctuation of prices in home heating fuels.
What we are focusing on is spending money that comes in from the carbon tax to assist British Columbians in adopting new energy efficiency technologies and equipment to reduce their energy needs and their energy consumption as well as introducing an expanded rebate system for low- and moderate-income families.
For example, effective July 1 this year, a family of four will be eligible for a rebate of up to $400 and on July 1, 2021, a rebate of up to $500. So we’re addressing the issues the member raises in a number of ways. We’re addressing it by spending carbon tax revenue and other provincial government revenue on assisting British Columbians to reduce their carbon footprint and reduce their energy use, therefore reducing their expenditures as well as giving them far broader and healthier rebates than was the case in the past.
P. Milobar: Just to clarify a couple of things. In the past, there was, first, a $100 homeowner grant, and then it got bumped to a $200 homeowner grant for homes outside of the Metro area of the province to account for the fact that people would be needing to heat their homes and to drive longer distances. That was applied to their homeowner grant — not a perfect system, by any means. But there was a very high percentage of home ownership especially outside of the Metro areas where it was intended to go to try to offset the home heating costs and the carbon tax impacts of that.
As well, the minister referenced the $40 moving to $50 if it’s a brand-new program. It is, in fact, not a brand-new program. It was started under the original carbon tax, and at $30 a tonne, it was $300 eligible per household. At $35 a tonne, it moved to $350, and at $40 a tonne, it’s moved to $400.
In fact, even on the government’s website, which I just printed off a couple of hours ago, today, it goes back to 2014, showing the payment schedules for homeowners. Unlike last year, where the minister felt that it would capture new and expanded, up to 53 percent of the population, it doesn’t, in fact, expand any of the eligibility that the previous program was laid out for originally. If you qualify for a GST refund, essentially, you qualify for a portion of the carbon tax refund, as well, within B.C.
Its payment schedule…. In fact, to get the maximum $50, you would have to be earning a household income of under $41,000 a year to qualify for the maximum this year at $400, when last year it was at $350. So I don’t want people out there to feel that there’s a new program that keeps getting marketed as if it’s a brand-new $400. It’s been a steady, incremental increase for low-income people every time there’s been an increase for carbon tax, under both governments, to try to make sure that those people are not impacted.
However, the previous government did not try to stake 10 percent of their CleanBC emission reductions on that same program. Again, I’m not sure how low-income people that are just trying to pay their bills and make sure that the carbon tax offset from whatever portion of their household carbon tax credit they get to pay that difference are going to make a difference to the carbon reduction within the province. But here it is, slated to be 10 percent of CleanBC.
Back to another thing with CleanBC. A 0.4-megatonne reduction is going to make vehicles run cleaner by increasing tailpipe emissions standards for vehicles sold after 2025. The reason I ask this question is…. It’s very interesting, because my understanding is that the EV program does not prohibit used car sales. So in 2040, it’s only a 100 percent target of new car sales, which means you will have 100 percent of gas combustion cars being sold on used-car lots and new car dealers that sell used cars as well.
I’m just wondering. Is B.C. planning on instituting its own standard for tailpipe emissions? Or are we going to do as just about every jurisdiction has done in North America and wait for the economy of California, which is larger than the whole economy of Canada, to set the standard? And by default, is that what the new pipe emissions standard will be? I’m not sure how our market in British Columbia would be large enough to drive an emissions standard change for all of the auto market, especially when they know that we’re trying to get them to stop selling combustion engines in the first place.
Hon. G. Heyman: The member is quite right. CleanBC refers to some emission reductions from tailpipe standards, but it is not our intention to act unilaterally. We would, obviously, coordinate with the government of Canada. We pay close attention to what is happening in California, as other jurisdictions in North America do, because North America has an integrated automotive manufacturing and consumption market.
The truth is that jurisdictions that are taking action on climate change see reducing tailpipe emissions as an important component of an emission reduction strategy, and we expect there to be actions in North America that can contribute to this. We will, in 2020, begin reviewing what is happening in other jurisdictions and move toward eventually adopting standards that are in line with the major jurisdiction in North America.
P. Milobar: Thank you. That’s 0.4, that we may or may not see come to fruition, outside of our control. The line above it is four megatonnes out of 18.9, which is about 21 percent of the CleanBC plan; 16 percent, if you add in the missing 25 percent as well. So either way you slice it, it’s a very significant chunk of the overall CleanBC strategy, and that is around the fuel mix. I touched on this a little bit in our last session.
I’m just wondering. Is the minister aware if any refineries in Alberta or Washington currently make this mix? Or is it going to be a B.C. specialty mix that we are going to require from the refineries that blend our gasolines?
Hon. G. Heyman: As I think the member knows, the original low-carbon fuel standard was introduced by the previous Liberal government. We are building on that in CleanBC, as well as maintaining it.
The answer to the question about…. Have discussions happened with the fuel industry about how biofuels could be mixed with fuels consumed by British Columbians to reduce the emission standards? The answer to that is yes. But they would have been conducted by the Ministry of Energy and Mines. So for the detail of those discussions, the member would have to go to that minister.
P. Milobar: Just so I can understand, I guess, a bit better, then, how CleanBC came to be…. There are a couple of ministers that have signed on to this, and the Minister of Environment has made it very clear, in town hall meetings, that he is the minister responsible for CleanBC. And I’m assuming that would mean also the minister responsible for all the deliverables in CleanBC — deliverables that speak to a reduction of 18.9 megatonnes. It’s 25 megatonnes overall, but we’re missing 6.1. We’ll figure that out in a couple of years, after the next general election.
The plan itself that people have to digest is 18.9. This is over 20 percent of the plan. Again, what comfort level, then, did the minister have in agreeing to let this calculation stand, given how significant it is to the overall success or failure of CleanBC happening, and that we will, in fact, be able to see not only the manufacturing of a refined product meet this standard but without it being at a massively inflated premium?
The questions I had a couple of weeks ago around whether or not there’d been any work done on how much per litre extra this new standard is going to cost…. As I pointed out, if it was cheaper to produce right now, something tells me the oil industry would be figuring out how to produce cheaper blends and have them on the market. One can only assume this type of blend, in particular, is going to be significantly more expensive to produce than the current 10 percent threshold, which will add an added burden of B.C. government regulation to the pump.
I’m hearing the minister say he’s not aware of any refineries that currently supply B.C. with our fuel supply producing this type of blend. Is the minister aware of any jurisdictions in North American that currently use this fuel blend so we can get a sense of how realistic it is to try to see this blend be developed for a market the size of British Columbia?
[R. Leonard in the chair.]
Hon. G. Heyman: Chair, welcome.
First of all, I want to offer some clarification. The member has, numerous times, referred to me as the minister responsible for CleanBC and noted that I described myself as such in telephone town halls, which is true.
The Ministry of Climate Change Strategy contains the climate action secretariat, which is the hub for the development of the CleanBC plan. In terms of reporting outcomes and largely being a spokesperson for the overall plan, that is in this ministry and I am the minister responsible.
But it is also true that input into the plan and responsibility for elements of the plan are spread throughout a number of ministries. The overall responsibility is one that cuts across government and that all of government is committed to, although, as with all things, there are ministers responsible for answering questions, speaking to, reporting to, being accountable for deliverables on a particular plan.
Having offered that overall explanation, I would say that California has a low-carbon fuel standard. We look at what California has very closely. We work with California. We know that if California can accomplish something, they’re essentially setting a template for North America. We’ll continue to work with them.
With respect to the 18.9 megatonnes and the four megatonnes of emissions that this particular measure represents, I would again say to the member that all of these emissions were effectively modelled — and that modelling methodology is available on our ministry website — by an extremely reputable third-party modeller, Navius.
I would also say that the 18.9 megatonnes that are specifically detailed in the CleanBC plan, with the remainder up to 25 to come to also be modelled and reported on by Navius, is significantly more emission reductions than were ever contemplated by the previous government. We’ve gone to the trouble of thinking of measures that will reduce emissions; detailing them; consulting broadly about what’s possible; working with other ministries; talking to industry; getting buy-in from industry; looking at the impacts on individuals, on business and on communities; and modelling all of that. We’ll continue to do that work.
With respect to any specific questions about refining capacity and other jurisdictions, I would refer that to the Ministry of Energy, Mines and Petroleum Resources.
I would point out that the creation…. My ministry has been working with MEMPR to look at opportunities to do just this. The production of the biofuels that could be mixed with product that comes into British Columbia from other jurisdictions could be done in B.C., could create significant economic opportunity for B.C. and for British Columbians, as well as deal with waste that is currently costing British Columbians to dispose of — as opposed to creating economic opportunity — and is contributing significantly to greenhouse gas emissions. We would reduce both by diverting that waste stream as well as by the final product being mixed with other fuels.
P. Milobar: I do recognize — CleanBC even speaks to it on page 24 — about Parkland and Prince George refineries doing some experimentation around biofuels, sludge, other ways to try to get that mix. But, as I think we’ve all become very well educated about fuel sources within British Columbia, I think we all know Parkland and Prince George do not supply the whole province. So there will still need to be a mix. California is one thing, but if Washington state in particular and Alberta, who provide our actual fuel to us, are not adopting these fuel standards either, I can see a premium being paid for the jurisdiction that needs that imported.
One question I have…. It’s funny because I was reading back through my CleanBC binder that I put together right after the announcement, and I was making up some initial thoughts in advance of estimates. It struck me, and the note said: “Why so little if fuel mix achieves three times more reduction?” That was around four megatonnes on the fuel reduction and only 1.3 megatonnes with the zero-emission program for our vehicles.
It came to light today when I was getting a briefing about the bill that, in fact, there is no restriction to stop people from buying a vehicle in Alberta, bringing it into British Columbia and registering it in B.C. Under the new EV laws, there will be no restriction on resale and sale of used vehicles of a combustion engine in British Columbia.
The 100 percent by 2040 is really only 100 percent of new cars, which could have the effect, and probably will have the effect, of actually making what is already the oldest privately owned car fleet in Canada that much older, when the bulk of actual sales will turn out to be combustion engine versus electric vehicles.
It does make sense seeing that it would be so much lower of a carbon reduction, given essentially that Navius must have been recognizing the fact that the vast majority of vehicles on the road will still be combustion engines, just either sourced from other provinces, and sold here as used vehicles, or down in the States and brought up.
To that end, though, and it ties in with the electric vehicle mandate within CleanBC, has the minister…. Again, I recognize that some of this will be in other ministries, but I don’t want to miss the windows we’ve heard with previous questions today that should have gone to FLNRO or which should have gone somewhere else. I’d rather err on asking multiple ministers and making sure we get everyone covered off.
A lot of CleanBC is around the electrification of British Columbia — the electrification of our vehicle fleets, the electrification of our homes — and trying to get more and more energy. Obviously, B.C. Hydro is a very clean energy source that’s very green. But we are a net importer of energy a great many days out of the year, at certain times of the year and certain times of the day. Is there anything within CleanBC, are there any regulatory changes happening this year, that would restrict the style of power that gets sourced from out of province to help fill and smooth out any power surges we have?
In other words, is coal-fired and natural gas–sourced electricity still enabled to be imported into British Columbia for British Columbians to use to power their electric vehicle?
Hon. G. Heyman: I think it’s important to unpack the member for Kamloops–North Thompson’s question a little bit. He used the terminology “net importer of energy,” and then he went on to talk about imports of electricity and there being certain times of the day or year or particular days where we may import electricity from other jurisdictions to use.
The important question and the only really important point about electricity use in British Columbia, because we both export and import, is whether we are a net importer or a net exporter of energy, electricity energy, over the course of a year. And we are not a net importer of electricity averaged over the course of a year. That’s an important point to put on the table.
The rest of the member’s question was then predicated on: if we are an importer of energy, are there any potential restrictions being considered on where that energy is imported from or how it plays into CleanBC? The Ministry of Energy, Mines and Petroleum Resources is undertaking a phase 2 B.C. Hydro review. I would suspect that all of those questions, if they’re to be addressed at all, would be addressed as part of that review and could be put to that minister.
P. Milobar: I guess, at this point, I’ll give the minister a bit of a break. He’ll be disappointed to hear that. I’ll probably just wrap things up here, then, seeing as it sounds like most questions need to go to the other ministers that haven’t had their estimates yet.
I will say, first off, thank you to the staff for putting up with all of the CleanBC questions.
Frankly, it is a little disconcerting. I was doing some quick scribbling today, though. Again, I’ve had a great many discussions with certain environmental groups out there that, at first blush, were very excited about CleanBC and, upon further scrutiny, were getting more and more concerned.
It wasn’t just about the missing 25 percent. The missing 25 percent, of 6.1 megatonnes, is going to be hard enough to achieve on its own. I think, as most people know, the first bit of work is usually the easy, low-hanging fruit on any type of plan like this. As you get further and further in, it gets tougher.
We have a CleanBC that’s built on a 3.4 megatonne assumption for LNG. We know it’s permitted for 26 megatonnes. We know that they can buy carbon offsets around the world at a lower rate to make sure they still stay down at their 0.15, meet world-class standards and still be able to operate paying no more than $30 a tonne for carbon.
We know a whole bunch of other things out of this estimates as well. We know that the cost of fuel will go up based on this new fuel mix. There is just simply no way to create a brand-new fuel mix that doesn’t exist in this part of the world without seeing it increase costs or, as I say, refineries would already be producing at a lower-cost production rate. We know, as well, that any changes to this will blow that initial 18.9 megatonnes out of the water, let alone the overall 25 megatonnes that the plan is supposed to actually be targeting.
When I looked at where the $902 million…. We also know that the government is going to collect $2.35 billion, now that the tax is no longer revenue-neutral. That’s just the extra difference between $30 and $50 in a four-year window. We know there’s only $902 million accounted for. We know there’s only about $111 million left in contingencies, out of the $299 million, based on the minister’s earlier answers. So there’s not a whole lot of new programming that could happen in innovation.
Then I started looking at where some of the dollars go today, and I was like: “Wow.” At first cut, you’re at about $206 million for the ZEV program, the charging program, the active transportation program, the building code, public housing upgrades, community support, training and some reporting functions. At $206 million, that’s a lot of programs. It gets you a whopping 2.3 megatonnes, for almost — what is that? — 23 percent of the overall budget of CleanBC.
Two percent of that is actually for older housing stock upgrades, public housing stock upgrades, which were probably going to have to happen anyway. It’s good they are happening. People deserve to live in a safe, secure and climate-controlled home, whether it’s public housing or not. But that’s two out of that, so we’re at 0.3 for the ZEVs, and that’s about it.
I say that because the rest of some of these things, that have no emissions attached to them whatsoever…. Reductions in the CleanBC documents, including in the budget update document — they have no emission reductions attached to them within the CleanBC plan. But on things like the building code, a step code being mandated to the highest level possible across this province…. We know, by talking to homebuilder organizations across this province, that it’s going to add about $70,000 to $80,000 per home at the construction phase for very small gains with energy efficiency, and that is hardly addressing housing affordability for anyone in this province.
When you really start to crunch the numbers and look at things, it does get very concerning. When you look at how much still needs to be figured out, when you look at how much approximations are made, when you look at even something as simple as 10 percent of the low-income program…. At $223 million, that’s not even in my $206 million. If you do that in there, you’re at $429 million. You’re at about half of CleanBC’s funding, and you’re still only at 4 megatonnes.
It’s still unclear how a low-income subsidy is going to generate 10 percent of the savings within CleanBC for carbon reduction. Given that these are people living on the margins already, they probably don’t have their thermostats running wildly out of control on cold days. They probably already know to put an extra sweater on and all of those things because, frankly, they don’t have the household disposable income to turn that thermostat up at will and heat their house, regardless of what’s going on with the outside temperature.
They probably are already taking transit. They’re not driving cars. They’re not insuring cars. You’re not going to see that massive 10 percent of overall…. I mean, we’ve essentially said, in CleanBC here that 10 percent of CleanBC hinges on the lowest-income population of our province, who are struggling to get by. Further making sure that they reduce their carbon footprint, which is, by most studies, already the smallest footprint out of anyone…. They live in smaller housing. They use less heating and transit, and on and on it goes.
Again, the concerns are very real. The concerns have been shared with me, and I’ve been trying to convey back and get answers to the questions. It’s unfortunate that most answers have been to go and check the website. I did try checking the website today. I’ll have to keep checking. It’s not a quick and easy click to find where some of these calculations come from. But I take the minister at his word that it’s a very reputable modelling firm that did all this, and there’s some proprietary software issues at play.
So I can understand that. But I hope the minister can understand the apprehension people have with a plan that has been much celebrated by some and that ultimately has the same end targets at the same dates as the original plan did. It has updated weigh points in there at 2030 and the like, which makes sense because the first weigh points were going to be 2020, which is next year. But when you consider the gaps in where the efficiencies are going to come, when you consider that a great many of the goals in this are relying on an added cost, outside of the carbon tax, for people — the consumers and homebuilders and homeowners — to shoulder, it’s quite remarkable.
So it does get to be worrisome that way. It gets to be worrisome because almost any reference check-in point on this new plan of any consequence is conveniently after the next general election, and that’s even if the government, in a minority situation, makes it to the fall of 2021. The way things are going right now, I think most people would think you are, but things could change tomorrow. I don’t know what the leader of the Green Party said in the House today. It could change tonight, for all we all know. But the point being that a full 25 percent of this plan isn’t even known until after the next general election. There’s another 23 percent of it that’s a bit of a wing and a prayer.
There’s about 50 percent of this plan overall, when I’m looking at the various numbers, that are strong educated guesses but great unknowns at the same time.
I guess the icing on the cake, the big signature piece out of all of this, is supposed to be the electrification of our personal vehicle fleet by 2040 to 100 percent. At least, that’s what people think is happening. The reality is it just means that if you want to buy a new vehicle in British Columbia by 2040, it has to be an electric vehicle. It doesn’t mean that you can’t drive a gas vehicle. It doesn’t mean that you can’t go to Alberta and buy a brand-new gas vehicle or Washington state and buy a brand-new gas vehicle. Although, with the safety checks, that gets to be a bit more problematic. It just means you can’t buy it in B.C.
How that is going to substantially help the overall plan here, especially when you’re missing 6.1 megatonnes, if there is not a massive uptake on the overall fleet of the province…. It’s one thing to try to change what new vehicle purchased is; it’s another thing to change the actual mix within the overall fleet.
I can tell you that when you look in CleanBC — and I will take this up with the Minister of Energy and Mines — and you realize that last year, from September of 2017 with the updated budget to the end of the fiscal four weeks ago, there was $57 million put to the EV program for subsidies, and there’s only $42 million in year 1 within CleanBC for the electric vehicle subsidies for this year, the simple math would say if this program’s actually working, the money’s going to run out.
But magically, the money will run out right when the car dealers have no choice but to actually have to sell those vehicles. So there is a great worry out there that the subsidization of the vehicles is going to dry up, because it’ll be squarely put, by regulation and legislation, at the feet of the car manufacturers. Why that’s important is because Ontario has proven out that when the subsidy program disappears, so do the car buyers.
I think there’s a great, great many unknowns within CleanBC. I do thank the staff for all of their help to the minister in providing the answers that were provided. It does leave a lot of unanswered questions, frankly, though, for other ministers that I will follow up on.
I do, obviously, for the sake of the environment, hope that the plan’s successful, but at this point, it’s hard to see how this plan is much more than a marketing exercise, a reworking of some of the numbers to get things to where they need to be to look all right. I think the biggest red flag from day one has been that missing 25 percent, because any plan with a missing 25 percent would seem to be only a 75 percent complete plan, simple math would say.
With that, I do thank, again, everyone for their time, and I look forward to following up with the other ministers on various topics around this as well.
Hon. G. Heyman: I want to thank all of the British Columbians who’ve taken some interest in the activities of the Ministry of Environment and Climate Change Strategy today and for a few days in the week 2½ weeks ago.
I want to thank all of the staff who are here today and who have been here over the course of the several days of estimates for both their work on a day-to-day ongoing basis and their work in helping to identify the right answers that the member for Kamloops–North Thompson and a number of his colleagues have brought forward to this set of spending estimates. Hopefully, we’ve been able to provide some good answers for people, some assistance on some very specific constituency-based issues and also some issues of public safety that were raised some time ago. I also appreciate the questions from members of the opposition and the responsibility that they take seriously to dig down into the issues that were being raised.
I do want to correct one point that was raised by the member for Kamloops–North Thompson, saying that we won’t know about the so-called missing 25 percent until after the next general election. In fact, we were very careful in crafting CleanBC. First of all, I wouldn’t refer to it as a missing 25 percent. It is 25 percent that we have to model reputably, as we did with the first 75 percent, using an independent third-party consultant.
Our commitment, on the release date of December 8, 2018, was to release that within 18 to 24 months, which, at the outside, would take us to December 2020, which is within the window of this mandate. Further, as I’ve stated, we will, as we model different elements of that 25 percent, release them on an ongoing iterative basis. The best modelling, of course, relies on assumptions, and you hope and trust that the methodology of experienced modellers is accurate.
The key point here…. The member has touched on it. He said he hopes the plan is successful, but he has heard from environmental groups that question whether we can meet our targets. On the other hand, he said we’ve heard from British Columbians who are concerned about affordability.
The truth is that as government, we’re concerned about both those things. That’s why we brought forward a plan. That’s why we engaged Navius to work with us to model very, very specific — to the tenth of a megatonne — numbers of megatonnes we could expect to achieve from certain measures. We will do the same with the rest of the plan so that British Columbians and all of us can do what all British Columbians want us to do, and that’s to reduce carbon pollution.
Of course British Columbians are concerned about affordability. That is why so many of the measures in CleanBC are focused on assisting British Columbians to reduce their emissions in an affordable way, through rebates on the carbon tax, through incentive programs for energy efficiency and transportation, investing in public transit, investing in a range of measures that can reduce waste and reduce emissions. I will take the member at his word, that he hopes that we are successful on both counts.
It is the job of opposition to be skeptical, but it is the job of government to reassure British Columbians that we’re doing what we need to do to reach the goals that they have set for us and that they have entrusted us to deliver on their behalf. That is what we will continue to do.
Vote 23: ministry operations, $192,734,000 — approved.
Vote 24: environmental assessment office, $14,531,000 — approved.
The Chair: The committee will now recess as we prepare for the estimates of the Ministry of Indigenous Relations and Reconciliation.
The committee recessed from 4:58 p.m. to 5:05 p.m.
[R. Leonard in the chair.]
ESTIMATES: MINISTRY OF INDIGENOUS
RELATIONS AND
RECONCILIATION
On Vote 32: ministry operations, $48,163,000.
The Chair: Minister, do you have an opening statement you’d like to make?
Hon. S. Fraser: I do indeed. Thank you, again, Madam Chair.
Before I begin, I’d like to acknowledge that we’re standing on the territory of the Lekwungen-speaking people, the Esquimalt and Songhees nations, and I thank them for allowing us to conduct our business here today.
With me today is my deputy minister, Doug Caul. I’ve got my Assistant Deputy Minister Suzanne Christensen; Assistant Deputy Minister Trish Balcaen; Assistant Deputy Minister Jessica Wood; Assistant Deputy Minister Laurel Nash; and from the First Peoples Cultural Council, the CEO of that organization, Tracey Herbert. Thank you very much for being here with me and helping to support me. And Wes Boyd, who was here for the whole last estimates too, is just a keener, and he’s sticking around for two sets of estimates.
I’m proud to be here to discuss and debate Budget 2019 and what it will accomplish. In fact, some of the Indigenous leaders that I met with after the Finance Minister presented her budget in the Legislature were very glowing. It’s suggested that it is a peoples’ budget. We are making different choices from the previous government, putting people — including Indigenous people — first. We’re investing in the critical areas that make a difference for people — better health care, education and child care. Here are just a few of the highlights that will help make life better for families.
A new B.C. child opportunities benefit — to ensure that every child of this province has a chance to thrive — and an affordable child care benefit. Increases to payments for family-based caregivers — this is important. People like grandparents and aunties who look after children and keep them out of care will finally get the supports at the same level as foster parents. This has incredible significance for Indigenous communities.
We are eliminating MSP premiums, eliminating interest on student loans, making significant investments in education and infrastructure to support our children in the future. Greater security for renters. Better access to mental health care for children and youth. Action on the overdose crisis and poverty reduction. A climate action plan for a cleaner, better future for all of us. So many incredible actions that will make life better for families now and for future generations.
But the thing I’m most excited about — it’s a truly historic agreement — is the most significant revenue-sharing agreement with First Nations in this province that we’ve ever seen, one that creates stable, long-term funding that supports self-government and self-determination. I’ll share more about that in just a minute.
I first want to say how very proud I am to be part of a government that has put reconciliation and Indigenous peoples at the heart of its policies and, soon to be, its laws. For too long, Indigenous people have been shut out of the economic and social opportunities that should be accessible to every British Columbian. For too long, the rights of Indigenous people were denied. But we’re changing that.
Our government has embraced the U.N. declaration on the rights of Indigenous peoples and the Truth and Reconciliation Commission’s calls to action and relevant case law on Indigenous rights. Our approach is guided in the recognition of title and rights. Because we acknowledge that First Nations have inherent rights to self-determination, to self-government, we believe that recognition and implementation of these rights is at the core of a reconciliation and a matter of great importance to all British Columbians.
I want to take a moment to talk about what we’ve accomplished in 2018, because to see where we’re going this year, it’s helpful to see where we’ve come from. It’s been a rewarding year, travelling the province, being welcomed into communities large and small, listening to the hopes and aspirations of people throughout this province and the challenges that Indigenous people have been facing every day in communities, in territories and in urban areas. I hold up my hands to everyone who welcomed me into their houses, to their offices, to their big houses, who were excited about the prospect of real and tangible change.
Looking back to my original mandate letter, there were five key priorities. We’ve completed or made substantial progress on all of them.
Mandate priority No. 1: to work collaboratively and respectfully with Indigenous peoples to establish a clear, cross-government vision of reconciliation to guide the adoption of the UN declaration on the rights of Indigenous peoples, the Truth and Reconciliation Commission calls to action and the Tsilhqot’in decision. This is a huge undertaking, but we’re making great progress.
In the throne speech and again in the budget, we shared our commitment to introduce legislation to implement the UN declaration. We will be the first province in this country to do so. This legislation is being co-developed with the First Nations Leadership Council, and we will do that before the end of the year. On the TRC calls to action, there are 94 of them, and they encompass every area of life for Indigenous peoples. We’re making tangible progress to address all of these areas.
Here are just a few examples. We invested over $550 million over ten years in social housing for Indigenous peoples, over 1,700 units off reserve and on reserve. In November, our government announced the first set of these homes through the Building B.C. Indigenous housing fund. They included nearly 780 off-reserve homes and close to 370 homes on reserve. That makes B.C. the very first province in this country to invest significant provincial funding into on-reserve housing.
We’re also helping Indigenous peoples to expand employment opportunities, through the Indigenous skills training program. To date, more than 5,900 Indigenous people have accessed training through this program. This includes training in construction trades, driving, IT, environmental monitoring and early childhood education.
On children and family services, we know that the best place for children is in the home, connected to the community and the culture. That is why we’re working with communities and organizations like the Wet’suwet’en, the Secwépemc and the Métis Nation B.C. to make that happen.
We’ve made terrific progress on environmental assessment. We’ve changed that environmental assessment process. The previous minister that was just in this room for estimates reviewed that at length. We partnered with First Nations on new environmental assessment legislation that gives nations a meaningful say in projects happening in their territory and brings certainty and predictability to the land base for everyone’s benefit. By involving First Nations from the beginning and bringing their governments into decision-making early, issues can be identified and worked through from the very beginning so that good projects get approved faster,
In education, Indigenous content and perspectives are being built into all grades and all subjects, from math to science to literature.
This is what I mean by cross-government and a cross-government vision of reconciliation, one that is being built not for but with Indigenous peoples. In fact, this work is so important that we formed a cabinet committee to help keep us on track with our cross-government goals for reconciliation. It is helping us to move away from the siloed approach that has existed for far too long. I want to thank my colleagues and Indigenous partners who are working so hard to make our cross-government vision a reality.
Mandate priority No. 2: to work in partnership with First Nations to transform the treaty process so that it respects case law and the UN declaration. Now, we’ve started making progress on this too. We are beginning to transform how we approach treaties in partnership with First Nations, the First Nations Summit and the federal government to find new and innovative approaches to modern treaty negotiations, to ensure treaties reflect case law and the UN declaration and to give negotiating tables the flexibility to support government-to-government relationships that will evolve over time.
We’ve done that with a number of recent agreements to advance treaty negotiations. As just a few examples: the SXTA in the Fraser Valley, the Ktunaxa Nation in the Kootenays, Metlakatla First Nation in the north and the NStQ in the Cariboo.
We’re also making transformative change outside of the treaty process, like the shíshálh Nation foundation agreement, the first major reconciliation agreement between our government and a First Nation. I left a meeting with the Chief and his council representatives just moments ago, just before coming into this room. So there will be many more such agreements to come.
Mandate priority No. 3. Now this one is to support Indigenous communities seeking to revitalize connections to their languages. Last year we allocated $50 million to the First Peoples Cultural Council to help revitalize Indigenous languages in British Columbia and address the current language crisis. Crisis is a strong word, but an appropriate one when you consider that there are less than 6,000 people that speak one of the 34 Indigenous languages in this province. That’s over half the languages in the entire country here in British Columbia.
Already that $50 million is making a difference on the ground, helping the First Peoples Cultural Council offer more language revitalization supports to communities. For example, the number of grants is up 178 percent, from 60 grants the previous year to 167 this past year. And 475 people received training to support their language revitalization efforts in communities this year. That is up 125 from the year before. The council is also launching new programs, like one called Reclaiming My Language: A Course for Silent Speakers. It’s designed for people who know but don’t speak their language. All of this work is really exciting.
You may have heard that the United Nations has proclaimed 2019 as the Year of Indigenous Languages. Not only is language an Indigenous right under the UN declaration, but teaching language strengthens the culture, social fabric and health of a community. It connects children to their heritage, their community, values and to the lands that they come from.
Mandate priority No. 4: to provide reliable, dedicated funding and support for friendship centres. Now last year, we more than tripled the funding for Aboriginal friendship centres in this province. That’s an additional $6.45 million over three years delivered through the B.C. Association of Aboriginal Friendship Centres. About 80 percent of Indigenous peoples in British Columbia live off reserve and in urban locations. For more than 60 years, friendship centres have offered quality services to support them. They work to support the physical, emotional and spiritual well-being of Indigenous peoples. We recognize how vital these services are. That is why providing stable, core funding that continues to support their work and their base of operations was so important to our government.
Mandate priority No. 5: to work with the Minister of Finance to negotiate with First Nations’ leadership and communities on expanding opportunities for their share of B.C. gaming and the revenue that comes from that to the province. In Budget 2019, we made the single largest agreement with First Nations in B.C. history to share revenue from gaming activities, sharing a stable, long-term source of funding so that First Nations can invest in their communities’ priorities.
This commitment amounts to approximately $3 billion in shared provincial revenue over the next 25 years to support First Nations, including an estimated $300 million over the next three years. That can help with potentially hundreds of new programs, community projects and the like — and significant economic development, all of which benefits First Nations communities. But it goes far beyond that. It brings prosperity to every part of the province. And importantly, the revenue-sharing agreement will mean First Nations can plan for the long term, investing in the services they decide their communities need to thrive and prosper.
Like every government, First Nations need stable, predictable sources of revenue to fund their priorities, critical things for every government, such as infrastructure, services that build healthy communities and the staff to get it done. It could be child support, support for elders, housing, road upgrades, economic development, or capacity that supports self-government.
The previous government refused to come to the table on revenue-sharing. I was elected in 2005, and it’s one of the first issues I heard in my meetings with First Nations’ leadership, that we needed to move in this direction. They did not get an ear from the previous government.
We are proud to put reconciliation into action by tangibly supporting First Nations self-government and self-determination in a tangible way. It’s part of our commitment to a new fiscal relationship with First Nations in this province.
In conclusion, I look at my mandate letter, and I can say quite honestly that while there’s still a lot of work to do, we are making progress. We’ve moved forward in the last year. With the investments we’re now making in Budget 2019, I know that I’ll be able to stand here next year and say again that we’re moving forward.
In everything from revenue-sharing to economic development, Indigenous peoples must be full participants in decisions that affect their rights and their lands, and Indigenous peoples must share in the prosperity of this province. That is why I’m so proud of the work we have done since we took office. It’s a journey we’ll continue to take and take together with Indigenous peoples.
I was told by First Nations early on that my job was to do constructive damage to the status quo, and I believe that we are accomplishing that in partnership with First Nations and Indigenous people in this province. I will sit down and await questions from my learned colleague opposite.
D. Ashton: First of all, I, too, would like to recognize the First Peoples of these lands and thank them very much for allowing us to share, raise families and grow a lot older and wiser and for giving the opportunities that have been presented. I say that from the bottom of my heart. It’s something that has been instilled in me from my father.
I would like to thank the minister. I’ve always tried. I think we’ve always had a good working relationship. I think that’s incredibly important. I would like to thank you for your opening statement. I will get a copy of it a little bit later. There are a couple of things that I did miss on that, Minister.
Just to start off with a question. With executive assistants being appointed in constituency offices, are they addressing some of the issues that are being brought forward in those offices by Indigenous people, and questions? If so, how is that budget allocated?
Hon. S. Fraser: Thanks for the question from the critic. I agree. We’ve worked well together, and I look forward to these sessions, actually. I know it’s a lot of work for all of the staff preparing for these, but we’ve got a good rapport.
I’m not ducking this question, but actually the executive assistants are not paid for through the ministry. It’s actually not part of this budget. If the member would like, I could get him the information on just how it is done. But it actually isn’t part of…. It’s not done through the ministry budget.
D. Ashton: Again, to the minister and especially to the staff: Minister, I want to thank your staff, because whenever I have had questions, they’ve been always prompt and the responses have been there. Ministers occupy the office, but I know what the foundation is. It’s all those incredible staff members that you have behind you and some that aren’t here today. Again, they are wonderful people and they do a great job for the ministry.
So nothing is coming through, is being billed back for those executive assistants that are dealing with issues that your ministry has been addressing through various ministers’ offices? I’m talking about where…. Are there any phones, furniture, supplies — anything like that — attributable to the ministry directly that is being paid for by the ministry for those executive assistants?
Hon. S. Fraser: The member is correct. None of those, none of that…. Nothing associated with the executive assistant is paid for through the ministry or by the ministry budget.
D. Ashton: Does the minister have an executive assistant in his home office?
Hon. S. Fraser: Yes, I do. Jolleen Dick is my executive assistant.
D. Ashton: And that is appointed by yourself or hired by yourself, or is that appointed by the government to your office?
Hon. S. Fraser: By the government to my office.
D. Ashton: As the EA to the minister, my question is: who is paying that salary? Is it the ministry staff paying that salary, or is it the government-arm side paying that?
Hon. S. Fraser: It does not come out of the ministry budget. As I said before, I can get the detailed information for the member. We’ll get that to him.
D. Ashton: Executive and support services under core business increases were just shy of approximately $2 million this year. Could the minister explain what the increased need for and what the funding of this area was — and utilized for?
Hon. S. Fraser: That increase is related to staffing, overhead costs and amortization of IT systems.
D. Ashton: Thanks to the minister.
I just want to jump back. Does the minister have a political appointee from the government in his constituency office? And if so, how is that compensated for? Where does that compensation come from? It’s my understanding that there have been some appointees to various constituency offices, and I’m just curious if the minister has an appointed individual to his personal constituency office.
Hon. S. Fraser: In my constituency office, which is at the center of my riding…. It’s a far-flung riding. It’s central Vancouver Island. Mid Island–Pacific Rim it’s called. The office is in Port Alberni. Andrea McDonald and Patty Edwards are my constituency assistants, and they’ve been with me…. Well, Andrea is new. She started following the last election. But Patty has been there from the beginning. The third person that works out of my office is Jolleen Dick, who is my executive assistant. That’s it for staffing for me in my constituency.
D. Ashton: Thank you to the minister. I just want to jump back really quickly. I don’t want to jump around too much, but one thing that did catch my eye is that there were 1,700 homes on and off the reserve that were proposed by the provincial government. Is there any money coming from the federal government to help offset some of that cost, both on reserve and off reserve? The math is about 1,330 off reserve and approximately — I think the number was said — 370 on reserve. Is there any co-sharing with federal resources for those particular homes?
Hon. S. Fraser: I’m not aware of any federal funding, but it’s actually not our ministry that…. It’s not part of our budget. It comes out of Housing. I don’t believe Housing has been up yet, so I think you’ll still have the opportunity to ask that question of the minister.
D. Ashton: We’ve been incredibly unfortunate in Penticton, both with the last government and with this government. Just another 50 homes under construction coming from the current government and, if I remember correctly, 176 units commissioned and almost completed from prior. But are any of those units being addressed to some of the Aboriginal needs in Penticton and area? If so, do you have any numbers on that?
Hon. S. Fraser: I know I cited housing as one of the key planks in what we’re doing as far as reconciliation goes, but it is another ministry. We do not have that information. Reconciliation — we’ve made it a cross-ministry effort, trying to break down the silos between ministries. But those silos still exist to some extent. In our knowledge of budgets for the other ministries, we don’t…. There are still some walls up there, so I do not have the information from that. If you could ask the question of the minister responsible for Housing, that would be great.
D. Ashton: Of the 370 that are on reserves, do you have a breakdown of where those are going — those individual units? Does staff have that?
Hon. S. Fraser: I would have to ask the Minister of Housing for that detail. I do not know that. So I would be in the same boat; I would have to ask the minister responsible for housing. If the member opposite could…. Like I say, I don’t believe she has been up yet for estimates. So I think the opportunity still exists.
D. Ashton: Also mentioned in the opening discussion were environmental assessments on reserve. How is that happening at this point in time? Who is it being led by? And are the environmental assessments the same on and off reserve — i.e., does the ministry, through your ministry or also the Ministry of Environment…? Are the assessments conducted in a similar and equal way, whether construction takes place on band lands or whether construction takes place outside of band lands/reserve areas?
Hon. S. Fraser: The environmental assessment process that I cited in my opening remarks does not apply on reserve because on reserve is a federal jurisdiction. There’s no role for the provincial environmental assessment process on reserve.
D. Ashton: To the minister’s opening dialogue — just a few questions that stuck out for me before we get into some of the other issues. I have to say that there is a very successful friendship centre in Penticton. The minister had stated that approximately 80 percent of Indigenous people are living off the reserves. Is the funding for the friendship centres entirely the province’s responsibility, or are there additional funds that come through other resources — i.e., the federal government?
Hon. S. Fraser: There is funding through the national organization of Aboriginal friendship centres from the federal government. There is a flow of funding that has always come in from the federal government. I don’t have those numbers at hand. It’s not part of our budget.
D. Ashton: So there is funding that comes from the federal government. Is it a top-up by the provincial government? Also, could the minister provide me with the amount of money that is provided by the provincial government for the ongoing operation of these friendship centres throughout British Columbia?
Hon. S. Fraser: To the question, we don’t actually have the information on the individual friendship centres, their actual budget. They’re their own entities. But we do know that we, the province, have…. There’s always been funding through the first citizens fund. Just for the member, that fund is based on investment income, so it varies. The last time I looked at that, it averages around $16,000, $17,000 per centre. It’s low because the interest rate is just not that good.
Besides that, which had been happening before, we’ve increased that $6.45 million over a three-year period to the 25 centres in the province, through the Association of Aboriginal Friendship Centres. They’re the distributor of that. That’s what comes from the province. The province’s side is those two funding streams.
D. Ashton: Those funding streams, then, are allocated not by the ministry but by the agency that distributes the money in the total allocation. Okay.
Just to jump back really quickly on the environmental assessment. British Columbia has no authority over any environmental assessments on reserve lands?
Hon. S. Fraser: Yes. That’s our understanding, although the expert on that would be the Minister of Environment, who just finished in here minutes ago. To our knowledge, on reserve is a federal jurisdiction, so I believe federal rules would apply there.
D. Ashton: Jumping to revenue-sharing, No. 5 in the minister’s mandate letter — $3 billion over 25 years, $300 million over the next three years. What about bands that have, already, agreements in place with municipalities that have gambling operations within their city limits, and there are revenue-sharing agreements there? Is that taken into consideration when there is a distribution of revenue-sharing dollars?
Hon. S. Fraser: The amount that we’ve committed to…. It’s being put in place as we speak — the $3 billion over 25 years. That amounts to, give or take, about $100 million a year that would be distributed between the 203 different First Nations communities in the province. That would be over and above any individual agreements that have been arrived at between a nation and maybe the operator of a casino within their territory.
D. Ashton: So the 203 units, $300 million over the next three years — who is the deciding authority for the splits that will take place with those funds?
Hon. S. Fraser: That’s done through the…. This was negotiated between us and the First Nations Gaming Commission, which is an entity of the First Nations Leadership Council. The agreement — working in partnership with them, there was a formula that was arrived at for the distribution of these funds.
I’m going to give a ballpark here, but basically half the funds are distributed equally, so 50 percent is distributed equally amongst the 203 communities. Then 40 percent is based on…. There’s a population formula for that. The last 10 percent is based on the recognition that there are challenges and expenses that go along with being rural and remote.
There’s an entity being established. It’s a full limited partnership, which is being established as we speak. I believe it’s just about in place, the last briefing I got on that. They’ll be responsible for the distribution of those funds to the nations themselves.
D. Ashton: Just before one of my peers gets up. I know that one of the nations in the Okanagan…. Actually, I’ve heard two of the nations in the Okanagan have applied for casino licences. Is there any further consideration being given to the opportunities that various nations could present in regards to gambling opportunities on reserve land?
Hon. S. Fraser: We’re just not privy to that. We’re not involved in any negotiations like that, not the Ministry of Indigenous Relations and Reconciliation.
D. Ashton: I have three of my peers here that have some questions. I’ll feed them in and then come back.
J. Rustad: I was curious. I want to ask a few questions around the Wet’suwet’en, the Unist’ot’en and the blockade and the issues that are going on up there in my riding, as well, of course, as the folks that are west of my riding. Perhaps I could start with if the minister could describe the nature of the engagement that the ministry is undertaking with the Office of the Wet’suwet’en.
Hon. S. Fraser: I visited the territory back in May last year and had some discussions with the hereditary chiefs at the time, the Office of the Wet’suwet’en. I returned in August with the Premier just to listen to the issues in general around the role of the hereditary, trying to learn from the Office of the Wet’suwet’en, the historic role that they have, with respect.
Then the Premier and I and the Minister of Forests, Lands and Natural Resource Operations returned there about a month ago. We were invited for a smoke feast. That was an invitation from the Office of the Wet’suwet’en, the hereditary chiefs. The whole community was basically there, including elected chiefs at the time. This was to start a process to build a relationship built on respect and recognition. Arguably, a failure of not having such a relationship.
We did bring on Murray Rankin, an MP who will not be an MP after the next election — he’s not running again — who has constitutional expertise in this sort of thing. He’s a lawyer and had the respect of the Office of Wet’suwet’en and was agreeable to us too. That’s a process that has just begun.
J. Rustad: I assume Murray Rankin is somebody who is being paid out of the ministry budget. The minister is nodding that isn’t the case. Perhaps, then, I could ask the minister how that individual is being paid and what resources from his ministry are being applied to this relationship-building exercise.
Hon. S. Fraser: Thanks for the question. Mr. Rankin’s costs are being covered — mostly travel costs. Some support from the ministry also would be considered costs, which are being covered.
J. Rustad: So there is no compensation going to Min. Rankin for his time and efforts, other than the covering of his expenditures in terms of travel? Is that what the minister has just said? I just want him to clarify that.
Hon. S. Fraser: Yes, correct.
J. Rustad: I guess he’s doing that on the federal dime in terms of his job as an MP. Sorry. I meant his salary that he gets as being an MP. I don’t think he’s resigned yet. He is just not running again?
Interjection.
J. Rustad: Yeah, so he’s…. Okay. Interesting.
Beyond that, has there been a mandate letter or any sort of instructions that have been provided to MP Rankin, who, I’m assuming, is leading a team of people that are associated with this? Is there a mandate that has been given to the individual associated with this engagement with the Wet’suwet’en?
Hon. S. Fraser: Thanks to the member for the question.
There is a letter to Mr. Rankin. It confirms his appointment as lead. It confirms that the work he’s doing is not related to any specific project. It refers to the requirement to report out on a certain regular basis. It’s essentially a broad letter that asks him to explore the possibilities and opportunities for reconciliation with the Office of the Wet’suwet’en. It also refers to working towards unity and self-determination. Those are the broad…. It’s broadly written that way.
J. Rustad: So we have an individual who is being given a mandate letter, I’m assuming has support staff that are part of his expenses and stuff, travel, but who is not actually being paid for by the government of British Columbia for doing this work. It’s an interesting piece of that, but that’s beside the point.
The question I’m trying to get to around this, particularly to the mandate…. I agree entirely that the relationship with the Office of the Wet’suwet’en and with the Wet’suwet’en people is critical, obviously, for a number of things that are going on, not to mention the blockade and the issue associated with that.
There was a meeting that I was made aware of by a couple of the Wet’suwet’en peoples, the nations that are not…. The elected chiefs, I should say. They are not under the umbrella of the Office of the Wet’suwet’en in terms of what they’re doing.
There was a meeting that went on that they weren’t invited to attend. They had somebody go to this meeting and ask why and ask what was being talked about. Was title going to be talked about? What was going to be included, and why weren’t they being included? That individual wasn’t provided with an answer.
Why would that be the case with elected representatives that are representing their people that are Wet’suwet’en people, that would like to have been part of a discussion around how things were improved? I think the minister said himself around how some of these issues can be bridged. I don’t think he quite used those terms, but that was part of it. Why wouldn’t they have been invited and been part of this discussion?
Hon. S. Fraser: I’m not aware of this meeting. I don’t know the specifics of it. I do meet with the elected chief and council and representatives from Wet’suwet’en also. But the question you’re asking…. I’m not familiar with the meeting. That might be a question to ask the OW — if they’ve had a meeting that you believe that there should have been a larger invite list for.
J. Rustad: How often does MP Rankin provide reports through to the ministry? And do you get updates from your staff that a Wet’suwet’en would be attending these meetings, perhaps potentially taking notes or supporting the work that’s happening?
Hon. S. Fraser: Following the smoke feast, there have been two days…. It was just last Thursday and Friday that Mr. Rankin met with OW. That was largely that OW needed time to prepare, following the feast, to have the meeting with Murray, to begin this process. So it’s at the very beginning of that process.
E. Ross: I’ve been listening to the questions. Sorry for being late. I got in here just when you guys were starting the conversation on the Wet’suwet’en, the relationship or the exercise.
I just want to understand the meaning behind the terms “reconciliation,” “unity” and “self-determination.” I’ve heard these terms over the last 14 years, and I never could figure out a definition. Whether it be Mr. Rankin, the B.C. government or the Wet’suwet’en, do the parties have any definitive goals in relation to any of these terms?
Hon. S. Fraser: I believe the description that I gave to the member for Nechako Lakes was accurate. The mandate to Mr. Rankin is very broad. It’s a broad letter. It cites unity and self-determination. It confirms that this process is not related to any specific project or any particular project. It addresses some of the reporting-out plans, for Mr. Rankin, to government, and it confirms that he is the lead on this for us, as government.
E. Ross: I understood that answer, but I just don’t understand any objectives that could be put down on paper in terms of what could be measured when you put down a word like “reconciliation.” Believe me; I’ve tried. Even the term “self-determination” — is that at a provincial level, local level, federal level, within the terms of the Indian Act? Self-governance…. There are so many different ways you can take this, and there are so many different terms that you can use when you’re talking about reconciliation. I’ve yet to see one really solid definition that can say: “I’m on the path” or “I’ve actually achieved it.”
In the mandate given to Mr. Rankin, have there been some goals set down to say that that can be measured against whether or not the province is succeeding at these terms that are open-ended at best?
Hon. S. Fraser: I know that the member’s citing that it seems kind of vague, what we’re doing here. But we’re doing things differently. We’re not being prescriptive, here, about this process. It’s the art of the possible. There have been unity problems and issues within the nation. There have been challenges, I should say. And there have certainly been challenges in us, as government, understanding the role of the hereditary chiefs.
We’re purposely not putting specific goals. Those will be developed with the Office of the Wet’suwet’en. We’re open to their perspectives on things. We’re not trying to prescribe to them what we have to do and how we’re going to do it.
It’s about building relationships based on respect and recognition, addressing issues of unity, as we’ve mentioned, which I think will benefit all — and also our relationship between government and the Wet’suwet’en people, moving down that path.
I would suggest that “reconciliation” is a difficult term. I agree with the member. But I don’t believe it’s an end-game. Reconciliation is a path, and it needs continual work, and this is part of the work that we’re doing with the Office of the Wet’suwet’en.
E. Ross: Minister, thank you. I’m not trying to point out that the mandate or the objectives are vague. I’m pointing out the terms are vague. They always have been vague — provincially, federally. I mean, the only time I’ve ever seen the term “reconciliation” really being defined is in case law, but then I see it being used at every different level, for every different reason in the world. That’s why I find it really hard to use this term when you’re trying to resolve certain issues, especially relationship-building. Having the open-ended nature of it actually leads you down so many different roads.
Leaving that aside for second, I do believe there are only two real objectives that you could achieve here, in terms of what we’re talking about. We’re talking about reconciliation, unity and self-determination. Reconciliation, I agree with you, is a never-ending process, unless somebody defines it. Unity is probably achievable, but that’s really up to the First Nation in question. It’s not really up to anybody else. Self-determination — maybe one facet of self-determination could be achieved if you sign some type of economic development agreement that sustains itself, something similar to the forest and range agreement, for example, or, say, some type of revenue-sharing agreement for mining.
There’s only one topic there that I agree with that can achieve the objectives if laid down on paper and agreed to by all parties, and that’s unity. But the other one is title.
Now, I’ve read as much as I could in terms of trying to figure out what the government intends to achieve here, but I’ve also read what the Wet’suwet’en hereditary chiefs want to achieve. It seems to be two different topics. The provincial government wants to achieve some type of relationship-building agreement, which is fine, and it wants to include terms like “reconciliation,” “unity” and “self-determination.” But the Office of the Wet’suwet’en is talking about title.
Now, I’m familiar with this topic. I’m familiar with it through section 35 of the constitution, and I’m familiar with the pursuant case law. In my opinion, there are different levels of title. That means there are a lot of different conversations about title, as well, outside of the case law. So I just want to know from the minister what the topic of discussion will be when it comes to title.
Hon. S. Fraser: Thanks to the member for the questioning here. It’s interesting. He mentioned that one of the only ways to get any achievement here was to sign an agreement. He cited a forest and range agreement. As a government, we are actually moving away from a transactional approach based on somebody wanting to use something in the territory or some company wanting to come in and set up a mine or a forest operation or whatever. Not to say that can’t happen, but that is not our goal here.
This is about relationship-building. Our emissary, Mr. Rankin, has just had two days of meetings. It is about exploring the art of the possible in building a relationship with the Office of the Wet’suwet’en.
We purposefully made his mandate broad enough that it would not be perceived that we were trying, as government, to dictate where the conversation should go.
Can I guarantee that we are going to arrive at an agreement at the end of this? I cannot. To do so would be presumptuous, I would think, and show a lack of respect for the Office of the Wet’suwet’en.
This is not, for instance, what the previous government did — this type of relationship. I realize that. We have embarked on a process. It’s very early days. We are open to ideas and thoughts from the hereditary chiefs. I’m hoping that’ll stay that way. We will have that open conversation where we won’t be dictating the rules of the game here, that we develop that together.
E. Ross: Thank you for that. That just makes this even more confusing as we go along, then, because you’re talking about transactional versus relationship-building, when, really, the forest and range agreement was a product of case law. The correct term when you’re talking about that is “accommodation.” It’s not a transaction.
It’s basically the infringements of a right, or title infringement. Therefore, the Crown — and the proponent, to a certain extent — has got to accommodate that interest, that infringement. That’s what that is. That’s, basically, how all these projects got built over the last ten years.
It’s why LNG is so successful right now. The agreements are based on infringements that couldn’t be mitigated, so instead, they were accommodated. But if they’re going to achieve the same thing, in terms of building the resource industry through relationship-building versus transactional, I wish you luck.
The question really was around title. There are different forms of title in B.C. right now. There are a lot of conversations about it. Some are accurate, and some aren’t. I’m not saying that B.C. is going to institute or force upon the First Nation some version of title. I’m just saying there are going to be a number of different discussions around different forms of title.
How does the province see them handling this conversation? I know it’s a tripartite or maybe a bilateral discussion. Great. I just want to know what type of title we are going to be talking about.
Hon. S. Fraser: I’ll just take a stab at this. I may have to come back to it. Title does vary. I mean, it’s interpreted differently by different nations. I think the member is correct. That’s something that you can…. There’s not a defined version of that either that’s accepted by everyone.
Just an example. For instance, my colleague the Minister of Children and Families signed an agreement in the territory with the Office of the Wet’suwet’en, the hereditary chiefs, dealing with child welfare and jurisdiction. The feds were part of that also. There’s a negotiation that’s not based on building something — building a mine or doing forestry. It’s about relationship-building that’s based on respect and recognition.
Again, as the member knows, we just discussed this a little bit earlier. I don’t know if the member was here at the time. Revenue-sharing with the gaming…. Nations, communities will be receiving funding not based on a project. It’s based on the need to close the gap, the socioeconomic gap, and to provide stable funding for nations, regardless of whether they’ve got an agreement on a resource in their territory or not. You could create haves and have-nots, and it has happened that way in communities.
We are approaching this in a different way. I appreciate that the member is having difficulty with that. But we are approaching this as a government in a different way, open to the art of the possible, in working, in this case, with the Office of the Wet’suwet’en.
D. Ashton: To the minister and staff, thank you, so far, for today. Thank you for the responses. I look forward to seeing everybody tomorrow.
Hon. S. Fraser: I move that the committee rise, report resolutions and completion of the Ministry of Environment and Climate Change Strategy, report progress on the Ministry of Indigenous Relations and Reconciliation and seek leave to sit again.
Motion approved.
The committee rose at 6:15 p.m.
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