Second Session, 42nd Parliament (2021)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, June 17, 2021
Afternoon Sitting
Issue No. 98
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
Bill 4 — Budget Measures Implementation Act, 2021 | |
Bill 6 — Accessible British Columbia Act | |
Bill 7 — Electoral Boundaries Commission Amendment Act, 2021 | |
Bill 8 — Public Safety and Solicitor General Statutes Amendment Act, 2021 | |
Bill 10 — Municipal Affairs Statutes Amendment Act, 2021 | |
Bill 11 — Miscellaneous Statutes Amendment Act, 2021 | |
Bill 16 — Supply Act, 2021–2022 | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
THURSDAY, JUNE 17, 2021
The House met at 1:03 p.m.
[Mr. Speaker in the chair.]
Routine Business
Introduction and
First Reading of Bills
BILL Pr401 — UNITED CHURCH OF
CANADA AMENDMENT ACT, 2021
K. Paddon presented a bill intituled United Church of Canada Amendment Act, 2021.
K. Paddon: I move that a bill entitled United Church of Canada Amendment Act, 2021, standing in my name on the order paper be introduced and read a first time now.
The United Church of Canada was incorporated by an act of the federal parliament in 1924. Certain rights and powers, specifically with respect to property of the United Church of Canada and United Church congregations in British Columbia, are governed by the United Church of Canada Act, which was enacted in 1924 and amended once in 1927.
In 2015, the United Church of Canada’s 42nd General Council, the national governance body, adopted a motion to initiate a consultative process with congregations across Canada, called a remit process. The question at issue was the restructuring of the national church from a four-court structure to a three-council structure. The remit was undertaken, and the results of the remit were in favour of a restructuring.
The remit and resulting restructuring were confirmed by the United Church of Canada’s 43rd General Council on July 22, 2018. This restructuring and governance modernization process required amendments to the federal act and now requires concurrent amendments to the provincial act in British Columbia, as has been sought in other provinces.
Specifically, this United Church of Canada Amendment Act, 2021, amends certain definitions to allow for the new three-council structure and amends a certain section of the schedule A to the act, the trusts of model deed, to reflect the changes in governing bodies that have oversight over congregations on matters of property.
The act is nearly a century old, and to preserve its integrity, the proposed amendments modify only the bare minimum required to effect the change in the governance structure of the United Church of Canada.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Mr. Speaker: Members, pursuant to Standing Order 105, the bill stands referred to the Select Standing Committee on Parliamentary Reform, Ethical Conduct, Standing Orders and Private Bills.
Bill Pr401, United Church of Canada Amendment Act, 2021, introduced, read a first time and referred to the Select Standing Committee on Parliamentary Reform, Ethical Conduct, Standing Orders and Private Bills.
Orders of the Day
Hon. L. Beare: In this House, I call the estimates of the Ministry of Finance, followed by the estimates of the Legislative Assembly and the officers of the Legislature.
In Section A, I call the estimates of the Ministry of Health.
in Section C, I call the estimates of the Ministry of Transportation and Infrastructure.
Committee of Supply
ESTIMATES: MINISTRY OF FINANCE
(continued)
The House in Committee of Supply (Section B); S. Chandra Herbert in the chair.
The committee met at 1:08 p.m.
On Vote 26: ministry operations, $307,466,000 (continued).
M. Bernier: I was just waiting to see if the minister was going to start off, but I guess we’ll just jump right into it. I only have a few more days’ worth of questions for the minister. I don’t know if I’ll have time to get through them all, though. I hear the disappointment that the minister has, as well, in the fact that I won’t have enough time to get through all of the questions that I have.
But in saying that, I want to jump in to a few specific points today. I have a colleague from Richmond North Centre who will join us in a moment. But I just want to set the stage here. This topic is around the speculation and vacancy tax. I want to talk about that a little bit.
It’s been around for a couple of years. Obviously, when the government brought this in, it was really about…. I think the way it was presented was about speculators. It was, really, targeting a lot about foreign money that might be coming in and helping curb or shape the supply and demand in raising the costs of homes, and homes being used for a speculative purpose.
Unfortunately, what we’re seeing now, in this year specifically, is…. We have a lot of British Columbia residents, people who live in their homes and for different reasons…. Due to the format and the application criteria that this government has put in and has not really changed, it’s now targeting a lot of British Columbians — people who have lived in their homes for years, people who have owned their homes, in some cases for decades, some who have now vacant land — that are being charged a speculation tax, and on vacant land.
I want to read one quote just to kind of set the stage here. Some of the things that we are hearing…. And I know the minister is hearing these issues as well — and why we’re pushing, challenging, asking the minister to really take a closer look at this tax, what the intent was to begin with. And then also on that, is it still achieving those goals, or is it actually disproportionately now affecting British Columbia residents who, through no fault of their own, are being forced to pay a tax that most people…? Most rational people, I think, look at the situation that those people are in. They should not be having to pay that tax.
We have a multitude of examples that we could present in this House. A lot of them have a similar issue, which is that people are living in their houses, or because of where they receive some of their funds, they have to pay a spec tax. I have one from a woman in North Vancouver who is very distraught. She’s on a pension, but because she moved to British Columbia and her pensionable earnings are coming from Alberta, she cannot show on the documentation that her revenue comes from B.C. So now she’s a speculator.
These are the kinds of weird loopholes that I think the ministry needs to take a closer look at it so we’re not negatively impacting and penalizing British Columbians.
I do want to read this one. I’ve got pages and pages, but I’m only going to read one for now. This is a quote from a person in Nanaimo.
“I am disgusted. I just completed my speculation tax forms, and I have found out that you are making me pay a speculation tax on a bare piece of land. We are citizens of B.C. We’re told that the speculation tax was to deter foreign investors from purchasing homes and leaving them vacant and driving up the prices of real estate. That is how this government presented it. But now, because I have a piece of property that I have been trying to sell for a number of years, a vacant piece of land, the NDP government is making me pay a tax.
“This is sneaky. It’s a dirty cash grab, and what an underhanded way of handling this tax and penalizing British Columbians. You are targeting the middle class, and you are making us suffer.”
Now, that was Catherine from Nanaimo. As the minister can appreciate, I have stacks and stacks of these, and most of these have been delivered to the minister and to her ministry, but I have yet to hear the minister really talk about how they’re going to look at changes. So I’m going to give her that opportunity today to talk about how they’re going to maybe relook at this tax or, on the record, say, “No. We’re satisfied with it, and we’re going to keep it exactly the way it is,” which will continue to penalize British Columbians.
Maybe before I turn it over to my colleague, I will ask one question just to start this off. How much is collected for this budget cycle, earmarked to be collected? How much was collected in the 2020-21 budget from the spec tax, and how much is budgeted to be collected in the ’21-22 budget — on the speculation and vacancy tax?
Hon. S. Robinson: When we introduced the speculation and vacancy tax, our province was at a very significant point of real estate crisis, and moderation of the market was very long overdue. It had been ignored for far too long. Certainly, the next generation…. I believe that the member’s children…. I think the member, in fact, was talking about his daughter who is living now in Vancouver and the challenges of finding an appropriate place to live and just how significant that has been for far too long.
We brought in a speculation and vacancy tax, part of our 30-point housing plan, to help make housing more affordable, to make sure that we’re addressing the speculation in the market. Some might call it holding on to land in order to wait for the prices to go up so that you could cash out, so to speak. In order to help incent those to either, if there was a place to live on the property, at least rent it out or, if it was vacant land, to start developing it or sell it to someone who would develop it.
Because that was hurting people. It was hurting our children. It was hurting, certainly, the next generation. And they’re still continuing to hurt. I think the member would agree that they’re continuing to be challenged with housing so it’s with that in mind. But we also certainly recognize that speculation by those not paying taxes here was a particular problem, so we structured this tax to address that as well.
The intent was to turn empty houses into homes for people, to discourage real estate speculation and ensure that homeowners who report the majority of their income outside of Canada pay their fair share of taxes. So it was designed in all of that capacity. It exempts 99.9 percent of British Columbians. It’s a very small percentage of British Columbians that do get captured here.
After reviewing the data from the second year and from hearing from local leaders and communities and those impacted by the housing crisis, we made some additional improvements to build on the success of our first two years. So making some adjustments has been a part of how we have operated as a government. I just, in fact, tabled a report yesterday about some other feedback. We consult with the mayors, so that report was tabled yesterday as part of understanding the impacts in communities. We continue that process, and we will continue that process.
Now, what I will share — the specifics of the member’s question were wanting to understand how much was collected in 2021 and how much is budgeted for this year. In 2021 in the first quarterly report, the revenue forecast was revised from $185 million to $80 million, reflecting a decline in observed revenue. We saw, certainly, the filings, because of the timing of when people file and when budget is done and when Public Accounts comes in. There’s a bit of a challenge around the timing. But certainly, what we were seeing is that more and more people are choosing not to pay the tax. They’re choosing to rent out their homes.
We saw thousands and thousands of liveable units come onto the market so that people can rent a home. So instead of them sitting empty, collecting dust, we are seeing that when we actually change the rate from 0.5 percent of assessed value in the first year of the tax, we didn’t see as much rental come onto the market. When it went to 2 percent for foreign owners, it had a behavioural effect, and we saw, certainly, more homes come available for people like the member’s daughter, so that they’re actually lived in. That’s made a difference.
As a result, we are recognizing that there are lower revenues. We see this as a good thing. I know that that’s really hard for some folks to believe. As the Finance Minister, we really prefer to see revenues. But in this case, this is really about making sure that safety deposit boxes in the sky are lived in, at a minimum. At a minimum.
Our rental vacancy rates had been severely challenged in the Lower Mainland. I know that the Chair is well aware of that, given his role with the Rental Housing Task Force a number of years ago, and making sure that we were using these investments for a good purpose. That’s so that people can have a place to live, and there’s certainly more work to do on that file. But this is making a difference in so many lives.
M. Bernier: Thank you. I’m going to turn things over right now, then, to my colleague from Richmond North Centre, just to give another example of some of the struggles. I will then, after her, come back to some of the comments. I didn’t quite get the full answer from the minister of what’s projected in the budget for 2021. I’ll give her an opportunity afterwards to do that, maybe.
To the Chair, maybe I’ll turn things over to him to recognize my colleague.
T. Wat: I’d like to thank my colleague from Peace River South for giving me my time to talk about my constituent’s situation, knowing that there are so many of my colleagues that have been unfairly taxed by this so-called speculation tax.
Before letting the minister know about the plight of my constituent, I’d like to quote a sentence from him in his appeal letter to the ministry dated June 10, 2021. He said, and his name is Tony Chan: “If the intent of the tax is to improve the life of British Columbians, then this has failed miserably and in fact has likely imposed additional hardship to many unsuspecting citizens besides me.”
Let me talk a little bit about my constituent, Tony Chan. He is 64 years old; he’s a retiree. Tony approached me in March 2020 regarding his speculation tax assessment. He owns and has lived in his Richmond townhome for the past 20 years — two decades. He has been constantly corresponding with my CA and talking to her, and I’ve talked to him a couple of times, for more than half an hour each time.
His wife is an American citizen and owns her home in the States. They are not on title to each other’s property, but the ministry has asked him to pay almost $15,000 in speculation tax, in spite of the fact that he has lived in his Richmond townhome for the past 20 years. Tony was married long before this tax was even considered. He has owned his own home, like the majority of British Columbians, for many years before this so-called speculation tax came to light.
Tony cannot direct his wife to not make more money than he does, and he certainly will not divorce her. He cannot simply go out and get a high-paying salary at his age of 64. So how can he afford this $15,000? Tony told me that the only alternative for him is that he would be forced to sell his home of 20 years in order to pay an annual tax of $15,000. That should not be required of any average citizen who has lived in his own home for two decades.
I really feel for the plight of Tony. On behalf of Tony, we have asked the Ministry of Finance, twice, for a reconsideration, but the answers remain the same. Tony just wrote another letter, dated June 10, to appeal the ministry’s decision. I would really appreciate it if the minister can explain why a British Columbian — a Canadian citizen and not a speculator — has to pay speculation tax, when he owns his home and has lived there for 20 years.
Hon. S. Robinson: My understanding is that there is an appeal in progress, so I can’t speak to any specific taxpayer. There is, however, an annual review of this tax to see how it’s working, to see how we can make it work better and to identify where there might be loopholes. So this is an ongoing process that we are committed to continuing to review.
We have a situation where 99.9 percent of British Columbians do not have to pay this tax. That’s a very important thing for us all to remember. That was how it was constructed. Because this very specific case is under appeal, I can’t comment about any specific one taxpayer.
T. Wat: Before I pass the floor back to my colleague from Peace River South, I just want the minister to know that Tony Chan, in his appeal letter, did say: “Your letter” — meaning the Minister of Finance’s letter — “actually acknowledged that this tax is unfair to me, yet no relief is offered.” The minister should know that the minister’s staff admitted that the tax is unfair to my constituent. So I appeal to the minister. She should take a look.
I know that it’s under appeal, but if this creates hardship on my constituent, I’m sure it will create hardship for many other constituents, which is not the intent of this speculation tax at all. I’m sure the minister must fully agree with me. So thank you for the minister’s attention, and thank you for the time.
M. Bernier: Thank you to my colleague for bringing that example forward. As she said, there are lots of others like that. I’m hoping that the minister, since the minister acknowledged…. In this specific case, this constituent has appealed and got what appears to be a form letter back saying: “Thanks for the appeal. We’re not changing our minds.” So he’s now written to the minister and said, basically: “Yeah, I’d like to appeal this appeal on the fact that it’s not only a hardship.” But in this case, it’s a perfect example of, I think, the unintended — I would use those words — consequences of the policies that this government put forward around the speculation and vacancy tax.
Since the minister’s staff appear to be aware of it, from the commentary that I heard there, it’s my hope, then, and my ask that when we are done here, the minister can direct her staff to maybe look at this one a little bit more closely and hopefully, if nothing else, report back to my colleague from Richmond North Centre on what the process will be. This constituent has been very active in explaining their hardship, their concerns with this tax. I know that the constituent and my colleague would really appreciate this one being looked at a little bit more holistically. I hope the minister will consider doing that afterwards.
I was going to continue on, on this. I’ll come back to talking about the speculation and vacancy tax. But I just want to say, first of all, I’m quite surprised. Here we are on the last day of session. We’re in the House on Finance estimates. While we’re in this chamber, the government, on the last day, just now, puts on the government website a report from the panel around affordability. This is the panel that was chaired by NDP’er Joy MacPhail, where the government appointed her to work on this panel to come back with recommendations.
I think the minister will agree that since this was just put on the website, I haven’t had a chance to look at the entire report. As she was just answering the last question, I was quickly looking at it. But I can tell you I’m quite surprised, and I want to bring some things to the attention of the minister.
This is a panel that the government has put together around affordability. I get that. But I think it’s really important today, since the Premier’s not available to answer these questions, that the minister, on behalf of government…. I think it’s really important that the minister does.
One of the very first things that this panel is recommending, which goes to the heart of almost what we’re talking about right now, whether it’s homeowner’s grant, speculation and vacancy tax, all the different tools the government has that are helping people get into or stay in housing…. Let me just say how shocked I am to see that some of the first two recommendations that have come forward are to review and eliminate the capital gains tax exemption on principal residences and to phase out and eliminate the homeowner’s grant. Those are two of the top recommendations that this panel has put forward.
Now the minister has stood up in this House in the past when we’ve been debating and taking about these specific issues, especially the homeowner’s grant. When we were talking about this one, the changes were made in December. The minister was on the record saying that there were no intended changes and they were not doing anything to get rid of the homeowner’s grant. The government and the minister’s own panel is now recommending they get rid of the homeowner’s grant and get rid of the capital gains tax exemption on principal residences.
Real easy to solve this today, because this goes against pretty well what we’ve heard in this House. Is the minister able to stand up today and acknowledge — first of all, this report is just out — that she, too, would be surprised by those recommendations, since that goes against some of the comments we’ve heard in this House, and that she’ll today publicly say that they will not be accepting those recommendations?
Hon. S. Robinson: I think it’s important to understand just who this panel was. I believe it’s an expert panel that was put in place. It was before my time as Finance Minister. I believe it was — I want to say — maybe 18 months, 24 months ago. It was to the previous Finance Minister federally, Bill Morneau, and to the previous Finance Minister, Carole James, here in this chamber. There has been significant change. Chrystia Freeland is now the federal Finance Minister, and I am here.
So this report has come to us to help identify what more we can do in addressing the housing crisis. It’s not just here in Vancouver. We know that Ontario is having a significant challenge as well. So the report was delivered to the federal government as well as to our government. They’re an independent group that was tasked to go out and come up with some ideas.
I haven’t had a chance, either, to dig into this report, but what I can absolutely assure the member is that we are not interested in making any changes to the homeowner grant. I have said that before, and I am saying that again today. My understanding is that the federal government, CMHC, has also just issued a release that says that they are not interested in making any changes to capital gains either.
M. Bernier: I appreciate that and thank the minister, because we have had that discussion in the House. I wanted to ensure, obviously, as I am just getting the report now. It’s one of those surprising things. I know what happens when it comes on the last day of session when you don’t have time to dive into it holistically to look at the rest of it, but of course, that flagged for me right away. This is one of those things where the Premier and the Minister of Finance, I think, can stand behind their commitment.
Obviously we all, in this House, want to ensure that we have opportunities for people to get into the housing market, but that also shouldn’t come as a penalty to those who have been fortunate enough to already be in the housing market. The minister has acknowledged in the past, when we debated the homeowner’s grant…. So I’m encouraged to hear from the minister today that they have no intention of accepting those recommendations. I’m paraphrasing what the minister said, but I appreciate that.
With that, Mr. Chair, if I can, I’m going to, through you, hope to acknowledge my colleague from Kelowna West, who has a few questions on a different subject for the minister.
The Chair: Happy to acknowledge a member when they rise.
B. Stewart: I hope that this question…. Because of the changes that have been made by the government in terms of responsibilities around liquor control, liquor licensing, the LDB and taxation, there’s a very specific…. And this is probably something that is not necessarily on the minister or the minister’s staff about taxation. However, when an importation of wine is brought into the province of British Columbia, the CBSA does its job and collects tax. They see it as alcohol. There’s a tax that is put on all alcohol imported into the province.
So the confusion and the opportunity that is missing or needs to be addressed is that there are laboratories that have developed as part of the wine industry in British Columbia. From the time, the early days…. I say that meaning when most laboratory work was done in-house. Now with the numbers and the number of small wineries, they rely very heavily on a particular company that’s set up in Kelowna called Supra laboratories. They do analysis of work. Of course, you will perhaps remember that there are different things that can affect the flavour and taste of wines. One of them happens to be smoke taint.
Now, what happened in the last couple of years, in California, is that they’ve been overwhelmed. Their laboratory system has consolidated down to one main specific laboratory, and this particular company went out to attract business into British Columbia, and it is literally hundreds and hundreds of samples that they need to analyze. But the problem is that they’re now being assessed as if they’re importing wine samples.
What Rob O’Brien, who owns this laboratory, is asking for is: how do we navigate through the taxation system to find a way for analytical purposes being able to exempt these wines that are coming in for an analysis? They’re not for resale. And being able to make it clear. Because this confusion, which happens around this tax that often gets punted around in government…. How can we help Mr. O’Brien find a solution — and other laboratories that have that opportunity to capitalize on the opportunity here in British Columbia, all over?
Hon. S. Robinson: I want to thank the member for bringing this to my attention. I don’t have an answer for him just yet. But it would be helpful — because I’ve got a bunch of different people talking to me — understanding which tax specifically he’s speaking to. That would be really helpful.
B. Stewart: I can only assume that it’s the same tax on any wines that are imported into British Columbia for the sale, whether it’s private or through the BCLDB.
The taxation, as far as I can recollect, is about 110 percent of the landed cost. That tax is assessed. If you’re bringing it across a land border or you’re flying it in as a personal importation, it’s all the same, as far as I know. I just would like to have been able to….
I wish I could unravel and figure this out myself. I’ve been confronted with this many times — the fact that I’ve had an entire lifetime in this business — and it’s always complicated. I just pay the tax and don’t bother fighting it. But these guys are trying to make a business out of this and create an opportunity to take well-educated lab technicians and specialists in this area. It would be great if we could become the leading place in North America for this assessment.
Hon. S. Robinson: After a bit of bouncing around and trying to figure out what the likely tax is, there is some suspicion that it might be the federal excise tax. But what would be helpful and I’d like to offer the member is that perhaps we should talk outside of this venue to understand more fully what’s going on so that we could help navigate the exact tax and the exact department where we can try to problem-solve this together. I want to extend that invitation to the member to reach out so that we could sort this out.
I look forward to learning a little bit more about what this business is doing. It sounds absolutely fascinating, and we’ll see how we can be helpful to fix this.
M. Bernier: Before I move on, I just want to maybe go back, if I could for a second, to the report. What is the role of the minister? As she said, it’s gone to the federal government. What is the role of the minister, then? Does this report go to her directly? Does it go to the Premier? Does it go to cabinet? Who is the one…?
I apologize if the minister already said it in her initial response — just to have a further discussion on this. I think it’s really important that we get some of this on the record just to, if nothing else, ensure that people who might read this report understand the direction that government chooses to go, which we understand is obviously around affordability. But there are, as I mentioned, some recommendations in here, at first glance, that people could be very worried about, very concerned about. I think it’s an opportunity just for a respectful dialogue, if I can say it that way, for the minister so we understand what the minister’s role is.
Again, I will understandably acknowledge that this took place prior to the minister having the present role that she has. But she’s now in the role as Finance Minister, so is this going to the minister? Has she been briefed already? Has she already been briefed on this document? If so, was she aware of these recommendations, or are there further briefings coming? Then who is going to be having the final decision on what recommendations to consider and how this report will be utilized?
Hon. S. Robinson: I think it’s important to remember the context again. You know, there has been a significant housing affordability challenge. When we formed government in 2017, we tackled it head-on, and early in 2018, we came out with the 30-point plan. The work always continues. We’re always looking to do more.
In September of 2019, it was the government of Canada and our government that commissioned the Expert Panel on the Future of Housing Supply and Affordability to identify additional measures that could build on our investments that we were making and initiatives that were already underway to help more people find affordable housing in British Columbia — and in Canada, frankly. I know there are some ideas in there that I believe other governments might be interested in taking a look at.
The expert panel has been chaired by Joy MacPhail, and there were other members as well — Jill Atkey, Jock Finlayson, Brian McCauley, Sue Paish and Helmut Pastrick. These are well-respected people in their fields. I see the member from Kelowna nodding. These are people who know a little something about this. I want to thank them. I want to take a moment to thank them for their hard work in engaging with everyone, from the financial sector to the housing sector, recognizing that we all need to be working together to address housing affordability.
The member may not be aware, but they did release, in December 2020, a what-we-heard report that was available, in terms of understanding what they were hearing. Then they continued to go and do their work. The report, I understand, was released earlier today. The Canada Mortgage and Housing Corp. was releasing the report. Because it was a joint report, it required, certainly, working with the federal government. I know that the member has been on this side of the House. It’s not always easy to coordinate, so they release the report.
I haven’t been able to roll up my sleeves. I’ve been busy preparing for estimates, so there is a pile on my desk. It’s not just these binders. There’s a whole other pile, and that is on a pile. My understanding, in a very cursory review, is there are a number of recommendations.
I think it’s clear, just from recent economic factors that we’re seeing, with historically low interest rates and the impact of the pandemic, that we’re continuing to see volatility in the market. In some parts of the market, there is a settling out, but in other parts, it’s not the case. We all know, and I think we can all agree, that all orders of government have to work together in order to make it work better.
I keep coming back to it, and it rings true for my kids as well. I heard the member from Peace River talk about his daughter moving to the Lower Mainland and having a hard time finding housing. I agree, and my heart goes out to them, but my heart isn’t good enough. We have to be doing more to support this next generation in finding ways that they can find the housing that meets their needs but, more than that, that they could settle into, whether it’s home ownership, something that they can afford. Even when they have decent jobs, it’s really hard for them to do.
I also want to take a moment, if I can. Since we launched Homes for B.C. in 2018, we’ve made significant progress in some significant key areas. We’ve cracked down on tax fraud, and we closed loopholes. We have about 30,000 publicly funded homes that are complete or underway, with more to come. Every day I see more and more housing that is affordable, that we started building two years ago and that is now homes to people.
That’s what this is about. It’s about people. With this budget, we’re building an additional 9,000 homes for middle-income people, and some of that is home ownership. We’re looking at different models in order to make that available for people.
We’ve brought back a number of rental units — 18,000 is what we’ve been able to do and what our analysis indicates — because we’ve implemented the speculation and vacancy tax. That’s made a significant difference to renters, being able to ease some of those pressures.
Other work that is underway, which I’m very proud of — I was the Minister of Municipal Affairs, and we started this work; and I know that under the new minister, it will be ably stewarded and we’ll see more results — is improving and streamlining the development approval process.
We’ve certainly heard, in some communities, not in all communities…. I believe Langford has the fastest turnaround time, but there are other communities that really are very slow. They’re very bogged down, and it creates a tremendous backlog, not just on government-funded housing but on the private sector. That’s the number one issue that the private sector has certainly complained about when it comes to building housing: things need to move faster. Time is money, and the faster they can move on getting housing built, the lower the costs, but also, the sooner people can move into homes.
These are the kinds of things that we’re doing. In March we launched a $15 million local government development approvals program, encouraging local governments to look at best practices, innovative ways to support non-profit housing organizations, developers and others to deliver essential housing to people around the province.
It’s going to take a sustained level, frankly, of action to tackle the crisis. We know it won’t be solved overnight. Here’s one more piece for us to roll up our sleeves and dig into, to see what more perhaps we need to be able to do. We brought in legislation early on to require all local governments to do a housing needs assessment, all local governments of a certain size. Small communities don’t need to. They sort of…. They can count how many homes they have; they don’t need, perhaps, a full assessment. But again, it’s so that we understand what the housing stock is and what anticipated needs are.
We’ll certainly be taking a look at this expert panel. They were tasked to go out and find what more we should be doing, where we should be prioritizing, how we should be thinking about what we need to do, because it is critical. It’s absolutely critical that we continue to address housing affordability. Our economy depends on it.
We’ve certainly heard from employers who can’t find employees because employees can’t afford to live in their communities. The example that I’ve used before in this House is with the North Shore and the Lower Mainland, particularly when it comes to building housing. They can’t find workers, because workers tend to only be able to afford to live, perhaps, in the Fraser Valley or elsewhere, and they don’t want to deal with the traffic to come. There are other projects for them to work on in the Fraser Valley, and so as a result, it’s really hard to find workers to work on the North Shore.
That’s really, I think, a problem for all of us to wrap our minds around and to be dedicated to addressing so that in places like the North Shore, there could be homes that those folks can afford to live in so that they don’t have to travel for work.
I’m going to take my seat now. I know that there’s more that I have to say about this. And I look forward to the next set of questions.
M. Bernier: I have another colleague that will ask a question in a second. But I just want to say for the minister…. Of course we’re looking at this report. One of the questions was, obviously, around some of the specific recommendations. The minister is already on the record — spoken, I assume, on behalf of government — that they’re not going to be following through with those recommendations.
But I also want to acknowledge…. I understand completely when expert panels, if we use that term — and I think it’s probably an appropriate term — are put together to come forward with recommendations. But the final decision still lies on government of the day to look at those recommendations and make the determination of whether that’s practical on the ground, that it’s practical in terms of government’s direction they choose to go and it’s also in the best interests of the people.
I look at the other expert panel, for electoral boundaries review. They’re going to come forward with a whole bunch of recommendations based on the criteria that government has asked them to look at. But the final decision still comes down to government and the ministry and cabinet whether to accept some or all of the recommendations or the determination around those recommendations.
I just want to also, for the record though, remind the minister that one of the big challenges is supply. I think she somewhat acknowledged that supply is an issue. And we do not want to, in my opinion, humbly, say that we create a further issue between renters and homeowners.
We shouldn’t be penalizing homeowners. What we want to do is incentivize development to allow more renters that choose to, to become homeowners through accessibility into an affordable housing market. The Housing Minister, during estimates this session, has already acknowledged that government has only been able to achieve 5 percent of what they promised around an affordable housing market. The government had announced that they were — going off memory here — 114,000 affordable housing units, and they’ve been able to help generate only about 5,000 or just over 5,000. That’s confirmed by the Housing Minister in this.
A big issue is around red tape. I believe — quickly looking through this report — that that’s one of the things that’s addressed too. So I think it’s very important that we look at eliminating that red tape, reducing taxes and development fees to incentivize businesses to invest, to build housing, to build affordable housing.
Would the minister agree with me that that’s probably a direction that the government should be looking at going?
Hon. S. Robinson: I think it’s really important to, first of all, recognize that supply alone isn’t necessarily how to think about this problem. I think it’s about right supply.
You know, in my community in Coquitlam, if you can imagine, it’s a very traditional suburb. It doesn’t get more suburban than Coquitlam, in many ways. Lots of single-family. Just tons of single-family. The reason my husband and I purchased our home there is because kids were playing street hockey. They were playing road hockey. That’s what he and I grew up with. We both grew up in suburbia.
The thing with suburbia is that there is a lot of single-family. Certainly built out in my community, Coquitlam-Maillardville, through the ’50s — most of the housing built was in the ’50s and then later in the ’70s and then in the ’80s. That was really all you could get there — just a single-family home.
And then word was that we were going to get the Nevergreen line. That’s sort of an old joke. It became the Evergreen Line. That really put significant pressure on what to do around where the stations were going to be. So they started to build condos — condo towers. Investment kept pouring into our community. So what they were building, because the appetite was for investment and speculation, were towers that had hundreds of units that were about 600 to 800 square feet — I would say, dozens of these buildings.
Now we have come to learn that a lot of those were speculative, right? The message that came through when I was sitting at that council table was: “This is what the market demands, so we’re just going to respond to the market.” Well, the market was a speculative market. It wasn’t for people wanting to raise a family. It wasn’t for people downsizing.
It was for a speculative market, because you could get in at the ground floor, so to speak — also at the 18th floor or the 22nd floor, but you can get in on the ground floor in this investment. You could flip it several times — those were the days that you could do that — and make good money. You could even let it sit empty and just wait till the market picked up even more and then make a killing. What you were killing was the next generation who couldn’t afford to get in.
When the member talks about supply, I think it’s important that we talk about the right supply. We’re building housing for people, not for speculation and, I would even argue, not for investment. Now, if somebody wants to invest in housing and rent it out, for sure, but not just to make money. These are homes. Where are our workers going to live? Where are our children going to live?
Whenever we talk supply, I think it’s incumbent on us as legislators to talk about the right supply. Who are we building for? It’s with that in mind that I do want to speak to how we are looking at supply. I do think it’s important.
I also think it’s important to recognize that when we formed government in April…. Well, it was July, I think, of 2017. We went back to take a look at how much housing was being developed by the previous government. They had 2,000 homes in development or under construction — 2,000. Okay. Nice attempt. Housing crisis — 2,000. We have over ten times that — 21,000 — and thousands more open. I’m just talking about what’s under construction or in development. That’s a significant boost in investment. That’s a significant boost.
Now, if we could build housing with just a little Bewitched wiggle of my nose, that would be great. We are getting better at it. We’re seeing modular construction, which builds housing more quickly. There’s a project, actually, in Grand Forks, a townhouse project, that was built modularly. That went up, I think, in nine months, which was pretty exciting. But it does take a couple of years.
Part of the problem is…. The member calls it red tape. The development approval process is a significant process. It’s certainly something that we were taking a look at — and I know that the new minister continues to take a look at — and moving actively on with local government partners. I know the member was a mayor and understands what development approval processes look like. So there is work underway to address that, to make it more efficient, to make it work more smoothly and to identify ways that we could fast-track.
I see there’s another member in the House who was a mayor. I know that there are lots of local government representatives here. I see another member here who was a city councillor. So we are, I think, familiar with that process. Government is continuing to undertake a review to identify how to best make things move faster.
The other thing, before I take my seat, is that there is more under construction now than in the last number of years — every single year. There are historical highs for housing starts. That’s significant as well, because it is about getting supply. Again, I want to qualify — the right supply. That’s very much what our housing needs assessment was about — making sure that local governments understood what their current supply was, who’s coming into their community and what they are anticipating they’re going to need so that they can make sure they’re building the kind of housing that people need. We’re building housing for people.
The Chair: Member for Kamloops–South Thompson. North. Beautiful north.
P. Milobar: Yes. The sunny side. That’s what it is. It’s the north side. It gets more sun.
I just want to take the minister back to this report. It’s an expert panel report, but it’s an expert panel report chaired by a former, some would very easily say distinguished, legislator from this chamber that represented the NDP for a great many years, with distinction, and definitely understands the politics of reports like this.
She was the Social Services Minister, was the Labour Minister, was the Education Minister, was the Health Minister — a pretty big portfolio. She was the Finance Minister, was the Deputy Premier and was even the Leader of the Opposition. So that’s who the chair of this expert report is. Pretty close ties and connections to this current government and ideologically aligned as well. I don’t think that’s a big shock to anyone.
The member for Peace River South had asked the minister previously if the minister had been briefed, had advance discussion — or anyone in the government, staff or other ministers — on this report ahead of its release today so that government could start to formulate a response. That would not be an unreasonable expectation on an expert panel report that’s going to be coming out.
I heard a 12-minute response that touched on just about everything but the question about getting a briefing, except for a slight reference to “a stack of documents on the side of my desk that I haven’t gotten to.” That was not the question.
Was the minister, the government or anyone within government briefed in advance, given notification in advance or have any understanding in advance of what was going to be in this report when it was released today?
Hon. S. Robinson: To the member for Kamloops–North Thompson, the sunny side of Kamloops. I’ll always remember that now.
Staff did receive a draft of this independent panel’s report back in…. I believe it was in February. Three ministers — myself and the Ministers of Municipal Affairs and Housing — had a very high-level briefing — we believe it’s March; I’d have to double-check — from the chair, from Joy MacPhail. It was very, very high level.
They were letting us know a bit about what they’d done, what they were thinking, what they were hearing and giving us a bit of a timeline about when they expected…. But it also depended on working with the federal government, because it was a joint group that they also had to report out to CMHC. So they were briefing both governments and letting us know a general sense of what their timeline was.
That was, I believe…. It was back in March. I’d have to double-check to get a specific date, if the member is looking for that.
P. Milobar: Thank you for that. Was there anything fundamentally different, then, in that briefing, particularly around the recommendations around the homeowner grant or the capital gains on your primary residence, that’s different from that high-level briefing to the actual final detailed language in the report?
Hon. S. Robinson: It is difficult to recall, so we are looking at early drafts. There was mention of the homeowner grant and the capital gains. But they hadn’t really drilled down in terms of the detail. They recognized that these were things that could be addressed, but they didn’t have any specificity to them in their early drafts.
P. Milobar: Well, it’s important, because people are already on edge about homeowners’ grants. I think the minister can appreciate that. The minister was a former Housing minister as well. My in-box is flooded in Kamloops right now, especially by seniors.
I’m sure almost every member in this House is having the same experience across this province because of the province’s decision to take over the administration of the homeowner grant instead of you just applying for it through the regular way through a municipality. It makes it difficult for seniors that have never done it that way, aren’t tech-savvy, don’t necessarily have the help — all of those things. I think the minister can appreciate that.
That was in December, I believe — those changes happened. Here we are in March, with a briefing starting to talk about that as well. In December, there were concerns and worry that this would be an easier way for the province to eliminate the homeowner’s grant. Now we have a report that’s recommending that, by somebody that used to hold the highest positions within NDP governments as the chair of the committee.
So there was discussion at a high level in a briefing, with very high-level ministers of this current government. Was there a government discussion then? Was there a government position formulated at that point? Can the minister confirm — I know it’s been asked already — one more time that it is the government’s position, this current government’s position, that there will not be the removal of the homeowner’s grant for British Columbians? Full stop. Not a reduction. Not a reworking of the calculation. It will not be messed with.
Hon. S. Robinson: I have been saying all along that this recommendation is not at all under consideration. We said we would not be changing the homeowner’s grant. We’ve been saying that back…. I believe it was December. We continue to hold that position.
P. Milobar: That was actually my error. It was actually March that that change happened. That would align with when the briefing was happening, as well, in that same time frame.
I think the minister can appreciate why there starts to be a little cynicism and worry, by not just this side of the House but by many residents in British Columbia, as to what the actual end goal really is when some of these changes come forward. Now we’re hearing that high-level briefings were taking place around a recommendation that was ultimately going to recommend the removal of the homeowner grant at the same time that a massive fundamental change to how it will be administered was being pushed through the House.
Now, another recommendation that was a part of that high-level briefing was about a capital gains tax on the sale of your primary residence. That stands to be dramatically punitive to people trying to sell and move and sell and move for legitimate work reasons or whichever reason. They’re moving from one primary house to another primary house. As soon as you sell that primary house, by the sounds of it, you’re going to trigger a whole other tax bill — not the property transfer tax, but a capital gains tax — if you happen to sell it for more than you bought it for. And that’s what most people strive to do — actually sell their house for more than they bought it for.
The minister, just in a previous answer talking about supply, actually said, would argue, that houses should not be for investment. Yet we have a recommendation here to apply capital gains to your primary residence. That sounds like an investment to me. The biggest investment most people make in their lives is buying their home.
The recommendation is that, if they have the gall to buy a house, live it for a number of years and sell it for more than they paid for it, they should pay a tax over and above that. Now, I’m assuming that the government ministers involved in that high-level briefing would have had further discussions about what the government’s position would be if a recommendation like this was to come to pass. And it was part of that briefing.
What is the official government position about a capital gains tax on your primary residence?
Hon. S. Robinson: First of all, the capital gains is a federal responsibility. The CMHC has already come out with a press release saying that they’re not interested in changing the rules around capital gains. So that line of questioning, I would suggest, is moot.
He’s not quite capturing my words and my intent when I talk about purchasing homes that are not your primary residence for the purpose of investment and letting them sit empty. That’s what the speculation and vacancy tax is about — making sure that if you are going to invest in real estate, that, at a minimum, you need to rent out the home. That’s what the intent of my response was. If the member didn’t fully capture that, then I’m hoping that my clarification is well understood now.
P. Milobar: Well, we sure have a lot of finger-pointing back to Ottawa and “it’s not our responsibility” coming from the other side of the House these days. That didn’t seem to be a problem when it came to Trans Mountain pipeline. Every tool in the toolbox was going to be used by the other side. We went to court how many times? Lost every single time. Spent untold dollars, because the government won’t divulge that, to push back against Ottawa.
That’s a government’s right to do that. I didn’t agree with it, but it’s the government’s right to do it. In fact, British Columbians expect their provincial government to stand up for their interests. We would expect that on cruise ships. We would expect that on softwood lumber. We would expect that on anything that might happen federally and that would create undue impact on British Columbians, especially if it was contrary to what a sitting government thought was the right policy move for British Columbians.
[N. Letnick in the chair.]
Again, the question wasn’t what Ottawa thinks about the capital gains tax on their primary residence. The question was what this government’s position on that type of policy is. The Premier has spent millions of dollars for intergovernmental relations in his office. We’re starting to really have a hard time figuring out what that office even does for those millions of dollars, because every time we ask a question that might fall under federal jurisdiction, we get a shrug and we get told that it’s not really our problem.
Surely that side of the house — I’ve lost count of how many MLAs used to be MPs — understands how Ottawa works. Again, what is the government’s position? This is a concept that was provided in a high-level briefing note in March to all the relevant ministers in this government, about the concept of capital gains tax on a primary residence. It is simply not good enough for this government to say: “We haven’t really thought about it. It’s not our problem. It’s Ottawa that would bring it in.”
What is the position of this government, after that briefing, on capital gains on a primary residence? If it’s that’s they should not happen, what advocacy are they doing to ensure that that happens at a federal level?
The Chair: The Minister of Finance.
Hon. S. Robinson: Thank you very much. It’s nice to see you in the chair.
It’s really unfortunate that the member for Kamloops–North Thompson, the sunny side of Kamloops, doesn’t seem to have brought a sunny disposition with him here, today. It is really unfortunate, because we have had great dialogue here.
Perhaps he didn’t hear my response when CMHC has come out with a press release saying that they are not interested in changing their position on the capital gains and that there is zero appetite by the federal government. So there is nothing to advocate for, because the capital gains isn’t going to change and neither is the homeowner grant treatment going to change.
P. Milobar: Well, again, that’s what the CMHC says today. We’re not sure what they might say in a week or a month. We’re not sure what might happen in a federal election, which seems to be imminent. MPs all over the place are doing farewell speeches in Ottawa.
The question, though, that the minister has still failed to answer is: what is the government’s official position in regard to capital gains tax on your primary residence? Does this government want to see a policy like that enacted? Or is this government steadfastly opposed to capital gains on your primary residence and going to push back if there’s any hint of the CMHC actually enacting what is in this report?
Hon. S. Robinson: I just got some clarification that the report went to CMHC, but the press release actually came from the office of Minister Freeland, the Federal Finance Minister, who was very clear that the federal government had zero appetite to make any changes to the capital gains. I am pleased to hear that, because I think that that’s the right decision on their behalf.
I also don’t want to suggest that it is my responsibility…. While it’s my responsibility to advocate and to lobby, there’s nothing to lobby about here. To spend time trying to get the federal government to do something, when they’ve already stated their position, is not a good use of my time. It’s not a good use of any relationship work that we continue to do. It doesn’t make any sense — except, perhaps, a thank-you note: “It’s the right decision. Glad to see that you made that commitment.” I’ll be sure to do so when we get out of this chamber today.
P. Milobar: Well, again the minister is not actually answering the question. She said that she thinks it’s a good decision. It was a high-level briefing on a concept that was going to be in a report, in March, by all the main ministers that would need to be involved, provincially, on a wide range of topics. This topic, in particular, was touched on and briefed, and by the minister’s own answer earlier on, things changed: wording changed; detail got added after that briefing.
The broad concept, though, the minister said, was there in the briefing. Surely one would hope the government ministers involved would’ve had a discussion after that briefing. There’s not much point in having a briefing on what government’s response would be to certain things within the report if they come to pass.
We now know that the concept that was briefed around a federal capital gains tax on your primary residence, which was referenced in the briefing, actually did come out as an actual suggestion today from that report. The question is: did the government, in advance of the report being released — based on that briefing, based on concerns, potentially, around a capital gains tax on your primary residence — formulate an official position in anticipation of this report? If so, what is the official position of the government?
Is it the official position of the government of British Columbia, based on all of this background that they were getting, that there should not be a capital gains tax on your primary residence? Or are they silent on the issue? There’s a big difference between saying that you think now the minister is making the right call in Ottawa and actually developing some sort of policy response in advance of a report that you were briefed on 2½ or three months ago.
Hon. S. Robinson: To the member from the sunny side of Kamloops, North Thompson, again, this was an independent report. The two of the recommendations that the member has raised…. The federal Finance Minister and I said we’re not going to act on two of the recommendations. We have no appetite for either of those recommendations. I think it’s the right decision on the federal government’s part, and I know it’s the right decision on our part, in terms of what our responsibilities are. I think that’s good for homeowners, and I look forward to taking a look at the other recommendations.
I know that my colleagues are interested in some of the other recommendations, now that we’ve seen some of the details in the report. There might be some things for us to learn. But this is in the context of actions that we’ve already taken with our 30-point plan. It talks about the housing needs assessment and acknowledges the important work, the important steps that we have already taken, to address this. Again, it’s making a difference in understanding what’s on the ground, what kind of housing we have, what kind of stock, what kind of supply. That’s really what’s important.
The member from Peace River was talking about red tape and the development approval process. There are, I think, some interesting recommendations in here about how to address that and move that forward. There are interesting recommendations around how to work collaboratively when we do infrastructure investments, and looking at OCPs, zoning bylaws and other policies that are increasing density. There’s a ton of work that has gone in here.
Again, I want to thank all the members. The member might not be aware about who is on this independent panel. We have Jill Atkey from the Non-Profit Housing Association. She’s an incredible advocate but also knows her stuff, knows what the needs are, knows how to represent her members really well. We have Jock Finlayson, Brian McCauley, Sue Paish and Helmut Pastrick. They were tasked by the federal government and by ours, too, to be creative, to go out and check in with the experts about what more should be considered or should be reviewed.
The member mentioned two recommendations, and both the federal minister and I have said no to two recommendations. I think: “Fair enough; we do get to do that.” The other ones we’re going to be looking at and identifying. Some of them we may accept wholeheartedly. Some of them we may take a look at and say, “You know, this works, but this part doesn’t,” because of other work that is being undertaken or, as we understand what the implications are, what some unintended consequences might be. All that work needs to go forward.
Now that we have the final report, we can dig into it. There are three ministers — myself, the Minister of Municipal Affairs and the Minister of Housing — who have components in this. We’ll be working together with our staff to identify how to bring to bear various tools to address the housing crisis. I don’t know if the member is going to be satisfied with the answer; he may or may not. I don’t know, but I can’t be clearer around our commitment to say no to these two recommendations.
We’re going to be looking at the other recommendations, and there might be some more nos. I’m not discounting that. Now that we see the details of these other ones, we’ll have an opportunity to see if they work, if they make sense, how they make sense, how they fit with other work that we’re doing.
It is a complex landscape, the housing landscape. I’m pleased with the work that we continue to do with my colleague the Minister of Housing and the Minister for Municipal Affairs because we recognize that all of these three ministries need to work together in order to address housing affordability. We’re committed to continue doing that.
In this report…. The thing I do want to say about this report is that having the federal government have the same report is very helpful because they understand what we’re doing here in British Columbia, and that’s good for British Columbians. As well, there’s a significant component about the role that local governments have. They too have a responsibility to address housing affordability, and that’s a good thing, in this report, bringing all orders of government together in order to address a complex problem. I look forward to working with those partners in the months and in the years ahead.
G. Kyllo: I was recently asking a number of questions in the Ministry of Transportation. For BCIB, B.C. Infrastructure Benefits, the Minister of Transportation indicated that the responsibility for BCIB falls within the Ministry of Finance. So I’ve got a series of questions around that.
Just to get started, I’m just wondering if the minister might be able to provide us with a bit of financial detail. What was the operating budget for BCIB for fiscal 2019-2020, and what is the budgeted gross operating budget for 2021?
Hon. S. Robinson: Forecasts. For ’20-21, we have $17.1 million, and for ’19-20, we have $9 million.
G. Kyllo: The Minister of Transportation had indicated that there is a report that is due to be put out by BCIB this summer. Can the minister confirm if this will be the first report out from BCIB, or was a report put out last year?
Hon. S. Robinson: I’m wondering if the member can just be a bit more specific, because there are numerous reports that BCIB reports out on. I just want to make sure I give him the correct information.
G. Kyllo: My line of questioning with the Minister of Transportation was around the report-out on craft hours, percentages of female hires, percentage of Indigenous Peoples. It’s the reporting-out of craft hours associated with specific projects that fall under the CBA regime.
Hon. S. Robinson: I believe the member is speaking about the annual report from last year’s service plan that comes out in July. That’s about the deliverables from last year. So that will be coming out in July.
G. Kyllo: Earlier this year, there was a report that was put out by the Community Savings Credit Union. The report was titled Building a Better B.C.: Social and Economic Impact of the Community Benefits Agreement. The report that was undertaken includes a significant amount of detailed analysis and information that I can only assume would have had to have come from government.
Can the minister advise this House what information was specifically shared with the Community Savings Credit Union in the formulation of this third-party report? I’m increasingly concerned that we have not been able to get access to a lot of the information that is apparently now going to be put out in a service plan report in the summer of this year, yet it appears that the information was readily shared with the Community Savings Credit Union to allow them to formulate this propaganda piece that was put out earlier this year.
Hon. S. Robinson: I’m happy to provide a response, and I’m going to ask if we can take a five-minute break after my response. I would be most grateful.
This report was undertaken by an independent contractor. They used a variety of sources to gather their information to create this independent report.
G. Kyllo: I have to leave, but I do have a series of questions relating to BCIB. I was just wondering if it would be all right if I was to send in a list of questions, and you’d be providing an answer back in the next couple of weeks or something like that. Would that be reasonable?
Hon. S. Robinson: Certainly.
The Chair: We’ll take a five-minute recess, convening at 3:05.
The committee recessed from 2:59 p.m. to 3:06 p.m.
[N. Letnick in the chair.]
M. Bernier: I appreciate my colleagues who asked some questions, too, and appreciate the minister’s offer to accept his questions in writing and respond back to him hopefully within a few weeks. It’s important information. As the minister, I think, can acknowledge, we don’t always have all the time we need to ask every question in the House, and sometimes, I guess, a more formal response is appreciated in the form of letters and answers.
I want to change gears here, if I can now, to something that is…. I think this will be no surprise to the minister, let’s just say. There is a lot of commentary right now in the media. I have received a lot of emails and social media response. This is around the discontinuation of the school tax cuts, I’ll use, if I can say that.
First of all, let me just put it on the record too. The CFIB, for instance, is calling on the B.C. government to take the following actions.
Reduce the school tax in the 2021 calendar year, but the average business sees a 25 percent reduction in their overall property tax bill.
Give businesses more flexibility to make payments by deferring provincial taxes — including but not limited to the employers health tax, provincial sales tax and carbon tax — and stop all tax increases planned for the 2021 calendar year, starting with the deferral and introduction of the PST and soda beverages on April 1. Of course, we’re past that, and the government has implemented that.
Defer the carbon tax increase from $40 to $45 on April 1. Well, we’ve passed that date, and unfortunately, changes have been made.
But the school tax decrease — I’m interested, from listening to the minister, in the reasoning. That school tax decrease was in 2020. If my memory serves accurately on this issue, it was because the government said: “Look, we need to help our businesses.” I support that. I applaud that. I agreed with that. They said it was because we were in a COVID-19 crisis, a pandemic, which I think we all acknowledged as well.
I’m curious if, through this section of the dialogue that the minister and I will have…. Maybe we’ll just start by asking: what’s changed? As of yesterday or a few days ago, the commentary that we’ve heard in this House — from most ministers during estimates and including the Premier during estimates and even during question periods — has said we’re not done, we’re still in a global pandemic, and we’re still dealing with a COVID-19 crisis.
If that’s the case, why did the Ministry of Finance decide to stop the support for small businesses through this tax reduction and implement it again for 2021? As everybody has acknowledged in this House, we’re still going through the COVID-19 crisis.
Hon. S. Robinson: The thing about this pandemic is that it’s continually changing and, as a government, so has our response. I want to take the member back to last year, back in March, when we didn’t know exactly how this pandemic was going to take shape. We knew that people were dying. We knew that people were getting sick. Everyone was scared. We knew that we could no longer have contact with each other. We hadn’t yet…. We weren’t wearing masks. We were washing our groceries. We were trying to understand. The scientists certainly were trying to understand what was going on. There was no vaccine.
It was a very, very different kind of time, and it was in that context that the previous minister, in the previous iteration of our government, made the decision — the bold decision — to help businesses by reducing the school taxes so that businesses could get through the rest of the year.
The member asks what’s changed since then. Well, a lot has changed. Our understanding of this pandemic has changed. Our understanding about how to take care of ourselves and keep each other safe — that’s changed. We now have vaccines. That’s changed. We now have hope. That’s changed, and so has our response — our response has changed as well. In fact, our response has changed partly because that’s what we heard from experts about how we continue to help the economy through this next piece, and we heard this from the Economic Forecast Council.
I want to refer back. The member for Peace River South was there. He listened in on the discussion that I hosted with about a dozen economists who were taking a look and advising government about what needed to change, given the changing nature of the pandemic and the change in the economy.
We took their advice to heart. So when we reduced school taxes well over a year ago, it was because we needed a broad-based support, and that is a broad-based support. That was $720 million that the treasury did not receive in order to keep those resources in communities and with businesses. We recognized that that was needed at the time.
It was also the time that we provided a $1,000 worker benefit. It went to over 600,000 British Columbians whose jobs were impacted. Again, it was just to help people stay afloat as best we could. We also had a rent supplement program that went on for a number of months — I believe it was five months in total — because we wanted to see people through.
The thing that was really, I think, fascinating for me as a British Columbian and fascinating for me as a Finance Minister was how businesses pivoted, how people pivoted, how they took care of each other, how they keep taking care of each other.
As a result of the resilience of British Columbians, the resilience of their businesses and the resilience of communities, we have seen employment numbers rebound in such a significant way. We’re at 99 percent today of what it was last February, before the pandemic. So that’s changed, because that wasn’t the case back in March and April of last year. That’s when we saw the biggest dip ever, which needed a significant broad-based response from government.
What we’ve been doing is engaging with the business community. We’ve been taking the advice of the Economic Forecast Council, and we’ve been tailoring our response to the specific needs, because the other thing that we’ve learned from this pandemic is that not all businesses were impacted in the same way. We know that there are some businesses that have been doing quite well, that really didn’t have much impact. They’ve been able to pivot. They’ve been able to support their employees to work from home, for example, and continue to do the work that they do.
We’ve also seen some industries where there’s been continued ongoing challenges — the tourism industry, for example. The hospitality industry was significantly impacted. We have the small and medium-sized business grants. Rather than a broad-based tax break that’s attached to the school tax, we pivoted too, just like businesses had to pivot, and we pivoted to target those supports to those that need it.
That’s why we have the small and medium-sized business grant. It’s also why we put in the circuit breaker grant when we had to do the circuit breaker — when the public health officer said, “Restaurants, you can no longer continue; our numbers are going up,” and we needed to take quick action. Together with my colleague from Jobs, Economic Recovery and Innovation, the recommendation was to do a grant for those specific industries that were hardest hit.
Then we extended it, and we included the hospitality component, not just sort of restaurants, because there was a bigger hit to them — again, pivoting as the pandemic continued to move. We have $120 million allocated to support the tourism recovery, recognizing the devastation for them.
As a government, we’re being responsive to the changing needs of people and businesses as the pandemic continues to shift and change and move. We’re going to continue to adapt as needed.
M. Bernier: I appreciate the lengthy response. I wouldn’t mind…. On some of these, we’ll try to fit in some questions here while we have limited time left. I think what hasn’t changed, though, in a lot of ways, is that there are a lot of restaurants, a lot of businesses, especially people with a triple-net lease, a lot of small mom-and-pop operations that are still struggling.
I won’t ask the minister to put on the record, because I will, a very obvious comment that fiscal years, which we deal with here in government, do not match up with a calendar year, which is property taxation and school taxation. From January 1 to December 31 is when people are looking at the taxes that they have to pay for property taxes. That doesn’t match up with what we do here. We’re actually halfway through the year. We’re halfway through the year of taxation of what we’re discussing right now. People have received their assessments. They’re expected to pay their property tax by July 2. We’re actually halfway through the year.
For the first half of 2021, a good portion of businesses were not operating, or they were struggling. They were figuring out how to stay afloat. As the minister says, we might have hope. Hopefully, we all have hope, but hope doesn’t pay the bills. Hope doesn’t actually put money in the bank account, bring people into your business, to afford the taxes that this government has put on.
I am sure that most businesses, if not all businesses, that were able to partake in the fact that they were able to save money last year because of the reduction in school taxes were appreciative of that. I’m hearing from a good chunk of them now, though, saying: “Our financial circumstances have not changed. Everybody keeps saying we’re in the middle of a global pandemic. My restaurant was shut down for a good chunk of the first half of 2021.”
I’ve got one here. It was even in…. You know, I’ve got lots of them. But even as of today, in Global News, reporting of one specific restaurant — of course, there are tens of thousands of them — in Vancouver, the co-owner of the Bonjour Vietnamese Bistro in Vancouver on Fraser Street starts off by saying how insensitive it is of this government and how they were in shock.
“I actually saw my tax bill, and I assumed it was a mistake. I’m just disappointed when I see this increase from this government, because we just closed indoor dining for the last two months. We were unable to have revenue. We are excited they just reopened indoor dining a few weeks ago.” But now they’re stuck with a 45 percent tax increase.
We’re hearing businesses in the Lower Mainland who are being stuck because of triple-net lease agreements that they have with tens of thousands of dollars of increased taxes this year. I think the minister would agree, if we’re still going through the pandemic, a lot of these businesses are not in a financial position to have that revenue coming in, in order to pay for this.
I know the minister is saying: “Oh, some businesses were able to pivot.” I know we’ve used that word a lot. Those that were, I congratulate them, applaud them and hope they have continued success. But a lot weren’t able to. There are a lot where revenues are down. Their businesses might have even been closed for a good chunk of the 2021 calendar year so far.
As we’ve heard from some who have been out there commenting, they’re just basically clinging to life, hoping to survive so that when they are able to get back to pre-COVID revenues, they’ll be able to hire people back and they’ll be able to keep their doors open. And part of that means being able to afford to pay the taxes that are imposed on them from the government. I’m sure the minister’s email has lit up like mine has over the last couple of weeks as the tax bills were coming in, where businesses are saying: “We’re still struggling.”
I had hoped the government would have seen that this is still an issue and would have considered extending this 25 percent reduction in the school tax portion at least until the end of the COVID-19 pandemic, which we all hope is sometime later this year. But I’m going to say that that means for a good portion of 2021 we are still going to be going through some form of reduction in business as we hope the economy starts to open back up.
So maybe to the minister, and I know she has a colleague in close proximity who’s been working on this…. Why was it not considered as part of, let’s say, the reopening plan or the recovery plan? Why was it not considered to have this reduction continued for this year or, in the very least, a portion reduction or maybe an incremental increase but not the full increase back to pre-COVID levels, whilst companies, businesses are still struggling to pay the bills?
It’s a drastic increase when we’re still in the pandemic. Why was it not considered to keep it at the 25 percent decrease as part of the recovery plan?
Hon. S. Robinson: I was just listening closely to the member’s question. The business that he mentions actually got a circuit breaker grant. I don’t know the specific details, but I do know that they got a circuit breaker grant. That would be a grant of up to about $20,000. It depends on how many employees. I don’t have the specific details. I could get that for the member if he’s interested. The property tax relief would be about $5,500, maybe. Really, the circuit breaker grant is certainly more substantive in terms of helping out this particular business.
On top of that, we’ve also allowed businesses to purchase alcohol at wholesale prices, saving them up to 20 percent. We’re helping them by making new patios permanent. Really, if you add these things together, the combination, they’re better off with our targeted supports than if we had just done a broad-based reduction again. I know that the member would appreciate these targeted supports. On top of that, with all of these elements — whether it’s the tax relief or the grants in all their various forms — when you put them all together, we are providing the greatest amount of relief to businesses of anywhere in the nation.
On top of that, when you take a look and you compare across Canada, in the province closest to us, we still have 30 percent more supports than the province next to us. I’m very proud of the fact that we’re very much head and shoulders above other provinces. I think the fact that we have 99 percent employment shows that it’s working and that it’s the right direction.
There are others who have been saying that with all the supports that we’ve provided, whether it was tax relief or grants…. We’re hearing from the Greater Vancouver Board of Trade, for example, which just released today that 64 percent of businesses are optimistic about their economic prospects this year. We’ve helped to keep them afloat. I’m not saying it’s 100 percent; it’s 64 percent. But it’s two-thirds of businesses. That’s really, for me, gratifying to see.
I know that there are still some businesses that are hurting, and we’re going to continue working with them. We still have $120 million set aside for the tourism industry, recognizing there are still some pieces. With public health orders and the prospect of a sufficient vaccination, that industry could get back on its feet. Timing is still a question, but that’s still available to continue to support them.
We’ve also heard that the Greater Vernon Chamber of Commerce was saying that they’re really excited about the summer ahead. They’re saying that this is a significant boost for the tourism and hospitality sectors, certainly, in their community. The Prince George Chamber of Commerce also just said, earlier this week: “The Prince George chamber is excited for our business community to continue moving forward, particularly the hard-hit drink, food and entertainment sectors.”
There’s absolutely hope in the business community. They recognize the investments that we continue to make to support them through this difficult time. They can see that light at the end of the tunnel that we’ve been talking about. The tunnel is shrinking every day. The more people that get vaccinated, the better for all of us, the better for our businesses, so we can get back to life as we once knew it.
M. Bernier: The minister — I listened to her words carefully as well. I think what’s interesting, though…. I will acknowledge, from what I’ve read on this specific company, for instance, that yes, they received a grant. That grant barely covers the increase in the school tax.
I didn’t know that the intention of the circuit breaker grants was to actually give people money so that they could give it back to the government. I didn’t know the intention of the circuit breaker grants was to actually give people money so that they could give it back to the government.
I thought the whole point of the circuit breaker grant was to give companies a lift to help them so they didn’t have to close, so they could hopefully keep employees, not to turn around and give the money to their accountant, to say, “Oh, and by the way, we now have to just redirect and sign our circuit breaker cheque over to the government because we’ve got almost a $10,000 increase in our taxes because of the school tax increase,” which they weren’t expecting to pay, or were hoping they didn’t have to pay, because they’re still in the pandemic.
So it’s a little misleading in the sense of saying, “But look at us. We’re giving all these companies money to help them,” and then, in turn, asking for that same money back. The net result is not really that beneficial to a company that is trying to stay afloat.
The minister is quoting organizations, saying that 64 percent are hopeful. Well, I’m happy for those 64. But that means I’m very worried for the almost 40 percent of businesses who are not hopeful. That sounds like almost 40 percent of businesses are worried about where they see their future this year; whether they’re going to be able to stay open; whether they’re going to have to unfortunately, maybe, go bankrupt and lose everything; whether they’re going to be able to employ people into the future.
The minister continues to say, for the last few days here — and the same with other ministers — that we’re almost to pre-pandemic levels of employment. They continue to not address everybody. They’re talking about public sector, who are…. The public sector…. And the minister can shake her head.
Maybe I’ll ask this question, then. The numbers have been out — very public — in public documentation. This is not me making up these numbers. So 61,000 people from the private sector, from pre-COVID levels, are not back to work yet — 61,000. So the minister can turn around and say that we’re back to almost pre-COVID levels, but the government has done a lot of hiring internally.
I’m not taking away from that. That’s a discussion for a different day. But the reports are out there. Not my numbers. Public, approved, documented numbers — that 61,000 people are still unemployed from the start of the pandemic. Will the minister at least acknowledge that those are factual?
Hon. S. Robinson: No one on this side has ever said that we’re done. No one has ever said that there isn’t more to do. I want every single person who can work and contribute to be able to do that. I don’t think any of my colleagues have ever said our work here is done and said we can all take a break.
I’m not taking a break for some time yet, even though today is the last day here in this House. I have got a ton of work to do over the coming weeks and months, for sure. I know that my colleagues here and around the cabinet table are still keeping their sleeves rolled up, because there’s absolutely more work to be done. Not everyone is going to come out of this pandemic unscathed. We don’t want to leave anyone behind. Our government continues to work to find the right solutions to make sure that everybody has an opportunity to participate in the economy.
So when we talk of the 61,000 folks who continue to be challenged by this pandemic, we recognize that not all sectors are at 99 percent. There are sectors that have lower rates of employment. The accommodation and food services is at 78.3 percent employment. The building and business support services is at 90.7 percent. We’re keeping a close eye on these things.
But I also want to point out that there are other sectors where they have surpassed what the employment levels were like last February. In the professional and scientific and technology sector, it’s 116.4 percent. That’s increased quite dramatically. So we’re keeping a close eye. We know that there’s more to be done to support the tourism, the hospitality sector. We have set aside resources to help them.
That’s why my colleagues the Minister of Jobs, Economic Recovery and Innovation and the Minister of Tourism, Arts, Culture and Sport are working together to identify what additional supports are needed. We have set aside, as part of the budget, resources to help them. We’re working together with the sector — with the sector — to identify how to best continue to support them, so that they can get their businesses back on track and have a future that works well for them.
M. Bernier: Actually, I want to thank the minister. That is absolutely the closest acknowledgment we have heard yet in this House that there are 61,000 people, from pre-pandemic numbers — 61,000 people — who were employed, who lost their jobs, and who are not back to work.
So I respectfully say to the minister, and the other ministers and the Premier, that they should stop with the narrative that we’re back to pre-pandemic levels, because that’s actually not a fair correlation of where we’re at. That’s a disrespect to the 61,000 people who are sitting at home right now, trying to find a job. I want to thank the minister for at least acknowledging, somewhat, in her answer, that there are 61,000 people who are still struggling to find employment.
We also need to remember, though, when the government talks about being back to pre-pandemic levels, that a lot of those are part-time jobs. A lot of those are people who are still struggling. They might be on a payroll somewhere. They might have a payroll number. But that does not mean they have the hours they had prior to. It means there are some people out there still struggling. But I do thank the minister for at least — finally, somebody in this House, on the government side — acknowledging that there are at least, and hopefully fewer every day, 61,000 people out there.
I just want to quickly go back to the minister if I could, because we haven’t got, at least in my opinion, a fairly straight answer on the direction, other than it sounds like they’re not going to look at any relief around the school tax credit. It appears, from the minister’s answer, that they have determined…. I think it’s important just to have this on the record, because there are a lot of people who are waiting to see what the government is going to do about this. There has been a lot of commentary in the media. The minister has seen the same commentary that that I have. I know that. There are a lot of struggling businesses out there.
Another one that I got just a few days ago, a small mom-and-pop operation in West Vancouver whose school tax portion of their property tax this year is going from $6,500 to $20,200 this year — from $6,500 to $20,200, in the same time when a lot of their business wasn’t able to have revenue coming in.
It sounds like the minister is not going to come up with many other opportunities for tax relief on the property taxes. I’ll give her an opportunity to correct me if I’m wrong with that assumption, based on her commentary.
Maybe I’ll ask her this. For a small business that’s struggling to stay in operation, does she think that that’s fair — $6,500 to $20,000 — while we’re still in the middle of a pandemic? Does the minister think that actually this company is expected to pay that amount? She doesn’t have any other tax relief on the school tax side to help them with this portion?
Hon. S. Robinson: To the member’s early part of what then became a question — but didn’t start off as a question — I just want to point out that we are certainly hearing and seeing that in some sectors, there’s a labour shortage. In some sectors, like construction, they can’t find skilled workers. That’s a significant challenge. We were just actually…. The members were canvassing around housing, housing supply, for example.
We need to grapple with the fact that we need to make sure that there are people to actually build the housing that we need for people to live in. That’s a real challenge that I’ve certainly heard from the private sector. This is something that our government is addressing as well, because we need to make sure that there are people with skilled trades in order to build the kind of housing that we need, to build the institutions that we need, to build the hospitals — all the hospitals; man, are we building hospitals — that we need. So we are seeing those sorts of challenges.
We’re also hearing — I certainly have heard on the news — about restaurants and small businesses not being able to find employees — that people that perhaps had worked in the restaurant before they had to close as a result of the pandemic have gone elsewhere to work.
There are opportunities for employment. It’s just different kinds of employment and different sectors. That’s something that we’re prepared to grapple with, that we’re prepared to work with the business community on, because we know that that’s absolutely critical to moving forward.
Now to go back to the question that the member did ask. Again, that was property tax relief — and it was relief, right? The property tax system has existed for a long, long time. When the pandemic hit, we did a broad-based $720 million tax relief program, right across the province, recognizing that businesses were being challenged.
But we heard from the economists that government consults with, the Economic Forecast Council, and they were very clear that targeted relief was what was needed now. The targeted relief — not broad relief but targeted relief — needed to be adapted. Yes, they still needed supports, but they needed targeted supports. So that’s what we did. We took their advice, and we created a number of programs, depending on what was happening with public health orders.
That’s why we put together the small and medium-size business grant. That’s why we did the circuit breaker grant. If I recall, it was an eight-day turnaround. I’m just checking with my colleague, the Minister for Jobs, Economic Recovery and Innovation. They have been getting that out into the hands of businesses that needed it most. That’s really the focus, based on the best advice that was available to government, in order to deliver to those businesses that needed it most.
M. Bernier: I know our time is unfortunately getting close to the end, as I somewhat joked with the minister this morning about having a few more days’ worth of questions. Well, I definitely, easily could have a few more days’ worth of questions in Finance. I know that the Leader of the Official Opposition could have easily gone for a few more days with questions with the Premier. It’s unfortunate her time was cut short as well, because there’s a lot of information that we just…. I think it’s important that we hold government to account — but also to ask questions for the people, the citizens of British Columbia.
I just want to go with that before I run out of time on a few things. To the minister’s comments just now that she made. Look, I have a lot of good friends that are fortunate enough to own restaurants. I’ve actually gone and met with them. I’ve asked, “Are you struggling to get employees?” — to the minister’s point. They acknowledge: “Yes, absolutely. But the reason why we’re struggling to get employees right now is because all we can offer is part-time. We can’t offer certainty.”
A lot of friends that I have who work in the hospitality sector have chosen right now — and hopefully that changes, and they go back — to not go back to working in restaurants or in the hospitality sector because of that uncertainty. It’s been a roller-coaster ride for them for the last 18 months.
I’m not putting the roller-coaster ride blame on government. We are in a pandemic. There are decisions that are being made by the Health Minister and from government, through the advice through Dr. Bonnie Henry. But it’s also fair to say that that uncertainty has created a lot of angst for people in the hospitality sector.
So it is somewhat disingenuous to say, “Look there’s lots of opportunity out there,” when we also have that challenge in front of us. It’s also important to recognize that the minister and government have a lot of tools and opportunity here if they want to talk, as the minister acknowledged in my commentary earlier, to the 61,000 people in the private sector who are unemployed.
The minister rightfully says that, in some areas, people are starting to get back to work. Businesses are hoping and having to have that optimism of employing people back. But as we’ve seen in a lot of sectors, if you’ve lost your job for unfortunate reasons in the tourism sector and all of a sudden there’s a job working at a mill or as a welder, well, that’s not compatible. Just because somebody is employed and there are job openings somewhere doesn’t mean that they’re the right skill set and people ready to fill those jobs.
So maybe to the minister on that…. Well over $2 billion in funds for COVID relief and supports, $1.1 billion — I believe, in our discussion yesterday — of contingencies for COVID supports that are not earmarked yet.
Can the minister maybe determine, then — how much of that $1.1 billion in contingencies, if the minister is going to say all these people need to be retrained for the jobs that are coming — what’s happening? Is she going to be able to draw on some of that money? Are people going to be able to apply now to get some short-term, immediate training now to try to get them into the workforce, maybe using some of that $1.1 billion in contingencies?
Hon. S. Robinson: I think it’s important. I agree wholeheartedly that investing in skills training is absolutely critical. It’s critical to our government. It’s why, in this budget, we have $32 million allocated for skills training and another $36 million to support youth employment. We recognize that. That’s, again, an example of targeting where we saw gaps and where we see gaps.
We’re going to continue to invest in skills training, because we know that that plays a big role in our recovery. It’s very much top of mind for government. I look forward to ongoing investments in the people here in British Columbia.
M. Bernier: I believe this will probably be my last question. I’m getting the thumbs up from a Government House Leader who is obviously very anxious to get through some procedural stuff that needs to be dealt with in the House. I think I will end with a bit of a question and some commentary, to allow the minister the opportunity to close.
I want to thank the minister. I want to thank her staff — as we’ve joked about quite a bit, the voices in the minster’s head. At least she has an excuse. I don’t have an earpiece for the voices in my head. She has some great staff, and I want to thank them as well.
We have acknowledged, through the course of estimates, and all of my colleagues have acknowledged through the course of estimates, the great work that the public service does. As we said, it was public service…. I’m trying to remember if it was a week or a month. I do want to acknowledge the great work that they do as well.
I want to thank the minister as well. We’ve had, I think, some very good dialogue, candid dialogue, here and some good information that we were able to extract, I guess — I don’t know if that’s the appropriate word — through that debate and conversation on the benefits of what’s happening in British Columbia right now.
I share with the minister — I believe, I know — the hope that we’ve talked about, that we are getting close to an end, as more and more people get vaccinated and all the great numbers we’re seeing right now for second vaccinations. I know we all, in this House, are encouraging everyone to please, please do that.
We want the economy to be reopened. We want people back to work. We want to see investment in British Columbia. We want to see cruise ships going back up and the tourism sector back — thriving — which is such a multi-multibillion-dollar part of our economy.
It’s unfortunate that I didn’t get a chance, in our timing, to get into more specifics around that and some of the discussions that I wanted to cover around the PST rebate and why some groups were included and some were excluded. I think I will take the opportunity over the next while to possibly have those candid — maybe outside of this House — conversations with the minister, because there is a lot still to cover. It’s unfortunate that we didn’t have enough time to get through all that.
But I’ll just end, again, with thanking the minister and her staff for the last few days and for the information we’ve been able to share to help the people of British Columbia. Thank you.
Hon. S. Robinson: I would like to take a moment, first of all, to thank the people that talk to me in my ear. They have done an outstanding job. I don’t know that the member from Peace River understands the coordination of the hybrid model and the fact that staff normally would be sitting behind me. I’ve got a sheet of paper about who is where and in which room, who’s quarterbacking the call. Then there are different voices, and I don’t know who is talking, and sometimes there are two or three voices. But they’ve been outstanding.
So I want to acknowledge and I want to thank Heather Wood, my deputy minister, for her quarterbacking skills in paying attention to who should be up and who should unmute and who should mute. It’s a significant amount of work. I really express gratitude to all of the staff that have supported us in this debate.
I want to thank the Finance critic for his thoughtful questions. They were good, solid questions. I know that we’re going to continue to have robust discussion about how to best support British Columbians through what I imagine is sort of the tail end of this pandemic. There’s certainly more work to do on behalf of government — on behalf of all members of the House.
I want to just say that I look forward to seeing everyone back here in the fall, fully vaccinated, without these pieces of cloth on our face. That would be, really, a wonderful opportunity for us all to get back together.
The Chair: Thank you, Minister.
Since everybody’s in a thanking mode, I’d like to thank all the members of the Legislature for the privilege and honour of being your Chair and serving you over the last few months. I wish you all a great summer. Actually, it reminds me of an Alice Cooper song, and I won’t sing it here, because the House Leader wants to go with the votes.
I would also like to thank all the staff that have been supporting us here in the Legislature. I hope everybody has a safe summer.
Vote 26: ministry operations, $307,466,000 — approved.
Vote 27: government communications and public engagement, $28,338,000 — approved.
Vote 28: B.C. Public Service Agency, $59,507,000 — approved.
Vote 29: benefits and other employment costs, $1,000 — approved.
ESTIMATES:
OTHER APPROPRIATIONS
Vote 44: management of public funds and debt, $1,339,774,000 — approved.
Vote 45: contingencies (all ministries) and new programs, $4,250,000,000 — approved.
Vote 46: capital funding, $3,447,983,000 — approved.
Vote 47: commissions on collection of public funds, $1,000 — approved.
Vote 48: allowances for doubtful revenue accounts, $1,000 — approved.
Vote 49: tax transfers, $1,871,000,000 — approved.
ESTIMATES:
LEGISLATIVE ASSEMBLY
Vote 1: Legislative Assembly, $86,062,000 — approved.
ESTIMATES:
OFFICERS OF THE LEGISLATURE
Vote 2: Auditor General, $20,082,000 — approved.
Vote 3: Conflict of Interest Commissioner, $738,000 — approved.
Vote 4: Elections B.C., $21,126,000 — approved.
Vote 5: Human Rights Commissioner, $6,815,000 — approved.
Vote 6: Information and Privacy Commissioner, $7,589,000 — approved.
Vote 7: Merit Commissioner, $1,377,000 — approved.
Vote 8: Ombudsperson, $10,802,000 — approved.
Vote 9: Police Complaint Commissioner, $5,460,000 — approved.
Vote 10: Representative for Children and Youth, $10,641,000 — approved.
Hon. M. Farnworth: I move that the committee rise, report resolution and completion of the estimates of the Ministry of Finance and further report resolutions and completion of the estimates of the Legislative Assembly and officers of the Legislature and ask leave to sit again.
Motion approved.
The committee rose at 4:05 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of Supply (Section B), having reported resolutions, was granted leave to sit again.
Committee of Supply (Section A), having reported resolution, was granted leave to sit again.
Committee of Supply (Section C), having reported resolution, was granted leave to sit again.
Hon. M. Farnworth: I call for consideration of the resolutions from the Committee of Supply.
Supply Motions
REPORTS OF RESOLUTIONS FROM
COMMITTEE OF
SUPPLY
Hon. S. Robinson: I move:
[That the reports of resolutions from the Committees of Supply on May 11th, 12th, 13th, 17th, 18th, 20th, 31st, and June 1st, 3rd, 7th, 8th, 10th, 14th, and 17th be now received, taken as read and agreed to.]
Motion approved.
FUNDS GRANTED FOR PUBLIC SERVICE
Hon. S. Robinson: I move:
[That there be granted to Her Majesty, from and out of the Consolidated Revenue Fund, the sum of 57 billion, 188 million, 294 thousand dollars towards defraying the charges and expenses of the public service of the province for the fiscal year ending March 31, 2022. This sum includes that authorized to be paid under section 2 of the Supply Act (No. 1), 2021.]
Motion approved.
FUNDS GRANTED FOR
CAPITAL, LOANS, INVESTMENTS
AND
OTHER FINANCING REQUIREMENTS
Hon. S. Robinson: I move:
[That there be granted to Her Majesty, from and out of the Consolidated Revenue Fund, the sum of 1 billion, 190 million, 40 thousand dollars towards defraying the disbursements for capital, loans, investments and other financing requirements of the province for the fiscal year ending March 31, 2022. This sum includes that authorized to be paid under section 3 of the Supply Act (No. 1), 2021.]
Motion approved.
FUNDS GRANTED FOR REVENUE COLLECTED
AND TRANSFERRED TO
OTHER ENTITIES
Hon. S. Robinson: I move:
[That there be granted to Her Majesty, from and out of the Consolidated Revenue Fund, the sum of 1 billion, 391 million, 333 thousand dollars towards defraying the disbursements for revenue collected for, and transferred to, other entities for the fiscal year ending March 31, 2022. This sum includes that authorized to be paid under section 4 of the Supply Act (No. 1), 2021.]
Motion approved.
Introduction and
First Reading of Bills
BILL 16 — SUPPLY ACT, 2021–2022
Hon. S. Robinson presented a message from Her Honour the Lieutenant-Governor: a bill intituled Supply Act, 2021–2022.
Hon. S. Robinson: I move that Bill 16 be introduced and read a first time now.
Hon. Speaker, this supply bill is introduced to authorize funding for the operation of government programs for the ’21-22 fiscal year. The House has already received, taken as read and agreed to the reports of resolutions from the Committees of Supply after consideration of the main estimates.
In addition, the House has resolved that there be granted from and out of the Consolidated Revenue Fund the necessary funds towards defraying the charges, expenses and disbursements of the public service of the province for the fiscal year ending March 31, 2022.
Hon. Speaker, it is the intention of the government to proceed with all stages of the supply bill this day.
Mr. Speaker: Members, you heard the motion. It is the first reading of the bill.
Bill 16, Supply Act, 2021–2022, introduced, read a first time and ordered to proceed to second reading forthwith.
Second Reading of Bills
BILL 16 — SUPPLY ACT, 2021–2022
Hon. S. Robinson: I move that Bill 16 be read a second time now.
Motion approved.
Hon. S. Robinson: I move that Bill 16 be committed to a Committee of the Whole House for consideration forthwith.
Bill 16, Supply Act, 2021–2022, read a second time and ordered to proceed to a Committee of the Whole House for consideration forthwith.
Committee of the Whole House
BILL 16 — SUPPLY ACT, 2021–2022
The House in Committee of the Whole (Section B) on Bill 16; S. Chandra Herbert in the chair.
The committee met at 4:14 p.m.
Clauses 1 to 4 inclusive approved.
Schedules 1 and 2 approved.
Preamble approved.
Title approved.
Hon. S. Robinson: I move that the committee rise and report Bill 16 complete without amendment.
Motion approved.
The committee rose at 4:15 p.m.
The House resumed; Mr. Speaker in the chair.
Mr. Speaker: Members, we have to have the committee Chair back again.
Committee of the Whole House
BILL 16 — SUPPLY ACT, 2021–2022
(continued)
The House in Committee of the Whole (Section B) on Bill 16; S. Chandra Herbert in the chair.
The Chair: Members, we’ve got one more vote to do.
Schedule 3 approved.
Hon. S. Robinson: Mr. Chair, I move that the committee rise and report Bill 16 complete without amendment.
Motion approved.
The committee rose at 4:17 p.m.
The House resumed; Mr. Speaker in the chair.
Mr. Speaker: I know people are anxious to go home, but we have to do it correctly.
Report and
Third Reading of Bills
BILL 16 — SUPPLY ACT, 2021–2022
Bill 16, Supply Act, 2021–2022, reported complete without amendment, read a third time and passed.
Mr. Speaker: Members, we are waiting for Her Honour the Lieutenant-Governor. I am advised that she will be here fairly soon. In the meantime, we will have the House in recess for a few minutes.
The House recessed from 4:18 p.m. to 4:24 p.m.
[Mr. Speaker in the chair.]
Mr. Speaker: I am advised that Her Honour is in the precinct, and she should be here any minute. In the meantime, just stay in your seats. We are waiting for her.
Her Honour the Lieutenant-Governor requested to attend the House, was admitted to the chamber and took her seat on the throne.
Royal Assent to Bills
Clerk of the Legislative Assembly:
Budget Measures Implementation Act, 2021
Accessible British Columbia Act
Electoral Boundaries Commission Amendment Act, 2021
Public Safety and Solicitor General Statutes Amendment Act, 2021
Municipal Affairs Statutes Amendment Act, 2021
Miscellaneous Statutes Amendment Act, 2021
In Her Majesty’s name, Her Honour the Lieutenant-Governor doth assent to these acts.
Law Clerk:
Supply Act, 2021–2022
In Her Majesty’s name, Her Honour the Lieutenant-Governor doth thank Her Majesty’s loyal subjects, accepts their benevolence and assents to this act.
Hon. J. Austin (Lieutenant-Governor): As always, thank you all for your splendid work.
I will say: ÍY SȻÁĆEL NE SĆÁLEĆE. ÍY, ȻNES QENOṈE ṮÁ.
Good day, friends. It’s wonderful to be among you today. I mean that so very sincerely. I thank you, really from my heart, for all that you’ve done over this past session. It represents, I think, an enormous amount of work. I want to thank, also, all of the people who support you — those in your legislative and constituency offices and also your friends and family who support you in your family, in your lives and in your communities.
I would be sadly remiss if I didn’t also acknowledge the really splendid work of Clerk Kate Ryan-Lloyd and her team — who have, I think, moved heaven and earth to keep the Legislature functioning smoothly through a most challenging and crazy and unusual year. Thank you all so much.
I do hope that you are…. I know there’s work ahead this summer as well, but I do hope you all have some time to relax and enjoy families and friends and get some, frankly, much-needed downtime. I look forward very much indeed to seeing you in the fall and, hopefully, welcoming you to Government House, where we can meet in person and have some social time together.
Meanwhile, take good care, everyone. All the best. Thank you again.
Her Honour the Lieutenant-Governor retired from the chamber.
[Mr. Speaker in the chair.]
Mr. Speaker: Members, we have to take care of a couple more items. Before we start that, I want to remind each and every one of you who had the privilege to sit in the chamber: please make sure you remove your personal items from your drawers. Otherwise, they will be gone forever.
Government House Leader.
Hon. M. Farnworth: Thank you, hon. Speaker. One additional thing: I think we should give the staff who support us in this chamber and in this building a big round of applause for doing an amazing job. [Applause.]
I’d also be remiss if I didn’t give a big shout-out to my ministerial assistant, Will Maartman, who helped with the estimates process and got it organized. Will, you did a great job.
With that, I move that the House, at its rising, do stand adjourned until it appears to the satisfaction of the Speaker, after consultation with the government, that the public interest requires that the House shall meet or until the Speaker may be advised by the government that it is desired to prorogue the second session of the 42nd parliament of the province of British Columbia. The Speaker shall give notice to all members that he is so satisfied or has been so advised, and thereupon the House shall meet at the time stated in such notice and, as the case may be, may transact its business as if it had been duly adjourned to that time and date.
That by agreement of the Speaker and the House Leaders of each recognized caucus, the location of sittings and means of conducting sittings of this House may be altered, if required, due to an emergency situation or public health measures and that such agreement constitute the authorization of the House to proceed in the manner agreed to. The Speaker shall give notice to all members of the agreement and shall table it to be printed in the Votes and Proceedings of the House at the next sitting.
That in the event of the Speaker being unable to act owing to illness or other cause, the Deputy Speaker shall act in his stead for the purpose of this order. In the event of the Deputy Speaker being unable to act owing to illness or other cause, the Deputy Chair of the Committee of the Whole shall act in his stead for the purpose of this order. And in the event of the Deputy Chair of the Committee of the Whole being unable to act owing to illness or other cause, another member designated collectively by the House Leaders of each recognized caucus shall act in her stead for the purpose of this order.
Motion approved.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until further notice. Have a wonderful summer. Be safe. Thank you.
The House adjourned at 4:37 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF HEALTH
(continued)
The House in Committee of Supply (Section A); B. Bailey in the chair.
The committee met at 1:06 p.m.
On Vote 32: ministry operations, $23,725,698,000 (continued).
Hon. A. Dix: I just have one or two words before we begin, but I’ll perhaps share that with the Clerk. Just a quick response to one of the questions yesterday around the First Nations Health Authority. This response will be provided in writing, as well, to the member for Kelowna-Mission. It was about the First Nations Health Authority and its funding.
Just to put the general quantum, in terms of last year, base funding to the First Nations Health Authority from the ministry was $32.82 million. One-time funding was $46.46 million, including $20.1 million to support the multi-year electronic medical record project and other initiatives which are detailed here in the letter.
In addition, the First Nations health benefits plan, plan W, provides PharmaCare coverage for clients of the First Nations Health Authority. This is a first-of-its-kind, first-dollar provincial First Nations drug benefits plan. It started on October 1, 2017. For the fiscal year 2019-20, total plan W expenditures were $90,393,161. For the fiscal year 2020-2021, the expenditures were $95,555,495. As the First Nations Health Authority reimburses the ministry quarterly for plan W expenditures, no money is allocated, but that’s the expenditure.
A note that the most recent year I have here, the federal government provides $548.8 million to the First Nations Health Authority, which grew out of Indigenous health services from the federal government. That’s their allocation in the 2019-20 fiscal year, just to give a sense of the quantum.
R. Merrifield: Today we’ll start off and we’ll talk a little bit about primary care networks as well as GPs and the urgent primary care centres that we have been embarking on. Since the last party’s government, I guess that it was back in 2015-2016, they were started and have continued and, I think, evolved over the course of the last four years. So I do want to get into some questions on that.
I want to preface some of my comments by saying that I think that over the course of the last three days, the minister has been asked a number of questions involving different parts of the health care system that are under stress, or in distress, in terms of health and human resources.
This is such an important aspect in terms of our primary care network and how people access primary care in a very meaningful way. In fact, it’s noted by the World Health Organization as part of the most inclusive, equitable, cost-effective and efficient approach to really enhance people’s health and well-being.
It’s also critical that we, as health systems, become more resilient in our response to health crises. I think that COVID-19 has shown us…. Even in the course of our conversation and in hearing about much of the crisis that’s in the health care system today, we know that some of that is because we haven’t built in the resilience in our primary care network.
With that, I will start with my first question, which is: what is the total wait-list across the province for GPs? And what is the total number of unattached patients at this time?
Hon. A. Dix: I think that in primary care, they’re not wait-lists in the sense that we understand them in surgical care. For example, someone who is young and healthy may not have a primary care physician that they’ve attended in recent years, and they’re not on the wait-list the same as someone who has hurt their knee and requires knee surgery and is on a surgery wait-list. So it’s not a wait-list in that sense of the term.
What we are developing…. And I think this is where we need to go to fashion an evidence-based program. It’s part of our primary plan to provide a health connect registry that’s going to be implemented across primary care networks and service areas. This will allow us to have baseline daily data on this, because, primarily, the numbers are estimates around an attachment to providers largely coming from the Canadian community health survey. That number has been, and consistently been, around 800,000 people in B.C. without a family practice doctor, based on those measures, which tend to be historic and are based on survey data.
So what we’re doing as part of our program is developing a health connect registry so that we can get regular information on how people are attaching to family practice doctors by definition. That registry will come into place once it’s going to be launched in the fall. It’s going to be available at healthlinkbc.ca and will provide the kind of information — for example, in next year’s estimates — that the member is asking for.
I think this is one of the areas that has made this debate challenging. One of the things that I wanted to direct early on, because it’s natural to ask the question: who’s without a family doctor…? We tend to depend on survey data to define that. We have other means of looking at the question, including through MSP billings and so on, but those don’t necessarily provide the information required.
The idea is to connect people to a family doctor, to measure it day to day, week to week, month to month, and that’s what the health connect registry will do. That is what we can expect soon.
Those statistics that are provided through the Canadian community health survey are, I think, inadequate in that their surveys are essentially large public opinion surveys. What’s needed is granular information to say that we know in Chilliwack, for example, there’s less attachment to family practice doctors. We know in some other communities, there’s less attachment to family practice doctors, but it helps in terms of applying resources to define that, and that’s what health connect will do.
R. Merrifield: At this time, does the ministry not currently track unattached patients per health authority or per community?
Hon. A. Dix: We do, but they’re estimates. Again, estimating with respect to the attachment of someone who hasn’t connected to a family doctor or hasn’t attended a family doctor in recent years is difficult.
That’s why we are changing this system, because it’s important, when you put forward as dynamic and extensive a primary care plan as we have over the last three years, with urgent primary care centres, primary care networks, substantial training, significant additional FTEs — one wants to be able to judge that against a common basis of knowledge. I think that’s the point the member is making, and that’s why we’ve made these changes to the system.
R. Merrifield: How much of the current budget is allocated towards the health connect registry, and what is the anticipated time frame of its availability to British Columbians?
Hon. A. Dix: The investment is being achieved through capital funding. It’s not an expensive proposition. It’s part of the primary care plan of about 288,000, and that will be operationalized through the activities of HealthLinkBC, which, of course, has a wider budget than that.
R. Merrifield: How many community health centres are currently operating in B.C.?
Hon. A. Dix: I will just answer generally, because I know that the member has questions. So there are essentially two types of community health centres, if you will. There are ones with non-profit boards that tend to be members of the association, which we’ve worked and collaborated with significantly in recent times.
A significant number of those, it should be said, are on the Gulf Islands, but there are community health centres in different communities around British Columbia.
Part of our strategy is to favour the development of that. In addition to that, we’re developing what you might call community health centres that are part of our collaboration with the First Nations Health Authority. So those are significant ones.
There have been new community health centres in the last number of years — one in Kamloops, one in development in Bowen Island. For example, we’ve started one that’s called the RISE Community Health Centre. That’s in East Vancouver. There’s a Lu’ma community health centre, which has a First Nations governing board — a community health centre that’s also in Vancouver. There’s a new one in Kamloops. Others are in development around the province, including in the Victoria area.
There’s one that we’re actively pursuing and expect to start shortly in Lake Country. That has been an active community that’s been involved in wanting to build a community health centre. We’ve been supportive of that, and we see that as a good model to have in that community. As the member will know, one of the most successful urgent primary care centres in the province is in Kelowna in terms of visits. It’s just been an extraordinary success in a difficult time. But that model doesn’t necessarily work in every community. There’s also another one in West Kelowna — those communities.
So in B.C., over 100; I will get the exact number. About 30 of those have their own governing boards. They would say that’s a community health centre — one that has a non-profit governing board. Those are all over the province. We’ve seen the addition of some, and we’re obviously ambitious about building out more of those. There has been significant increase in both kinds, net increase in both kinds, over the last couple of years — in addition, obviously, to primary care networks.
In some cases, community health centres are a key part of primary care networks. But I think that the important thing about community health centres, the ones that aren’t health authority–directed, is that they come from the community. They require the development of a community board and a business plan from the community. Where communities such as Colwood and Lake Country have expressed an interest, we’re supporting that. I expect those community health centres to be starting quite soon.
R. Merrifield: What are the different types of community health centres? There seems to be different names that are used. Some are primary care centres. Some are urgent primary care centres. Some are education centres. Is there a structure in terms of the different types and certain thresholds or criteria for each of those types within each of the communities?
Hon. A. Dix: Urgent primary care centres we don’t define as community health centres in that sense. They have priority in terms of attachment. They provide urgent care, especially to people who are unattached in communities. Those were started, as everyone knows, in 2018. There are now 23 active ones, and it’s our intention to have 30 at the end of this fiscal year and to build out to 40 at the end of fiscal year ’22-23.
They fit a particular model of care. We’ve gone through separate and distinct waves of development of urgent and primary care centres. So when I was answering the number of community health centres, I wasn’t including, in that number, urgent and primary care centres. But suffice to say that those centres have been…. Obviously, we supported the model and are proud of the model. But during this time of COVID-19, those urgent and primary care centres have proven invaluable — and the people who work in them.
There are some 229 FTEs who staff…. At the end of the fiscal year, the 20 that were…. There are three that are just starting operation. But 20 at that time, 229 FTEs of clinical resources across our urgent and primary care centres….
So that’s the first thing. Just to put it in context, the number of visits to those urgent primary care centres, of course, depends on the centre and the population around it. But of the initial urgent and primary care centres, there were five initially started. The first were in Kamloops, in Surrey, in Vancouver, in the capital regional district and in Quesnel.
Those have had and have built up significant audiences, those ones combined, since they started up — and they started up at different dates — for 261,051 visits to the site 2 UPCCs that include Burnaby, which has the largest number of visits; Prince George, which has a very significant number of visits; Nanaimo; and North Shore. Kelowna, which started later than the other ones, has had 41,000 visits since it started, which is, I think, a very significant first year of visits there. They’ve also been successful. Those site 2 ones are about 302,342 visits since they began. So even though they started later, they’ve actually had more visits than site 1.
Then, in the third sort of wave of these, we have included Victoria, in James Bay. We did one in association with a community health centre called REACH, which is an innovative community health centre on Commercial Drive in Vancouver, in Ridge Meadows, in Vernon. All of those have been quite successful, in that turn; and then in Castlegar, Surrey-Newton, Abbotsford and West Kelowna, more recently, and obviously new ones since then.
Across the urgent and primary care centres, they’ve provided a distinct need, both for urgent care services — they’ve certainly been invaluable during COVID, because there’s a lot of urgent care — and quite a few doctors offices have moved to virtual care, so these centres stayed open and, naturally, received a very significant and positive response.
The second approach is primary care networks. In terms of budget, that’s our most significant reform, which is to build team-based care in communities across British Columbia. There we do have, essentially, community clinics and we’re bringing about team-based care working with local communities, First Nations and, most importantly, divisions of family practice. The idea is to build out team-based care, not as an alternative to the existing system, but integrated in the existing system.
So how do you get a primary care network approved? The proposal first comes from the community to the Ministry of Health and then is approved by the Ministry of Health. So those primary care networks…. Just to put it in context, we have the most recent staffing workforce report, showing that these initiatives, in total, have added 693 FTEs to primary care, and that 245 people were hired across 18 primary care networks.
Funding is staggered, so the first year is a the third of the funding, then the second year and then the third year. They’re built out over three years. So the ones that started first…. For example, the one in Fraser northeast, which is basically Coquitlam, Tri-Cities…. New Westminster was one of the first, and it developed and had much more significant emphasis, for example, in that case, on counselling. That primary care network and the services that they advanced locally in the primary care network…. That primary care network has done very well. So we have built out primary care networks, as well.
Those support local divisions of family practice. The idea is to attach new resources, whether they be nurses or nurse practitioner or doctors or other health professionals, to existing practices and build out networks of people on kind of a hub-and-spoke model. They’re driven by local considerations. The configuration of doctors might be different in a community like Saanich or Sidney, which have more elderly people, than it is in the Tri-Cities, where there was significantly greater focus on maternity care. That’s been driven from the community.
Obviously, we give direction to that, of what we want to see. That’s building out team-based care, and that’s a significant part of our investment. We’re building, year onto year, more primary care networks. I would say that’s the core of what we’re trying to do, which is the transformation of the existing primary care system to a team-based model.
The third element are what we strictly call community health centres. I spoke about those earlier. We’re trying to advance those. Those are organizations that come from the community, that have non-profit boards and that reflect the needs of particular communities. So that’s a community health centre.
Of course, a very significant part of all of this is the dramatic increases, for example, in the number of nurse practitioner training spaces that we’ve had in B.C. in the last few years.
Nurse practitioners were brought into British Columbia around 2006, but our utilization rate was dramatically lower than everywhere else before we started the primary care plan. We see, obviously, nurse practitioners as a significant part of that plan, in terms of their utilization.
A lot of that had to do with funding challenges. I remember having this discussion with Mr. Kevin Falcon, who was then Minister of Health, around the challenge of funding, where there would be a special program created for a short period of time — sometimes from federal money, sometimes from provincial money — to add nurse practitioners to a practice, and then the money would run out. The doctors could be paid through MSP, but there was no mechanism to pay nurse practitioners. I’d say that Mr. Falcon was quite frustrated with that approach at the time. We had a discussion: “Well, how are we going to make this work?”
So part of this funding for primary care networks…. What makes it challenging is that sometimes, side-by-side, people are paid fee-for-service out of MSP and others are paid in salary. There are some logistical challenges in that. The people who work in this area will smile when I say those are challenges that can be overcome, because they’re overcome, but that requires a lot of work. So that’s the primary care network approach.
The key element of it is obviously health human resources, as with everything. These are the elements to expand out to deal with the immediate problem — urgent and primary care centres — and to provide an alternative for care for people that’s also open on evenings and weekends. One the reasons it’s been so successful in Kelowna, I would argue, is just that element of it. It’s open at times when regular doctor’s offices aren’t open. It was open at times, and that would be true in West Kelowna, when people need them, when working people need them, which is often not at 2 o’clock in the afternoon, which requires them to take time off work.
I think as a primary care plan…. I’m sure the member will follow up, and I can take her through the incremental dollars that are part of that plan that she might be interested in, or I can just share that information with her. But those are our deliverables.
In terms of primary care networks, we have: 15, 2018-19; 25, 2019-20; 45 at the end of this year; 65 at the end of next year is our plan; and 85 in 2022-23. Each of those will develop in the same way — a portion in the first year, then the second year and then the third year to build out the primary care networks in communities.
All of them come from proposals from local communities. Our expectation, as I said, is 30 urgent primary care centres in this fiscal year — we hope by December, but certainly by March of 2021. There’s also a proposal that’s started. We have several of these, of which Lu’ma is one — First Nations–led community health centres. Our plan is to, in the next few years, look to 15 of those.
We’ve also opened three nurse practitioner–led clinics. One is in Nanaimo, one in Victoria and one in Surrey, all of which — in Cloverdale and Surrey, in Nanaimo and in Victoria — use a slightly different model. Essentially, as the name would suggest, they are led by nurse practitioners. Those have been very positively received in those communities.
Finally, I’d say with respect to urgent and primary care centres, there are two models. One is health authority owned and operated. An example of that would be Kamloops, which is health authority owned and operated. And there’s Surrey, which is health authority owned and operated. Fraser Health owns it. They operate it. They employ the staff.
For others, we’ve partnered with existing private practices, whether they be non-profit — in the case of REACH, as I described — or for-profit in the case of, for example, Nanaimo or Vancouver, which is operated by the Seymour medical group. We had existing practices who were in place in the community, in the downtown core where we wanted to be, and could add these additional services and capacity and team-based care at their resource.
We’ve used both models. In Kelowna, it’s operated by Interior Health. But in Prince George, it’s operated in consultation, really, with the broader division of family practice, connected with a primary care network. I’d say that the primary care network in Prince George is particularly effective.
Some of this depends on the development of doctors in a particular community. For example, in some communities, doctors work very closely together and operate effectively as a network already — or did. In other places, building that sense of team for the proposal is taking longer. But I think in general, we have met the targets we’ve set in terms of developing those networks up to now.
R. Merrifield: Are these three different levels — the urgent primary care, the primary care networks and then the community health centres? If we just were to talk about the urgent primary care centres as well as the primary care networks, my understanding is that the primary care network is coming from an application from the community to the Ministry of Health, whereas the urgent primary care is really established by the Ministry of Health itself. Of those, which are coming from GPs that are already existing within the community? How many of these centres would actually have new recruits into the community?
Hon. A. Dix: I think it’s a little bit more complicated, because the urgent and primary care centre in West Kelowna is obviously going to be connected to the rest of the primary care network. It’s part of it, and we’ve had remarkable support from local divisions of family practice for those. So they’re not two separate things. Urgent and primary care centres are one model, and they fit into the primary care networks, which is the proposal for team-based care.
In terms of personnel — and I’ll share this, our primary care workforce report — we’ve added 693 FTEs that have been hired into 176 clinics and regional hubs. They include primary care networks, urgent and primary care centres, nurse practitioners, blood clinics, First Nations primary care centres and community health centres, since the beginning of the plan.
To give the member more information above that, 245 of the FTEs have been hired across 18 primary care networks in that case. That was in year 3 of the implementation. In year 2 of the implementation, 184 FTEs were hired across 21 primary care networks — and also significant numbers in the past year at community health centres and First Nations primary care centres.
The total clinical resources that have been added…. This is the net FTEs. We don’t continue to add if we hire one person and then they move on to something else. These are the FTE positions that are currently filled: 229 FTEs of clinical resources or staff across 20 urgent and primary care centres. This report is a couple of months old.
You see across…. There’s, for example, the three urgent and primary care centres in the Kelowna area that are essentially, in terms of their maximum, about 95 percent to 96 percent staffed. The one in Kelowna is fully staffed in terms of its FTE component. Obviously, as in any large organization, there are replacements, people who are changing positions at different times. So that’s what’s happened.
I think that given all of the other challenges…. We talked the other day about how many people have been added to surgery, significant increases in resources and people involved in mental health and addictions. This is a significant investment in net new positions in primary care. That said…. And we’ve seen, through the colleges — well, we only have so much time; I’ll share this information as well with the member — the increases in the overall numbers of GPs year into year and so on, which have been significant.
But it’s a moving process, of course, because in a community like Victoria, we’ve been adding lots of resources. In communities that themselves have an older population, the population of primary care providers is also getting older. So there is the task of replacing and addressing that.
The change, I think, in practice that we’ve seen across primary care over decades from the sole provider…. When my family came to B.C. in 1969, we got a family doctor, and he was the only doctor in the place. And then he’d go away, and he’d get a replacement for a couple of weeks. He was our doctor, right? He was the only person to practise.
That’s now not the model of practice in general. There has been a move to team-based care amongst doctors, but this is a broader move to include other health professions in primary care as it’s delivered.
R. Merrifield: Of the 693 FTEs, could I be provided with a breakdown of how many of those are GPs, nurse practitioners, nurses, etc., at some point? It doesn’t have to be read into Hansard at this point, but if I could be provided with a chart, that would be much appreciated.
My next question would be this. What is the goal of attachment within these centres?
Hon. A. Dix: In respect of the member’s time, because this is our final time for these estimates this year, we’ll provide that. Each time we announce a primary care network, there’s an attachment goal. There’s a hiring goal, and there’s an attachment goal. What I was asking for was just the announcement of the Fraser northeast primary care network as an example of what that is.
Each time, there’s an attachment goal, and there’s an agreement between divisions of family practice and local communities by wave. Every time we do that, we have an attachment goal. There’s also an attachment goal…. The UPCCs have two goals. One is to provide care — you can see that they’re doing that from the numbers I have described — and also to promote attachment.
When you go to an urgent primary care centre, you may already be attached. And it’s a Sunday, and you’re going there because it’s a Sunday. But if you’re not attached, we engage with you. The local division of family practice then seeks to attach you within the network. Some of the divisions of family practice have quite excellent ways that they do that, particularly in Vancouver but in other communities as well. So that’s the idea.
The urgent primary care centres are providing the services. The intent is to attach for a broader primary care network so if someone comes without a doctor, needs care and clearly needs long-standing care — for example, someone with a chronic disease — the effort is to engage with them, with the doors open at the urgent primary care centre. Some people will be attached directly with the UPCC. That’s not generally the model. Then the effort will be to attach them permanently to their own GP or group of GPs or nurse practitioners or nurses or other health professionals.
R. Merrifield: I look forward to seeing those numbers from the minister.
We spoke of 800,000 unattached patients or thereabouts based on a survey response, but obviously, that’s the same survey that has been taken for the number of years previous as well.
In looking back in past estimates, that number actually is growing, not stable. It was, back in 2015-2016, about 700,000, so we’re talking about 100,000 additional unattached patients. There is an issue with unattachment, as we know. We know that unattached patients actually cost the system more, but they have worse outcomes, as well, in terms of their overall health.
In looking at this, I look forward to seeing how many of the GPs specifically but also the nursing staff are coming from already existing positions within the community and how many are actually coming from outside of the community into these facilities. Obviously, recruitment and retention, as well as training, are paramount.
I think we saw in Port McNeill, which was a very publicized case in which we had a GP that had basically given his career to the community and then lobbied very hard…. In fact, when you google this particular physician, the first articles that you get were him begging for the health authority to come in and actually help with creation of one of these care facilities that we’ve just mentioned, either primary care or urgent care. The articles actually paint a very different narrative, a narrative in which he wasn’t consulted by the health authority coming in, in which he wasn’t a part of the planning, even though he was the sole primary care provider for that entire region.
I won’t digress into all of the details of the story, but my question is this: how are the actual physicians within the communities consulted, and how are they integrated outside of these when they have a fully attached network already, and then a primary care or urgent care facility, whichever the urgent care fitting into the primary care network, is actually created within a community?
Hon. A. Dix: What is increasing also, inevitably, is attachment as well. We have more people in the province. But I think one may want to set a baseline where one will. What I believe is that we need to establish a system that allows us to address this problem and use the data to support what we’re doing.
But I would say this. The primary care networks do what others haven’t done. Know there have been significant efforts. This issue of primary care is central to every Health Minister. I wasn’t the Health critic at the time, in 2013, but at that time, a proposal was made to say that everyone would have a family doctor, in that mandate of that government. A program which was abandoned three years later called GP for Me was put in place.
What we’re trying to do in net new funding — not one-time funding but net new funding over time — is to build out sustainable networks. In every case of a primary care network, the proposal originally comes from the community for just the reason the member suggests — that the people who know best about primary care in a community are the people who live in the communities, the communities in question, the nurse practitioners, the divisions of family practice, and so on. That’s why the primary care network process, which takes time, has been so successful. It’s because it comes from the community.
In terms of what the care needs are in the community and what can be sustained and what the local structure of clinics might be in a community, it’s incorporated by the community first. That’s why we’ve pursued this model of care. It’s to put the community first in those circumstances. In the case of Port McNeill and other communities, health authorities do intervene all the time, especially in rural cases, to ensure there’s a sufficient level of care across communities.
We can talk about rural health care, as well, and all the programs involved in that. But I would say that I think this model, which is founded on a belief in community, of improving on what’s there by building a primary care network, involving the people who are giving their lives to providing the service now, giving their commitment and all of their energy to providing the service now, is the right model.
I would hope that the member would agree that that model of starting at the base of the vision of family practice, the local First Nations, and so on, and building from there is the way to do it. That’s been the process. Our folks at the ministry then work with people. We have a really committed team at the ministry that supports them, and, of course, the health authorities as well.
The final thing I think urgent primary care centres and primary care networks have done is really fully integrate health authorities into primary care in a way that didn’t happen before.
Part of the challenge with primary care in the allocations of budgets is that if I present at an emergency room — which, fortunately, I have not done in a very long time myself, although, obviously, I have helped others in those circumstances — we’re providing the care. Inevitably, that spending can crowd out other spending, because it’s demand care.
Primary care services and the addition of primary care services in communities has traditionally, in health systems across the country, crowded out the demands of acute care and crowded out the demands for primary care. So these proposals have, in a sense, evolved.
Health authorities had them take responsibility, not only for delivery of acute care services in communities and the many other things they do — seniors’ care, and so on — but also given a focus to primary care, which I think has been helpful across the board. They’re not perfect, but it’s progress, and it’s progress because people have been involved.
R. Merrifield: I appreciate that the minister brought up the GP for Me program. Unfortunately, I wasn’t in government back then, so I’m not going to take any responsibility for it. In fact, I’m not in government right now, so I can just ask questions, which I’m very thrilled to do today.
I will use, though, the NDP platform of 2017 in which they actually said that 700,000 people in British Columbia don’t even have a family doctor. That was from the 2017 platform. The population in 2017 was 4.924 million. Today it’s just over 5.1 million. And 800,000 unattached patients is approximately 16 percent of our population, which means that in 2017, when the NDP government took over, we had 9 percent that were unattached. So our unattached patient volume has actually gone up much more significantly than our population, if I use percentages.
In fact, the B.C. College of Family Physicians, who apparently have been involved in the creation of this new program, in February 2020 on a position paper: “We are advocating on behalf of our patients and the 15 percent of British Columbians who do not have access to an ongoing relationship with a family physician.”
I’m all for actually bringing about better outcomes. That’s what I’m all for. I understand that the minister is celebrating the outcomes of these different centres, but I don’t see them resulting in one of the most important measures, which is attachment of patients. I’ll draw his attention to the fact that under an FOI request, Castlegar actually doesn’t attach any patients. They maybe promote attachment, but they don’t actually have any. Right now, there is a wait-list, and they have a wait-list of 66 patients that are seeking attachment to primary care providers.
If I look at other ones…. Even if we look at the Kelowna one, they don’t attach patients. I can tell you, having recently been a resident — I still am a resident of Kelowna — and had my physician, my GP of 45 years, retire, there were no physicians to take me as a patient. I wasn’t able to easily attach. I do take, somewhat, exception to the fact that we’re opening these new centres, and we’re putting them under the umbrella of Interior Health — which means that now the health authority has the burden of the cost — yet we don’t see an increase in attached patients.
What is the minister doing to actually increase the level of attached patients?
Hon. A. Dix: I suppose the hundreds of thousands of people who have been attached, led by some of these initiatives — they matter. The 41,000 people who have gone to the urgent and primary care centre matter, right? They matter, whether they’re permanently attached to a family doctor or they got care that they needed. I think that when people need care, it’s our obligation to try and provide it. Urgent and primary care centres are one aspect of that.
In communities such as Castlegar, we integrate the urgent and primary care centre. They’re not a competitor for local GPs. We integrate them into primary care networks. That’s the purpose of them. They promote attachment. Sometimes they do it directly, but they promote attachment.
They also provide care to many, many people in the province. Currently, our ratio of GPs to population is significantly above the Canadian average. It’s 131 per 100,000 to 121 per 100,000.
We have done something that I think that is genuinely remarkable in the process, which is to significantly integrate nurse practitioners, to increase the number of nurse practitioners that we train every year by two-thirds, by 67 percent, since 2018. And then to integrate them, the nurse practitioners, as a profession into primary care in a way that has never successfully been done before, but was made possible by the advocacy of previous governments.
I will say one last thing about GP for Me. There’s a desire…. That’s a summary view. But what I am indicating is this is a problem that dates for some time. It wasn’t…. The GP for Me had good elements as well as problems that led to the change in the government’s direction about it, but it also had good elements. It also benefitted people. We also learned from it as we developed this plan, as I think that you need to continue to do — which is to learn from the things that work and try and correct the things that don’t.
The member to say that the hundreds of thousands of people who got care at urgent and primary care centres, that that isn’t important. It is important. I think ultimately, she would probably agree with that. One of their priorities is attachment, but providing care, direct care, to hundreds of thousands of people — that’s an achievement. It’s a good course of action, and it has been invaluable in this pandemic where our urgent and primary care centres and the people who work in them have done, I think, heroic work.
R. Merrifield: I hear agreement between me and the minister that there are definitely people being seen and cared for. My issue comes to the fact that they are not being attached. In fact, the minister talked about the hundreds of thousands that were being attached. We’ve only added 176,000 people to our population between 2017 and today, and 90,000 of them are not attached. Which means that we haven’t attached hundreds of thousands of people in the last years. In fact, it’s just the opposite. Our statistics are going in the wrong direction.
I’ll further ask this, because one of my concerns about the care that is being received is not that it’s not excellent care — because I believe wholeheartedly in our front-line staff and in our front-line workers, absolutely — but is that it’s episodic care rather than longitudinal care. If we don’t have longitudinal care, we have chronic disease that doesn’t get treated correctly. We have disease that is missed.
What ends up happening is that our emergency rooms start seeing a higher and higher level of critically ill patients because it hasn’t been caught by a primary care physician, a GP, someone who has attached themselves to that patient, who has ongoing care for that patient.
So my next question is this. How many patients is the expectation that each FTE will see in a given day?
Hon. A. Dix: Obviously, that depends on what that particular person is doing. In some cases…. The advantage of nurse practitioners, in a general sense, has been that they’re able to spend more time with patients. It doesn’t make them less efficient. If you have a chronic disease, such as the one I have, for example, having a nurse practitioner providing that care can have real advantages.
What you need in a health care system, I think, is an immediate response. Urgent and primary care centres have provided an immediate response and aided in attachment, which is what their goal was, and provided team-based care in communities. They’re integrated into primary care networks, which add resources, hundreds of FTEs, to provide more primary care to people in community. The result is… One always starts with a significant challenge, and the challenge isn’t resolved and it will continue to be worked on.
But 693 FTEs, net new, through urgent and primary care centres, primary care networks, community health centres and a primary care plan that’s in the third year is, I think, a significant achievement, again, by divisions of family practice, by nurse practitioners, by pharmacists, by clinical councillors and by health authorities and the Ministry of Health and the communities.
That’s what we have to continue to do. That’s the path forward. It’s team-based care. If the 20th century was founded on individual care by family doctors, then the 21st century, I think, is about team-based care.
With respect to a typical panel of patients, what we fund per FTE, the panel is generally in the 1,250 range for one GP. So that’s the general panel that’s done based on what we’re proposing. If the member wants to look at it in terms of FTE physician positions, for example, that’s generally what we look for as a panel of patients. Obviously, they’re not all coming every day or anything. As we know, we all deal with our doctors, in some cases and at some points in our lives, quite a bit and then less in other years. But that’s the typical panel of patients that’s been funded.
R. Merrifield: Does the minister know how many panels of patients would be for a stand-alone GP clinic?
Hon. A. Dix: Different health professionals have different panels. A nurse practitioner, because of the nature of their work, that I described, has a slightly smaller panel per FTE. It can be 850 to 1,000. But the idea, when you build out a team of care where you have, say at a particular clinic, a number of physicians, nurse practitioners, other nurses, you’re able to build out a wider group of people.
Maybe, if you added a nurse to a clinic who had specific expertise in type 1 diabetes — because I mentioned it a minute ago — then that would add to the number of people you could take on, because you’re adding an additional FTE. You can add to that panel. If it’s a doctor plus a nurse practitioner plus a nurse, you might have a panel of around 3,000, for example. If you add that into….
Obviously, most clinics are larger than that these days. They have multiple doctors and others, so they would have wider expectations for the number of patients they’d have. But that’s basically what the expectation is when we build out the primary care network.
That’s the discussion between the Ministry of Health and the local division of family practices. What kind of and what numbers of people can we bring in? What kind of number of people can be attached when we add resources? So if you add three nurses, what would we expect? That’s part of our agreements with divisions of family practice in local communities.
R. Merrifield: I’ll just give some other numbers, because I don’t think the minister maybe understood exactly what I was asking for. I was asking for how many patients a GP outside of one of these clinics would actually be seeing, but I’ll phrase it a different way. Let’s do average per day.
In the FOI requests that we’ve done…. I took out 2020, understanding it was an anomaly year. It was somewhat of an outlier, as many of these clinics were closed or saw fewer or less. It was just all over the map. But there was a lot of consistency before that.
If we look at that — I just pulled some of the busiest times, which would be the summer weeks, because I thought that that would be appropriate — the average visits per day to a GP ranged from 9.6. The absolute highest that we found was 26 on average, and that was actually in Surrey, which would be a higher, urban area. When we pulled GPs in those same areas, they were upwards of 30 a day.
We are seeing less patients through these urgent primary care centres that have longer hours, more FTEs, but are actually…. Although they are still seeing patients, which we celebrate together, they are seeing less patients than a GP would in private practice.
Could the minister describe how this form of episodic care — that is actually less than what the longitudinal care is provided through a GP — is a success?
Hon. A. Dix: I think one key element that we have to talk about is team-based care and quality of care. If you talk to resident doctors in B.C., overwhelmingly they’ll tell you that the old fee-for-service model and the churn of that model is not for them. This is true of the new community of doctors, which is more diverse and certainly equal with respect to men and women.
So what we’re seeing is the quality of care, including the care provided by nurses and others in the team-based model, in the urgent and primary care centres. So urgent and primary care centres take on, by definition, urgent care, difficult cases, and the work of the staff there is excellent, and you can see from the volume of cases that they produce, it’s excellent as well.
I’m not diminishing the work done in existing clinics, but those clinics are also changing and are changing with the new definition and the new approach to primary care medicine by younger doctors. That’s a good thing, I would argue, in terms of their quality of life and their approach.
We’re living in the now. And in the now, these urgent and primary care centres have proven effective, particularly during COVID. In the now, primary care networks that put team-based care into what are currently private practices make sense. In the now, community health centres — most of which stemmed from decades and decades ago and have now started to be added again in the province — make sense. In the now, nurse practitioner–led clinics make sense as a means of attracting young doctors to primary care.
We have a significant number of general practitioners in B.C., compared to the national average, but we also have an aging population and other challenges. So we have to provide and continue to provide better care.
The team-based care and the model of care is changing, and these new developments, urgent and primary care centres and primary care networks, reflect that. But if you’re providing urgent care by definition and you’re providing team-based care by definition, the care can be significantly different than it would be for a regular visit to a family practice doctor.
Of course, there’s no real distinction. General practitioners work at urgent and primary care centres. General practitioners work in the community. They all do a great job, and I’m a huge supporter of the existing network. It’s why we counted on local divisions of family practice, which are local organizations of doctors. It’s why we counted on them to build these reforms with us and to also look at and expand different models of payments.
The current model of payment of a fee-for-service payment has been a cornerstone of public health care virtually since it began in this province, in its current model, and younger doctors have said, overwhelmingly, they’d like to see a different model of payment than that. But we can’t make that change from one day to another. We have to show a flexibility in that, and that’s happened over a period of time in health systems.
It’s one of the things that people have most concern about in the existing system — that people are moved through too quickly. “I have to come with one….” The member will have heard this from people when we talk about primary care. Like, when I go to a primary care doctor, I have two problems. I have type 1 diabetes and whatever problem I want to talk to them about that day. So longitudinal care is important. I’ve had periods…. Since my original doctor, who I had for 35 years here, left practice, I’ve gone significant periods without a primary care doctor in the interim period.
That’s why team-based care and providing people with the appropriate care — whether it’s a pharmacist, a clinical counsellor, whether it’s someone supporting the system — is the right model to go with, why team-based care makes sense. Sometimes you go to see a doctor because they’re the only door open, but there may be a more appropriate person to give you the care needed.
When we announced the primary care in the South Okanagan, one of the things the doctors did there…. They’ve done, I think, an exceptional job in the South Okanagan, in a general sense, in the primary care network. One of the things they added were dietitians because, when we were there doing the announcement and talking about how the network would develop, a GP said, “We do X amount of time on diet when we’re in medical school. A dietitian — that’s what they do.” So they proposed, and they were successful, and they hired dietitians to support that activity — and to support what they’re providing.
I think that makes a lot of sense. I think, in general, progressive reform of primary care is based on team-based care where it’s being initiated. I think it’s a good thing.
R. Merrifield: I hate to be a downer, but I’m going to just use the minister’s words from 2019. This is from the estimates. “Urgent primary care centres are not stand-alone. Their intent is to connect to patient care networks, to PCNs. They’re an important part of that discussion. But a far bigger budget part of that proposal will be primary care networks, it should be said. Urgent primary care centres will play a role in all of those.”
I’m going to go down in that same set of estimates. “It’s about attachment. It’s about addressing and reducing some pressures on emergency rooms. It’s about extra-hours and after-hours health care for people across the province.” But ultimately, it’s about attachment.
I like that the minister has brought up qualitative measures and qualitative health care. Absolutely. Part of what the minister also said in that same set of estimates was this: “Absolutely they’re going to be evaluated on a regular basis.” May 15, from 2019.
To the minister, how is the government actually going to evaluate these on a regular basis? How often have these evaluations taken place? Are these reports publicly available? What are the measured outcomes for the evaluations? Could the minister please share these with me?
Hon. A. Dix: I just can’t believe how good those quotes are. They reflect exactly my intention, which is to provide care when people need it. To provide care when other care facilities aren’t available — urgent and primary care centres have done that. To increase team-based care — urgent and primary care centres, community health centres, primary care networks are doing that. To support and increase primary care in Indigenous communities led by Indigenous communities — our Indigenous care plan is doing that.
We are developing and have put in place…. Some of what we do to do that here is a primary care quality program framework and to regularly report, as primary care networks are built out on the success of those primary care clinics. In other words, evaluation is a key part of the program that we put together.
I think it would have been wrong not to take action immediately on a problem that was facing British Columbia and adding urgent and primary care centres and primary care networks, in waiting for a prefect situation. So we are doing all of those things. We are building out a matrix of quality we’ll be providing. The first one, I think, is September 2021.
Quarterly implementation progress reports that everyone can see publicly, both based on the efforts of local primary care networks and on the system as a whole — I think that’s what needs to be done. This is the most significant reform of primary care in the modern history of British Columbia.
It is not perfect, because the challenge is large, but I think the creation of primary care networks, the involvement of communities, the creation of urgent and primary care centres, the additions of CHCs in many places for the first time in generations, the addition of FTE staff, the commitment of health authorities and the commitment of communities and local divisions of family practice show that we’re on the right track. And we have to, as we always do and as we want people to do, continue to move to improvement.
In addition, we do a number of other things. The population experience survey of primary care is a very valuable approach. We’ll be fielding this survey shortly. It’s a survey of 87 questions that assess the value of these programs for respondents who are involved in these programs, to tell us what they think and their issues. We think it’s important.
Often consultation processes are amongst public health professionals and the ministry and health authorities and organizations and even leadership in communities, but we want to hear from and involve patients as well, and that’s why we’re putting together, and it will be publicly available, the population experience survey of primary care.
So all of those things, and assessment, are what we’re doing. We have to know what we’re doing. What we do at the beginning of any major initiative is not always perfect, so we have to make changes and adapt and have those primary care networks that are starting now learn from the experience of past primary care networks, whether they’re good or bad or what, and we do this in the context of significant challenges in health care.
As well, I would say the health care system needs to deal, and consistently will need to deal, with more and more different and varied problems, including issues that were discussed between the member’s colleague the member for Surrey–White Rock and the Minister of Mental Health and Addictions last week. I won’t repeat that discussion, but they had an extensive discussion on these issues, I believe, as well.
R. Merrifield: As we’re running out of time and I have a couple of other questions just to mop up, I will use this one as my last question on this particular topic, and that is this. To the minister: is the goal still to ensure that British Columbians have access to and are attached to a general physician? And if there is a goal, then what are the targets for this fiscal year?
Hon. A. Dix: The goal is to attach people to family practice doctors — but not just family practice doctors but teams of primary care providers, including nurse practitioners. This has been a debate that has been won amongst general practitioners — support for nurse practitioners and their role in the community. This is a debate that has been won, and the people who now are the leading advocates for the role of nurse practitioner and attachment to nurse practitioners in nurse practitioner–led clinics are GPs who work with nurse practitioners and who are involved in those processes.
The other goal is attachment to general practitioners and nurse practitioners and other health care providers in community, as appropriate, to build out team-based care. That’s why we’re putting together the matrix that we’re putting together to assess how the program is doing and then to report quarterly on that, regularly report on the patient experience, so we can see progress over time. Those measures were not in place when we launched this program, but part of the program was to establish those very measures that allow us to see how we’re doing and what we could do better.
R. Merrifield: I’m going to move on just really, really briefly, because I understand that we have somewhat of a hard stop. I can even just read these into Hansard, and then they can be answered at a later date.
It was actually on PHSA. Last year it came to light that the PHSA was misspending taxpayer dollars, and other issues. The deputy minister reported out on some recommendations. I would love to know, to the minister: have any of these recommendations been implemented so far?
My next questions…. These ones you can get back to me on at another date. I would like to know what the terminated executives, during the previous CEO’s tenure, what their severance packages were. I would also like to know what the full severance package of the former CEO of PHSA was.
Hon. A. Dix: There were, essentially, two. One was an immediate sort of assessment by the deputy minister, Dr. Brown, and the other was provided by Ernst and Young, which was led by a former senior public servant, John Bethel, who works for Ernst and Young and who was also a former member of the Fraser Health Authority board under both the previous government and in my term in office. He’s someone in whom I have great confidence. All of the recommendations of the Ernst and Young report have been implemented by the new CEO — who is David Byres, the former Associate Deputy Minister of Health and the former chief nursing officer of the province.
I think it’s fair to say that Mr. Byres — this will be a decision as to whether he continues to be the CEO — has done an excellent job in taking over the organization and addressing issues in the organization — of course, in consultation with Tim Manning, who’s the PHSA board chair and who is from Kelowna. Tim has led the organization as chair for some time.
In the way that I see health authorities managed, I appoint the chairs and the boards, and they’re accountable. The CEOs are accountable through the leadership council, essentially through the deputy minister. I give direction, should I need to give direction, to the CEOs through the leadership council and through the deputy minister. That’s an appropriate way to manage the system.
I have great confidence in Mr. Manning. It’s clear, given that Mr. Morin left the PHSA, that it wasn’t a successful process for Mr. Morin or for the PHSA. I think that’s pretty clear from the evidence. That’s just a fact. But in my view, Mr. Manning has my absolute confidence. He is a person of distinction and integrity in this province. He is a winner of the Order of B.C — well-deserved.
We have a group of chairs of the health authorities. It’s a pretty outstanding group, to say the least: Dr. Penny Ballem; Leah Hollins, who’s a former Deputy Minister of Health and winner of the Order of Canada; Doug Cochrane — what can you say about Doug Cochrane, a legend in B.C. health care; Colleen Nyce, who’s an outstanding leader of Northern Health as chair; and Jim Sinclair, whose work in the pandemic leading our efforts to improve workplace safety from that position of chair have just been excellent. We’ve just got a great group of chairs.
The member will know that I’m happy to provide the other information to the member. Just with a caveat that some people have personal privacy considerations, generally, this information is broadly available. The specific terms of Mr. Morin’s severance — these had been public for some time: his salary and benefits continue for nine months until November 9, 2021.
That’s the general frame of it. I’ll provide her with all the details of that. Obviously, some of this is private — the process — but none of it is very surprising. I think the total salary, the total severance, which is probably the number the member is looking for, is $243,000.
R. Merrifield: Just to that last question, it was actually also the severance packages for all of the terminated executives under Mr. Morin or in his tenure there. The minister and I have spent the last four days discussing the various aspects of the health care system, and we’ve sort of done a fairly good row, the circumvention of the whole system, obviously not to the level of detail that you all are living, breathing, sleeping and dreaming every day, but certainly trying to bring forward the salient points.
I started this series of estimates really asking for hope, to give those in the system hope that the minister understands issues, that he has created plans forward and, in this second elected mandate, has funds in place to care for British Columbians. Those that are on the front lines go into their professions to take care of people. Right now they are stressed, see outcomes slipping, are beyond frustrated and are moving into a level of despair that I have yet to see in my ten years of being involved with health care. Right now they are asking for tools to deal with the overwhelming task that they’ve been given.
Then there are also the patients. During the course of the last four days, we’ve talked about primary care, and we’ve talked about the decrease in attached patients — how fewer patients are being cared for by the same, if not greater, number of doctors and without attachment. I’ve asked questions about the underserved patients and those that are receiving episodic care through less staffed paramedic stations that are seeing 25 percent of their workforce on some form of mental health leave or WorkSafeBC aspects.
I have also talked about the stress and the pressure that this puts on the emergency rooms, with our emergency rooms seeing a higher percentage of critically ill patients than previous and the highest rate of sick leave for nurses, somewhat, in history, in certain ERs across the province. The minister and I have sat on phone calls together with desperate front-line staff. I have cried with them. We’ve seen the number of surgeries decrease, yet patients are not on a wait-list, which means either they’re very satisfied or we’re about to see an onslaught of some of the highest surgery numbers that we’ve ever seen.
Then we have the number one killer in B.C. — cancer — to which I have signalled an alarm bell for those that are on the front lines: our oncologists, our radiologists, our radiographers and techs. I’m sure the minister is aware that, Canada-wide, 30 to 60 percent of oncologists, specifically, are facing burnout. In recent studies, B.C. fares the worst in these numbers, as the number one cause of death. As a call to their profession to save and cure people, they are desperate. Headlines are reading of doctors burning out: “Two out of three Vancouver physicians faced burnout” and “COVID-19: Overworked B.C. nurses ‘emotionally traumatized’.”
My final question is this. This is your last statement of the estimates. I have no more time with you. I would ask the minister for a statement of hope, something to give the people of B.C. confidence in what this government is doing on a move-forward basis.
Hon. A. Dix: I wanted to start by expressing my appreciation to the opposition Health critic for her work. I consider the role of a Health critic or critics — as the member will know, from when we first discussed this — important work. It’s work that I took very seriously when I was named to the job in 2006. I think that was a period where I raised substantial criticisms of the government but also worked with the government and promoted progress in that task.
I believe that we’re elected for four years, and all of us have a responsibility to make things better. I wanted to appreciate the opposition Health critic, her colleagues who took part in this session, who are passionate about their communities, and others who aren’t…. The member for Columbia River–Revelstoke worked with me on improving immunization in his communities of Golden, Revelstoke and in the Columbia Valley. We worked together on that. He wasn’t here in the estimates, but I worked with him closely.
The member for Peace River North and I did some of the same work together and worked together on many other issues. There’s the member for Kelowna–Lake Country, who has promoted community health centres in his community, and, of course, many members on the government side. We’re building a little place called St. Paul’s, near where the Chair of our committee resides and represents. I think the role of MLA is important, so I want to express my appreciation to the member, the Green Party Health critic, who’s also the leader of the Green Party, for all their ongoing efforts.
There is hope in building a new generation of acute care facilities. We’ve made extraordinary progress. St. Paul’s proposal came forward in 2002. We’re building St. Paul’s, finally — finally — and that’s because of the action we’ve taken. They waited year unto year unto year in Terrace and year unto year unto year in Fort St. James, where they provided outstanding health care in a temporary facility since 1972. We’re building a new one.
Year after year in Dawson Creek, they waited. I remember going to Dawson Creek and announcing that, and people thought: “Well, we’ve elected an NDP government. We have no chance of getting our new hospital.” They got a new hospital because the community deserves it. They’ve put it together, and we need a new hospital in Dawson Creek. The hospital was built in 1959. They need a new hospital for the next 50 years.
Hope in Prince George, hope in Quesnel, hope in Trail and Kamloops and Penticton, hope in Chilliwack and Abbotsford and Surrey and Richmond and New Westminster and in Burnaby and in Vancouver, hope in Cowichan and in communities around B.C. who are going to have hospitals. There are more I haven’t named that provide our health care workers with the hospitals they need for the 21st century. That is hope, but that is action. That is not wish; that is action.
They’ve been looking for a new hospital since 1982 in Fort St. James. It was one of the best days of my life when I went there and announced that project and said: “We’ve found the funding. We’re delivering a business plan.” That’s hope, and you should have seen the response of the community that day. The opposition member for the area was there.
Hope in primary care because we’ve added, not said to people: “Got to wait until we have a perfect model.” But we’ve added urgent and primary care centres that, in a pandemic, gave hope to people and a place for them to go when they needed it. That is hope. And the 600-plus people we’ve added to primary care networks involving health authorities and that work, built from the community, built from the hope and the aspirations of people in the community and guided by them — that is hope.
On surgeries and on diagnostics, we were at the bottom. The member mentioned this with respect to cancer care — tenth in Canada when I became Minister of Health. We have added funding and added supports well beyond what had been provided before and in most areas of major endeavour doubled the level of the previous government.
I’m not saying that that’s enough, but I’m saying that it gives resources and hope to people that we understand the value of public health care and hope on issues of mental health and addictions, where we have difficult days ahead of us, where we have added maybe the most significant amount of care and spending and resources in communities — and still so much more to do. But a profound commitment by the Ministry of Mental Health and Addictions is giving direction and hope to that area as well, as difficult and as tragic as the current situation is.
Hope in seniors care. When 90 percent of care homes were under the care standards that the government of British Columbia itself had set when I became Minister of Health — now, across British Columbia, meeting that standard. Hope. Hope in increasing and remediating care homes that had not been rebuilt for a long time. Hope for communities that as we grow old, the care standards will be 21st century standards and the buildings will be 21st century buildings. Hope, I would say.
And, look, significant challenges as well — challenges that we understand and we know and we see, the challenges of a modern society, the need to encourage new generations of people to enter health care. I talk to health care workers all the time. I talk to patients all the time. I talk to people that use our health care systems all the time. They email me. They call me. They talk to me. It’s particularly true during COVID-19.
I think there’s something profoundly Canadian about public health care. For members of my political party, it’s the fact that, as an institution, it was founded by Tommy Douglas in the country — Tommy Douglas, who people voted the greatest Canadian at one time because of the resonance of health care.
I personally voted for Banting, but that’s a different thing. He was pretty good. That Banting was pretty good. He gave his invention to the world — didn’t monetize it. He stayed, really, a servant of the people of Canada and the people of the world and gave what he created to the world. My word, do Canadians owe a debt.
I think there’s hope that we’ve achieved these things before. When public health care started in this country, average life expectancy was 69. It’s now 80. It’s not all due to public health care.
I want to say, finally, that we have hope as a society because I think the COVID-19 pandemic has brought this as well. It’s reminded us of the central importance of public health care in our lives, that we needed it. The reason — fundamentally, I think — that we’ve done better than, say, the United States is because of public health care. It’s because everybody has it. The person who works and cleans the building is in the same public health program as the CEO of the company, right? When the health of the person who works in the building is linked to the CEO of the company, we know we’re all in the same boat together.
I am proud of public health care, and I think in my own, small way, I’m trying to make it better, and in our own significant way, the government as a whole is trying to make it better.
I’m going to say one final thing. We’ve got a big budget. Someone is going to hand me a motion in a second, and as Smokey Robinson would say, I’ll second that motion.
But I would say this. One of the things that we also have to remember is that people with type 1 diabetes who are on income assistance have outcomes dramatically worse than I will. Addressing inequality and social determinants of health are fundamental to providing better care. It isn’t just about health care. It isn’t just about repairing broken legs and dealing with cataracts and providing important addiction services. It’s about addressing fundamental inequality, which is a source, in our society, of negative outcomes. I think the actions that we’ve taken on income assistance and disability are important to that.
We’ve lived this time, and we’re living this time, of two public health emergencies, both profoundly important, and we have work to do on both of them still to come. But the work we’ve done together — all of us, all members of the Legislature, all the health authorities, all the staff of the Ministry of Health, all of the health care practitioners, the professionals, the health care workers and the people of B.C. together — have been part of this. They deserve the credit, and they should get the credit.
I think there are a lot of reasons to hope and huge challenges. Two public health emergencies are still with us, and both of them are ahead of us with significant challenges — not just behind us but, particularly with respect to the overdose epidemic, ahead of us. I think there is significant hope and there is a massive challenge ahead of us.
I want to say, just finally, that I have to express my appreciation to everybody working in health care at every level — the care aides, who have been with people in seniors care, and everyone else. I want to express my appreciation, on behalf of all the people who work in the Ministry of Health, to the Deputy Minister of Health. We say he is not an MD, but he is Dr. Stephen Brown.
I think that as a public servant, he reflects what makes the public service great. His commitment has been seven days a week for too long, I think, in the last year. It’s usually six and three-quarter days a week, so that’s been an increase, I would say. There’s a measure of that. I think Stephen’s commitment to people — the way he treats people, the way he leads our ministry and leads our health care system — is a model for what we should all do.
I wanted to thank him, and through him, all the people that work with us in the Ministry of Health, who both prepared these estimates but, every day, help people with their health in British Columbia.
With that, I’ll leave it to you, hon. Chair, to call the motion.
The Chair: Thank you, Minister, and thank you, all members.
Vote 32: ministry operations, $23,725,698,000 — approved.
Hon. A. Dix: I move that the committee rise and report resolution and completion and ask leave to sit again.
Motion approved.
The committee rose at 2:41 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF
TRANSPORTATION
AND INFRASTRUCTURE
(continued)
The House in Committee of Supply (Section C); D. Coulter in the chair.
The committee met at 1:08 p.m.
On Vote 43: ministry operations, $948,948,000 (continued).
B. Stewart: I just wanted to follow up on the minister’s last comment. I hate to disagree with the minister in terms of his contention that the road barriers and safety concerns have been taken care of. This particular piece of road…. I wrote to the minister on March 6, after discussing this personally with him and have yet to receive a reply about this. I sent the link. I’m sure he’s familiar with the many projects around the province, but I think, more importantly, we’re busy just trying to figure out when the people on West Side Road are going to see some action.
I raised the question for the minister, which I’ve done previously. The particular issue is that there are many families that live out West Side Road. Part of the reason is because of affordability out at Killiney Beach, Westshore and many of the other areas in between. With that comes about 250 school children that travel by bus going into West Kelowna on a daily basis during the school year.
This lidar survey that I had mentioned to the minister proves that the road, in some cases, does not allow for two vehicles of a regular size, let alone school buses — which would be just under 8 feet 4 inches, the maximum width on the highways — to pass one another on some of the terrain. So I mentioned that.
The other thing is…. The answer we just received, that the road is being maintained…. This road is falling into Okanagan Lake. It was only a week ago that a car went down a 50-metre embankment there. Although nobody was hurt, there are lots of lives that have been lost. What is it going to take to get a timeline to repair the worst part? What has been done is the easy parts.
Minister, what is the timeline?
Hon. R. Fleming: Just to respond to the member again on this question around Westside Road. I think I acknowledged that there are narrow parts of the road. There’s no question about it. The $40 million investment is significant over the last six or seven years. It continued most recently last year. All of that work has been done on what had been identified as the worst parts of the road, not the easiest.
What I will say to the member, while the road does not stand out as one in British Columbia that has high rates of collisions — we have five years of data on Westside, and it doesn’t stand out in comparison to other roads like it the province — it still is worthy of a safety review. We’re coming out of COVID. We expect congestion. Traffic levels will return to pre-pandemic levels.
What I can commit to the member is that we will conduct a safety review that will allow staff to glean any additional information that may inform future potential work.
B. Stewart: Minister, your website online actually identifies the section of road that I wrote to you about back in March as being incomplete. The question I have…. I’m happy that you’ll have staff review it. The lidar work stands out, and I’m sure that that isn’t out of date if the work hasn’t been updated.
I have travelled the road. I travel it many, many times during the year because it’s one of the areas in my riding. I can assure you that the people out there — the residents that I met with at Wilson’s Landing; La Casa, where we had a community meeting with over 500 people and the Ministry of Transportation about these safety improvements; North Westside; Killiney Beach….
The bottom line is…. What I would ask is, as far as this safety review, can you agree that the staff would agree to meet with me, and we would, at least, address and come to conclusion on the outstanding safety improvements on Westside Road between West Kelowna and Vernon?
Hon. R. Fleming: Yes. Staff will be happy to sit down with the member, hear his ideas, hear his concerns, give some input into the safety review that we intend to do, going forward, on the road.
In reference to the incomplete — on the website that he referred to. That’s in reference to Pine Point to Four Mile. The design is complete. There has been significant pre-planning work done. That’s why it is listed in that manner on the website.
B. Stewart: Thanks very much, Minister. I appreciate and look forward to some sort of early opportunity to sit down with the staff. I’m sure that they know the project well.
Last item. I want to just maybe ask you for a response or an update. Staff have been briefing the Westbank First Nation and the city of West Kelowna on the interchanges that were planned for Boucherie Road. The design work…. My understanding is that at the last estimates, the minister informed us that there was consultation with the Westbank First Nation. I know that the city of Kelowna’s Okanagan corridor traffic management study had to be completed, as well as their OCP. I believe that those are complete.
What I’d like to just ask the minister is if he could provide a written timeline on when the Ministry of Transportation expects to complete the 2005 Okanagan Lake Bridge agreement to upgrade Boucherie Road as a grade-separated interchange, and the road improvements at Westlake–Hudson Road and Highway 97. I’d just ask if he could at least commit to getting a written timeline, as that’s coming to closure, on when we expect to see those improvements.
Hon. R. Fleming: Currently, the ministry is doing early design work. That will be completed by the end of this year. All the decisions around an interchange project will flow from that design work. It will certainly require us to look at property acquisitions, utility relocations and the impacts it will have on the Westbank First Nation. They’ve been involved in the discussion during the design phase, and that’s where it is at, at this point in time.
B. Stewart: I don’t have any more questions, other than the comment back to the minister that that’s the same answer that the previous minister gave. I know that the design work is very close to being complete, so I do look forward to getting a timeline in terms of how that will likely unfold with your staff. So thanks very much, Minister. Appreciate your time.
G. Kyllo: I certainly appreciate the time that the minister shared with me yesterday in answering a number of questions. At the end of our conversation yesterday, the minister had shared with me that BCIC actually falls under the Ministry of Finance, so I certainly look forward to the opportunity of following up with some further questions, specifically with reference to BCIC.
However, when it comes to the costs of horizontal construction projects in our province, I know that both the Premier and the previous Minister of Transportation are on record as indicating that their initial cost estimate toward the costs of CBA, the CBA model, was in the neighbourhood of 4 to 7 percent.
I’m just wondering if the minister can confirm if he has a more accurate cost estimate now that CBAs have been underway in the province for a few years. It’s certainly my understanding that they do have a cost impact on some of these very important highway construction projects in B.C.
Hon. R. Fleming: The three projects that are under CBAs in our ministry include Pattullo, Broadway subway and Kicking Horse, TCH. They are under CBAs, involve BCIB. I think the cost of the CBA agreement for those projects in terms of an overall lift of the project budget cost is tracking at 4 to 7 percent.
G. Kyllo: I appreciate that confirmation from the minister. Four to 7 percent is a fairly wide range. I’m just wondering, with respect to the Illecillewaet project…. That was the first project that was let under a CBA agreement. The minister had shared with us yesterday that this project is now close to 60 percent complete.
I’m just wondering if the minister might be able to provide a more accurate number, seeing that that project is likely fully tendered, nearing completion. Is he able to provide a bit of an update for us with respect to the specific percentage and dollar cost associated with CBAs relative to the Illecillewaet four-laning project east of Revelstoke?
Hon. R. Fleming: The member is looking for an actual final number on Illecillewaet. That project is scheduled to be completed by the end of this year. It’s just a bit too soon to be able to answer the member’s question on that. I can confirm with him, though, that…. He made a comment that 4 to 7 percent is quite a wide range.
Just for the record, Broadway subway line, it’s less than 4 percent. The Pattullo project, it’s at 4 percent. It’s at the lower end of the range or I guess there should be a new range because in the case of Broadway, it’s below the range.
G. Kyllo: I appreciate the answer from the minister. Has the Ministry of Transportation looked at establishing budgets for future projects or any other projects that are under consideration right now? Just wondering if the minister might be able to provide for us a bit of an explanation on how that process unfolds.
Certainly, I appreciate when budgets are created within the Ministry of Transportation for projects, there is a lot of detailed work and analysis that goes into that. Is there just a single-line adder that is added to the bottom of the initial cost estimate for the projects? How does the ministry establish a budget? Do they use the 4 percent? Do they use the 7 percent? I certainly appreciate that in addition to that, there will be a contingency number. But just the mechanics….
I just wondered if the Minister might just share with us or maybe walk us through the process of how the actual budget or cost estimate, the additional cost associated with the CBA, is actually developed and how that actually flows through the initial cost estimate for a project before a budget is actually released when the project is announced.
Hon. R. Fleming: Okay. The question the member asked is really about how you get into that range determination, which is building off his previous question, if I understand it correctly.
Of course, building up the project costs is the work of a quantity surveyor. They would do an assessment of what percentage of a project cost is ascribed to labour, materials and other input costs to complete the project. Therefore, the range on a project around CBA is sometimes based on how labour-intensive a project is. Some are more than others.
Other things that would affect that would be the going wage rates in collective agreements that are built into the budgeting. There’d be some things like the superior apprenticeship ratios on a CBA site. Then other project sites would also be a part of that and the BCIB costs that can be apportioned for administration on the project.
G. Kyllo: Thank you to the minister for that answer. The quantity surveyor looks at providing that cost estimate for a project.
I think the minister had indicated that the large majority of CBA costs would be associated with the provision of labour. Can the minister share with us what the percentage is of the CBA costs, or the incremental increased costs, associated with the labour portion? I believe what I heard from the minister is…. I stand to be corrected, if otherwise. I would estimate that the provision of materials that are coming from off-site that there would be no elevated or increased costs associated with the CBA with respect to the material portion.
If the minister could share with us…. What is the percentage of the incremental additional cost that’s associated with the labour provision relative to the CBA? So if it’s 4 to 7 percent of the gross aggregate cost of a project, just looking for what that percentage would be on the labour portion.
Hon. R. Fleming: We don’t break it down in terms of components of the costs. It’s 4 to 7 percent on the overall project costs. So I don’t have any further level of detail for the member on that.
What maybe the member would also care to consider or to look at…. I’m sure he’s aware of this to a certain degree. We also don’t assign a post-project value to some of the enduring benefits of the CBAs.
When it comes to the Trans-Canada Highway project that goes through the member’s constituency, I think he would assign a very high value to the fact that 28 percent of the workforce on that project are Indigenous. That is dramatically in excess of what we see typically on major construction projects. The number of women that are engaged in heavy construction project work on CBA sites is dramatically higher than typical highway project construction sites.
The ratio and percentage of those engaged in apprenticeship programs on CBA agreements — that has a higher cost to it, of course — is dramatically higher than other projects. These things all pay a significant dividend to B.C. as we develop our workforce, make it more diverse and attract and retain new entrants into trades, including young people, by giving them these opportunities.
And we addressed the lost costs that we used to have with a very high trades non-completion rate that our government has been working to turn around over the last four years. I think B.C. had one of the highest, if not the highest, trades non-completion rates in the country around 2016-2017.
There are a number of other values that accumulate to all of us as British Columbians that build out, develop and attract historically underrepresented people in viable, good, middle-class construction jobs that are part of the CBAs.
Again, it’s 4 to 7 percent. I haven’t got a number. If I were to get a number that was more specific, that would have to be based on looking at a project and its labour component costs.
G. Kyllo: I certainly appreciate the information provided from the minister, and I can certainly appreciate that no two projects are the same. A project that has a higher percentage of labour component could likely be closer to the 7 percent range, and a project that has a lower labour rate would be closer to the 4 percent range.
I believe he was referencing the Illecillewaet project specifically when he referenced a 28 percent Indigenous hire on that project. That certainly is admirable.
I know that the ministry previously was tracking both the hiring of women and Indigenous peoples on the various highway projects. I’m wondering if the minister can share with us what the percentage of Indigenous hires were on the Chase to Hoffman’s Bluff project. That was a project that was let prior to the new CBA program. I’m wondering if the minister might be able to share with us what the Indigenous hires were on the Chase to Hoffman’s Bluff highway construction project.
Hon. R. Fleming: I do not have numbers for that, because, previously, hiring and workforce composition numbers like that were not tracked.
G. Kyllo: As a follow-up to the minister, it is certainly my strong understanding that both the percentage of women and Indigenous hires on Ministry of Transportation and Infrastructure projects, like Chase to Hoffman’s Bluff, that those numbers actually were recorded and reported. I recall seeing a document a number of years ago, and the then former Minister of Transportation, the member for Kamloops–South Thompson, had indicated a significant amount of pride with respect to the hiring percentages of Indigenous individuals on that particular project.
If I may, with all due respect, just maybe ask one more time to the minister if he could maybe just double-check with staff just to make sure that, indeed, those numbers are not available.
Hon. R. Fleming: The member has asked me to double-check. I’ve asked staff. They do not believe that any of that was tracked. But the member asked if we could go back and double-check, so I’ll ask staff to do that, but it will be beyond this estimates process. If any of those files exist, we’ll have a look for them.
G. Kyllo: It just seems interesting. The whole intention of the CBA regime was largely to increase the percentage of women and Indigenous hires as well as provide additional jobs training opportunities. Those are lofty goals, and I certainly am supportive of all of those.
Obviously, there must’ve been an awareness of a concern or a problem. It would just seem reasonable that the minister or government would’ve had a look at what the baseline was.
What was the percentage of women and Indigenous hires on the Trans-Canada Highway, No. 1, construction projects to establish that baseline and then have a look at what additional measures could be undertaken. The government certainly has chosen the CBA model in order to achieve those goals.
If I could just ask the minister: what was the baseline that was established? I think it would also be important for taxpayers and for the general public to have an understanding of: this is where we were, these were the hiring percentages prior to CBAs, and now we have…. We accept the cost increase of these projects by 4 percent to 7 percent attributable to the CBA model. What is the incremental increase or improvement in the hiring ratios of women and Indigenous persons, as well as the skills training, apprenticeship, programs that are on these projects?
So if the minister could just provide a bit of clarity on what the baseline was for highway construction projects in B.C. prior to the implementation of the CBA model.
Hon. R. Fleming: It would be wrong to say that there isn’t baseline information, but it might be accurate to say that it’s not complete. I think he’ll probably not be surprised or unfamiliar with industry-wide on heavy construction, horizontal construction activity — that typically, there is less than 5 percent women on a job site, in terms of workforce composition. Indigenous representation is typically around 5 percent overall in the industry.
This is something that the industry has long recognized is a problem and not reflective of where they would like to be in terms of industry’s interest in recruiting workers, delivering significant benefit and involving Indigenous Peoples in good, skilled, stable, sustainable middle-class job opportunities that they offer.
What I might additionally do, as well…. As I mentioned yesterday to the member, BCIB is due to publish its annual report, on or about July, August of this year, following the public accounts of the province. That annual report may give him some additional information and have some discussion — I don’t know for sure — about baseline comparison, about some of the equity benefits and historically underrepresented workers that are being employed on CBA projects versus what the baseline or industry average tends to be.
G. Kyllo: To the minister, I certainly appreciate that additional information.
To my colleague the member for Vancouver-Langara, I want to just give him my thanks for the opportunity to ask a number of questions in the estimates process today.
I’ve now concluded my questions for today.
T. Shypitka: Thank you to the minister and his staff for the time and, also, my colleague from Vancouver-Langara for sneaking me in last minute.
Just a couple of quick questions. One is in regard to the passing lanes in Jaffray. Jaffray is just a small community, less than 1,000 people, just east of Cranbrook on Highway 3/93. This small community has a business frontage that runs parallel with Highway 3, which is a straightaway just as you go through Jaffray on Highway 3. It has incorporated a passing lane there. So when you come off Highway 3, if you’re going westbound from Alberta, you will step down from about 100 kilometres to 80 kilometres through Jaffray, but there is a passing lane there.
I’ve advocated for years on removing that passing lane and making it a double solid line, as there’s a lot of traffic, especially in the summertime. Over 5,500 vehicles a day go through there, getting to recreation spots and such, and a lot of traffic is turning in and turning off of Highway 3 into this business frontage. There’s a gas station, there’s a hardware store, there’s a church, and a couple of other small amenities are located there.
The response I’ve gotten from the regional transportation office, which, mind you, is awesome…. Katie Ward and Hilary Barnett are excellent staffers that you have here in the Cranbrook area, so please give them our best. They’re doing a fantastic job. But what I’ve heard from them is that, obviously, passing opportunities have to be addressed. If not, the motorist will take his own opportunity into account, and that’s when accidents happen. So I understand all that.
However, just recently passing lanes, by the grace of government, put in…. I think it was a $9 million project just went of Jaffray, a 2½-kilometre-long stretch of passing lane, which is very well appreciated here in Kootenay East. So we thank you for that.
I expressed my concerns that once that passing lane is incorporated and built, there wouldn’t be the need for opportunity at the passing lanes in Jaffray, so therefore, we could eliminate those passing lanes and put those into double solid lines. At that time, Ron Sharpe was the regional representative from MOTI, and he agreed with that. He says that we’ll take a look at that when that time comes.
Well, that time has come. Those passing lanes were put in a couple of weeks ago on Friday. Now, tragically, two weeks ago last Monday, we lost a resident’s life there on that same stretch of passing lane. This has shaken up our community quite a bit, as you can understand. You know, nobody wants to think of what we could have done in the past. It’s what we can do going forward to remove this dangerous threat that’s actually in Jaffray right now.
I know there’s acceptance with the regional government, but I just wanted to bring it to the minister’s attention that this is a huge priority. I know the minister has got a lot of priorities on his desk right now. But it would mean a lot for us here in the Kootenays to remove that passing lane in Jaffray so that we can utilize the awesome opportunity that’s just been provided to us west of Jaffray with the new passing lane.
A question to the minister. Can he make that a priority, and can he really dive into this, talk to the regional staff and get that passing lane removed just inside of Jaffray?
Hon. R. Fleming: Thank you to the member for bringing this up. This is obviously very important and is made more important by the unfortunate tragic loss of a community member on June 7. We’re awaiting, as the Ministry of Transportation, an RCMP report on what may have been contributing factors to the loss of a community member in the MLA’s constituency.
His question is around that infrastructure being completed and making redundant the passing lanes. I have just confirmed with staff and can share with him that they are going to do an engineering report exactly determining whether it’s needed at all anymore. They will complete that by the end of this year, and they are happy to work with the MLA on that and involve him in various steps of that review.
He has strong contacts. I’m very pleased to hear his compliments for our awesome district office staff. I would encourage him to keep working with them. They will be overseeing whether the member’s suggestion today is the right course of action and whether that can be done. It sounds like it is a good idea. We’ll get an engineering perspective on that and see if that can be accomplished in short order.
T. Shypitka: Thank you to the minister for your attention to this. As you said, it is very, very important.
I believe an engineering survey or study was done already a couple of years ago. I think it was done by request to find out the traffic volumes that were there. If anything, the traffic volumes have increased.
I get it. There’s a process that we have to go through. As I’ve indicated, with this tragic event, sometimes time is an enemy to people in that region, who fear for their lives, essentially. The rationale that I was given years ago was that it was all about opportunity for passing. That opportunity has been eliminated with the $9 million, 2.5 kilometre project just outside of Jaffray, just to the east.
I appreciate the efforts, for sure, absolutely, by the minister in looking into this. It can’t happen soon enough, in our opinion, here in Kootenay East. I appreciate it. I look forward to an expedited approach to solving this issue. I will work with the regional office, as our office has. They’ve been excellent. So I look forward to that.
The second one is just a quick question on transportation. We’ve lost Greyhound, obviously, to our region. Kootenay East is in the southeast corner of the province. We’re very heavily tied to Alberta. A lot of our access to health care has been eliminated for causes unknown.
Now we’re being rerouted to Kelowna, Vancouver and Victoria, which obviously entails a lot longer distances in travel. Our remote communities have just become that much more remote, and our dependability on access a lot farther away has increased.
There has been a good model with B.C. Bus North. It was a partnership, I believe, between the federal government and the provincial government and a private entity through — I believe it was — the Western Economic Diversification strategy, which was a cost-sharing agreement with a private company to put in a public bus service.
Is there any appetite by government to instil or to bring some service — maybe a B.C. bus south to the Kootenays — to take care of those folks that don’t have transportation but need it desperately to get to health care emergencies and things like that?
Hon. R. Fleming: I appreciate the member’s question. When Greyhound pulled out of B.C., of course we really worked hard to see whether we could break up some of the routes in every region of the province and put it out to the market and see whether there were smaller bus companies, transportation companies, that would want to get into that service. B.C. was very successful in that regard.
I think that started in 2018, if I’m not mistaken. I think we have either 19 or 26. There’s one number that’s stuck in my head. That’s the number of bus companies now that are doing intercity bus service in different parts of the province.
I realize that Kootenay East may be one of the ones that is, can I say, lightly served in that regard. I am aware that the health authority, Interior Health Connections, is a service for his constituents that predates the pandemic and some of the decisions, maybe, from the Alberta government about medical services for his constituents. I’m not familiar with that issue, so I don’t want to segue too far into that, but that continues.
If I’m hearing the member correctly, he’s basically asking whether the success of B.C. Bus North…. It has not had a long track record, and it’s been interrupted by the pandemic, but it is a good model, and we were really happy to announce just last week that it has sustainable funding until 2025. That’s a really long period of time, and we’re going to have the Northern Development Trust oversee it and see whether we can have some integration with health authority services and B.C. Transit services in those communities and come up with a really strong model, going forward. They have quite a bit of runway there to improve, to 2025.
If I’m hearing the member correctly, he’d like to have a B.C. bus south, potentially. I would say that what we’re learning, what we’re going to learn, on the B.C. Bus North side is probably going to be instructive and helpful to what he’s tentatively proposing here today.
A bit of a difference, I suppose, on B.C. Bus North, with the northwest of the province. The urgency there goes back to the Oppal report on murdered and missing Indigenous women, and the Highway of Tears, of course. Therefore, the model that’s different from the rest of the communities served by commercial or private sector intercity bus companies is one that was not deemed economical, and there was no market interest in serving that corridor. That’s why we’ve worked really, really hard and made B.C. Bus North, sustaining it, a key priority.
But I appreciate the suggestions and the ideas the member has advanced today and just what it’s like on the ground. I think intercity bus services around the country are going to continue to be deeply affected.
I’m not aware of another province that tried to help intercity bus companies as much as we did during the pandemic. We advanced many millions of dollars out the door to help them, because they had a 95 percent passenger drop, and we want them to survive. We actually want to draw them together so that they may be operated by different companies but you can plot a course of travel around the province. It would be nice to have, out of this pandemic, some innovation where we take our intercity bus providers and we make them appear as a more holistic service, even if they have their own fare and business models within that.
M. Lee: I just wanted to further the conversation here. I appreciate the minister’s response to the member for Kootenay East. I’ve talked to others in his region and other parts of the Kootenays and up through the Boundary-Similkameen area as well, Grand Forks, about just what the member for Kootenay East talked about.
I think there are a lot of learnings from the pandemic. I know, with the B.C. Motor Coach Coalition, that the work that was done by this government and by this minister to address the supports necessary for ground transportation networks around the province was certainly appreciated and something that the minister and I had a bunch of exchanges about. Certainly, I saw that as a good thing.
Hopefully, the models and the learnings, as the minister suggests, in terms of when they look at…. For example, the Island connector up-Island and looking at the northern part of Vancouver Island is another example of where many Indigenous communities rely very much on this ground transportation network and having that sustainable, going forward. There are lots of learnings there.
Certainly we recognize the importance of B.C. Bus North for Highway 16. I will double back, if I have time, at the end of this estimates to talk about BC Bus North, because that is a next step in terms of NDIT and their involvement.
I just wanted to acknowledge and think that this is actually an area of great consideration. I would welcome further discussions that the members from Kootenay East and Columbia River-Revelstoke and my other colleagues and I can have with the minister in terms of developing a stronger ground transportation network in this province. I just wanted to respond to the minister about that and say that that is something we will deal with in the months to come.
Hon. R. Fleming: Apologies to the member for Abbotsford South. I know he’s been waiting. I just want to respond to the member about that. I need to put in a correction on the record. There are 31 intercity bus operators in the province.
I also owe it to the member for Kootenay East as well that — my mistake. The Northern Development Initiative Trust, which has been given money from our restart package that will sustain BC Bus North to 2025, also has responsibility to evaluate intercity bus service in every region of the province. Both to the critic and to the member, that may be of interest to them because they are going to look at the wholistic, provincewide network of intercity bus and make some recommendations on what a sustainable model would look like in the future for the province.
B. Banman: I have a couple of requests, actually. Time is limited, so I’m going to make this as quick as I can. Pardon me for not doing the normal pleasantries.
I would request from the minister a detailed construction timeline and completion date in writing for the following: the Vye Road overpass; the Sumas Way to the border — widening; and the No. 1 widening to 264. In that 264, I would appreciate any preliminary drawings that the minister may have for where the widening is going to end.
The one question that I have, which is really a yes or no, is: is it going to be approximately half a kilometre on the Vancouver side of 264 where the widening would stop? I would also request a construction timeline and completion date, if one exists, for the Mount Lehman overpass.
Other than the question of yes or no on 264, I would respectfully remind the minister that Abbotsford is now the fifth-largest city in British Columbia, and the largest by land base, actually. I have a couple of questions with regard to the timeline of widening the No. 1 freeway to Whatcom Road and if there are any plans to widen that toward Chilliwack as well.
Hon. R. Fleming: I’ll update the member on a few things now that might be useful for him to take away today, and we’ve got the transcript of his questions that we can deliver in writing to him in the future. The Vye Road project is being delivered by the city of Abbotsford. We contribute to that. It’s scheduled to be completed by the end of 2022.
In terms of the widening and interchange projects between 216 and 264 on Highway 1, he’ll probably notice the tree clearing has been done. A tender just closed on preload for construction. There will be signs of significant site activity shortly.
He’s correct. That stretch of widening currently ends before 264. However, the consultation we’re doing on 264 to Whatcom with the public engagement right now is covering that issue. The public engagement closes July 6. I’m happy to hear that we’ve currently had 2,000 participants so far.
Even with COVID going on and everything like that, the public engagement has been very successful and well-subscribed, and there’s still just under a month of opportunity for his constituents to participate in that. The rest I will endeavour to provide to him in writing.
B. Banman: I’ve got two other things. The first one is pretty simple. Again, as I mentioned, we’re the fifth-largest city and have an international airport.
I’m thrilled that the SkyTrain is going to Langley. Can the minister tell me whether or not there are any plans or discussions to bring that SkyTrain to the airport in Abbotsford and into the Abbotsford city centre as the next step?
Hon. R. Fleming: Certainly I’ve heard the idea. What I would say to the member is that where this may come up is at the TransLink Mayors Council. They’ve just started to meet. We gave them an additional year, because of the COVID pandemic, to submit their ten-year transportation investment priority plan.
He’ll recall that in the last iteration, Surrey-Langley SkyTrain became the No. 1 project. Initially it was an LRT, but it evolved into a Surrey-Langley SkyTrain. Then, of course, the province reached a funding agreement on the Broadway subway line. We’re currently in construction there. They’re renewing that now.
Certainly, the Minister of State for Infrastructure and the Minister of Environment and responsible for Climate Change, who is also the Minister Responsible for TransLink…. We all have a shared mandate commitment around strengthening the public transit connections between B.C. Transit and TransLink.
The Fraser Valley having that SkyTrain out to Langley is going to be critically important. You’ll have a major rail-based physical link to the other region. It gives us lots of opportunity to build enhanced public transit options off of.
I would also mention that we have a really high level of engagement, through our ministry, with the Fraser Valley regional district on what they would like to see, what they’re envisioning around public transit, around what we would like to see as a government in terms of the things that would come from public transit investment that would be led by the province. So housing affordability, making sure there’s child care, family-friendly complete communities, compact communities that can grow in terms of their density but be livable and affordable for families.
That’s a conversation that Fraser Valley is very interested in and that we’re working collaboratively with them on as well. It really is anchored on the kinds of infrastructure investments that he’s speaking of.
B. Banman: I would respectfully remind the minister that one of the more touchy subjects out there is that my riding actually includes the boundary of the difference between TransLink and the Fraser Valley. There’s a bit of a disconnect at times. So it’s going to take some initiative on this government to be able to get that SkyTrain through to the Abbotsford International Airport. It may take some footballing.
That aside, the next question I have has to do with the park-and-ride on Lonzo Road, which is along the freeway. What I would like in writing, please, is who it is that’s in charge of maintaining that, what subcontractor or where the contract is done and what the name of the contact person is that we can contact.
Can this minister tell me: what is the longest length that any vehicle can be parked at the park-and-ride at any time? Is this minister aware that that park-and-ride has become, basically, a campground? What is this ministry doing to ensure that that park-and-ride, which is needed so people can share parking and/or park a heavy commercial vehicle…? He knows there are incredibly limited spaces. There is one whole portion of that that has, basically, had campers parked there now for weeks and weeks and weeks.
In writing, can I have who’s in charge of that and who we can call to deal with that? What does this minister have planned to ensure that this park-and-ride is available for those that are actually needing to park their vehicles and car-pool?
M. Lee: Just in the interests of time, could I suggest that, as the member has requested, we do that last question in writing? Okay. Thank you.
I just wanted to move on, then, in the remaining time that we have. If I could just come back to the Broadway subway. When I raised this with the minister responsible for TransLink in estimates, the minister suggested that I review some of the same questions with the minister responsible for transportation and infrastructure.
My first question was…. In the Broadway subway project, in the letting of the project for $2.827 billion, of the $496 million cost per kilometre…. In this decision-making process, were there different considerations brought to bear in terms of the award of this project versus the Pattullo Bridge or any other similar infrastructure project in this province? Was there any greater complexity or other different considerations that led to how this contract was awarded?
[M. Dykeman in the chair.]
Hon. R. Fleming: Thank you to the member for the question. It obviously is a complex project. It’s almost entirely underground. The vast majority of it is underground. A lot of mobilization costs when you’re in a very busy…. In this case, I think it’s one of the busiest urban corridors in North America.
It’s six stations, as well, which is quite a lot in terms of how close in proximity those underground stations are to one another compared to, say, the Canada Line, which is much longer distances between stations.
Cost comparison in terms of Broadway and where it’s at…. It’s best, of course, to compare it to things that have recently gone to the market, like Broadway has recently gone to the market. The Ontario line was just announced — it’s a subway; it’s underground — at $700 million per kilometre, so significantly higher than the Broadway subway. Yonge North subway as well — underground — has recently gone to market. The estimated cost is $600 million per kilometre, so again, quite a bit higher than the Broadway subway line.
In the United States — I can’t even believe these numbers — I’m assured that the Long Island Rail Road, which is tunnelled, underground and comparable rail technology to SkyTrain, is $2.7 billion Canadian per kilometre. New York is also building the 2nd Avenue subway at $1.9 billion Canadian per kilometre.
So yes, these projects are expensive, but I’m sure the member has had an opportunity to review some of the exceptional benefits when you build a subway expansion. This is B.C.’s No. 2 jobs corridor in terms of density of jobs — fast-growing job corridor. It’s connected to a maturing line that is increasing the coverage around the city. So its benefits — I think the mayor said it well — far outweigh just immediate benefits to Vancouver. It’s going to benefit people throughout the region.
The Broadway bus line right now literally has no more growth potential. Those Broadway express buses, trolley-overhead buses, are extremely popular. Before the pandemic, they had about 110,000 boardings per day. You literally can’t grow them anymore. The unlocking of ridership growth that this investment provides…. You could triple it. You could go in excess of 330,000 boardings per day on the Broadway subway expansion.
M. Lee: Well, thank you to the minister for that response. It does actually invite a follow-on question that I would provide as the local MLA for whom the Canada Line runs right through the riding. In the minister’s response, as a subtext to the Broadway subway…. I’ll just get this quick question in. It reminds me of something that I’ve been focused on in my four years as the MLA for Vancouver-Langara.
The Canada Line, of course, was built with opportunities, let’s say, for further stations to be built at 33rd and 57th on Cambie. I understand — in talking to both TransLink, in the briefings that have been arranged through the minister’s office, as well as city of Vancouver planning — that the business case has yet to be formed regarding what is now 15,000 residents that are going to be added to the Cambie corridor up and down the Canada Line, including the Oakridge development of a second town centre and, in terms of the other developments, including the George Pearson lands at 57th and Cambie as well.
From the ministry’s perspective, what are the next steps — given the density growth that is happening on the Cambie corridor, which is, all told, at least 15,000 residents to be added — as to further considerations and ways in which the residents in my riding of Vancouver-Langara could consider seeing additional stations built at 33rd and 57th at Cambie?
Hon. R. Fleming: I was hoping to get an answer about why those stations were removed originally in ’09-10, but we can come back to that another time — at 33rd and 57th.
TransLink and the city of Vancouver do not actively have any studies that we’re aware of on bringing those stations back. It might be an opportunity for the Metro Mayors Council, as they’re deciding on a new ten-year regional transportation priorities strategy and vision, for that to be part of their new list of priorities.
There was some knowledge of a letter from TransLink looking at the 33rd and 57th station in 2016. That’s sort of where the trail breaks off. They were, at that time, estimated to cost about $100 million each to construct. That’s 2016 dollars. That would be significantly higher today. It’s estimated that that would have been triple the cost of what it would have cost if they’d built them originally and not taken them out of the Canada Line project that was completed in ’09-10.
M. Lee: I will say that it’s important to learn from past experience, of course, and the significant dollars that go into the infrastructure, both on the Canada Line and the Broadway subway to come.
My understanding is that those stations were future placeholders, let’s say, to be built in the future if the business case and the density would justify that, and that’s still where we’re sitting, even though the density continues to increase on the Cambie corridor. I would just say that, when we look at the Broadway subway line, we know that, as I understand, two of the six stations have some density above the stations. One of them is a six-storey or five-storey building, but even with that, it’s not much density. The other four stations don’t have any real density attached, at least to the station.
I appreciate that there was a mandate to have greater land use connectivity in terms of how we look at our regions. Is there a missed opportunity here with the Broadway subway, in ensuring that there isn’t greater housing density arranged with the province and the municipality and the federal government, in terms of the dollars that are being spent on this very expensive line?
Hon. R. Fleming: It’s a great question worthy of a long answer, and there’s more to say than I’ll be able to say here, but perhaps there’s a follow-up.
The interesting thing about this project is that, I mean, it has to happen. As the member knows, the Broadway express bus lines are jammed. It’s a nice problem to have, for those of us who love public transit, but it is jammed and, therefore, this project is going to be incredibly successful. We know that. It’s in the right place.
Interestingly, and our government wanted to get going on this immediately, we concluded comprehensive funding agreements with the feds on it and the city and TransLink. The city, of course, controls the land use.
For a long, long time, there’s been a view that the densities on Broadway, period, as a corridor are far too low. It has not had significant change, in terms of what is allowable and buildable, but they’re in the midst of a significant Broadway corridor visioning process that will lead to new allowances around land use, density, all of the things the member speaks of.
We have made this compatible with what we anticipate will be significantly higher and better land uses that will come out of that plan. That plan is not expected to be completed and, I guess, read into bylaws and such for another year.
In terms of the stations, all of the stations that we’ve designed allow for adjacent development of a significant dense character or overbuild. They all have within them what are called knockout panels, I think, where you can connect to other underground services that would be part of an adjacent development. They’re compatible, and they anticipate the kind of growth that I think the member is suggesting will become possible and should be part of a transit investment like this one.
Just by way of example, the South Granville station is fully integrated. Currently, all they’re allowed to plan for, under the existing zoning, is five storeys. There’s a five-storey commercial development planned there, but the developer has, I think, publicly indicated that they would like to have significant additional storeys above the five of commercial for residential use. They are waiting for the Broadway corridor plan to be published before they do that. So that’s interesting. The market, I think, has adapted and understands that there will be density there.
Great Northern Way, same deal — commercial waiting for the addition of residential.
Mount Pleasant station is an example where the station itself has been realigned to allow for columns that will then support building above the station. On opening day, in 2025, it will be interesting to see what it looks like, but the way it’s being designed does not foreclose in any way the density that we expect and want and anticipate will be allowed by the city.
M. Lee: I appreciate the response and look forward to continuing the conversation, in a different forum, on that point. Thank you for that.
I just wanted to turn to a few other items about the Broadway subway. The next item is just on the procurement processes. I understand — the Minister Responsible for TransLink indicated this as well — that originally there were four bidders, but they were shortlisted down to three. Two questions: why did West 9th Partners drop out of the RFP process, and how did having so few bidders impact the overall contract price?
Hon. R. Fleming: Thank you to the member. I had to get the full backstory there, and I will try and answer his question in the level of detail that he may want. There were originally four bidders. Four were at the RFQ stage, request for qualifications, and three were selected from that. That’s very standard. That’s how it was done with the Evergreen Line. Those three went forward to the RFP.
The three that were selected were Acciona-Ghella, Broadway Connect and West 9th Partners group, which is SNC-Lavalin. That group dropped out of the process after they had been selected during the RFQ. That was a global business decision, by SNC-Lavalin at the time, to withdraw from this kind of work around major project construction and go towards a more fee-for-service business model, where they would consult on engineering projects across the globe. It was not unique to this project or anything caused by that. It was a global corporate decision.
At that point in time, what happened was that Urban Transit, which was originally the fourth at the RFQ stage, was invited back into the process to go forward to the RFP. You would, I suppose, have to be delicate with competitors. The two might think: “Great, we don’t have a third competitor.” But we had a fairness advisor during this entire process and worked with all the bidders and reviewed the decision around inviting Urban Transit back into the pool of bidders.
M. Lee: I have five questions I’d like to fit in, in the 23 minutes we have left. I’ve been trying to ask my questions rapidly in terms of the phraseology.
The next one to the minister is: of the $2.83 billion project cost, how much of that cost is labour? What is the estimated CBA cost? How much has the CBA cost to date?
Hon. R. Fleming: I think we covered this a little bit with the member for Shuswap, or referenced it. The total cost of the CBA that’s related to this project is under 4 percent. We don’t have a breakout of which is labour and which is what, because it’s different contractors, subcontractors and the area of the project that they work on. That’s how the budget is composed. So there would be labour in each of those areas, but I don’t have that figure.
Construction started as the new year rolled around, which was fantastic to see and very well timed. We were happy with how it is proceeding. But it does mean that there’s not much by way of actuals available at this point in time. But it’s ramping up very quickly. Construction is proceeding apace. Perhaps when we get together like this next year, we can have some substantive things to share with the member.
M. Lee: I do appreciate that discussion that you had with my colleague the member for Shuswap in terms of Illecillewaet and the categories around labour-intensity in terms of the project costs — the collective agreement wage rates, apprenticeship rates and BCIB administrative-type costs.
The reason why I’m asking these questions, of course, also is that when one looks at the publicly available documents for the community benefit agreement and the contracting documents that are made public, the value analysis for the benefits of the CBA are removed from the public’s eye, unlike for the Pattullo Bridge, where that schedule was not redacted. Can I ask why is the CBA benefits schedule redacted from the public documents on the Broadway subway project?
Hon. R. Fleming: I think some of our TI Corp. folks were able to answer this question. I gather it came up earlier, maybe with the minister responsible for TransLink. I’m not sure. In any event, they were aware of that, and it was an administrative error — that schedule. Actually, quite a few schedules had not been posted.
I am advised that the information that he is seeking is fully posted now and is available on the website.
M. Lee: In the time that I have left now, I’m just going to turn to the Surrey-Langley SkyTrain. With three different ministers responsible, effectively…. Perhaps the minister can confirm that, in terms of the three ministers that are having joint responsibility over that extension. That’s the first point. If that’s the case, how do the minister responsible for TransLink, the Minister of State for Infrastructure and this minister coordinate their efforts?
In the mandate letter, certainly for the Minister for Infrastructure, along with the minister responsible for TransLink…. There is a prompt construction and prompt design mandate in the letter itself from the Premier. Recognizing that the business case has been received over a year now, what can Surrey residents expect from the three ministers in order to get that project moving forward? What is the expectation, by this minister, in terms of what the “prompt design and construction” timeline means at this point?
Hon. R. Fleming: I can tell the member that this has been very consuming for me. It’s something that is a very enjoyable file.
The possibility that the Surrey-Langley connection offers to shaping growth — smart growth, I guess, is the term we used to use — in the Fraser Valley is a fantastic possibility, and it only comes around every few decades. We haven’t built any public transit of this type south of the Fraser in over 30 years, so it is a very high priority project for us.
It’s also one where, when we did the regional share of the transportation investments that were going to be made in recognition of the lead role and the higher contribution rate we were making on Broadway, it was originally anticipated that TransLink would be the lead agency on the Surrey to Fleetwood SkyTrain.
What we have done since securing a new mandate as government is…. We want this to be a one-phase project. We only have a business case for the first half, but we have concept plans and fairly high-level and well-costed ideas for what was previously referred to as phase 2. So make it a one-phase project. Enhance the federal contribution to cover the additional length of the line.
The province will be the lead on this. TransLink has, obviously, gone through a very difficult period during the pandemic. That’s what we’re looking forward to, and that’s what we have been working with our counterparts in the federal government on. We’ve endeavoured at every occasion, whether it’s the Premier, myself, Minister Ma, Minister Heyman, to engage with our federal counterparts.
The Minister of State for Infrastructure has done a lot of outreach with local government, regional districts and others. She has an engineering background, as the member opposite will know, and has a high degree of enthusiasm and interest and has done a lot of work on this project as well.
The Minister of Environment, of course, has an angle in this. When built, this will be operationally part of the TransLink system.
As a capital ministry, we’re taking the lead, working with TransLink and the federal government to get this built as quickly as possible. We want to get shovels in the ground. We’re working with the mayor of Surrey. He wants to get going on this quickly — the mayors of Langley township and the city of Langley as well.
Of course, we have a lot of caucus members in the government who are very encouraging of this as well.
M. Lee: Just a quick follow-up, then. At this point, what is the timeline for the start of construction of this project?
Hon. R. Fleming: We expect the project, in terms of property acquisition and early works, could start as early as this year. We’re waiting on the federal government for a positive funding partnership announcement with our government. Early works would look like Highway 7 adjustments, utility relocation, those sorts of things. When you talk about shovels in the ground, it could be by the end of this year.
M. Lee: I do appreciate the quick replies at this particular juncture in my remaining questions that I have left.
The Pattullo Bridge replacement. The April 2021 progress update that was made public. I know the minister commented on it, as I did.
The question to the minister is…. At the outset of the project itself, fish windows presumably were known in terms of in the Fraser River and the sensitivity in terms of the environment as to when construction schedules would need to be not continuing during those pauses to protect fish and fish habitat. Was it not the case that when the contract was originally let, and the time frame for the construction of the project was known, those fish windows would have been anticipated and therefore not a source of delay? That’s the first question.
The second question is…. Understand that, as well, there are some important historical and culturally significant site considerations. What options are being reviewed to mitigate any delay relating to that as well?
Hon. R. Fleming: Just as a general comment, we’re pretty proud as a government that projects of all types — whether they’re hospitals, schools being built, child care centres, highway work, roadbuilding, major construction projects — kept going in British Columbia to a greater extent than any other province in the country. Very little disruption and very little schedule loss.
Pattullo was uniquely timed. The contract was let in February, and the pandemic slammed down on British Columbia, Canada and the world a few weeks later on March 8, I think, or something like that. We were basically in lockdown.
There was some uncertainty about safe workplace protocols. The archaeology work was somewhat slowed because we had to move into a model where some of it was done virtually. We had to protect Elders that were involved in archaeology work with archaeological contractors — come up with WorkSafe-approved protocols. So there were some complexities around that that were unique to this project. Then there were some additional permitting complexities around DFO, working with the port.
The bottom line is that the completion date for the Pattullo replacement has crept into early 2024. We disclosed that. We were transparent about that. We are going to try a number of things to get that project back to its original date, but it was prudent to at least advise that it was a possibility that it could be delivered on the revised schedule.
M. Lee: I just have a few questions, and we can work out the response in a moment — to see how the minister and his team want to reply.
I note that on page 14 of the service plan — we’ve already had a significant discussion about roads and highway operations — the ministry’s capital expectations or expenditures going out are actually decreasing, from $3.5 billion to $2.4 billion, going flat in the out-years. Could the minister explain the reason for that decrease?
Hon. R. Fleming: I think I’m looking at the same thing the critic has drawn my attention to, page 14, the highway operations, and why it looks like, in the out-years, it’s declining. These are ministry capital purchases — mostly vehicles, equipment, radios, electronics, specialty equipment and that sort of thing. You sort of buy it on an asset cycle. That’s really what the discrepancy in years is about.
M. Lee: Thank you for the quick response. I’m down to the last point. I appreciate, Minister, the earlier reference to NDIT in terms of the mandate to review the expansion of ground transportation around the province.
I would ask the minister, in my first point, if he would please consider and agree to putting members of the opposition caucus, my colleagues, and myself in touch with NDIT to, at the right point in their process, at least have a discussion with NDIT about their considerations.
For example, I know that the members for Peace River South and Peace River North see the importance of, beyond B.C. Bus North, the expansion of ground transportation networks, including to Fort Nelson. I know that the minister has received correspondence from a gentleman, Bill Dolan, who is a school trustee with school district 81 in Fort Nelson. I have spoken to Mr. Dolan a number of times. He is quite passionate to ensure that there is surface passenger transportation, greater options and availability beyond the existing service, for Fort Nelson to Fort St. John and Dawson Creek, which is only once a week by B.C. Bus North.
Certainly, in terms of the member for Kootenay East and others, there’s a desire, of course, for the expansion in southeastern British Columbia as well.
The first point is: is it possible to arrange, at the appropriate juncture, a discussion between myself and a number of these members with NDIT to consider what that looks like in terms of the needs for ground transportation?
Secondly, in terms of B.C. Bus North itself, I’ll just read these questions into the record. Perhaps I could get a response in writing, to follow, given that we’re now running out of time.
In terms of the B.C. Bus North program, going forward, and what’s likely going to be occurring, could the minister also provide information as to what the government has paid over the life of the arrangement, in 2018, 2019 and 2020, to support the transportation arrangement with the service provider there? What are the ridership numbers currently at, and what have they been over the last three years? And what is the effective cost to government on a per-ride basis?
These are, of course, some of the figures and indicators as to how sustainable a program like this would be. It goes back to the earlier discussion we were having with the minister about ground transportation options around the province. It certainly would be helpful to understand what the underpinnings are of the B.C. Bus North program.
Hon. R. Fleming: To the member’s request, at the right time, when NDIT has worked with the ministry and has got its scope and begun its work on the provincewide intercity bus report, as well as its administration over B.C. Bus North, we’ll for sure offer the critic information that he’s seeking.
To the request about some of the things that he’s asked for in writing, when we have numbers that have been completed by audit and those sorts of things, those kinds of metrics, I think, will be available for the member. We’ll look for things that might be useful for him in the interim.
Did that cover all aspects of the question? Okay.
M. Lee: Just a quick follow-on to say yes, it covers the aspects of the question. Just the one component though was also a request, at the appropriate time, to have a direct meeting with NDIT and that that can be considered, at the right time, with my colleagues in those regions.
Thank you to the minister for all of his availability to walk through the questions, including of myself and my 15 colleagues who have also joined me in this estimates process. I appreciated the time and, certainly, the efforts of ministry staff that have been through and involved for the last four days, giving support to the minister in response to these questions.
Continue to look forward to that ongoing dialogue. We had a significant discussion yesterday in terms of the ability to talk to district managers in the regions for the ministry. Appreciate that that is the case. Look forward to the ongoing focuses that we have, as an opposition caucus, in order to provide that on-the-ground feedback and information to the ministry and the staff and the team across this province.
So once again, thank you very much to the minister and his team, and thank you for your guidance through this estimates process, Madam Chair.
The Chair: Thank you, Member. Noting the hour and seeing no further questions, I ask the minister if they would like to make any closing remarks before I call the vote.
Hon. R. Fleming: I’ll be very brief. I want to thank the critic and the members of the assembly who participated in this set of estimates. I want to thank my deputy minister, Kaye Krishna, who has been very helpful to me in answering the questions that were posed and is the only one that people can see on the screen. So I want to thank her on-screen.
Also, the huge team of staff over at Blanshard Street headquarters who have been helping beam information into this chamber to provide to members. I know it’s been a fairly long four days for them, and I really appreciate that they’ve been on their toes and alert to being called into duty. They’ve done a fantastic job. I can’t thank them enough.
I know that members on all sides of the House will thank them for their professionalism and the answers they’ve helped give through this process.
Thank you go the committee Chairs and our Clerks and everybody who has made this a wonderful week. Man, where did the time go? Anyway, thank you so much.
Vote 43: ministry operations, $948,948,000 — approved.
Hon. R. Fleming: Hon. Chair, I move that the committee rise and report resolution and completion and ask leave to sit again.
Motion approved.
The committee rose at 3:36 p.m.