Second Session, 42nd Parliament (2021)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, June 8, 2021
Afternoon Sitting
Issue No. 88
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
TUESDAY, JUNE 8, 2021
The House met at 1:34 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this House, I call Committee of Supply on the estimates of Jobs, Economic Recovery and Innovation.
In the Douglas Fir Room, Section A, I call the estimates for Forests, Lands and Natural Resource Operations.
In the Birch Room, I call the estimates for the Ministry of Agriculture, and when they’re finished, we’ll start the estimates of the Ministry of Health.
Committee of Supply
ESTIMATES: MINISTRY OF
JOBS, ECONOMIC
RECOVERY
AND INNOVATION
(continued)
The House in Committee of Supply (Section B); N. Letnick in the chair.
The committee met at 1:39 p.m.
On Vote 35: ministry operations, $78,648,000 (continued).
The Chair: Just if I may, a personal moment to welcome the member for Cariboo North to the House in this new COVID environment. We are enjoying taking our masks off and putting our masks on — especially the member for Kamloops–South Thompson, I’m sure.
With that, who wants to go first?
Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Again, thank you for the reminder for all of us about the masks.
A special welcome to my friend from the Cariboo. It’s nice to see her — first time during the pandemic. Again, it’s a little weird being here, but you’ll get the hang of it real quick.
T. Stone: I, too, would like to welcome the member for Cariboo North. It’s great to have you here in the chamber and in Victoria. Appreciate the incredible work that you’re doing back home to fight for your constituents.
Just for a little bit of planning, we’re going to go through a bunch of jobs numbers and more on some related issues. The two Crown corps that we had talked about earlier are good for today. We will likely end today with a series of some local questions from a number of my colleagues. I’m not sure exactly what time that will start, but it’ll be towards the end of today.
I just wanted to take us back to where we left things off earlier today. We had a fair bit of back-and-forth on StrongerBC and direct supports versus other types of supports — grants and direct relief versus loans and deferrals, and so forth. I really wanted to hone into StrongerBC and the component in StrongerBC which is contained on table 1.2.6 of Budget 2021, “Ongoing business supports from the StrongerBC economic recovery plan.”
The small and medium-sized business recovery grant which was announced in September of 2020, containing $345 million, consisted of dollars that had been approved by this assembly in March of 2020. Budget 2021 provides for a forecast spend, of that $345 million in the small and medium-sized business recovery grant, of $150 million in the 2021 budget and the remaining $195 million in the 2021-22 budget, the current fiscal year that we’re now in. In terms of the previous fiscal year of 2020-2021, $150 million represents about 43 percent of the overall program budget.
First off, does the minister feel that it was acceptable that less than half of the dollars — again, which had been approved by this assembly in March of 2020 — rolled out six months later in the StrongerBC plan in September of 2020, albeit a week before the provincial election was called? That the result of all of those time delays and timelines being stretched and so forth resulted in only 43 percent of the entire program allocation being pushed out the door to those small businesses that really need the support the most?
Hon. R. Kahlon: Because we just started this and the hon. member laid out some timelines, I think it just makes sense to go through a little bit of the timeline with him.
As we were canvassing prior to the lunch break, StrongerBC was announced on September 17, 2020. The intake for this grant program was launched on October 9, 2020. He will, I’m sure, remember that on December 23… A few weeks after becoming minister, after some consultation, we expanded the program on the 23rd.
Originally, it was targeting those that were the most vulnerable businesses. We were able to adjust the program at that point. We further expanded the program on March 4. Currently the staff — which are doing an amazing job, by the way, under challenging times — are approving between $2.5 million to $4.8 million per business day.
I think it’s important to know that 260,000 workers are impacted by the financial supports that have gone out already. That’s significant. If you look at any program in government and go back to the history, 260,000 is a very significant number. I know, in the context of today’s conversation, there are going to be a lot of numbers being used. I think the hon. member and I will agree even saving a handful of businesses is important, but ensuring that 260,000 employees continue to be employed during a challenging time is quite significant.
T. Stone: The question was: is the minister able to explain why only 43 percent of the $345 million program, which was announced…? He said he put the date out there again, and it’s correct: September 27. Why was there the delay between March 2020 and the StrongerBC launch in September? Why was there that delay? Is he satisfied that, likely as a result of that delay, only 43 percent of the $345 million earmarked for this business recovery grant program was actually pushed out the door?
Hon. R. Kahlon: I think we’ve discussed this. I’ll just say it again, that from March 2020 to June 2020 to September to December to January, February, March, now, the pandemic has changed. The needs have changed.
When StrongerBC was announced in September, the program was designed to support the most vulnerable businesses. It was a very specific criteria. As we have done from the beginning of the pandemic, we continue to listen to our stakeholders, and maybe this is a good time for me to say a big thank-you to all of them for working cooperatively with government to find solutions and identify challenges. That’s what we’ve done from the beginning.
The program launched. We heard feedback. Certainly, in the early days of becoming minister, taking this role on, that was a priority for me. I reached out to many of the stakeholders and took their feedback about what they suggested we should change. We accepted all the recommendations. In fact, we made those changes in December.
As businesses started to apply, we were able to continuously adjust as the pandemic adjusted. I think all of us were hoping that the pandemic wouldn’t last this long. Certainly, all of us are praying that it won’t last longer. But that was what we were doing from the beginning.
What I can confirm for the member is that when the budget was initially announced, it was $300 million, and now we have $430 million. So the program has been oversubscribed. We have more businesses applying than we had originally projected. I’m sure he would agree that that’s good for the province. That’s good for businesses across B.C..
T. Stone: Well, I think that what’s good for businesses across British Columbia is for small businesses to still be standing when the pandemic is over.
The reality is this. As I’ve said several times now, we unanimously approved billions of dollars of funding in March of 2020. It took six months and, frankly, two waves of the pandemic before the government decided to launch its StrongerBC strategy, which was launched on September 17 of 2020. Four days later, an election is called, which subsequently delayed pushing these dollars out to businesses even further.
We find ourselves with a new government being sworn in, in November. The minister knows well — we canvassed this extensively through November, December, January and February — just how slow it was to get dollars within this $345 million small and medium-sized business recovery grant out the door. So it’s a bit disingenuous to say, “Well, the pandemic was evolving and changing, and we were hopeful that it wasn’t going to be as bad as it was,” and so forth.
Between March of 2020 and September of 2020, we all witnessed thousands of small businesses close their doors. Many of them are never going to reopen their doors. Many of those folks will tell you that they were looking around for the government of British Columbia to stand up and support them, and the government didn’t roll out the StrongerBC program with those direct supports in the form of grants and direct relief, fully six months after the funds were approved in March. So that’s on the government’s…. That’s their record. It’s unfortunate, but it is what happened. Unfortunately, a lot of small businesses have paid the ultimate price as a result of those delays.
I will further say that the small and medium-sized business recovery grant, albeit when the minister includes the circuit breaker funding amounts, there is an overall larger pool of support there — we’re still going to be standing here months from now waiting for all of these dollars to be pushed out the door in support of those businesses that need it.
I mean, it’s conceivable that we could be 1½ years into this pandemic, and the minister says that the program is oversubscribed. Perhaps he should stop saying, as he did earlier this morning, about how businesses impacted should go and apply for the small and medium-sized business recovery grant, if it’s truly oversubscribed. But that’s a different question. The reality is, we’re a year and a half into this thing, and we’re going to have significant dollars likely still sitting with the government and not having been pushed out to small business.
On that note, I would like to ask the minister: how much has been paid out to businesses currently, like to this date, for the small business recovery grant, the circuit breaker grant, the PST rebate, the increased employment incentive and the launch online grant? Again, how much money is in each of those pots, and how much has been actually paid out to businesses in each of those five program areas?
Hon. R. Kahlon: So there are a lot of things there that the member asked about. But I think, again, before we move to some of the specific questions at the tail end, I think it’s important to clarify for the member, if I haven’t been clear enough for him, that in March we didn’t wait until September to put supports in place. Supports were put in place in March.
Additional plans — part of StrongerBC — additional supports came in in September, but we did put supports in immediately to support businesses. Of course, we can debate this back and forth if the member disagrees, but it was popular from those that were affected, because those were measures they were asking for.
The program, StrongerBC, was launched in September. Government staff had to turn that around into a program to set up their intake process. They set that up and launched it on October — I believe it’s the 20th. I shared the exact date with the member already. So the member should know that. It opened up October 20. I’ve given him the timeline of how the program was adjusted, we’ve been pretty transparent on that.
I’ve also shared with him that the small and medium-sized grant program was originally $300 million.
When I say oversubscribed, I mean that we have more applications since that $300 million, and that’s why the budget has gone to $430 million. I’m sure the member, like myself, will encourage businesses that need financial supports to apply. I know there have been times when some people in the opposition have raised the needs of certain businesses. We have proactively reached out to them to help them apply, and some of them have already successfully received financial supports.
The member asked about a couple of programs. I’ll go through each of them with the member. The small and medium-sized grant program was launched on October 9, expanded on December 23 and expanded further on March 4. We have received 17,895 complete applications, and 10,217 applications have been fully approved. That’s $214.4 million.
It’s important to note, from the adjudication team, that 30 to 50 percent of applications submitted for adjudication came in with all their documentation. Between 30 and 50 percent came in with complete information, and 40 percent of those submitted inaccurate banking information, which obviously slows the process down. The timelines for a complete and accurate submission are four to six weeks. I think that’s important for the member to know.
He raised the circuit breaker grant program, for which we had 12,416 applications fully complete — that’s $52.498 million — and 40 percent of those applications that were submitted had inaccurate banking information. It was often the case that businesses would apply, but then they would put their personal banking information in, as opposed to the correct business that they were applying for.
The member asked about the launch online program. I think it’s important for the member to note that the original launch online dollar allocation was used up within two weeks. Within two weeks, that program had been so popular with businesses throughout B.C. that that money was fully subscribed. So we increased the financial contribution significantly. Over 7,300 applications have been received, and 3,680 of those businesses have received $15.95 million in funding, as of June 4. Of course, the member knows that Alacrity Canada is administering that program.
I think he may find this interesting as well: 49 percent of every dollar that’s gone out from that program has gone to BIPOC and regional communities. So the money has been spread to communities. It wasn’t centralized in Vancouver. We had metrics in place to ensure that dollars were getting out to rural communities, that BIPOC communities were having an opportunity to participate. And 49 percent — that’s a significant number of businesses.
The member also makes…. There have been a couple of times where, I guess, we disagree on numbers. I’m reporting actual reports and facts here. The member has been raising some numbers; I’m not entirely sure where his are coming from. The monthly net businesses opening in B.C. have been going consistently positive since June 2020.
So February 2020, we saw 218 businesses, net decrease. In March 2020, we saw a decrease of just over 5,000. In April, we saw a decrease. But from June, we’ve been seeing a steady increase, net increase, of businesses. In fact, we are at 99.8 percent of businesses that have opened from February 2020 to now — 99.8 percent.
We’ve seen a steady net increase of businesses opening from June 2020 to now, which I think is significant. Again, I think it’s a testament to the amount of financial supports that are in place that that many businesses were able to continue to stay open. Of course, my family ran a restaurant here in Victoria for a decade. I’ve said on the record many times that it was difficult in normal times to be able to operate a business. I can only imagine the stress that many businesses have faced in the pandemic.
Again, a historic amount of dollars, highest per-capita supports for people and businesses in the country, and the numbers speak for themselves.
T. Stone: Well, on the business numbers that the minister has just thrown out there, I would hope that he would agree that there are sectors that are not reflected in his 99.8 percent number, meaning there are sectors that continue to be significantly hampered. Just last evening, walking down Douglas Street and over to Wharf Street and up, I spent about an hour walking around downtown Victoria. It’s just staggering, in early to mid-June, that if you’re lucky, you might walk past one other human being in an entire block of downtown Victoria.
Business after business is closed because their hours have been significantly reduced. You look at their door, and it says their business hours. There’s one Chinese restaurant: “We’re only open on Fridays and Saturdays.” A clothing store, only open on Mondays and Wednesdays. A sports retailer I was looking at was only open four days a week. Presumably, they were open more than that before the pandemic hit.
The proof is really going to be in the pudding months ahead from now when we actually see how resilient they really have been able to become. Frankly, when CFIB reports, as they did just the other day, that the average small business has taken on $170,000 of debt during the pandemic, the chickens are going to come home to roost when that debt has to be paid back.
I would hope that the minister would acknowledge that. These blanket statements of 99 percent of all the jobs being back, when we know that the job profile in British Columbia is very different today than it was a year ago…. Those blanket statements around 99 percent of businesses having reopened…. The profile of our downtowns and communities across the province is very different today, from a small-business perspective, than it was one year ago.
I want to ask the minister. There were two other business supports I had mentioned that are in that table from Budget 2021. The first is the PST exemptions on select machinery and equipment. The second is the wholesale pricing for hospitality licences. The other one that I had mentioned earlier that I was hoping to get an update on is the increased employment incentive tax credit — just what the profile looks like on that program as well, the total program dollar value and, again, how much of those funds have actually been pushed out to support the businesses that they’re intended to support.
Hon. R. Kahlon: I’ve been on the record many times to say that we’re all in the same storm, but we’re all in different boats.
The impacts of the pandemic have been felt disproportionately by people but also businesses. Certainly, as the hon. member knows, I was born and raised here. When you walk around the downtown core, it’s quiet. It’s obviously quiet because we know the tourism sector in particular is not seeing international tourism. We know that many businesses have shifted to working remotely.
There are a lot of unknowns. The member is right on that. There are some unknowns around what that will mean going forward and whether there will be some sort of return to work.
But when you don’t have that base of people coming to visit the local restaurants here, and you don’t have the international tourists — yeah, it’s challenging. It’s a challenging time. We have been clear: we acknowledged from day one that the tourism sector has been hit hard. I agree with the member on that.
The member asked three questions around PST exemption, wholesale pricing and employment tax incentive. I suggest the member raise that in the Ministry of Finance estimates, which I believe are coming in a couple of days. They’ll be able to better provide that answer for him.
T. Stone: I guess the next question would be this. I appreciate the numbers that the minister has put out there today, in terms of the update on the small and medium-sized business recovery grant, the circuit breaker, the launch online. I’m a bit surprised that he can’t or won’t — as a member of cabinet and a member responsible for economic recovery and jobs, generally — answer questions about the increased employment incentive. He certainly talks a lot about it out there in the province.
I want to ask this. We’re talking about the small and medium-sized business recovery grant, which, again, had an original dollar value of $345 million. Only about 50 percent of the dollars, or less than 50 percent of the dollars in that program, are out the door, and the minister says the program is oversubscribed.
The circuit breaker grant, if I heard the numbers correctly — about 40 percent of the dollars are out the door. That, I believe, he said is oversubscribed as well, or fully subscribed. Launch online was fully subscribed within days of being launched, according to the minister, but only 50 percent of those dollars are out the door.
It kind of points to a theme here of pretty significant delays — adjudication times, application processing times and delays in actually getting the supports out the door. If we’re fully subscribed in most, if not all, of these programs, why is it taking so long to actually get these dollars out to the businesses that critically need the support? They need it now, not weeks or months from now.
Hon. R. Kahlon: Appreciate the question from the hon. member. I think I highlighted some of the challenges around documentation in my previous answer: 30 to 50 percent of applications for the small and medium-sized recovery grant were submitted for adjudication that had the complete documentation. That means up to 70 percent at times didn’t have it all in. Forty percent of those who submitted — inaccurate banking information.
It’s not the entirety of the challenge, but there have been some challenges in that circuit breaker I highlighted also, because that program was very streamlined. In fact, it was, you can say, co-developed but with strong advice from our association and private sector partners.
Even that very streamlined process had about 40 percent of applications that came in with not complete information, so that leads to, obviously, some delays in the process.
Then the question around Alacrity Canada administering the program. I think it’s important for the member to know that the original budget for that program was used up within two weeks of the program. We had enough applications within two weeks. That’s the program for launch online. That’s why we significantly scaled up the amount of money available. If you have enough applications within two weeks, you know there’s a real need for that program. Alacrity Canada is going through the applications and supporting our businesses to get online.
[S. Chandra Herbert in the chair.]
I think that’s important work — important for many of our businesses to prepare and transition for what the economy will look like post-COVID and, certainly, the challenges they’re facing right now.
T. Stone: What is the average adjudication time or processing time for applications in the small and medium-sized business recovery grant program, the circuit breaker program and the launch online?
Hon. R. Kahlon: For the small and medium-sized recovery grant program, the ideal time, with a complete and accurate submission, is four to six weeks. With the circuit breaker relief grant program, the ideal timeline, with complete and accurate information, is two weeks. With Alacrity Canada and the launch online, it’s 15 business days.
T. Stone: The concern that I’m highlighting here is just how long it seems to be taking for the government to actually, if you look back over the course of the entire pandemic from March of 2020 to today, push supports out the door for small business.
I’m trying to make sense of the fully subscribed, oversubscribed realities of these programs, as the minister has stated, with the fact that there are still, in each of the cases of these three programs, at least 50 percent of the funding that hasn’t yet been pushed out the door. It just doesn’t seem to make sense.
If we just go back through the dates here. The circuit breaker was launched on April 8 as a carve-out from the small and medium-sized business recovery grant. So two months ago. There is only 40 percent of the dollars out the door — 40 percent. It’s been two months.
The launch online, which was launched on, I believe, February 3 — that’s four months ago — is only 50 percent out the door. Then, of course, the granddaddy of them all, the small and medium-sized business recovery grant, with approximately $400 million in it, was launched on October 9 of last year, which is eight months ago, and only 50 percent of the dollars in that program have actually been pushed out the door.
I mean, those are all the dates and the percentages as provided to me today by the minister. Forty to 50 percent of the dollars out the door for funding that was announced, in the case of the recovery grant, back in October; the launch online, in February of this year; and the circuit breaker, two months ago, on April 8.
What is the minister going to do, or what is he doing, to accelerate the application process and to flatten this application process, recognizing many of the businesses actually should be eligible for a couple or, perhaps, all three of these programs? If they provide the financial information and the other required documents in one program, perhaps they shouldn’t have to provide the same level of documentation in subsequent programs. Maybe that’s not the problem.
What is the minister going to do to significantly expedite the application process and the adjudication times here so that the 50 to 60 percent of the hundreds of millions of dollars that have been approved by this Legislature to support small businesses actually get pushed out the door in weeks from now, not months from now?
The Chair: Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Welcome to the chair.
There is, I guess, a whole bunch of things. I think it’s been clear from the beginning that since I’ve become minister, we have been nimble.
We have adjusted programming as needed. We’ve taken feedback. We’ve listened. We’ve created tables and had meaningful exchanges with all our stakeholders and adapted good ideas to our programs from the beginning.
As the member will know — we’ve talked about this — the pandemic has changed, needs have changed along the way. I mean, we created a circuit breaker program within days, which was extraordinary, a real credit to the civil servants within the B.C. government for the amazing work that they’ve done. We’ve listened. We’ve adjusted. We’ve been nimble.
Staff inform me that they have had so many positive conversations with those applying about the recovery plan portion of it. Many businesses that have applied really appreciate, in the conversations with our adjudicating team, the process of building a recovery plan. Many of them haven’t had to think about that. Of course, some of the larger operations have the means to do this, but a lot of the small businesses haven’t had to think about that. The adjudicating team highlights the positive interactions that they’ve been having with businesses on that.
The member highlighted that it’s possible that businesses can get multiple applications and grants. It’s very possible for a restaurant to have gotten the small business recovery grant, the circuit breaker and the launch online as well as getting tuition covered for the digital bootcamp. That’s significant for many businesses.
I think it’s also important for the member to note that staff have shared that it’s not a simple process like the government’s programs in the past, where you’re rejected or you’re approved, and it’s over. There is a lot of back-and-forth that happens. The adjudicating team has been working very closely with every applicant, not just to say, “You’re rejected,” but to say: “Have you considered this in your application? Can we suggest this? Maybe you can apply for a greater dollar amount, because if you readjust your paperwork….”
They highlight the fact that the small and medium-sized business grant program is high-touch. It’s back and forth. They’ve expressed that some businesses didn’t file taxes, so they had to wait for people to go back and file their taxes. Often the case is that these businesses have never applied for a government program, ever. This is the first time they’re applying for a government program.
The adjudication team shares with me that there are a lot of emotions. Not only are they spending time with folks on the application, they’re also talking to them, because we’re all going through a very traumatic experience in our lives.
To have someone on the other end to understand and listen to a small business owner and their frustrations and their anxieties about what they’re going through is very important. I think it often gets overlooked in the thinking around this as approved or not approved — that there are real human beings involved. I appreciate the work that our team is doing to ensure that there is a conversation. The door is open. We continue to be flexible.
The other program, the Alacrity Canada program, is very similar. And, of course, the circuit breaker program was launched, again, in record time. I’m sure the member has more questions on them.
T. Stone: Well, I don’t take issue with the hard-working public service that are, I’m certain, working long days and probably have been under a tremendous amount of stress and anxiety as they’ve been working with people day in, day out that have been going through their own challenges and stress and anxiety. My issue is the amount of time it has taken this government to create programs and push them out the door and push the money out the door.
I will say again, the small and medium-sized business recovery grant was created and launched on October 9, eight months ago. By the minister’s own numbers, just under 50 percent — it’s actually 49.8 percent — of the dollars are actually out the door. How is that possible, eight months since the program was created and actually 14 months since the beginning of the pandemic and the approval of the funding to support businesses? How is that possible?
On top of which, the launch online, as I said, launched in early February — so four months ago. It only has 37.9 percent of the dollars out the door. That’s in a four-month period. That’s, apparently, on a program that’s been oversubscribed, that the minister had to put additional dollars into because of the uptake and interest.
Last but not least, I understand that — certainly, by this government’s track record — the creation of the circuit breaker grant, he says, was created in days. Well, fair enough. By this government’s track record, that’s pretty fast. But even that program has been out there for a number of weeks. It was launched on April 8. So that’s two months ago, and we’re sitting here with 40.4 percent of dollars in that $130 million program out the door.
The minister’s comments about nimbleness, meaningful and positive feedback, being adaptable, engaging stakeholder conversations — all this is all fine and dandy. But this Legislature approved hundreds of millions of dollars in supports for small businesses, at least half of which, by the account of these three programs, hasn’t actually made it to the small businesses that need the help. That is wrong.
So I will ask the minister again: what is he doing to fix that? What is he doing to actually speed this process up? Will he commit to hiring some more people to help with the application process? Will he commit to modifying the eligibility requirements on these programs, if required?
He knows, and I know, of lots of businesses that have fallen through the cracks. We’ll talk about some of them in the moment that, frankly, haven’t been eligible for any of these grants and need help. They’re sitting there looking at hundreds of millions of dollars that haven’t been pushed out the door yet in these programs, wondering: “Well, why is my situation not important enough? Why do I not warrant actually being successful in applying for some funding?”
I’m asking on behalf of thousands of small business owners out there, hard-working men and women who have risked everything. The average business has taken on $170,000 of debt to try and survive this pandemic. Many have seen their revenues drop to next to nothing. What is the minister doing today to accelerate the approvals of these different grant programs so that in a couple weeks we could be having the conversation around maybe 80 percent of the funds being out the door?
A couple of weeks after that, let’s make the goal that we’ve got all the funds out the door so that this support actually can be put to use to prevent any further businesses from having to close permanently or not be able to bring their employees back as quickly as they otherwise would, and give some certainty that these businesses are going to be able move forward with more confidence in the months ahead.
Hon. R. Kahlon: Again, I appreciate the questions from the member opposite. When he was referring to the circuit breaker, he said that for this government’s standards, getting a circuit breaker up and running in a few days might be good. I was really curious about that. When, in his experience, has he ever seen a program or has he, himself, put a program together that was up and running in a few days?
Perhaps he can share from his experience — or perhaps any time in government that he can reflect on — when a program was created in that timely manner. I think it would be a good opportunity for me to hear about that.
Now, the question the member had was: what are we doing to help expediate the process? We hired additional staff in March to go through the process. As we saw through the adjudication team, where there was high touch, where businesses wanted to talk and discuss their applications, we wanted to ensure that there was staff to be there to support them.
I think it’s easy, talking about numbers, to forget the fact that the small and medium-sized business recovery grant program has already helped over 10,000 businesses here in British Columbia. Often we talk about one business. Can this business get money? Can this business? Just take a step back and think about over 10,000 businesses, 260,000 staff that have been supported through this process. It’s quite significant.
If you look, since June 2020, we have seen a net increase in businesses opening — every single month since June 2020. That is quite significant. How is that happening in the middle of a pandemic? It’s because of the significant supports that are in place via government. We’ve talked about it.
Of course, the member would like to talk about just one program as the only program for supporting businesses. If he would like, I am happy to go through the entire list again. We do have plenty of time. But he’ll know that it’s a very comprehensive amount of support that we’ve put in place.
I haven’t even touched on the supports the federal government put in place. We work closely with the federal government to ensure that whatever programs we put in place are complementary and fill in needs that, perhaps, their programs didn’t address. I’m sure, on further questions, I can go through that entire list for the member again.
T. Stone: Well, I’ll say this: thank God that the federal government came to the table with CERB, with the rent subsidy program, with the range of other business supports that were provided — the wage subsidy program. Thank God, because the overwhelming support, in terms of direct supports and relief for business, has actually not come from this government here in British Columbia; it’s come from the federal government in Ottawa.
What this government has tended to do is tag along and try to ride on the federal government’s coat-tails, as they did with the rent subsidy program. But the big dollars have come from the federal government. So if the minister is now going to transition to a component of estimates here by trying to take credit for federal dollars, I think that’s patently ridiculous.
I want to just ask a few questions about some specific businesses. I’ve asked the question in here a few times. Why, if we’ve got 50 percent of the funding still sitting in the government’s bank account, not sitting in small businesses’ bank accounts, 50 percent of the funding, roughly, across these three programs that we’ve been talking about for an hour or so here today…. As one solution moving forward to get the money out the door, why not look at expanding the eligibility a bit, based on cases that have been denied and, frankly, have been denied for ridiculous reasons?
The minister would know well that I have spoken about a number of businesses that have come to me, and we’ll have other examples from other colleagues later today. He’ll recall that I’ve asked a few times in this House about the Ohana Market in Sun Peaks. Bobbe Lyall, a young woman, pursued her dreams, started a small business. She started the business up in late 2019. She has struggled all year — all through 2020 and into 2021. They’re still standing. They’re making it work, but just barely.
We asked the question of the minister many months ago, and said their issue — the Ohana Market in Sun Peaks — is that the eligibility requirements for the small and medium-sized business recovery grant provides for a requirement that you have to show a profit in 2019. They’re a new business. They couldn’t show a profit in 2019, and they only started in late 2019. They also didn’t qualify, because they hadn’t been in business for the full required 18 months. I mean, these are like artificial lines that are drawn in the sand.
I asked the questions in this House, and obviously, the ministry is paying attention. A really decent, hard-working individual within the ministry reached out to Bobbe, just to understand her situation and to ask for a few more details — and presumably to try to help, so fair enough. But it’s what I said to the minister prior to that engagement happening. I said that you can have somebody call her, but unless you change the eligibility requirement requiring being in business for 18 months and having a positive cash flow in 2019, she’s not going to qualify. So you’re wasting her time, and you’re wasting your staff’s time. Nevertheless, someone from the ministry called.
Well, just the other day, May 28, I get an email from Bobbe, an update, and I want to read it into the record, because I just think this reflects well an example of the thousands of businesses out there that have been excluded from these grants and, certainly, haven’t been eligible for those that they should be.
She says to me, on May 18:
“Hello, Todd. I just thought I would follow up with you with regards to the B.C. recovery grant.
“After you spoke about Ohana, I did hear from the ministry. They were kind, and initially felt that with the actual occupancy from the resort, we could qualify. So they encouraged me, and I did go through the process of applying and felt quite optimistic based on our conversation.
“After over a month of waiting, with no contact, I reached back out to see if there had been any movement. After another week, I did finally hear back that we don’t qualify, because we don’t show positive cash flow prior to the pandemic.”
Again, they opened on December 25, 2019. December was a negative month, from a cash flow perspective. January was negative. February was negative. But they were able to just eke out their existence as a business as they have gone through this pandemic.
She goes on to say: “I feel all of our choices have expired. I know that we are almost through this, and we’ve been holding on. I’ve pivoted, and my team has worked incredibly hard. I’ve been down every other rabbit hole there is, and my business cannot sustain any more loans.” She goes on to talk about the level of debt that she’s had to take on as a result of the pandemic.
This is an example of one of many small businesses that…. They don’t understand. I don’t understand. I don’t think British Columbians understand why this particular business, Ohana Market, on behalf of many other businesses that are in exactly the same situation….
Why are they not eligible for the small and medium-sized business recovery grant? Why will the minister not change the eligibility criteria so that they are eligible to receive a little bit of support that would go a long ways to helping this small business stay in business and continue to serve the community where they’re located and employ about a dozen people?
Hon. R. Kahlon: Again, the member gave a glowing endorsement of the federal Liberal government: “Thank God for the federal Liberal government.” I’m sure they’ll find that quote and use that glowingly.
Again, I’ve highlighted for the member on several occasions in these estimates — and I appreciate we’re only on day 2; by day 4, I’ll hopefully have hammered away home — the amount of supports that we’ve been able to provide here for businesses in British Columbia, for important businesses.
The member mentioned a specific business. Of course, I can’t look up the specific business and what they qualified for or what they didn’t, but from the sounds of his description, I certainly hope that he had advised them to apply for the circuit breaker too, if they’re a restaurant, because that would have been money available for them. I’m sure the member, being a good critic, would have informed them that that would have been the best course of action. I’ll leave that with the member.
Now, he’s got quotes of a business that was hoping to apply. I’ve got hundreds of quotes from businesses that applied and received the grant.
We had Whistler VIP Mountain Holidays. They reached out to us with comments. They said:
“I want to say a big thank-you to the people that work for our provincial government who made this possible. It’s been a difficult time for artists running small businesses.
“This grant started making a difference when I was making the plan. Just to have a sense of direction is huge. It gave me hope. The funding and plan really add to my optimism and enthusiasm for opening up again and keeping my belief alive of hanging on to a business through difficult times. I have more energy every day, and this enthusiasm spreads to the community. I can sleep at night now, and that gives me more creative energy to make a plan that works.
“Thank you.”
This is actually a business in Prince George. VIP Mountain Holidays originally had their plan to entice more Canadians to visit Whistler, but with the travel restrictions, they were able to pivot and promote to a new audience in Vancouver and local tourism.
We had a business in Coquitlam that was grateful because they were able to use the money from their small and medium-sized recovery grant program and then leveraged the launch online program and used their contribution from the small and medium-sized recovery grant program to be their contribution for the launch online program, which allowed them to improve their website, hire an online marking team and do advertisement. They’re extremely grateful.
There are businesses in Vancouver that have been writing. We’ve got something on social media about a business that hires all Syrian employees and is helping refugees with employment, that talked about how the program was very easy for them to apply and how grateful they are for the funds.
We can go on at great lengths of all the businesses that have been writing. Again, over 10,000 businesses. I’ve already highlighted to the member that we hired some additional staff in March to help get the dollars out quicker.
Originally the program was targeted to support 15,000 businesses. We have 17,895 fully complete. The member is talking about changing the program, and what I’m telling the member is: we have. We’ve adjusted the programs and listened to the business community. That’s why we’re seeing the dollars we’re seeing, the amount of businesses we’re seeing that were applying. That’s why we’ve added additional dollars to the fund, from $300 million, originally, to up to $430 million — so we can support more businesses as we’ve gone through this pandemic.
Surely you can agree that having a target of 15,000 and seeing 17,895 come in already is a positive for British Columbia.
T. Stone: Well, 10,000 businesses that he keeps referencing is about 2 percent of the 530,000 small businesses in British Columbia. So there are a heck of a lot of businesses out there that are not getting the support.
Frankly, to respond to Bobbe Lyall, who owns Ohana Market up in Sun Peaks and is being left out in the cold because of an artificial eligibility requirement that requires her to be cash flow–positive in 2019 and in business for 18 months prior to the date of application…. It’s cold comfort and frankly, I would say, insensitive to skate past her concerns and simply start rattling off quotes from other businesses.
I know there are businesses out there that have been able to apply for and receive funding from each of these programs. So 40 percent of some of the programs and 50 percent of others in terms of total revenues out the door, so obviously, that would mean there are some businesses that have been successful.
My concern, and the frustration I’m trying to express here, is that there is still half of all of those dollars that has been not pushed out the door after many months, in several cases, of these programs existing. There are a lot of businesses that actually need the help that can’t get the help because of these artificial eligibility requirements that remain in place.
I would again ask the minister if he is willing to entertain a modification in the eligibility requirements related to businesses that either haven’t been in business for the full 18 months prior to the date of application or are businesses that, for whatever reason, were not cash flow–positive in 2019. Will the minister consider changing the eligibility requirements on those two fronts, which I would suggest would then result in a whole bunch of additional businesses being eligible for the support that they need? Will the minister do that to help these businesses out?
Hon. R. Kahlon: Again, the member has referred to some details about a specific business, and, of course, I’m not able to go into the specifics of that business and their particular application. Again, I do hope that the member had urged them in his discussions to apply for the circuit breaker, which probably would have been available for them. I think it’s important to highlight for the member, again, the other supports that we’ve put in place that do benefit businesses.
Of course, I’ve highlighted already that early on in the pandemic, in March, we had deferred property taxes, cut property taxes, deferred other pressures that businesses were facing. We put in rules to ensure that there weren’t commercial evictions happening. We forgave three months of Hydro bills. Of course, tax credits for hiring and rehiring employees and PST breaks for purchase of new equipment.
If it’s a business that has online sales, they can apply for launch online. If they serve liquor, of course, they benefit from the 25 percent reduction in liquor pricing. Of course, that’s made permanent. There’s a whole host of other supports.
At this point, hon. Chair, hopefully I can request a five-minute recess.
The Chair: You may request, and I will grant that request. Thank you, Minister.
The committee is in a five-minute recess.
The committee recessed from 3:25 p.m. to 3:36 p.m.
[N. Letnick in the chair.]
The Chair: Member for Kamloops–South Thompson, Kamloops Blazers.
T. Stone: I like that, Mr. Chair. Kamloops Blazers did win the division this year and last year.
I wanted to move on. There are a few groups that have really struggled for funding or haven’t been eligible for supports. The first one…. I’m hoping that this is a really simple, straightforward question for the minister, with a simple, straightforward answer back. It should be an easy one for him.
We’ve profiled in this chamber, in question period, the lack of eligibility for ANAVETS for receipt of the circuit breaker. Originally, the legions weren’t eligible either. We brought that issue into the House. We were really pleased for legions around the province that the government decided to make legions eligible for some support, about $1½ million I believe — really pleased that legions are going to get the support that they need.
If we can just reiterate, most legions in the province generate a significant amount of their revenue, which really is make-or-break in covering their operating costs, via the kitchens that they operate — the lounges, the bars, the social events that they’re able to put on. They operate, for all intents and purposes, as a lounge/restaurant, various days and hours depending on the legion and the province.
So when the circuit breaker was brought in, the legions were impacted as much as any other hospitality organization. Obviously, legions have been impacted throughout this pandemic. So it was the right thing to do. We were pleased to profile the issue on behalf of legions, and we were pleased to see that the legions were finally provided supports.
But we were shocked that ANAVETS, of which there are 18 locations — 18 ANAVETS units — across British Columbia, including in my hometown in Kamloops, but all over the province…. ANAVETS is also an organization comprised of veterans that looks and feels and operates very similarly to legions. ANAVETS, despite some assertions to the contrary from government over the last week or so, have written to the province.
Again, they were shocked — we were shocked — that when the government finally reversed its position on the legions and decided to make legions eligible for the circuit breaker, the ANAVETS weren’t included in that. It just makes no sense. Even if you just said that at a rate of $10,000 per ANAVETS unit…. I mean, we’re talking about 18 units, so $180,000 is the number. We’re not talking about millions here.
I’m hoping that the minister’s answer will be the right one here. The right thing to do is just to say: “We acknowledge that ANAVETS should be included. We are doing the work right now to make sure that that comes to pass.”
To the minister, are he and his government going to do good by the ANAVETS organizations, the 18 units in British Columbia, as soon as possible by making ANAVETS eligible to receive the circuit breaker or some comparable level of funding in recognition of the support that they need, the impacts that they have felt, the good work that they do and what they represent in communities across British Columbia?
Hon. R. Kahlon: Thanks to the member for the question. Of course, the Army, Navy and Air Force Vets in Canada play a very important role. We understand there are 18 units across B.C. We have received the letter from them regarding wanting additional supports. I have mentioned in question period, and I’ll say it again, that we are also in conversations with Veterans Affairs Canada. They could be doing, I think, more to support these organizations.
That being said, we’ve received the letter, and we’re working on that. We’ll have more to say as the staff continue to discuss with them about their needs. So more to report later.
T. Stone: Just as a matter of follow-up on that. We heard the same response the other day. I’m not sure why the minister — the Premier, I believe, said it too — would be in any way deferring to the federal government or Veterans Affairs on this.
The ANAVETS is very similar in look and feel and structure as the legions are. So if the government were able to put a package together or a program in place to support the legions…. I don’t understand why engagement and consultation with the federal government and Veterans Affairs Canada are needed.
Nonetheless, I’ll just ask the minister this. Can the ANAVETS organizations across British Columbia expect that they will receive support from this government?
Hon. R. Kahlon: As I’ve already said to the member, we’ve received the letter. We’re considering it, and we’ll get back to the member and, of course, them as quickly as possible.
T. Stone: Well, I don’t know why it’s so hard. Eighteen ANAVETS units across the province at $10,000 each would be $180,000. It’s not even a rounding error in most ministries.
The government provided supports, I would point out, after a fair bit of pressure from the legions themselves and from the official opposition. I would say let’s get on with it. Do good by the men and women who have served our country. Get them the support they need so that their ANAVETS organizations remain viable moving forward.
Speaking of…. Another group that is quite perplexed as to why they haven’t received support from this government, certainly not at the level commensurate with the pain that they have faced, is British Columbia’s live events industry. The minister would know well that there are all kinds of businesses in communities across this province that operate within the live events sector.
They provide a wide range of support services. Often it’s couched as audiovisual supports, and so forth, but it’s so much more than that, so much broader. These are the support companies that make concerts and graduation ceremonies possible. They’re the companies that make conventions and conferences possible. They’re the companies that, in many ways, make events like the PNE possible.
They are feeling left out and lost in the mix here in terms of a lack of support from the province. The refrain in the sector at the moment is: “We make a living by not being seen in putting all these events on. We aren’t seen. Today we’re not feeling heard. Our concerns don’t seem to be relevant to the government.”
For a little bit more context, I’ll read a few examples into the record. The first is Briere Production, Chris Briere. They’re based in Burnaby. He says…. Obviously, their sector has been shut down almost entirely. You have to think about that. There are few sectors…. Even restaurants weren’t shut down completely for the entire 14 months. The live events sector has been shut down.
Now, some have been able to pivot, which is a grossly overused term, frankly. They’ve been able to put on very modest online events and those kinds of things, which might account for 5 or 10 percent of what their normal revenue would be. For all intents and purposes, the sector has been shut down for the entire 14 months of the pandemic.
Briere Production — their losses have been mounting. They’re anywhere from $50,000 to $200,000 in the red every single month through this pandemic. They are going to end this pandemic with two to three times the amount of debt that they had before the pandemic. They’ve had to let go 200 contractors, and they’ve cut their full-time staffing complement in half.
They’ve watched as over 200 events that they had on their calendar for 2020 just didn’t happen. We all know why. The question isn’t: should the events have happened? We know that they couldn’t because of health restrictions, which were in place because of the pandemic. But there has been a significant lack of support from the government.
The insult to injury for these companies is that they were not eligible for the circuit breaker. You’ve got restaurants and pubs and others — fitness centres — that get the circuit breaker. Fair enough. They absolutely need it. The live events sector has been like…. It’s not like a circuit. You’ve shut down all the power coming into the building, right at the street level. The entire industry has gone dark.
Mike Miltimore, up in Kamloops — Lee’s Music — has seen their employee complement go from 30 down to six. Their revenue has declined 80 percent. They’ve had virtually…. Every single one of their events over the last 14 months had to be cancelled. They, again, are quite worried about what the future looks like because of the level of debt that they have.
You have to remember that these businesses are capital-intensive. There are significant investments that they have to make in equipment in order to be able to put live events on. That equipment doesn’t make money for the company sitting in a warehouse. Again, very frustrated at the lack of support commensurate with the pain and the shutdown that they’ve experienced.
When you look at John Donnelly of the MRG group, they’ve lost $30 million over the last year. Tim Lang of Proshow has had a $10 million revenue loss. He has a 75 percent revenue decrease, year over year. They’ve had to let go a significant number of their staff.
Literally just today I received a note from Isaac Kinakin of Scene Ideas. I’ll read part of it into the record. He says:
“We’re based in Richmond. We, basically, would work with concerts, music tours and festivals, corporate events, trade shows, exhibitions, experiential marketing and theatre. As you can imagine, we lost all of our business last year, starting in January. What was once a $5 million gross annual business with 30 employees went to zero — no revenue and no employees. Since then, we have struggled. We have incurred a lot of debt and made many pivots.
“I’m writing to you because I’m desperate, I’m tired, and I’m, frankly, at my breaking point. I’m fed up with the current government, their lack of compassion and their lack of understanding of what has happened to my industry, as well as their constant ambiguous information they’ve been giving us. Once again we have been denied funding, even though we supply restaurants and bars, and we’re affected by the circuit breaker shutdown. On top of that, we have been shut down since the beginning with no hope in sight until possibly September, while restaurants and bars have actually been able to stay open throughout this whole ordeal.”
A bit of anger there — frustration, obviously — and a tremendous amount of pain that companies in this space are facing.
I would suggest that if the province doesn’t step up and do good by this sector, something is going to happen that is going to shock and is going to surprise a lot of British Columbians this summer and into the fall. They’re going to expect that music in the park festival in their downtown park or that live concert that had been rescheduled or had been postponed several times or that convention that is always held in a particular community every year, save the last couple of years.
These events are not going to be there. They’re not going to be there because the support companies — the hard-working men and women that work in this industry, the live events sector — aren’t going to be there to be able to put these events on. How sad that would be, particularly coming out of the pandemic, as everybody gets their second vaccination, and we continue to hopefully see COVID numbers fall, as they are, and the future looks promising.
The sector needs help. So I’d like to ask, with that lengthy introduction…. Instead of asking five or six separate questions about specific companies, I thought I would put them all in one question there, just to set the context for the pain and the frustration that this sector is experiencing.
I would ask the minister if there is any work underway in the ministry to provide additional supports to this sector in recognition of the fact that they have been, essentially, closed for 14 months. As part of that, will he extend the eligibility of the circuit breaker or fashion a program that provides necessary supports for the live events sector? They desperately need the help, and they need it now.
Hon. R. Kahlon: I thank the member for the question. I, too, look forward to the time when we’re able to all be in a park and see live events and music. Who knows, I may even drop into his backyard to enjoy some of those events as we get more vaccinations. Certainly, something my family wants to do is to travel, hon. Chair, to your backyard, but we’ll stop in the beautiful city of Kamloops, I’m sure, on the way.
I appreciate his concerns that we certainly want to support as many businesses and as many of our sectors as we can. I know that the Parliamentary Secretary for Arts and Film, who comes from the music industry, has been a very passionate advocate for businesses in this sector. He’s been meeting with many of them along the way.
I think it’s important for the member to know that we’ve had 144 event-types of businesses apply for the small and medium-sized business recovery grant program to date. If there’s any business that hasn’t applied, I strongly recommend that they apply, as have others.
Then there are funds through Creative B.C. for live music. That is out there. Of course, they’ll have more details. I know that arts and culture had a resilience plan fund of $35.8 million that may also be helpful to them. Of course, Tourism, Arts and Culture has a lot of the funds that are targeting the live music industry in particular. Perhaps a question to the minister there, during estimates…. You might be able to get more details on some of those programs that they’ve launched.
T. Stone: Yes, I think it’s an important contribution to this discussion that a number of these companies are in various stages with the small and medium-sized business recovery grant program. A couple have been successful that I’m aware of. For example, Proshow, I believe, was successful with a $45,000 grant.
The point that I think needs to be made, however, is this is a company that has lost $10 million. A $45,000 grant from the province of British Columbia for a company that has lost $10 million is appreciated. It’s better than nothing. But it’s certainly not going to help that company bridge the gap.
I have listed off some of the levels of financial loss that these businesses have realized. The point is they need way more support to remain viable and to be standing after the pandemic is over than what they have been eligible to receive up to this point. They weren’t eligible for the launch online grant. They weren’t eligible for the circuit breaker grant, which, frankly, added insult to injury for an industry, a sector, that has been closed for the entire 14-month period.
Let me just, for the minister’s benefit, add a little bit more context here. Again, this business is very representative of many others in this sector. That’s the Briere Production Group. They wrote to me, and they said: “Here is a list of all of the programs that we have either been denied for or we never heard back from or we weren’t eligible for in the first place.”
They did get some wage and rent subsidies from the federal programs. That covered about 20 percent of their monthly fixed costs. Okay, great. You’ve got 80 percent of the monthly fixed costs still to worry about.
They were denied business interruption insurance. They were denied funding through the 2020 federal arts and culture COVID-19 relief fund. That was a $500 million fund, only $20 million of which, by the way, was set aside for the live events sector. The program received ten times the applications for the budget available.
Number four, they were denied direct funding support through Canadian Heritage. Then they found out on April 6, 2021, that the recent $181 million top-up of Canadian Heritage would not provide any funds. There would be no funds, as part of that, made available to the live events sector.
They were denied funding provincially for the launch online grant, denied funding for the B.C. circuit breaker relief grant.
This is a sector that is not receiving near the supports that they need to remain viable. They have suggested that one solution could be the creation of — call it whatever you want, but for the lack of a better phrase — a culture restart program that could be, actually, delivered by Creative B.C. Creative B.C. has the Amplify fund, at the moment — got a vehicle that’s already in place there. It wouldn’t require creating anything new.
What it requires is for the government to actually put some funds into this program so that the companies that support events, like the ones I have listed here today, are actually able to receive some meaningful support, again, that’s commensurate with the fact that they’ve been shut down for the entire pandemic.
Will the minister advise this House if he and his government are working on such a program? Again, it’s a program that would provide direct supports for the live events sector that is commensurate with the fact that this sector has been shut down for 14 months.
Hon. R. Kahlon: I think that the member highlighted well how challenging this is for folks in that sector. I mean, we have talked at great length how hard this pandemic has been on people and businesses and community groups and many members of this House. Everyone has been feeling the challenge.
Of course, the impacts are felt disproportionately — different for every sector and every person, depending on their circumstance. I appreciate how challenging it would be not to be able to…. Of course, there are concerns around the business, but also the people. They love this. This is their passion. This is their work, and not to be able to do it in a pandemic is very difficult. I fully acknowledge that.
I’ve had many conversations with the Parliamentary Secretary for Arts and Film. He comes from this sector, and he talks about the impacts — he has a loved one in the sector — and what that impact is in real terms. So I appreciate the member’s question and, of course, the concern that he has raised.
For the launch online program, he mentioned that they weren’t available to access that. We did change it for services to be able to apply. I’m not sure, if they’re doing $10 million a year, if launch online is something that they would need for their business. That’s more targeted to smaller businesses that don’t have the means to go online. But that program is available — I just wanted to correct that — for some of the smaller live events organizations or businesses. They can apply.
Of course, I will say that if any business hasn’t applied for the small and medium-sized business recovery grant program, they should. Like I’ve already mentioned, we’ve had 144 apply already, and certainly, anyone that hasn’t, should.
Lastly, I will just say that Creative B.C., obviously, is an organization that works closely with this sector. I’m sure they’re having conversations with the Ministry of Tourism, Arts and Culture. If the member has more detailed questions, I do suggest that he raise those in estimates with the Minister of Tourism, Arts and Culture. She’s very passionate about the sector as well.
T. Stone: Well, yes, I am aware that the minister’s colleague from Maple Ridge–Mission has had discussions with this group, as has the Minister of Citizens’ Services, who represents Maple Ridge–Pitt Meadows. I think it’s part of the frustration that this group is feeling.
Chris Briere says in his letter that to the end of April, they had had multiple meetings with the Department of Canadian Heritage, with Creative B.C., Zoom meetings with the two members of the Legislature that I just mentioned. Richard Davis and Randy from Canadian Heritage, I’ve already mentioned. They’ve written 60 letters. They’ve had all kinds of phone calls and whatnot. So this is not a lack of effort on the part of the live event sector to make sure that they’re seen, that their issues are understood and that government gets a sense of the pain that they’re feeling.
As I mentioned earlier, if you’ve lost $10 million this year, if you’ve lost $2 million this year, a $45,000 recovery grant isn’t going to go too far, particularly if you’ve lost all of that money and you haven’t been able to even have much certainty to plan for events for the short to mid-term. We don’t really know when a lot of these companies are going to be able to start putting on live events and concerts and the like. We have a four-phased restart plan, yes, but there’s no certainty as to where in that plan this sector is actually going to be able to begin to re-engage and start putting on events again.
And, as it’s been pointed out to me by all of these companies, they need a heck of a lot more than a few days or a few weeks of lead time so that they can actually bring staff back and so that they can actually pick their companies up off the mat, so to speak, and mobilize and get ready. Events, especially major events, can’t be put on in a matter of days or even weeks. There’s a lot of lead time required.
I guess I’m just trying to really impress upon the minister the importance of this sector — the pain that they’re feeling. The recovery grant is not enough. There are going to be far fewer live events in this province in the months ahead if the government doesn’t step up with a meaningful program of supports that provides direct aid to this sector.
The one final piece that I wanted to ask the minister about, because it reflects the other major concern of the live event sector, is one of talent retention and attraction. It’s obviously a massive challenge to be losing 200, 500, $1 million a month. That’s hitting these businesses in the here and now. But when they do get the green light to begin to hold events again, and they start trying to recall their employees, they are all seriously concerned about whether or not they’re actually going to be able to have a suite of employees to call back.
Mike Miltimore said in a recent letter to me: “We desperately need to hold on to our technicians, as it takes a long time to train these guys. You can’t just go to school to be an AV tech. We need support to keep these staff on.” Every single one of these companies has indicated that this is their next most challenging issue that they need some help with.
With that background, I’d like to know if the minister could provide any details on any work that’s underway to develop a talent retention and training program for the live event sector. Or perhaps it would be more broadly implemented across other sectors where this is really going to be a serious, serious business challenge for these businesses, which have already been hit so hard from a financial perspective as a result of being shut down for so long.
So is the minister putting together a talent retention and training program to provide that critical support to the live events sector?
Hon. R. Kahlon: Again, thanks to the member for the question. There are a few programs that we’ve designed that are available for the live events industry. First, we have the innovator skills initiative that is being run out of Innovate B.C., which is $15 million. That’s 3,000 spots. That provides up-to-$5,000 grants for on-the-job training for employers to bring new workers on the job to learn.
We’ve got an additional $2 million that’s Mitacs, which are, again, grants available. We can provide this to the member, if he wants, in writing.
[S. Chandra Herbert in the chair.]
We also have $7 million that we’ve given to the digital supercluster. That’s tech-related training and capacity-building. Of course, AEST has money for micro-credentialing and training, so there might be some opportunities there. But if the member likes, we can just put that in writing for him.
T. Stone: At this point, I’m going to turn the floor over to a number of opposition MLAs. I’m pleased to start that off with the Member for Saanich North and the Islands.
The Chair: Thank you, Member.
Recognizing the member for Saanich North and the Islands.
A. Olsen: Thank you, Mr. Chair. Good to see you today.
Good to see the minister as well.
Thank you to my colleague from Kamloops for giving me this opportunity to ask a few questions. Just wanting to ask a few questions around the Emerging Economy Task Force and, as well, the innovation commissioner.
Let’s start with the Emerging Economy Task Force. I’m just wondering if we could start with a pretty general question. If the minister could provide a response to where the government is at in implementing the report and if any action has been taken.
The Chair: Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Welcome back to the chair.
Thank you to the member for the question. I guess a couple of things. First, I really appreciated the report. I had a chance to read it very early. In fact, I read it when it first came out, but I go through it with a different lens now that a lot of the work falls within our ministry. A lot of the work we’re doing is inspired by the work that was done by that task force, a very accomplished group of individuals who put a lot of work into it.
The spirit of the report is very much alive in many of the things we’re doing, and it’s very much an active document. Obviously, it was done pre-pandemic. Some things have changed, but a lot of things remain. I’ve got a lot of details here. I can go through each one, if the member wants. I’m just looking for him to nod. He does. Okay.
There were 25 recommendations and 40 suggested actions that were made. There were five strategic priorities that were identified. So 26 of the suggested actions are things that are in my ministry alone that we’re working on. So I’ll go through each of them.
One of the recommendations was to strengthen the ecosystem for innovation, commercialization, scale-up companies. In our ministry, in JEDC, we have the venture acceleration program, which is being run through Innovate B.C. and which provides about $2.7 million annually, and the small business venture capital tax credit program. We have ongoing sector and cluster development work that’s being done by our ministry that aligns with some of the work that the B.C. digital technology supercluster initiative is working on.
We have been working to ensure the alignment and coordination of all the ITD branches, especially for some of these acronyms: the TIR team, the ISBs, who profile and aggressively market high potential areas to prospective investors. Working on digital infrastructure and super computers at SFU and UVic. Working on digital infrastructure.
As I’ve mentioned, we’re going through a review of intellectual property and policies. We’ll be hosting and anchoring forums with IP experts in the tech sector, academia, Innovate B.C. and government ministries to discuss approaches to keep made-in-B.C. intellectual property here in British Columbia.
Of course, the export navigator program plays an important role, which was highlighted in that recommendation. I won’t go into too much more detail, but I can happily provide the member, on recommendation 1, more details, if he likes.
Recommendation 2 was: “Foster technology adoption to generate economic, environmental and social benefits.” Of course, Innovate B.C. is mandated to support the growth of innovative technology in B.C. sectors through programming, funding, government support, policy development and other related initiatives. There was the innovation commissioner report which echoed many of the pieces, as well. We provided, through CivicInfo B.C., seed funding — invested $17 million in a new Quantum Algorithms Institute. Food Security Task Force report recommendation 2 is something that comes from emerging task force — the work that they had done.
The other recommendation was: “Enhance the financing options available in the emerging economy.” Of course, InBC obviously is a critical part of that. We are doing B.C. chamber engagement sessions to support the work of our ministry across government in annual engagements with the B.C. Chamber of Commerce and its members. We’re working closely with strategic partners to alleviate awareness of the capital needs and potential matching that can be done through institutional investors and other sources of capital.
Number 4. We had to become a leader in smart regulation. So JEDC has developed a policy framework and tools, like the Policy Approaches Playbook, to support ministries and identify opportunities for regulatory innovation. Small Business Task Force report recommendations 2 and 3 also maintain the province’s commitment to avoiding excessive regulations for small businesses. And of course, Food Security Task Force also had recommendations on that.
Recommendation 6 was: “Capitalize on B.C.’s vertically integrated, clean power advantage.” Of course, you’ll see a lot of that in CleanBC and in phase 2 of B.C. Hydro’s review.
Number 7 was: “Take advantage of growing global demand for green economy products and services.” You’ll see some of that work in the low-carbon industrial strategy, the ICE fund supports for clean tech and some advanced manufacturing. We have the industrial cluster strategy — Surrey innovation corridor, mech tech alley; Foresight Cleantech cluster initiatives; work we’re doing with FPInnovations. Innovate B.C. has a program, of course, that I’ve highlighted already, the venture acceleration program. The Ignite program. Clean tech scale-up pilot.
Of course, we have the provincial nominee program tech pilot, which now we’ve made permanent. We announced that just within the last two weeks. Green building training. International trade and marketing strategy. I can go on at great lengths, but I’ll make sure that the member gets this, maybe, in writing. I see him smiling on the screen.
I’ve got four or five pages, so I think it might be more, either…. I can get the member a more detailed briefing on this, instead of going through all the four pages. But I’ll just say, in respect to his question, that it was an important report. Both that and the previous innovation commissioner’s report I found quite useful. A lot of those principles are guiding the work that we’re doing now and certainly will guide the work as we go forward.
A. Olsen: I appreciate the exhaustive answer. We almost used the full 15 minutes that was available to the minister. It’s good to hear that that work is being implemented across government. Clearly, it is across ministries that this innovation is going to take place.
I’m wondering about the role of the current innovation commissioner and, sort of, the accountability aspects of it. Perhaps the minister could highlight — and we can ask this question in estimates — whether or not there are going to be any reports that are done to consolidate the work as progress is done against that report. Or are these just going to be recommendations that are going to be implemented over time and that we don’t really have a consolidation of the work and tracking to completion?
Hon. R. Kahlon: I thank the member for letting me share that information, too, in writing, because I was only on No. 6 of 40. We don’t have enough time today for me to get through all of that.
But to the member’s point. Off the top, I want to thank Alan Winter for the excellent work he did in that report that he put in. If you look through the recommendations that he had made — support innovation clusters, capitalize on the strength of CleanBC, help entrepreneurs protect IP, retain talent and help businesses scale up — those are core elements that are reflected in my mandate letter. His work carries on as something that’s integral to the work we’re doing as we go forward and focus on economic recovery.
I also want to say that the new innovation commissioner has been fantastic. I really value the experience and insight that she brings to the role. She meets with our team weekly to discuss what’s happening, what she’s hearing. She’s going to be an integral part of the work as we go forward. I really appreciate the amount of experience that she brings to the table.
So the member’s question was around the reports and how we’re going to integrate them into the work we’re doing. They align very well with not only the work that my ministry is doing but many of my colleagues’. A lot of those elements are being built into the work that we do going forward. The economic recovery framework that we hope to launch later in the fall will have key elements of that.
A. Olsen: Thank you, Minister. I appreciate the response. I appreciate the engagement that you’ve highlighted between your ministry, yourself, as the minister of your ministry, and Gerri Sinclair. It’s going to be a good relationship going forward.
I’m just wondering with respect to the reports: is there going to be — and like I said, other than coming to budget estimates, to the variety of ministries that are all going to have a responsibility in innovating — any consolidation of the specific actions that come out?
Maybe I’ll just add to that. Can we expect to have any further reports that are going to be coming forward from the new innovation commissioner that we can then also use as kind of like benchmarks for us to be able to ask questions of you, the minister, and the ministry, as we progress through time?
The Chair: Through the Chair, of course.
A. Olsen: Through the Chair, of course. I’m sorry.
The Chair: Quite all right, thank you. Keeps me busy.
Hon. R. Kahlon: There are a couple of things. I think that the report done by the Emerging Task Force and the innovation commissioner are very much alive. I think the member would agree that we might not need a new report given that many of the elements that have been recommended are very valid still in the work we’re doing.
The current innovation commissioner may not put a report together in the same way but is working actively with us, as I said, meeting weekly with our team as we go forward. Again, I’m happy to even meet with the member, or even happy, if he would like, for the team to provide a bit of a briefing for the member.
But my expectation isn’t that she’ll necessarily write a new report, because we have two reports that are excellent that I think have elements that are critically important for us still, given even as we come out of the pandemic.
So those elements will be there, of course. The new innovation commissioner has some new ideas and brings lots of energy to the work. We’ll be incorporating both that previous work and some of the ideas that she has now on our economic recovery framework that we’re working on, or the plan we’re working on for the fall.
A. Olsen: Thank you to the minister. Absolutely, I recognize that the landscape has changed since we have those reports and certainly appreciate perhaps even a different relationship from the previous ministry as it was constructed. Now things have changed for sure. Appreciate that.
I think we’d look forward, at some point in the coming weeks or months, to have a more fulsome briefing. I think that that would be of value to our caucuses. This was an important — as the minister knows — aspect of the confidence and supply agreement, so it’s good to just keep track of those legacy bits of work.
Just a final question around…. It’s a very similar question that I asked around the innovation commissioner, and perhaps the minister did…. The Emerging Economy Task Force was another body of work that was done throughout the last parliament. Just wondering if the minister could also provide just a high-level report to the people through budget estimates here on the Emerging Economy Task Force, the implementation of the report that they provided and maybe how that dovetails with the work that is being done with the innovation commissioner.
Of course, it’s not the same body of work. It’s complementary, so just perhaps a few comments. Then I’ll be done for the day. I thank the minister for his responses.
Hon. R. Kahlon: The focus right now is to implement the findings in the report that will add to people’s standard of living and help the economy rebound from the impacts of the pandemic. We’re prioritizing the recommendations that will have immediate impact and align with the work of the Premier’s Economic Recovery Task Force and the innovation commissioner’s report.
Longer term we want to ensure that B.C. keeps its strong economic position, reducing the impacts global trends could have, taking advantage of opportunity in all sectors. The member will know that we have historic funding for connectivity, which was in the budget. That was an element of the work of the emerging task force.
Again, I’m happy, in the coming weeks and months, as the member would like, to set up a more thorough discussion about it. I do have eight pages of things that we’re doing that are related directly to the emerging task force, but I don’t want to put that member through that, unless he’s yelling: “More.” I can’t tell from the screen. I’m happy to provide more information offline if the member likes.
T. Stone: Before I turn it over to a series of colleagues from the official opposition, following on the interesting discussion between the member for Saanich North and the Islands and the minister, I just was wondering. The commitment that the minister made to the member for Saanich North and the Islands with respect to providing a written update on the status of implementation of recommendations, both the innovation commissioner’s report recommendations as well as the emerging task force recommendations….
I’m just wondering if the minister would be willing to provide a similar copy of that information to me so that I have the same information at my fingertips as well.
Hon. R. Kahlon: Yes, of course. We will do that.
T. Stone: Thank you to the minister.
Next up is the illustrious member for Peace River North.
The Chair: He was so keen. He jumped up right away.
Member for Peace River North.
D. Davies: Thank you, hon. Chair. Yes, very excited about estimates.
Again, thank you to my colleague from Kamloops North….
Interjection.
D. Davies: Kamloops–South Thompson. I apologize. I’ll give him one free Peace River South just in case.
A couple questions here. Again, I do appreciate my colleague for allowing me the opportunity to ask these questions on behalf of a few constituents and businesses up in the north. I wrote the minister about a month ago regarding a couple of businesses — Boston Pizza in Fort St. John and Fort Nelson. Of course, Trevor McNiven was the one individual. He’s co-owner of Boston Pizza.
I bring this issue forward. The minister did pen a reply, stating that the individual businesses did not qualify for the grants because they were co-ownership — I think it was 50 percent or more being in Alberta. This is a very common thing along our border communities — Dawson Creek, Fort St. John, straight down in through the Kootenays — where there’s a lot of commerce, there’s a lot of movement and travel between the two provinces.
This individual, Trevor…. I know that he lives in Fort St. John. He runs the Boston Pizza in Fort St. John — as well as the gentleman up in Fort Nelson, very similarly. He had to lay off almost 60 people during the circuit breaker. That’s 60 British Columbians that he had to lay off — people that pay taxes into British Columbia — and Trevor, who pays taxes into British Columbia.
My colleague from Kamloops–South Thompson brought up earlier that about 50 percent of the money has gone out the door, and a lot of that is around the barriers around getting this money out. This is, I believe, one such barrier. I’m hoping the minister could possibly elaborate a little more if there has been some reconsideration to look at some of these businesses, again, that do business in British Columbia.
Just because they have one part-owner that might live in another jurisdiction outside of British Columbia, they do not qualify for this funding. I’m hoping the minister can go a little bit beyond his reply and hopefully offer some hope to these many business owners in British Columbia.
Hon. R. Kahlon: I appreciate the question from the member for Peace River North. Just kidding, just kidding. Peace River South. I appreciate his question.
Interjection.
Hon. R. Kahlon: Is it north? Oh man, I stepped into it now.
Interjection.
Hon. R. Kahlon: I’ve been heckled. I’m the MLA for Delta South now. I deserve that one.
I just wanted to share with the member that 28 businesses in his riding have received the small and medium-sized business recovery grant. It’s $655,000 that has directly gone into the pockets of businesses in his community. I thought that he would appreciate that number. It’s keeping people employed.
Of course, the member is aware that businesses that don’t have majority-owned shares in a business are ineligible to apply for the small and medium-sized recovery grant program. The rules don’t specify that it has to be 100 percent. It just says that it has to be a majority. Of course, I know that he reached out to us. I believe we’ve written back, and staff have communicated with him on that matter.
D. Davies: The $655,000 to the 28 businesses — obviously, it’s appreciated by those businesses, without a doubt. But my question isn’t about those businesses. It’s about the businesses that don’t fit in that…. I’ll use the term. There’s been a line drawn in the sand that makes many businesses that employ — well, if we use the provincewide — thousands of British Columbians who pay taxes in this province. These are the people that are impacted. To penalize these businesses because they may have a partnership that is outside the jurisdiction only penalizes the province of British Columbia. It penalizes the economy.
This is where I’m just amazed. My colleague brought this out earlier, and I mentioned it at the start of my first question. The small business grants — 49.8 percent of the $430 million is out the door in eight months. There is light at the end of the tunnel. The pandemic is winding down. These businesses still need the support. They still need that help if they’re going to be around when we’re done this pandemic. The circuit breaker grant — 40 percent out the door. So when we have this criteria, it doesn’t make sense.
I’ll give you another example. I had the owner of the local KFC reach out to me. He just moved to the city of Grande Prairie before COVID, and he is ineligible. His entire business is here in British Columbia, pays taxes in British Columbia. His employees pay income tax in British Columbia. But because he happened to make the untimely decision to move to a community in Alberta just before COVID, he’s now ineligible.
Again, is there hope on the way for these many businesses, not only the ones in my riding but across the province of British Columbia, that have these circumstances? We have the money. We see that. There’s $215 million left. Let’s get it where it needs to go, supporting these businesses, and fix what I consider a simple problem that needs to be fixed.
Hon. R. Kahlon: At this time, the rationale requiring at least 50 percent…. That the businesses be owned by a B.C. resident is to ensure that taxpayer investments are supporting locally owned and operated B.C. businesses.
That being said, the member will know, and most businesses will know, that there are tax credits available for hiring and rehiring employees. There are PST rebates available for any equipment that they may want to purchase. Of course, they will know that we’ve capped the food delivery fees for them, which were becoming a bit of a challenge. And of course, the 25 percent reduction in liquor price that’s now permanent is a call that they’ve been making for a long time. It’s not temporary; it’s made permanent. So a whole host of supports, not to mention the federal government supports.
Just one quick note for the member from Kamloops, because we had a good exchange around live events. I just wanted to give him an update that 50 live event companies have actually registered for the digital marketing bootcamp as well, so we’re seeing the live event sector apply and take part in that program as well.
D. Davies: I appreciate the PST rebate on equipment — food delivery fees. It does no good if they’re not in business. Right now they can’t afford to be purchasing equipment. They’re barely able to pay for the absolute bare necessities. These companies…. Again, I’m talking of these businesses, very specific, that fall into this arbitrary line in the sand that has been drawn that excludes these businesses from applying for these grants.
These businesses, make no mistake, pay into the British Columbia economy. It’s not like this grant money is going to be paid to the business and be shipped off. It is going to be keeping these small businesses in business so that they can employ people — again, almost 60 people with the one restaurant. Unfortunately, this company didn’t have a patio and really struggled during the circuit breaker.
So while those lines that the minister has stated about some things that have been done…. They are beneficial in some ways. But the point that I’m trying to make is these companies need the support of the grant to get them through, to make sure that we have these businesses in our communities in the coming months so that they can continue to employ people and keep our local economies moving.
Again, can the minister provide…? The minister can do this. He’s got $215 million yet to go out the door. We are at the “light at the end of the tunnel” part of the pandemic. Can we hear today that there is some hope, when I direct people to this Hansard broadcast? Can we have some hope for these businesses that fall into this weird middle that makes them exempt? Can the minister give us…? Again, my question: can the minister give some hope for these businesses?
Hon. R. Kahlon: Again, thank you to the member for the question. I think there’s hope for all British Columbians right now. I think there’s hope for all businesses, as they see the restart plan. They’ve seen the metrics that we’re using in decision-making, giving them some certainty on how they can open up progressively over time. We’ve seen the businesses be able to return to having six people at a table indoors.
The member mentioned the KFC. I’m not sure if it has a drive-through, but we’re told by industry leaders that the drive-throughs are making record dollars, given that many people aren’t able to go inside, but they’re still wanting to get food. I’m not sure about the KFC, particularly, in his community, but we’ve been told by the associations that, overall, they’re seeing record profits.
Of course, I’ve highlighted some of the programs that are available to the business that the member spoke of: the 25 percent liquor pricing, which will help their bottom line considerably with every sale they make; the tax credits — the PST rebate on equipment; capping of food deliveries. I’m sure that they’re still seeing lots of orders coming through online, considering that people are ordering more and more at home during this pandemic.
The wage subsidy program that the federal government rolled out, which has now been extended till the end of September, has made a significant impact. Rental supports are available for businesses. Commercial tax relief. There’s a whole host of measures — the highest supports for people and businesses per capita in Canada.
So I appreciate the member’s questions and his advocacy, but the funds’ intentions were to support B.C.-owned businesses. But all the other measures, the whole host of measures…. In fact, there are a lot of federal ones, as well, that I can go through in detail, if the member likes, that he can share with the business in his community that’s impacted.
D. Davies: I’m disappointed in the minister’s reply. I know that there are many businesses in this province that are also going to be quite disappointed — that, again, fall into this arbitrary rule that penalizes businesses that employ British Columbians, that won’t qualify for this support. And while I do agree that, again, things are looking better, there are many businesses that still today don’t feel they’re going to be able to hold on.
My next question, moving on. I think one thing that has become very clear over this past 18 months is supply chain issues. We’ve seen that across the country, and we’re still feeling the effects of it today. I don’t know if you’ve tried ordering anything in stores. It’s backlogged indefinitely — many, many different items.
Is the minister…? This is again with a northern perspective. Of course, northern B.C. is different than Vancouver or Victoria. Are there any incentives that are being looked at to support manufacturing — support this angle of operations — in our northern and more rural communities across the province of British Columbia?
[N. Letnick in the chair.]
Hon. R. Kahlon: Thank you to the member for the thoughtful question. I know that, in his region in particular, supply chain resiliency is a big challenge. I know Mayor Ackerman has been raising this issue as well. I appreciate him raising it. Just for those that don’t know, this sector is 172,000 good-paying jobs and 7 percent of the provincial gross domestic product. It’s $17 billion in contribution to our GDP, so it’s significant.
There are three programs. One is the $10 million accelerating manufacturing scaleup grant program. We had a $6 million supply chain resiliency grant program. We’re also funding strategic supply chain analysis research that was requested as well.
The one fund that I’ll highlight for the member…. There are some projects that we just recently funded. The Nisg̱a’a society and Prince Rupert Chamber of Commerce, $167,000 for developing a food distribution network in northwestern B.C. We’ve supported the Interior Lumber Association to develop a computer model that will help identify value extraction opportunities and improve allocation of available logs to various manufacturing facilities. We have recently provided $200,000 to Nature’s Formulae Health Products. That’s the Thompson-Okanagan. There’s funding for organizations in the Kootenays, etc.
We do have a program right now called the accelerating manufacturing scaleup grant program. The intake, I believe, just closed for that. We have gone to PricewaterhouseCoopers to administer the program. Of course, applicants are eligible for a one-time, 75 percent funded provincial grant of a maximum up to $250,000 for an individual business and half a million dollars for group collaboration projects. Certainly, it’s important work that we’re going to have to continue doing as we go forward.
J. Tegart: It’s a pleasure to be here. Thank you to my colleague for allowing me some time to ask some questions in regard to businesses, in particular through the Fraser Canyon.
As you can imagine, it is particularly challenging to run a successful business in the Fraser Canyon at any time because of traffic counts, because of traffic flow and because we are demographically very challenged. I’m going to talk about three businesses that have run successfully throughout the downturn of the Fraser Canyon.
What happened when the Premier announced new travel restrictions with the goal of reducing the impacts of COVID is that people took him at his word, particularly these three businesses — a campground and two resorts, one in Hope and two in the Boston Bar area.
When the Premier announced on the Monday that they’d be combining health regions, that Metro and Fraser Health would be combined, and Interior and Northern Health would be combined, these businesses took a look at their reservations for the next three weeks. Being good citizens of British Columbia, they went through their reservations and cancelled all of their reservations from the Interior Health region because they were outside their health region.
Imagine their surprise on the Friday when the minister announced that Hope had been taken out of Fraser Health. It was now in Interior Health — no rhyme, no reason. Every reservation they had was from the Metro area. They lost all of their reservations for the next three weeks. And an announcement that was going to affect them until May 25, on May 25 was extended.
I want to talk particularly about the Blue Lake Resort. I’ve got an e-mail from him saying:
“So nice for us to have a representative in Victoria who understands our challenges. She really went to bat for us. Not sure if the NDP stands for anything, but I do know they stand for everything. Trees: save them. Trees: cut them. Watching the NDP govern is like laying in a crib with a baby mobile twisting and turning over our heads: sometimes something drifting by to look at but nothing we can get our hands on.
“Thank you to Jackie for your help. We did get a $10,000 grant for the eight weeks and counting that the travel shutdown cut us off. We have taken over $45,000 in cancellations to date, and many have cancelled for the weeks in June and July due to the uncertainty. The grant doesn’t hurt, but it did not mean that we could hire back our staff.”
Now, this is a business in and close to Boston Bar. For anyone who has driven through the canyon, Boston Bar is a pretty small community, and there aren’t a lot of employment opportunities. So this business was severely affected, and they were very thankful for the $10,000 grant. But my question to the minister is: was there any modelling done on the impact of changing Hope and Boston Bar out of the Fraser Health region and into the Interior Health region and the impact on businesses?
Hon. R. Kahlon: Thank you to the member for the question.
I think we can agree that safety is critical — paramount right now during the pandemic. I think no one wants to put any measures in place that will impact people and communities, but we’re in a pandemic, and decisions are being made to keep people safe. I know the member appreciates that.
I guess, thank you for sharing the email. The email said a lot of nice things about her, so it’s great that she was able to get that on the record. It’s great to see that the circuit breaker was available to them if they qualified for the circuit breaker. I suspect that they should apply for the small and medium-sized business grant as well.
I’ll just say that the restart plan as it’s laid out has, at the minimum, June 15 — which is coming up very soon — as the time for people to be able to travel. Certainly, the feedback that I’ve got from people is that they cannot wait to get out of town to travel to different parts of the province.
All the trend lines continue to go in the right direction. We have surpassed the metric of people we wanted to see vaccinated. Case counts continue to go down. All the positive indications are there. I suspect that businesses are already starting to book travellers for soon after the projected date, as has been laid out in the restart plan.
J. Tegart: Certainly not the purpose of the reading out of the email, except to express the frustration that many businesses are feeling in their applications for different grants and different funding opportunities.
The second business I want to talk about is REO resort. I know that we’ve been working with the minister’s office on this one. They applied in January and were finally contacted April 30 that their application was denied. Then, the newly announced travel restrictions, which showed them clearly in the Fraser Health region, cut off all of their business, because they were now in the Interior Health region.
When we tried to find out why the change was made, it was very, very difficult to get a straight answer on why the health regions were changed — why Hope and Boston Bar were taken out of Fraser Health. Because it’s only for this period of time, and I can tell you, it’s had a significant effect.
REO resort has been operating for 39 years. They put in their application and were rejected because they didn’t show a profit in 2019. They sent quite a long letter to the minister, I do believe, and to many others, talking about what they think should be criteria to be considered for the grants.
They talked about the long-term viability and history of the business. Not just one year — take a look at how long the business has been there. The importance of the business to the region for job creation. The importance of the business as a travel generator to the area from B.C. and beyond. Also, the significance of the business on a global level as a tourism motivator for international destination travel to B.C.
They have contacted my office. The minister’s office has been in touch with them and is working with them to look at whether there is some way that they can actually qualify for any kind of grant — the circuit breaker, the small business grant and whatever that looks like.
They’ve also offered some ideas based on their experience as a small business operator for the minister to take a look at, as we look at half the money not even out yet. Maybe there are some criteria that could be looked at so that more businesses qualify.
REO is, again, a very important employer in the Boston Bar area. They have a chef. They have a very internationally known yoga instructor. They do glamping. They are a five-star resort that many people don’t know about in Boston Bar.
So what I’m asking the minister is: when you review the applications that have been rejected, are there common threads? And are you giving consideration, for the next reiteration of funding opportunities, to other criteria?
Hon. R. Kahlon: Yeah, we canvassed this with the hon. member from Kamloops earlier — that sometimes government has programs where it’s just, you know, you’re approved or you’re rejected, and that’s the notice you get. With this program, what we’ve been doing is that we’ve actually been working back and forth with businesses.
If a business doesn’t quite qualify, we’ve been trying to find creative ways to work with them to ensure that they can qualify. So there has been a lot of flexibility built into the way that that program is being done.
Again, a big thank-you to the staff who have been working so hard to not only support the businesses to get the funding but also to hear about the challenges they’re facing. I really appreciate the member bringing this business forward to us and writing to us. I understand that they had a really good meeting with our staff and that their application is proceeding into the system. I’m very hopeful that they’ll see a positive result.
There is also a digital bootcamp that’s available for many of the tourism-related businesses. We’ve seen a considerable uptake from businesses that are in that tourism space to learn about how to be online. Of course, money is available for launch online to set up that online e-commerce and the website so they can attract business. Those programs may be available for this business as well. Our office can share that with your office if you need.
Then as far as the future — certainly, I think, the member would agree — I hope we never have to create these kinds of programs in a pandemic ever again. Certainly, there have been learnings. We’ve been adjusting the programs as we go, and lots of learnings for the future.
The Chair: Just a reminder to both the minister and the member: through the Chair, please.
J. Tegart: Yes, Mr. Chair, through you to the minister. Well, the minister talks about hope and that we have a lot of hope for the future. I can tell you the businesses that I’m talking to in the Fraser Canyon just hope that you put Hope back in Fraser Health. I trust that the minister will commit to advocating for that, because there seems to be no rhyme nor reason as to why Hope was taken out.
Hon. R. Kahlon: I know that there are estimates happening on Health, so the member may want to raise that question. I thought I’d share with the member that 49 businesses in her community have received the small and medium-sized business recovery grant program, which is just over $1.1 million. I know that’s significant for businesses and for keeping people employed in the community. Thanks for the questions — through you, of course, hon. Chair.
The Chair: Sorry I brought it up.
T. Shypitka: Thanks to the minister for some time here today. It has been a bit of a good theme that I’ve seen from my colleagues here over about the last hour or so. That’s identifying, perhaps, some of the cracks in the system, some of the businesses that have fallen into these cracks. The member for Peace River North mentioned some cracks for business owners that live in a different jurisdiction yet can’t apply for some of these grants.
I wanted to talk to one that is probably the worst of the worst. We know that tourism is arguably the hardest-hit sector in our economy during this pandemic. We’ve heard the member for Kamloops–South Thompson advocate for live events. However, the guide-outfitters, in my opinion, perhaps are, within the subclass, essentially the hardest hit, as I’ve said, of all the hardest hit. Instead of me describing to the minister what these guide-outfitters are going through right now, maybe what I would like to instead is ask the minister what he knows about guide-outfitters and how they’re being impacted by this pandemic.
Hon. R. Kahlon: Thanks to the member for the question. Perhaps the member wasn’t here when we talked about live events, but I was able to share with the critic that many in the live events space have received small and medium-sized business recovery grants. Many have applied for the launch online program. So dollars were available, but the member perhaps wasn’t here on that portion of that.
I think that when we talk about disproportionate impacts, the member and I will agree that guide-outfitters have been disproportionately impacted. They rely heavily on international tourists, and it’s been a really challenging time.
I can share with the member that we have seen applications come, for the small and medium-sized recovery grant program, from guide-outfitters — I believe 31. Staff met with the guide-outfitters to encourage them to get all their members to apply. It’s important to note that they get the tourism top-up for part of their business. It’s up to $45,000.
So I would encourage the member, if he has guide-outfitters, to encourage them to apply. Again, our staff have been available to meet with the guide-outfitters. If the member likes more information about how they can apply, we certainly can share that with him.
T. Shypitka: Absolutely. I was here when the member for Kamloops–South Thompson was talking about live events and funding through Creative B.C. Obviously, those funds aren’t available to guide-outfitters.
The launch online program is something, I guess, that these guide-outfitters could take advantage of. But the truth of the matter is that they’ve got their deposits. They’ve got their reservations already. They don’t need the launch online program to do that for them. The problem is that they’ve taken deposits. Well over 90 percent of the clientele that guide-outfitters attract are from outside of Canada, predominantly from the United States. So apart from the small and medium business recovery grant, that is all that these guide-outfitters have had to really had to look forward to.
When you talk about the ongoing operating costs that these folks go through…. They still have their licensing fees, their tenure fees. Taxes on their tenure, such as school tax. They pay land tax. They also pay taxes on buildings — cabins and outbuildings and such like that. That’s not to mention the enormous amount of money they pay to secure their territory. When they first buy their territories, those are in the millions of dollars. So they’ve got loans outstanding.
Like I said, one of the guides in my area is paying $25,000 a month in operating costs just to keep them going. He’s trying to keep his employees, because with the inevitable reopen…. We just don’t know when it is, so there’s really no certainty there. These folks are basically, like I said, on their second season here. The small and medium business grant, I believe, is ending July 1, just when the fishing guides are going to be going through their second season.
I don’t have a lot of time, so I’ll just ask one more question. These guides really need a lot of help. They need the minister to maybe see through some of these cracks that have been opened through these programs. Not condemning the minister on that. I mean, inevitably, there’s always somebody that’ll fall through the cracks. The guide-outfitters are that one sector, that one subclass, that has really found their way to the bottom of the hole here, and they really need to have a proactive view on how we can save these businesses. I’m just being straight up. They are on their last straw here.
I guess the last question to the minister is: is the minister interested at all in extending the B.C. small and medium business grant to those guide-outfitters? It’s a little bit. Some of these businesses are well over $2 million in revenue, but they’ve got enormous costs to go along with them.
These small-business recovery grants only amount to maybe, at the maximum, $45,000, which is good, but in my last example, that would only keep a business afloat for a couple of months. It’s appreciated, but with what’s left in the kitty in the small and medium business recovery grant, there is certainly enough to identify this subclass of the sector that is really getting hit hard the most.
So question to the minister: would he be interested in extending the business recovery grant to those guide-outfitters and fishing guides that are in desperate need?
Hon. R. Kahlon: Again, I just want to stress to the member that the small and medium-sized business recovery grant program is available to guide-outfitters. As I highlighted, 31 of the, I believe, 245 guide-outfitters have applied. I would strongly encourage the member to encourage any of the guide-outfitters that he’s been speaking to, to apply before July 2.
The member also mentioned other fees and overhead costs that are being incurred. The member may be aware that we forgave the land and park act rent for last year. I certainly hear his advocacy, and I will take his advocacy to my colleague the Minister of Forests, Lands and Natural Resource Operations.
I thought I’d also share with the member that $2.15 million in small and medium-sized grant programs have gone directly to businesses in his community. That’s a substantial number compared to some of the other communities. Businesses are actively applying in his community, and I want to thank him for helping spread the word to businesses to apply in his community. Clearly, something he’s doing over there is working. So thank you.
R. Merrifield: Well, I’ve been listening to as much as I possibly could of these riveting estimates. I have heard a ton of agreement on how this pandemic has not affected all businesses equally. It hasn’t affected all people equally. That’s something that the minister as well as my colleague from Kamloops would agree on.
This pandemic has chosen winners and losers — and somewhat disproportionately. There are many in my riding of Kelowna-Mission that have been significantly impacted negatively by this pandemic. While I appreciate that there are some programs that have been created, there seems to be less attention given to how that actually furthers the dynamic of the winners and the losers.
Obviously, my riding has an incredible amount of wineries, and the wine industry is part of the tourism industry that is vital to Kelowna. Now, while many people increase their alcohol intake during the pandemic, the wineries could adjust. Their businesses could take and send directly to customers, but others associated with this industry could not adjust in the same manner.
Wine tour companies are one of these industries. Even the largest in my riding, like Cheers Okanagan or Beach Bum Tours, watched as their buses and cars sat idle while their employees were laid off or left. Devastated doesn’t begin to describe what’s happened to these businesses, yet there were no programs that they actually fit into.
I’ll quote Lou from Cheers Okanagan Tours.
“Greetings, Renee.
“I’m writing to ask if you can help us get the funding needed for our business to stay in business. We’ve received, from many sources, the tourism grant link that the hon. John Horgan talked about recently. I was elated, as we are the largest tour company in the Okanagan, and eagerly dove into looking at the qualifications. ‘Additionally, tour bus companies are an important link to bring travellers to regional destinations, attractions and experiences’ in B.C.
“Yes, we were in business in 2019. Yes, we had seven vehicles busy every possible day for 12 months. I added up the number of passengers we had, and it totalled 15,300.
“The qualifier is 30,000 passengers to receive up to $500,000. My heart sunk for us and for all the tour companies. Anyone smaller than our fleet, which is now nine, will be counting on a busy summer and, when that is over, will barely make it to 2022, having had to pay all the debts incurred over these 1½ years of on-off lockdowns and 90 percent less revenue.
“It appears this is for tour bus companies but not all tour bus companies, especially those that are ambassadors for the wine experience and attractions in the Okanagan.”
She goes on.
Devastated doesn’t begin to describe what is happening to these businesses, yet there are no programs that these businesses actually fit into. How will the minister adjust the programs to meet the needs of all businesses that were hit hard in this pandemic, including the tour operators in my riding?
Hon. R. Kahlon: Maybe a point of clarification for me on the question. I understand that tour operators in her riding have been funded through the small and medium-sized recovery grant program. I’m not sure what particular program the member is talking about. Maybe if she provides some clarity on that, I can get more information for her.
R. Merrifield: This was the tourism grant that was for tour companies. The small and medium-sized business one is…. I mean, the amount of it is very small in comparison with the total that this particular company would need.
Let’s just put that into perspective. If they have nine vehicles leased, that’s going to be $9,000 per month that they would be requiring plus, then, the insurance on a tour company. So it’s much greater than what the small and medium-sized business grant loan would be accommodating. So again, not fitting into the tourism grant, not fitting into the small and medium-sized business.
Hon. R. Kahlon: Again, just to clarify. The member just confirmed that they actually did qualify for the small and medium-sized recovery grant program that is funded by our ministry. So I’m not entirely sure what the question is.
R. Merrifield: I’ll move on to the next part of this question. The small and medium-sized business grant is still too small. It doesn’t actually accommodate businesses that are of this size. Yet the ones that are accommodating the larger attractions are, again, missing the middle.
There are funds available in the small and medium-sized grant, the circuit breaker as well as the launch online. In fact, we haven’t even gotten to 50 percent of any one of those programs that have been released.
My question to the minister is this: if there is still money available, why wouldn’t the minister actually expand the programs to accommodate for tour operator companies such as this one?
Hon. R. Kahlon: Well, the member just confirmed that the business, in fact, did receive the small and medium-sized recovery grant program.
R. Merrifield: Actually, I did not confirm that. What I said was that this particular company, as well as many other companies — I simply used them as an example — were not able to be accommodated by such a small amount of money that happens to be within the small and medium-sized grant program. Nor do they qualify for the very large sums of money that are in the tourism grant program.
My question to the minister will end with this. The government is still choosing between winners and losers. Will the minister adjust the program and accommodate these businesses that are not being accommodated at this time?
The Chair: Minister, and noting the hour.
Hon. R. Kahlon: Again, I’m not entirely sure about the question. The types of businesses that the member was asking about are eligible for the small and medium-sized recovery grant program. If there is a business in the member’s riding that is a business like she’s described and she would like to get more advice on the small and medium-sized recovery grant program, we certainly can help with that.
We’ve canvassed a lot of different businesses. There are 550,000 businesses in B.C., and the member alluded to cracks. We filled a lot of cracks, even today in our conversations. I think the member has gotten the answer that the member was looking for. If it’s a different program of some kind that the member is asking about, the member can let me know.
Noting the hour, I move the committee report progress and seek leave to sit again.
Motion approved.
The committee rose at 6:22 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of the Whole (Section B), having reported progress, was granted leave to sit again.
Committee of Supply (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.
Hon. L. Beare moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 p.m. tomorrow.
The House adjourned at 6:24 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF FORESTS,
LANDS,
NATURAL RESOURCE OPERATIONS
AND RURAL DEVELOPMENT
(continued)
The House in Committee of Supply (Section A); P. Alexis in the chair.
The committee met at 1:40 p.m.
On Vote 30: ministry operations, $517,715,000 (continued).
Hon. K. Conroy: Before we start, I just have some answers to a question that the member asked previously. These are the numbers for the B.C. Timber Sales no-bid volumes for the last four years. We actually have the coast and the Interior. If the member would like, I can give both of them.
Interjection.
Hon. K. Conroy: Okay, starting with ’17-18. So ’17-18 was 0.24 cubic metres for the coast.
Interjection.
Hon. K. Conroy: Yes. Sorry, 0.24 million cubic metres — I just assumed you’d know that; and 0.50 million cubic metres, for 0.74 million cubic metres in total. And ’18-19 is 0.23 million cubic metres for the coast; and for the Interior, 0.36 million cubic metres, for a total of 0.59. And ’19-20 is 0.78 million cubic metres for the coast; for the Interior, 2.14 million cubic metres, for a total of 2.92. And ’20-21 is 0.68 million cubic metres; and the Interior, 1.88 million cubic metres, for a total of 2.56.
J. Rustad: Thanks to the minister for the answer. We’re going to start this afternoon. We’ve got a few more things that I want to cover off in terms of B.C. Timber Sales. But let’s put it into the context of the modernizing forest policy, the intentions paper that just came out.
Again, I want to ask just a simple question just so that we set the stage for this afternoon’s discussion about the intentions paper. I was going to frame it this way. I might frame it differently, but I was going to frame it: what is the intention of the intentions paper? But I thought that might be a little too cheeky.
Obviously, the intentions paper is laying out a road map in terms of some changes and adjustments in forestry. What is it you want to see as a picture at the end? What are you trying to achieve through the intentions paper in terms of the change of the forest sector?
Hon. K. Conroy: I want to thank the member for asking me about the intentions paper right off the bat, because I’m pretty excited about it. It has been 20 years since there were any changes to forest policy in this province. It was time to bring forest policy into the 21st century to actually modernize the policy.
We’ve had major events, as the member is only too well aware of, with pine beetle, spruce beetle, wildfires and declining timber supply in B.C. We needed to reflect this new reality. As well, we passed the declaration on the rights of Indigenous Peoples. We had to bring the whole reconciliation into the direction we’re moving in with the ministry.
The ministry has, since 2017, done a lot of engagement. Those included the Interior forest renewal and the coastal forest revitalization. There was a lot of outreach and consultation on changes to FRPA, to the Forest and Range Practices Act. That was provincial, right across the province. Then there was, of course, the old growth strategic review.
All of those put together, with the consultations and discussions that the ministry staff and ministers past, before me, have had with people across the province…. That led us to believe we need to modernize forest policy.
What we’ve done with the intentions paper is…. We have three guiding principles that we’re using. I think the member has probably read the paper. We’re going to increase forest sector participation, enhance stewardship and sustainability and also strengthen the social contract. Underneath those three guiding principles, we have 20 intentions that we’re going to move forward on.
We have to make sure that we are going to strengthen the competitiveness in the forest industry while also guaranteeing that we have a future for the industry, and from my perspective, I want to make sure that we have a well-managed, sustainable forest industry that’s going to be here for generations to come in this province.
J. Rustad: I thank the minister for that answer. I wanted to give the minister an opportunity to start the conversation, talking a little bit about where things are going, hence why the question before we try to get into the details.
I agree that there is a transformation that is happening. With or without policy, there is a transformation happening, so it’s obviously better to be able to reflect that in terms of what the government is doing.
In terms of participation in the forest sector, perhaps if I could ask the minister: how does she see that? Is she seeing participation as being more people in terms of, I guess you could say, the person that has access to the fibre and more participation in terms of the products being produced through the chain in terms of whether it’s the loggers, those that are converting from a tree into a mill and then from a processing facility out the door? What exactly are you looking at in terms of participation, and how you do see that being expanded?
Hon. K. Conroy: One of the main goals for participation in the forest industry is, of course, to increase First Nations involvement in the forest industry right across the province. We’ve heard a lot from First Nations that they want to have more participation. They want to have more accessibility and more say on the timber that’s on their traditional territories. So definitely doubling the amount of tenure that First Nations have is one of the shifts that we’re looking at.
Also, another objective is more volume to create more jobs, so looking at more value-added producers — people, the facilities that actually can do more value-added — and also increasing B.C. timber sales across the province.
Then the third one would be community-based tenure. We’ve heard from communities across the province that they want more say in what happens with the timber that surrounds their communities, that they’d like to see more community opportunities for community forests. So we’re also looking at that. That would, of course, be treated on individual circumstances based on the community and what they’re looking at.
Diversity of tenure is a big one, as we have an opportunity to move towards more value and less volume, which is something the Premier has been saying ever since 2017 and giving everyone involved in the industry the message that we’re looking for more value as opposed to just volume.
J. Rustad: I think I understand what the minister was saying with that, which is good in terms of participation. I’m a little curious, though. I mean, a lot of what the minister talked about on participation is a shift in timber, a shift in the annual allowable cut. So it really won’t drive more participation. It will drive….
Some people will no longer be participating, and others will be participating perhaps more. The net result won’t be more participation from a harvesting perspective, from a managing-of-the-forest perspective, unless, of course, you’re talking about getting down to smaller and smaller parcels, which means you’ve got much more overhead associated with managing on the timber side.
In terms of a couple of things that the minister has said, which was to expand the community opportunities, I noticed in the AAC determination that came out in Prince George, there was no additional volume available for community forests, for example, as part of that allocation decision. So I’m a little curious, in that the minister talks about expanding community participation, what tools will be used to allow communities to be able to participate.
For example, in my riding, pretty much all communities…. But Houston, in particular, is being quite vocal about wanting to expand their community forest and potentially double the wood they have under permit. But without there being any allocation available, and with the declining AAC, obviously there isn’t an opportunity to be able to do that directly through the allocation side.
The other thing that I wanted to just ask the minister about, as well, is that with the participation of First Nations in that — you know I’ve long been advocating that I want to see that doubling of the volume available to First Nations — I’m curious: doubling from what number? Back a number of years ago, I think there were 11 million cubic metres of timber that First Nations had as part of their tenure. Some of that was non-replaceable; some of that was renewable.
I’m wondering what sort of target the minister has in mind in terms of how much volume that they foresee. You can break it down by interior and coast, if you want, or just as an aggregate number is fine — what the volume would be within the hands of the First Nation. Because if it’s a doubling of the woodland tenures, that was about 3½ percent, so that goes to 7 percent. And if it’s a doubling of the non-renewables as well as renewables, that’s also a question mark in terms of how that would work.
If the minister could perhaps provide a little bit of information in terms what some of those targets are for First Nations, as well as any mechanism that she’s considering in terms of whether it’s expanding community forest or woodlots or other types of tenure opportunities for people outside of the Indigenous and the traditional holders of tenure.
Hon. K. Conroy: Just to the member’s question, actually, Houston is part of the lakes apportionment decision, and that hasn’t been made yet.
Interjection.
Hon. K. Conroy: Okay. It hasn’t been made yet. That’s due to happen. Okay. That’s good. I just wanted to clarify that.
One of the overarching things we’re looking at is ensuring that we have better usage of fibre on the land base. An example of that is slash piles that are left and just burned. Instead of burning them, actually bringing in policies so that we can utilize that fibre, so it’s a much better way of utilizing it for a number of reasons, including environmental reasons.
With the First Nations, right now it’s a broad goal. There are a number of factors that come into play. So our broad goal is to double the amount of First Nations tenure to 20 percent. That’s our target, but it varies depending on where in the province the nation is, how much tenure they already have, and it also varies because of the need for the business-to-business discussion with companies and the companies’ relationship with the nation and also if the nations are involved in treaty. All of the factors are brought into it. So we’re looking at a goal of 20 percent for that.
Then you talked about mechanisms. We are looking at changing apportionment policy to create more flexibility for the minister to make decisions around who the apportionment, the tenure, goes to. It could give more opportunity for First Nations but, as well, give more opportunity for community forests, woodlots, things like that.
J. Rustad: The goal of 20 percent for First Nations…. I heard in the press conference, when the intention papers were released, the response from Chief John French. I believe he was targeting 50 percent of the volume on the territory. That was the comment that he had made. Obviously, there’s a big difference between 20 percent and 50 percent, in terms of what that will mean.
In some nations — for example, Ulkatcho, where 65 percent of their territory may be designated as park…. Or in other protected areas…. Some nations on Vancouver Island might have all or most of their territory already in some sort of protected state.
I’m curious in terms of how the minister will work through that difference between the 50 percent and the 20 percent in terms of what the expectation is versus the target that’s being set. Then how will that work in terms of some nations, for example, that were heavily hit by pine beetle that do not have opportunity wood within their territory or immediately within their territory?
Some nations don’t have, like I say, a protected area, etc., but will want to participate in the forest industry. How will the minister work through those sorts of targets and issues, I guess, with First Nations?
Hon. K. Conroy: For the apportionment decision for the Carrier-Sekani, it’s important to remember that we’re involved in a pathway agreement with the Carrier-Sekani, which I’m sure that the member is well aware of, and they aspire to 50 percent in that pathway agreement. When we did the apportionment decision, we were able to increase their tenure to around 20 percent.
I have to tell the member that when I met with the Carrier-Sekani, the nations were all represented, and the people that work for them — telling them what the decision was going to be. We announced it the next day. When I told them what we were moving to, the response was, from one of the Chiefs…. I mean, everybody was quite happy with the decision, but one of the chiefs thanked us and said that he never thought he’d live to see the day when a government would have the courage to double their tenure. So that was, for me….
I know that we’re moving in the right direction. Can we do it overnight? No, but we are moving in the right direction. Actually, it was a bit of an emotional meeting we had with the Chiefs when we announced that.
I just want to make sure I’ve said everything I need to say. Again, the apportionment decision was a separate decision than the pathway, but we continue to work underneath the agreement in the pathway agreement.
We’re also dependent on nations coming forward and talking to us about what they want. Some of the things we’re hearing is that some nations want to be involved in the forest industry, but some nations want to be involved in conserving the tenure or the fibre that is on their traditional territories. So we need to move forward with those discussions. Each individual nation represents individual wants, wishes and needs.
We still have to ensure…. If we look at a tenure, if there’s been beetle kill on that tenure, as you’ve said, or wildfire, we still need to look at ensuring that the First Nations get their due representation in spite of what’s happening with the tenure. So if — in the ministry, they like to use the word “haircut” — anybody has to get a haircut, it’ll be a haircut that’s going to work across the board. I don’t know why I…. Well, I won’t go there. You get it. But we have to make sure that they get their….
J. Rustad: It’s okay. I understand that language. That’s fine. It has no reflection on the deputy.
Hon. K. Conroy: No, on the deputy or a number of the people in my ministry. I think you understand that.
J. Rustad: Like I said, I was hoping we’d be able to have this as a conversation as we go through, so I appreciate the comments and the humour as part of it.
Essentially, 20 percent is the target — maybe more or less, depending on the nation, depending on their engagement, depending on the availability within the area.
I can remember, I think it was Wuikinuxv, on the midcoast, in treaty negotiations. I think that was the right nation; I hope it’s the right nation. Anyway, they were part of creating the Great Bear Rainforest and protecting these large areas, and they were happy about doing that. We signed the agreement-in-principle, and then they came and said, “Now we want 300,000 cubic metres annual cut,” and we’re like: “We just protected it all.” What are we going to do now? How are we going to get from one to the other, right?
There are decisions that will need to be made, as nations engage as being part of this, that could conflict with other objectives that are part of the plan, as we’re seeing now played out with, obviously, what’s going on in the southern Island. Those will be things, obviously, that we’ll need to work through. But it’s interesting to know the 20 percent target.
The minister mentioned a couple of other things that I just want some clarity on. I am going to need to ask some more about, like I say, BCTS, but we’ll get to that in a bit.
The minister mentioned expansion of B.C. Timber Sales as part of this, as part of being able to expand the opportunities. I’m wondering if the minister can perhaps describe what sort of target you’re looking at in terms of B.C. Timber Sales, of any potential expansion of B.C. Timber Sales.
And then… Well, maybe I’ll start with that. I want to get to the slash piles as well, because the minister talked about that. So I’ve got a couple of questions on that, but let’s go with that one first.
Hon. K. Conroy: There are a number of things here in the paper. The big thing — it was in my mandate letters — is to increase value, to go from volume to value. We have to look, when we’re making apportionment decisions, at more value-added opportunities, ensuring that the fibre that is flowing is flowing to more value-added opportunities.
One of the things…. We’ve taken the Wood Secretariat — it’s a new version, a modern version of the Wood Secretariat; many of them are experts in value-added — and getting the advice from them on what we need to do to ensure we’re generating more value-added. It’s a whole table of experts in that sector.
We also are going to stimulate more innovation in the sector, again, moving from high volume to high value, looking to the forest products in innovation on some of the things that they’re doing. We’ll get into things around slash burning, bioenergy and things like that on your next question, I think.
Shift to using mass timber, which is not only in my mandate letter but also in minister…. You know which one I mean. It’s also in his. So he’s brought together — through his ministry, because he’s trade — a whole mass timber advisory committee of people to help us move forward with mass timber.
We’re looking at public policy — wood-first. The legislation was brought in in 2010. We’re looking at adding to the legislation to actually have more mass timber usage in public buildings — to make that a policy in B.C. We’re looking at how we can utilize wood in the fibre that’s not accessible or not utilized much in the volume industry — for instance, something like hemlock, which is utilized in mass timber.
I had the opportunity, before I became minister, to tour the new mass timber plant just outside of my hometown in Castlegar — Kalesnikoff — with their new mass timber production. It was just fascinating to watch. Here all of this hemlock was being…. They were using the glulam structure to put together, making these mass timbers. They were showing me. We walked from the design of the buildings that they had gotten contracts for across B.C. and into the States as well.
Then showing me the work they were doing on those timbers that were going to be shipped off to build houses and buildings…. It was just pretty incredible to see. It’s like big Lego blocks. It was really incredible to see how they’re moving ahead in the forest industry and that technology. It was quite exciting to see that.
Then around B.C. Timber Sales, our goal is to grow category 2. The member knows cat 2 and the need to satisfy the needs of the value-added by growing the cat 2 when it comes to the B.C. Timber Sales.
J. Rustad: That was good. Those were some questions…. The minister provided some answers to some of the questions that I’ve got coming up, so that’s good. I’ll need a little more clarity.
The question I specifically was asking, though, was around expanding B.C. Timber Sales. B.C. Timber Sales’ target is around 20 percent per supply area. It’s slightly below that, I think, on the coast and slightly above that in some of the other areas. I understand if there’s going to be a shift towards category 2 or some of the requirements around B.C. Timber Sales.
Like I say, I’ll want to ask some questions around that in a bit. But this was specifically around whether or not the volume available within B.C. Timber Sales was going to be expanded or whether there’s going to be a shift within B.C. Timber Sales in terms of how that volume is put out in terms of sales.
That was specifically the question I was asking around B.C. Timber Sales. The minister, in talking about the intention paper, talked about expanding B.C. Timber Sales. It wasn’t so much expanding the role that B.C. Timber Sales may play, but expanding the actual volume that B.C. Timber Sales had available.
If I could just get the minister to maybe clarify between those two, in terms of the intention of expansion, then we can move on to a few other topics.
Hon. K. Conroy: I hope this answers the question. There’s a tenure redistribution tool in the intentions paper that we talk about, and one of the purposes of that tenure redistribution tool is to help to maintain B.C. Timber Sales’ 20 percent of the annual allowable cut so then we can properly price timber in B.C. under the market pricing system.
J. Rustad: Maybe I have to try to ask the question in a little different way. B.C. Timber Sales currently today has a set amount of volume in the province. It obviously fluctuates up and down, depending on AAC determinations and allocation and these types of things.
Is the intention of the ministry to expand the percentage of B.C. Timber Sales volume as a percentage of the overall cut? That’s what I’m trying to get to. When you talk about expanding B.C. Timber Sales, is there going to be more volume as a percentage of the overall cut that will be handled under B.C. Timber Sales?
Hon. K. Conroy: For market pricing, it’s going to stay at 20 percent, but we are going to grow the amount for value-added for the cat 2 category.
J. Rustad: Maybe the minister could just nod, one way or the other, on this. So I take it from the minister’s answer that there will be the volume that’s available for market pricing, but in addition to that, the goal is going to be to have additional volume available for cat 2 or other types of things. So that will be an expansion of the overall volume as a percentage under the B.C. Timber Sales program?
Okay. Thank you for that. That’s good to know. I’m sorry about going about it in such a convoluted way, but that’s very helpful. So thank you to the minister.
Maybe I’ll wrap one quick question in here. The volume that will be in the hands of First Nations — this new volume coming in: will it be in the form of woodland tenures, First Nations woodland tenures? Will it be in the form of just renewable tenures, such as the types of tenures that licensees currently have? What does that mechanism look like? What does that tenure look like that First Nations will have?
Hon. K. Conroy: As we engage with respective nations throughout the province that are interested in actually having this discussion with us, and we understand what their business interests are and what their land and resource management interests are, then we’ll be in a better position to actually know what form of tenure they could be looking at and whether they want it independently or as part of an agreement with a company or with industry.
We know that there’s a wide variety of tenures, and it’s quite diverse — what they could be looking for. They could be looking at replaceable tenures or licences. They could be looking at a mix, and they could be looking for area-based woodland tenures. We have to have those discussions with a nation to determine what they’re actually looking for.
J. Rustad: That’s helpful. That’s good. So there will be a suite of options for First Nations to consider. I’m looking at it also from a perspective of in the Prince George supply area, with the recent allocation decision of up to or close to 20 percent that is going to the First Nations. So I’m wondering. Obviously, that’s a decision that has been made that is impacting the supply area in terms of the shift within that supply area. There are a lot of mills and a lot of companies that are dependent upon the wood, both contracted and otherwise.
How is that 20 percent or up to 20 percent being allocated within the Prince George supply area now that the allocation is being made? Obviously, once the allocation is made, it’s now in First Nations hands. So is that a renewable tenure? How does that look? If there’s a discussion that may go on over a period of time in terms of whether it’s area-based or whether it’s various forms of tenure, that means there isn’t harvesting going on. And 20 percent of the volume could be disruptive to the mills and to the communities in the area if those tenures are still being negotiated as opposed to actually being operated on now that the allocation decision has been made.
I’m just curious as to what that vehicle looks like now in the Prince George area and whether that will be…. I guess, let’s find out what that vehicle looks like first, and then I’ll talk about what that may look like for other areas.
Hon. K. Conroy: It’s important to note that with this apportionment decision, the ministry has been working for quite some time with the First Nations that are with the Carrier-Sekani, and all of the nations that are involved are committed to continuing the fibre flow in the area. Both of us, the government and the nations, are committed to ensuring that it’s not interrupted in any way. There are a number of tools to ensure that we do continue to flow the fibre. They’re really well prepared. Some of the nations, particularly, are very well prepared to ensure that fibre continues to flow.
It’s important to note, too, that the volume hasn’t changed — the volume of the annual allowable cut — and that this just gives tools to move it, to ensure it gets done. One of the things when I was making a decision…. There’s a really strong partnership between those First Nations and the industry that’s up there. That carries on, of course.
It’s important to note that while the disposition is being finalized, the existing contractors are still working underneath the existing commitments from the AAC. So we feel that things are going to keep moving, and the nations are very committed to ensuring that happens.
J. Rustad: I thank the minister for that. Maybe I can just get the minister to nod, just so I fully understand what I think that the minister just said. The previous cut in the Prince George supply area, which their mills were still operating on, was around 11.3 million cubic metres. The TSR recommended dropping down to around 8.3, 8.4. I can’t remember exactly what the number was.
The new apportionment brings that cut down to that level, but because it’s not quite finalized — if I understand what the minister said in terms of the First Nations, etc. — companies are still cutting to the 11.3. They’re not actually cutting to the new TSR yet. Is that correct?
Okay. That’s good to know. So we’re just about five years into the TSR, and we’re still cutting at the old level. Okay. With lumber prices where they are, I’m sure the companies are taking advantage of that, for sure, at the moment.
Then maybe if you can just confirm. The First Nations have this notional allocation, but it hasn’t been finalized yet, so the process is still going on. Is there some sort of interim compensation? Is there some sort of process that’s going on, or is this something that will take a year or two or longer to finalize in terms of how this tenure structure will look for the First Nations in order for that transition to happen?
I guess what I’m trying to find out is just a sense of what we’re looking at in terms of timing. Obviously, there was an announcement. There was a lot of discussion and interest around the announcement there. There’s been the announcement on the intentions paper. I’m trying to get an idea of: is this suddenly going to immediately switch? Is it something that’s going to happen over time? Obviously, we’ve got another TSR that’s going to be coming up in a few years. If this takes a few years, we’ll actually be into the next TSR before things will start happening.
I’m just trying to get that sense of how this is going to work. Obviously, there’s the goal within the intentions paper. There’s what’s been laid out now in terms of the allotment. But I’m not quite sure exactly how that translates to what’s happening on the ground.
Hon. K. Conroy: The member is right that it could be complex. It could take up to a year. We need to make sure that…. Because we have apportioned significant volume into the First Nations category, now the regional staff need to work with all the nations in that service area to make sure that allocation is going to be distributed appropriately. They have to have the process to do that.
It’s really important to remember that they have to get it right, because as the member said, we don’t want to have any interruption to the timber flow. So we have to make sure that we’re getting this right. That’s a decision and work done by the regional executive director up there, and they are doing that work, hoping that it can get done as soon as it needs to get done. Again, those important conversations with the nations have to be done because we want to make sure it’s done properly.
The Chair: Thank you, Minister. We must now take a five-minute recess while we undertake some cleaning and safety protocols in preparation for the new committee Chair.
The committee recessed from 3:05 p.m. to 3:15 p.m.
[R. Leonard in the chair.]
The Chair: Thank you, Members, for your patience and continuing debate.
I recognize the member for Nechako Lakes.
J. Rustad: Thank you, Madam Chair, and welcome to the debate. It’s not really a debate. It’s more of a conversation, but still, all good. We were talking about the forms of First Nations tenures and the process around these issues with the implementation.
Maybe just to confirm, and it can be done with a nod from the minister if I’ve got this right. Essentially, even though we have this allocation, or apportionment, I should say…. I should try to use the right language. We’ve got the apportionment decision. Basically, companies are still carrying on with what was happening from the previous TSR and will be until such time as the agreements are in place with the First Nations in terms of the 20 percent, or up to 20 percent, volume that will be in their hands.
I see the minister nodding. Okay, I’ll leave it at that. Thanks. Seeing that that’s correct, that’s good. Okay. At least now I understand what’s happening on the ground, at least in the Prince George supply area. Obviously, other supply areas will be a little different as time goes, and we can talk about how that unfolds.
There will be a variety of tenures for First Nations around that, and I think I understand the mechanisms. The minister hasn’t indicated that she’s creating any new tenure system for First Nations around this. I’m assuming it’ll fit into one of the models, whether it’s area-based or volume-based, whatever the case may be, within the existing suite that the minister has available in terms of volumes.
I’m just moving on to another topic in the short term here. The minister talked about the slash piles and wanting to be able to utilize the fibre. On the coast, there were fibre recovery zones, which were designed to try to bring fibre into the pulp mills, in particular, to be able to be chipped, to be brought in, and forcing companies, basically, to recover at a set cost.
Throughout most of the Interior, although not all of the Interior, a lot of the fibre is already being recovered, where it is economical, to move it into pellet plants or to move it in for hog, either power production or burning within the mills for their own energy purposes.
Is the minister anticipating creating fibre recovery zones in the Interior, similar to what has been happening on the coast?
The Chair: Minister.
Hon. K. Conroy: Welcome to the chair, Madam Chair.
No, we’re not looking at fibre recovery zones in the Interior. There’s a healthy market in the Interior, so it’s not required.
J. Rustad: The minister talked about utilizing more of the slash. Perhaps the minister could expand on what she was referring to. We know the slash is already being used. It’s fairly healthy in many of the areas throughout the Interior. So when the minister talked about utilizing more of that, perhaps the minister could provide some clarity in terms of what the thinking is around that.
Hon. K. Conroy: The goal, of course, is to utilize more slash. In the intentions paper, it says the intention is that we are looking for partners to move this policy forward. Of course, climate change is a big part of this. By phasing out burning, we are of course reducing the emissions of CO2 into the atmosphere, but we are also looking at use for sequestration and biomass products. There are a number of examples of that. Climate change is one of them.
Then, also, we’re looking at the pulp and pellet sector. Right now that market is a little volatile, so we’re looking at longer-term opportunities for using these slash piles. Perhaps I shouldn’t call them slash piles — these increasingly valuable piles of fibre that we’re going to use in the industry. So we’re looking out for those long-term opportunities to be able to use them.
J. Rustad: Okay. So we’re not looking at…. When we get close to revitalization, I’ll have to ask about those fibre recovery zones and why we’re not looking at them in the Interior. But that’s okay. I agree we need to try to utilize the waste wood that’s left behind.
The minister just talked about not wanting to burn it, but I think in the intentions paper, as well, it talks about wanting to put fire back on the landscape. I’m assuming that would be to burn blocks as well as natural fire — you know, burn more areas for firebreaks, for cultural purposes, etc.
What I’m concerned about is that if a licensee knows an area could potentially be burned, they may be reluctant to bring in material that otherwise might end up in a slash pile or be utilized, because it’s just going to be burned. How will the ministry actually monitor this issue of the fibre utilization, as we’ve been talking about — wanting to utilize more of that versus the ability to be able to leave it in a block to be burnt?
Hon. K. Conroy: A good question from the member. Obviously, we want to make sure that we’re managing fire — prescribed fire as well as the cultural fires — and respecting the wishes of Indigenous Nations who are asking for the cultural fires. We have a prescribed and cultural fire committee that actually determines where the fires are going to be and provides advice to the ministry. It’s all about getting the fibre utilized, because of course we want to cut down on the GHG emissions.
It’s about community safety, but it’s also about enhancing wildlife habitat. I mean, that’s been an issue. I hear from a number of people that are involved in the conservation of wildlife, and they continually say that we’re much too efficient at putting out wildfires and it doesn’t do enough to increase the habitat for wildlife, so that’s definitely helping.
Just so the member knows, this year there are 8,000 hectares planned to be burned as part of a prescribed or cultural burning. I know it’s certainly happening up north; I know it’s happening in my area. There are different community forests that have gotten grants to undertake the prescribed burning, and it’s been acknowledged by communities in the province that they want to see that happen just because of the community safety aspect of it.
Definitely the two go together. They’re complementary to each other, making sure we’re not pile-burning, while at the same time, looking at those prescribed burns that are needed, as well as those cultural burns.
J. Rustad: One of the real risks after logging is certainly the piles, if they’re not managed or they’re not burned. Obviously, when they’re not utilized, and if they’re left, they can be real hot spots and can put embers a long way, potentially miles, spreading a fire. So fire, of course — burning the piles afterwards — is an important piece.
But the question I actually had for the minister is: will we actually return to burning blocks — perhaps not all blocks, but some blocks that have been harvested? In particular, when we saw the big wildfires over a couple of years, any block that had been previously burned decades ago, when we used to do that…. The fire actually stopped at that block or went around it. And blocks where there wasn’t burning, the fire of course swept through, unless the stand got to the point where the crown was closed and the young trees provided enough protection for a fire to not be able to spread into it.
The question is, with the intention paper, when it talks about returning fire to the landscape: is the ministry going to consider returning to being able to do broadcast burning on harvested areas, on blocks that have been harvested, as part of both enhancing habitat and reducing wildfire risks and managing the landscape?
Hon. K. Conroy: This is actually one of the recommendations from the Abbott-Chapman report, which was done a few years back, to move back to broadcast burning on the land base and to involve First Nations. We are working with industry to start doing more prescribed burns. It’s taking some time to build back that capacity and the expertise, because it hasn’t been done for a while. So that’s taking a little bit of time.
It also requires changes in the current policies. That’s why it’s in the intentions paper. Liability is also a part of this that we’re working on. We need to modernize, and that’s the whole idea behind the intentions paper. We need to modernize this silviculture tool, and we need to bring it back. It’s important to acknowledge that it’s not appropriate for all areas. It will be a key element in the forest landscape plan with the amendments to FRPA that we’re looking at bringing in.
We really need to collaborate on the approach between First Nations and communities and companies in a wider way. As an example, the southeast ecosystem restoration program is working very successfully. It’s an example of what we can do with prescribed burning and cultural burning in the province.
J. Rustad: I’m pleased to hear that that’s something they’re working on. Air quality is something that was always a big issue when we did broadcast burns. But after two years of everybody being smoked out, there isn’t nearly as much concern there anymore. It could be an effective tool to be able to bring back to the landscape to do the thing that is most necessary and most needed in terms of the management side. So that’s good.
I want to ask a couple more questions on B.C. Timber Sales, in particular on category 2 sales. The minister talked about wanting to be able to expand the volume and the availability of those types of wood opportunities for value-added and for others. Does the minister see any current problems or current issues with the way the cat 2 program is currently operating within BCTS?
Hon. K. Conroy: This is in my mandate letter. It’s a big part of my mandate letter, the whole moving from more volume to value and ensuring that we meet that demand and the objective in how we want to move forward.
We’re going to be enhancing the value-added sector and making sure that we also strengthen the category 2 sector in the industry. It will focus on more volume into the market for more diversification of the volume.
We also are pulling together, from the industry, value-added partners. I think I might have mentioned this before. We’re pulling them together to look at what we’re doing, how it’s going to work and how it can work better for them, just to make sure that we are bringing in changes or looking at strengthening the category 2 sector so it will ensure that it increases the value-added sector’s ability to access the timber.
J. Rustad: Thank you to the minister for the answer. The reason why I asked about the category 2 volume is that I’ve heard rumours, and there are complaints that come in from companies, as I’m sure the minister has heard, in terms of how category 2 sales go, whether it be the surrogate bidders or this kind of thing that goes on as part of it or whether it’s volume that gets logged but not necessarily processed and ends up just being sold, not necessarily to the value-added sectors, as we call it, although I’m not sure if that’s quite the right word for it.
In any case, that’s why I asked about the category 2 program. In expanding the category 2 program and in engaging in that, as a ministry, are you…?
Is the ministry looking at whether it is some changes or reporting or constraints or these types of things in terms of how the category 2 program works so that the volume that it does have can perhaps be better utilized in achieving the objectives and that that new volume going in will also help to really enhance the system as opposed to…? What I’m hearing is some of the other problems that can crop up within the cat 2 system.
Along those lines, and I might as well throw this in there as well…. If the minister would like me to break it out into a second question, that’s fine. I can do that. Sometimes the category 2 sales go no bid. Maybe the minister could clarify whether that wood then moves into a regular sale from B.C. Timber Sales or whether the upset price is adjusted to try to keep it within the cat 2 sale program.
I’ve heard there have been some instances — and maybe this is inaccurate — where cat 2 volume did not sell, so it actually just went into a straight timber sales block, and, actually, the volume did not stay within the cat 2 program.
It’s a lot to chew on, I think, for the category 2, but it’s an important piece of the program if we’re going to be talking about doing work with value added. I just wanted to make sure that these things are something the ministry is planning to work on, and try to get a sense as to how the minister will try to move forward with this program.
Hon. K. Conroy: The program…. It’s a rather tightly managed program to ensure that they’re meeting all the requirements. They’re always pursuing continuous improvements, which is that they get advice from clients just to ensure that they can move forward to enhance the program. So that’s ongoing with this program.
With the no bid that the member raised, when a sale doesn’t happen, they readvertise it a second time, and it’s only after that second time, if it still doesn’t sell, then it’s sold as a category any or a category 1. That could be due to local market conditions or the volume just isn’t required, so then it just doesn’t sell as a category 2.
There’s also a timber sales advisory committee, and as part of…. They provide ongoing advice and support to the program, and that is made up of cat 2 participants and registrants. They give advice to make the category 2 better. It’s also important to know that each timber sales manager also tries to work with their local communities, the local value-added community, to get input from them as well.
So there’s quite a robust system of inputs in place, and as we work on the intentions policy on category 2, we are going to be sure that we use all of these advisory stakeholders and situations to make sure that we are getting the information as we move forward with the new policy.
J. Rustad: Maybe the minister can give a nod. I just want to make sure I understood what I heard her say again in terms of the cat 2. So if a cat 2 block goes no bid, the stumpage or the upset price isn’t dropped to try to move it out into the market, or is it…?
We talked about this earlier in terms of some of the coastal blocks, the coastal wood through B.C. Timber Sales — not cat 2, obviously, but just regular sales. If it went no bid, the upset price was dropped, and it was readvertised. I’m just wondering if that is the same process that’s happening for cat 2 or whether it’s just put back on to the market a second time for a bid, and if it goes no bid, then it goes into category 1 or bid any category for that.
So I don’t know. If that isn’t a quick nod….
Interjection.
J. Rustad: Okay.
Then along with that, while somebody’s digging up that answer for you…. We’ve long heard, from the Interior Lumber Manufacturers Association, that slogan: “The right log to the right mill.” I’m sure there are folks on the coast as well that will talk a little bit about that in terms of utilization of fibre.
Through the intentions paper, is the ministry planning to take any steps to try to achieve that through volume that’s coming into the majors or even through to some of the value-added? That the wood is being flagged or somehow being able to be utilized or moved so that the highest value can come out of that tree, as opposed to it just going into making the lumber or dimensional lumber or other types of things?
Now, having said that, obviously, that nice tree that’s perfect for value-added is also high value for a company, because they get a very good return on the wood in terms of their utilization and what they can actually get out of a tree. So it’s value to them as well. I’m just wondering, if the intention paper has talked about this approach in terms of capturing the value, if the ministry is planning to do anything around incenting or penalizing or some sort of mechanism for being able to get a log out of what would be a general cut and make it available for the value-added side.
Two questions there: one around the cat 2 sale, and the other is around how we try to figure out how to use the right log to the right mill.
Hon. K. Conroy: In answer to the member’s no-bid price question, yes, we do. For the second sale, if there’s no sale the second time, then it goes down to the category 1 or the category any….
J. Rustad: Is the price adjusted, though, for the second time?
Hon. K. Conroy: Yes. But it’s driven by the ministry pricing policy, okay? Then on the right log to right mill, yes, I hear that all the time. I’ve met with the Interior Lumber Manufacturers Association for many years since I’ve been an MLA, since 2005, and even before that. I think we all hear that, and it’s a good philosophy to have. I agree with it.
Right now the ministry supports the industry to obviously extract the highest value possible from the timber supply and every log. We create an opportunity in policy for a trade so that manufacturers can trade with each other as to the best usage of the log. So there’s trading between the licensees to ensure that that fibre gets to the right facility.
How we price timber in B.C. is based on value, so the value of a stand of timber. We want to make sure that you’re not going to send a high-value log to be chipped in a pulp mill when it’s worth so much more when it’s in either dimensional lumber or in a value-added mill.
We do support moving the right log to the right facility. And with the intentions paper, by focussing on the category 2 program to ensure that where arrangements aren’t supporting higher value, we are going to be ensuring that we can support those value-added producers. They’re the only ones who can bid on the category 2, so it’s making sure that they get the opportunity to utilize that timber.
Again, we’re talking to the category 2 registrants and talking about how we can ensure that this happens — to make sure, as you said and as we all agree with, that the right log gets to the right mill.
J. Rustad: What I didn’t hear there was there wasn’t…. The ministry doesn’t seem to have a specific policy, but they’re going to be encouraging the swap and the trade in terms of getting the right log to the right mill, other than what they’re doing with cat. What I didn’t hear is that the ministry doesn’t plan to interfere in terms of how logs are going to be evaluated or as charged or this kind of thing — to try to create tools to further encourage that utilization.
Minister, correct me if I’m wrong on that, but I want to move on to another component. I’ve been trying to go through just the first main principle of the intentions paper. I know it’s wandered through many sections and many components of the intentions paper as we’ve gone through this discussion so far. But I wanted to just — before I move away entirely from that first principle — talk a little bit about clarity on compensation and, in particular, around the tenure and that whole side of things.
The paper talks about establishing a clear framework, laying out where the underlying circumstance of compensation for lost harvesting rights will apply. It talks about some expansion or some revisions to Bill 22, in terms of that side. I guess what I’m looking for is perhaps some clarity in terms of what the intent here of this is.
Obviously, through allocation or allotment, there’s been a shift in terms of some of that renewable tenure and that side of things. Some may say that was a loss of timber. I know that the companies aren’t too concerned, because they still have access to the fibre, which is what they’re looking for. But as this goes, it’s going to become more and more thorny — I guess you could say that word — for licensees that have timber as things shift, whether it’s volume going into B.C. Timber Sales for cat 2 or whether it’s other adjustments in terms of how tenures are addressed.
I guess where I’m trying to get to is to have a better understanding of: under what circumstances is the minister looking at the possibility of compensation for a shift in tenure, and what mechanisms may trigger that shift? Then, ultimately, where that leads to is to ask the minister if there is a mandate that has gone through Treasury Board to be able to have funds available to the ministry to draw on to be able to shift or whether that’s something that is being anticipated a year or two or three out, in terms of how the intentions paper will be developed and implemented.
Hon. K. Conroy: It’s really important to establish a framework based on several decisions that were made in court. It needs to be made clear that existing forest compensation lacked clarity by not specifying how harvest rights and fixed improvements are to be valued and how it’s taken into consideration when calculating compensation. It’s also about protecting the public interest and clarifying, for both industry and government, what is appropriate, how it’s determined, and what is actually compensable.
This is why we need to do it. We need to stabilize compensation in the industry and for government. We have a lot of situations right now where we would be looking at potential compensation — when we’re looking at redistribution of tenure, when we’re looking at what’s happening with the old-growth strategy, what’s happening with species at risk, like caribou. We had to be looking at issues like that.
Right now as far as Treasury Board goes, the intentions paper has indicated our intentions to create a tool, and that it’s necessary. We need to do this for stability in the industry, and in the future, it’s going to be done. We will go to Treasury Board on a mandate-by-mandate, case-by-case basis to get the required compensation. But what’s really critically important is that we need this framework in place so that it provides clarity for everybody and we’re not depending on litigious situations in the court.
J. Rustad: Yes, nobody wants to end up in court with this. That doesn’t help anybody with resolving the issues.
Part of the intention paper and part of the conversation around it with tenure was the talk about basically rewriting or changing, altering, adjusting — whatever we want to call it — these renewable tenures and whether that was the time frame or whether that is the conditions, the performance.
I just need some…. I’d like to ask the minister for some clarity around what the ministry’s intention is on renewable tenures and how they may change — whether there are going to be performance standards or other types of things that will go into that. Of course, this feeds into the possibility of compensation for tenures, as well, in how this is structured. Perhaps if the minister could provide some clarity or some thought around how these tenures could potentially change — these renewable tenures that are held by licensees — the requirements and what that process would look like.
Hon. K. Conroy: Some of the things we have to ensure when it comes to performing — that licensees are performing to standards that we require — and that we’ve learned from the public interest test that was brought in, in Bill 22…. We’ve learned quite a bit from that one, and there have been other learnings, as well, that we can use to improve requirements around tenure renewal and replacement.
When we’re looking at public interest — for instance, looking at performance — right now the partition set by the chief forester that sustainable harvest practices…. To ensure that they’re being followed, we have to have policies in place that we can act on. Also, if licensees, whether they’re engaging with First Nations or not, working effectively with First Nations or not — having policies in place that can ensure that, working around that. I think we’ve been pretty clear that we do want to see licensees engaging with local First Nations, and that’s critically important.
Also, the whole aspect that the tenure is a legal document. We need the structure to be able to have discussions with licensees to make changes so that they can better manage the tenure. Right now we don’t have that ability. These are intentions that we’re going to move forward on, with the tenure.
J. Rustad: I need to maybe ask for a little bit of clarity, because something the minister said raises a bit of a red flag for me.
In terms of the tenure and the tenure form, in terms of the desired outcomes, I guess you could say, for how licensees operating with the tenure…. The minister talked about the relationship with First Nations and how that evolves. Obviously, I think the minister and I are probably in agreement, in that we want to see good relationships between licensees and the people operating on the land base and the First Nations.
A situation could arise where you have a First Nation that may not want to cooperate, through no fault to the company at all. You’re in that situation where the relationship breaks down for a variety of reasons, maybe not even related to the actual actions or what’s happening on the land base, but because of some other objective that a First Nation may want to achieve.
My concern is that when you’re in that situation where if the relationship is not good, and you’ve created a device or a tool for the ministry to be able to, perhaps, pull back tenure or compensate for tenure based on a relationship issue with a First Nation, you may actually create an incentive for a First Nation to not want to participate or to be engaged with the company, because it could ultimately lead to a situation where tenure is taken away. The First Nation may have an opportunity then to acquire more tenure.
I’m just raising this as a possibility. It’s one of those what-if scenarios. As we’re talking about the intentions paper and the development of this, if you create mechanisms and tools for the ministry to be able to pull back tenure if they’re not performing or meeting objectives, you’ve got to be careful in how those levers could be activated and the causes that could lead to those activations.
Perhaps I’d give the minister an opportunity to give a little bit of clarity in terms of how these tools were developed, whether it’s a shift or the change of the licences. Perhaps if the minister could provide some clarity around what sorts of triggers could potentially be created in an existing renewable tenure, that could see a non-performance by the licensee.
Specifically, if the licensee isn’t harvesting within the five-year cut control period, if they’re not actively harvesting all of their tenure, does that mean there is potential for, I guess you could say, a “use it or lose it” type of policy approach? For whatever reason, if they can’t cut, is it the intention of the ministry, then, to be in a position where they could reduce the tenure or take some tenure away if it’s not fully being utilized?
If there’s that relationship issue with a First Nation, does that create the ability for the ministry or the minister to be able to look at pulling back some volume, as well, as part of how that’s changed? I don’t know. I want to make sure I’m clear in asking.
There are two very specific questions around this because it’s obviously very important in how the tenure changes are going to happen, what some of these levers could look like and what the response from companies or First Nations or others may be. For example, if a company isn’t able to achieve a harvesting target of their annual allocated cut because they’ve been blockaded for five years, does that mean the volume may get pulled back?
I’m trying to throw out some what-if scenarios because I’m just concerned that there needs to obviously be circumstances being taken into consideration. I do understand the intent of what the minister and what the paper was trying to describe. I’m looking for that kind of clarity in how that structure may be in place and what some of those levers could potentially look like. Obviously, that may still be in development, but if I can get some idea of where this is heading, that would be helpful.
[M. Dykeman in the chair.]
The Chair: Minister.
Hon. K. Conroy: Welcome, new Chair.
I think it’s important to acknowledge…. The member has had some interesting examples. One of the things we can’t do right now is have those important discussions with licensees. We need policies in place to be able to do this, because we need to ensure the public values are considered when we’re looking at replaceable tenures.
Public values, for our government, include DRIPA, the declaration on the rights of Indigenous Peoples. It includes our goals and objectives, moving towards value-added. We also need more definition as we move forward, so we will be talking to licensees, to First Nations, to different communities, getting input. We’re going out and getting input from all different sectors as we move forward on this.
We also won’t be setting up adversarial relations with companies and industry. We want to make sure that we can move forward. I like to think of Grand Chief Stewart Phillip’s quote that reconciliation isn’t for wimps. At times, the work will be tough, but we need to move forward and make sure we’re doing the work, with the interests of the Indigenous Nations front and centre while also making sure that the licensees are performing the work they need to do and are being kept whole.
In the end, I think this is about making sure that our public forests are being well managed. These forests belong to all of us. They don’t belong to industry; they belong to everyone. We need to make sure that we’re following our values and moving forward so we can do just that, and that’s exactly why this is in our intention paper.
You’re right. You’ve hit on some of those things we need to move forward on, and we need to have the ability to have those conversations with licensees to find out what’s working, what’s not. It’s critical. It’s about transparency in what we do with the ministry and with our tenures.
The Chair: Before I go on to recognize the member, does the minister or member…? Would you like a five-minute recess, or would you like to press on?
Members, we’re going to take a five-minute recess. We will return back here at 5:10 p.m.
The committee recessed from 5:05 p.m. to 5:13 p.m.
[M. Dykeman in the chair.]
J. Rustad: I think we’ve talked a little bit about the tenures and the tenure side, and I guess there’s one last question that’s rattling around in my thoughts around tenure. That is something I talked about a little bit earlier, which was First Nations and the control of tenure and a concern that volume will actually flow.
I know there are many First Nations that are eager and excited to be participating and want to see this, but historically, the amount of volume that First Nations have been able to actually get harvested has been significantly below the volume that they’ve had available. I think there was one year, back when I was on that side of the table, where there were about 11 million cubic metres in First Nations hands, and I think they were only able to harvest about five or six million cubic metres of that.
That’s for a variety of reasons. There are all kinds of issues around that, but, clearly, if the volume is not flowing, then that puts pressure on the whole system, and that is a concern.
One of the things that I thought I had heard, in terms of the presentation of the intentions paper — or maybe I read it in the intentions paper; I can’t remember — was this idea that if a licence isn’t being fully utilized, whether that would be a consideration for the ministry to step in — whether it’s pulling the licence back or taking other measures, whether that’s a current existing licensee or where that may be a First Nations licensee. You know, we’re in a situation, for example, up in Fort Nelson where the licence that was held up there wasn’t active for many years. There was no harvesting that went on under that licence for many, many years.
I’m wondering what assurances, I guess, or what actions the ministry is taking to make sure that, whether it is a First Nation or non–First Nation, whether it’s an existing licensee or a new licensee — what measures the ministry may consider taking to make sure that volume will flow and that we don’t end up in this situation. And, if volume doesn’t flow, what measures the ministry will take to be able to rectify the problem, rectify the situation, so that we’re not in a situation where we have significant swings in volume. That, obviously, means downtime and impacts communities and workers and others.
Hon. K. Conroy: It’s interesting that the member raised this. The industry also talked to us about the very same thing, especially after the apportionment decision in Prince George. One of the questions was: what if the First Nations aren’t ready to ensure that the tough fibre is flowing? It is definitely something that we have talked to industry about. So interesting to have the question come again.
Undercut, in the industry, can happen with any of the licensees, with First Nations or with non–First Nations licensees. Also, I think the member well knows that it’s averaged over five years so that it’s not looked at on a year-by-year basis or over a one-year cycle. If there is underutilization, we do have tools in place like non-replaceable licences, NRFLs — I had to get that in there; I had to ask a few times: “What is that?” — to ensure that we do utilize the annual allowable cut.
One thing which I think is critical now is…. Things are different right now, as there’s a tighter fibre supply. I think things have tightened up quite a bit. It’s not like it used to be when there was quite a bit of fibre around, especially with all the beetle kill. Now I think, with the declining timber supply, there’s really much less chance of this happening. We really feel strongly about that.
One of the things we have to remember is…. In moving more Indigenous nations into the forest sector, we have to ensure that we have the tools in place to support them. We have to make sure that we can help them to build capacity and develop business relationships. We are moving forward, and nations are reaching out to us saying they want to be involved in the forest industry. We want to make sure that it’s done properly.
I think I said it, but I’ll say it again. It’s not going to happen overnight. We have to make sure that we have those tools in place so that it can be done properly.
J. Rustad: I appreciate the complexity and the challenges.
One of the things that has come up, which made me particularly ask a number of questions on this line, is when the decision happened around the Cariboo and the deal up in the Peace country, in the Chetwynd area. I think it was part of that deal or outside of that deal or somewhere around the same thing. I wasn’t quite sure exactly how it all came out, but there was some volume that was shifted to West Moberly, in terms of part of a cut that went in there. West Moberly has said they have no intention to cut.
That’s volume that’s lost out of the system. That, ultimately, is going to lead to a mill closure in Chetwynd, unfortunately. Now, it’s not just that. There are other factors that are in there. That’s where my concern is for the forest sector. If you end up with First Nations that say, “Sure, we’d love to have some volume,” but then they aren’t cutting, that could lead to a lot of friction and challenges and issues, I think.
I want to move on beyond that, but that’s the reason for asking the question around this, whether there will be any tools associated with this. Elections come and go; people come and go in First Nations and in other communities. If there’s a shift in thinking within a nation, you could end up with a lot of volume that doesn’t hit the market because a nation shifts its priorities in terms of what it wants to do. That can have a pretty significant impact, particularly when we’re in a tight fibre supply, as the minister has mentioned. It doesn’t take a lot of fibre to suddenly change the economics around viability, which, ultimately, can gut a community simply because of a shift that’s there.
Now, I’m not anticipating that’s going to happen. I do believe…. I’ve been the Minister of Aboriginal Relations and Reconciliation in the past. I know the nations that want to be involved, that want to be in there and part of it. But like I say, sometimes politics change. Priorities change.
When you’re in that situation where that’s no longer, perhaps, a priority for a particular nation, you can get those changes. That’s why I’m asking whether there are any tools within the ministry to be considerate of the fact that there are other values in the province that need to be considered as part of how our forests are managed and how the annual allowable cut is made available.
When tenures were first created, lifetimes ago, back in the 1800s, the intention of them was to be able to create jobs, to be able to create activity, as well as, of course, revenue to come to the province. That was the intention of the tenures. That was the whole intent behind it. They were made out for 15 years and renewable so that there would be something that no other jurisdiction basically has, which is this bankable tenure to be able to drive investment to create the jobs and create the value from that public asset within our society.
That’s one of the things I just want to make sure the ministry is thinking about as it goes through there, because it may need these tools. Whoever holds the licence, it may need these tools to make sure that the volume is going to be available. Otherwise, like I say, you’re going to have these impacts. Then, once a mill goes down, getting it back up and running is not really in the cards, and that just changes the dynamics throughout an area.
Like I say, I do want to move on. I want to talk a little bit…. As we’ve been going through the intentions paper, we’ve talked a lot about value-added. We haven’t talked directly about it, but obviously that’s a big chunk of the objective. Trying to get more value instead of volume is the mantra that is in around this.
I’d like to ask the minister a number of questions around this. Let’s start with just trying to get a picture of the minister’s perspective or view, in terms of what value-added is. What is it that is this objective? We talked about cross-laminated timber and the Kalesnikoff plant. I look forward to the opportunity to visit that, I hope, this fall, once we get a chance to be able to go out and about. I’m hoping to get a chance to be in there to actually see it for myself.
We’ve seen, just south of the border, one plant go under just in the last week or so, in terms of the announcement, because the market wasn’t there. When I’ve talked to industry analysts about the Kalesnikoff plant, well, that one plant would be more than enough for anything we would want to build or utilize in British Columbia in its production.
You think about what the capacity is for doing these types of things in North America. You’ve got plants that have started up south of the border, and we had a failure of one because of the economics. I’d like to get an idea of the value-added, because obviously, there’s value-added in the Lower Mainland in terms of what they’re doing. There’s the remanufacturing side of things, whether it’s shakes and shingles, whether it’s producing these high-value products, these veneer plants around various places.
Like I say, I’d like to get this idea from the minister in terms of what the government’s perspective is on value-added, what it is they’re trying to achieve within the province — get an idea of, five years or ten years out, as this forest sector shifts, what that picture would look like.
Hon. K. Conroy: I just wanted to clarify one thing, too, about mass timber. My understanding, especially after viewing the Kalesnikoff mill…. They do have contracts all over North America, and they have quite a few in B.C. They have them across Canada. I think it’s also about quality. It’s a known fact that in North America, we have some of the best quality of fibre, so people like to use our products. That’s why we have such a successful dimensional lumber industry and why we want to make sure our value-added is just as successful and ensure we’re providing those existing value-added companies with the support they need.
Of course, the member is well aware of things like siding and doors and windows and things like that. Pellets has really taken off, as well. We actually have quite a pellet industry, serving both not only the local market, but as well as the global market. There are things that we can also be looking at — the bioindustry, the bio-added — things like potential to utilize the fibre in that way. So things like biofuel, biomaterials.
An interesting thing that I learned about lignin from pulp mills…. They can actually create plastics that can be utilized in 3D printers. You’re using a biodegradable product that’s not going to be around for hundreds and hundreds of years and doesn’t decompose, but it’s actually recyclable in ways. It’s really interesting, the research that’s been done, and how we can move into utilizing the fibre and the woods that need to be utilized, but at the same time, utilizing it for good purposes.
Some of the other things. There’s a great company up in Dawson Creek that’s making siding out of aspen. Aspen is not something that you typically see in a dimensional lumber mill. Another one is a place in Kamloops at the Domtar Mill. They’re making what’s called HardiePlanks. It’s fibre cement board composites that utilized…. It’s tough as cement, but fibre is used to make it. It’s interesting.
We also do have the Wood Secretariat that’s exploring lots of opportunities for value-added in the province. There’s quite a diversity. We want to ensure that while we’re supporting our existing value-added and ensuring that they’re going to get the fibre — and we had this whole discussion around cat 2, because there is quite a drive and demand for value-added — we also want to look at the new industry.
We know that…. The member has toured enough mills, I’m sure, to see how mills have developed over the years. We’ve moved away from…. Nobody’s pulling lumber on green chains anymore. They’re actually utilizing probably more computers in a lot of places. Everything’s all computerized. It’s modernized, and it’s also less labour. A lot of the value-added mills can be quite labour-intensive. It’s good for labour in the province. It’s good for ensuring jobs and good for utilizing our fibre in a way that it needs to be utilized. Its time has come. We need to move forward on it.
Quite supportive of value-added, and it’s a key issue for the Premier as well. He’s always talking about more value as opposed to more volume.
J. Rustad: The reason why I ask that question, of course, is that every government since the 1970s has talked about value-added and wanting to do more and all this stuff with timber, and it’s great, because quite frankly, we need to do more. We really do need to utilize the fibre.
What are the conditions that need to be in this province in order to attract new or innovative value-added products?
Hon. K. Conroy: There are, of course, the traditional aspects that attract attention in this province. We’ve got access to great power opportunities, clean energy. We’ve got skilled labour. Access to markets is good here. We have good transportation. Those are all the traditional things that, of course, will attract people to B.C. Then we have things like the Wood First Act, which you’ve noticed in the intentions paper. We’re going to be updating that to ensure that we utilize more wood in public buildings — for instance, mass timber. That’s part of the intentions paper.
There’s also CleanBC and the climate targets. That’s an enterprise that people want to enter into with us. We see more and more investors who are reaching out to B.C. because they want to invest in a sustainable market, and that’s a great opportunity.
The intentions paper brings certainty. It brings certainty in that licensees will have better relationships with First Nations and better tenure opportunities. Whole forest landscape planning is an opportunity, and then also the collaborative planning with First Nations and those partnerships, entering into those partnerships. Of course, tenure redistribution removes barriers that come when you want to invest, because there’ll be more tenure opportunities and more pathways for more tenure opportunities.
I think there are a lot of opportunities for people to come invest in B.C. I think, when you pull together all of these aspects from different ministries, it shows that people want to come here and invest.
J. Rustad: The minister talked, when we first started this conversation around the intentions paper, about the three main principles: the participation, stewardship and the social contract. The minister also talked about competitiveness as a key piece of the industry and that we need to make sure we’ve a competitive industry to be able to keep it healthy.
How does competitiveness play in to the opportunity of value-added as well as to the health of our existing industry? What steps are being considered, as part of the intentions paper, to make sure that British Columbia can be competitive?
Hon. K. Conroy: There are a number of reasons why we think that we’re leading the way. We’re leading the way on climate change policy, which is something that people globally want and need. We have a real focus on a competitive global atmosphere here in B.C. We’re getting more value from our fibre, which is really important. I mean, there has been some volatility in the sector, but I think we have been working with industry to increase the competitiveness.
We’re moving forward with the intentions paper, bringing in world-leading management policies. By modernizing our policies, we’re strengthening our social licence and doing that while also strengthening the partnerships with Indigenous Nations. Also, we have certainty in the province. We attract investment, as I’d said earlier, and we really do create conditions for competitive industry. Still, we have a really strong advantage because of the quality of our fibre, and it just completes the work that we are doing.
I think we also have world-recognized sustainable forests, and for that reason, the companies are doing very well. I mean, also, the market is doing really well. But I think it’s important to note, right now, that the lumber and panel products…. The panel producers are benefiting from historic high margins at current price levels. Several companies have posted record margins in Q1, just this year.
You think of someone like Canfor. Their net income is $428 million just in Q1 this year. West Fraser — $665 million. That hasn’t happened for years. In fact, I’ve been told by people that have worked in the industry for years that they’ve never seen prices like this, so it’s pretty incredible.
Also, the latest industry lumber forecasts from May estimate that lumber prices will remain above $1,000 a 1,000 board feet in Q3, 2021, and they’ll stay above $500 — so breaking even or better — through 2022. So the competitiveness is pretty solid in B.C. The companies are doing well, and we hear that whenever we talk to them, in the last little while. So we’re moving in a good direction.
J. Rustad: We’ve been having this conversation, and I have to admit that I have to disagree with the minister on this point. I’ve got to talk a little bit about the situation. I apologize. It’s the end of the day, and we’ve got to deal with this stuff. I mean, here’s the reality. Yes, the companies that are based in British Columbia are making record profits because of lumber prices, but every single one of those companies is taking their money and investing in another jurisdiction. They’re not investing in British Columbia.
There need to be mill rebuilds. They’re not doing that. They’re doing the capital investment they need to keep mills running, and that’s really a shame, because this is the exact time where we should be seeing companies wanting to reinvest because of this.
The reality is that our cost structure in British Columbia is high. I got some information from one analyst that figures by Q4, with the stumpage system in place, all-in cost for companies is going to be north of $600 to be able to produce 1,000 board feet. Now, that’s great if lumber prices are above $1,000. That means they’re still making dollars. But the projections are for lumber prices to drop down into that range. By Q1 of 2022, if that happens, if lumber prices are in that range, we’re actually going to see curtailments, because companies will start losing money with the cost structure.
Now, I’m hoping that doesn’t happen. I’m hoping we do see lumber prices be able to stay strong. But when you look at things…. For example, the minister mentioned Canfor and the profits Canfor made. Well, Canfor, of course, just made a huge investment down in Louisiana, $160 million investment notice in an environment down there where, by fourth quarter of this year, their all-in cost structure will be less than half. It will be 40 percent of what British Columbia’s cost structure is in terms of being able to have production.
When we think about an environment in terms of value-added and what we want to see within British Columbia, there was a report out a couple of years ago that said it takes 168 days longer just to build a warehouse in British Columbia than it does south of the border.
Municipal taxes on industrial property. I was talking with Aspen when they decided to shut down their mill in the Port Moody area and permanently close it. The cost to them for the industrial property was astronomical.
They got to the point where they just said: “We can’t make it work.” There was an environment where they really didn’t feel like they were welcome to even try to make it work there because of some of the challenges.
It’s well documented across the province that we have a shortage of industrial property in this province for building the kinds of investments that I think we’d like to see in terms of secondary manufacturing. So we’re in a situation where, yes, we’re fixing one problem — or we’re hoping to fix one problem, which is making more fibre available. I think that’s good. We have a great workforce. We’ve got a great place. We’ve got great fibre. But at the end of the day, capital needs a return.
You need to be able to have a return on investment in order for people to make the kinds of investments that are needed to see the value-added sector grow and to see the potential in terms of job creation. In order to do that when every other jurisdiction in the world is looking at the same thing…. Every other jurisdiction in forestry is looking at: how do we do things? How do we get value-added? How do we get more jobs? How do we create more opportunity?
British Columbia has an edge in terms of our quality of fibre. British Columbia has an edge in terms of our labour force. But British Columbia is well behind in terms of being able to be competitive on the measures that matter in terms of investment at board levels.
The reason I raise this and talk about this is that it has to be an important piece. In the 1990s, when there was talk about the jobs plan and all that kind of stuff, this was ignored. This piece was ignored. We weren’t able to drive the value-added, create those jobs and get more employment out of our fibre because of our cost structure.
In previous decades, other governments, including ours, all tried to do the same thing. We weren’t able to get into this cost structure where companies saw the value in making the investment in British Columbia. Like I say, there are a lot of factors that go into this competitiveness and being able to attract attention.
I applaud government in terms of wanting to move from volume to value, and I think we all need to get there, but there is this huge piece. We’re looking at every other aspect around the forest sector, but we’re not looking at that piece, and that’s a challenge.
There was a cost competitive initiative that the government, a couple of years ago, undertook, where they got industry together, and industry said: “Here’s what we think we need to do to costs.” Well, that fizzled out, and it didn’t produce anything, unfortunately, in terms of the results. It is unfortunate. They were looking for $30 a metre, I think, in terms of cuts. I think it was somewhere between 30 cents and $1.30 that was identified and found that might have been able to be implemented. It didn’t go anywhere else.
I think, as a suggestion or maybe as a question to the minister…. I know we’re just about out of time for our questions here for today, and we’ll be able to pick this up again tomorrow. But the question, really, to think about is: what can government do to address all aspects of competitiveness?
It needs to be there if we’re going to have the investment I think that, clearly, the minister wants and the Premier wants and I want in terms of the province. So how do we do this? What is it that government can do to set the stage, to set the table, to be able to attract investment? We can have a feast laid out on the table, but if we can’t get somebody to the table, they’re not going to be able to produce, I think, what we want to see in this province.
A friend of mine that had a great product…. We talked about all of these innovative products that are renewable and can come from using fibre. Well, he had this great idea for the types of trays that are used in cafeterias, made out of renewable products — fibre, utilized from wood. This person is from British Columbia. He thought: “Oh great, let’s see if we can set up a plant here.” After months and months, if not actually years, I think it was, he gave up in frustration.
He went south of the border, and within a couple of months, he had an unbelievable package put on the table that was so attractive. He just looked at it and went: “I can’t even consider going to my home province, where I want to invest and have the jobs, because we’re not competitive.” He built that plant down there and created, ultimately, about a $600 million investment, now, that this thing has driven.
That was an opportunity lost in British Columbia. It was an opportunity lost because we do not have the right environment to be able to be competitive, to be able to attract that kind of investment. So the question…. After going on this rant, I apologize to the minister around it. But there’s a reason why I asked about competitiveness, because all components of competitiveness need to be taken into consideration.
So the question to the minister is: what steps, in terms of the intention papers, and work is the ministry prepared to do to address our competitiveness and to be able to set that table to attract the investment into British Columbia and to be able to generate more jobs and more values and those reinvestments? Everything from the primary industry, reinvesting in the mills they have, through to attracting that new investment — how do we create that environment that is going to give us that edge when everybody else is trying to do the same thing?
The Chair: Noting the hour, Minister, I ask that you move the motion, and we can pick this up tomorrow.
Hon. K. Conroy: We definitely will be responding to the question in the morning.
Just to remind the member that I’m well aware of what happened in the ’90s. My husband actually sat on a value-added committee, and they toured extensively throughout the province and saw hundreds and hundreds of value-added companies. The majority got shut down after the new policies that were brought in, in 2003. I just wanted to make sure the member remembered that.
Hon. Chair, I move that the committee rise and report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:17 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF
AGRICULTURE,
FOOD AND FISHERIES
(continued)
The House in Committee of Supply (Section C); M. Dykeman in the chair.
The committee met at 1:35 p.m.
On Vote 13: ministry operations, $81,636,000 (continued).
The Chair: Before I recognize the minister, I’d just like to remind all members to please wait until they’re recognized by the Chair before they proceed to speak.
I now recognize the minister, as we left off with the member’s question.
Hon. L. Popham: I’m going to ask the member to repeat his question.
M. de Jong: Just prior to taking the break, I directed the minister’s attention to the document that I had provided with her dated March 18, 2021, which is identified as a briefing note for information. At the bottom is a ministerial decision note.
I directed her attention to page 2. I read into the record and quoted from that document, under the heading “Discussion,” the following passage: “The ALC is an independent administrative tribunal. The decision-making framework for the ALC is defined in section 6 of the Agricultural Land Commission Act — see appendix A — and does not include economic and social factors, including First Nations considerations. As such, First Nations considerations are not explicitly part of the ALC mandate.”
I asked the minister to reconcile that statement, that information, that position with the comments she made last week, which I referred to earlier today, where she directly and pointedly contradicted that information. When I made the proposition to her previously — that as a result of amendments that she and the government had introduced, the opportunity to take social and economic factors into consideration had been removed from the ALC — she responded by saying that was not so. I won’t repeat the quotes that I read from her submissions to the committee last week.
I asked her, in short, to explain how it was that she provided information to this committee last week that contradicts entirely and specifically the advice that she was provided with, not in general terms but in a note prepared with respect to this very issue.
Hon. L. Popham: First off, I didn’t contradict anything. My statements that I made last week hold true.
What I said was that the commission must consider agriculture. It must be considered in a way that it’s a priority. I did not say they must only consider agriculture. I said they must consider agriculture. That’s in the act.
I’d like to refer to the prior act, before the changes were made. The requirement for the ALC to prioritize agriculture in its decision-making was also a requirement in the former section 4.3. Section 4.3 required the ALC, when exercising its decision-making authority in the former zone 2 lands, to give priority to the purpose of the commission, set out in section 6, above any other consideration in that section.
I’d like to repeat that now the commission must consider agriculture as the top priority, but they mustn’t only consider agriculture. Every application is taken individually. The commission looks at every application as an individual situation, and that’s how they make their decision. There are other issues that come into play. They need to look at other factors when carrying out the mandate, making the decisions based on unique sets of circumstances that exist for each site and the evidence that is submitted by the application.
The member may want to know that there have been approvals, since that bill was passed, that make other considerations — for example, an expansion of a school to accommodate growing school children populations in the city of Chilliwack, in May 2021. The construction of a new fire hall in Thompson-Nicola regional district, in May 2019. The conversion of an existing, unused resort lodge and ten cabins into a treatment and support facility for first responders with post-traumatic stress disorder in the Okanagan, in September 2019. The construction of a temporary work camp, for two years, to serve employees working on the Department of Fisheries and Oceans’ Big Bar fish passage construction project, in January 2021. Approval of the widening and realignment of a 4.2-kilometre section of Highway 1 near Tappen, B.C., in January 2020.
There are many examples that I’ve given, and I’m sure there are more, where other considerations are given to applications. They’re looked at individually. I think what’s happened here is that the member has put a lot of effort into trying to prosecute his case. Unfortunately, the case is weak, and the member has failed in doing that.
M. de Jong: Happily, the minister is not the jury in this case. She may not like the decision that the jury of public opinion renders, but that will be for others to decide.
The note is wrong. I’m not making this stuff up. The minister says: “Yes, you are.” I’m reading from her briefing note, which reads as follows: “The decision-making framework for the ALC is defined in section 6 of the ALC act and does not include economic and social factors.” Is the note wrong? Is the briefing note incorrect? When I put that very question to her last week…. I’ll read it again: “The now-repealed provision of the act allowed for it to render decisions to preserve the agricultural land reserve and to take into account economic, cultural and social values.”
That’s no longer the case. That’s all I’m trying to establish. I asked the minister. “The ALC still has that discretion,” she says, with respect to social and economic factors. Her note says they don’t. It’s a pretty fundamental point, when there seems to be a direct contradiction between what the minister is telling this committee and what her own officials are telling her about the mandate of the ALC.
Hon. L. Popham: I have a $100 million budget for agriculture — $100 million — with many, many line items in it, and we’ve spent six hours going over the same exact thing, when I’ve just provided the member with proof that what he is trying to prove is wrong. The ALC has applications which are titled “non-farm-use applications.” In its very nature, it shows that other considerations can be brought in when looking at applications.
The member is absolutely wrong. We can spend the rest of the time in estimates going back and forth. The member is incorrect. I’ll repeat for the member, again, that agriculture must be looked at as a priority. It doesn’t say it must only be looked at. I’ve given the member many examples, and I’m sure there are many more out there.
I guess my question back to the member is: as we go back and forth, is this the best use of time in estimates? With $100 million, almost, in the budget of Agriculture, Food and Fisheries — a lot has happened this year — I would think that the opposition would be curious about how that money is being spent.
M. de Jong: I understand that the minister does not assign the same level of importance that my colleagues and I do to the manner in which the executive council interacts with the Agricultural Land Commission, nor does she attach the same importance to the impact of amendments that she and her government have introduced. That’s fine.
Happily, in the parliamentary democracy we inhabit, the estimates are a time for the opposition to draw attention to matters that are of concern or maybe of interest to the public. Whilst I am happy to know that the minister does not deem this to be a valuable expenditure of time, I differ in my opinion of that matter.
Interjection.
M. de Jong: I’m happy to…. The minister seems to have much to say. I’ll let her say it.
The Chair: Members.
Member, continue your question, please.
M. de Jong: It seems she has much to say but not on the record, Madam Chair.
The note that we’re discussing — the note that says, “The ALC does not include economic and social factors, including First Nations considerations” — appears to have been signed off by a director, an assistant deputy minister and the deputy minister. Is that correct?
Hon. L. Popham: Yes, that’s correct.
M. de Jong: On page 3 of the note…. And by the way, the title on page 1 is: “Agricultural Land Commission: ALC Decision Regarding Carrier-Sekani First Nations Treatment Centre.” Just to confirm, it was a note prepared with reference to that particular matter.
On page 3, the note identifies three options, and those options have been severed from the document that I have and have provided to the minister. What were those options?
Hon. L. Popham: This note was information for me, and some of that information was confidential.
M. de Jong: I understand that. It is now the subject of a discussion between the minister and I at this committee relating to an issue that is of great concern to many, many people, involving the desire to construct a treatment facility by the Carrier-Sekani Family Services agency. It’s a project that there is universal desire to see occur, and the minister apparently had three options identified for her as to how to proceed. Am I to understand that her position today is that she is unwilling to share any of those options with the committee?
Hon. L. Popham: I’ve said this previously, but I’ll repeat it for the member. I’m not going to be drawn into a conversation about an application or a situation that’s before the Agricultural Land Commission.
M. de Jong: We’ve already established that the document we are talking about was prepared with respect to an application that was ruled upon. Again, I simply want the minister to confirm on the record, if she will, that with the level of interest, the desire to find a solution, she has been provided with three options on how to proceed, but her position is that she is unwilling to share any of that information with the committee today.
Hon. L. Popham: The information was redacted for a reason. We have freedom-of-information legislation that’s in place. But I will repeat again that I will not discuss a situation or a topic that is before the Agricultural Land Commission currently. There is an active application. The member continues to try and draw me into a conversation, and I’m not going to do it.
Any more questions regarding the Carrier-Sekani issue I won’t be responding to.
M. de Jong: I have another document I’d like to send over to the minister. The document is labelled at the top: “Brief Update Re: CSFS.” The first date I see on it at the top is March 23, 2021. It appears to be an email. It’s from Don Bain. Can the minister just confirm for the committee who Don Bain is?
Hon. L. Popham: Don Bain is the deputy chief of staff to the Premier.
M. de Jong: In the document, attached to the email from Mr. Bain, is an email from Sam Godfrey, who I understand from the document itself is the senior ministerial adviser to the Minister of Agriculture. That appears to have been the case on March 23. Is Mr. Godfrey in the same position today?
Hon. L. Popham: He is my senior ministerial adviser.
M. de Jong: That is what the indication on the document is. So that hasn’t changed. The minister is indicating that it has not changed.
Hon. L. Popham: That has not changed.
M. de Jong: On March 23, he wrote this email to Kelly Newhook: “Hi. MLP was able to speak to the RDBN chair this afternoon.” Then there are redactions. “Attached is the note MLP had for the meeting, as an FYI, but she didn’t need to go into all of the detail.” There’s more. I won’t quote further.
I’m assuming MLP is the minister, but perhaps she could confirm that.
Hon. L. Popham: Yes, I am MLP.
M. de Jong: I thought that was the case. The line that attracted my attention in this email is the one that said: “Attached is the note MLP had for the meeting. She didn’t need to go into all of the detail.” I just briefly wanted to try and reconcile that with something the minister said last week. She said to the committee: “The member’s binder is the first time I’m seeing anything….”
On the surface, that seems inconsistent. The minister last week I think wanted to convey to the committee that all of this was material that she was seeing for the first time, and there’s an email indication that speaks to the notes that we’ve been discussing as something that the minister had for the meeting. Can the minister explain that apparent inconsistency?
Hon. L. Popham: I think what I was referring to were the documents in the binder. I hadn’t seen those documents, that I could recall.
M. de Jong: All right. Thank you. But the minister is not disputing the reference in the email to the documents that she was provided with around this specific issue on March 23.
The Chair: Just a reminder to members to please keep your masks on in between speaking. Thank you.
Hon. L. Popham: Which document is the member referring to?
M. de Jong: Well, I’m referring to the email document that I just provided to the minister. It would be for her to elucidate to the committee as to what was being referred to in the document, in the email itself.
I understand the minister’s…. There seem to have been a lot of documents floating around the minister’s office on this matter. So that’s why we’re asking for her assistance to describe the ones she apparently had specific access to.
Hon. L. Popham: It’s not exactly apparent to me what documents are being referred to. I don’t know.
M. de Jong: Well, as I say, I can appreciate the confusion, because the minister apparently had access to a whole variety of documents. Let’s deal with one of them that apparently was attached to this email and, according to the email, one that she had relied upon specifically.
On the second page of the document I just provided to the minister, near the bottom, is the line: “We’ve looked at the problem carefully.” And, again, I should emphasize that these are notes that were prepared specifically with respect to the family services agency application. “We’ve looked at the problem carefully, and the fastest and most efficient way to try and resolve….” And then it’s redacted.
Now, the minister, a few moments ago, basically took the position: “If it’s redacted, I’m not telling anything. I’m not saying anything to the committee.” And she may do that again.
There is a project which was the subject of this application that the government, the minister, various ministries and the Premier’s office have been directly involved in, and the minister was provided with advice about what was termed “the fastest and most efficient way to try and resolve.” Well, I am interested, and I think everyone, the Carrier-Sekani, are interested in what the government believes the fastest and most efficient way to try and resolve this issue is. And I’m hopeful that the minister will share that information with the committee.
Hon. L. Popham: Again, I think the member continues to try and draw me into a conversation about a situation that is live right now before the Agricultural Land Commission. He’s trying to build a case out of nothing.
We all know that there is an opioid crisis happening. We have a Minister of Mental Health and Addictions that’s trying to find every avenue and every tool in the toolbox to try and deal with that. You would expect, I believe, the government to be talking about every option available to them. I don’t understand why that would be such a problem to the member. I would assume that his own caucus is talking about that as well. It comes into question period a lot.
It’s an issue that is live to all of us right now. It’s close to all of us. Almost everybody has had somebody that they know that’s been affected by it. So of course we’re talking about it non-stop.
M. de Jong: To be really fair to the minister, more than just talking about it…. On March 23 of this year, the minister and her team, in a document entitled “Key Messages: Carrier-Sekani treatment centre….” They had more than just talked about it. They had settled on what “the fastest and most efficient way” to try and resolve the issue was.
I hope the minister isn’t shocked that I, the opposition and people would be interested to know what the government believed, on March 23, a fast and efficient way to resolve the issue was.
Hon. L. Popham: The member will know — he was once a minister — a lot of information comes through. There are a lot of information notes. It’s not all relevant to the situation, but ministries provide as much information as they can when requested.
I guess I’m confused at the problem. There’s an information note that we’ve already discussed. We’ve discussed, over and over again, that there’s a live application before the Agricultural Land Commission. But the member doesn’t seem to worry about that. He continues to try to draw me in. He’s making statements about my thoughts which are untrue. He’s trying to build a case which isn’t there. It’s a weak case.
Of course the government is looking at every option on how to approach the opioid crisis. How could that be so shocking to the member?
M. de Jong: Not only am I not shocked; I am inviting the minister to share the fruits of her labours with the committee.
A decision was rendered with respect to an application on February 26 that denied a group the opportunity to address that crisis through the construction of a treatment facility. The minister was clearly seized of that matter. It attracted a lot of negative attention.
Her and her officials identified…. Prior to the submission of a subsequent application to the ALC, the minister and her government identified what they termed to be, they identified as, the fastest and most-efficient way to try and resolve. The minister, apparently, doesn’t want to disclose what she and her government believed the fastest and most-efficient way to resolve this dilemma was.
I’ll provide the minister with one more opportunity to provide that information. I’m not optimistic. She has, apparently, drawn a line in the sand and, for various reasons, said that’s not information that the committee or the public is entitled to.
There’s nothing I can do about that. I can provide her with the opportunity. I can reinforce the notion that the government, on March 23, had what it thought was the fastest and most-efficient solution at hand. She is unprepared, apparently, to share that information with the committee and the public, but I’ll give her one more opportunity.
Hon. L. Popham: I’m going to decline to comment for the same reason I’ve mentioned over and over again. There is an active application before the Agricultural Land Commission. Me discussing issues of what I think is the fastest, the best or whatever, at this time, with a live application, could be perceived as interference. I’m not going to do it, as much as the member would like me to interfere.
I don’t know what the member doesn’t understand about our responsibilities as MLAs around an independent tribunal. I’m not sure what he doesn’t understand. The only thing that I can come up with is that when he was in government, things were handled differently.
We are not going to discuss the application before the ALC or any of the details around that application. There’s a live application. That should speak to the member right there.
M. de Jong: As always, grateful to the minister for her tutorial on the proper operation of a quasi-judicial body. I think we’ll take just a few more minutes to explore the degree to which she has abided by those admonishments.
I’ll pass over a few more documents. These are the Blues from the last day. The one on top refers to an exchange we had about a letter that the deputy penned and sent and ultimately ended up before the Agricultural Land Commission.
The question that was posed to the minister was: “Was the minister aware that the letter was being sent?” She replied — fairly directly, in fairness — and said: “No.” That was her answer.
I’m going to send one more document over. The document I’ve just sent over, again, is another email. This one is dated April 8, 2021 — I guess times on these things are now important — at 12:13:05 p.m. from someone named Jason Craik. It was sent to Alissa Brandt. There was an attachment, apparently, described as “draft letter ALC, re: CSFS5.docx.” Then, below that, the line: “Letter that AFF DMO intends to send shortly to the ALC board and chair. I have no issues with it.”
Then, a little bit further down from there, a subsequent email from Sam Godfrey — again, Mr. Godfrey, whose position with the minister has been described — April 8 at 11:54 a.m. That appears to be an email sent to the minister’s own email address. I can’t use her name, but it’s her name and then what appears to be her government email address. “Forward: clean copies.” Then, from Mr. Godfrey, the question: “Any concerns?”
To summarize, what we seem to have here is an email chain that refers to a draft letter from the deputy to the Agricultural Land Commission regarding this matter that we’ve been discussing, which was provided by her chief assistant to her for review. Is that all accurate?
Hon. L. Popham: I don’t know what letter this is referring to.
M. de Jong: In response to the message from her chief senior adviser, I think, Mr. Godfrey, did she have any concerns?
Hon. L. Popham: I just want to correct the record. The member is implying that my deputy wrote a letter to the ALC board and chair. I think he’s implying that. But my deputy wrote a letter to the Carrier-Sekani. So I’m not clear on what this letter is or what this is referring to. My deputy’s letter went to the Carrier-Sekani.
I’m going to say it again, and I’m going to say it for the last time. I’m not discussing an issue that’s before the ALC. The member can stand up and ask more questions if he wishes, but on the record, I’m stating I won’t be answering any more questions about a live application at the ALC.
M. de Jong: Just so the minister is clear on this — and she, I suspect, recalls this from her days toiling, as we do, in the opposition trenches — one makes a request for relevant documentation pursuant to the rules of FOI and the pertinent legislation, which was done here. Documents were provided.
I’m asking questions about those documents. They are not documents that I have conjured up. They’re actually documents that her office has sent. So when she says, “I don’t know what the member is talking about,” well, they’re documents from her office.
What we have is a document that refers to a draft letter to the ALC: “Re: CSFS letter that Agriculture Ministry DMO intends to send shortly to the ALC board and chair. I have no issues with it.” Was there a draft letter?
Hon. L. Popham: What the member has given me is an email exchange about a letter. He’s implying that a letter went to the Agricultural Land Commission board.
We’ve checked with the ministry office. There is no record of a letter that left from my deputy to the Agricultural Land Commission board. We’ve checked with the Agricultural Land Commission. There is no record of them receiving a letter from my deputy.
M. de Jong: If over the course of our discussion I have inadvertently put words in the minister’s mouth, I apologize unreservedly. That has not been my intention, and I have strived not to do that. I hope she will extend the same courtesy to me.
I’ve implied nothing. I’ve asked questions about a document. It’s the minister who seems to be jumping to conclusions. I’m not sure what she would have us conclude confronted by a document that says…. I’ve concluded nothing. I have merely asked about an email exchange that begins with reference to a draft letter to the ALC about a particular matter and that says this is the letter that the deputy intends to send to the ALC board and chair.
The minister has said: “Well, we can’t find a record of that letter.” Okay.
The minister has gone to great pains over the last number of hours to make this claim of non-interference and the sanctity with which that principle is held. There is a growing body of evidence that the commitment to that principle is a little more selective than the minister would like to lead on. A document like this, referring to a letter that was prepared for transmission to the ALC board and chair about a particular matter, is pretty strong evidence.
The minister shakes her head. “Nothing to see here.” All right. If that’s her story, she can stick to it. “Nothing to see here,” the minister says.
She was asked, by the way, by her senior ministerial assistant, her senior MA, whether she had “any concerns about a clean copy of a draft letter that had been prepared for transmission by the deputy to the ALC board and chair.” Did she have any concerns?
The Chair: Members, just before I go to the minister, given the nature of these questions, I want to remind all members to be mindful of the sub judice convention as debate on Vote 13 continues. Thank you.
Hon. L. Popham: I don’t recall having any concerns about a letter that wasn’t sent.
M. de Jong: Well, that’s a remarkably, delightfully clever answer, but it does beg a follow-up question. Is the minister saying she had no concerns when presented with a letter…? It sounds like what she’s saying is that she had no concerns about a letter that had been prepared with a view to being sent to the ALC board and chair about a particular application, under the signature of the deputy minister. If that’s what’s she’s telling the committee, then that’s informative. She’s saying she had no concern about that.
Hon. L. Popham: Madam Chair, after this, I wouldn’t mind having a quick recess.
My response to the member is that we’ve investigated. There was no letter. There was no letter that was sent. There was no letter that was received. Did I have any concerns? I don’t remember. We don’t even have a letter to refer to. I don’t know what this is referring to.
The member continues to build a case on facts that he’s making up. He doesn’t know either, but he’s certainly trying to build a case on it. There are no facts to go with the accusations.
Again, that’s it. I’m not talking about it anymore. We’re now just trying to discuss a document where we have no idea what it’s about.
The Chair: The minister has requested a recess. We do have a changing of the Chair at 3 p.m., so I’m going to call a ten-minute recess now. If everybody could please return and have their cameras back on at 3 p.m.
The committee recessed from 2:50 p.m. to 3:03 p.m.
[A. Walker in the chair.]
M. de Jong: We’ve canvassed a lot of this. I have endeavoured to express some queries and concerns. The minister has said, in a variety of ways, that my expressions of concern are unfounded. A document that refers to a draft letter from the deputy to the ALC chair and board, around a particular matter that now is very much under consideration, that had been ruled upon at the time the letter was being considered and that she had been asked to comment upon — none of that should provoke any kind of inquiry or concern on the part of people or of the opposition.
What we do know from earlier exchanges — because we actually have the letter — is that a letter was ultimately sent by the deputy, knowing that it would be part of the file that went to the ALC as part of the package from the regional district, professing support for the project on behalf of the entire Ministry of Agriculture, despite the ministry having earlier provided commentary, on an earlier application, expressing concerns around the application.
I guess the question that, in a general sense, people are entitled to hear the minister’s response to is: what do you have to do to get a letter from the Deputy Minister of Agriculture supporting an application — what’s the threshold; what’s the test — or even, apparently, the preparation of a draft letter to the ALC itself?
I hope the minister understands why people would be curious about that — that in all of her protestations about the independence of the ALC, apparently some applicants, in certain circumstances, are able to get a very specific expression of support that is intended to land in the lap of the ALC.
That’s my question to the minister. How do you get one of those letters if you’re an applicant? What qualifies an applicant for one of those letters?
Hon. L. Popham: Any answer I give to the member’s question is really drawing me into an application that is live before the Agricultural Land Commission. I can’t make a comment on the letter. If I do, it’s interference. That’s my final answer, Member.
M. de Jong: There’s a remarkable irony in that last answer, that in addressing an issue that, in and of itself, strikes most reasonable people as an act of interference, the minister would say to comment is to interfere.
Well, let me perhaps pose this question that has nothing whatsoever to do with the application that has engaged our attention. Has the deputy or the minister written a similar letter of support on behalf of any other application?
Hon. L. Popham: We would need time to check the records.
M. de Jong: I would be grateful if the minister would do so and provide a report. I am, quite frankly, troubled by the answer, because it suggests that the minister cannot say with certainty that letters professing support for a particular project in application have not been written on behalf of the ministry previously.
It appears that the minister’s view and position is that there was nothing untoward or problematic, and there is nothing untoward or problematic, about circumstances in which the No. 2 ranking individual in the ministry writes letters articulating support for a project, knowing that the letter is intended for inclusion in a dossier that will be before, and is required to be in a dossier before, the Agricultural Land Commission. The fact that the minister is obliged — I appreciate her honesty in the matter — to tell the committee that there may well be other such examples out there is, I think, very telling.
I have a sense, from some of the minister’s commentary, that she has not viewed this as a particularly worthwhile exercise. She is certainly entitled to that view. I, on the other hand, and I think many others, have found it most illuminating and most revealing about the conundrum that has been created by some perhaps well-meaning amendments to legislation that have created a circumstance in which applications that virtually every single British Columbian would find reasonable and worthy of support are precluded from moving forward.
The minister insists that those challenges have nothing to do with the changes that she and her government made. Documents from her own ministry, I would suggest, paint a very different picture and confirm that those changes have very much influenced the challenge that this and other applicants have faced. We’ll continue to disagree on that point.
Interjection.
M. de Jong: Well, the minister will have her moment to rebut. She hasn’t been hesitant to do so. In addition, when she does, perhaps she will make one last attempt at explaining to people who have an interest in these matters how it is that an applicant obtains a declaration of ministerial support at the hand of the deputy minister, how it is that, at one time, there was a document to be sent directly to the ALC board and chair. We don’t know what happened to that document. All we know is that there’s no record of where it went, beyond the approval that it apparently received from the minister and others within the office.
Perhaps she’ll also explain to those that might be interested what the process and procedure is for obtaining from the government a letter indicating its willingness to pass an OIC excluding land from the agricultural land reserve. Of course, in this exchange, we also reviewed documentation to that effect — where it was put on the public record that the government was prepared to go down that route. Apparently, it has not done so to this point. But the relevance of that as a signal of the government’s preferred outcome with respect to this application, I think, speaks for itself.
I’ll end where I began, and that is that the interest in this was provoked by the realization that a group wanted to advance a project that was much needed in the community, the Carrier-Sekani Family Services agency, for reasons that are well known.
I will repeat again — lest my criticism of the government be misunderstood — I have no doubt that there is enthusiastic support within the ranks of the government, as there is within the ranks of the opposition, for this project itself, which makes it all the more frustrating that it has been unable to proceed.
I have offered up my view, in this case, of why that is and how, confronted by that dilemma, which I have characterized as one of its own making, the government has gone to great lengths to try and find a backdoor solution that would address the issue. The material we have seen — the documents, briefing notes, emails — I believe all paint a very clear picture of what has taken place.
I will end simply by saying this. For all of that, I remain hopeful that this project will receive the approval it requires to address the needs and the treatment needs of a community. I know that is the hope of my colleague, the official opposition critic, and the hope of my colleagues who represent the area, including the Leader of the Opposition.
I am, despite what she may think, grateful for the opportunity to have engaged in this exchange with the minister, to the extent that she has been prepared to do so — her willingness to provide answers to my questions.
I. Paton: Just before we wrap — I think they want to move on to the next set of estimates — I want to thank my colleague from Abbotsford West. I’d like to thank the Minister of Agriculture and her staff for their time and putting in a pretty healthy three days’ worth of questions and answers. So thank you.
Before we go, I’d just like to pass along some written questions from my colleague from West Vancouver–Sea to Sky regarding some aquaculture items. So if I could pass these along as written questions before we go.
The Chair: Seeing no further questions, I ask the minister if they would like to make any closing remarks before I call the vote.
Hon. L. Popham: This has been an interesting set of estimates that we’ve gone through. I absolutely am willing and able and encourage any discussions that come through during this time. I would have to say I’m quite disappointed that we spent six hours or more — I’ve lost track of time — on one issue when we have almost a $100 million budget before us. We have pressing issues and the most public support that we’ve ever had, I believe, around local production, local food security, food security for British Columbia. It’s unfortunate that we got very little time to discuss those things.
That being said, I’m really proud of the budget that we’ve put forward, and I look forward to the projects that we have underway. I would offer to the critic that our door is always welcome for any briefings that he may want to learn about how almost $100 million is being spent in this province on agriculture, food and fisheries.
Thank you very much.
The Chair: Thank you, Minister, and thank you all, Members.
Seeing no further questions, I will now call the vote.
Vote 13: ministry operations, $81,636,000 — approved.
Vote 14: Agricultural Land Commission, $5,001,000 — approved.
The Chair: The committee will now take a five-minute recess while we prepare for the Ministry of Health.
The committee recessed from 3:23 p.m. to 3:28 p.m.
[A. Walker in the chair.]
ESTIMATES: MINISTRY OF HEALTH
On Vote 32: ministry operations, $23,725,698,000.
The Chair: Minister, do you have any opening remarks?
Hon. A. Dix: Just very briefly. These are unusual moments, I think. This is the first time I’ve sat with the member for Prince George–Mount Robson, the Leader of the Opposition here, in 15 years. It’s the first time we’ve seen each other in person, in a room, in a very long time — I think since February 2020. We’re talking about seniors care, principally, today, and seniors.
In the intervening period, a lot has happened in all of our lives. I just want to pass on my real condolences and the sense of loss that I know the Leader of the Opposition has had. I know it was a year ago, on June 6, that she lost her husband, I believe. She was recognizing that this weekend. I think in that, we can see the losses that so many people have had, personally — all of us here.
I’m here with Steve Brown, the Deputy Minister of Health, who’s waiting for some exciting news in his family’s life and isn’t as much a part of it as he’d like to be; and Dr. Bonnie Henry, who has been through so much on behalf of all of us. All of the health care workers, all of the people who’ve lost loved ones…. This has been an extraordinary year.
I’d just say to the Leader of the Opposition…. I try, whenever we discuss these issues, to keep that in mind — to keep in mind, when we get emails that are sometimes critical of us, the experiences that people have had in this time, which has been, I think, profound in ways that we don’t understand. Sometimes people express that through anger, but often that reflects pain that we do not understand.
I think what I try and do — successfully sometimes, not so successfully other times, as the deputy minister will say, when we’re trying to work together on things in a very tense atmosphere — mostly successfully is…. I think British Columbians have worked together well as a team on this, and I include the Leader of the Opposition in that. She took responsibility for some of my file last year at an important time.
I can tell you that when I asked the then member for Kelowna–Lake Country if members of the opposition would be prepared to help us on seniors issues, in community, there was no hesitation from him, no hesitation from the hon. member. I don’t forget these things.
We’re going to have a debate. It’s absolutely legitimate for the opposition to disagree with actions we’ve taken on any number of issues. But I’m very respectful on this side.
I apologize for being a little more emotional than usual, but it’s unusual to have people in the room to see this and be here. It has been a long time. For us, this has been our life for a long time, too, this debate in this place. It’s a significant moment.
I want to acknowledge the Leader of the Opposition and the leader of the Green Party, who will be with us.
For people listening to us, we’re going to be debating seniors care today. Next week, when we do the long debate on health care, which will go multiple days, the Leader of the Opposition will be debating with the Premier in another room of the Legislature. That’s why it’s being done in this way.
I want to express and welcome the Leader of the Opposition. I look forward to answering her questions.
The Chair: I now recognize the Leader of the Official Opposition.
Do you have any opening remarks?
S. Bond: I do. I want to begin by expressing my gratitude to the minister for his comments and also for his kindness and compassion. He was very quick to reach out to me personally during what has been the most difficult year of my life. There’s no doubt about that. I’m very grateful for that.
I have been overwhelmed by the compassion and kindness shown to my family over the last year. I know that that characterizes how British Columbians have reacted, for the vast majority of people who’ve suffered loss in this last year.
I also appreciate the comments of the minister. I will say this. The minister and I have had a long working relationship, and I have developed a great deal of respect for his efforts. I often have said to the minister that he took his time in opposition and did all the right things getting ready to actually take the seat he now has.
One thing I do know: the minister knows his files well. So I’m hoping…. We don’t have a long period of time to talk about what I think is a critical topic, and that is the care of seniors in British Columbia. It is absolutely essential that we have some conversation about that.
I also want to, just for a moment, reflect on something that the minister has talked about today. This is a place of debate. It is a place where hard and, at times, uncomfortable questions are asked. That’s exactly the way this process is designed to work. It doesn’t mean that it can’t be done respectfully.
I have a job to do with my caucus as well. I know that we’re just beginning the journey through Health. There will be a lot of hours spent with other members, including our Health critic and other segments of the Health Ministry.
I’ll just close with this, and it’s a personal observation. Then, hon. Chair, just to give you a heads-up as to where I’m going, the member for Penticton…. I’m going to have him…. He has a question he wants to ask. I thought we’d start with that. Then we’ll work our way through. Later this afternoon….
To the minister and, obviously, Dr. Henry, I want to express, also, my gratitude. I can’t imagine the personal strength that it has taken for you to manage British Columbia through this very difficult time. So I do want to express my respect and gratitude. I can’t imagine how difficult it has been for you.
Also, to Stephen Brown, I know how the ministry is such a huge responsibility. I also have appreciated the conversations that we have had over time.
I’ll just let you know that the member for Penticton has a question.
I do want to say this, though. This is one thing I appreciate about the minister, and I think it’s really important that members in this place take every opportunity to remind each other that everyone comes here with the right motive. They come here because they care about British Columbians. They care about women’s issues. They care about child care issues. They care about seniors in British Columbia. How we approach those issues may be different, and that’s the subject of debate. It is not about who cares or who doesn’t.
I can assure you that every member of my caucus cares deeply about health care outcomes, about seniors in British Columbia, about women in British Columbia. Any other suggestion to the contrary is unfortunate, in my view. I know the minister understands that. He has been incredibly respectful in our dialogue and, throughout the pandemic, has taken every opportunity to pick up the phone or have me reach out to him and receive briefings from Dr. Henry, and Stephen as well.
I want to begin this discussion by saying, yes, there will be difficult questions, but they are not meant in any way to undermine the desire that all of us have to serve British Columbians to the best of our ability.
With that, Mr. Chair, I thank you, and I would cede the floor to the member for Penticton.
D. Ashton: On a personal note to the three of you individuals, I would like to thank you very, very much for the incredible burden that you’ve had to shoulder for this province and the citizens of this province, and for the exemplary job that the three of you have done under some incredibly trying circumstances.
To make the questions quick — there are actually three — what I would ask is that maybe your response, because time is of the essence…. The first question. There’s a Chinese company, Anbang Insurance, that owns various seniors homes in British Columbia. There have been some issues in these homes. The issues have been tried to be addressed, although I’m quite sure we’re not there yet with some of them. If I could get a status report on the direction that the province or the ministry is looking at, with the outstanding issues that are in some of these homes from the owners of Anbang.
The second question. Wage parity levels were brought up for for-profit and not-for-profit with those…. I’ll say “facilities.” Those are homes that are run by health authorities. How long will that last? Is there going to be a permanent fix?
The third and final one is on the CCAs, the comfort care aides. It’s my understanding that many of them are hoping to get fast-tracked into the care aide program. I would just like to know where that stands at this point in time.
If I could get an answer in the future, that would be good. Once again, thank you to the three of you for a job well done, so far, under very trying circumstances for everybody. Thank you again.
Hon. A. Dix: Thanks to the member for all his work, especially on seniors issues in Penticton and Summerland. Members will know that he and I are in regular contact, especially about issues involving Summerland Seniors Village. As you will know, the Summerland Seniors Village was put under administration by Interior Health — one of, as the member has suggested, four Retirement Concepts facilities across B.C. that were put in those circumstances on the recommendations of health authority medical health officers.
In the case of Summerland Seniors Village, it has been extended two times now, until July 15, 2021, when it will be reviewed again. A new director of care did start in mid-April of 2021. There has been, in that period — on January 21, 2021 — one critical infraction, but the site is now accepting new admissions — which, I think, is an important milestone for it. In the case of the four Retirement Concepts facilities, I’d say to the hon. member and to the Leader of the Opposition, in the case of the other three, there’s good work done by Retirement Concepts.
They are a very significant owner of long-term-care facilities in British Columbia. Because of good work done by them, the facilities in Comox, the facilities in Nanaimo and the facility in Victoria are now no longer under health authority administration, and that is the goal here. The goal is to improve the standard of care and to address the issue that caused medical health officers and health authority boards to take these extraordinary actions, and they are extraordinary.
If you look at the history of these measures, since the current act was put in place and the measures in the current act were put in place, less than ten times have those ever been invoked. The majority of those times were with Retirement Concepts care homes, so they had some work to do, and they have done some of that work.
I’m not going to comment on what will happen as of July 15. But the next day, I would say, for the hon. member to look at is July 15 of this year, because that’s when the administration was renewed too. It’s our hope, and it’s our aspiration that we’re going to get to the point when that’s no longer required with respect to Retirement Concepts.
With respect to the single-site order, that was put in place first, essentially, under provincial health order and some medical health orders in health authorities and then became provincial policy. As the member would expect, it’s extraordinarily important in that it essentially ensured that individuals who were working at multiple care homes would just work at one — the idea of the single-site order. It was combined to make it effective.
The reason it was effective in B.C. and not in other jurisdictions, I would argue, is the considerable investment. It was estimated, at the time, at about $165 million to put in place a single-site order. I think the actuals are closer to $140 million. I’ll get them for the hon. member.
It’s our intention to continue that once the health orders are taken off, at some point, whatever point that is — to continue the principle of the single-site order. That’s part of the work we’re doing with contracted providers in the whole health system now. The idea, I think, of lifting and having the competition that takes place for new contracted providers be on the basis of the care that’s provided and not on a competition around the salary paid to people — I think that’s a good principle.
The single-site order is an advancement on that. There’ll be a debate. There’s always a debate on these things, but I think that’s a useful model. It’s also useful at a time when we need to recruit more and more people to be health care workers. Taking that out of the equation, ensuring everyone meets a base level of compensation for work that’s incredibly valuable, is useful. I have appreciated the support, I think, of the opposition for the single-site order and its principle — and, I think, the support from the hon. member that’s implied in his question.
With respect to the third question, I don’t have that. What I will do is I’ll report back to the House. What I’ll try and do consistently rather than spend a lot of time delaying the debate, is if I don’t have an answer immediately, I’ll report back to the House and provide that information — before the end of estimates, certainly, but probably at the start of the next day of estimates or the next period of estimates.
S. Bond: Just to sort of finish the road map for most of today, I have also invited the Third Party to participate just before six o’clock, so the minister is aware of that. We’ll see how the rest of our day shapes out.
I want to start with the service plan. Of course, we’re focusing on the seniors component. I noted that one of the key strategies, when we look at objective 1.2, is — and I certainly agree with it — about ensuring that seniors receive, and I quote for the minister: “quality, culturally safe and appropriate care.”
Could the minister perhaps give me some sense of what specific funding or resources would be attached to that objective? We know that it’s absolutely essential that there be culturally appropriate care for seniors in British Columbia. I’m just curious as to what specific resources or actions the minister might be considering when it comes to that objective.
Hon. A. Dix: On the issue of quality, I think it starts with care standards. You’ve seen that from the beginning of my time as Minister of Health, where we have sought to increase overall care standards to more than — and now we’ve achieved it in all five health authorities — well beyond, the standard of 3.36 hours per resident day of care, a portion of which is nursing care, a portion of which is allied care, per resident, per day. I think that’s an important consideration that we meet that standard.
There is, by the way — because this is, hopefully, a significant debate about what we’re going to do in the future — a national debate around these questions. There are people who feel that 3.36 is insufficient. But that’s the care standard that we’ve been operating under in B.C., roughly since 2008.
That was particularly important, I’d argue, for our contracted providers. At the time when I became Minister of Health, it was about 3.11. I think, at the end of the 2016-17 fiscal year 3.11 was the overall standard. But for private contracted providers, it was closer to three. For the public providers, it was closer to 3.3. Those represent one-third. The other represent two-thirds.
Almost all of the money for that initiative went to private providers. It didn’t go to the providers. It went to raise care standards for the residents, who, generally speaking, don’t have a choice about where they go. They get the choice of three care homes, but many, many, about 22,000, of those residents, are living in contracted providers, and the rest are living in health authority–owned and –operated.
The key is to maintain and increase care standards. That doesn’t just involve money. It involves people. That’s why we have to continue aggressively around the province, because this is going to be a challenge. I think we’ll inevitably — if not today then next week — talk about how we meet the human resources demands of health care, particularly in the north and the Interior. That is, I think, one of the significant challenges facing public health care in the next 20 years — that challenge in general, but particularly in the north and the Interior.
When we talk about that, we’re talking about maintaining and addressing those care standards. To what end? One of the profound challenges, I think, of the COVID-19 pandemic has been the effect it’s had on residents in long-term care because of the very significant limitations that have been put on visitation. This affects, in some cases, people’s care. Let’s face it. People who go in and support their loved ones, their friends and their families in care are a considerable part of the care. It’s not just the social value of visitation, whose value is incalculable, but also, I’d argue, the actual care value of that.
One of the things I believe is that we have to make life better. So much of what we spend money on in long-term care is keeping people safe, making sure people don’t wander, especially with the majority of residents living in long-term care living with Alzheimer’s or other dementias. But what’s critically important to me is the quality of life in long-term care and how we address that, how we address the social aspects of that life. When all of our other facilities to do things have gone away, how do we address that under those circumstances?
Many people living with dementia are otherwise quite physically well. What is that life, and how do we allow people not simply to be bedridden or not be able to move around? Hence, the need to develop more dementia villages. That’s something that, because it’s a major capital investment, will require time, but we’re making some progress on that.
Secondly, it’s the quality of food. If one has eaten…. In terms of the culturally sensitive part, I think food is important in that. Often families can provide some of that care, but I think we need to remind each other — and I’ve been reminded a number of times of this, especially when we made changes in visitation — of the sheer number of people living in long-term care who receive no visitors, whose family is the staff in long-term care.
What’s critical, if you’ve lived a life where you’ve eaten only certain kinds of foods, is to try and find diversity within our care homes. Difficult to do. Sometimes expensive to do. Sometimes impossible to do. That’s why, in Surrey, the Progressive Intercultural Services Society is developing a long-term-care home that will be responsive to the whole community but, in particular, the South Asian community. Organizations such as SUCCESS and others have been successful in doing that. We have to find ways to do that.
Those are important initiatives, but we also have to find ways…. For example, Lakeview centre, which is a private contracted provider in my riding of Vancouver-Kingsway, near Trout Lake, provides a lot of diverse sorts of food. It’s challenging. It’s challenging as we go through our lives. Those of us who learn multiple languages often come back to our only language at the end of our life. So that’s a challenge.
Providing opportunity. That’s what I hope we do when we add staff in long-term care — opportunities to enjoy life. Not just live longer but live better. That, I think, should be central to how we think about long-term care, why we need to, of course, develop supports in the community so that people are not having to go to long-term care but not giving up on that aspect, because people arrive in long-term care at the end.
Those are some of the considerations, when I think about it. Of course, keeping people safe; of course, ensuring that they have good medical care; of course, giving them supports, and so on — all of those are incredible challenges.
I think that one of the biggest losses under COVID-19 has been the social experience of people in long-term care, none of whom wanted to be in long-term care but are there. We have to find a way in this period, now that COVID-19 is lessening, to increase the doses of vaccination to allow this to happen, to increase, as we hope, one more time, incrementally, access to visitation and then, in the period afterwards, resolve ourselves that when the lights go away from long-term care a little bit and go on to other issues, we’re going to continue to focus on improving the quality of life.
S. Bond: Thank you to the minister. I share many of those observations. I guess I want to use a specific example. I think the minister has also referenced an incredible project that’s going to take place in Surrey and that is very much focused on the cultural support and the cultural community that people deserve also to have in their latter years.
I want to explore, just for a moment, how the minister works across other government ministries to deal with issues when it comes to seniors in long-term care or in seniors housing. I think all of us were distressed when we went…. I certainly had a large number of people reach out to me about Grace Seniors Home. The minister would be familiar with that. It is a culturally sensitive place that was embraced by the community. It’s for Cantonese-speaking seniors. There are very few spaces available. Those are the kinds of alternatives or models that we want to make sure exist not just in Chinatown but elsewhere.
Maybe the minister could just reassure me that there is a cross-government approach to this. When we hear families that are absolutely anxious and worried that their loved one is going to have to leave some place, they want to make sure that that cultural element still exists. When I read the objective, I was appreciative of the fact that this sounds like it’s more than just a one-size-fits-all approach, and the minister has spoken to that.
Maybe just some assurance that there is a cross-government approach that says: “Together we’re going to make sure that elderly British Columbians have the best possible fit for them in their latter years.” Maybe just a bit of emphasis for me on the cultural side of that. When a situation like that of Grace arises, how does the government actually work across ministries to deal with that?
Hon. A. Dix: Of course, I’ve heard about that. That’s an issue that was dealt with elsewhere. There was lots of advocacy and, I think, hopefully, ultimately a good result — although these things, when you get a good result in the end after controversy, create a lot of anxiety. I understand all that.
I think there is an issue around continuum of care. Why I like the idea of PICS long-term-care home is that PICS, as the member will know, has won a competition — if she hasn’t had a chance to visit it, hopefully when we’re visiting things again — and runs one of the most successful assisted-living homes. In recent surveys, it’s one of the highest-rated assisted-living homes in Fraser Health — the PICS assisted living.
What you had there was some independent living on site and assisted living. Once people had to leave assisted living and could not be sustained and required the care required in long-term care, the care would suddenly change. So you’d have the change of leaving that which had been your home and then the change of going from a very different facility. It’s challenging. Of course, all of our care providers try, I think, to do a good job, and they have significant health standards. Their ability to deal with the variety of British Columbia can be challenging.
I think that’s an example of where you want to create a continuum of care where people can possibly go from independent living to assisted living to long-term care, because at 65 we live, on average, for 23 to 25 years. Even though we talk about seniors as one group, there are many groups.
Equally, I think, we need to do that with other language groups. New Vista in Burnaby, another care home in Burnaby, has a floor that was significantly supported in their redevelopment. It’s a non-profit care home, one of the oldest in British Columbia as an organization. They have a new facility that is going to be responsive to the Korean-Canadian community. It’s the challenge of a diverse province.
I think that what we have to try and do is have a care system that, as much as possible, treats people as individuals, that understands that the circumstances of…. I think of one person that I visit every week in long-term care — so I’ll think of that — who is as sharp, thoughtful and critical as a person can be, but whose body has failed her, and she’s in long-term care.
Then other people have different needs. We have to try, in those years, to, I think, target individual investment on the quality of life and opportunities to live, even in long-term care — to live, and to find the things that give life meaning. That means, as much as possible, culturally appropriate care.
It’s difficult. You’ve got a care home like, say, Evergreen in North Vancouver that has 300 beds in multi-bed rooms. We’ll be talking about capital, probably, in a little bit. We need to rebuild that care home. It’s one of the old health authority public care homes on the site of Lions Gate Hospital. It’s 300 people — you can imagine — because it takes most of its people from the North Shore, the diverse community that it represents. How, when you’re managing such a care home, do you provide culturally appropriate care?
Just because it’s difficult, it doesn’t mean we can’t do things to address that. I think we have to. I think our goal, together, as a province…. Coming out of a pandemic that has been in this world, in this province, in this country, brutal on people in long-term care, that’s got to be our commitment to the future years: to make life better.
S. Bond: I know we’ll have some further discussion about seniors in community and seniors in long-term care in just a few minutes. I also wanted to just ask the minister about another strategy that’s included in the service plan. It’s actually related to the use of CareConnect and remote patient monitoring. I’m wondering if the minister could outline for me how seniors are able to connect or to access these particular supports — CareConnect and remote patient monitoring.
Hon. A. Dix: I think there’s some up-to-date information. What I’ll do, if it’s okay with the hon. member, is to come back to that in a few minutes when we get a little bit more information. We’re seeking that now, and then we can continue. I know the member has only so much time.
S. Bond: Well, thank you very much. Another key office that does work related to seniors in British Columbia…. I will certainly say for the record that I have a great deal of respect for the office of the seniors advocate. I’m wondering if the minister could outline for me how the funding for the office of the seniors advocate is determined.
Hon. A. Dix: Essentially, the seniors advocate receives base funding, which goes up, as base funding does. Then she makes requests for special projects that she does. Those two sets of projects in that process would go through the Deputy Minister of Health.
Members will know that the seniors advocate isn’t an independent officer of the Legislature, but I think it’s fair to say that the seniors advocate is independent and has done a good job. She served under the previous government, and she served under this government. Occasionally, lots of people get angry at her, from care providers to others. All those things happen, but I think she does a very good job.
Her way of accessing budget isn’t like an independent officer, who comes here and makes their case to a legislative committee. In her case, she has base funding, which would be kind of ministry core funding. Then, for special projects, she makes cases. As the member will know, recently, during the pandemic, she played a critical role in managing a budget. That wasn’t her budget to manage, but she was given those responsibilities, working with a group of MLAs. That’s the kind of project funding she gets. If she needs funding for something special, she would get that funding.
S. Bond: I certainly understand that people do…. I think all of us are in the position that no one agrees with everything we do all of the time. I think that the seniors advocate’s role is absolutely essential. We do need to have an independent person who speaks solely for the benefit of seniors in British Columbia.
I’m wondering if the minister can tell me what funding resources are allocated for the office for 2021-22.
Hon. A. Dix: The base funding is $2.267 million.
S. Bond: So maybe I could just pursue, then, with the minister, if he is prepared to articulate for me, what special projects, for example, the seniors advocate is considering, what she has asked for funding for and whether or not they’ve been approved. Is he in a position to be able to describe those for us?
Hon. A. Dix: Within that base funding envelope she has the flexibility to do a lot of what she does. But I think it’s fair to say, from time to time, she’d seek extra resources. For example, a significant portion of her time went into the development of 211 and related projects this past year. That was one of the things that she did. I think that most of her requirements are held within her base budget, but I don’t think that would be a limitation.
From time to time — quite frequently, actually, over my time as minister — I’ve called on her for advice or for extra information myself, independent of that, because she’s a thoughtful person and she provides a different perspective than just the ministry perspective, which, of course, is excellent.
That’s her base budget, and I think it’s fair to say that if she would want more money or if she needed more money, we’d absolutely be open to that as well.
S. Bond: Could the minister perhaps let me know whether or not there were additional resources, for example, requested? Did she receive funding for the Staying Apart to Stay Safe report review? I know that that’s important work.
Perhaps the minister could indicate…. I think he has done that by saying that. If something emerges throughout the course of the year and there is a special request, is that the kind of process that’s in place? The advocate can make that kind of request. It’s considered, so there may be additional funding provided in addition to the baseline budget throughout the course of the year.
Hon. A. Dix: I think that if those circumstances were required, she’d simply ask the Deputy Minister of Health. I think, based on the importance of the office, that request wouldn’t be denied. She does receive some shared services within the Ministry of Health, as well, I think — support for communications and other such things, when those requirements are in place.
Those reports she does within her funding envelope. They’re considerable, including the guides to long-term-care homes that you see, which she publishes periodically — the report on home support, for example, that she did not so long ago, pre-pandemic but recent pre-pandemic, and so on. She produces a significant number of reports.
She has an advisory group that she meets with regularly around British Columbia that I’ve had the occasion to speak to when she brings people together, from time to time, representing seniors in different communities. She does lots of that work as well.
There was a brief period when there was a lot of criticism of her office, as I described earlier. I think maybe, in previous estimates, we had a little bit of that, with the former member from Richmond east. There was a time when that was the case. There was a time when there were concerns from the B.C. Care Providers about the seniors advocate.
I think, especially with the new president of the Care Providers, Mr. Lake, and others, that her relationships, in general, are good. Inevitably, like I say, there will be disagreements. I see those as a positive thing. I think it’s an indication….
There’s some discussion, including, I think, with…. Care providers and others have suggested the creation of another independent office of the Legislature. I think the freedom that Isobel Mackenzie has to speak out on issues, even when she’s disagreeing with the government and with others in the system, is an indication of her independence. I personally think the office is doing a good job and is operating well.
S. Bond: I could be mistaken, but I seem to recall that when the member was in my seat on the opposition benches…. I think they were wildly supportive of the fact that we needed an independent seniors advocate, but I could be corrected there.
I actually think some tension in the system is important. I think that having someone who speaks solely from the perspective of seniors is an important thing. Obviously, we believed that as we moved forward. I understand that not every jurisdiction has an independent seniors advocate. I think British Columbia has done some good work on that front, and I certainly appreciate the office and the work that the advocate has done.
I want to move on to talk a little bit about…. Well, I want to, actually, ask another question about the seniors advocate. It’s in relation to community support and home support. Again, it comes back to the service plan. It’s on page 4 of the 2019-20–2021-22 service plan. It’s under objective 1.2. It reads: “With the guidance of B.C.’s seniors advocate, continue to improve access to home and community care.” It goes on.
I was, actually, surprised to discover that in the same section of the current service plan, that phrase is removed, the part that says: “With the guidance of B.C.’s seniors advocate….” I think that her role is very critical in terms of direction and looking at how we improve access to home and community care and at how we better address the needs of seniors in the province. One would think that having her advice is, actually, pretty important.
It seemed to have disappeared from the current plan. So I’m wondering if the minister could just explain the rationale for removing the phrase “the guidance of B.C.’s seniors advocate.”
Hon. A. Dix: I’m delighted that the member reads the service plan so carefully. I resolve to read it more carefully next year.
The seniors advocate, with respect to home support, has had, I think, in the direction that we’ve taken in community care, in particular, enormous influence, and she will continue to have that. For example, when we increased, especially, the money for respite care, which was a major part of the advancements we made in our home and community plan, starting in 2018-19, that recommendation, even though….
Obviously, it was a government proposal. I announced it at Collingwood Neighbourhood House. I recall the seniors advocate was there and spoke to it. That change, that focus on respite care, was solely based on her recommendation. In fact, it was her primary recommendation to me when I said: “What do we need to do to change that plan?” It was to focus on adult day programs and respite care and to provide more services to people in the community. She has played a central role in the development of that plan.
Equally, with respect to the report, a series of the recommendations have been put in place, including the repatriation of seniors’ care, which wasn’t specific of home support care, which, I think, has been largely successful in the province. That change has also received the support of the seniors advocate, and a series of the things proposed in her most recent report are there.
In terms of home support, in terms of respite care, in terms of community care, in terms of community-based services that are provided by professionally based services — all of which increased significantly as part of our seniors plan that we put in the 2018 budget — it has continued on through.
As we develop the expenditure around those plans and the detailed programmatic part of those plans, all of them were influenced by the seniors advocate, and they’ll continue to be, particularly in that area of care. And the member will know that the seniors advocate is the former long-time director of Beacon Community Services in the south Island, so she has both a significant interest and expertise in that area. So she’s someone I rely on.
I don’t know. It may not be in the service plan, but I’ll keep talking to Isobel Mackenzie nonetheless. And I’ll check that out in the service plan, make sure…. You may see it back in.
S. Bond: Well, I certainly didn’t want to imply that I thought…. I was hoping it wasn’t an intentional change. And I think the minister has made clear that working constructively together, whether it’s the seniors advocate or members of the opposition, there is tension in the system, and that’s actually what drives change. There have been, as the minister points out, some very substantive recommendations made by the seniors advocate, and I want to ensure that we, corporately, respect that — the role of the independent officer. And that is to…. That can be uncomfortable at times, but it is still absolutely critical.
I wanted to just spend a couple of minutes talking about the fact that…. We’re going to talk more about long-term care and COVID and the heartbreaking circumstances that families have faced and, in some cases, are continuing to face. But when we look at what…. I actually appreciated the way the minister described the seniors in British Columbia. They’re certainly not one-size-fits-all.
One of the things we know is that most seniors want to live in community, at home, as long as they possibly can, and that matters enormously to me. When we look at the statistics, we know that the vast majority of seniors actually spend their latter years in community. The number of elderly British Columbians in long-term care is actually quite small when you look at the one million people we would consider seniors in this province.
I’m wondering if the minister can just outline for me where that fits in his list of priorities. Obviously, we’re facing a global pandemic, and long-term care has been one of the, I think, most devastating outcomes, and we’re going to have to grapple with that over time. But there are a whole lot of seniors who want to stay at home. They want to be cared for in community. So what types of initiatives is the minister looking at when it comes to keeping those options open for seniors?
While he’s outlining that, perhaps he could include in his answer some comments about the Better at Home program and how that’s working. I know that when I was asked to sit on the all-party committee, that was one of the outcomes: additional support to Better at Home. One of the things we learned, for example, is that it doesn’t work the same way in all parts of British Columbia. We want it to work well wherever it is. So what is the minister’s priority when it comes to helping seniors stay at home as long as possible, making sure they have supports and resources in community?
Hon. A. Dix: I think I’d say a couple of things. First of all, we talked a little bit earlier about a cross-government approach and a cross-society approach. It seems to me that we’re facing…. If you look at the things that government provides in supports for seniors….
Long-term care — that’s about 30,000 residents. And 965,000 people over 65 have been vaccinated; 86 percent of those over 65 have been vaccinated. Just think of how many seniors…. Just over 30,000 of those — essentially, 32,000 — are in long-term care.
It’s one important group, and it’s where, of course, we devote the greatest resources — to the people who have the most significant and challenging health outcomes. That’s inevitably the case in a health care system. We can go all of our lives without needing care, as many people who end up in long-term care do. We’d do well to remember that when people talk about the costs of it. Often people have lived for years and never used health services, and then, at the end of their lives, they require them.
So at one end of the continuum is long-term care and assisted living, independent living — what we sometimes call seniors housing. There’s activity and community. There’s validating, I think, and supporting the role of seniors in our society — in other words, community activity and supporting community organizations that will do that.
This is particularly important, I’d argue, for seniors who don’t require needing the health care system. But when we become seniors, as we know — in my case, from my mom or from my mother-in-law, our two surviving parents for Renée and me — that one of the greatest challenges people face is the loss of friends and the community that they knew, whether that is to be people losing the ability to participate in activities, and so on.
What we need, I think, in society, is a continuum both of the health care system, long-term care, assisted living, home support, community-based services, adult day programs, support for seniors organizations. That’s the health care vision, but there’s a broader vision than that — around incomes, around pensions, around housing — and how difficult it is to continue to live and the difficult choices that seniors often have. They’re really challenging choices, and they bring with them, I think, some imaginative thoughts.
Here I’m improvising a little bit, but this is something — I’m talking about Isobel Mackenzie — that she talks about: seniors that have, through their home, significant wealth but are unable to afford to bring people in, and how we can find ways to think about improving that and giving people more access to utilize that. Sometimes those inheriting that wealth maybe have different views about that, and those are the things that rile families sometimes, but it’s a bit of a societal reverse mortgage around circumstances and how we allow that, but also how we plan communities.
In my city of Vancouver, we’re going to require more long-term-care homes, in a city where the price of real estate is beyond expensive. That’s true of many communities. It may not be true in all communities, but it’s true in many communities. How do we plan that, and how do we plan a long-term-care home that goes up, not spreading out, as a long-term-care home traditionally does? How do we allow in our planning in communities for seniors to stay in community and to have access to be able to live in community and live close to the things that they know?
I think it involves planning in cities; it involves the federal government in its role. It involves incomes and the economy, as this group of people in society becomes more important, and, as we’ve seen in a pandemic, a variety of supports that are needed from government. But it’s not just government. I think we have to prepare for a moment, because the number of people….
We talk about this, and we’ll talk about it next week when we talk about cancer — 50 percent more people with cancer by 2035. It’s not because we’re not doing a good job with cancer care in general. It’s because there’s going to be more age-related cancer, and outcomes are going to be better. That creates a problem that we haven’t had in human history before.
Let me just suggest one other thing which is a positive aspect of health care. When I first became an MLA, I had one of those cases — which the member knows because, I’m sure, she’s had cases like this. There was a guy, about 70, whose wife had passed away. They’d taken care of a child, for 45 years, who had developmental disabilities and lived with them. Suddenly…. They had a traditional relationship; he went to work, and she took care of the home and gave the primary support to their child. She passed away, and there was no respite care and no support.
We have people, this aging population — some of the success in our health care system of expanding life expectancy. For example, for people with developmental disabilities who, maybe for the first time in human history, will become seniors, in significantly large numbers….
These are societal problems that we have to address, and they present to provincial and federal and municipal governments. But we also have to have a discussion of what our province is going to look like as more of us become seniors in the coming 15 or 20 years. That planning, that thinking, is going to require all of us — not just Ministers of Health or other ministers of government or Ministers of Housing or federal ministers but, I would say, everybody.
S. Bond: Thank you to the minister for his answer. I’m wondering if he could outline for me, specifically related to Better at Home…. One of the things that we are concerned about is the fact that in smaller communities it’s very difficult to access some of the services that we can receive in larger communities. Perhaps the minister can speak to whether or not there is a monitoring process. Do we look at how Better at Home is being administered?
I’m not suggesting it needs to be the same. It’s not a one-size-fits-all program, but we want to ensure, if you live in Vanderhoof, McBride or Vancouver, that there are supports for seniors provided through the Better at Home program. Perhaps the minister can speak specifically to resources related to Better at Home.
Hon. A. Dix: I apologize to the member. I was captured a little bit; I gave too long an answer there. People in my office are going to give me a hard time about giving these long answers.
We’re seeing, I think, a significant increase in services delivered year unto year in Better at Home. That’s good news. We were part of it, and the member was part of that. She knows that. The program, by the way, was started under the previous government and has been expanded, since I’ve been Minister of Health, to include more communities — including, I think, four more this year. I’m looking at it coming to Peachland, Golden, Princeton, Nicola Valley — no, more than that — Houston, Cortes Island, Quadra Island, expanding both in terms of its scope….
Just to take a look at Better at Home data year unto year, for seniors in 2019-20 — Better at Home data: 11,935 seniors served, 191,147 services delivered. In 2020-21 reported data, which includes Better at Home services and new programs that we’ve added together on the safe seniors, strong communities initiative, the integrated community-based programs for older adults and the work done by many other agencies as well, including those involved in Better at Home, it’s 816,457 services — which shows, I think, the effectiveness of the model.
I would put this caution, and I think the member would agree with this: sometimes we ask Better at Home to do things that it’s not equipped to do. It’s not a home support agency. It’s not able to provide community-based professional services. I think we can continue to expand it. I’d ask all members of the House — because members of the House know the programs in their community — where we’re succeeding and where we’re not.
My principal goal, when we moved from $10 million in annual funding to $11 million and now to more, was of course to expand the reach of the program and the number of communities where it’s received. But that’s not the only measure, nor is the only measure the number of services, although that has clearly increased, in this model, quite a bit. Now we’ve got to work together, and the member will have suggestions on how we go through this post-pandemic period and maintain the momentum in services — I don’t think, as we go through the pandemic, that the needs of seniors are going to change; there may be less pandemic-related services, less isolation services required — and on how we can make it better.
That’s the general thrust of the program — which has, as we’ve seen, significantly increased over time. That reflects the very significant increases in funding from year unto year. There is an advisory committee involving many community organizations, an advisory committee to Better at Home, which is composed of the United Way, the ministry and other community-based agencies, to provide information about the program.
I’d encourage the member and members of the opposition to feed in their views on this as we develop the program, because this program is again going to change. It has seen an increase in resources. That sometimes can be a good thing for programs, but sometimes it doesn’t work entirely well. I think we’re going to have to take another look at it next year. I’d suggest to the member that that’s something we could do as the Legislature, together.
S. Bond: During last year’s estimates there was an interesting discussion. As I was reading it…. It was about other options, in terms of supporting or allowing seniors to essentially use their means more effectively, the minister had said — to support not just care but living. I thought it was an interesting concept. He referenced a number of proposals from the seniors advocate, from care providers and others, and that they were being considered as we move forward.
I’m wondering if the minister could just give me an update on those proposals. Did anything actually move ahead? What was considered over the last year? I’d be very interested in knowing whether progress was made on that particular concept he discussed in estimates last year.
Hon. A. Dix: I think probably less progress than I would like. Obviously, it’s been a year. I’ll just say that. It’s been a year where we’ve shifted our focus. There’s a huge focus on supporting home support in a time of pandemic, which has been a real challenge, and a huge focus on Better At Home. That’s where we’ve seen the effort, including, obviously, all the efforts around the COVID-19 pandemic.
I think the issues remain the same — the issues of a growing number of seniors who are finding it more challenging to live well in community, when we’re asking them to live well in community. You don’t want to create, in a system…. I think it would be hard to do this, because it’s hard to get into long-term care, actually. You have to have very significant conditions to get into long-term care. Even with respect to assisted living, you see a lot of it. If you wanted publicly funded assisted-living beds, that’s a challenge as well. I don’t think we’ve gone as far about it…. I think the issues are still there, and they’re ones that we can think about as a society.
A very long time ago I worked in the Minister of Finance’s office. I remember arguing with a senior at a particular time that they could use land tax deferment — something that the senior, I think, would rather have eaten glass than do. They didn’t like that idea. I do think that that model is interesting and one that we should explore: how we can find ways to allow people to use the means that they have, understanding that the demands on long-term care are going to grow.
The demands of that portion of the population, which is going to grow in parallel to the overall growth of the seniors population and assisted living and all the other demands…. How do we allow seniors to use their own resources to live well and to avoid the condition that many people have in Metro Vancouver, where they’re living in their very expensive places but are not able to live well?
S. Bond: I certainly understand that there are priorities. My point is simply to raise it so that we have an ongoing discussion about that. I think it does make a difference to the quality of life for seniors, not just now but in the future. I look forward to having further discussions with the minister about that as we emerge, we hope, from the pandemic. There are so many things that we will look forward to working on, hopefully together, in this area in particular.
I would also like to ask the minister if he could outline for me…. There is a $12 million investment in the home health monitoring initiative each year. I’m wondering. Is it $4 million per year? How many seniors will receive expanded or new services as a result of that investment in home health monitoring?
Hon. A. Dix: What I’ll do is…. When the other answer comes in — I know the member may have follow-up questions — we can get that specific answer to her.
S. Bond: I appreciate that. We’re probably not going to have enough time, either, so we’ll just submit questions. The minister is very good, I know, at getting back.
I wanted to reference the consultations for Budget 2021. The Select Standing Committee on Finance and Government Services made a recommendation that government increase investments in home support, including revising the regulated co-payment for the home support program, to enable seniors to stay at home.
Can the minister provide us an update on whether or not the ministry is looking at revising the regulated co-payment for the home support program?
Hon. A. Dix: I think that the select standing committee dealt with that issue, as did, I think, the seniors advocate in her 2019 report, which was talking about the thresholds for those programs. That’s been, as the member will know, a focus of mine in the PharmaCare program, where we used the basis of Fair PharmaCare and dramatically reduced the size of deductibles for many people in that case.
Some of the thresholds were quite similar. Someone earning $29,000 a year was paying a $750 deductible for PharmaCare at that time, which, if you are making $29,000 a year, is a huge, pretty significant deductible. For someone in that category, we eliminated the deductible so they were getting the immediate benefit, which was a partial payment in that case.
We haven’t decided to do that. We’ve made, as the member will know, some significant improvements in terms of home support hours over time. I think that in 2020-2021, they went down slightly. What I’ll do is I’ll forward to the member, at the end of the session — I have a note here which sort of summarizes all those questions — those facts around home support hours, and so on, year to year.
We’ve seen a significant increase, and we’ll expect to see a significant increase in home support hours next year. I think there was a slight reduction, probably because of COVID-19, this year in the number of hours. The funding has increased. That’s partly the investment of the provincial government — we’ve increased home support funding — and partly the investment of the federal government, which provided us, under an agreement that we have with the federal government, additional dollars for home support.
The number of hours has increased. We’ve increased respite care. We’ve made the other changes we’ve made. We haven’t made that change yet, although it’s a change that would be under active consideration. It affects…. It’s an expensive change, potentially. One has to judge it against other expenditures, but it is one way of providing more access to publicly funded home support in the province to a group of people who most people would describe as lower income. I’m trying to remember exactly what the threshold is, but a couple of thousand dollars change in the threshold would make a significant difference in that regard.
It is something we’re actively looking at, but it’s not part of Budget 2021.
S. Bond: I think the issue of revising how regulated co-payments work is important, because it can act as an impediment. I think that was advice, again, that the seniors advocate provided.
When you revise the co-payment for the home support program, it means that community supports available for seniors and families allow them to stay at home longer. I think all of us have that mutual interest. An example was…. Investing in home support costs the public system less compared to public funding for long-term-care space. We know that. Not only that, it is a quality of life issue.
I wanted to be sure that that, again, hasn’t been completely forgotten or lost on the minister’s radar screen. I understand there have been a lot of other priorities, but I did want to raise that issue and hope that there will be an ongoing commitment to considering that and looking at a specific plan that looks at the potential for revising that regulated co-payment.
Moving on, I’m wondering if the minister could provide me with an update on adult day programs in British Columbia. Are they fully operational? What is the ministry’s target for the number of adult day service hours it expects to provide in 2021 and 2022?
Hon. A. Dix: We have debated this in past estimates. This is one of the things, as the member will know, that I’m proudest of, the very significant increase in adult day programs that occurred — adult day services and cumulative days that occurred — in my time as Minister of Health. It had been recommended by the seniors advocate. It was something I really believed in, that and respite care services.
In ’18-19, it was 255,000 hours. In 2019-20, it was up to 292,000 hours, which was a huge increase. I was very proud of it, obviously. That was 292,000, not counting March of 2020, when those programs were essentially shut down during the first provincial restrictions that were put in place by the provincial health officer and by ourselves in order to keep people safe and to stop the virus from spreading in communities, especially to vulnerable people.
The number of hours is specifically very small this year. We went from massive increases to essentially the suspension of those programs during the course of the year. Some of the programs, on a very selective basis, were relaunched in August of 2020. At least in the Vancouver Coastal, Fraser and Interior Health Authorities…. Even in those cases, those programs were shut down again in November, as we entered into the second wave.
The result of that is that as of February, Vancouver Coastal and Northern Health are each operating one stand-alone adult day program. Vancouver Island Health, which has seen less COVID, is operating at seven sites. This is something we’re going to have to relaunch partially this year, with continued restrictions and controls, and then really relaunch.
The budget is still there, and the supports are still there. A lot of the money that went to adult day programs was sent to develop mitigation strategies, including virtual programs across the province. If there’s one thing that I’m proudest of as Minister of Health, it’s those programs, those baseline services that are provided.
I think that different health authorities have come up and offered different programs. Interior Health, Northern Health and Vancouver Island Health have relaunched some of their programs. What other health authorities did was develop alternatives, which was to connect with seniors at home and use the resources for outreach visits and for check-ins and to address the client base for adult day programs.
I think if you look at the losses of the COVID pandemic for people, it is those enormous…. When you think of that, 292,000 days in 2019-20 to in the tens of thousands of days in the 2020-2021 fiscal year, this is a place we have to come back to.
Of course, we’ve used it to reach out and to do all kinds of other mitigating things, but I think everyone participating in those programs and supporting them says that that’s not the same. That’s a significant diminishment for adults in the community that was made necessary by COVID-19.
That’s what happened to the program. It’s different from home support and community-based services, which continued on, basically, as is, with new restrictions in what people could do. In the case of adult day programs, essentially those programs have been suspended for much of the year.
S. Bond: Thank you to the minister for that response. I want to quickly ask the minister…. I had a number of questions on this. It’s actually something I care a great deal about but knowing how limited our time is…. I’m wondering if the minister can give me an update on the First Link program in British Columbia.
Dementia is an enormously challenging situation for many families who have loved ones that are impacted. I admit that I was concerned when I…. First of all, I have visited the minister before to speak about First Link. I wanted to just point out that in…. First Link dementia support served 18 percent more clients. In 2019-2020, there were over 6,000 new clients, an increase in the number of referrals via health care providers and a number of other contacts.
The minister can provide me with more information later, if that’s more helpful, but I want to ensure that there is sustainable permanent funding and that there is a recognition that those numbers and the services provided are increasing. We need the resources to follow that. We need to make sure that there is adequate and appropriate support.
I’ll just raise the issue of First Link, making sure that the minister is aware of the increase in the number of referrals and the number of clients that are being served. I want to make sure that we have resources to deal with that as we move into the future.
Hon. A. Dix: If the member would do me this favour to not publicize this beyond the provincewide TV that we’re on here.
The member will know that First Link has typically, over a very long period of time, received what’s sometimes called year-end funding. It’s really $2.7 million a year, which is what they consistently ask for, it should be said. That’s their funding request, which is approved. I suspect that if they asked for incremental funding, they would receive it.
As an organization, in principle, they ask for what they need for the program. They want to maintain some own-source investment in the program, I believe. That’s the case of the Alzheimer Society, which is admirable.
If the member won’t tell anybody, we provided year-end funding this year of $5.4 million. That means for this current fiscal year that we’re in, 2020-21 and ’21-22. We’ll, obviously, be making the public announcement of that later. I’m just counting on the low ratings of the Birch Room so that won’t get out too much. But it’s no surprise to anyone.
What we’ve tried to do, in the absence of base funding, is give two years in advance. Two years ago we gave $5.4 million as well. So it’s clear. If anybody in British Columbia thinks that any government is not going to provide funding for the First Link program or deal with growth in the program…. I suspect that that’s not the case. In any event, they’ve received two more years of funding, and we’ll be making a public announcement of that soon.
May was Alzheimer’s Month. Many of us went for a walk for Alzheimer’s. I don’t know if the member did as well.
What the Alzheimer Society does with First Link is extraordinary. The member is quite right that the work of First Link…. Nobody should confuse the $2.7 million in annual funding for First Link as a replacement for all the supports that are going to be required for people with Alzheimer’s and other dementias in our society, which is a growing number as well. It’s reflected in long-term care but in a lot of other places.
The impact of Alzheimer’s on families is profound as well. That’s what makes First Link so effective. It’s not, as the member will know, a government program, although it’s a government-supported program. Because of the credibility of the Alzheimer Society, it’s a place people feel free to go, and they’re going in increasing numbers.
S. Bond: I think the minister knew that he would receive some sort of question about that issue.
I want to move on to talk about a report that the Ministry of Health commissioned. It was a report on the government’s COVID response in long-term care. The minister would know that it was done by Ernst and Young. It was commissioned on July 30, and it was submitted to the ministry on October 22, 2020. Yet the minister knows — we’ve had this discussion in other venues — that that report was released publicly on January 25, 2021.
Maybe the minister could just walk through the timeline for me. When did the minister become aware the report was commissioned? When did he review the report? Again, remind all of us why the report wasn’t released earlier. When people are anxious, when they’ve participated in a process…. We’re not certain what the outcomes are. It’s important that we know those details.
Perhaps he can walk through the timeline of when the report was commissioned, when it was received and why it wasn’t released earlier. Then the next question, obviously, from that will be if the minister can outline any steps that have been taken to address the findings of the Ernst and Young report.
Hon. A. Dix: I’m happy to take the member through the timeline. I think some of the details of this have come out through a freedom-of-information request. So all of that information has been made available.
The report was not commissioned by me as the Minister of Health, but it was commissioned in the Ministry of Health. It was commissioned at the ADM level with the approval of the Deputy Minister of Health.
The discussions around it started in June, I believe, of 2020. The intent of the report was to do something that the division would ordinarily do itself but was extremely busy. They wanted an external partner to do the review, which was to reach out to partners in the seniors care system and to ask how we’ve been doing through the first wave of the pandemic.
The decision was made by the ministry to contract Ernst and Young rather than do a report or review internally and reach out internally, for reasons of the fact that that part of the ministry, as you can imagine, was extremely busy. Really, their focus was service-outward. The issues that they weren’t going to ask were how infection control was in long-term-care homes, because that’s not the expertise of Ernst and Young, and, of course, we have a public health team that is doing that on a systematic basis.
That’s what happened. They commissioned a review by Ernst and Young. In the summer of 2020, Ernst and Young went out and spoke to people in the ministry but also people in the sector. That would have included, initially, organizations like the B.C. Care Providers and others. It might have included other representatives in seniors care. The idea was to say: “How are you receiving both the direction of provincial health, and also, how are we doing in terms of coordinating on issues such as PPE and other issues?”
The folks at Ernst and Young, who had done a very good report for us about the Nanaimo Regional General Hospital…. The hon. member, the Leader of the Opposition will remember John Bethel, who often works on these things and works with Ernst and Young, and others who’ve got a lot of experience in health care. Mr. Bethel had served the previous government as an associate deputy minister and assistant deputy minister.
They prepared a report to the Ministry of Health, which was submitted. It was received, as the member says, on Oct. 22. It was shared with the Deputy Minister of Health towards the end of November, I believe, and shared with me in January. In that period, most of its recommendations…. Perhaps I’ll give the member a chance to ask another question around intervention before I go through, because we have recommendation and action that I can take the member through.
Was I happy to discover that a report had been conducted when I’ve been working on seniors care a lot and I only received it in January? I wasn’t happy, I don’t think. That wasn’t a happy day for me. But it’s what happened.
What the Ministry of Health did was take the report, work to implement its recommendations. Those recommendations were reflected in recommendations to me and to Dr. Henry and to others, about the actions we should take. But the report should have been released publicly sooner. It just should have been, because as the member said, they consulted a lot of people. When you’re consulted on a report, you want to see the work product.
I think there is an argument that I’m sure the ministry can make legitimately, that they were extremely busy, and they just wanted to move on and act. But I think the report should have been released sooner. I’m the first to say that, including to me but to everyone. Of course, it was released, I believe, on January 25, the day the member suggests.
I think the report, on balance, is relatively complimentary of the government, but that’s neither here nor there. The recommendations should have been put out and put out sooner.
S. Bond: I appreciate the minister’s candor. I can imagine that at a time when people are already anxious about information and how things are working…. One of the things we’re all going to have to face, as we emerge from the pandemic, is there is going to be a looking-back portion here that says: “What did we do right, and what do we need to be aware of?” I hope to goodness we aren’t facing something of this magnitude, but it is about lessons learned.
I think that there has…. As hard as it is to answer those questions, I actually think it is far more productive to accept the report, look at the recommendations and deal with them. British Columbians expect that of us. There are a lot of positive things to be said about how British Columbia has managed, but there are also areas where questions are important.
I can understand that the minister isn’t happy. I have a job to do too, and that is to ask the tough questions that are sometimes uncomfortable.
I appreciate that answer, and I think that it did cause a lot of unnecessary distress. Hopefully, we have that situation sorted out so that it doesn’t happen again. But I do want to speak about another report. The B.C. Care Providers Association released a report on November 10, 2020, and it was on the first-wave impact on long-term care. It was vetted — as I understand it, at least — prior to its release by a six-person academic panel that was led by Dr. Carole Estabrooks of the University of Alberta.
I’m wondering. Did the minister review that report and the recommendations contained within that report?
Hon. A. Dix: Yes.
S. Bond: There’s a succinct answer.
The follow-up that the minister would expect is: having answered the question about Ernst and Young and looking at the recommendations, did the ministry choose to act upon the recommendations in the BCCPA report?
Hon. A. Dix: I think maybe I’ll start, because on some issues, anyway, the reports overlap…. I’ll just take the member through. I won’t spend too long on this. I’ll try and go quickly. What I’ll do is just share the document with the member as well, which is one of those recommendation action documents, so the member can see that and use that, as she will, to inform her comments and her policy development.
What we did was make changes. The Ernst and Young report had a number of recommendations. The first was to update the structure to allow for quick decision-making. The COVID response and health emergency management division was created within the ministry to centrally manage the response from the ministry. Also, health authorities made specific actions based not just on that recommendation but to more effectively enhance coordination, collaboration and data sharing — not just between the ministry and health authorities but with partners.
To establish policies for financial support to operators was a second thing, as the member will know. We can go through the financial support that was offered, including some that was offered today to operators. But financial support has been provided based on identified need. The key question in all those questions, though, is: how do you account for that in a way that isn’t burdensome but is effective and ensures that government’s fiduciary role is maintained? That has happened.
To continue, we put in place new data-reporting structures. This was recommendation 3, implemented to assist in the collection of health human resources and financial data. The long-term-care monitoring tool was started in the fall of 2020. That follows through on that recommendation.
The pandemic response communication should formally consider contracted and private providers and be clear about messaging and policy. That was a recommendation. The report was focused on the ministry, and a process was established for regular operator communications through health authorities with industry associations.
What I would say in defence of the ministry and the staff is…. And there are more coming. But I think what they wanted to do was get an outside look at how they were doing, so they went out and contracted Ernst and Young to give them that, and then they responded to it.
What I tried to do — and this has been challenging to me; Dr. Brown and Dr. Henry can both testify to this — a little bit is to allow people, without my usual intense observation of events, to have the freedom to act, because we needed to act. In this case, the ministry acted without my knowing, in terms of commissioning the report. But I’m very supportive of their wish to seek outside advice and to try to do better. I think they should have that authority, especially during these times, and they do have the authority to commission reports to support themselves in this way.
There is a series of other recommendations around clear guidelines around PPE policy, for example, that were also put into place. There’s actually a number of recommendations, and I think it’s going to take me about ten minutes to read them all into the record. So what I’ll do is provide them to the member. But on each item recommended by Ernst and Young, action was taken in advance of the report being made public.
From my perspective, I suppose, it would have been just as well to do that. Showing action — the action that followed the recommendations, showing that they were fully engaged — is a positive thing that should build confidence. I think the fact that there was a debate about the report had people lose sight of that. But I do agree with staff taking initiative. I do agree with them having someone else look at their work and say, “Is it the best work?” and make recommendations and then act on that recommendation.
I think that’s what our team in the Ministry of Health, who have worked with great dedication from the beginning of this on seniors issues…. From Steve Brown to Peter Pokorny to Teri Collins on down, people have worked with commitment and dedication on this issue. Their commitment to this process, notwithstanding the public debate — for which I am ultimately responsible, the decision in failing to release the report publicly….
The things that they’ve done based on this report, the fact that they asked for the report from an external person…. This is always a risk when you’re working in government — to have someone assess your work. I think all of that is something that deserves credit, and I will share all of the recommendations and action items with the member, the Leader of the Opposition, that I have in my briefing book.
S. Bond: Thank you to the minister. I would very much appreciate having information about the specific actions.
I want to turn for a moment…. I’m certainly assuming that the issue of personal protective equipment is going to continue to be part of the world that we live in, particularly in long-term care, so I want to talk a little bit about that. It seems, at least…. And certainly, Ernst and Young did talk about some discrepancies in PPE access. We know that that was a challenge between health authority facilities and contracted facilities. But again, the minister is going to provide some feedback to me on the specific actions that were taken.
I guess I want to just ask specifically about management of PPE, going forward, and the fact that at the beginning — and, obviously, everybody was trying to manage through this situation — there were concerns about gaps in British Columbia, and also in other jurisdictions, managing what was considered a PPE stockpile. There was criticism that some products were going to expire and others had been provided to other countries.
Maybe the minister can just walk through for me…. You know, we hope we don’t face similar circumstances, but it would be good to know that we learned from that situation. Does the minister have a plan, going forward, so that we have a robust, obviously date-appropriate supply of PPE so that we don’t face that concern about gaps and stockpiles and those kinds of things? Could he just outline for me some of the steps that we will be taking as a result of that issue that we faced early on?
Hon. A. Dix: Certainly, this issue of PPE, especially at the beginning of the pandemic, was a central issue of concern that happened in February and March and April. This has been documented in a report I did in August, I think, of 2020 at one of our briefings. We’ll talk a little bit about the standards, the guidelines, the resources and the directions from provincial health, perhaps, in subsequent questions as well.
But in February and March and April, we saw an exponential increase in utilization of PPE in our system, such that our stockpiles of certain types of PPE — especially a particular type of mask called N95-S, a N95-small because of the way it fits — were under great pressure. I can tell the member — and I suspect we’ll have some discussion of this when we discuss the Provincial Health Services Authority next week — that that period of April 2020 was a period where we were more focused on PPE than on virtually any other issue in parts of the ministry and the health authority.
I particularly want to recognize the remarkable role — I mean, really remarkable role — played by Associate Deputy Minister Peter Pokorny in this time, who essentially became, in some ways, for the whole health system, along with the Provincial Health Services Authority, the leader in procuring PPE. He now knows more about it than I think just about anyone on earth.
What we’ve done in the past year is procured an extraordinary amount of PPE. We are not just building for now but building a stockpile for the future that is going to be significantly beyond any previous stockpile created, because we need to do that.
The expenditures on PPE. I think I shared those last time. I’ll get these numbers. I know that Peter will be sending them to Deputy Minister Stephen Brown now, to compare the amount we spent on PPE in the 2019-20 fiscal year, which would have been in the neighbourhood of $70 million, I think…. I don’t know exactly. That was increased seven- or eightfold.
Two things happened. One, there was a limited supply, and we needed more when the utilization was up. Two, the price went up — on some items, per-unit cost, by 500 percent. It wasn’t an issue about whether we should pay the price. We were going to pay the price, because we weren’t going to have people working in health care without appropriate PPE, so we did. We spent an extraordinary amount on PPE in that time. During that period, as well….
That centralized approach, where the Ministry of Health plays a central role, is the new approach, and it will continue to be the new approach, I believe, for governments in the future, regardless of whether they’re NDP or Liberal or whatever, because I think it’s the right approach. We have produced the numbers, which I report on occasionally over time, units of PPE that are very significant across the province, as you would expect with the hundreds of millions of dollars that we spent. Millions of pairs of gloves and wipes and masks and N95 respirators, and so on. All of that information I’ll share with the member.
I think the centralized approach we’ve taken is the right approach. Our job now is to build not just for now or the next six months or the next nine months but well into the future, so that there’s no question in future. The cost of that in this fiscal year will be high, because prices are still too high. This is a separate question for Canadians, I think. That is: why aren’t we making PPE in Canada?
What happened in February and March is that the United States of America, where we received most of our PPE, stopped our shipments at the border. They just did. We were left to procure PPE in other countries in the world. They did that because they needed the PPE. That’s why they did that.
But that’s not a surprise. This is an essential commodity, and I think in Canada, part of our plan, our jobs plan in B.C. and the rest of Canada, has to be to produce a domestic supply of PPE, just like we need a domestic producer of vaccine in this country. These are the lessons of this. The lesson is we need Canadians to be making products that are essential to the lives of Canadians if a crisis happens.
We need to build out our PPE inventory so that in the next crisis, we’ll be more than prepared for that, yes. But we also need domestic supply, because domestic supply has been proven to be absolutely necessary in these times, and we must continue to have that.
In addition to that, of course, there were very significant guidelines on the use of PPE, and we shared, on part of that plan on March 26, PPE with our contracted providers. What happened for our contracted providers was they had their own supplies of PPE, but they were faced by the same thing, and they weren’t as big as us, and they’re not able to procure or get around or find other countries, and so on. So we made our supplies available, I think in the neighbourhood of $30 million for contracted providers, of PPE. They were provided, we say, for free, but they were provided because they were needed.
That situation, the centralized management that’s come out of it, the massive effort — which I’m happy to report on in detail and send the member a note in detail — to increase our supplies into the future so we meet future demands…. That’s been one of the experiences. If we are a year from now and there is no domestic provider of vaccine and there’s no domestic provider of PPE, then we, as leaders in our country — I think I say this not just in British Columbia but in Canada; we’re limited in the size of our market and effectiveness — then we have not learned a major lesson of the pandemic.
The Chair: Members, we will now take a five-minute recess while we undertake cleaning and safety protocols in preparation for a new committee Chair.
The committee recessed from 5:04 p.m. to 5:09 p.m.
[D. Coulter in the chair.]
Hon. A. Dix: Just for the Leader of the Opposition, I’m informed that a comfort care aide is not a role that’s generally used or a title that’s generally used in B.C. It’s a term and role that’s used generally in Alberta. The closest role we have in B.C. is health care worker 1, which provides non-direct care to patients.
With respect to HCW-1s, they are eligible for the HCAP program, which we may talk about in a little bit, either by applying directly through the provincial portal or by working with an employer to be hired directly by the operator. The only caveats would be the operator has a need and the person meets the minimum employment criteria. That’s the issue on comfort care aides.
What I will do is I’ve got a document which is up to date on the remarkable numbers of PPE we produce and our current inventory, so it’s actually a very interesting document. I’ll share that with the member through the Chair, or maybe I’ll just send a copy to her office at the end.
S. Bond: I would like to just pursue the concept of PPE and its utilization. One of the things we learned, certainly as we’ve seen science evolve around airborne transmission…. We know that as we look at airborne versus aerosol transmission, I understand that the BCCDC website was only updated recently to actually reflect the evolving understanding of the science.
Can the minister perhaps describe for us whether there will be a change or some sort of assistance related to protection for front-line workers in seniors care homes as a result of the fact that there is now emerging science on airborne transmission? For example, would long-term-care home workers require an N95 mask? Is that something the minister is considering in terms of support to workers in long-term care?
Hon. A. Dix: I think I speak for everybody watching us when I wish that Dr. Henry was providing this answer and not me. I think what’s important is that there is specific guidance that’s provided by the experts at the BCCDC and others about the use of respirators in certain conditions and particularly, for example, in circumstances such as the ICU, which are aerosol-generating places. We do use N95 respirators often in acute care. They’re significantly utilized in specific circumstances.
In terms of long-term care in a general sense, I don’t think you’re going to see a change in that guidance. That good infection prevention and control using goggles, masks and other existing techniques is both sufficient and the best response to dealing with COVID-19 and other respiratory illnesses in those circumstances. The majority of what the change in the guidance reflects is more understanding of COVID-19 as we’ve gone through the pandemic and the appropriate use of PPE. That’s the key — the appropriate use of PPE, which is a very challenging thing.
I am very compassionate. If you watch me during this thing and replay the mask coming on and off, there would be some criticism. If you’re in health care, with all of the stakes involved in dealing with long-term care, it is extremely challenging, but the appropriate use of PPE and that guidance, which is constantly reviewed by the BCCDC, is unlikely to change, although our understanding of COVID-19 continues to evolve.
S. Bond: Thank you for that response. I think all of us recognize that as the days unfold and as the science has become more clear, it does cause moments of anxious…. People feel anxious. All of us know how incredibly hard front-line workers, particularly in long-term care, have worked throughout this last number of…. Well, over a year now.
Let’s move on, perhaps, to something that is…. I would be the first to admit that I recognize that it’s been difficult for Dr. Henry, for the minister and for others, but I think we need to have a discussion about the impacts of visitation on long-term care and assisted living.
When we look back, I think, over the last 14 months, at the impact on long-term-care residents in particular, have we started to give thought to…? I know we’re still dealing with some restrictions. I’m going to talk about those in a moment. Have we started to reflect on the impacts of the lack of connection for people in long-term care? Maybe it’s too soon to start to contemplate that, but has the minister thought about whether there are things that we would do differently if we were looking at the same circumstance as we move ahead?
I think all of us know, and I’ve heard countless stories — I am completely certain that we don’t need to repeat them here — of the devastating impact on families, both to the person in long-term care and to the people who care for and love that person. I know you’ve heard them over and over, so I’m certainly not suggesting that it’s not known to you. Have we learned lessons already at this stage about what we might do differently?
Obviously, as the pandemic emerged, there were a lot of considerations — the first, of course, being the health and well-being of people. I feel deeply concerned about the impacts of that lack of connection and, in many ways, the lack of familial connection in particular. Certainly, the minister knows that I experienced that myself. It was in a different setting and for a different reason, but I will never, ever forget the painful circumstances in my family’s life when we lost my husband and were not able to be there. That is something you will never forget.
In terms of long-term care, have we learned lessons? Are there things we would do differently? Then I would like to, as we move forward, talk a little bit about what’s happening in long-term care as we speak.
Hon. A. Dix: The member will know that I certainly appreciate her own experience and what it means for people not just in long-term care but in acute care as well, where there have been significant visitor restrictions for some time.
What would we do differently? We have to step back and say: “What did we do?”
In March of 2020, we put in significant restrictions on visits.
In May of 2020, we made some changes, particularly with respect to acute care, as a result of very significant advocacy and the number of cases involving people with disabilities, allowing them to have access, for example, to advocates within the health care system, which was necessary. There was a particular case that symbolized this, but there were a number of cases that people felt…. So we made changes then.
On June 30, we announced the return of social visits. So in March, we had limited visits, but there were essential visitors. For 30,000 people in long-term care, roughly, 6,500 essential visitors. Those visits were restored on a limited basis at that time.
Then, obviously, in February, as a result of the intervention of the Ombudsman, we codified those in provincial health orders. They’d previously been directions from the Ministry of Health, myself, Dr. Henry and Deputy Minister Brown. They were codified, because we felt that that would allow more equity across the system.
We’re still in the position where we have…. Obviously, it feels, compared to what it was, massively open now. But there are significant restrictions now which we are reflecting on and which we’ll have more to say about soon. So that’s the process.
What would we have done better? I think that we would have made the adjustments sooner for people with disabilities, I’d say.
I think probably, in retrospect, we would have…. I’m not speaking for Dr. Henry, just for myself here. We would have codified it earlier. I think the differences between how people were treated in one care home and another were a source of concern. It wasn’t because the care homes were uncaring. Everybody was concerned.
There had been…. I don’t think we would have made the changes. There were significant proposals made by the seniors advocate at the beginning part of November, as it turned out, to open up visitations. That, I think, would have been…. Given what we learned about the second wave and what was to come almost immediately thereafter, that was probably the right decision. I’m not critical of people for advocating for visits, because we know their impact.
All I can say is that I think the issue of what we’d do better…. This doesn’t change the fundamental question of these issues of consistency amongst care homes. The way we responded later on to deal with those consistencies…. The opportunities we gave to people to appeal could have been there at the beginning. There are reasons why they weren’t, but that could have been there at the beginning.
All of those would have made what I would call, for some people, a significant improvement but, overall, marginal improvements to the system. They were things we could have done a little bit better, fundamentally.
We’ve experienced this in my family. We have experienced outbreaks — three of them. I’ve experienced a positive test for COVID-19 in one of them.
What happens when an outbreak comes, and has come and came through the second wave, is that no one got access in an outbreak. There’s a lot of discussion about enhanced surveillance, and we’ll probably have that discussion.
What medical health officers know is the profound impact of a lack of visitation on people in long-term care. They have consistently tried to balance those things. The balance has been against visitation. It has been. People haven’t been able to visit, not only as much as they should but as much as people need.
There are lessons to be learned and, I think, lessons to be learned going forward, as well, in how we deal with this next period. We’ve gone from, on January 15, 49 care home, assisted-living, independent living outbreaks. We went from there, within a month, to five.
The third wave took place in very different conditions in long-term care. The second wave was hugely about long-term care and about the losses, particularly, in care homes that had the extensive outbreaks. The third wave less so because of vaccination. We’re at a better place in the care sector.
What we have to make in our next set of decisions is decisions that ensure that those residents in long-term care…. Sometimes we talk about seniors in long-term care. It’s not just seniors in long-term care but all residents in long-term care that get access to more visitation and that we do it in the safest possible manner.
People have made suggestions and recommendations about how we deal with the issue of vaccination, including for essential visitors or visitors in a long-term-care home. If you’re in a care home, such as in our family’s case, and you’re sharing a room with other people, the requirement for that, and for a visitor who comes into that room, to be safe is significant — and because the vaccine, while these are maybe the best vaccines we’ve seen ever, are not 100 percent safe.
We’ve got to take the same approach in the next few weeks. The decisions we’re going to make I hope are the right ones but ones that will allow more visitation.
The short answer is yes. In retrospect, there are things we could have done better. I think the decisions were ultimately the right decisions, but the consequences of those decisions, and the choices that were made by medical health officers between safety and living life, are decisions that will be with us for a long time.
S. Bond: Thank you to the minister for that response. I think all of us know that there will have been a significant impact when you would think about not just physically but obviously deterioration from a mental wellness perspective. There are lessons to be learned, and I appreciate that this is a discussion we’ll have not just today but as we look at the model of long-term care in the future and the potential impact of future health care crises like this.
I guess we now know that there has been a profound impact. We’ve all heard the stories. Could the minister tell us what is being done today to assess the impacts of residents in long-term care, particularly from a mental wellness perspective? Will there be resources and supports and additional ways to provide support not only for the resident but for families, who have been profoundly impacted by that separation? There are many, far too many, that have lost a loved one, but there’s still hope and a chance to assess what happened and to look at how we find a way to create a better period of time, moving forward.
Is there a systematic approach to looking at what the impacts are, how those assessments are done and what kinds of resources that families and residents could both take advantage of to deal with what we know will have been a significant impact?
The Chair: Minister.
Hon. A. Dix: Thank you, hon. Chair. It’s good to see you there. Members of the public may not know that we don’t see each other very much, even if we’re members of the same caucus, only by Zoom. So it’s especially good to see the member for Chilliwack.
What I’d say is that I think there’s a myriad of things we have to do — I think I tried to reflect this in a previous answer — in this next period to improve life in long-term care. The focus has to be on living better. There are lots of things we can do.
One thing I’d suggest to the member that we can work on together is to change some of the dynamic of, for want of a better term — trying to think of a better term — politics, the balance of forces in long-term care.
We have, and we should have, employer organizations that are effective and, in some respects, powerful to represent the views of employers. We have health authorities that are large and impressive. We have lots of people working in the area. We have unions that are very committed to their members and to the life in long-term care. One of the things that I think we need to work together on….
There were recommendations — the member will know this — in 2015 that neither her government nor my government has yet implemented with respect to the roles of family councils. One of the really practical things we can do in this next period is to start to give, in regulation but also in fact, more of a greater role for family councils within the lives of long-term-care homes, a greater voice for residents and their families in the running of long-term-care homes. I think that’s something we can do. We can propose, we can come to agreement with, and we can move ahead on, in this period, as an expression of how we want to see the next period in long-term care.
The individual assessments are significant. The need for improving policies is…. Investment and resources are important. The recruitment of people is important. But I think many family members, in the period leading into the pandemic…. This period of the pandemic has exacerbated or put a megaphone to that sense of distance from control in what is, after all, the home of residents. It’s their home.
Giving family councils a more institutional role in both regulation and institutional support is something I think we could do, at least to indicate, not a major initiative but a small initiative to make things better. It’s something I think we could come together as a Legislature on and work on together.
S. Bond: I think it is something that all of us are going to have to think carefully about as we think about not just what happened in the past but what we need to do, moving forward. I think all of us will have etched in our memories the handprints on the windows. It’s hard to contemplate that period of isolation, the impact of that, particularly on frail elderly British Columbians. I think we owe it, as a group of people, to do our best to figure out how we make improvements in the short term but also think about that model over the longer time.
I absolutely respect that it is a balance. I am not for a moment suggesting…. The health care risks are obviously very, very important. They’re the priority. But there are the consequences of that process that are playing out as we speak now. I just want to be sure that there is effort being made to look at what we can do to provide the kinds of support that families and their loved ones need.
The current visitation restrictions were announced on March 25. As I understand it, some care homes are still restricting visits to one hour. Again, I think equity really matters. I think that when families in one part of the province or in one home versus another one hear about inconsistency, that adds to their frustration and their distress.
Could the minister speak to what is being done to ensure there is an equitable application of visitation guidelines across all long-term-care homes, and what resources are in place to make sure that care homes are able to fully support loved ones by allowing visits, as outlined in the updated restrictions?
Hon. A. Dix: Thanks to the member, both for her question and her previous comments. Firstly, we decided in the hardest-working time of the pandemic…. At least for many in the Ministry of Health, that was July and August of last year, because we were preparing for what we expected in the fall. We decided, at that time, to hire a lot of people in long-term care.
It was needed. It was needed because there were needs into the future. It was needed, and there was an opportunity because, of course, many potential workers were looking for work. So we had a new group of people we hoped would be the next generation of health care workers. We created a series of programs that are intended to add up to about 7,000 workers.
About 5,000 have been hired under the auspices of that program, which is pretty good. It’s a three-year program. We’re going to get there. So 1,600 of those people, I believe, were hired to support visitation, because in each long-term-care home, when you set up, essentially, a system to support visitation, that requires human beings.
Each care home was given access to positions. That was a good place to start, where we added, I think, 1,600 or 1,700 people that care homes accessed under the auspices of that program, which was a good place to start and was an important place to start, in terms of what we’re doing. I think that was important, especially for care homes in this time. We’ve, of course, provided significant resources to care homes in the contracted sector to support them in this.
We have put in place a system of appeals for people that they can go through. That is part of the provincial health officer’s approach, her guidelines and her orders in this regard. Of course, the challenge the member rightly raises is some inconsistency in that. We put in a minimum standard of visits where, at minimum, it can be 60 minutes. We thought it was important. It was actually a suggestion that had been made in our discussions around this by the seniors advocate, if I’m not mistaken, or at least was something that had been proposed by Dr. Henry. We discussed, and we thought the decision to be unequivocal of that 60 minutes as a minimum standard was important for us, and we put that in place.
Obviously, some care homes, and some people, in managing those systems…. Sometimes the minimum becomes a maximum when you’re applying those rules. But it’s intended to be a minimum.
We are hopeful, in the coming weeks, to make further changes. We may talk about vaccinations in a little bit, but our goal of fully two-dose-vaccinating through care homes is close to fruition. The significant majority of care home residents have received their second dose. A majority of care home workers have received their second dose.
Since most of those groups of people got their doses in January and February, they’re amongst the first people to get their second doses now. In fact, a majority of care home residents received their second doses before the change in the policy around second doses. So 72 percent of care home residents received their second doses in advance of the March decision to extend the gap between first and second doses, and a very significant share of health care workers as well. I think it was a majority, but it wasn’t as large a majority.
We’re going to get everyone vaccinated. That’s going to involve, if there are unvaccinated people in care homes as well, a renewed effort to make sure that number gets as close to 100 percent as we can reasonably get. In some cases, especially in the case of, sometimes, residents of care homes who are in circumstances where they’re essentially palliative, they may be reluctant. But that, I don’t think, is a big issue. That’s actually a reasonable consideration for someone living in a care home, and for their family, making decisions around vaccination. But overwhelmingly, residents and staff in long-term care have gotten vaccinated.
Once that happens, through second doses — and that’s going to happen fairly soon — we have to develop those measures and put those measures in place that are going to be durable. Some of those measures — I’d just say this; this hasn’t been decided — may be ones that we consider doing on a time-sensitive basis. There are some changes where we’d like to open up now, but we may consider putting in, again, some restrictions on visitations during respiratory illness season because we haven’t gone through a second year of COVID-19.
In any event, that’s a serious season. Influenza outbreaks in long-term-care homes — which, thankfully, we did not see this year, not one; if one wants to pray, that’s something to pray for — were important. That’s a consideration. Are there times in the year when we may want to, have to, for example, have everyone don masks again, and so on, in their experiences? That’s a consideration.
What we’re going to see, once we are fully vaccinated through dose 2, is, again, another step forward in opening up visitation in long-term care, and especially trying to ensure that the kinds of visits that support the health of residents are encouraged and supported. That will involve, as well, addressing and engaging with family members.
I would say that the decision sometimes made by families to have people go to long-term care is one fraught with difficulty for them, for the issues. There’s already a feeling of intense guilt, sometimes, around the whole experience. There just is, right? I think all of that has to be reflected.
Once vaccination is completed, the plans are in the works. We’ll be consulting the hon. member and her colleagues. We’ll be consulting widely on this question so that we…. As I think we got it right in March when we further expanded visitations in a way that was managed and controlled and thoughtful — with some problems in some places; we’ll acknowledge that — we need to make that, in the next round, important so that we keep people safe but also we contribute to a return to normalcy in long-term care.
S. Bond: I think that the minister has segued into my next question, but I just want to walk through it a bit more specifically. When the announcement was made on the 25th of March, the minister did commit to reviewing and looking at visitor restrictions moving forward. It sounds like a lot of thinking is going on about that, and I am very grateful to hear that. I’m sure that families across the province will be as well.
The minister commented that there would be a review and reconsideration. Is that an informal process? Is there a formal review? Is there a report? Is there going to be some public reporting back about where we’re at with restrictions?
I think the other thing that…. I thought this was an interesting perspective that, you know, the restart 2.0 is appreciated. I think people were happy to know that there is a plan, and it’s been laid out. Looking at things like long-term care, for example, those are not included. You know, long-term care is not included. I understand the point about vaccination and all of those things and the balance, but it leads to that ongoing uncertainty and concern.
Maybe just a two-part question then. The minister has reflected on thinking that’s being done as we speak and that we’ll be hearing more about in the weeks ahead. But is there a formal review? Is work being done more informally? Will there be any sort of public notification, public discussion about that?
We are seeing increased vaccinations, so I’m wondering if the minister has received further advice from Dr. Henry about: is it possible that the restrictions could be lifted more expeditiously? Where are we at with a commitment to say that perhaps before June 30 there may be some further adjustment? Could the minister just, sort of, address that grouping of questions about what kind of review? Is it formal? Is it public? Not included in the restart plan, leaving some room for people to be concerned, what is the next step, and is there any consideration for restrictions being eased prior to June 30?
Hon. A. Dix: I won’t put a time on it, but I would say this. The opening up of visitations occurred on March 25. The member will recall that the circuit breaker came in on March 29. So in that case, we seemed to be going in two different directions.
We’d seen the impact of vaccination in long-term care and the profound effect of those limits on visitations on people in long-term care. We felt confident — and I think the evidence has suggested that Dr. Henry, in her advice, was right in that regard to make the changes — about the very significant changes in visitations occurring March 25, even though, at the time, case counts in the broader community were going up.
We had two different periods. We had put in more restrictions, and there were a lot of outbreaks in the months of November, December, January and February, ending in February. Before, really, the end of January, we’d stopped seeing a lot of outbreaks. It was evident — the impact of vaccination. Dr. Henry presented, I know, to all the caucuses but also to the whole province the impact in long-term care as part of an argument, frankly, in favour of vaccination.
It was just profound, in fact, what had occurred in long-term care, which is the essential elimination, for the most part, of outbreaks, although there were still some. I know that people who had family members and who live in those care homes understand how serious those are.
The decisions in long-term care and the decisions in health care are a little bit aside from the restart plan, which is for the broader society and the broader economy. So we won’t be making…. When we’re ready to make more changes in visitations in long-term care, we’re going to collect the evidence, get the recommendation — there will be changes in the provincial health order, changes in Ministry of Health policy — and we’re going to proceed equally there.
We’re doing the same changes and the same consideration around changes in visitation in acute care, which is a whole different issue but which is, as the member will know, a very significant issue. People tend to — not all; there are people who stay a long time in acute care — have shorter stays in acute care. So the impact of limits on visitations is different but nonetheless significant. So we are looking at that question as well.
Our intention is to proceed — when we’re ready and we get the advice to proceed — to make those changes. The process for long-term care wasn’t in the restart plan because it’s a different process of consideration. Clearly, we want to see an increase in visitation in long-term care. It’s linked to different standards of immunization, because the risk is so different in long-term care, right?
You know, to go from step 1 to step 2 required 65 percent of all those over 18 to be vaccinated. We’re currently at 74 percent, so we’re there on that. In long-term care, it’s clearly higher than that and different than that. So I’m not sure whether it’ll be June 30 or what date it will be, but we’re doing that work now, and we would proceed. That’s separate from any kind of review of the visitation policies. We’re proceeding with changes, as we did on March 25. We’ll proceed with changes in the visitation policy when those tests and considerations are met.
S. Bond: I think that that response leads to what would be a natural next question, in that while the minister was going to consider when restrictions might be eased in the short term, we have discussed here today and British Columbians are talking about, the impacts on the mental health and wellness of seniors in long-term care, as a result of isolation.
Will the minister consider a more formal review of visitation policies as we look to the future? We know that one of the considerations should be: what was the impact? Physical health was obviously a priority, but the deep concern is: what were the impacts from a mental health and wellness perspective? Is the minister considering a more thorough and formal review of visitation policies?
I almost shudder to ask, but I think it’s the responsible thing to do. We are hopeful. Vaccination is obviously critical in making sure that residents in long-term care and staff and others have had both of their shots. In the event of a fourth wave or some other form of pandemic, will the ministry be looking at the whole issue of visitor restrictions to say: could we make some changes to allow the maximum possible visitation, understanding the need for balance and the priority on physical health? There have been lessons, I think, that we can learn.
Is the minister prepared to consider that formal review, looking at visitation policies? What can we learn? Then how would those be applied in a potential future situation where those types of restrictions might need to be considered?
Hon. A. Dix: I think there are a number of sets of considerations. The impact on the mental health of residents and the impact of those policies on the mental health of workers have been very challenging. While we’ve hired all of those people to assist in visitation, the challenge of mediating those concerns for workers has been really challenging, just on visitation — never mind all the other stresses of being involved in care homes that have outbreaks, and so on.
So there are those considerations as well. The mental health of families is affected by that. I’ll take that as a recommendation or a suggestion by the hon. member.
What I’d like to do in the immediate period is to continue with vaccination and make changes to visitor policies in the near future that allow for more visits and to establish what I hope will be a more permanent situation. But I think those issues, and others, will be something worthy of review in the future, and I’ll take the recommendation that…. I think, if I hear the member correctly, she’s saying that visitation…. She may think other things should be reviewed as well, but visitation is certainly…. Its impact on residents, its impact on the system, is something that I think is worthy of consideration in the future.
I’d like to get through this next stage, as the member will understand, first, then make those changes. I think we’re at the point where actions are required. We need to engage with care providers, we need to engage with workers, we need to engage with families, and so on. But right now I think we’re in a position…. We’ll be in a position soon to take action. I’d like to see us take action. But I absolutely don’t rule out any review of it in the future.
S. Bond: I appreciate the minister’s response. I’m wondering if we could just speak for a couple of minutes about the Staying Apart to Stay Safe recommendations that came from the seniors advocate. I know that when the report was released, the ministry said that all of the recommendations from the seniors advocate would be considered in future planning.
There were three key actions, and I’m wondering if the minister could outline for me any steps that have been taken. Are there plans in place? Are there dates? What are the timelines, additional budgetary consideration, those kinds of things to make sure that those recommendations in the report that was provided are actually followed through on?
Hon. A. Dix: I think three sets of things. As the member will know, the report, which I found, of course, very useful and, as you would expect, would have read cover to cover and was interested in very much…. I think at the time, which was November 3, it was our view that we couldn’t proceed with those changes, for the reasons that became evident during the second wave of the COVID-19 pandemic and its impact on long-term care. They were reflected — longer visits, multiple visitors and so on — in the changes we brought in March 25, and those recommendations will be, and are, strongly considered in the coming changes we hope to make to improve visitation in long-term care.
S. Bond: I will ask this last question, and I am hopeful that the Leader of the Third Party…. Is she appearing virtually? I wanted to make sure that they had adequate time to do their questions. I think the Clerk is nodding.
There’s the Leader of the Third Party. I know that she will have some questions to wrap up our day today. I wanted to be sure she had as much time as she needed.
Let me just finish this section, then, with this question. Considering the conversations that we’ve been having about the impact not just on residents but on their families, one of the recommendations that was critical is the suggestion that there be a long-term-care and assisted-living residents and family council association. Unless I missed that response in the minister’s….
I’m wondering if that is being seriously contemplated. I think now more than ever, that would provide a place for that voice that is so essential at this point in time. I’ll make that my last question for this afternoon, wait for the minister’s answer and then turn the floor over to the Leader of the Third Party.
Hon. A. Dix: Yes, I think that’s a little bit what I was indicating to the Leader of the Opposition earlier. There are proposals dating back to, I think, 2015 about an expanded formal role for family councils. Some of that has come out of Vancouver Island. That will require, I think, regulatory changes and will require, also, some supports for family councils.
As I said to her, I think one of the things that we need to reflect on is the need to ensure that families and residents have a greater voice and a greater say. That only happens, inevitably, without being critical of somebody or somebody else, when these circumstances are formalized.
I think it’s the point I made earlier. There’s no right or wrong here. The recommendations were made in ’15. They weren’t implemented by the previous government or recommended by our government yet. But what I’d suggest to the Leader of the Opposition is that we do have proposals before us, and we’re actively considering those proposals.
I would be happy to share those proposals and that information, both with the Leader of the Opposition and the leader of the Green Party, in their respective roles as Health critics and seniors critics — and that we’d have a discussion about what that would look like. We would do that in the next little while. We are proceeding. Those recommendations are before me.
I got a briefing note not long ago. Occasionally this happens, I say to the Leader of the Opposition, when I’m not entirely satisfied with a briefing note. It happens one out of every 273 briefing notes that I receive. But it’s not for any reason….
The teams are working on it, so we wanted to engage in some other options. Why don’t we engage in them together, with the leader of the Green Party’s interest in those very issues, and see if we can’t…? I say that because I think it’s important coming out of this period. We’re still going to be in it for a while. COVID-19 is going to continue to be with us. We’ll talk probably later in estimates about what that means.
But this would be a message coming out of it, of an expanded institutional role for families. It’d be something that I think, as we’ve done before with the opposition and the Green Party, we could recommend and move forward unanimously.
S. Furstenau: Glad to have a few moments here to ask some questions. I’ve been listening. We were going to canvass very similar questions on the seniors advocate report, so I’ll just jump down to the other questions that we had around long-term care. These are questions that we submitted last year in writing. We didn’t get a response, but I recognize it has been a year unlike any other, so I’m coming back to ask some of these same questions again around funding for long-term-care homes and, in particular, for-profit care homes.
My first question is: can the minister confirm that for-profit homes have the ability to use public funds to pay their mortgages, and whether these homes are required to disclose this information in their annual expense reports?
Hon. A. Dix: Yes and yes.
S. Furstenau: I did ask the minister yesterday if he was going to be as speedy as last year, and apparently, that is his intention.
Can the minister just provide some explanation of how the ministryoversees the use of public funds across the care home sector?
Hon. A. Dix: What we’re doing, I think, at this time in the pandemic — but it’s work that has been taking place over the last six to eight months — is we’re working to take action committed to developing what I call a standardized provincewide funding model for long-term care. More transparency is required, more equity, more consistency and sustainability with respect to funding. What we hope to do is to align that funding model with a provincial quality and accountability framework to support the delivery of quality care.
One of the advantages, I think, of the single-site order that was put in place by the provincial health officer — and effectively by health authorities and by a very significant government investment — was that it puts back the lens not on competition between care homes on the issue of wages but rather on quality.
What we’re going to work with, working with the sector…. The seniors advocate has had a word in her report. We’ve had advice and will continue to have advice from the sector but also from others who are interested in long-term care.
My goal — our goal — is to ensure that money is well spent. My goal and our goal is to ensure that there’s fairness across the sector. I think we’ve gone a considerable way to doing that by raising care standards — the 3.36, which has been achieved in every health authority now, average staffing per resident day, of direct care per resident day, which is a significant change. The move to the single-site order is a second key element of that change. And a change in the accountability and ensuring a provincewide model that makes sense, that people can understand between care homes, is a third part of it.
So those three things are happening, because I agree with the member that some changes are required. We look forward to working with the sector, but also, some excellent work has been done within the Ministry of Health on this subject.
S. Furstenau: Just further to that, I appreciate the minister’s response, to talk about an accountability and quality framework and to ensure that there is that transparency and accountability.
Can the minister square the answers to the first and second questions? Is it, in the minister’s opinion or view, an appropriate use of public funds to pay for mortgages as opposed to ensuring that those public funds go specifically into the care of people? I’m really just interested in the minister’s take on this and how that would fit into the quality and accountability framework.
Hon. A. Dix: I think that one way of looking at it is when we build public acute care hospitals — and we’re building quite a few of them across British Columbia right now — and with major hospital projects, ultimately we pay for our capital in that process. Similarly, over the last number of years, there have been a number of care homes added where we contract to private providers to build and then to operate care homes. It would be normal in that process for some of the….
Essentially, the benefit to the province is not taking on the direct debt, but there’s a substantial obligation over time to pay for that and to pay the provider to provide publicly funded long-term-care beds, either in a not-for-profit or for-profit situation.
I think all of that is what one expects in that kind of system. But I think what is reasonable to know and to be accountable for is the expenditure of money within that. That’s what my mandate letter asked me to do. That’s what we’ve been working to do.
Because of the changes that have been made, I think the expectation of changes around quality is going to be there. We have to work in such a way as to ensure that people who are in public beds, whether they’re in a contracted provider or health-authority-owned-and-operated provider, receive very significant…. That they see an equal level of care. That’s why a lot of the money, in terms of the raising of care standards, has gone to those living in those contracted providers. They were lower at that time.
I think the key here is transparency and accountability and ensuring care standards are high. That’s what we intend to do. I don’t know if that squares it for the hon. member.
I would say that if we were to pay…. And we will be. We have a very ambitious plan to build out and to replace existing long-term-care homes that are health-authority-owned-and-operated. That’s an expenditure on capital by the province. That means the incurring of debt and the paying of, effectively, mortgages, albeit by the public system.
S. Furstenau: I appreciate that information and explanation from the minister.
I just wondered. The mandate letter, as the minister spoke to, is about reviewing this and looking at this and increasing the accountability and transparency in this sector. Does the minister anticipate any kind of significant change to the vision for the future of long-term care based on, again, what he has seen over the last year and a half but also from any kind of preliminary work that he’s been doing on building this framework and looking at the sector as a whole?
Hon. A. Dix: I feel like I could give a speech, but I’ll be very respectful of the member’s time.
What do we want to do? We want to improve care standards and the quality of care with a focus, I think, on quality of life. In other words, provide supports to improve the quality of life in care homes, not just to make people safe, not just to keep them alive and healthy but also to allow a better quality of life in long-term care. That’s a key priority for me.
Secondly, it’s to replace multi-bed rooms in long-term care, most of which are in the public system. Most of the investment, over the last 20 years, in new capital infrastructure has been in the contracted sector. So we need to replace….
For example, in Kamloops, there’s a care home — which has not had an outbreak, I don’t believe, in this pandemic — called Ponderosa, which the member opposite probably has visited, and I’ve visited. It’s on the Royal Inland site. It is of a certain age and multi-bed rooms. It was built at a time…. It served the people of Kamloops unbelievably well, as for the people who work there, as for the people who are living there, but it’s not a 21st-century care home. So we’ve got to replace those.
We have to rebuild and improve the capital stock of the health-authority-owned-and-operated sector. We’ve done an enormous investment in hospitals, which you’re going to see over the next number of years. If you’re talking about capital priorities in the Ministry of Health beyond those existing projects, the main capital priorities are going to be in long-term care. You’re going to see that in the next little while. So improving that capital stock is very important.
Training, developing a new workforce, promoting a new workforce, ensuring that workers are treated fairly, ensuring that workers have stable, family-supporting jobs in the sector, which means they can commit to the seniors they’re serving for years to come, are key priorities. That’s why we got rid of Bill 29 and Bill 94 and have made the changes around the single-site order that have made it the only place in Canada where the single-site order has been truly effective. Those are all significant changes. Then, with the contracted sector, working through this issue of accountability around our contracts, issues that have been raised by the seniors advocate and by many people for a long time.
That’s, already, quite a bit. Also, I feel — and, hopefully, people in B.C. feel — a sense of profound obligation to everybody in long-term care for what they’ve experienced in this pandemic. B.C.’s results have been better than all the other jurisdictions in Canada, but surely, that matters not one whit to people who haven’t had a visitor, people who have suffered outbreaks at their care homes. While we acknowledge that, I also consider that a debt to the future to improve the quality of long-term care.
S. Furstenau: Actually, I appreciate the speech, short as it was, from the minister. I think it is really important for us and for the public to be able to hear and have a sense of the minister and the government’s vision for the future of long-term care. I think it’s important to have that clarity around what the work is and what’s coming and where the minister hopes that work will lead. I think it is important.
Just coming from the minister’s comments, COVID-19 certainly has highlighted a lot that we, as a society, have had to come to terms with around seniors care and around long-term-care homes. In light of this, I think a lot of people are wondering about the possibility and the options of seniors staying home, being supported by families, more than going into long-term-care homes.
Can the minister speak a little bit to any changes that have come in or been introduced or will be coming around being able to better support seniors in their homes or in families who want to keep them in their homes?
The Chair: Minister.
Hon. A. Dix: Thank you very much, hon. Chair. It’s still really good to see you there, I have to say. I can’t get over that. I’ve known the hon. member for a long time and to see him as an MLA here in the Legislature is just an amazing thing.
I would say, in terms of what we need to do in the community…. We’ve spoken about this a little bit in the estimates, in terms of how we need to deal with things. I think it’s important to recognize…. I was telling the Leader of the Opposition that we’ve immunized 985,000 seniors. There are only 30,000 seniors in long-term care. There’s a natural focus on long-term care. But at the age of 65….
When we started public health care, life expectancy was about 69 or 70 years. Life expectancy now has increased to about 80 years, a little above 80 years. In general, life expectancy at 65, when you become a senior, is actually quite significant. It can be 23, 24, 25 years. You go through significant numbers and period around that.
What do we need to do? We need to, of course, continue to build out home support. We’ve invested significantly in that. The federal government, to their credit, has invested significantly in that. We’re just going to see and continue to see an increase in ours.
Community-based professional health care services. We saw remarkable one-year increases in both 2018-19 and ’19-20, and we’re seeing significant ones this year, although there are some changes in the model, including making some aspects of it virtual. You’re going to see those continue to rise. That’s been a significant focus.
The seniors advocate worked with us to recommend significant increases in respite care, which are critical for families to support people to stay in community. That’s a third set of things.
We saw the largest increase in adult day programs in ’18-19 and ’19-20. In ’20-21, because of the orders that we’ve had to put in place, those programs have gone back and, in fact, have been, for a good part of that time, suspended. They need to be significantly increased in community.
We have to find ways in terms of developing seniors housing, especially in our cities but in other parts of B.C. where housing is extremely expensive, to allow seniors to remain in community, to never make it a better deal to go into long-term care. Not that it’s easy to get into long-term care — you have to be assessed — but to never make it that way.
There are significant efforts that are beyond the Ministry of Health that we need to work on, including with cities, to make all of our cities more senior-friendly in a time when we’re going to see a dramatic increase in the number of seniors in our province.
All of those are elements of the health care things we need to do, but I think there are some societal questions that we have to ask about adjusting to a society where we’re going to have more and more seniors and ensuring that seniors can continue to play a valuable role in all aspects of our society.
I move that the committee rise, report resolution and completion of the estimates of the Ministry of Agriculture, Food and Fisheries and report progress on the Ministry of Health and ask leave to sit again.
Motion approved.
The committee rose at 6:16 p.m.