Fifth Session, 41st Parliament (2020)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, February 18, 2020
Afternoon Sitting
Issue No. 308
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day | |
Strategic plan, 2020-21–2022-23 | |
Budget and fiscal plan, 2020-21–2022-23 | |
Service plans, 2020-21–2022-23 |
TUESDAY, FEBRUARY 18, 2020
The House met at 1:36 p.m.
[Mr. Speaker in the chair.]
Mr. Speaker: Good afternoon, everyone. On behalf of all Members of the Legislative Assembly, I would like to welcome the many distinguished guests, friends and family joining us here today. By agreement, I now invite Shirley Alphonse, Elder of the T’Sou-ke Nation, to offer a blessing.
S. Alphonse: [SENĆOŦEN was spoken.]
Creator, Great Spirit, as we gather here this afternoon, we say thank you. Thank you for each one here, for the work you do for the good of all people, the words that are shared to help us make a difference for the sake of our children, our grandchildren, who are the future stewards of Mother Earth.
Creator, Great Spirit, thank you for the blessing of family, of relatives, of friends. Thank you for teachers, mentors, Elders, knowledge-keepers. Thank you for the blessing of Mother Earth, beauty and bounty to sustain us every day so we may live. Thank you for the mountains, the oceans, the rivers, forests, medicine plants, flowers, the oceans that connect the world, the rivers, the lakes that provide life-giving water. Creator, Great Spirit, thank you for all creatures that coexist with us.
Thank you for the sun, the moon, the stars. Thank you for refreshing rain and cleansing winds, for the four directions, the four seasons, the four nations of the world. Creator, Great Spirit, help us each day we walk this earth to do the best we can to look after Mother Earth, who looks after us. Help and guide us on our paths to be kind to one another, to be caring.
HÍSW̱ḴE. ÍY SȻAĆEL SIÁM.
Orders of the Day
Hon. C. James: Hon. Speaker, I move that the House at its next sitting resolve itself for the session into a committee to consider supply to be granted to Her Majesty.
Motion approved.
Presentation of Estimates
ESTIMATES OF SUMS REQUIRED
FOR THE SERVICE OF THE
PROVINCE
Hon. C. James presented a message from Her Honour the Lieutenant-Governor: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2021, and a supplement to the estimates for the fiscal year ending March 31, 2021, recommending the same to the Legislative Assembly.
Hon. C. James moved that the said message and the estimates accompanying the same be referred to the Committee of Supply.
Motion approved.
Budget Debate
Hon. C. James: I move, seconded by the hon. Premier of British Columbia:
[That the Speaker do now leave the Chair for the House to go into Committee of Supply.]
I want to begin by acknowledging that we’re on the traditional territory of the Songhees and Esquimalt Nations and thank them for the ability to meet on their land.
I also want to give a warm welcome to everyone here today.
A budget is built with the work and input of many. Thanks to all the staff in the Ministry of Finance and my office for their extraordinary efforts. Thank you to everyone who wrote and took part in the Select Standing Committee on Finance’s budget consultations. Thank you to the many people who shared their ideas and their hopes for the future of our province.
Working together will help us build a stronger B.C. for everyone, and that’s what Budget 2020 is all about. It’s about the fundamental changes our government has been making for the people of British Columbia. It’s about continuing to fix the problems facing families today. It’s about delivering the results that keep us moving forward together.
The changes we’ve made are all about making lives better today and creating opportunities that last a lifetime — opportunities to put down roots, contribute to your community and have a job that provides a good quality of life. These are the things that drive us, and my family is no exception.
In the 1950s, my grandparents left England and moved to Saskatchewan with my mom. Like so many others who immigrated to Canada, they left the only home they’d ever known in search of a better life for their family. Times were tough. Money was tight. My grandmother soon found a job at the local hospital. Together she and my grandfather worked day in and day out to put food on the table and keep a roof over our heads.
Now, for my grandparents, family was never just immediate family. It was anyone in our community who needed a hand up. Over the years, our family grew to include dozens of foster kids. Growing up alongside children of all ages and all abilities showed me that while everyone has something to contribute to this world, not everyone is given the opportunity to be able to make their mark.
While my grandmother possessed a quiet, solid strength, my mother is the trailblazer and the fierce community advocate. As a young parent with two kids, my mom enrolled in teachers college about two hours away from our family home in Saskatchewan. During the week, my grandparents would take care of us while my mom put herself through school.
Looking back, I can see the barriers that she faced as a single parent to two young girls living in a small prairie town. I also recognize that that access to education created opportunities that span generations. It has the power to change a family forever. Had the door to opportunity remained closed for my mother, I have no doubt that my life would have looked very different.
These personal experiences also reflect what I’ve heard from so many British Columbians. People want to do for themselves. Sometimes they just need a door to open for that to happen. As Finance Minister, it’s my job to make sure that the benefits of B.C.’s strong economy are felt by everyone, not just a few at the top.
After nearly three years of choices that put people first, we’re starting to see the results. From new roads, hospitals, schools and housing to new services and job opportunities, life in B.C. is getting better every day. Our economy is stronger because we’re putting B.C. on a path to a cleaner, better future.
This is my third full budget as Finance Minister. As with previous years, our government continues to work from a balanced budget. Our fiscal strategy lays out a solid plan, with layers of planning and foresight. B.C. remains an economic leader in Canada. We’re the only province with a triple-A credit rating from the three major international rating agencies. We have the lowest unemployment rate in the country and zero operating debt.
Our fiscal foundation remains strong, as does our commitment to making life more affordable, to delivering the services British Columbians depend on and to building a sustainable economy with opportunities for everyone. We know that delivering on these priorities means strong climate action, meaningful reconciliation with Indigenous peoples and a commitment to equity, diversity and inclusion. Supported by the confidence and supply agreement with the B.C. Green Party caucus, our government is advancing these priorities. Together we’ve made a lot of progress, and I’m presenting our plan to keep B.C. moving forward.
Budget 2020 breaks down barriers to opportunity for you, your children and your neighbours. Budget 2020 delivers access to a good education, quality health care and vital community supports. Budget 2020 supports British Columbians who are working hard to get ahead by making life more affordable.
We’re not here to deliver the largest surplus possible at all costs. The point of a budget is to plan ahead, to set priorities and to make responsible decisions that are good for people over the long term. That’s what we’ve done for the last 2½ years, and we can’t afford to turn back.
Over the last decade, our province’s economy has remained strong, but many people and communities fell further behind. There was a bright future in British Columbia, but only for a few who could afford it. I’m proud to say that as a province, we are now on a different path. We’re making different choices, and Budget 2020 backs up our choices with action.
The days of cashing in on a speculative real estate market at the expense of hard-working British Columbians are done. Instead of turning a blind eye to money laundering and the housing crisis, we’re acting so that everyone can afford a future in our province. Money laundering in our economy must end. Our goal is to ensure balance, and it’s not balance to have an economy that is distorted by dirty money. Budget 2020 delivers on our commitment to conduct a public inquiry and get people the answers they deserve.
The old practice of hoarding surpluses at the expense of people is over. Instead, we’re choosing a balanced fiscal approach, one that maintains a reasonable surplus while investing in people, because we understand that when the door to opportunity closes one too many times, people can lose hope.
A little support can be life changing. Building on our government’s poverty reduction plan, Budget 2020 increases earnings exemptions for people receiving income and disability assistance. This gives people a chance to increase their household income, to remain connected to the workforce and to build up the kind of valuable work experience that can lead to a good-paying job.
After years of cuts that hurt people most in need, Budget 2020 provides new funding for children in care and adults with diverse abilities. A commitment to ongoing funding, as well, for the cultural connections program will provide more support for Indigenous children to stay connected with their communities and their families.
In partnership with Indigenous peoples, we are choosing a more stable and prosperous path for everyone. We got right to work when we became government with new money for language revitalization, a historic revenue-sharing agreement and changes to the child welfare system that keep more Indigenous children in their communities. Aboriginal friendship centres now have long-term stable funding, and we stepped up as the first and only province to fund on-reserve housing in Canada.
I’m proud to say that the human rights of Indigenous people are now enshrined in law as the Declaration on the Rights of Indigenous Peoples Act. Now, there is no single path to what reconciliation can or should look like. Reconciliation is hard work, and we recognize that the road ahead is not without its challenges. But if we invite the conversation, if we work from a place of respect, we will build a better future together.
Now, to achieve that future, Mr. Speaker, our government is not waiting to take action on complex problems that defy simple solutions. Our government has taken significant steps to help address sustainability at ICBC and affordability for British Columbians. While the old government ignored the problems with auto insurance, we’re transforming ICBC to make it work for you. Instead of pushing the problems down the road, we’re standing up for the best interests of British Columbians.
I want to recognize that right now, the people who depend on B.C.’s forest industry are hurting. A thriving forest sector has provided good, stable jobs for many families going back generations. However, over the last number of years, the mountain pine beetle infestation, wildfires and the softwood lumber dispute have reduced timber supply and triggered a wave of mills to close their doors or scale back shifts.
These changes didn’t happen overnight, but that doesn’t lessen the hardship that forest workers and their families are facing right now. As a government, we will not turn our backs on the people who have helped power our province for so long.
Our government’s priority is to provide the help that people need to get on with their lives, to support their families and to plan for a good future in our province. Workers are now getting job placement and skills training, equipment loans for coastal logging contractors, grants for hard-hit communities, and programs to support early retirement.
Investments in public infrastructure are building a better B.C., and wherever possible, B.C.-engineered wood will serve as the foundation.
These are important steps. But a healthy and sustainable forest industry also depends on bringing together industry, First Nations, unions and government to find solutions. Budget 2020 takes another step forward with new funding to begin developing opportunities for B.C.’s bioeconomy and revitalization within the forest sector.
We’ll keep working hard to make sure that forest workers, contractors and communities get the support that they deserve, because we are all in this together. Only when we work together will we succeed in the kind of fundamental change that provides relief from the problems facing people now and inspires hope for a better future, a future where your opportunities aren’t defined by your age or your income bracket or your home address. Instead, our plan creates a lifetime of opportunity for everyone in British Columbia.
For my family — as it did for so many others, and as it does for so many others — it started with a good education. Going back to school and building up her career meant that my mom was able to put away a little money each month and build a better future for herself and her family. Growing up, we didn’t always have a lot, but we had enough for both me and my sister to know that nothing was out of reach for us. As Finance Minister, I’m unwavering in my commitment to deliver the opportunities that our children and our grandchildren deserve.
For far too long, families were left to struggle as their monthly bills kept going up while the health, education and community supports they counted on were slashed. In a prosperous province like British Columbia, we can and we must do better, and we are.
Launching this fall, the new B.C. child opportunity benefit will help lift up thousands of kids and give them the opportunity they deserve, now and down the road. Families with one child will be eligible to receive up to $1,600 annually. For two children, that goes up to $2,600, and it’s $3,400 for three kids. People can also bank on this tax-free support up until their child’s 18th birthday.
On top of the new benefit, this will be the first full year that people won’t have to pay the unfair MSP premium. Together these two measures could save families thousands of dollars that they can put towards what really matters: setting up the next generation for success.
For many, that starts with access to affordable, high-quality child care. Child care for all who need it is closer than ever to becoming a reality in our province. Thousands of new licensed child care spaces are opening, and some parents are saving nearly $20,000 annually. Budget 2020 builds on that progress, with total investments reaching $2 billion over three years for child care here in British Columbia. We know that child care is critical to achieving equality in the workplace, helping to close the gender gap and giving more parents, particularly women, the opportunity to take their careers to the next level.
We’re also investing in B.C.’s early childhood educators, again almost all women, with more bursaries and increased wages. Additionally, B.C.’s minimum wage will rise again to more than $15 an hour by 2021. For the almost 140,000 people who currently earn minimum wage, more than half of them women, this will provide a much-needed boost. We’re also investing over $12 million to provide more opportunities for women to become today’s electricians, carpenters and heavy-duty mechanics while opening the doors for the next generation of girls.
Our government is putting children and families first. Child care for all is a fundamental change that will redefine an entirely new generation of children and their parents. Not only does quality child care give parents peace of mind; it can also help kids with the solid start they need for a smooth transition to school. Record investments in education mean B.C.’s kids are learning in some of the smallest class sizes in a decade, with more supports available for children of all ages and all abilities. New schools are opening in some of our fastest-growing communities, from Surrey to Fort St. John, Chilliwack to Langley, to inspire hope, curiosity and confidence in young learners.
As Finance Minister, but also as a mother and grandmother, I know the success of our province depends on giving our kids the best possible start in life. Inside government, we’ve grown education spending by over $1 billion per year. Inside the classroom, we’re supporting students with 4,200 teachers, including 700 new special education teachers and nearly 200 new teacher-psychologists and counsellors. I’m proud to say that Budget 2020 includes new funding of $339 million over the next fiscal term to be able to continue improving B.C. schools and set our students up for success.
Together these investments add to the work already underway to strengthen our K-to-12 system, to build better and safer schools and prepare students for life after graduation. We’re making sure that our young people have the skills and training to excel in the economy of tomorrow. In the next ten years, there will be more than 800,000 job openings in health care, early childhood education, skilled trades, tech and much more. There are good things happening in our province, and we want everyone to be a part of it. That’s why our government has focused on breaking down barriers and creating pathways to opportunities.
Adult basic education and English language learning are now free, and 1,200 former youth in care are now attending college, university and trade schools for free. B.C. student loans are now interest free, and we’re partnering with post-secondary institutions to build thousands more student beds, because we want to make sure that our young people focus on gaining the skills, the knowledge and the experience they need to provide for themselves and to power B.C.’s economy.
For my own experience, I saw how being able to go to school and build up my mom’s career changed her and my family. As a single parent, it put her on the pathway for economic independence and opened doors for me and my sister. At the same time, being able to rely on the support of family helped my mom overcome the obstacles that otherwise might have kept her out of school. She was able to seize that opportunity and build a better life for herself and our family. These are the kinds of opportunities that every person and every family deserves.
As part of Budget 2020, I’m proud to announce a new B.C. access grant for post-secondary students. Starting in September, the new B.C. access grant will provide upfront funding to more than 40,000 students who may otherwise struggle to pay for post-secondary education.
Between the new access grant and the Canada student grant, students can receive up to $4,000 a year to help them with the cost of tuition, and for the first time, provincial grants are going to be available to part-time students and to students enrolled in programs of less than two years. This will help people land good-paying jobs in high-demand fields like early childhood education, health care and the skills trades.
This grant is about investing in our shared future, a future where B.C.’s workforce is flexible, innovative and ready to thrive in a world shaped by advancing technology, global trade and climate action. I know B.C. will rise to the challenge thanks to the passions and talents of the people who call our province home.
Building up a skilled workforce is one part of the equation, but we also need to build affordable housing to keep people in the neighbourhoods where they live, work and learn. Sweeping change is on the way thanks to the largest investment in affordable housing in B.C.’s history — $7 billion over ten years to deliver 114,000 homes for people in our province. In just two-and-a-half years, almost 23,000 new homes are underway or complete across B.C.
We started where the impact was most immediate. More than 2,000 people who were homeless now have stable housing and access to 24-7 support. Another 800 supported homes are on the way. This year’s budget provides additional funding for more emergency shelter spaces, supportive homes and navigation centres to provide wraparound services and supports for people in need.
Overall, our government is delivering more than $4 billion over the next three years to help bring affordable housing within reach for people of all ages and all income levels in every corner of B.C. We have a long way to go. But we know we’ll get there in partnership with all levels of government, with Indigenous peoples, with not-for-profits and with the private sector. Our government is delivering the homes British Columbians need, along with the infrastructure and services that people count on, from our kids to our parents to our grandparents.
We know there’s nothing more important than being able to access high-quality health care when you or your loved one needs it the most. As B.C.’s population grows and ages, we need to make sure we’re ready to meet the demand, and Budget 2020 delivers. We’re providing an additional $1 billion over three years for British Columbia’s health care system. This new funding will bring down surgical wait times and address the growing demand for services.
Budget 2020 delivers better care for you and your family by building on the steps we’ve already taken to transform B.C.’s health care system. New or upgraded hospitals are coming to Fort St. James, Surrey, Williams Lake, Burnaby, Quesnel, Vancouver, Trail, Richmond, Nanaimo, North Vancouver, Dawson Creek, the Cowichan Valley and Terrace.
Now, that’s a long list, but we’re not done yet. New urgent and primary care centres are now open in Kamloops, Quesnel, Langford, Surrey, Vancouver, Nanaimo, Prince George, Burnaby, North Vancouver, Kelowna, Vernon, Maple Ridge, Pitt Meadows and another two centres opening in Victoria and East Vancouver.
After years of cuts, investment in long-term care and respite services are giving seniors and their caregivers a well-deserved boost.
No one should be forced to decide between buying groceries or prescription medication. This year marks the first anniversary of eliminating or reducing Fair PharmaCare deductibles for 240,000 families.
Soon every post-secondary student will have access, 24-7, to mental health support services. This builds on a provincewide expansion of Foundry centres to provide youth and families with a one-stop shop for mental health and substance use supports, because we know it’s crucial to reach out to people early, before challenges escalate.
We also know there is more to do, especially when it comes to keeping our young people healthy. As part of Budget 2020, B.C. will begin charging PST on sweetened carbonated drinks to help address the health and economic costs of those beverages. Research is clear: teens between the ages of 14 and 18 are the top consumers of pop. This is a step that health professionals and the Select Standing Committee on Finance, an all-party committee, have long supported for seven years, because this is about keeping young people healthy, while taking in a bit of revenue to continue to pay for enhanced health care services for everyone.
We know that people work hard to build a good life for themselves and their family. In turn, people deserve an economy that works hard for them by delivering good, stable jobs in all corners of the province, by building a connected and resilient network of communities and by recognizing that a prosperous future must mean a clean future. To do that, we need an economy that works for people, because when people thrive, our economy thrives.
As Finance Minister, I often speak about the importance of building a diverse, sustainable and resilient economy, but what does that mean? Again, I come back to my own story. My grandparents were able to find good jobs that allowed them to provide for our family. My mom was able to go back to school and build up her career, because my grandparents were willing and able to look after me and my sister.
To me, this gets to the heart of what resilience looks like for families and communities. It doesn’t come down to our own individual strength, but rather the strength of the community that we build around us. This comes back to the core values that guide us as government. It doesn’t come down to a choice between investing in a strong economy, a clean environment or the people who call B.C. home. Investing in people, communities and a clean future is fundamental to building a strong and sustainable economy.
This is a significant departure from what people experienced throughout most of the past decade. While B.C.’s economy remains strong, community and people fell further behind. Now, together, we’re building a better future, grounded in an economy that works for everyone, not just those at the top.
As part of Budget 2020 and our government’s ongoing work to improve the services and infrastructure we all depend on, a new tax bracket is being introduced for the top 1 percent of income earners in our province. Nearly half of the revenue will come from people making more than $1 million annually. This will help us to deliver the infrastructure and services that create good jobs and keep B.C.’s economy moving, while continuing to maintain B.C.’s tax system as one of the most competitive in the country.
As I’ve said before, we also need to do our part as government and look carefully at spending all across government, because this is simply part of responsible budget management.
No matter where you call home — whether it’s our province’s north, south, east or west — our plan creates opportunities for you. I know that as proud British Columbians, there is much more that unites us than divides us. We all want life to be more affordable. We all want a quality education for our kids. We all want access to health care when we need it. And we all want to feel the benefits that come with a strong provincial economy.
These are the priorities that have shaped our province’s historic capital plan. The scale of change is staggering: $18 billion worth of work is happening in every corner of British Columbia. By building the schools, roads, hospitals, housing, post-secondary facilities and more that our growing province needs, our plan is supporting 100,000 direct and indirect jobs during construction.
Together we’re building our way to a better quality of life, no matter where you live. For urban centres, parents taking their kids to soccer practice will be able to hop on the Broadway subway.
An electrician travelling from her home in Surrey to a job in New West will get to where she needs to go because of the new Pattullo Bridge. Metro Vancouver is home to one of the top transit systems in the world, and our government is committed to building on that momentum, creating transit-oriented housing, good jobs and a path towards a cleaner future.
Looking to our rural communities, Highway 1 upgrades between Kamloops and Alberta will improve travel for locals, visitors and commercial drivers. East of Golden, we’re on the final phase of the Kicking Horse Canyon project. Investments in rural B.C. and B.C. Transit are shortening daily commutes for people, while the B.C. Bus North connects our northern residents to jobs and services, along with family and friends.
After years of cuts to ferry service, our government is prioritizing coastal communities. Sailings have been added, fares have been frozen on major routes and the seniors discount is back in effect.
But infrastructure is about more than ferries, roads, bridges and transit. It’s also about the flow of ideas, knowledge and opportunity. We’re very close to bringing our 500th connected community on line. This means a digital world of opportunity is now open to people in Deka Lake, Clinton, Tofino and Haida Gwaii. British Columbia is growing, and we need to ramp up infrastructure investments, digital and otherwise, to keep goods, services and people moving and B.C. businesses thriving.
As government, we’re working closely with the Business Council of British Columbia and the B.C. Chamber of Commerce to foster a competitive environment, and I want to say thank you to all the businesses and the entrepreneurs who have chosen to set up shop in B.C. We know that our economy must provide opportunities for business to succeed, and they are.
Named as one of 2019’s top Global Cleantech companies, Semios gives B.C. farmers real-time data on their crops. This kind of innovation feeds into the work of our government’s food security task force, which aims to unlock the potential for agritech in B.C., creating more jobs and reducing waste.
We’re making good progress. Thanks to the hard-working people who make up B.C.’s agriculture sector, 2018 was a record year for revenue. Another boost is going to come from new regional food hubs in Surrey, Port Alberni, Quesnel and Vancouver.
Mining, another one of B.C.’s key industries, is joining forces with clean tech to give local companies a global advantage. As one example, Saltworks has created new energy-efficient technology that turns contaminated water from resource extraction into clean, fresh water.
In the rapidly expanding field of biotech, homegrown talent like Stemcell Technologies is on track to create hundreds of new jobs in Burnaby.
As work scales up on LNG $40 billion project, our province is going to benefit from an estimated 10,000 construction jobs and 950 permanent jobs. This new industry will create a legacy of skills and economic opportunity to sustain people and communities from the northeast to the north coast.
It’s clear that good things are happening in B.C. In 2019, more than 45,000 jobs were added in the private sector, along with continued wage growth. In partnership with the B.C. Green Party caucus, the emerging economy task force will help keep B.C. at the cutting edge of clean tech, artificial intelligence and quantum computing.
As I’ve said before, we can’t have a strong economy without creating opportunities for B.C.’s rural regions to prosper. Tourism has become a major provincewide employer and an economic driver for many small and rural communities. Growing the tourism industry can help boost local businesses and provide lifelong careers for people right around our province.
New and upgraded infrastructure delivered through the investing in Canada infrastructure program is also helping to build healthy and resilient communities. We’re working with the federal government, local governments and First Nations to deliver projects that support local growth, a green economy and inclusive communities. Projects are underway, and there are more coming this year.
Now, our government knows that for many communities, paying for the infrastructure that people and businesses need can be tough or almost impossible on their own. That’s why we’re investing in rural communities in a way that works for them.
Soon people in Williams Lake will be able to connect at a new community centre. For Osoyoos and Prince Rupert, this new funding will resolve long-standing problems with the quality of their drinking water.
Investing in green infrastructure is part of our government’s plan to grow the economy, while protecting the clean water, land and air that we all, as British Columbians, cherish.
Harnessing the power of a greener future to help grow our economy is at the heart of CleanBC, our government’s commitment to climate action. As part of last year’s budget, we backed our plan with approximately $900 million over three years. Budget 2020 builds on CleanBC with an additional $419 million over the fiscal plan. This will go towards making our schools, our universities, our colleges and our hospitals more energy-efficient, along with increased support to help industry move towards clean, low-carbon solutions.
This year’s budget maintains increases to the climate action tax credit for families and adds $20 million to the province’s program to make purchasing a zero-emission vehicle more affordable. I’m proud to say that we’ve almost hit our 2025 electric vehicle target, four years ahead of schedule. We know that this new funding will help accelerate the clean energy transition.
Our economy remains resilient. But every year we must plan for and adapt to a changing climate. Recent years have seen wildfires rage across our province. Natural disasters devastate people, homes, communities, businesses and industry. In response, the province is boosting total funding to $519 million over the fiscal plan to help B.C. prepare for, respond to and recover from wildfires, floods and other emergencies, because, again, we’re stronger when we work together.
In partnership with Indigenous peoples, we’re choosing a more prosperous path forward for everyone. Passing the Declaration on the Rights of Indigenous Peoples Act was truly a historic day. It was the culmination of many years of hard work for many people — and a very long wait for Indigenous peoples.
We know we have a lot of hard work to do. The act is a significant step forward and will serve as the foundation for a new way of living and working together. Funds are flowing to First Nations through a historic revenue-sharing agreement for an estimated $3 billion over 25 years. For many communities, being able to count on stable, secure funding long into the future is making a real and meaningful difference.
The funds are being put to good use already — building youth community centres, supporting forest management to protect peoples’ homes from wildfire and launching language programs that are key to the health of communities. For the Nadleh Whut’en, it means building up to 30 new homes. This is the first new housing that the community has had in years. As we all know in this House, finding a place to call home in the community you love is transformational.
It’s a true privilege to stand here today and table our government’s third full budget that offers stability and opportunity. I’m honoured to come to work every day to make life better for the people of British Columbia.
Together we’ve accomplished a great deal. Families are saving thousands of dollars thanks to investments in child care, the elimination of MSP premiums, the soon-to-launch B.C. child opportunity benefit and the new B.C. access grant. Families will benefit from new funding to strengthen our schools and hospitals while delivering essential community supports.
Meanwhile, landmark investments in roads, bridges, hospitals, housing and schools are delivering a better quality of life while creating jobs. Together, as government, we’ve chosen a fundamentally different path, a choice we can all be proud of. We’re making life more affordable. We’re improving the services that people count on. We’re creating opportunities for you and your children to be able to build a good life in British Columbia.
Yes, significant progress has been made, but there is no shortage of work still to do. You, the people of British Columbia, have always been working hard to get ahead, and we, as a government, are working hard for you.
I want my grandkids to know the sense of pride that comes from putting down roots, contributing to your community and building a good life for yourself, your family and others.
This is at the heart of what I believe British Columbians want: a stronger province for everyone.
A province where the next generation won’t face a housing crisis, but people will be able to find a more affordable home with space for their family to grow.
A province where equal opportunity and access to education will put people’s dreams within reach and end the cycle of poverty.
A province where the heroes of our communities — early childhood educators, our parents, our health care workers, teachers, tradespeople — will see the recognition they deserve for keeping our province running.
A province where everyone will have access to the health and mental health services they need, no matter where they live and no matter the size of their bank account.
And a province with a strong economy, where future generations, together, can enjoy our clean water, our land and our air.
Our government is working hard every day for you. Budget 2020 is our plan to keep B.C. moving forward. Together we will build a stronger B.C. for everyone.
S. Bond: It is my privilege today to deliver an initial response to Budget 2020 on behalf of the official opposition. Before I begin, I would very much like to acknowledge that we are on the traditional territory of the Songhees and Esquimalt Nations.
Additionally, I would like to acknowledge the hard work of the minister and the ministry staff, who we know have worked very hard putting together a budget. We recognize that it’s about making difficult decisions. I can assure the minister that we will agree to disagree on many of the outcomes of the work that she and her team have done, but I do certainly appreciate the time spent in the service of British Columbians.
Today, as designated speaker, I will provide a few very brief comments and will reserve my remaining time for further remarks after we’ve had a chance and some additional time to actually review the budget documents in detail. I also want to note that my co-critic, the member for Surrey South, will provide her remarks later in the debate. Over the course of the budget debate that will follow, my colleagues, in their roles as critics, will present specific, detailed questions and comments related to program areas and policy decisions that the government has presented in their budget today.
After a lacklustre throne speech, the government has delivered a budget that we simply cannot have confidence in, one which shows that all key economic indicators are headed in the wrong direction and one that fails to live up to the most foundational promises that were made to British Columbians.
When the NDP took office more than 2½ years ago, they raised the expectations of the people of British Columbia like few other governments before them had, and then they raised their taxes too. In Budget 2020, we have seen this trend continue, with now 22 new and increased taxes since this government took office.
The Premier told the people of B.C. that they could expect decisive action on affordability and climate change. He told them they could expect significant improvements in housing and child care and an open and transparent government. However, Budget 2020 confirms that this Premier has no intention of keeping many of the promises that he made directly to British Columbians 2½ years ago, and in many cases, those promises have been abandoned.
The throne speech foreshadowed the budget that the government has delivered today. In fact, the minister warned people ahead of budget day not to have high expectations. On that point, she delivered.
In addition to recognizing that the budget falls far below the high expectations that this government laid out, a closer examination of the budget details suggests that there are some deeper problems. The NDP has a history of presenting what looks to be a rosy financial picture at first glance but is later found out to be a patchwork of increased taxes, out-of-control spending and unfulfilled promises.
Last year the government would have been in deficit if not for collecting both the MSP and the employer health tax at the same time — in other words, double-dipping in taxpayers’ pockets to the tune of over $1 billion.
The tax-and-spend policies of this government have resulted in $5.8 billion in taxation revenues, which will increase to $8.8 billion each and every year. Yet despite the NDP’s rhetoric that would lead you to believe otherwise, little has been gained for British Columbians from an $11.4 billion increase in annual spending. Even with these projections, we see an incredibly thin surplus, the most recent in an ever-shrinking series of surpluses from this government. Now, I’m not sure about you, but this situation has a remarkably familiar feel to it.
Not long ago we learned that the Premier was asking what happened to the B.C. dream in a strategy document now quietly posted on the government’s website. Only 2½ years since the Premier has been in power, I can assure him many British Columbians are asking exactly the same question.
While the NDP raised the hopes of people in British Columbia, this budget confirms that this is a government that has walked away from the promises they made and, frankly, has run out of the money they require to reach their own lofty rhetoric.
We were looking for a comprehensive strategy to address the worst forestry crisis in over 40 years, which is devastating thousands of hard-working families and communities in this province. It would have been nice to see some kind of solution to address the fact that Metro Vancouver renters are now paying $2,064 more per year in rent today than they were when the NDP took power only 2½ years ago.
We would have liked to have seen a plan, a plan with some action, to deal with the looming crisis in strata insurance. We hoped that there was going to be some sort of relief for small businesses struggling to pay skyrocketing property taxes, dealing with issues related to regulation and lack of competitiveness.
Most of all, we needed a budget that would repair B.C.’s reputation as a competitive place to do business. But we are currently being eroded by, now, 22 new and increased taxes, labour uncertainty and declining confidence in our province. Unfortunately, none of those things, none of them, can be found in Budget 2020.
Even though we’ve only just started the process of combing through this budget, we’ve identified many obvious gaps that continue to be overlooked by the NDP, illustrating an ever-growing gulf between what they said they would do and what they are actually doing.
For example, what happened to the government’s promised $10-a-day daycare program? We heard language in the throne speech, which is reflected in Budget 2020, showing that this government has abandoned their commitment to universal $10-a-day child care for those who need it and want it. Even with their claim of 10,400 new child care spaces, their own documents say that fewer than 2,000 are actually functioning.
Moreover, six years into the government’s ten-year child care plan, the child care budget will flatten at one-third of the projected cost of a $10-a-day daycare program as promised by the NDP, promised to British Columbians in 2017.
What about that $400 renters rebate that was promised to British Columbians? It’s also completely absent from this budget. As the real estate market starts to heat up again, we’re left wondering when, if ever, this government will understand that until it takes action to unleash more supply of housing, all types of housing, housing will remain unaffordable for far too many British Columbians. Yet Budget 2020 shows that housing starts are down. Housing starts are down by 22 percent in our province.
Increased supply must be an essential component of any housing strategy, but with only 2,400 units of affordable housing opened by this government to date, it’s going to take them almost 100 years to keep their promise to build 114,000 affordable homes. A hundred years is a long time.
We’ve also seen there is still no clearly articulated strategy for economic growth, nor is there a jobs plan. The inaction on these fronts is impacting the private sector in real and damaging ways. In November, we saw B.C. business confidence hit its lowest point since 2009, during the financial crisis, and it’s no wonder why. B.C. is at the back of the pack when it comes to supporting small business, the very heart of our economy. Sixty-four percent of businesses are now saying that taxes and red tape are causing them difficulty. No mention of that in this minister’s budget.
As part of the Budget 2020 consultations, the B.C. Chamber of Commerce submitted to this Finance Minister that there is a “growing lack of confidence in B.C…as a place to invest thanks to unclear regulatory processes and the shifting goalposts thanks to provincial government actions.” Yet this government, in this budget, fails to provide them with any relief or reassurance.
The lack of a jobs plan has become even more serious as we tell the rest of the story. Over the last eight months, this province has lost 32,800 private sector jobs, many of them from resource industries. We watched month after month last year as mills were curtailing shifts, laying off workers or closing altogether, affecting individuals, families and their communities. In the hopes of inspiring government action, truck loggers and forestry workers held rallies in Vancouver. They drove their trucks hundreds and hundreds of kilometres to send a message to this government, and today in Victoria, and they have been met with silence by this government.
Yet despite supposedly being a government focused on people, this is the government that ripped the rural dividend fund, worth $25 million, out of rural and forest-dependent communities last year. Despite our best efforts to look for it today and to pledge to restore it, there is no mention of the rural dividend fund in this budget, let alone a plan to adequately address the needs of forestry communities, who are struggling to get by.
The question of whether the current government is truly meeting the needs of the people of B.C. is an important one, and it is worth detailed consideration. As my colleagues and I dig deeper into this budget over the next few days, it will be on the top of our minds. How does Budget 2020 make the lives of British Columbians better? The short answer is that it doesn’t. We’ve already mentioned the broken promises that this budget represents, with the disappearance of beneficial policies and programs, but this budget also lays bare other ways this government is falling short.
Affordability has been the central theme of political discussions in B.C. over the last number of years, and though this government continually proclaims that it is making life more affordable for British Columbians, we have seen that for most people, affordability is worsening.
The government’s now 22 new and increased taxes are placing a larger burden on people and small businesses. ICBC rates have continued to increase, but hey, you might get a break in an election year. And rents continue to climb higher than ever.
British Columbia needs real action on affordability, but instead, we are left with Budget 2020. It is our job as elected officials and legislators to work to provide the best quality of life for all of the people of this great province. More importantly, it is the job of the government to set out a plan for success for the entire province, for small business owners and for forest-dependent communities. I think most British Columbians would agree with that premise.
After our initial look at Budget 2020, it seems like that strategic plan to do just that is missing — no jobs plan, no economic growth strategy at a time when British Columbia is losing in terms of competitiveness. We’ve yet to see a credible jobs plan or an economic growth strategy despite the fact that over the last eight months, we have seen thousands of jobs lost in our province.
If you look at the measures that indicate a strong economy, all of them in this budget — and I would encourage everyone to look through the budget documents — are trending in the wrong direction. There is declining employment, retail sales have flatlined despite population growth, exports are declining, and there is slowing growth in real business investment — all of the key and essential pieces to maintaining and growing an economy so that we can afford to provide for British Columbians without taking the money out of their back pocket.
The word “trade” has been deleted from the ministry profiles, and the only revenue generation plan this government appears to rely on is the back pockets of hard-working British Columbians.
One year ago this Finance Minister asked British Columbians to have confidence in the budget she tabled that day. But Budget 2020 raises some serious questions about that request. In the minister’s own budget documents, Budget 2020, we can see that she has overspent her budget projections by more than half a billion dollars. She failed to follow through on promises to build infrastructure, to the tune of over $1billion. How can she possibly ask British Columbians to have confidence when employment is dropping and economic indicators are trending in the wrong direction?
While the minister feels comfortable increasing spending at an exponential rate, British Columbians are having to make tough decisions every day. They’re asking themselves: can they afford to think about household good purchases or, in fact, purchase a new car? The lack of consumer confidence is reflected directly in the budget revenue numbers.
It’s also very telling that even the government’s own coalition partner described the throne speech as underwhelming and backward-looking. I certainly look forward to hearing what they have to say about this budget and hearing their rationale for why they continue to support this government despite the concerns they regularly express both inside this House and beyond.
The people of British Columbia are looking for this government to demonstrate that they meant what they said, whether it was $10-a-day child care and support for renters, for more affordable housing and the opportunity to have a well-paying family-supporting job. For many British Columbians, simply put, there is no relief. There are only unmet expectations and broken promises, and sadly, this budget makes it clear that those promises made to British Columbians just 2½ years ago will not be kept — not now and not in the future.
Most British Columbians likely have no idea that today is budget day. They’re just trying to get through the day. They’re taking care of their families, and they keep hoping that things will get just a little easier. The budget tabled today will provide very little relief when it comes to making life more affordable for their families, no matter how often the government repeats the word.
Today’s budget represents a lost opportunity, and it includes a litany of broken promises: escalating rents, fewer jobs, less affordable housing options, increasing congestion. The list goes on.
What today’s budget should have represented was a blueprint for creating more opportunity for all British Columbians. By that measure, it misses the mark, and sadly, it fails many British Columbians.
I will conclude my remarks for now and ask to reserve my remaining time for tomorrow, as we adjourn debate.
S. Bond moved adjournment of debate.
Motion approved.
Introduction and
First Reading of Bills
BILL 4 — BUDGET MEASURES
IMPLEMENTATION ACT,
2020
Hon. C. James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2020.
Hon. C. James: I move that the bill be introduced and read a first time now.
The bill consists of two parts. Part 1 amends a number of statutes in order to implement the tax measures in Budget 2020. The Provincial Sales Tax Act is amended to remove the PST exemption on sweetened carbonated beverages. This bill also amends the Provincial Sales Tax Act to provide additional registration requirements for the e-commerce sector and to authorize regulations that will provide targeted relief from the sales tax for machinery and equipment used for pollution control and waste management, electric aircraft and electric aircraft conversions, and rural property contractors working outside of British Columbia.
Effective January 1, 2020, the Income Tax Act is amended to introduce a new top marginal personal income tax rate of 20.5 percent. The Income Tax Act is also amended to extend or make adjustments to various tax credits. For example, the training tax credit is extended for three years. The farmers food donation tax credit is extended for three years. A production services tax credit pre-certification notification is introduced, and, Film Incentive B.C. and production services tax credit certification fees are set.
The Carbon Tax Act is amended April 1, 2020, to align B.C.’s carbon tax rates with the emission factors used by the federal government to calculate its carbon pricing backstop rates. This change ensures that B.C.’s carbon tax is based on newer science and that the methodology is consistent with other provinces.
The Tobacco Tax Act is amended effective April 1, 2020, to introduce a tax rate for heated tobacco products to ensure they do not receive preferential treatment compared to other tobacco products.
The Ports Property Tax Act is amended effective January 1, 2020, to provide greater flexibility to municipalities to set a class 4 tax rate for designated ports.
Finally, a number of statutes are amended to improve tax administration through expanding appeal delegation authority; clarifying the application of taxes, credits and treatment of certain goods through a centralization of tax programs; and to ensure finding necessary consequential amendments to various taxations.
Part 2 of the bill includes amendments to three acts, starting with an amendment to the Balanced Budget and Ministerial Accountability Act and followed by the Budget Transparency and Accountability Act and the Financial Administrations Act. The Balanced Budget and Ministerial Accountability Act is proposed to be amended to update and clarify the rules, mainly to accommodate changes we’re proposing to the Budget Transparency and Accountability Act.
This bill was built to allow for a May fixed election date. We are proposing that the bill be amended to address the recent change in the fixed election date to the third Saturday in October, as well as post-election changes like what we saw in 2017. The proposed amendments set forth a budget date on the fourth Tuesday in March following the October fixed election date to allow additional time for the budget and estimates development process. The amendments also provide clearer rules for budget and estimate presentation dates when an election is held on a date other than the third Saturday in October.
These rules will then allow any new incoming governments up to 120 days to present a budget and estimates to the Legislative Assembly if the budget and estimates have not already been presented. The rules also allow for adjustments to release dates for quarterly reports and annual service plans and reports as a result of elections in a fiscal year.
We also propose to amend the act to extend by one week the regular budget annual date for non-election years to the fourth Tuesday in February, which allows slightly more time for a government that is coming in to complete due diligence and also recognizes the impact of Family Day on the budget development schedule.
Finally, the Financial Administration Act is proposed to be amended to complement the amendments to the Budget Transparency and Accountability Act. This amendment includes extending the special warrant spending authority provisions while Legislature is not in session during an election year from 90 days to 120 days.
It also introduces a very limited short-term special warrant spending authority while the Legislature is in session to recognize, again, the tabling of the budget and the estimates on the last Tuesday of March.
This amendment helps ensure that limited funding remain available, should an interim supply act not be enacted by March 31, and would only apply to address election year impacts.
Motion approved.
Hon. C. James: 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 4, Budget Measures Implementation Act, 2020, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Tabling Documents
Hon. C. James: I have the pleasure to rise to table government’s overall strategic plan and the Budget and Fiscal Plan 2020-21–2022-23, which together fulfil the requirements of sections 7, 8, 10 and 12 of the Budget Transparency and Accountability Act. I also table, on behalf of the ministers responsible, the service plans, as required under section 13 of the Budget Transparency and Accountability Act.
The service plan documents are presented in two binders. The first binder contains the service plans for the Office of the Premier and 20 ministries. The second binder contains service plans for the 31 service delivery agencies and Crown corporations. The second binder includes a listing of organizations that are exempt from the reporting requirements of section 13 of the Budget Transparency and Accountability Act.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 tomorrow afternoon.
The House adjourned at 2:47 p.m.
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