Third Session, 42nd Parliament (2022)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, November 22, 2022
Afternoon Sitting
Issue No. 252
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 | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
TUESDAY, NOVEMBER 22, 2022
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Routine Business
Tributes
MYER HOROWITZ
Hon. M. Dean: I rise today to speak about an outstanding man who gave his time and energy generously to the communities that he lived in, including, for a time, here in greater Victoria, and who we have sadly recently lost.
Dr. Myer Horowitz passed away peacefully at the age of 89 on October 24 of this year. My connection is through my role as chair of the Centre for Youth and Society board at the University of Victoria. Dr. Horowitz was a founding member and chair of the centre’s advisory board. He also served as the director for the Centre for Early Childhood Research and Policy and a member of the advisory committee for the Family Centre.
Dr. Horowitz had a passion for learning and education that was a running thread throughout his life, as an academic and an advocate for education for all ages. He was active in his communities and dedicated many, many hours to volunteering. He was also honoured with numerous awards and accolades in his lifetime, including becoming an officer of the Order of Canada and receiving the Queen Elizabeth II Diamond Jubilee Medal.
I hope we can all take some time to pay tribute and remember this amazing person and send condolences to his family. I know Dr. Myer Horowitz’s legacy will continue to live on.
Standing Order 81.1
ADOPTION OF
GOVERNMENT BUSINESS
SCHEDULE
Hon. M. Farnworth: I move:
[That, pursuant to Standing Order 81.1 (2),
a. the question on the motion for second reading of Bill (No. 37) intituled Energy Statutes Amendment Act, 2022, and the question on any motion in amendment thereto, be put by 2:00 p.m. on Tuesday, November 22, 2022, without further amendment or debate, and that, if a division is called, it shall proceed forthwith in accordance with Standing Order 16 (2);
b. the question on the motion for second reading of Bill (No. 39) intituled Judicial Review Procedure Amendment Act, 2022, and the question on any motion in amendment thereto, be put by 3:15 p.m. on Tuesday, November 22, 2022, without further amendment or debate, and that, if a division is called, it shall proceed forthwith in accordance with Standing Order 16 (2);
c. the question on the motion for second reading of Bill (No. 43) intituled Housing Supply Act, and the question on any motion in amendment thereto, be put by 6:30 p.m. on Tuesday, November 22, 2022, without further amendment or debate, and that, if a division is called, it shall proceed forthwith in accordance with Standing Order 16 (2); and
d. the question on the motion for second reading of Bill (No. 44) intituled Building and Strata Statutes Amendment Act, 2022, and the question on any motion in amendment thereto, be put by 8:45 p.m. on Tuesday, November 22, 2022, without further amendment or debate, and that, if a division is called, it shall proceed forthwith in accordance with Standing Order 16 (2).
And further, that, for greater certainty, debate on the motion for second reading of any of the noted bills may only be adjourned for the purpose of receiving a report from Section A or Section C.]
Motion approved on division.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call second reading debate on Bill 37, Energy Statutes Amendment Act, 2022.
In Section A, the Douglas Fir Room, I call committee stage on Bill 42, the Provincial Sales Tax Act.
In the Birch Room, Section C, I call committee stage on Bill 41, the Workers Compensation Amendment Act (No. 2), 2022.
Second Reading of Bills
BILL 37 — ENERGY STATUTES
AMENDMENT
ACT, 2022
(continued)
B. Stewart: Well, I guess that comes as no surprise to the opposition that closure is being introduced in terms of second reading on these.
[S. Chandra Herbert in the chair.]
I know that there is a lot of discussion on all of these bills in front of the House on committee stage. I think it’s important that people have a chance to flush out concerns, which is really part of what committee stage allows for.
It’s interesting. As I listened to some of my colleagues about the amendments that are proposed here in Bill 37, I couldn’t help but think about the changes in terms of what it is that the government’s objective is, in terms of changing the Oil and Gas Commission and its role. I understand the regulations are being enhanced or changed. But I think more importantly, one of the things that it appears…. I understand that the government is very concerned about communications and the messaging that it provides to British Columbians and the world.
But I do want to challenge some of that. I say that the idea of removing oil and gas out of the role of what the Oil and Gas Commission has been tasked with over the number of decades that it’s existed, I think, is unrealistic. I just think that the fact is that part of the issue, in my mind, and having…. Not that I’m not supportive of the Clean Energy Act, or the carbon tax that we implemented back in 2007. Part of that was to change behaviours and make a conscientious change.
I think that we would all agree that we’re fortunate to live in, probably, a country that is blessed with so much opportunity. The fact that we only have less than 40 million people living on the land mass that we do — just over five million people in British Columbia…. I think that most places would label British Columbia, Vancouver and the communities as being unbelievably clean and not places that are heavily polluted.
Now, I say that meaning that this whole dialogue that’s been going on about the idea of cleaning up the environment, that we can change this on a dime, let alone the fact that Bill 37 talks about changing oil and gas to the B.C. energy regulator…. To be honest, I think that that’s nice to have, etc., but let’s be realistic.
I served in this House from 2009. I chose to accept a position to go to Asia and work on behalf of the province in the trade offices that we had over there. I didn’t know what to expect, although, mind you, I had travelled previously into Japan, in terms of international trade, and Hong Kong and Australia. I wouldn’t say that those countries are…. They do take their environment very seriously.
There are different challenges with every geographic region in the world. As the representative for British Columbia in Asia, I can tell you firsthand…. I visited countries that are struggling not only with helping their population out.
I know that the governments…. Both parties in this House are there to try to better the outcomes for British Columbians, whether they’re supportive of the government or supportive of the opposition party, in terms of making life outcomes better. Their children get better education. There’s better health care. The opportunities are better.
I can honestly tell you that these countries are struggling to even scratch their way to a place where there’s an economy where they don’t have to live in substandard accommodation. The disconnect I see, in terms of what is trying to be accomplished through Bill 37, is the fact that we think we can clean up the environment by simply changing some wording, etc.
The member for Peace River South yesterday talked about the fact…. You know, the air quality in Peace River is pretty good. But it can’t be thought that the molecules from China aren’t migrating across the Pacific, with the airstream, etc., and landing in North America.
I have to tell you. I looked today, just before giving these remarks. There’s a measurement that they use. If you have travelled internationally and you have spent time in countries that do have air quality issues…. Air quality is just an indication of particle matters that are in the air that will make you not live as long and certainly make your lifestyle very much different.
You look out at how dark the day is to see what the air quality index is. It happens that in British Columbia today, we’re looking at an AQI index of between one and three. This is on a scale between zero and 500.
It happens that today in Beijing, the air quality is actually pretty good by Beijing standards. It’s 151 on that AQI scale. Now, having been there for 3½ years, I can assure you that 151 doesn’t come along every day. Often the days are 200, 300 and, some days, worse than that.
I’ve actually been in the country or come in from some of the outlying areas. I can remember, on one particular mission, coming back from Tokyo, coming in late at night. The air quality index was so bad that the embassy had shut down all of its operations and put people on remote, even though they had all of these air purification systems within the embassy. It was measured at a number that was above 1,000. They actually can’t measure it, they say. It was so brown, so dark.
I just can’t understand. Maybe it’s a case…. Because of the fact that I’ve had the good fortune of not only having a business that required some international travel, representing the government…. I do think that we’re missing the part about what opportunities British Columbia has to offer to the world.
We’re talking about Asia, not just China. We’re talking about Vietnam. We’re talking about Cambodia, Laos, the Philippines, Manila, India. These countries are struggling to create an economy. They will do whatever it takes to create energy, to create economic opportunities. The problem with that is that those choices are often what I would consider to be particularly bad choices.
Bill 37 talks about things that we do want to deal with. There are lots of things in Bill 37 that we support — orphan wells, the rehabilitation, the responsibilities. There is a lot of things in Bill 37 that, perhaps, reach too far. I say that. Overreaching is a problem.
We’ve just recently had COP 27. Lots of people around the world are talking about what the developed countries have been doing to the undeveloped countries and the fact…. One of the big issues was creating a fund to help them up, etc.
I think that this is one of the things that is a complete shortsightedness of the bill, in terms of what it’s striving to do. By trying to change the fact….
British Columbia has this unbelievable opportunity to provide clean energy. I’m not talking about thermal coal. That’s dirty, and it requires all sorts of extra work to clean it up. I think that there should be an effort to try and restrict or limit the export of that, although British Columbia does export those things.
What we need to be looking at is: how do we do it in the best way possible as a transition? The transition meaning that we can provide real opportunities for British Columbians in terms of what the role of the Oil and Gas Commission is in British Columbia, as proposed, to be the B.C. energy regulator.
The changes that are being proposed are really very shortsighted, in my opinion, in terms of trying to put these into place in a very short period of time. As a matter of fact, we did hear, as you stepped into the chair, Mr. Speaker, the fact that closure…. As a matter of fact, I think we’re less than 15 minutes away from closure on this.
I just want to make certain…. I think, as the minister knows…. He well remembers his decision, as the minister responsible for trade, to close 14 offices in one day because of the fact that it didn’t suit the government’s needs or whatever. I think what’s shortsighted about that….
I know the Minister of Forests was recently in Japan. I know the Minister of Energy has been over, as well, and the former Premier.
I think that what’s important is to look at the differences, the opportunity. We’re so caught up in terms of what we’re doing now, notionally, in British Columbia. We’re talking about the energy emissions with LNG in Kitimat. The gas has to come from somewhere. It’s certainly not the pipelines that are the problem. The output of what the CO2 or the NOx emissions are is kind of what the big problems are in terms of turning that into energy.
What we really have to measure here is the equivalency of clean LNG, which we already have LNG Canada committed to here in British Columbia, and the fact that we have imposed regulations through the Oil and Gas Commission upon all sorts of energy extraction. I know that this speaks about the people that are going to be sitting on the board, how they were arrived at, etc.
At the end of the day, it’s important to have a broad view of what it is that we’re trying to achieve. I say that meaning…. We want to clean up the environment globally, not just in my riding or in Vancouver or some other place. We’ve got to be thinking on a big scale, and we are not going to do it by just changing some words and language, by changing it from the Oil and Gas Commission to the B.C. energy regulator.
I have to say. What I think is really, unfortunately, lacking is…. Members of the government should be going over. They should be going to places that I refer to as being new, emerging economies in ASEAN countries where there is the benefit of this type of energy alternative on an interim basis.
I think what we should be doing is looking at some of the Scandinavian countries. If I’m not mistaken…. I believe it’s Denmark that has a sovereign wealth fund that is massive. The point about it is that with those types of resources…. I know that when we first brought in the carbon tax, we directed money to clean energy initiatives to help make the opportunity for new technology, clean technology.
We’ve had debates here in the last five years about whether we should be doing hydroelectric. Currently it’s one of the largest and most beneficial clean energy projects that we actually have in British Columbia, let alone….
We’re working with companies like Corvus, which is doing energy with batteries in ships that are coming to shore, etc., and storing that energy. That happens to be in the Lower Mainland. There are lots of great companies that are doing things like that.
I think that what Bill 37 really misses the mark on is the fact that it…. We should be celebrating the fact that we have the resources that we have and that we can provide an alternative to these countries that are struggling to actually deal with the pollution, and they’re choking on it. I mean, you only have to…. You don’t have to just watch the news. You go to those countries and you see. I think that that would be certainly something that….
Maybe when the House isn’t sitting, there should be a delegation, and perhaps, maybe, Mr. Speaker, you’d be one of the ones that might want to lead that delegation and come back with the perspective that I’ve tried to explain to the Minister of Energy here in terms of the supreme importance of us trying to understand what our role is in the global scheme of things and being able to make certain that we can make that difference.
We can make that difference in our lifetime with those countries if we’re willing to not turn the tap off and say: “No, no. We don’t have that.” They don’t have the gas — the gas reserves. I mean, knowing what China has…. They have gas reserves, but they’re miles deep into the ground versus in Montney and some of these other places where we have resources in the northeast of the province.
I’m not even certain how many of the members in government have physically been across the Rocky Mountains into the Peace River to see the difference and know what it’s like. Having been, formerly, the Agriculture Minister, I know that there are good agricultural opportunities up there for certain commodities and crops, etc. But there are challenges, and the energy that we could provide…. It could provide the financial alternative to not having the resources to improve health care, education — all the things that we want to do.
We talk about poverty. We talk about those things. These are the things that those resources can help bring. I’m not saying to forget about it, and I think that Bill 37 clearly doesn’t say forget about it. It says: how do we deal with orphan wells? How do we deal with the Oil and Gas Commission or the new B.C. energy regulator?
I just want to digress for a second here. I can tell you that one of my very first official visits as a member of government was to Fort Nelson. Now, Fort Nelson, in that particular time, was a booming community of only 2,500. But at the time, the Oil and Gas Commission, soon to be the B.C. energy regulator, provided Bill 37 passes…. It was a brand-new office, locally, to help make certain that people that are working in this northern region….
You have to remember…. We think of Fort Nelson as being the very far north. Well, let me tell you, the oil and gas fields that are north of that are a far cry, and they need local decision-making. But there are lots of other good services in places like Fort Nelson — Service B.C., MCFD. They’re all there.
One of the things about that particular community is that these jobs are local to the jobs that are being done up there. They’re people that know what’s going on. They understand the problems that have existed from past activities, whether there were financial reasons why a well is orphaned or whatever. But I think that the thing about it is that these local people understand that, and they know, often, how best to address those things.
I really do commend the fact that we want to try to make certain that there’s no such thing. We don’t want that term “orphan well” in British Columbia, if we can help it. But we can’t necessarily, with the stroke of a pen, force and make those things kind of all happen.
I think that the Oil and Gas Commission currently has seven offices. I look at the fact that the changes that they’re proposing here really does….
The concern that we would have if and when we get to committee stage on this is that we’re going to want to talk about the principles of fairness and investment certainty that these changes will make. That’s really what it’s about, right? One of the biggest problems in foreign jurisdictions, looking at a place like British Columbia, is what type of certainty do we have in terms of energy, in terms of extracting it? What are the rules?
I know that in my time in Asia, I made it very clear that once you had permits, they were very certain. Now, it wasn’t easy to get the permits. You had to go through the environmental assessment office, the Oil and Gas Commission, or the B.C. energy regulator.
But the principle of having certainty is so important. We need to make certain we do that, not just in oil and gas. We need to do it in forestry. We need to do it in mining. We need to make certain that these opportunities are not snatched away from people that live in the far north up in Fort Nelson, Fort St. John or Dawson Creek. As I said, how many from this building have actually been to those communities?
I think that the things that are important is that I know that there are complex discussions. With UNDRIP going on, it is very important that First Nation consultation is taking place. We’ve seen that with issues in terms of where the majority of this is going with First Nations.
What’s being proposed here is that we also include, in a new board — the B.C. energy regulator — a First Nation representative as one of the board members, which I have no problem, provided that they come with the balance and experience that is necessary to make certain that we make informed decisions. Poorly informed decisions lead to this uncertainty and wild, crazy things that are going on.
I know the Minister of Forests and I have talked ad nauseam about the changes in terms of the forest deferral act that was implemented a while ago. The bottom line is that I think that the situation is it’s left the companies in a very difficult situation. How do we get to that point? How do we build consensus? How do we do the right thing, making certain at every step of the way? So this is really important that the message to the new board and the changes that we’re making to the B.C. energy regulator are very clearly the type of decisions that are balanced, informed and thoughtful, knowing our goal.
That’s, first of all, what we have to do. The idea that we want to produce LNG for ten years, 20 years…. What’s it going to take for India to clean up and get rid of some of the problems. India is not the only country. The population is so populace. I know the other day that we passed eight billion people on the planet. We have to do something, because we’re not going to get away from energy and the need for it.
You can only look at what’s happening in the situation with Ukraine today in terms of the fact that all of those people that have lost, whether it’s nuclear or natural gas, are turning to any other source that they can just to get through the winter. That’s what those other countries that we’re talking about are actually faced with. They’re looking at any opportunity, and what we need to do is create the opportunity through the regulation of the gas and the things that we have here to make certain that what we’re doing is creating opportunities and an alternative solution.
The other thing that was mentioned in here is the…. I think that the current proposal that the B.C. Oil and Gas Commission can hold…. WIP is entirely responsible for obligations under a permit. In the context of an orphan site, regardless of the WIP’s ownership share, that should be concerning. One of the things that….
Sometimes in these investments, or the way that these are shared investments in terms of extracting, getting permits, etc., is that the permitting is either you’ve taken over assumed liabilities from other people…. It will maybe, perhaps, even put such a restriction in terms of these companies that are looking for an opportunity in being able to actually move ahead and actually being able to complete the work that was expected where there is a problem like an orphan well.
One of the things that’s proposed here is that this would fundamentally change how the risk is balanced among the partners. That means the partners, the board of directors. I think that although there is responsibility from boards of directors — don’t get me wrong — they need to make certain that we know what they’re stepping into, trying to make certain that they understand what their risk and liabilities are and trying to work with them to find a solution.
Deputy Speaker: Members, pursuant to the time allocation order adopted by the House earlier, I invite the member to take their seat.
I now must put the question on second reading of Bill 37, Energy Statutes Amendment Act, 2022.
Motion approved.
Hon. B. Ralston: I move that the bill be committed to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 37, Energy Statutes Amendment Act, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. J. Osborne: I call second reading on Bill 39.
BILL 39 — JUDICIAL REVIEW PROCEDURE
AMENDMENT ACT,
2022
Hon. M. Rankin: I move that Bill 39 be now read a second time.
Bill 39 will ensure clarity with respect to the judicial review of decisions made under decision-making agreements under the Declaration on the Rights of Indigenous Peoples Act. The amendments in the bill are part of the government’s implementation of the Declaration Act that provides tools for the province and Indigenous governing bodies to develop decision-making agreements. These agreements support predictability for how decisions are made and are a mechanism for Indigenous peoples to fully participate in decisions that affect them.
This bill will ensure shared accountability for decisions made under these agreements by providing clarity to the courts on any judicial reviews of decisions made under decision-making agreements with Indigenous governing bodies.
The Judicial Review Procedure Act is a procedural statute that governs the processes that apply to judicial reviews of decisions made by government decision-makers — for example, decisions to issue forest licences or highway use permits. Judicial reviews ensure that decisions have been made reasonably, fairly and within the decision-maker’s scope of authority.
At this time, there have been no Indigenous governing body decisions made under the Declaration Act decision-making agreements. The amendments will clarify that a consent-based decision of an Indigenous governing body that is made in accordance with a decision-making agreement will be subject to the same processes under the Judicial Review Procedure Act as government decisions that followed the consent decision.
At present, our government has entered into a consent-based decision-making agreement under section 7 of the Declaration Act with the Tahltan Central Government. This agreement advances reconciliation and provides clarity and predictability for the Eskay Creek revitalization project.
Because the processes in the Judicial Review Procedure Act already address situations where two or more decision-makers make decisions jointly, the bill does not contain amendments to address joint decisions under the Declaration Act decision-making agreements.
Our government has started negotiations with the shíshálh First Nation, the former Sechelt Nation, on the first joint decision-making agreement under section 7 of the Declaration Act. This agreement, once negotiated, will apply to decisions on dock tenures within the shíshálh swiya — that is, their traditional territory — and will build upon the current model for making shared decisions on dock tenures that was established back in 2018.
This bill also contains a new definition of “Indigenous governing body.” It has the same meaning under the bill of the term found in the Declaration Act.
The amendments provide another option for how service of legal process may be made on an Indigenous governing body where there’s an application for judicial review and service is required. Service may be effectively made in accordance with the rules of the court, if applicable, or in accordance with the Declaration Act decision-making agreement.
The amendments ensure that the procedural rights for notice and participation extend to Indigenous governing bodies where there is a judicial review of a consent-based decision of an Indigenous governing body. The bill also extends the tools available to the court for ordering the record to be filed by ensuring the court can order the record of the Indigenous governing body consent decision under section 7 Declaration Act agreements.
This legislation furthers government’s commitment to strengthening relations with Indigenous peoples in the spirit of reconciliation. The amendments were developed in close collaboration with the First Nation Leadership Council, the Alliance of B.C. Modern Treaty Nations and several section 35 rights holders, such as the shíshálh Nation.
M. de Jong: The topic for discussion is, and I suppose will remain, Bill 39, which is a short piece of legislation that speaks to both some procedural matters and the opportunity to seek a judicial review of certain decisions made by a governing body. Those are important evolutionary mechanisms in the law that flow from the adoption of the UN declaration. They are worthy of consideration. I would say this. Conceptually, they are worthy of support.
But the backdrop against which this conversation is taking place needs to be commented upon, because for people watching, a few moments ago something has taken place in this chamber that directly impacts this piece of legislation and other pieces of legislation. That is the motion that the Government House Leader has introduced that, amongst other things, severely limits the opportunity this House will have to consider this piece of legislation but also other pieces of legislation.
The rules around quorum require that members of the government be in the chamber. I rather suspect that many of them would rather not be here, because they must be incredibly embarrassed. If they’re not, they should be. To table legislation in the final three or four days of a session — legislation that the government touts as being fundamentally important to the future of the province — to table that legislation to fit with a political agenda that was entirely within the control of the government and then say, less than 24 hours later, that there will be one or two hours of debate on that legislation is reprehensible, indefensible and an embarrassment.
I don’t know to what lengths this government wants to go to, to chase away support and bipartisan support, but they’re doing a pretty good job. The government stands up. Ministers stand up. “We want to work together. We want to have your support on pieces of legislation that are worthy of that support.” You know what the prerequisite to supporting legislation is? It’s having the time to examine and debate it in this chamber.
Now, that may seem to some members to be funny. I don’t find it very funny. I cannot think of a time in 29 years when a government of any political stripe has done what this government has done today.
Interjection.
M. de Jong: Well, the member for Chilliwack seems to have something to say. I’d like to sit down and cede my time. But there is no time, because his party has imposed closure. And he finds that funny. He finds that humorous.
“Here’s legislation,” the government says yesterday. The new Premier. This is the new Premier’s idea of a coming-out party? This is demonstration of his commitment to the democratic process? Signature pieces of legislation, he calls them. Signature pieces of legislation that will chronicle a path forward on an issue that most British Columbians think is very important, and we will have one or two hours of debate.
Why has the government chosen to proceed down this path in this manner? We have, over the course of this session, in so many instances, demonstrated what can be accomplished when members work together cooperatively. There’s a bill in another committee room, a 600-section piece of legislation, that was, admittedly, the product of all-party work. And the remaining process to complete that work was for a committee of this assembly to go through it in a responsible way to ascertain whether or not it accomplishes what members hope it will accomplish.
After cancelling an entire week of sitting, the government now says that won’t happen. Couldn’t be bothered. Couldn’t be bothered.
Deputy Speaker: If the member wants to talk about what’s happening in another committee room, of course, he can go there. We are here, of course, on Bill 39.
M. de Jong: Actually, the motion that limits the discussion of this bill is directly on point.
Deputy Speaker: We’re on Bill 39.
M. de Jong: It is directly on point and the motion….
Deputy Speaker: Member. Member. If you’ll take your seat, please.
M. de Jong: Mr. Speaker, if you’re suggesting that we’re not, then I’m all ears.
Deputy Speaker: Member. Take your seat, please.
I was simply asking the member to speak to the legislation, which is Bill 39, the Judicial Review Procedure Amendment Act. The member was speaking about another piece of legislation in another committee, which is not appropriate as per the standing order. So if the member could draw his comments back to the bill, I would appreciate it. Thank you.
M. de Jong: I’m not withdrawing any comments, Mr. Speaker. Thank you.
Deputy Speaker: If the member is trying to get a fight from the Speaker, he’s not getting one. I did not ask him to withdraw. He’s sitting right beside me here. I simply asked him to speak to the bill.
M. de Jong: If the Chair’s direction is that in a case where closure has been imposed on the strength of a motion just tabled in this House, on the bill that is before the House now — that, somehow, that is inappropriate, then I am at a loss to explain how members of this chamber can do their job.
Deputy Speaker: We’re not having a debate here, Member.
The member is free to talk about the bill and the implications of closure on this bill. The member was speaking about the implications on another bill, which is not in front of this chamber. So the debate is over. Let’s continue to discuss Bill 39. The member may continue.
M. de Jong: Well, I can assure you that the debate is not over for me. It will be shortly, because the government says it is.
Mr. Speaker, you and other members of the chamber may discern that I’m a little worked up. I don’t get worked up that much anymore, because I thought I’d seen it all. I actually thought I had seen it all, but I have never seen a Premier in his first week in this House do what has just happened. I have never seen a Premier introduce legislation that he says is groundbreaking…. What did the Attorney General call it? Historic.
These bills, Bill 39…. They deserve an opportunity to be examined. I think any responsible review of the record of debates in this chamber over the course of the last four or five weeks would confirm that the debate that has taken place has been responsible. It has been informative. In most cases, I dare say, it has been collegial.
But someone has come along after cancelling an entire week of the session and, with respect to Bill 39 and other pieces of legislation, has said: “No. That troublesome process called democratic debate in a chamber is just a bit of a problem, so we’re not going to do it anymore.” Talk about a legacy forged in the first days in office.
I wonder if any member of the government will stand to defend it. If there is some compelling reason for why the debate on Bill 39 and other pieces of legislation need to be truncated in this fashion, then I’d like to hear it. You know, the whole point of having a parliamentary calendar was so that members could understand, and the government would table, its legislative portfolio, its legislative agenda. All of those bills would be tabled, and then the obligation shifts to the opposition to allocate time as they see fit.
The prerequisite to that is the government needs to table the legislation in a timely way, or it doesn’t work. It was never, ever, ever contemplated, in the creation of what we now call the guillotine motion, that the government would table a bill on a Monday and impose closure on a Tuesday. It was never contemplated, as we see with Bill 39, that the Attorney General of the province would stand up….
I am trying to imagine what the Attorney General would have said, as an opposition member of the federal parliament, if this has happened. I think he takes a measure of pride in being a democrat — a small-D democrat. I suppose he probably takes pride in being a big-D Democrat too. I think he probably…. But today is not a day to be proud of that. Today, with his and his colleagues’ fingerprints on the motions before this House and the impact it’s having on discussion around Bill 39 and other pieces of legislation, is not a day to be proud to be a member of a party that touts itself as a democratic party.
The whole notion…. I said this yesterday. My point was: in circumstances where it was clear that the government intended to go down a certain path, I said, “Be careful,” because I have been around long enough to know that no one sits on either side of the House forever. It might seem like that on some days, but by establishing the pattern and the precedents that this government has in the last few days — procedural precedents around disregard and disrespect for this institution — they may one day rue the day. But they did so.
There are very few people watching these debates. I’m not naive enough to think that there are people across the province tuning in. But they do expect that in the creation of laws — which is what we do here, besides allocating tax dollars — that bind and influence the behaviour of its citizenry, the members of this chamber will devote themselves to the responsible review of legislation that creates those laws.
Whether it is around issues of a judicial review on decisions from First Nations governments or housing issues — the rules that people create in their neighbourhoods that those bills, those proposed laws, will be scrutinized and will receive a sufficient and responsible level of attention, and they’re not. They’re not, Mr. Speaker, not because of circumstances beyond the control of this government. I do want to emphasize that again. I did yesterday, and I will do so again today.
Everyone understands that there are circumstances that are beyond the control of government and that require us to be flexible here. Not a single member on either side of the House, I expect, would take issue with adjusting the rules to take external factors beyond the control of any of us into account. We have demonstrated that and proven that in the past.
This is all within the government’s control. This travesty has been manufactured by the government and by the Premier with the acquiescence and support of every member of his cabinet, and it is deplorable. Each one of these members of the executive council and, by extension, members of the government caucus now own a part of that legacy. They have contributed, signed off and endorsed that approach to law-making in British Columbia.
We may or may not have an opportunity to consider Bill 39 in greater detail. It’s hard to say. Things change pretty quick around here. One minute we have a democratic institution dedicated to the responsible review of legislation, and the next minute we have the Premier’s little playpen, his little parliamentary playpen.
Deputy Speaker: I might again, Member, draw you back to the contents of Bill 39. Thank you.
M. de Jong: A parliamentary playpen that the Premier believes he can manipulate, direct and dictate procedurally. That’s what he’s done today. If he did it today, in his first week in office, imagine what he’s going to be like in his second week and his second month. That’s what we’ve learned about the former Attorney General, who is now Premier, the leader of the New Democratic Party.
I wonder if the realization that the new Premier would shut down debate on Bill 39 and other pieces of legislation…. I wonder if that’s a pledge he made to his caucus colleagues, all of whom apparently supported him to become Premier.
That’s where we’re at. I don’t know if we’ll come back to a committee stage. Historically what you will see in a debate like this is…. In terms of the concept of the bill, we either support or don’t support it. Many times oppositions support the bills in principle and say: “Well, we’ve got some questions in committee.”
I don’t know if we’ll have a committee. Why would I think today that there would be a committee on any of the legislation? The Premier may decide that’s just not necessary any longer, and tomorrow we’ll get another one of these.
Unprecedented. Unprecedented in the annals of parliamentary democracy, at least in the last 40 years, that a government would conduct itself in this way.
Now, maybe the defence…. I suppose I have to be fair to this extent, because maybe I’m giving too much credit. I am operating on the proposition that this is the worst form of manipulation — purposeful, designed.
Deputy Speaker: Member, the motion that was debated and voted on earlier is not the subject of this discussion. This is Bill 39, the Judicial Review Procedure Amendment Act, 2022.
The Speaker has given the member considerable leeway under our rules. He’s made his statement.
My point is that we have a bill, and that is what we’re meant to be addressing here.
M. de Jong: Always helpful, Mr. Speaker. You just took 47 seconds of the remaining time I have left.
Deputy Speaker: Well, then I would ask you to please focus on the bill.
M. de Jong: And I would ask you to give me the opportunity to do so, Mr. Speaker. I am aware of the rules and the motion that pertains directly to the piece of legislation that we are debating today. I dare say we are now engaging in the debate you said you didn’t want to have.
Deputy Speaker: Then please focus on the bill.
M. de Jong: If you’ll let me, Mr. Speaker, happy to.
Deputy Speaker: Member, there’s no need for back-talking the Speaker here. We do have rules here. They’re meant to be followed by every member of this House.
M. de Jong: You’ve now taken an additional 37 seconds of the limited time I have to deal….
Deputy Speaker: This is your time, Member, and you’ve decided not to follow the rules here.
M. de Jong: Mr. Speaker, I just want to exercise my parliamentary right as a member of this assembly.
Deputy Speaker: Member, sit down. Sit down.
I understand the member might be looking for fireworks. He’s not getting them from this Speaker.
I’m asking you to follow the rules, which is to speak to the bill. If the member chooses not to follow the rules, which is to speak to the bill, which is the Judicial Review Procedure Amendment Act, then I’m going to have to move on to the next speaker. It is important we address the legislation in the time that we have.
M. de Jong: Mr. Speaker, if the ruling from the Chair — and you can make this ruling, I suppose — is that in a case where the government has imposed closure on a piece of legislation, we’re not allowed to talk about the fact that they’ve imposed closure…
Deputy Speaker: Member.
M. de Jong: …then that is a new ruling from the Chair, and you might as well make it so at least we’ll understand what the rules are.
Deputy Speaker: No it’s not.
Interjection.
Deputy Speaker: Enough, Member, sit down.
Interjection.
Deputy Speaker: Sit down, Member, or I’m going to ask you to leave the chamber. Thank you.
I’ve asked you to follow the bill. I’ve asked you to focus on the legislation. You’ve made your case around time allocation, which is not a debatable motion under the rules of this House. It’s debating something that happened in the past. We’re asking you to focus on this legislation.
That is the rules in this House, and at this stage, the member’s wanting to debate me and continuing this. I’m going to ask another member, to give their chance to speak, because the member has decided not to follow the rules of this House.
Point of Order
M. de Jong: Point of order, Mr. Speaker. If you are denying me my right to speak in this chamber on a piece of legislation, then I need to hear that now.
Deputy Speaker: Member, I’ve asked you to speak to….
Interjection.
Deputy Speaker: Member, sit down. Sit down.
[The Deputy Speaker rose.]
I’m asking the member to sit down. I’ve been clear about what I’ve asked the member to do. He’s chosen not to do that, so I’m going to ask for another member to have their chance to speak.
Interjection.
Deputy Speaker: Member, enough. If the member’s choosing not to follow the rules, I will have to ask the member to withdraw.
Interjection.
Deputy Speaker: Member, please leave the chamber.
Interjection.
Deputy Speaker: The member’s decided to try and have an argument with the Speaker. That’s not how this place works. I’ve asked the member to follow the rules, which is to speak to the legislation.
Interjection.
Deputy Speaker: Enough, Member, enough. This is your time. You’ve decided to waste it in arguing with the Speaker. I’ve asked you to follow the legislation and to follow the rules.
[The Deputy Speaker resumed his seat.]
Deputy Speaker: Are there any other speakers?
Recognizing the member for Vancouver-Langara.
Vancouver-Langara has the floor.
Member, what is your point of order?
M. de Jong: The clock indicated that I had a remaining eight minutes left, and I’m at a loss to explain to my constituents why those eight minutes were denied to me.
Deputy Speaker: Member, the Speaker has been clear. I asked you to follow the legislation and speak to the actual bill as opposed to other issues relating to the bill that are not in the bill. I’ve asked….
That’s been clear. I’ve stated it multiple times, given the member multiple leeway. The ruling is clear. Thank you.
M. de Jong: I’m still unclear on your ruling, Mr. Speaker.
Deputy Speaker: Member, please have your seat. Please take your seat, Member.
This House will be in recess for five minutes.
The House recessed from 2:30 p.m. to 2:35 p.m.
[S. Chandra Herbert in the chair.]
Deputy Speaker: Thank you, Members. We’re back here for second reading of Bill 39. I have recognized the member for Vancouver-Langara, if he had chosen to continue to stand.
The member for Abbotsford West raised a point of order. I ruled on that point of order. It’s not sustained. I’ve made my reasoning clear. So I’m not sure if the member is asking to raise a different point of order, but the ruling is pretty clear here, Member.
The member for Abbotsford West.
M. de Jong: Thanks, hon. Speaker. I am certain it is clear to you, Mr. Speaker. It is unclear to me on what basis the Chair has chosen to deny me the time that would otherwise be available as part of the standing orders to complete my comments on Bill 39.
I understand that the Chair takes issue with some of my commentary. The practice, as I understand it, has always been to afford members the opportunity to take those comments under advisement.
I should say, as well, and I say this with respect to the Chair, that it’s clear upon reflection that my tone was quite heated earlier. The Chair needs to be respected, and believe me, I am alive to the importance of that. And to the extent that my tone, at least, was disrespectful, I need to apologize for that.
Deputy Speaker: I thank the member for that. It was not respectful and did not respect the role of the Chair to all members, which is to make sure that all members get a chance to speak.
The rules are also clear that the discussion needs to be relevant, and it can’t be repetitious. The Chair asked numerous times for support from the member to discuss the relevant chapters, sections, etc., in the bill. The member decided to argue with the Chair, so I decided to move and request another member to speak to the bill, as we have limited time, as the member stated numerous times.
So at this stage, we’re not going to continue this debate.
M. de Jong: The precedent, Mr. Speaker, then, that has been set is that if the Speaker takes issue with comments made by a member of this assembly, he’ll simply move on and deny the member….
Deputy Speaker: That’s not correct, Member.
The member, if he could take his seat…. The Speaker has made his ruling. I’ve made clear that, as in the rules and as I’ve seen happen in this House many times over, if a member is being repetitious, if they’re not being relevant, the Speaker draws the member to the legislation. I chose to do that with this member numerous times, and then the member chose to argue with the Speaker.
So we’re done with this, Member.
If he could take his seat. The member has made his case, the Speaker has made his ruling, and if the member could take his seat at this stage, it would be appreciated by all other members so we could get back to the legislation and discussion.
Interjections.
M. de Jong: I can raise another point of order.
Deputy Speaker: Member, if you have another point of order, if you can raise the point of order under the standing orders, I would like to hear it, then.
M. de Jong: The standing orders provide a requisite amount of time for members of this assembly to make comment with respect to a bill.
Now, happily, although this may change, bills being subjected to motions of closure have heretofore been unusual. That may be changing, I fear. In fact, all indications are that….
Deputy Speaker: What is the point of order, Member?
M. de Jong: That pursuant to the rules of this House, I am entitled to speak for another eight minutes on this bill.
Deputy Speaker: Pursuant to the rules of this House, the member is also required to be relevant and to speak to the legislation.
So I’ve made my ruling….
M. de Jong: Now apparently I am unable to make my point of order without interruption.
Deputy Speaker: The member is making the same point of order as he tried earlier.
Interjections.
Deputy Speaker: Thank you, Members.
Interjection.
Deputy Speaker: Member, the Speaker has given latitude, has requested relevance, has requested lack of repetition, has requested to get back to the bill numerous times. The Speaker has reminded this member numerous times to do so.
The member has chosen to argue each and every time and has continued to argue each and every time, while claiming he wanted to get back to being able to talk about the bill. When I’ve given him leeway to do so, we go back to the same argument.
I’m not sure we’re going to be helpful to anybody here at this point, Member, to continue this circular discussion when it’s clear…. If the member wants to speak to the legislation, we should speak to the legislation. I respect the member enough to give him the time to finish, but I ask the member to follow the rules of this House and to respect the Speaker as he says he wants to do.
Please proceed, Member.
Debate Continued
M. de Jong: Thank you, Mr. Speaker.
It’s a shame that the concepts and the principles contained within Bill 39, important and relevant as they are to the evolving relationship with B.C.’s Indigenous peoples and First Nations people, would be compromised and limited in the way that they are. You know, there are aspects of judicial review and how those rules would apply to the agreements that are referred to in this legislation. We won’t have time to discuss that. We won’t have an opportunity to pose those questions.
My colleague from Vancouver-Langara has some very real concerns and questions pertaining to aspects of this bill as they relate to, actually, other pieces of legislation that are before this House, in child protection.
It is incumbent upon members of this assembly and, certainly, members of this opposition to point out to the public that our opportunity to pose those questions, to raise those issues on a piece of legislation like Bill 39 and other pieces of legislation that, by his own word, the Attorney General and the Premier describe as historic and unprecedented…. Well, apparently they’re historic and unprecedented for the wrong reasons, because I’ve never seen a government introduce legislation on a Monday and impose closure on a Tuesday.
[J. Tegart in the chair.]
We know politicians — Premiers, ministers — like the term “legacy.” They like to look back and point to pieces of legislation, legislation like Bill 39 and other pieces of legislation that are being considered by the House.
But the legacy that has been set today and the pattern that I fear will be repeated over and over and over again is that this chamber now will be relegated by the Premier and his executive council to an, in their mind, insignificant body whose only purpose is to rubber-stamp, at the Premier’s behest and on the Premier’s schedule, whatever legislation he deems appropriate to present here.
That’s not democracy. It has become fashionable, for reasons that have been discussed elsewhere, to refer to the Premier’s ascension to his post as being tainted. There are reasons for that. It probably falls outside of the ambit of the discussion we’re having in the House, but what does fall within the orbit of what we’re discussing is how every bit of legislation this government has introduced and made subject to these closure bills is now tainted.
I will say this again. Believe it or not — and there is ample evidence to support this proposition — there is an ability on the part of members of this assembly to work together to achieve good things. The government has put all of that — not at risk. They have thrown all of that away, because when we take a bill like Bill 39 or other pieces of legislation that are the product of bipartisan work, we ask only one thing.
The public asks only one thing, I believe, in return: that their legislators, who they elect and pay to perform this function have a reasonable opportunity — not a limitless opportunity but a reasonable opportunity — to scrutinize and determine whether that legislation meets the objectives that the government says they are trying to achieve and, in some cases, that the opposition is trying to achieve.
That is all that is asked for in return. This Premier and this government have signalled that we are asking too much. They have chosen, instead, to proceed with an absolute disregard not just for the principles of democracy but the traditions of this place and the importance of those traditions.
Now, I don’t know. Maybe I’m wrong. Maybe the function of the Legislature as regards Bill 39 and other pieces of legislation — maybe it’s changed because the Premier has decided in all his wisdom to make public the legislative review committee proceedings. I don’t think so. I don’t think he’s inviting the public in to be part of those discussions. I don’t think he’s inviting people in to be part of the discussions that take place around the cabinet table.
The only place the important issues considered by pieces of legislation like Bill 39 can receive an airing is in here, and that has now been eliminated. It has been eliminated. Democracy has been sacrificed on the altar of political expediency, because the Premier has a political agenda that is all about making the Premier look good. Democracy will be sacrificed in the name of that overarching objective.
As I indicated earlier, my tone at a certain point got — I hope, uncharacteristically — harsh and heated, but the government has put a muzzle on this chamber in a way that I’ve never seen before. I don’t expect we’ll hear any member of the government try to defend that, because it is indefensible, but within the limited time available, I did want to and do want to make the point that the legitimacy of legislation like Bill 39 and other pieces of legislation has now been compromised.
If the government expects the opposition to simply stand up and salute and support pieces of legislation that it has been denied the right to properly scrutinize, then I’m afraid they’re dreaming and they’re wrong, because we won’t do it. We won’t do it. We can’t do it. It’s not the responsible thing to do.
There could have been a better way, but the Premier and the government have chosen to manipulate this institution of democracy in a way that is indefensible.
M. Lee: I came into this chamber about an hour ago to stand to speak to Bill 37 and was watching the member for Kelowna West, following the lead of our critic the member for Kootenay East, speak to that bill. The Speaker said: “Time allocation, two o’clock. You’re done.”
Madam Speaker, the reason why the member for Abbotsford West was so heated certainly is not out of disrespect to you and your office. It is out of concern for how this government, under this Premier, has completely undermined the democratic process of this House.
Why does that matter? Well, let me give you a few examples. The member for Abbotsford West referred to, of course, in this bill debate on Bill 39, the importance of the Judicial Review Procedure Amendment Act. It introduces what ministry staff have informed us, the member for Abbotsford West and myself, of accountability measures for First Nations, for Indigenous nations, as to how they use section 6 and section 7 of the DRIPA act. That’s important.
I was not able to speak today about another important issue that’s on Bill 37, and that’s connected to Bill 39. Bill 39 is connected to Bill 38. At 3:15 or after, the member for West Vancouver–Capilano and myself will be in a separate chamber. Why? Because we have three simultaneous chambers happening at this time, with extended hours, with closure, with one week less of debate.
Why? Because as the member for Abbotsford West just said, it’s all about the new Premier. It’s all about how he positions himself in the first three days of his 100-day plan. He has undermined the democratic process of this House in such a way that I find it very difficult to participate in this process, to stand here to be cut off from wanting to express the concern about the term “supporting reconciliation.” That is a new term in Bill 37. It’s important to question what that means.
Why? Because supporting reconciliation is a new term that is plopped in the middle of Bill 37. Yet we have, on Bill 39, the accountability measures. We talk about, in Bill 38, the kind of opportunities there are for coordination agreements, joint decision-making agreements, with Indigenous nations to take responsibility for the care of their children.
The implications on this bill is, on Bill 39, that the decision of the Indigenous governing body and any reasons given by it must be provided. Well, I want to raise that as an item of consideration, because we may not have the opportunity at committee on this bill to even ask the questions.
I spent yesterday, as I have in previous days, with the member for Prince George–Valemount asking questions on Bill 36. I had the opportunity — thank you to the Minister of Health — to understand the consultation process with Indigenous nations for that bill.
But I can say to you that despite his best efforts to demonstrate the level of consultation, I’m not hearing the same on Bill 38. I hope to ask that question in a moment. But it does raise the question on Bill 39. How many First Nations truly understand that what is tied to DRIPA in section 7 is the requirement that they need to provide the reasons given for their decision?
The Judicial Review Procedure Act is an important review and accountability for certain decisions. If we look at other examples, such as the B.C. Administrative Tribunals Act, there are descriptions in that statute of the kinds of procedures, the standard of review, that would take place. Under this amendment, and under DRIPA, there are no explicit standards of review.
I know that we have the Tahltan Central Government agreement with the province of British Columbia, relating to consent decision-making around the Eskay Creek project. When you look at that agreement, there are no standards of review requirements spelling out the reasons for the consent to be provided.
I think it’s very important for nations that are looking to this government to work through that joint decision-making process under section 7 of DRIPA that they understand what the standards review is that will be applied to them in their decision-making if they were to take on this responsibility, which is a statutory power of decision.
Again, second, it’ll be important for nations and for our chamber to understand the nature of the reasons, the requirements, around the record of that decision by the Indigenous governing body. These are important considerations as we look at this Judicial Review Procedure Act and the amendments that are being provided under Bill 39.
We know that when we have the opportunity to review what an Indigenous governing body will be taking on, we need to confirm what standard will be applied to the exercise of their decision-making ability in order to confirm that they have that discretion that’s granted under the agreement with government. Whether that’s an absolute discretion…. This amendment to this bill, as set out in this bill, doesn’t require that reasons be given. It just says: “any reasons given by it.”
The language does matter. That is the opportunity to have that discussion with the minister responsible for the Attorney General Ministry, who’s sponsoring this bill, as he brings it forward to this House — to have the opportunity to have that reviewed.
I’m very concerned that we may not have that opportunity. We have a situation here where various bills are being provided with short shrift in terms of the level of discussion and review that is available to us.
When I said earlier that the shifting of the words, which are important, to section 4 of the Oil and Gas Activities Act…. That section sets out that to address the interests of Indigenous peoples in this province, there’s a recognition to encourage the participation of Indigenous people “in processes affecting them.” Well, processes affecting them, of course, are the regulatory processes around oil and gas, as we look at the expansion of the mandate of the Oil and Gas Commission, to be renamed with more general wording around support and reconciliation.
We have a government here that is ramming through legislation without much review, but these changes do matter. They matter because as we talk about reconciliation with Indigenous nations in this province, we see, time and time again, the rushed nature with which bills are introduced into this House, the overwhelming requirements that are hitting Indigenous nations so that they aren’t able to respond in a careful, thoughtful way as much as they would like. That’s why we need the time, in this House, to review the legislation that’s being presented.
Again, my concern around Bill 39 is that these changes have not had the full line of discussion within Indigenous nations, as to how they consider the rights that they’re going to be faced with under the Declaration on the Rights of Indigenous Peoples Act. As we look at the opportunities that are available to us, we know that, with Indigenous nations, participation and partnership in our resource economy is certainly part of reconciliation. The opportunity that the Tahltan have — to have greater decision-making responsibility for the Eskay Creek project — is a good example of that.
I have had written confirmation with the minister about the usage of this section. We know that, with the mining sector, when this section 7, which Bill 39 pertains to, was introduced, the previous Minister for Indigenous Relations and Reconciliation confirmed that there would be an opportunity for that level of consultation available with the industry, that the kinds of decision-making agreements that pertained to this particular section would focus on high-level strategic decision-making interests and not individual permitting processes, and that the Crown still retains the final decision-making authority.
That final decision-making authority with government is where this needs to be clarified, because as with the agreement with the Tahltan, it seems and appears on its face that there has been a change in approach. I know that, in response, the minister has indicated that government has learned a lot from working with the Tahltan, and future Declaration Act section 7 agreements would benefit from the experience that this government has had with the Tahltan Nation.
As we look at the greater recognition of Indigenous laws relating to self-government, certainly as it applies to children and families, it’s a recognition, under our constitution — that has been ruled on by the courts and confirmed by the Supreme Court of Canada — that the legislation that this government is presenting to us needs careful review. The implications of the legislation are far-reaching.
They’re far-reaching, not just for the nations themselves but for all British Columbians, as to how we look at the sharing of responsibility and the sharing of partnership as it relates to resource development. We know that, even with the oil and gas sector, we’ve seen situations where, for 15 months after the Yahey decision, government froze all permitting in northeast British Columbia across all sectors. We’re still waiting on this government for clarity. Hundreds of millions of investment dollars continue to leave this province because of that lack of clarity.
Both Indigenous communities and non-Indigenous communities are looking to this government for that leadership. So when it uses words around supporting reconciliation, we need to know from this government what it means by that in the context both of Bill 37 and Bill 39, because these two bills are linked in the respect of how this government is going to work with First Nations to have that level of partnership to develop the resources of our province in a way that will promote economic reconciliation with First Nations themselves.
We know, with the opportunity that is presented here, that when we look at the wording that’s been changed, no longer are the purposes clauses in Bill 37 spelling out the kind of level of involvement that we’ve seen. I’ve mentioned one in terms of encouraging the participation of Indigenous people in the processes affecting them. Well, again, the mechanism under Bill 39 certainly would provide them with that.
Bill 37 already has been tabled, and the debate that’s been cut off…. It sets out important purposes and purposes that relate to fostering a healthy environment, ensuring safe and efficient practices, assisting equitable participation in shared pools, effective and efficient processes for review of applications for permits, ensuring applications are approved in the public interest. Again, encouraging the participation of Indigenous people and the processes affecting them. Participating in planning processes and undertaking programs of education and communication.
These are the important purposes that are being stripped out by this government under Bill 37. They are undermining the regulatory regime that was intended to promote the further development of the oil and gas sector in this province. Promoting that oil and gas sector has meant significant economic benefits to Indigenous nations as well as Indigenous people who are working in the oil and gas sector.
I’ve had good discussions — the member for Peace River South has joined me in this discussion — for example, with the Chief of the Saulteau First Nation, a Treaty 8 First Nation. He himself is a person who has a long background in working in the oil and gas sector.
Deputy Speaker: Member, could I just remind you that we’re on Bill 39.
M. Lee: Well, Madam Speaker, as I mentioned — and I appreciate that — the linkage between Bill 39 and Bill 37 is quite significant because it does talk about the importance of supporting partnerships, and how we support these partnerships relate to using the mechanism that is set out in section 7 of DRIPA that’s to be the subject matter of judicial review under Bill 39.
I think it’s important that we understand how this government sees those opportunities for partnership, particularly when it changes the wording, which is a small wording change. But because of closure, I haven’t had the opportunity to actually express that comment in this House.
This is the reason why, when we look at the pattern of closure by this government…. Two o’clock today, Bill 37; at 3:15 today, Bill 39; at 6:30 today, Bill 43; and at 8:30 today, Bill 44. In a rapid succession, debate on these very important measures is being cut off.
It puts a member like myself in a position where…. How am I supposed to do my job? How am I supposed to hold the government to account on important measures and legislation that affect Indigenous peoples and Indigenous nations in our province? That is my critic role. Without having that opportunity, this government has cut off not only myself and my role but that voice, because there are a number of nations that have not been consulted. I know that. Nations tell me that. Nations are not aware of some of the parts of this legislation that is being introduced in this House.
It is an affront to the democratic process that each of us hold in this assembly that we’re not able to participate in the way through the first, second, third readings of bills and the committee stages on these bills. It puts us in a position where I, in the time that I’ve had here in talking to this bill, have had to make some points related to other bills.
But why is that important? Because, as I was saying yesterday in committee on Bill 36, there are points in the other bills that relate to Bill 36 as well. There’s a learning around the fiscal framework that is there with First Nations and expectations of First Nations around how we deal with discrimination in our province with the health care system. There is a need for greater resource support and capacity for First Nations and Indigenous nations as they take back responsibility for their children. That is a discussion we’ll have in a few minutes on Bill 38, before closure is brought to that bill as well.
These are important discussion to be having as to how British Columbians and Indigenous peoples will be working forward on their bills. I know that when we look at the two important housing bills that have been brought forward by this government and by this Premier and bringing closure on the very next day that those bills were introduced in this House…. Well, that closure was not just for those bills. It’s been for everything else. It’s been every single other bill that we have right now up for debate, and it is impeding the ability of members of this House to debate and to fully review the legislation that’s being presented at the committee stage as well.
This is something that makes it very difficult for members of this House to participate in the review of this legislation. It makes me question why we are here, because we are not being given the opportunity to have this discussion, to have the response from the ministers responsible for introducing the legislation.
Yesterday, we got to section 110 of Bill 36. There are hundreds of more sections to review — 650 sections. That is a very important bill that has important ramifications for how the health care system is governed through our professional colleges. It also has important ramifications for how Indigenous peoples ensure they have the cultural safety to work with our health care system. The anti-discrimination measures in that bill are spread through many different sections in that bill.
To the extent that I’m involved in another bill on self-government for children and families for Indigenous nations, I will not be able to join the member from Prince George–Valemount on the other bill, debate and discussion. This is just a small example of what happens when this Premier cuts off debate for his own agenda, manipulates the schedule of this House in a way that is highly disrespectful, not just to the members of this House but to British Columbians and other members of our province that rely on us to do the job that we’re elected to do.
As we look at the opportunities to continue to review Bill 39, we know that the Judicial Review Procedure Act is a very important and fundamental aspect of the framework around DRIPA that we have supported in this House.
Deputy Speaker: Thank you, Member.
M. Lee: I still have five minutes and 45 seconds on the clock there.
Deputy Speaker: Members, pursuant to the time allocation order adopted by the House earlier today, I invite the member to take your seat and must now put the question on second reading of Bill 39, Judicial Review Procedure Amendment Act, 2022.
Motion approved.
Hon. M. Rankin: I move that the bill be committed to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 39, Judicial Review Procedure Amendment Act, 2022, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. K. Conroy: I call second reading of Bill 43, Housing Supply Act.
Hon. M. Rankin: I move that the bill now be read a second time.
B.C. is in a housing crisis. Housing supply has simply not kept up with demand. Essential workers and middle-income households are finding it difficult and sometimes impossible to afford the housing they need in the communities they work in. While many communities are already working hard to attract and to support growth, more can be done to ensure adequate and appropriate housing supply. This bill will help address the housing crisis by allowing the province to take a leadership role in ensuring municipalities are creating a regulatory environment that supports the creation of new housing supply that meets the needs of British Columbians.
It does this in several ways. First, it enables the minister to receive and review housing needs reports produced by municipalities together with other information related to supply and demand for housing to ensure municipalities are accurately forecasting and planning for current and future housing needs.
Second, it gives the province the authority to work with specified municipalities to develop housing targets that reflect housing need, set timelines to achieve those targets and create performance metrics to measure progress.
Third, it allows the province to review the progress of municipalities toward meeting housing targets and ensuring that municipalities are creating conditions to facilitate new housing development.
Last, if a municipality is not making progress toward its housing target, the province may take further progressive compliance actions, including the appointment of an adviser or advisers to review a municipality’s planning and development processes and practices and to report back to the minister. Actions may also include the minister issuing a directive for a municipality to enact or amend a bylaw or issue or refuse to issue a permit. Finally, the highest level of compliance action: the province directly enacting or amending a bylaw or issuing or refusing to issue a permit by order-in-council.
Taken together, these actions will support the expansion of adequate, appropriate and affordable housing supply and increased housing options for British Columbians. The bill was developed through engagement with Indigenous partners and key sector stakeholders. Ministry staff will work closely and collaboratively with specified municipalities to set targets and monitor their progress. The bill recognizes municipal autonomy. Once target setting is established, municipalities will determine how to best achieve the target through a review of their development policies and practices.
The legislation will have far-reaching benefits for British Columbians, as it will enable the construction of housing across the housing continuum and ensure that municipalities are creating the conditions that will deliver adequate and appropriate housing supply. We expect the development community to view the new legislation as good news, as they should benefit from more streamlined development approvals and knowing what housing targets a specified municipality is working toward. Ministry staff are developing regulations to implement the proposed legislation, which would be brought into force by regulation in mid-2023.
This bill builds on the work our government has already done to streamline the development approval processes and is an important step toward expanding housing supply in partnership with municipalities in communities where there is a need for more housing.
The bill puts people first by addressing housing needs of British Columbians. It helps make life more affordable, as increased housing supply helps stabilize price and rent. It makes for a stronger B.C. economy, supporting stable and sustainable communities.
M. Bernier: I appreciate the opportunity to stand up and speak to Bill 43, although it sounds like it’s going to be for, unfortunately, a limited time. Originally, when this government — of course, with only two days after today now left in session — brought forward these pieces of legislation that they say is signature or historic, whatever words they want to use, I was to announce that I was going to be the designated speaker.
We needed time to really speak to this bill, to try to digest what it really means, and to share some of the concerns and some of the benefits that we’re hearing of through this piece of legislation. Unfortunately, I won’t have that time now, as we’ve heard, with closure coming in.
I do find it very interesting — the situation that we find ourselves in on just day 2, in this Legislature, of a brand-new Premier: already, a slap in the face for the democratic and legislative process that, I would say, people have fought long and hard to ensure that we have in this Legislature, in British Columbia and in Canada as a whole.
I know this government has already won the award for the most secretive government in Canada. I will now applaud them for winning the award for the most antidemocratic party in Canada. The members, if they want, can allow more time, and we can speak, and they can speak to these too.
I appreciate being heckled. I do wonder how the members of the NDP justify this. I wonder how they go back to their constituents and say: “Yes, we have elections. Yes, we have a democratic process. Through that democratic process, we get a governing body, and then we get an opposition — an opposition to hold government to account.”
When we’re looking at Bill 43, my job, I thought…. Not only as the critic but as a duly elected person in this House, I have the legislative ability to stand up and speak. That process, for me, is to bring the questions to government, to hold this government accountable. I’m curious as to how these NDP members are going to go back now to their constituents, celebrating Christmas, and say: “By the way, it’s a slap in the face for democracy, because we don’t actually want debate anymore.”
The Minister of Transportation can laugh all he wants. The Minister of Transportation can laugh all he wants at the slap in the face of democracy that we’re seeing in this House right now when we’re shutting down debate.
Deputy Speaker: Member, I would….
Interjection.
M. Bernier: Actually, yes.
Deputy Speaker: The member has the….
M. Bernier: Sorry, Madam Speaker.
Deputy Speaker: Member, I would ask you to bring your remarks back to Bill 43…
M. Bernier: Actually, Madam Speaker, I am doing just that.
Deputy Speaker: …and continue. Thank you.
M. Bernier: Madam Speaker, I would love to do exactly that, which is what I’m trying to do. I would love to be afforded more time to speak to Bill 43. Now, I don’t know if it’s mismanagement or incompetence of this government, because I’ve never seen this.
When I looked into this, we have only two days now — not counting today; I’ll give them credit — left after today to bring in what they’re saying is key legislation. At the very end of a session, there’s not going to be adequate time, on Bill 43, to ask the questions that the people of British Columbia are already starting to ask, on these specific bills.
The Minister of Transportation can try to shut it down, just like his House Leader did, and say we shouldn’t be talking about these bills. But I think it’s really important, when we talk about democracy….
Interjection.
M. Bernier: He can continue to heckle all he wants, Madam Speaker, but this is exactly what we’re talking about. When we want to talk about bills, we can’t. They’ve already shut it down. Now when I’m trying to make a point about the fact that I can’t talk about it, they want to shut that down too. We’ve seen that happen quite a bit already today in this Legislature, when people aren’t given their legislative rights, duly elected rights that I have, to speak in this House.
The Minister of Transportation can continue to heckle and babble all he wants. Maybe the whole point is that he should go back and look in the mirror and want to know why he is okay with shutting down democracy as well. Bill 43 is….
Interjection.
M. Bernier: Well, it’s a party of no democracy, to go to the Minister of Forests.
The whole issue here is that if this government wants to say these are important bills — maybe they are — how do we know? We’re not going to be given adequate time to even debate that.
We know the struggles that people in British Columbia are facing around housing right now — the majority of those created under this government — with the amount of rent going up so that people can’t afford to live here and the amount of available housing going down so that people can’t afford to get into a house.
Obviously, we’re going to have lots of concerns and questions that we want to raise. This government wants us to stand up and support all these bills. How do we know if we can even support the bill when we don’t have time to talk about the bill?
I welcome the Leader of the Green Party, who wants to partake in this.
Look, at the end of the day, the people of British Columbia are struggling in the housing sector, whether it’s affordable housing, rental or market housing. Of course, they could have done this, if it was so important, months and months ago or even years ago. They sat on their hands and did nothing for the last five years, while the crisis continued to grow in British Columbia.
They waited, until just a few days were left in the sitting, to bring forward legislation that could have been done a long time ago. While people have suffered, while prices have gone up, they did nothing. By the minister’s own admission, and as the Premier said yesterday, Bill 43 really isn’t going to come into effect for possibly another six or eight months, yet they have to cram it through with no debate now.
This is another pattern that we’ve seen from this secretive government: “We don’t want to talk about it, don’t want to be held accountable and don’t want to debate it. Just trust us. We’re going to do it behind closed doors and tell you later.” I’ll tell you right now, as a former mayor, I’d be nervous as heck looking at this, not necessarily because of the contents of the bill per se but by this government’s arrogance, of ramming things through without consultation or fair scrutiny.
This bill is specifically about, it says, trying to work with local governments, right after the now Premier — a few days on the job, through his leadership campaign and others — basically blamed everybody but himself. He blamed local governments, blamed foreign buyers, blamed everything for the housing crisis. He’s now only realizing, ironically, after two days of being in this chamber as the Premier, that maybe we do need to collaborate with all different levels of government and the free market to try to build this housing supply.
People have been struggling, and now they’re being told by this government, through this bill: “Don’t worry. We’re putting this bill on the floor, we’re ramming it through with our majority government without real consultation or debate, and then we’re going to go out and consult. Then we’re going to go out and talk to local governments.”
The minister is unable — I’ll ask in committee stage, if we ever have time and if we ever get there — to identify which eight or ten, through his questions. He said they’ve got eight or ten municipalities that they’re going to be targeting. So which eight or ten? If they haven’t decided yet, why are we pushing this, ramming this through without discussion?
What are the outcomes going to be? Well, in this bill, it says we’re going to determine which eight or ten communities are the “bad players” — as I think was one of the terms that the now Premier has used.
Guess what. We’re going to now reward them if they achieve certain goals. But what about the municipalities that are already doing a good job? Where is their reward? I’m curious to hear what the minister is going to say about that — if we have time.
It’s, I think, for a lot of us, almost a loss of words on what we’re seeing take place in the Legislature today. My in-box on Bill 43 and, I’m being told, soon-to-be-discussed Bill 40 — because of closure of this government — is full of concerns or questions or clarifications that people want me to raise in this House as critic. But now I have to go back and tell them, “I’m sorry, the arrogance of the NDP will no longer allow me to do that as the critic. I won’t have time to ask those questions on your behalf as a citizen of British Columbia,” because this government has chosen that that’s no longer democracy.
[S. Chandra Herbert in the chair.]
This government has decided that Bill 43 should just be rammed through without discussion or debate. Is it important? Maybe. How are we supposed to know? Do I take the minister’s word for it? Well, we’ve seen the track record of this government when they make grandiose promises or announcements and then fail to deliver. Is this another one? I don’t know. We’re not going to have time to discuss it. I’ll tell you, if this is truly a signature piece of legislation, then I cannot believe the path that we are going down with this NDP government, with a slap of the face of democracy.
When we look through the legislation — and we’ll probably hear it from the minister and others — it’s: “Don’t worry. Cabinet will decide later. There are going to be orders-in-council. We’ll make determinations.” Guess what. In true NDP fashion, those OICs don’t come back to this House either. None of this will get to be debated. None of it will get questioned. None of it will be scrutinized.
For the people out there who are watching today…. As some of my colleagues have said, it’s probably not a lot. People are busy with their lives. I get that. But those that are I’m sure would be shaking their heads right now on the fact that this government is being so undemocratic. For a party that likes to have “democratic” in their name, it does completely the opposite.
This legislation, on face value…. We’ve all talked about how local government needs to pull up their socks in some ways. Nobody is arguing that point. Some have done a great job. Some are struggling in order to achieve the goals. What’s interesting in this piece of legislation, though, is the unintended consequences that could come from that.
The Union of British Columbia Municipalities has even put out a statement saying that they’re concerned, because of the lack of information, that this could have unintended consequences for municipalities. I’ve got questions and comments I’d love to have on that. I’m not going to have time because this government is going to ram it through with their majority government and not allow that.
Again, I have to report back to UBCM and say: “I’m sorry. I wasn’t able and afforded the time to give the proper scrutiny to the questions and concerns that you have on behalf of local government, because that wasn’t allowed.”
I don’t have to reiterate some of the comments that were made earlier today by some of my colleagues. How disappointed — frankly, I’ll say disgusted — I am to see what transpired today. It’s something that I truly have really never seen before in the history of this parliament, when I’ve researched and tried to find how governments have acted. To bring forward pieces of legislation….
Interjection.
M. Bernier: The member for Maple Ridge–Mission can keep laughing all he wants. It just shows how seriously he takes this as well.
I do find it ironic that when we try to talk about the lack of democracy and the issues that have transpired today, the members of the NDP chuckle and think it’s funny that they’re shutting down debate and not allowing us to speak to the issues that we want to speak to. That’s appalling, and they should be embarrassed by that.
Again, I’m curious on how the members go back to their constituents. They can keep shaking their heads all they want, even the Minister Responsible for Housing. They can shake their heads all they want, but this is an important issue.
If they truly think these are important bills, then how do they justify not speaking to them? Because we’ve been shut down, even members of government are going to be able to go back home now and say: “These were important bills, but I didn’t have time to speak to them either. I was just told to vote in favour, not even knowing what it was.” That’s what we’re going to see take place.
Local governments are going to find out, under Bill 43, maybe in six or eight months, who the municipalities…. Eight or ten are chosen; that’s what it says here in this bill. Then they’re going to be given an undisclosed time period to put a plan forward to this government — because that’s not in the bill. Then, at the end of that undisclosed time, it goes back to the minister and the government.
We heard today that the new Premier wants to create a new Ministry of Housing, probably to deflect away from six years of him not being able to do it himself. So now, at least, he’ll try to find somebody. I’m curious to see who’s putting their hand up for this one, to take on this role. But now there’s going to be a new minister. Well, that new minister is now going to have, according to the legislation, an undisclosed period of time to review the information that that local government has put forward. Then it goes back….
The reason why I’m saying this is there’s so little detail on timelines. The government wants to tout this as a signature piece of legislation that’s going to bring more housing online in the province of British Columbia. Yet I don’t know. I read through it. There’s not one piece, not one word, that I can find in this piece of legislation that sets any goals, that sets any targets, that will actually have results and that will actually bring housing online to support families that need it. There’s nothing in here.
I’d love to have more time to digest this and also to talk to these groups who are all concerned. Normally, past practice in this House is that legislation is all presented within about the midmark of a session, spring or fall, or sometimes an emergency or summer session. The reason why governments of the past of all stripes would look at bringing all that legislation in, such as Bill 43, by the middle of a session was to allow time for feedback, for scrutiny, for the public to look at a bill like this, to see: what are the implications of this bill? How will it affect me, or not?
It was to give opposition time to really come forward and ask questions and to hold government accountable. Fast-track to today, and that doesn’t matter anymore. Accountability is out the window. Scrutiny — out the window. Arrogance — in the House.
This is one of the problems that I have. The government will stand up and say: “We want you to support all these bills. They’re important bills. Please support them. We’re not going to let you talk about them. We’re not going to let you ask questions about them of any substantial time, but we still want you to support them.”
I’m curious. In Bill 43, when we’re looking at the duties of this, back to the heavy hand…. The Premier, to his credit, said that this is something that we want to continue doing, and it’s all about going back to local government.
Well, as a former mayor myself, I do find this one quite interesting, the approach that government is going to take, because as a mayor, I was duly elected to represent my community through that process. I listened to constituents. Through that process, we put together comprehensive plans or housing plans for our community based on those talks with our citizens. This bill, though, says that the minister can establish the housing targets for a municipality.
Now, I understand that because of the frustration over the last couple of years of all the extra taxes that this government has imposed and the amount of investors who have slowed down on building projects in British Columbia, that now has impacted the supply. I get that. That’s this government’s watch. Those are this government’s policies that have created a lot of that turmoil, and now they’re going to put the hammer, as they say, on local government.
I’m the first to say that, as I mentioned earlier, some local governments have done a great job to try to achieve the goals that are required around housing. Some, not so much, and there may or may not be different circumstances, around that, of why. So it’s going to be interesting to see how this plays out.
The reason, again, why I bring that up is if it’s going to be the heavy hand of government, how do they impose, and how do they plan on imposing, legislative-approved targets for each municipality when they may or may not be able to achieve them, when the government themselves, nowhere in this bill, is looking in the mirror and realizing that they’re part of the problem? All the different taxes that they’ve imposed have been part of the problem — their lack of direction and, as we talked about today, some of the problems with B.C. Housing and others, where stock is not being built to the level that is required.
CMHC has said that we need over 500,000 new units in the province of British Columbia within the next, I guess, about five or six years. Curious to see how that’s going to be achieved when this government has only been able to build about 7 percent and open up 7 percent of their promised 114,000 housing units.
I know that the minister and the Premier like to say: “But don’t worry. We’ve got plans for the rest of them.” The minister doubled down today and said: “Don’t worry. Those 114,000 will be built within the next five years.” It’ll be interesting to see how they count that, because I guarantee it won’t be government doing it. They’re now going to have to change how they count.
They’re going to have to look at what everybody in the private sector is doing. Sure, they could probably build 114,000 if we get the heck out of the way and let them do what they’re good at. Then this government will try to take credit for that. They did absolutely nothing, but they’ll try to take credit. I’m sure they will. I’m sure there’ll be some kind of banner announcement of: “Look, we hit the 114,000 houses in British Columbia, through nothing that we accomplished, but we’ll take credit.” I’m sure that’s what we’re going to see take place.
This bill, when you look at it, appears to be another level of bureaucracy, basically to monitor bureaucracy. The reason why I say that, again, is back to my point that government now is going to watch what local government is or isn’t doing and then report back. It’s going to be just more red tape, more discussion, more…. I don’t know.
But is it actually going to achieve the outcomes that we all want to see — that is, actually the housing supply built, which is not only needed but what this government also promised? We didn’t need to get more bureaucrats involved. We didn’t need to have more red tape involved. We could have started right from the get-go and just started cutting some of the taxes that this government has imposed and the red tape that they themselves have in place. That could have actually sparked more investment and more building in the province of British Columbia.
When we look at one of the reports that was done by C.D. Howe, for instance, it’s $644,000 before a shovel really even hits the ground. So $644,000 is spent just on taxes and fees for the average house in Vancouver. Think about that one for a second. I know the Chair, who lives in Vancouver…. We’re talking about $644,000 before I’ve even moved in, before I even start building, really, a place.
No wonder people can’t afford to live in Vancouver or many parts of the Lower Mainland. I’d even argue it’s all over British Columbia now, as we watch things play out. I know Victoria, it was just announced, was and is one of the most expensive places now to rent or live in all of Canada. That is unfortunate, because it is a beautiful place, where we’re standing right now. It’s unfortunate that people will continue to struggle when it comes to being able to afford those homes.
Depending on how we get to committee stage or if that even happens, with debate being shut down like we are seeing, I think it’s incumbent on this minister, on behalf of government, to be able to answer these questions. It is going to be interesting. I’m not trying to say I’m in the know, because I’m not. But it will be interesting — I say this in all due respect to the present minister — that in a week from now we’re having a new Minister of Housing.
It may or may not be this present minister. I’m not foreshadowing anything that I don’t know. Maybe he does, and he can talk about that later. I think it’s going to be an interesting position if we get to answering some of these questions that the next Minister of Housing is going to be tasked with delivering on. I say that because as a former minister, I know how difficult that is and how that will be.
I want to end off kind of where I started. I only have two minutes left. I did originally say that I was going to….
Deputy Speaker: There is still time, if you want to be the designated speaker, but of course….
M. Bernier: Thank you, Mr. Speaker. I know you weren’t here when I mentioned, at the very beginning, that my original intention was actually to be the designated speaker, which would afford me up to two hours to speak. Unfortunately, we’re in a position where this government has invoked closure, saying that every single person in this House has to squeeze now into two hours. Not just me as the critic; every single person in this House.
We have just over two hours to speak to what this government is saying is signature and an important piece of legislation. I know many colleagues on my side of the House wanted to speak to this bill, because they’ve been hearing from their constituents and their local governments some pros and cons that they wanted to get on the record. They’re not going to be afforded that opportunity now, because of this government.
We could have been here last week. Sorry, let me correct that. We were all here last week, but this government chose to cancel four sitting days. They could have brought this bill…. If it’s so important, it could have been brought forward months ago. It could have, at least, been brought forward five, six days ago. But no. They brought it to this House now with only two days left to discuss a multitude of bills. Four bills that we’re trying to talk about are being forced and invoked closure on them today.
It’s a sad day for democracy, and the members of this government should be ashamed for how they’re treating this Legislature.
S. Furstenau: I rise to speak to Bill 43, the Housing Supply Act. But before I get to the legislation, I want to, as I have a tendency to do, tell a few stories.
When I was little and my parents divorced, my mom was working at a bank in downtown Edmonton. She had three kids — single mom — and needed to find housing that she could afford. At the time, in Edmonton, there was city-owned housing, and it was indexed to a person’s income. So we moved into a three-bedroom townhouse. I guess it was a four bedroom. All the kids got their own bedroom. Brother was in the basement, sister and I upstairs, mom upstairs.
The townhouse, fantastically, was located within a block of my elementary school, an elementary school where I had the privilege and good fortune to go to French immersion, so I was learning French. It was on bus routes, so I could bus from one part of town to the other and easily navigate that.
What it gave to my mom at the time was the ability to plan her finances, to budget with an affordable housing budget and to be able to, over time, save up enough money for a down payment on a piece of land, which she eventually bought — an acreage outside of Edmonton — and built, first, a small little carriage house and then built her own house, her and my stepfather. They ran a B and B.
So it was a was a happy housing story, really, for a single parent. What is missing right now in B.C. and in so many places, but particularly here in B.C., are happy housing stories. And it’s why it’s important for governments to really have a clear vision for housing and to be able to articulate and explain: what does it look like when we have succeeded on the housing front? How do we know that we’ve achieved what we’ve set out to do, and what does it feel like for people when we get there?
I think what this legislation today presents are some tools. This legislation, really, grants the Ministry Responsible for Housing with the power to set housing targets in specific municipalities and, if those targets are not met by the municipality, to force the municipality to take action. As we’ve been hearing from the other comments, we don’t have a lot of detail on that, and I expect we’ll get some more of that detail. But it’s a tool.
It’s fundamentally agnostic on the type of housing. There is a mention of affordability in the bill, but it will be interesting to see what that definition of affordability is.
Is it the CMHA definition? Is it affordability as in housing that only costs 30 percent of a person’s income? Is that the affordability? Because that’s a measure of affordability that we should be striving for that is very rare in this province for most people.
The challenge with having tools without a clear articulated vision is that we don’t know if those tools are getting us to where we want to get to.
For us, our vision really is around everybody in British Columbia having a safe, affordable, accessible home to live in and for that home to be in a community that also includes transportation, that includes the kind of infrastructure that brings people together — libraries; learning centres; excellent public transit; walkable, rollable communities; green spaces — and that in that community and in that housing, people’s needs are being met.
These pieces of legislation, both this bill and the bill that we’ll be debating later today, aren’t in their legislation and their tools articulating a vision. We haven’t heard a vision particularly articulated thus far in the presentation of this. We often hear from this government, whether it’s on housing or as it has been on child care, that it’s about spaces, units. But the kind of units, the kind of housing really matters. This is what I would hope to be hearing from this government.
There has been criticism that has come forward in the brief 24 hours that we’ve had this bill before us. The most contentious issue seems to be that this is a legislative stick, not a carrot. It’s a tool that, though the ministry assures us they will not be heavy-handed, can push municipalities into approving housing.
I think it’s really important to recognize that we just had our local elections. A lot of people that ran in those elections would have run on a particular platform. And that platform, in some areas of this province, might have been about limiting density or protecting green space or all kinds of things related to housing or related to the nature of their community. I would expect and anticipate that there’s some anxiety now about this relationship between local governments, municipalities and the province, in light of this bill, around the ability for people who have run on a particular platform to be able to deliver what they promised in their election.
But this isn’t my main critique of this legislation. My main critique is that this change overlooks the key issue that is driving the housing crisis in our province, and that’s the fact that housing is treated as an investment, a commodity, and not a human right. To address the crisis that we’re in, the depth of the crisis that we are in, it is true that we absolutely need more housing. We need more supply. But it is the type of housing that counts.
Currently housing is incredibly expensive. It’s expensive because property owners who more and more frequently are real estate investment trusts…. This is one of the things that we’ve been raising concerns about repeatedly in this House: the role that real estate investment trusts are playing in the housing market not just here in B.C. but globally.
There’s a really terrific film, a documentary called Push, about the global housing crisis, and it really dives into the role that these investment bodies are playing in that there’s a significant amount of wealth and capital, and people are looking for a place for that wealth and capital to essentially be stored for investment uses.
Out of this has developed this real estate investment trust realm, and these are, essentially, portfolios that include real estate. So instead of having a landlord whose name you know, whose phone number you have and who is a person, ideally, who lives in your community, your landlord is a real estate investment trust.
The goal of that investment trust is to get more profit out of the investment. You, as a tenant in any of these properties, now can be either an impediment to that profit-making or not an impediment to that profit-making.
I think it’s really critical that we recognize that these kinds of market forces at play really take out the human-right-to-housing piece of the equation. We know about how they can charge high prices to tenants. We know that they can incentivize what they call unit turnovers to hike rents, and we know that they’re doing it so they can profit.
I was talking to somebody who’s a renter in Vancouver and who was complaining about some flooding that had happened in their unit. They didn’t want to be in any way a problem. The concern was: “I may be seen as a tenant that’s a problem, and I do not want to lose my housing.”
The expectation…. That relationship between the tenant and the landlord, that reciprocal agreement, is broken when the tenant is in a place of such fear of losing their housing that they will not ask for what should be absolutely expected: good maintenance, repairs, a response to flooding.
Deputy Speaker: Member, if I may interrupt you just for a brief moment. We have a committee that needs to report out. If you could reserve your place and adjourn the debate, we will be right back with you.
S. Furstenau moved adjournment of debate.
Motion approved.
Report and
Third Reading of Bills
BILL 42 — PROVINCIAL SALES TAX
AMENDMENT ACT,
2022
Bill 42, Provincial Sales Tax Amendment Act, 2022, reported complete without amendment, read a third time and passed.
Deputy Speaker: Acting Government House Leader. Oh.
Sorry, Minister. There’s a consultation of the Clerks. I don’t know if that’s what you call a group of Clerks — a consultation — but maybe it should be. Okay.
Oh, the “intituled” part. Yes. The motion for third reading of Bill 42, intituled Provincial Sales Tax Amendment Act, 2022, is carried, and the bill has passed.
Hon. K. Conroy: I call, in the Douglas Fir Room, Committee of the Whole for Bill 38, Indigenous Self-Government in Child and Family Services Amendment Act.
In this chamber, continued debate on the Housing Supply Act, Bill 43.
Second Reading of Bills
(continued)
Deputy Speaker: Leader of the Third Party.
S. Furstenau: Thank you, Mr. Speaker. I think “a consultation of Clerks” sounds just right. You can use your powers for good and declare it so.
I’ll just wrap up. Back to the vision and what I hope that we will hear more about and see in response to this housing crisis that we’re in. What we need, now more than ever, is non-market housing, co-op housing, not-for-profit housing, housing that is specified to the needs of communities and that focuses on providing homes, not profits.
The evidence shows that with a significant amount of non-market housing, the prices of market housing actually stabilize. Non-market housing isn’t just beneficial to those who can access. It’s beneficial to everybody, because it reduces the extreme price jumps in rent that we have seen.
I’d argue that the role of government is not to drive its own profits or the profits of private and wealthy developers. I’d argue that the role of government is to serve the public interest, provide essential services and make sure that the conditions for people to thrive are what we are creating in this province.
Housing is one of those conditions. Housing is something that the new Premier once acknowledged in this chamber as a human right. If this is true, then I hope to see this Premier fund non-market housing. I hope to see that he will support municipalities in their housing targets and ensure that these targets are not just met by developers seeking to find ways to create profit but that the Premier will set, fund and meet targets for non-market housing.
It isn’t a silver bullet, but continuing the path that we’ve been on for the last two decades is just going to make the problem worse. It will make those who have the wealth and capital able to continue to benefit from these market conditions and those who don’t continue to struggle.
With that, thank you very much.
B. Banman: I get up today with a heavy heart. This government has decided, after taking a week off, that debate is not worthy in this House. They’ve invoked closure.
For those at home that are watching, closure basically means that debate comes to an end. There is a finite deadline, and all of the bills that are currently being debated in the House end up coming to a screeching halt.
I would say that one of the bills that is before this House right now is one of the largest bills that has come before the House in decades. All of our emails have been flooded. Our in-boxes have been flooded by people who have concerns about that bill, which is Bill 36. I know we’re here about Bill 43, and I’ll get to that.
One of the most important and historic bills and one of the lengthiest bills, over 600 and some odd clauses and over 200 and some odd pages…. This government decided: “Hey, let’s all take a week off. We’re going to be here anyway. Let’s not show up in the House and actually respect the taxpayers that expect us to debate bills. Let’s have a holiday for our incoming new Premier instead.”
I don’t know what the reason was to not be here when we were all here anyway. It’s an atrocity. It is an outrage. I would encourage those that are at home watching to write an email and express your extreme frustration that this government decided not to debate the bills and give them the time that is required. Many of the questions that they sent emails about will never get an answer, ever.
Now we’re here talking about Bill 43. Bill 43 is the Housing Supply Act. I would love, in the committee stage, to ask some questions about that on behalf of many cities that may…. We really don’t know which cities. That’d be one of the first questions. Which ten cities are going to be picked?
Ten cities at random that only the Premier knows, or perhaps the Housing Minister knows, will be picked. I think that those cities have a right to know which ones they are and to phone their MLAs and ask questions on their behalf on Bill 43 and what its ramifications are. They got robbed of that right. They got robbed of it, because we won’t get a chance to do that.
Section 1 of this bill includes definitions of specified municipalities to which the act applies, estimated to be eight or ten communities. Now, I was, as some of the rest of us have been, in municipal government. I was a mayor, and I was on council, and I can tell you that our city was quite often frustrated. We wanted to move things forward, but requirements put in by the provincial government were there. Yet this bill seems to be pointing everything at the cities and downloading onto the cities and doesn’t seem to have any inward reflection on what the provincial government can do on their behalf to streamline this.
As was mentioned prior, approximately $644,000 are taxes and fees and requirements — $644,000 for the average single-family home in Vancouver. No wonder that part of the prices are high if that’s what it takes to actually build a home in Vancouver. It’s outrageous.
For the provincial government to now go point at cities and say: “You’re the problem. You’re the problem. You’re the problem.” Some of that is fair criticism. But I would say that when you’re pointing your finger at others, you’ve got three pointing back at yourself.
Rather than give us the time to debate this, this Premier’s first move is to invoke closure and shut down debate, very similar to when he was Housing Minister and ram-railed through, against Penticton’s better wishes…. This “we know better than you” attitude is not going to sit well with these ten communities. It’s outrageous.
The first act is to basically just shoot democracy down. We are supposed to be here in this House to debate these bills, and this Premier is sending a message loud and clear that democracy is no longer alive and well in British Columbia under the understanding of what many of us think democracy should be. Shame. Shame, indeed.
First ruling out of this Premier’s new directive is to shut down and gag debate. It is a very, very sad day, not only in this province but, quite frankly, in this country.
Section 2 enables the housing target orders to be set by the minister. Housing orders must include performance indicators, timelines and any other matters. I’d love to be able to debate in committee stage and actually get some metrics on what that means, because this government, quite frankly, is not really good at measuring metrics. It comes up with all kinds of plans but no way of measuring the outcomes.
I think it is worthy within this House for these eight to ten cities — those lucky ones that are going to get the dart thrown at the board or however they’re going to come about doing this — to have an idea as to what that actually means. They must include performance indicators. Well, what’s that? This government sure as heck doesn’t like using performance indicators on themselves, yet they’re now going to ram that down the throats of cities that they’re going to have to come up with some kind of performance indicators. We don’t even have the chance to figure out what they are.
It’s going to come up with timelines. Well, what does that mean? Is it six years, six months, six weeks? What are the timelines to get housing going?
Now, I will say that it is refreshing that the Premier has figured out, after denying it when he was the Housing Minister, that hey, supply is part of the problem. It’s a huge part of the problem as to why housing prices are at the levels that they are. Hooray. Maybe through the debate, we could have sunk home a few other indicators as to why housing prices are high as well.
You know, Mr. Speaker, I have grandchildren. One is a marine biologist. The other one’s going on for his PhD. My hope, and part of the reason why I got into politics, is that if they chose, they could choose this province to live in. The marine biologist, well, who knows where she is going to go. Her particular area of expertise is sharks and rays.
Now, I said, when I was the mayor of city hall, that there are not a lot of sharks that swim up and down the Fraser. There are a few that swim around city hall, perhaps, and I would say there are a few that swim around the Legislature here. We are closer to salt water here, so there will be some just out there. But up and around Abbotsford, it’s a heck of a long way for a saltwater being to go up the Fraser to get to city hall.
All joking aside, one of my greatest fears is that they would be forced to leave this province because they cannot afford to live here. Sometimes the opposite side of the House loves to paint us as if we don’t care. It’s like they think we don’t have kids too, that we don’t have grandchildren that we care about. I don’t want to have to have the conversation with my grandchildren, as I’m loading up their luggage and their belongings into the U-Haul, when they come to me, and they say: “Papa, I don’t want to leave, but I have to. I have to, because I can’t afford it. You were there. Why didn’t you fight for me?”
We may come to different ideas as to how we’re going to get affordability. But I’ll tell you one thing. Shutting down debate is not going to get us there. It’s outrageous that that’s what we’ve done. It’s insulting to anybody that believes in democracy that the first thing this Premier did was close down the debate. My grandchildren deserve more than that. They deserve better than that. All of our children do.
I don’t know how this side of the House can sit there with a smile and somehow think it’s okay. It may get the bill passed, but it is sure as heck not okay. When you outnumber us practically two to one, it was going to go through anyway. It’s shameful, and it’s outrageous.
There are performance indicators, timelines and “any other matters.” Well, isn’t that a lovely little catch-all. We’ll never know what it means now, until it’s too late to debate.
Section 3 requires the minister to consider housing needs reports and consult with the municipality prior to making an order. I would love to know what that meant. What kind of consultation would that mean? We’re not going to know, again.
This was the same thing that was done during the FOI debate that I was involved in. Closure was invoked then as well. Fifteen minutes after it was closed, we all of a sudden had a fee for the FOI, which we had we asked and asked and asked about. “We don’t know. We don’t know what it’s going to be.” Fifteen minutes later: “This is what it is.” What consultation was done with that? It’s a mockery of democracy. It’s a mockery of this House.
The taxpayers deserve better than what they’re getting from this government. We don’t always have to agree, but the one thing we should have to agree on is the process. The rules upon which we apply here and the taxpayers’ right to hear the debate is paramount. It is absolutely unfathomable how this government thinks that to dump a bunch of legislation on the floor and not give it the time required for debate is somehow okay.
Section 6 requires and enables the minister to appoint a housing adviser or issue a housing directive only if housing targets have not been met. Well, again: what are these mystical targets? What are they? I think the municipalities have a right to know what targets this government has in mind and how they’re going to measure those targets. Again, they don’t like measuring any of their own targets. They now want to download targets onto a city, but they don’t have the courage to debate it fully in this House.
Section 8 enables the minister to appoint an advisor to review a municipality’s housing policies and inspect all records required, except for those in-camera records. Well, I’ll tell you what that’s going to do. That is going to force municipalities to do more and more and more in camera. Trust me. I got a great idea how it’s going to…. I was sitting there around the table. I got a pretty good idea. You can talk to some of my other colleagues, and they’ll tell you the same thing. It is actually going to make things worse, not better.
Then, what kind of investigation? Who’s going to be the investigator? How is the investigator going to be applied? How are we going to hire the investigator? What metrics are the investigators going to use?
Section 11 enables directives to be issued, requiring bylaws to be changed or to require the approval or rejection of a permit. Directives are limited to being a last resort and must be in the public’s interest. Well, apparently, democracy doesn’t seem to be in the public’s best interest anymore. Is it not in the public’s best interest to debate this, to figure out what the nuances of this means? It’s a classic case of do as I say, not as I do.
Consultation is not telling people what you’re going to do to them after you’ve already decided to do it, and that’s exactly what we’re getting right now. I am at an absolute loss.
Section 12 enables orders-in-council to override municipal bylaws or issue or reject permits, only if a municipality has not complied with the ministerial directive under section 11. Well, again, what does that mean now? It sure would be nice to have a little chat about it; to investigate it a bit; to, as we’re going through this, phone up the cities that we represent and say: “Do you have a problem with this particular directive? What’s going on in your city now? They want to include you as one of the eight to ten cities. What sort of impact is this going to have on your city? Are you going to be able to comply? What kinds of questions would you like us to ask on your behalf?” Yet once again, that’s going to be ripped away from us.
Section 16 requires an annual report on its compliance actions and orders made by the LGIC published no later than September 30 of the following fiscal year. Well, here’s a news flash. Cities, like everywhere else, are having a manpower problem. So which staff member is going to try and write this off the side of their desk? Is a new staff member going to be required? What are the ramifications of this report? How big will the report be? What metrics does the government want to measure in this report?
Those are all things that, in the next stage, we should be asking during the committee stage.
This Premier has decided that he knows better than the rest and doesn’t think that it’s worthy of the cities that he’s going to force this down upon to have any consultation whatsoever and feedback through this process in this House. It makes a mockery of the place, in my opinion.
Section 17 dictates the standards and limitations of judicial review of housing directive and housing target orders, including protecting findings of effect by a minister unless patently unreasonable. Again, it’s a little ambiguous, kind of a lot of grey there, not a lot of black and white. If I was the mayor, as I was, I would want to know exactly what that meant.
Cities that are going to be imposed upon, that are going to be dictated down to by this government, by this Premier, have a right to ask those questions and know exactly what that means. They are being taken advantage of, in my opinion, and don’t have the ability to ask those questions and find out exactly what that means.
[J. Tegart in the chair.]
Welcome to the chair, Madam Speaker.
Well, I was just going on, Madam Speaker, about Bill 43, the Housing Supply Act, and I was talking about how municipalities and cities — the magic eight or ten that we don’t know because we don’t have the ability to ask that question because of closure — will have some very serious questions that they would want debated and asked so they can actually get some understanding of what this bill is.
The one that I think is interesting is: section 19 makes housing advisers immune from liability. So we can go in, create a wake of destruction and interruption, make things actually worse and not be held accountable. That’s how I read it. Now, I would love to be proven wrong, but that would happen in the next stage of the bill, which, as we’ve all heard, will not happen.
This legislation…. There’s a ton of questions that need to be asked. The track record of this government, it seems, is, as I said once before: do as I say, not as I do. “We’re going to talk from mountaintop on down and tell you what needs to be done, take no responsibility for any of the problems that we create of the $640,000 worth of taxes and fees. We’re not going to take a look at anything the provincial government does. We’re going to download that all onto the municipalities and not have any debate as to what this House can do to make things more affordable for British Columbians.”
They’re not going to do any of that. I noticed that one of my colleagues over here is, as per usual, chirping up in the background, and I would say that if he wants to chirp up, why doesn’t he stop the debate and actually have a chance to debate it properly? No, he’d rather sit there on the sidelines and just chirp away, chirp away, chirp away.
Again, why don’t we go through committee? This government has made lofty promises before and failed. Where’s the $400 renters cheque? That’s only taken five years. If you want to start talking about stuff, where’s that? You can’t figure out how to get a lousy $400 cheque out through the front door. Where is that to help those renters? It was okay to promise it and get the election vote. But here it is, six years later — still no cheque for the people that you promised. Where’s that cheque? Nowhere to be found. Promises, promises — broken and broken and broken.
Interjections.
Deputy Speaker: Member, I’ll remind you that we’re on Bill 43.
I would ask members to respect the member that has the floor.
Interjection.
Deputy Speaker: Pardon me? Will you withdraw that, please?
Interjection.
Deputy Speaker: Yes. Thank you.
B. Banman: All this bill is going to do is add more bureaucracy and red tape. It’s going to add more bureaucracy. It’s going to add more red tape. It’s going to force cities to comply with a bunch of unknown rules that we won’t have a chance to sort out. It’s going to force municipalities to hire staff, to divert the existing staff they have, to file needless paperwork so that this Premier can make himself look better and feel better.
It’s not going to achieve the goals that they intend, like many of the other things that have come before this House that they just can’t seem to get out the front door, such as a renters cheque, after six years.
The ICBC cheque was brought up. That was a “you paid too much for insurance” cheque, not a gasoline rebate. If it was, why the heck are EV cars getting it?
But I digress. I’ll go back to the bill at hand.
What cities are going to do is they’re now going to be forced to hire more bureaucrats to shuffle more paper to become less efficient, which will increase the fees and the taxes. Here’s a news flash. That all gets passed down on to the taxpayer at the end of the day.
This government decided to close the debate rather than try to figure out and work with. They do a big talk about working with and collaboration, yet actions speak much louder than the multiple, multiple, multiple words and the drivel that comes from the other side of the House.
They overpromise and underdeliver. It’s constant. And the taxpayers and, in this case, those trying to get into an affordable home are going to pay for it. I take a look at the Premier’s track record when he was the Housing Minister. Less than 10 percent of the 114,000 homes that were promised in two elections have now come to fruition. A ten-year plan. Less than 10 percent is done. It’s laughable.
We now know that it’s projected that we’re not going to need 114,000 homes. It’s projected that we’re going to need almost 600,000 homes to meet up with demand. Rents are at an all-time high. All of the metrics that people want to use to be affordable are out the window under this government’s watch.
The price of rent has gone up over $500. Gasoline prices have gone through the roof. Food prices have gone through the roof. They haven’t made things better for renters. They’ve made it worse. They haven’t made things better for the average British Columbian. They’ve made it worse. Every single measurable outcome. When it comes to health care, they’ve made it worse, not better.
This Bill 43, I expect, will be more of the same. Great hopes, but when it comes to actually debating the bill, they don’t want to hear from this side of the House. Clearly, their actions have said: “We’re going to throw it out on the floor. We’re just going to ram it through. To heck with debate. British Columbians don’t deserve any answers. We’re just going to do what we want. Here’s the flavour of the day, and you’re going to darn well like it, and you’re going to eat it.” That’s basically what it says.
It’s a dark day in British Columbia. It’s a dark, sad day for democracy, and it’s a dark, sad day for this House.
This government had plenty of time to invoke bills. For instance, the health care bill, the largest one, was under no pressure to be done now. It could have been done in the spring. If they thought that this bill was so important, why did they wait until the last second? Maybe it’s because the new Premier was getting beat to pieces in the press because of his inability to get the job done.
Maybe it’s as poorly thought out as the rest of the bills that we’ve had before here that have not come up with answers. They’ve only added to people’s problems. They’ve only added to the unaffordability of this province and the risk that my grandchildren and our children won’t be able to afford to live here any longer. This government needs to step up to the fact that, under their watch, life has gotten worse, not better for British Columbians and that they directly played a role in that, but they won’t do that.
They love to look in the rearview mirror and point at everybody but themselves. I go back to my original statement. When you’re pointing a finger, you’ve got three pointing back at you. I’ve yet to hear this government take responsibility for making life worse for British Columbians, and it is a lot worse. All you’ve got to do is go out there and talk to people. I hear them and get the calls every day.
With that, I appreciate the opportunity to speak to what’s left of the time in this bill that we have. Unfortunately, it won’t get to debate. I’ll take my seat.
D. Ashton: Thank you very much for the opportunity to speak to Bill 43. It’s always a pleasure to stand up in this House and to let the House know and let the gallery know and let the viewing audience know about our thoughts on process that takes place in the chamber.
Before I go any further in speaking to Bill 43, I would like to thank the member for Abbotsford West for taking a stand in this House and expressing something that I’m quite sure a lot of us in this House — not only on this side but a lot of us in this House — were given points to think about.
Whether we think about it today or whether we think about it tonight when we’re laying in bed, looking up at the ceiling, trying to get to sleep, we think about the people that elected us to come here and represent them from every point in every corner in British Columbia to make sure that we bring forward their concerns and their issues and, most importantly, not to deliver politics but to deliver good governance.
It was a great day today to have the member, especially a member with the incredible, learned ability that he has from his years of tenure here and his years of serving the people of Abbotsford West, make those comments and, I hope, give everybody in this House some food for thought for tonight about why each and every one of us is here.
Thank you for the opportunity to speak to the Housing Supply Act. I really wish there was an opportunity to hear from each and everybody in this House — those on our side of the House, those representing the Third Party and especially those representing the government — on why they would like to see this bill enacted. What I’m sure each and every one of us want to do is to do our best to provide adequate housing and to provide additional housing for not only the people that are in British Columbia right now, but you heard my peer talk about what’s going to be required in the future in British Columbia.
We’re not talking just 100,000 homes. We may be talking 350,000, 450,000 new homes for those people that are coming to British Columbia, like many of us did come to British Columbia to seek not fame and fortune but to seek a quality of life for not only ourselves but for our families, our children and our grandchildren, as my peers all said, that would like to stay.
I have two kids. One’s in the Yukon. One’s in British Columbia. I’d love for them all to be back, especially in the Okanagan, to help me on the farm, if nothing else. But I would really, really, really like to see the opportunity presented for each and everybody that comes to B.C. to have a place to call home, whether it’s a townhouse, whether it’s a condominium, whether it’s a freestanding home. To be given that opportunity.
We all know what’s transpired here in B.C. It is a demanding place for people to come to live in. It’s an expensive place. We, in the essence of a previous government — being a farmer — they took the right step and they preserved land in British Columbia. Sometimes some of the big black marks that they drew on a map are a little bit meh for farmland, but they did. They preserved land that enables people, like my friends at home, to grow wonderful apples, to grow wonderful cherries, to grow incredible peaches.
Interjection.
D. Ashton: Apples? Thank you.
Also, as I’ve said before in this House, to grow those little tiny clusters of things about yay big that turn into liquid sunshine in a bottle and coming back in B.C…. Hops again.
An. Hon. Member: Why’d you point at me for that?
D. Ashton: I just had you in mind.
To have the ability to grow hops again because of the incredible brewing capabilities that are being shown in many of our communities. We have such a good opportunity here in B.C.
Now we have a housing supply act that is going to, as far as I’ve been able to see, put a substantial and additional burden onto municipalities that are challenged already. I too had the incredible, fortunate ability to be a councillor, to be a member of a regional district, to be a chair of a regional district while being a councillor and then to be a mayor of Penticton before I came here to the Legislature. And I know how hard the staff in municipalities these days are having to work, not only with the rules and regulations that they’ve incurred on themselves, but also what the province dictates to them that has to be done in compliance with many of the issues that the province has come forward with. Plus federal.
When you take a look at what’s going to happen now, where we have a bunch of “thou shalts….” I was just quickly going through Bill 43. Part 1 is definitions. Part 2(2) is the housing target order. Part 2(3), requirements for making housing target orders. Part 3, housing target progress report and review of housing target progress report. Part 4, compliance. The application, requirements for appointing an adviser or issuing a directive.
Then the adviser, then the duties of a municipal employee, then how that person or somebody in the municipality is going to report to the adviser. Then the directive. I assume that’s the directive coming from the adviser to the municipality — whether or not they’re meeting the requirements of the province of British Columbia.
Then we go down to the order-in-council that’s going to be coming from the government, which is something that we don’t get much opportunity in here to debate or even see until it comes forward — what the rules and regulations are going to be about the Housing Supply Act.
And then there’s the provision of housing information to the minister. Then the submission of housing needs report to the minister. Then the publication of a housing target order, directive or order-in-council. Then an annual report. Then to top it all off, “standard of review — housing target order, directive or order-in-council respecting the permit.” Then “standard of review — order-in-council respecting bylaw,” and then immunity protection for the adviser.
Where is the adviser getting the immunity? Why isn’t it the municipality getting immunity? They’re the ones that are getting demanded to do all this work. Somebody comes floating into the municipality from I don’t know where, appointed by the British Columbia government…. I don’t know. Waltzes in there with diplomatic immunity and says: “Thou shalt.” If it’s wrong, he absconds and maybe heads back to Victoria, or she heads back to Victoria, and the municipality is left there holding the bag. Then the regulations come, which we don’t have a clue of what they’re going to look like. And then the commencement.
Look how long it’s going to take to get the Housing Supply Act in. I’ve heard rumours that this isn’t going to be indoctrinated until some time in the spring. Right now councils are up to here. Budget time’s coming. I mean, councils right now do not have the time to look at this. Do councils want the ability to provide additional housing? I’m going to say yes, they do. I know Penticton’s council does. They want to operate within the parameters of what the municipality and the citizens of the municipality and also the surrounding area have to say about that housing.
Now, all of a sudden we’re throwing something else at them, where it’s going to be a “thou shalt, here it is.” And we heard the costs — the incredible costs. I’ve been told in Penticton it’s well over $100,000 right now per lot on it. Now, that’s a lot of money that not only goes to the city but also flows up to the province.
I’ve got to tell you something. Having an application with the province these days, I get…. As I’m sure many of the people here, including our friends in government…. They get calls from people that say: “Where’s my permit?” “Well, when did you submit it?” “Two years ago.” “Where’s my permit?” “When did you submit it?” “Three years ago.” To get a permit to put some pilings in the lake to clear out some invasive weeds so that they can make a better swimming area — three years.
Before we get into adding some more rules and regulations for housing supply, let’s take a look in the mirror as a provincial government. Let’s take a look, especially on the government side, to say: how can we address some of the issues that municipalities are facing? How can we make sure that we go to a regional district — the Minister of Transportation is here — where the ministry does the approvals because of regional districts on it? Are there ways that we can make it so that regional areas right on the boundaries of our municipalities can also lend a helping hand to provide supply?
I can tell you the backlog at the Ministry of Transportation and the approving officer is this high, and they’re challenged for staff also. So, you know, I think before we come running in, in the last couple of days of a legislative agenda, bringing something forward that probably has some really good meat and bones to it but really requires discussion…. Discussion in here at the stage, say, 2 of it and also moving into committee stage, where we can ask those questions and we can get input…. When I say “we,” we can give our input, and the government can hear the input that I’m quite sure we’re going to be getting from the municipalities.
I only let Penticton know about this, this morning. I fired off this morning and said: “Heads up. This is coming at you.” Also, Summerland, which I call…. My home is in Summerland. Just so that they have an opportunity to look at Bill 43 as the CEOs and start planning on…. Because it’s my understanding that, come heck or high water, at 6:30 — am I correct? — tonight….
Interjection.
D. Ashton: At 6:30, the gavel’s coming down. It’s done. It’s off. It’s going to become law. Thursday afternoon, it will become law here. It gave them a window of a couple of days, but I would sure like to have the input. I would really like to have the input from a place that has huge demands. When I look at my peers from just north of me in Kelowna, I’m quite sure they’re going to be in the same boat.
When I look at the incredible growth that’s taking place in the Okanagan and especially in the Central Okanagan, I’m darn sure that the municipalities in the regional district there would love to have an opportunity not only to discuss this with the hard-working staff at the municipalities in the regional district, but also have a chance to discuss it with the elected officials, all those new elected officials who just got elected here less than a month ago, who are right now buried nose-deep in budget stuff, trying to get through so that they can come to the people of the municipalities or regional districts that they represent of what they’re going to be facing with additional taxes this year. I can tell you one thing: it ain’t going down, not with the demands that are being put on everybody today.
I would really like to see some sober second thought. I would like to see some sober second thought from the new Premier of British Columbia, a gentleman that has come in here and said, as of a couple of days ago: “I’m hitting the ground running, and I’m going to be making changes.”
Okay. You’re making changes, sir. We’re seeing it right now. But make some changes where at least the people of British Columbia, who have elected representation of each and every one of us who sits in this House, have an opportunity to discuss this, not only with yourself, Mr. Premier, but with your Minister of Housing, with our peers in government and especially amongst ourselves, on the right direction that we should be taking on this — just in case.
Nobody’s perfect. When you bring an act forward, nobody’s perfect. I know that staff have probably worked hard on this over the last little bit of time, probably expediently. You know, there might be a period in the wrong spot; there might be a comma in the wrong spot that can make all the difference in the world.
All that I know we would like to see is the opportunity to sit in the committee stage and go through this line by line — just like my peer from Prince George–Valemount, who’s sitting in another House in this Legislature building right now, going through another incredibly important document, the health act, which has 600-some-odd clauses. I think that after two weeks, she’s on clause 110 or 115 right now. It’s just not right. It’s not right what’s transpiring with this to try and get these things through.
I don’t know what the rush is for, especially when I hear the health act isn’t going to be introduced until sometime in late spring, early summer or early fall somewhere. We’re hearing that the Housing Supply Act isn’t really coming forward for the public, for municipalities and regional districts and for public purview and everything until the government adjusts the things that are required in here, gets more regulation forward and then is able to present it. Right after Bill 43 is Bill 44, which is probably going to get spoken to a little bit later today or else tomorrow.
My phone hasn’t stopped. I live in a town in an area where the average age is 63 to 65. These are people that have given up their farms. They’ve hopefully transferred it to their kids or some relations in order to carry on the family tradition. They’re people that have had larger homes. Where we, most of us, grew up, we didn’t have sewer; we had big lots and septic tanks, right? Well, that has all changed. We have sewer now that densification, infill is taking place.
What I want to be able to see is how that’s going to transpire here, how everybody’s input can make a real difference on an act, a bill that is coming forward and that is going to change things in this in our communities. I just really hope…. Sometimes I’m just shooting hot air, you know.
They don’t want to do it. They just don’t want to do it. They have an agenda, and they want to march forward this, but that agenda, best as it may be for what they think is right, is not right for the democracy that we should be and should be able to practise in this House.
You know, I thank my friends; I do. I thank my friends here, but as I’ve said, politics isn’t my best fit; good governance is. Democracy always rises to the top.
There isn’t anybody here right now in the gallery. There was a whole bunch of people that were intently listening and leaning over the gallery, and I was going to single them out a little bit earlier and say: “This isn’t democracy in action. This, unfortunately, is not. Maybe you’ve come into this incredible place that we’ve all been given a key to….” Amazing. Boy, when I first got here, I actually heard one of our other members say that today. When she first arrived in here, she went: “I’ve got a key to this place. Oh my gosh, the people’s House.”
I think there’s real opportunity to go through this bill in a proper way to say, as a total government: “We are going to more affordable housing to those citizens that don’t have it right now in the province of British Columbia, to those citizens that are coming. We’re going to work incredibly hard, each and every one of us, to ensure that that’s happening. We’re going to take a look at what’s happening to home prices. We’re taking a look at the cost of living. We’re taking a look at how young families have literally been pushed out of the market.”
Again, I had a call from a young lady today that couldn’t afford a single, free-standing home. She just got a strata. That strata is zoned for…. That strata has strata rules that are going to be addressed in Bill 44. But they are taking the rights of that strata away and saying: “No, now you have to have rental units.”
She goes: “I didn’t buy in this place. I want this as my home. I want to have neighbours beside me that have kids growing up like what I’ve got. I don’t want to have individuals that maybe don’t look after this place, which I call home, as what myself and the others in the strata unit do right now. I don’t want to have to face the increase of insurance costs in a strata, which are through the roof already.”
We’ve all been debating that for a year or two. I just went through it in a family home. I had my niece living in my mom’s home. My niece went back to England. I was paying an insurance company this much money for insurance because it was “a family member.” All of a sudden, it’s not.
Our family took the step forward, hard as it was. We took the step forward to provide accommodation for another family, with three challenged kids, a wonderful family. But when I walked into the insurance company, which we dealt with forever, they said, “Dan, it’s not family anymore. Your insurance just doubled,” and I went: “Pardon?” This is after we rented it. But your insurance doubled it.
So has the government thought this through for Bill 44 that’s coming, about all those stratas? Who’s going to bear the costs? Who’s going to bear the costs in Bill 44 to address all the new strata rules coming in? I hope the government is going to write a cheque. They’re sending cheques out for people, probably well deserved, to help offset some of the costs for heating their homes over the winter. But those stratas now have also been hung out to dry for additional costs. Who’s going to cover that?
Before you bring a bill in, whether it’s Bill 44 or Bill 43 that I’m talking to right now, what are the additional costs? I can tell you one thing. If I was still the mayor of Penticton, the first thing I’d be doing is saying: “Who’s paying for this? Is it us? Well, somehow we’re billing it back to the province because these aren’t our rules. These are rules that have come down from above. So if you’re going to be sticking advisers into our city halls and working with our staff, who’s going to be paying for it? We’re not.”
If you want this dictum coming forward to try and increase the housing supply in British Columbia, and especially in a community that I’ve been so fortunate to represent in my lifetime, I want to know where the money is coming from. And there better be a stipend, because there are penalties in here if you don’t do it, from what I read between the lines.
Municipalities are going to be penalized in Bill 43 if they don’t do what this bill says that they should be doing. “Compliance” is, I guess, maybe a better word. Maybe it’s compliance. And then if you don’t comply, you get the penalty. But I’m curious what it’s going to be.
Where’s the stick in here? But where, also, is…? If you do step up to the plate — and you go against the will of many of the people that have elected you into that position on a city council or a regional district — to try and help the province by putting additional housing in, by bringing in homes in the back of alleyways, family homes that we used to have for grandma and grandpa…. “Secondary suites” is another word — or legitimizing secondary suites because, unfortunately, there are quite a few that aren’t legitimized. But they’re providing help and providing accommodation to those seeking it. So where is going to be the financial help for the cities?
Believe it or not, it was really interesting. When I was the mayor and electric cars were just coming in, I’ll never forget our electrical department coming to us and saying: “We have a problem.” I said, “What’s the problem?” and they go: “Well, you know those wires overhead? If everybody on the block….” It was actually everybody. If I remember correctly, it was something like eight, the number. “If everybody of those eight people has a Tesla, we’re hooped. We don’t have the capacity on those wires to feed each and every one of those houses that needs a 400-amp service to start charging their Teslas.”
These are the things that are going to have to happen at some point in time. I really don’t think it’s fair. I really don’t think it’s fair for the province to be stepping forward with a Housing Supply Act, which may be a step in the right direction, without consulting those municipalities and those regional districts, without consulting the staff that work in those municipalities and those regional districts and, most importantly, without consulting the people of British Columbia who we represent in this House, on all sides of the House, so that we have the opportunity to ask the members of government some very good questions during committee stage on this bill.
Have they thought of everything? Have they thought this through completely without hitting the ground running and stumbling over the first two or three bills that the new Premier, hearing from our side, is already…. Not only from us. Hearing from the people that we represent.
I’m quite sure, if my phones have been lighting up, and my emails…. I was talking to the office today. The great lady that works in our office in Penticton said: “Dan, you’re not going to believe the emails that are coming in here right now.” So they’re coming. When we get back, it’s going to be too late. We haven’t had that opportunity. I know she’s been sending me…. I’ve been phoning. My phone number is listed in Penticton. Retract that. My phone number is out of Penticton, not listed in Penticton.
People are phoning and saying: “What’s happening with this?” Well, here’s what I can tell you. Here’s what I see. But unfortunately, we’re not going to be able to get to committee stage to ensure that what is transpiring here is exactly what the Premier and what the Housing Minister and what the rest of the government actually want.
What I would really like to see is a little bit of slowdown. Let’s take this through properly. Let’s not invoke closure at 6:30 tonight. Let’s wait. Let’s get through this. Maybe postpone it until we get back here for the spring session, which is going to give us lots of opportunity to take input back from our communities, take input from our municipalities, take input from our regional districts, take input from the wonderful staff that work there.
And also have the opportunity to talk amongst ourselves, not only in opposition but also the government, also the MLAs from the government, where most of us carry on great relationships, and say: “Have you thought about this? What do you think about this? What’s happening in your municipality? Are you getting blowback on this? Do you have some great ideas? Maybe it’s not so important right away to address it this way. We can address it that way.”
To the government and to the Housing Minister, who is in the Legislature at this point in time: You know what? Let’s have a sober second thought. Let’s really think about this. Let’s really think about this, not only in the way these bills are coming forward this week. Again, the member for Abbotsford West did such an eloquent job of stating why many of us are concerned. But let’s think about how we can work together on this.
I’ve heard that word. I’ve heard that word here a lot recently, actually, and I’m glad that I’m hearing it. I’m glad that we’re starting to hear more and more of this, actually trying to work together in this Legislature to make a difference for everybody. But if it doesn’t happen, I can tell you there’s going to be some blowback. I learned a long time ago that it’s really hard to defeat government. Really hard to defeat government. They do a good job themselves. So just let them at it. That’s what I’m seeing right now. I’m seeing public discourse, in some of this, coming.
When you hear from people that you never hear from…. You hear from Mrs. Smith and Mr. Jones, who you never hear anything from. But all of a sudden, the media have done a good job of getting this out in this new electronic medium world that we’re living in with Twitter and Facebook pages and IHOP. What’s the other one called? Anyway, the younger people are using it.
Interjection.
D. Ashton: TikTok. That’s close. IHOP, TikTok. That’s close.
When that stuff is coming out and it’s instantaneous, all of a sudden they’re getting in touch with our offices and saying: “Whoa, time out. Hang on a second here. I’ve got some real concerns on this.” But I’m in opposition. I’ll justify it to the people I represent that I didn’t have the time. I didn’t have the ability. I was vehemently opposed to the closure that’s taking place tonight on this bill.
I really want the opportunity to be able to take this bill home, along with a whole bunch of other bills that have come in here at the end of last week and this week, to be able to discuss it with my peers sitting on this side of the House, hopefully discuss it with some of the members in government — but really, most importantly, discuss it with the people that I represent and especially discuss it, Bill 43, with the people I think it’s going to really affect: the municipalities and the employees of the municipalities; the regional district and the employees of the regional district; and just as importantly, the people of those municipalities and regional districts; the general population that I’m quite sure are going to have some real, real concerns and, hopefully, some constructive ideas that will make a difference so that we can all come in here at some point in the spring session and go: “You know what? Here it is. Here are a couple of addendums.”
Maybe the government would listen to it. Then maybe we could all lift our hands unanimously and pass a bill that probably had some good intent in it, if it had been delivered properly and allowed to be vetted properly, that would make a difference for those people seeking new homes or seeking the ability to have a home in British Columbia, whether you own it or you rent it or you’re like my kids and you bum one — have that opportunity to make a difference, not only in our lives but in their lives.
Madam Speaker, I just want to say thank you again. I want to say thank you to everybody that’s expressed this concern of how this has transpired here. I really, really, really hope the government is hearing loud and clear, not only from opposition but from a lot of people in B.C., that….
The new Premier has hit the road running, and he’s going to be doing this. But I’ll tell you one thing, he’d better look out, because there are going to be a couple of people sticking their foot out and tripping him up on this. And it’s going to be the general public that we represent, because they’re not happy with the way it’s being handled at this point in time in government, at the 11th hour and 59th minute and 59th second. Wrong.
A. Olsen: I’m pleased to stand to speak to Bill 43, the Housing Supply Act, and for the opportunity to talk about our vision for housing.
According to this B.C. NDP government, this bill will help speed up housing development and increase supply by giving the province the power to enforce housing targets on municipalities with the greatest need and highest projected growth. It’s encouraging to see this government begin to take the housing crisis seriously by introducing new legislation.
We need more supply of housing in British Columbia, yes. But when we’re talking about affordability, the type of housing matters. The housing crisis is affecting communities right across the province. To address this, the government needs to be specific about the type of housing supply that is needed. That is missing in this bill, and it’s not been made clear what the plan is by the new Premier.
British Columbians need access to safe, livable, affordable housing. Safe, adequate housing is a critical component of people’s health and well-being. It helps people live with dignity and feel included in communities, regardless of their income. Adding more market housing may improve supply, but it does not guarantee affordability. Communities need dedicated housing for renters that is protected from exploitative market conditions.
The source of the housing affordability problem we have today is that housing is treated simply as a financial asset, a commodity instead of a human right. Real estate investment trusts, or REITs, as they’re known, and other corporations are generating huge returns for shareholders by financializing our housing stock, making housing more and more unaffordable.
Corporations are profiting from the housing market, at the expense of British Columbians. We’re seeing doctors, nurses, teachers and other essential workers who are deciding just to leave our province because they cannot afford to live in their communities anymore.
Our provincial budget and this provincial government is addicted to the revenue derived from real estate taxes, and property transfer taxes in particular. My colleague and I have raised this issue time and again with the previous Minister for Housing — in fact, with both the previous Ministers for Housing. Our province benefits from an inflated housing market. We are addicted, as a province, to the wrong revenues.
The housing crisis has been made worse by a lack of federal and provincial government investments into non-market-housing options. It’s time that we as a province turn that around. That’s not in this bill.
We need to supply more housing units. However, not all housing units are equal. Currently, the supply this Premier, his colleagues and the Minister of Housing are talking about are units fully exposed to the market pressures. We need to build non-market-housing units in B.C., including supportive housing, non-profit and co-op housing and housing that meets the specific needs of the communities. We need a clear vision for housing in our province, one where communities and neighbourhoods are thriving and resilient and where health and well-being of residents matters. We cannot simply….
I’ll put it this way. We must be clear about the types of housing solutions that are needed in our communities. It’s problematic when we build housing supply yet those units are vulnerable to corporations purchasing them and driving up the cost of rent for British Columbians. The government must ensure that speculators and investors do not continue to profit from increased supply at the expense of British Columbians.
In the last municipal election, housing was the central issue in almost every single community across the province. This bill signals that these new councils need to act quickly to increase their housing units or face unknown consequences. The details of those consequences and the affordability targets they need to meet, well, are yet to be determined. At some point in the spring, they will find out. Or so we are told.
In doing so, this government has left every municipal council in limbo until those regulations, which will not pass through this chamber for deliberation, come into effect. Community members, developers, planners and councils will be under even more pressure to solve the housing problem without their provincial government’s guidance or support. This is not how we would characterize a collaborative process.
Last year I asked the now new Premier if housing is considered a human right. He responded by saying yes. To live up to that response, his government must move to create progressive housing policy measures that reflect housing as a human right. This bill does not accomplish that. The outcome we must be striving for and measuring is secure, affordable homes for all British Columbians — for the British Columbians that live here today and for future British Columbians.
This government must support this by setting, funding and meeting targets for non-market-housing. That’s not targets for municipalities. That’s targets that this government is willing to set for themselves and is committed to achieving themselves. Without this, this government will be doing as we’ve seen quite a bit recently, and that’s measuring the wrong outcomes.
With that, thank you for this opportunity to speak to this bill.
HÍSW̱ḴE SIÁM.
R. Merrifield: Today a piece of British Columbian democracy died. I feel this sobriety or this grief, because something that I am incredibly passionate about, have dedicated my entire adult life’s work toward and am really excited about seeing changes within isn’t going to get its due democratic process. This bill being pushed and forced through time allocation in closure is not going to get the necessary debate for us to all make it better, for us to all make it the best that it possibly could be.
Instead, it’s just going to become another indication of a heavy-handed government, one that is arrogantly proceeding, believing that it knows best and it knows better than all of the wealth of experience and all of the voices that each of us represent.
If I look at some of the headlines from the last 45 days…. “B.C. Has the Highest Rate of Unaffordable Housing in Canada.” “Buying a Home has Never Been So Unaffordable in Canada.” “B.C.’s Housing Inventory Lacking ‘Right Supply’ to Resolve Affordable Housing Crisis.” “Housing Crisis on B.C.’s Sunshine Coast Prices out Residents, Creates Staffing Shortages.” That’s one page of Google. That’s the first page of Google.
But here’s a headline from yesterday. To all of this housing crisis, Bill 43 is supposed to be part of the solution, but yesterday’s headline read: “David Eby’s Housing Law Mostly Stick, with Slice of Carrot for Municipalities.”
I’m very pleased that we’re in here talking about housing, because this bill is actually an opportunity to talk about one of the most pressing issues at hand for British Columbians. News flash: housing in B.C. is not affordable. In fact, it’s the least affordable in North America and the third least affordable in the world. This NDP government wears that.
I don’t want these headlines to continue. I don’t want Google to read that we have the least affordable housing in the world. So what are we doing right now? Well, in the absence of democracy, we have to continue. We have to continue to stand and voice whatever possible concerns those outside of this House have.
It is affecting everyone. I spoke with a senior in my community that can no longer afford their rental, but they have to move closer to the health care facility that supplies for their needs and their family. I’ve spoken to young doctors in my riding with crippling debt as they graduate. They can’t afford to purchase in the community that desperately needs them to serve. I’ve got young people in my riding that can no longer afford to leave home.
I spoke with a young man. He must have been in his, maybe, early 30s. He was so excited to brainstorm about housing and housing affordability. I really innocently asked about why he was so passionate about finding a solution, and suddenly he became very emotional. He apologized for his emotion and then spoke about how, despite having a $100,000 income per year, he is sliding backwards, and he and his wife can’t afford to actually have bedrooms for their kids. I’m not talking about separate bedrooms and each having their own separate spaces. He talked to me about how his kids are in closets.
Costs have skyrocketed and are completely pushing housing out of reach. Inflation is out of control, and B.C. again tops the list in Canada for inflation. This is serious. Half of all British Columbians are $200 or less away from insolvency. Time is up. We don’t have a margin anymore; $200 is not a margin. We don’t have any ability for housing to get more expensive.
For Bill 43 to come in and be some sort of a saviour to somehow suddenly answer the supply needs of our province is simply not possible. It’s certainly not possible without the deep dive of democracy and all that that would afford us within committee stage and through second reading.
The Premier likes to talk about housing. When he was Housing Minister, he focused almost solely on demand. Taxed housing to death. Taxed housing into our most expensive in Canada, most expensive in North America and third most expensive in the world. He could have fixed it. He could have fixed it two years ago, becoming the Housing Minister. The NDP could have fixed it six years ago, but here we are.
I just want to talk a little bit about the history of housing, because oftentimes, we’re labelled, as B.C. Liberals, as not having cared about housing prices. That is simply, patently false. Here’s the history of housing from someone who has been intimately involved in housing over the course of the last 25 years. In the ’90s, our economy had tanked. In fact, in 1996, when my then-husband and I declared that we were moving out to the Okanagan from Alberta, we were seen as lunatics, because we were leaving jobs. We were leaving a soaring economy to come to B.C., which had the economy in the absolute tank.
In the ’90s, without an economy and without jobs, which…. There were no jobs in the ’90s. I can verify that, because I created my own. Why did I create my own? There were no jobs. Why were there no jobs? We had no economy. Was housing soaring in the ’90s? No. Housing was actually going down. Smirk all you want. Housing was going down. From the ’90s to the 2000s, there were no increases in housing prices. In fact, the house that was purchased in 1997 showed zero gain in 2002. Look at the maps. Look at the charts.
What happened in 2001? The B.C. Liberals came to power. You know what happened to our economy? It started to come back to life. B.C. came back to life. Fiscal prudence was brought back to budgeting, with a professionalism about the dates and times of elections, budgets, bills. Oh, wait. Bills, so that we weren’t forcing closure, were brought back into the Legislative Assembly of B.C., and with that, positive economic growth. Housing did show modest gains, and these modest gains were decimated by the worldwide recession of 2008 to 2010.
The charts basically flatlined during that time frame and actually went down. Did we need Bill 43 back then? No, we didn’t. We didn’t need it. Why? It’s because things had just barely come back to life. Well, thankfully, due to investments from the B.C. Liberal government in infrastructure and in some spending, we did see jobs come back, and along with that, an increase in housing activity.
As housing started to escalate, as we started to see increases in the cost of housing, what was the B.C. Liberal response? Two things. One, we started building rental housing, and number two, we actually instituted the foreign buyers tax. The last six years of the NDP government have changed that.
Right now we’re sitting with a bill in front of us that is supposed to actually help with supply, after six years of a government that hasn’t worked on supply. Instead of actually debating this bill and being allowed to have a democratic process, well, the government is asking for blind trust, a blank cheque and zero accountability.
In fact, in reading through and re-reading through and re-reading through this bill, I cannot find one accountability measure for the province. The only accountability measures are actually on municipalities, but I can tell you that right now, four different provincial ministries, sometimes even five, weigh in on developments within my riding. Each one of those ministries can take a year to two years to three years to get through their approval process.
Is there anything in this bill that will actually require the province to deliver? Has the province looked at its own issues within ministries to determine whether or not they could speed up housing? And with the blank cheque…. Come on: $4 billion for B.C. Housing on 7,000 completed units. That’s $575,000 per unit. Having toured some of the SROs, that’s ridiculous. That is ridiculous. That is a waste of money. That is not treating British Columbians the way they should be treated.
Why am I remiss to not actually have committee on this bill? Well, British Columbians don’t trust this government. I don’t trust this government. Why? We don’t see the positive results. The other part is that there’s no plan. What is this unto? No plan, no accountability, nothing that can be measured.
The one thing I know about housing is it’s measurable. It happens in units. It happens in dollars. It happens in households. It is absolutely something that we could have measured. But Bill 43 certainly doesn’t measure it for anyone other than the municipalities. Bill 43 is seemingly designed simply to increase pressure on municipalities but doesn’t do anything with the province.
This legislation is going to increase bureaucracy. If you increase bureaucracy and increase the length of time and increase costs, but don’t actually deliver anything greater, all you’ve done is a bureaucratic process that’s going to further contribute to a lack of housing affordability.
This legislation is actually going to turn housing into reports and binding targets. But what happens if they don’t meet those targets? Well, the minister may appoint a bureaucrat to review zoning practices and make changes. What changes? Which bureaucrat? What zoning processes? Again, it’s do as I say, not as I do. The province has no forms of accountability for themselves in this bill. The province doesn’t get held to anything, but the cities do and our municipalities do.
We’re not going to get, probably, to committee stage. But if we did, oh, would we have questions. We’d want to know the specifics of this legislation, particularly how these new tools for government are going to look and how they’re going to impact our municipalities. If you want to see a change in supply, lower bureaucracy. If you want to see housing at lower costs, lower the costs that you put onto housing.
Seattle had a housing crisis and still has a housing crisis, to some extent. But in 2018, a very masterful city manager, as well as a planning manager, for one calendar year removed all obstacles. They said: “For this particular area, we are desperately in need of housing.” So they removed all the obstacles. They said: “If you meet all of our criteria, it’s approved.” In one year, they went from 2,000 units in that particular zone to over 18,000 units in that particular zone. If we are serious about housing and housing supply and housing affordability, get out of the way. We don’t need more bureaucrats and more legislation and a heavier hammer.
Look, we as opposition have been calling for changes. We’ve been calling desperately for changes. Once again, we’re not faced with anything that we can actually get into the meat of.
What are we left with? Well, some lofty rhetoric but a very underwhelming bill. I heard some great promises from the Premier’s housing platform. They’re not in here. This isn’t it. This isn’t collaborative with our municipalities, as the Vancouver Sun calls it. No, it’s a very little carrot, mostly stick.
[S. Chandra Herbert in the chair.]
If we want to increase our focus on targets, why would we add bureaucrats? I mean, really, are we adding new bureaucracy to monitor bureaucracy? That is simply unnecessary. Instead of hiring more bureaucrats to write reports, the Premier could have immediately turned the focus to cutting taxes, cutting red tape, becoming a Seattle, where we actually release the housing industry to create more housing and increase the supply.
We could also see it reduce taxes. The report from C.D. Howe actually talks about taxes and fees adding $644,000 onto the cost of the average Vancouver home. Think about that — taxes and fees, nearly $650,000. No wonder homes are so expensive in Vancouver. How about a bill to lower taxes? How about a bill to cut bureaucracy and get a faster product to market? How about some carrots to actually aid our municipalities to get better housing results?
I’m finding it very difficult to trust anything that this Premier or the Housing Minister has said that this legislation is going to achieve. They have not delivered results over the last six years, delivering less than 10 percent of the 114,000 homes that were promised, halfway through their ten-year plan, 60 percent of the way through. That’s a failing grade — a failing grade. Even if, pie in the sky, we were able to deliver 114,000, that’s not even going to be a drop in the bucket for the 570,000 homes, by 2030, that CMHC says we need.
Do as I say, not as I do. Using a hammer over the heads of municipalities to make sure that they get their housing goals met without any transparency or accountability from the province or their ministries. Using a stick instead of lowering bureaucracy and taxes to actually make a difference in the cost of housing and the supply of housing.
We have a huge issue. Data show that housing starts have only grown 5 percent under the NDP — 5 percent. The population growth during that same time in my municipality was over 10 percent. Imagine that.
Do you know when we did have a tremendous amount of growth in housing? Well, the B.C. Liberals oversaw the largest growth in housing — 70 percent from 2011 to 2017, 70 percent in six years.
I don’t know. Working on supply or working on demand? Demand got us 5 percent over six years. Supply got us 70 percent over six years.
We’re not keeping pace. We’re not keeping up, and our constituents — our beautiful, amazing communities — are the ones that are losing out. Instead of talking about housing, I would love to see housing built. I would love to see actions that actually impact our constituents in real ways.
Where is the $400 annual renters rebate that the NDP promised not once but twice? This last week I got a text message about that. A senior in my community, 72 years old, doesn’t know how he’s going to afford his rent. He was texting me and asking me: “Do you have any idea of when the NDP is going to give that rebate?”
Sounding the alarm bell and hoping that we actually do something, that this NDP government actually does something before it’s too late.
J. Sturdy: I am pleased to stand in the House today and continue discussion on Bill 43, which we do understand is a very important piece of legislation that impacts all of us. I’ll take the opportunity to talk about some of the personal impacts that I’ve seen.
It’s too important to be rushed, and unfortunately, that’s simply where we’re going to be. We, I think, have another 45 minutes, and then we’re done pretty much. That’s a real disappointment. I don’t think it serves the people of this province at all well. Nor does it serve this House and the roles that we’re all to play in terms of providing governance and overseeing and criticizing and assessing and looking to improve the pieces of legislation that government brings forward.
Clearly, we are in a cost-of-living crisis. The member for Peace River South sent us, on our WhatsApp, an example of that crisis. If in no other way…. It was a picture of a head of lettuce at the supermarket for $9.39 — $9.39 for a head of lettuce in Chetwynd. Well, that really just speaks to costs that are out of control. That speaks to a cost-of-living crisis.
Homes and rents are no exception to that. Young families have been entirely pushed out of the market or virtually pushed out of the market. I have two daughters that both live in the Sea to Sky. Both want to get a family started, but both have real challenges understanding how they are going to find a place to live, a place to go.
There’s a variety of different issues. Obviously, the cost is one. The lack of supply is another. Other limitations also need to be noted. Restrictions on agricultural land limit the ability of my kids to live on my farm, even though they work on the farm. They’re expected to go move off and live in town and take the bus to the farm, I suppose. I don’t know. But it’s constrained, it’s restricted, and it’s just not easy. We’ve got to try and make it work better for everybody.
We need to factor in growth in our province. It’s interesting, looking back. My grandparents were born in British Columbia. When they were born, there were half a million people in this province. When my mom was born in the ’40s, there were one million people. When I was born in the ’60s, there were two million people. Then when my kids were born in the ’90s, there were four million people in this province. Now we’re pushing 5½ million, and we’re well on our way to more.
The other question that’s interesting to pose at times — it would be interesting to pose in this House at some point, when it was full — is, when we look at how many of us were actually born here and how many of us immigrated to British Columbia: how many of us are part of that problem but also part of the solution? Clearly, we have a demographic that’s altering, and it needs some consideration. We need some immigration.
It all adds to the problem; it all creates concerns. It has really come to a head, over the course of the last five years or so. This government did make some commitments, which have been referenced here on a number of occasions today, to build 114,000 units over ten years. That’s a small number. It seems big in the picture, but in actual fact, it really doesn’t come close to dealing with what we need as this province grows.
Unfortunately, there’s little sign that those 114,000 units are on its way. I’ve heard various different statistics, but it doesn’t appear that there are more than 6,000 to 8,000 or 10,000 of them that are potentially occupied right now, recognizing that we’re more than halfway through that ten-year commitment. We’ve got a long way to go.
All of it was a little bit murky to begin with it. I wasn’t really sure who was going to be building those 114,000 units, but it’s a great talking point. Is there any assessment? Is there any checking? Well, I hope there is. There’s some conflicting information, but it seems that we’re six years in and nowhere near close.
What that number highlights to me is an even bigger concern. As I referenced in the growth of the province over the last 100 years or more and what we can project going forward, how do those 114,000 units relate to what we’re going to need?
Current data from CMHC suggests that we’re going to need 570,000 more units by 2030 — not that far away — but 2030 is an attractive date for a variety of reasons. There are lots of promises around 2030. Maybe we’ll have a Massey Tunnel by that time. Maybe we’ll have the beginnings of a plan for rapid transit across Burrard Inlet, which actually makes the Massey crossing look pretty small. We see huge traffic and congestion, and that is very much tied to housing and an ability to get housing in place.
I can’t resist saying that maybe 2030 is the date that we’re looking to for B.C. Ferries to solve some of their problems as well. It’s not in the next performance term but in the performance term after next that we will see, it’s suggested, a plan to double the ferry for the Langdale route and stop the traffic chaos going into the Sunshine Coast. Unfortunately, the appropriate minister is not here. But I’ve been on the bandwagon of regional transit for the Sea to Sky for many, many years now.
Deputy Speaker: Of course, Member, we don’t mention who’s in or not in the House.
J. Sturdy: Fair enough, sorry. My apologies, Mr. Speaker.
As part of a housing solution, as part of a transportation solution, we’ve been seeking regional transit for the Sea to Sky for many, many years. Maybe that 2030 date is what I should be looking at. I certainly hope not, but it seems an attractive date.
Anyway, 570,000 new units by 2030. We’re never going to get there, it doesn’t seem. We don’t seem to be making much progress on this. When it comes to affordability, we are in that crisis. There’s no question about it. The comment that nearly half of British Columbians are $200 or less away from insolvency is a dramatic comment — and, very frankly, alarming.
We are in an affordability and wage crisis. We’re in a business crisis. We’re in a triple-net tax crisis. We’re in a taxation crisis. When we see or understand the taxes and fees, at $644,000, to the cost of building a home in Vancouver, that is a number that, again, indicates a crisis. When will we see some action on this? Where is the opportunity? Where is the action that we’ll see from government to help deliver affordability, as promised?
We see some tax shifts, but ultimately tax growth. This sort of sense that big payrolls equal big profits is not something that’s true. Certainly you don’t tell that to farmers or restaurant owners, because it’s not the case. Yet we see big taxation shifts, to those employers, which ultimately contribute to unaffordability. It just seems out of touch.
We have a Premier now, a new Premier who has been the Housing Minister for two years, during which the average monthly cost of a one-bedroom apartment rose $511, in two years — that’s pretty crazy — to $2,412. Vancouver has the distinction of being the most expensive rental market in the country. Honestly, it’s pretty hard to imagine that Victoria is much behind here.
Now this House is asked to — being required to, frankly — trust that there’s going to be action, because we’re not going to be able to examine this bill in detail. We’re going to be just accepting it. It will be done without question, without adequate oversight. So we’ll need to trust.
In two years as the Housing Minister, the most significant progress I saw was that the minister fired the board of B.C. Housing. That was a bit of a surprise — on a Friday afternoon, naturally. That was the most progress that I’ve seen — incidentally, a board that was appointed by his predecessor. It certainly does not suggest that we should have confidence in this government, in this legislation, in this initiative, especially when we don’t have an opportunity to examine it as it requires and as it deserves.
We’re led to believe that this particular legislation before us today is some part of a grand plan, albeit a delayed plan. It’s a plan, honestly, that might even have done some good at some point, but it seems that it was just delayed in order to facilitate a perception of hitting the ground running, as it were — along with a delay in the strategies to make people feel safer in their communities and their homes, for their families.
What has not been done? What has fallen off the table? What has fallen by the wayside as a result of the delay, where we’ve got political ambitions dominating the calendar, where things are for political effect or for political benefit, and where to create the impression of hitting the ground running is more important than taking real action for real people.
“Working for you” is not a term that we hear much anymore, because it just doesn’t seem to be true. It’s delayed, deferred or postponed to further ambition. There could have been…. You know, the beneficiary of delay is, in some respects, unconscionable. It’s political cynicism. It breeds political cynicism. The delay, were it necessary, which works for political advantage….
But has that always been the plan? Have we always been trying to figure out how to time things just right? Well, maybe not. Maybe, over the last two years, under this Premier’s tenure as the Housing Minister, it has just been about cleaning up the mess at B.C. Housing — a disaster, as identified by Ernst and Young, of lack of accountability, of awards of “multi-million-dollar housing contracts with little or no documentation” on how and why decisions were made, according to the Tyee.
“No comment” is what we hear. No comment. But as Ernst and Young says: “No formal evaluation criteria exist for supportive housing projects” or “subjective evaluation criteria and decisions are not documented.” It’s back-of-a-napkin.
You know, this Bill 43 is an enabling piece of legislation, for the most part. Much of it will be through regulation. When we look at the history of B.C. Housing over this last five years and we end up with a condemnation like this — where there are no criteria, no supportive documentation, no evaluation, subjective evaluation or, certainly, no documentation — these are real problems, yet we’re supposed to have faith that what is being proposed is going to be good. “Don’t worry about it.” It’s pretty astonishing, some of the allegations that have been reported. I would say that the previous Housing Minister needs to take some responsibility.
Over the last two years, this type of legislation must have been contemplated. There must have been some work done on this sort of thing. It has been in the public discourse, for a long time, that there needed to be some carrots and some sticks. Now, from what it looks like, it’s mostly sticks, but there does need to be…. People have been talking about this for a long time, so it’s hard to imagine, even if we just look at the two years of the previous minister, that we couldn’t manage to deliver legislation until the last week of the session.
I think historically there was general consensus — not a standing order but a policy or just a standard way of doing things — that if you couldn’t get your legislation into the House in first reading before the middle of the session, then you had to wait till the next session. Clearly, that’s gone out the door, because what we’re seeing is that we introduce legislation on a Monday, and we introduce closure on a Tuesday. Well, that certainly….
Limiting debate on this piece of legislation is an abomination, and I don’t think it serves anybody. It certainly doesn’t serve the public of this province.
You could see that there could be an opportunity or could be a need to move incredibly rapidly in a couple of days, but these are on things like floods and catastrophes. This housing issue has been years in the making, and we need to take action on it, but we also need to examine what is being proposed.
Bill 43 is pretty much designed to put pressure on municipalities to meet their targets. Those targets — that’s a little bit unclear to me as to what those targets are, what that means. To my knowledge, it’s rare that there are targets associated with municipal planning for things like housing.
I think there are certainly some exceptions, and one of them I think is worth shouting out. There are communities around the province, certainly, but when we look at a community like Whistler where…. People could see the evolution of the community, see that if we didn’t have housing targets, if we didn’t have targets for employee housing, we were going to have, at the end of the day, a community that was distorted in some respects. It wasn’t complete. And we can see that in other….
I recognize that a place like Whistler is a bit of an anomaly. It’s a global destination, but there are other examples there. We look at a place like Aspen. It’s a similar type of community, isolated to some degree, and they’ve never had a housing target. Well, they’ve recently accepted and understood that they need to have some housing targets, they need to have a more complete community, they need to have their employees live in the community where they work. Their aspiration is 15 percent of the employees living there. The rest of them drive an hour each way to go to a community down the valley.
If Whistler hadn’t put in place, 30 years ago, a housing policy objective of retaining, of encouraging, of bringing back 70 percent of the employees that work in their community into their community…. If they hadn’t put that objective in place, it would not have happened. We would have had people living in Pemberton, people living in Squamish and commuting back and forth, and Whistler itself wouldn’t be what it is today.
They put in place a housing authority. They worked with developers. They worked with B.C. Housing, albeit not very successfully over the last number of years, for some reason. But they have tried to make a complete community and ensure that the people who work in that community belong to that community. If you don’t live there, it’s hard to belong.
That policy objective is one of the few around the province, I would say, that actually is…. This is what we are trying to achieve on the workforce side. And I think it’s important that we…. I have always encouraged a conversation with the municipalities that I represent or work with to think about these kind of things, because even if….
Right now the North Shore, it’s something like 30 percent of the people who work on the North Shore live on the North Shore. That means that everybody else is moving, so everybody’s travelling. That’s why we have congestion in two directions on the bridges.
That’s why it’s so hard to recruit and retain employees. That’s why it’s important that we think about these kinds of objectives.
I recognize, as well, that Whistler is unique. It’s isolated. It’s a global destination in a unique and wonderful location. It doesn’t really conflict with the other communities around it, whereas if you look to try and create these policy objectives or housing goals, as referred to in this bill….
How do you look at the North Shore like that? You’ve got three, four, five municipalities, if you include Bowen Island and Lions Bay, all evolving individually and differently, all with different access to services, all with different access to infrastructure and transportation. It is complex.
This bill doesn’t really help me understand how we would…. Even something as simple as setting the housing targets. Set a housing target. How do we do that? Well, it’s broken out, to some degree, when we look at the legislation around making a housing target order. This is for a community, I guess, that doesn’t live up to its housing target, which seems to me is going to be a five-year plan. OCPs are supposed to be renewed every five years. If you don’t have a housing target in place right now, how would the minister determine that you haven’t achieved the target?
Then we have to achieve the target. Then we have to give some time to make progress towards the target, or not. I just can’t see how we’re not more…. We’re five years out from beginning to negotiate a discussion about how to make progress, it seems to me.
Even when you look at just the requirement for making a housing order, as I mentioned before. What are we looking at? We’re looking at…. The minister must consider current and previous housing reports, current and previous official OCPs, current and previous regional growth strategies, information in relation to demand for and supply of housing, including statistical information for current and projected populations, statistical information for household income, information about significant economic sectors and information about currently available housing units, housing units that are anticipated and the types of those units. It goes on from there. There are many more sections here.
This strikes me as being somewhat aspirational, as being a very significant time away, as being a bit of flash, and: “Look at what we’ve done.” But really, it’s hard to imagine how this is going to have much of an impact, if any. Certainly not in the short term, certainly not even in the medium term. Potentially, perhaps, in the long term.
Then again, I go back to the North Shore. How does that work? You have five different municipalities with five different circumstances, yet we’re supposed to set targets that grow these communities to try and achieve our 577,000 units before 2030.
This is an interesting bill. It’s something I think we should have been talking about a long time ago. It’s most unfortunate that we are not going to really have a chance to explore the questions I think this bill deserves and this issue deserves and propose various strategies and solutions.
I will just say one more thing. We’ve looked at our experience in this session, even, this fall. We look at pieces of legislation. For example, yesterday we were completing, I think, committee stage on a transportation amendment bill. For some reason, we’ve got two transportation amendment bills this session.
When we looked at that one bill, with 16 sections, which includes the title…. So not a very big bill. Not even with very big sections. Three amendments were proposed and accepted — well, proposed by the minister because he recognized that there were problems with it.
So then we go and look at a bill like this, which is highly complex with lots and lots of moving parts. It needs to effect housing opportunities right across this province that are so important to making people’s lives reasonable: their quality of life, their ability to grow a family, their ability to feel safe. These are all things that need examination, and we’re not going to get that chance.
C. Oakes: I’m glad to be able to stand in the House today and continue discussion on Bill 43.
I’m grateful to have the opportunity, as I am every day, to represent the incredible constituents of Cariboo North. I take that role and I take that responsibility as an elected member of this assembly very serious at all times. I do my absolute best to ensure that legislation that is being brought forward in this House has the ability to have the scrutiny and the ability for us to listen and reach out to the constituents in our ridings.
Today will be a historic day recorded in this B.C. Legislature — historic not in a good way or a celebratory way, but historic in the way of dismantling the rights of members of this Legislature to thoughtfully examine, the ability to understand the consequences of legislation being brought forward and the impact it will have in our ridings as well as to provide a very thoughtful, well-researched ability for questions to be brought forward to this government.
Bill 43, tabled today, has determined to disenfranchise people’s voices from across British Columbia. Look, I come from local government. I’m so proud of that. I’m proud of the experience I had serving in local government, as many members of this House have. I know that many of the members I have talked to know and understand that very unique opportunity to connect on the ground with our constituents. I also understand, as all members who have served in local government do, and have a sense of the challenges, the limitations and the very workforce challenges that exist in communities across British Columbia.
So this bill that is being brought forward — this piece of legislation that, unfortunately, we will not have the ability to examine or provide the necessary oversight on — demonstrates an absolute disconnect. This bill is a complete disconnect of understanding local governments and their abilities and the barriers that they have to implement what the province is saying: “Thou shall now do.”
I also had the great privilege of serving as the minister of local government, and I also had the privilege of serving as the minister for red tape, so I think I have a small sense of some of the challenges that exist within this bill. I feel that there would have been a very…. I would have brought a very thoughtful ability on how we could improve and understand some of the challenges that have been brought forward, to help ensure that housing supply is actually created in this province.
Look, we all come with that basic desire, that knowledge, that understanding that we need more housing in this province. I just don’t think this bill is going to deliver that. This bill is historic, all right, but, unfortunately, I feel a contempt of local governments. Again, it demonstrates the lack of understanding of local governments and of the firewalls that exist.
This bill does not understand the Community Charter. It does not understand the Local Government Act, the challenges that regional districts have with firewalls, the challenges that local governments have. And the message that local governments would deliver to this province is: “Now you are wanting us to get into a space that we just don’t have the resources or the ability or the workforce able to contemplate or to deliver.”
This bill was tabled yesterday. I imagine that if I’d had the ability to get out and talk to local governments and have that very important ability to communicate and consult with and listen to what constituents and local governments are saying about this specific bill and how it is going to ensure that housing supply will be achieved, they would definitely say that, again, the government isn’t understanding local government’s roles, responsibilities and challenges that they have.
Look, this bill is providing nothing more than more bureaucracy and more red tape without understanding the fundamentals of supply. Look, 86 percent of all new jobs created in B.C. over the past two years have been government jobs. In Vancouver, when you start looking at bureaucracy and red tape, regulation and red tape account for 50 percent of the cost of a new home, the worst in British Columbia.
The province is saying, “Let’s put the hammer on local governments. They’re obviously where we need to direct all the attention,” without really clearly understanding that perhaps the direction, perhaps housing supply…. We need to look at the province itself. We need to look at provincial regulations. We need to look at the different ministries within the province and how they’re creating barriers and holding up some of the very necessary requirements needed to move housing supply forward.
I’m going to take a few of my minutes, if I may, to provide perhaps a few suggestions from my experience. The first suggestion I have for this government, and to demonstrate really moving forward to achieve housing supply in the province of British Columbia, is that the first step that this province and this Premier should be taking is to be looking at government.
The government, the new Premier could be putting in a mandate across to all ministers to make sure housing supply is something that is articulated in each of the mandate letters and looking at how each of the ministers could be ensuring that they’re not blocking — creating roadblocks, creating red tape — to ensure that housing supply is moving forward.
Now, some people will be saying: “Well, MLA, how do you suggest that’s going to move housing supply forward?” Let me start with the first one. I haven’t heard the Premier or the government talk about workforce readiness and the fact that in order to create housing supply, you need the workforce to build it. You need the trained, skilled workforce to build the housing in order to provide the supply.
You know where a first step would be and where I’d really encourage the government and where I would be a strong champion? It’s understanding that housing construction needs construction trades — and the critical importance of skills development strategy. Where, from this government, is the workforce development strategy to make sure that we have the skilled workforce to deliver these incredibly important housing projects?
What could the government be doing to help support the post-secondary institutions and skills training? Well, the government continues, month after month after month after month, to be doing a review of funding of post-secondary institutions. But month after month after month after month, action is limited. Ask anyone delivering a trades program across the province of British Columbia. They will identify that they’re challenged with the increased cost of consumable products.
Consider the construction trades programs right now. Consider the fact of the rising cost of lumber in trying to deliver these critically important training programs, these skilled-trades programs, across the province without any additional support from this government. How do you honestly expect that we’re going to see an increase in trades trading without the fact that this government continues to consult and consult and review without actually putting in the critical investments to make sure that we have the tradespeople that we need to build housing supply in the province of British Columbia?
If the government was serious on addressing housing supply, they would understand the need for a housing workforce strategy that ties training as a critical component into the deliverable.
How about looking at the Minister of Education? There is a significant disconnect in British Columbia between the K-to-12 system and our post-secondary education system. The government needs to be doing a far better job on this. The government needs to understand and significantly increase the funds to dual-credit programs and fund trades pathways. You want to increase housing supply and increase people going into the trades? Understand one of the fundamental abilities to do that is ensuring that our young people have access to understanding the great jobs that are out there in the skilled and advanced education fields.
Why did the government cut the shoulder tappers program, a program critical to introducing young people to the opportunities of going into trades? You wonder why our kids aren’t looking at going into trades and making sure that they’re the workforce that are going to build the necessary housing supply? Start looking at where some of the cuts have come from. Start looking at how the government has cut these programs, so critically important to ensuring that our kids understand the great importance and the great job opportunities that exist within the skills development field.
You could go to the Minister of Labour or Finance. They could do a lot in helping to support housing supply when it comes to training and addressing workforce challenges. Look, the federal policy re international students and work permits to take trades training in B.C…. Look, they could be doing a lot of support right now in ensuring that we remove that disconnect between the federal government and the B.C. government.
How about the ministry of community services? Skills training locally is critical, yet we still have significant geographic areas that do not have significant broadband infrastructure. In rural remote Indigenous communities, 60 percent do not have access to much-needed broadband infrastructure.
How does that tie into housing supply, you may ask? Well again, if we need a trained workforce in order to build the supply, we must, in the province of British Columbia, understand the critical need to have a digital transformation strategy for post-secondary education. We need to look at teaching methods. We need to maximize and optimize the hopes and dreams of young people in British Columbia to understand that wherever you are in British Columbia, you can access education, and you can access education and post-secondary education and skills training close to home.
You can start doing that by ensuring that we have investments in the infrastructure and ensuring that broadband infrastructure is available so wherever you live in British Columbia, you can partake in important training so that you can be a part of a solution to the supply of housing in British Columbia. That’s one piece that I would welcome the government to be looking at.
Again, we need to be looking at opportunities to ensure that there is an ability for all British Columbians to understand, to have a social contract, to know where they fit in, in British Columbia. I heard members earlier today talk about: where is the vision? Where is the vision of this government when it comes to housing? Well, I ask a bigger vision. I ask a vision of this government and this Premier to understand where the workers in British Columbia can fit in to providing the necessary solutions to all of the challenges that we face in British Columbia.
Let’s start with the workforce strategy. We’ve been waiting for the Future Ready report to become…. I think it was announced in the spring. Where’s that report? Look, if we can start tying the challenges that we have….
If we can identify where the labour market challenges are in our communities, if we can start identifying where we need skilled tradespeople, we can start investing in the training necessary to produce the necessary workforce to ensure that we have a housing supply. This would be a great place to start.
As I look to close — because I know that for myself, we are in a tremendously unfortunate situation in this legislation, one that I have not been in before — I would welcome the opportunity to go in committee and to utilize the experience that I’ve had to help make this a better bill that will actually produce supply of housing for British Columbians, something that I know all members of this House want. We understand the need in each of our communities, whether it’s Cariboo North or whether it’s in an urban area.
I close with a significant heavy heart, of the disregard, the fact that we’re bypassing such important tools that could actually make sure that we’re delivering real progress and providing real solutions and providing legislation that doesn’t disenfranchise people but makes sure that the bills that we’re debating here in the House actually deliver real outcomes for British Columbians.
B. Stewart: I’m glad to have the opportunity to speak to Bill 43, the Housing Supply Act.
Having looked through the bill, I do honestly believe that there’s some effort to address certain things. But when I look at this, and I think about being in business and looking at how to build something up and stuff like that…. The whole problem — where did it come from? How did we get to the point we’re at today? What is the problem that’s causing that?
We heard numbers from the member for West Vancouver–Sea to Sky. When he was born, the province was two million. When his kids were born, it was four million. Now it’s 5½ million. It continues to grow.
One of the things that we are going to inevitably face is that we have to welcome in more immigrants, more migrants, etc. If we had even a population base that was growing, we’d still need to have this.
So where is the problem coming from? The part that I see in this particular piece of legislation on a broad basis is that it attempts to try to solve the problem by having rules and audits or advisers and roles around the municipalities about what it is that they should be doing. We’re going to select a small number of municipalities. I believe that it was mentioned yesterday when this was introduced: eight to ten municipalities that are not yet named. I think about…. There are 161 municipalities, 27 regional districts in the province.
This is really a starting point. This is putting all of the problem onto the municipalities, that they have been the problem in terms of…. Forget about affordability, because that is another thing that the province has accountability on. But when it comes to the real supply issue, is the problem the municipalities?
I look at it, and I think: “Well, what about the province?” I live in a community that’s just under 200,000 people. It’s the fastest-growing community urban area in Canada. I know that one of the things that the city of Kelowna has been frustrated by is the fact that the approval process, or getting approvals from the province, is a two-year process in many cases.
Did you know that 800 metres from the centre line on the highway on either side is the required area that cities have to consult before they can give approval? They have firsthand experience with that recently, with the relocation of an existing business — Costco. You probably know who that is. They wanted to relocate. What it required…. Of course, there are new turning lanes and things like that.
But at the end of the day, what I see in this is a lot of the bureaucracy and the rules. It’s fine to have rules. But this is not a new process. The Community Charter has been around for over 20 years and has been updated. The Vancouver Charter. Where’s the responsibility for the province in this? What’s the province going to do? What’s the accountability to make the Ministry of Environment, Ministry of Transportation, the other ministries that weigh in on different issues, etc. — to make certain that they meet the approval process?
What about the Agricultural Land Commission? That’s probably one of the biggest constraints we have in the province. I know that it was talked about. It’s warmly thought of by many people, but it is a constraint. It’s one of the things that puts British Columbia…. It differentiates us, but it also makes us hugely inefficient in terms of being able to get transit.
I don’t disagree, but when it comes to Langley and Surrey and Abbotsford and even the Okanagan, we need to have transportation that meets the need that…. Because of the fact that the agricultural land doesn’t generate the revenue stream that in an urban setting…. You know, take any other city and how we can do that….
But I think at the end of the day, I do worry about some of the things… The member for Cariboo North talked passionately about training. Well, where is it that…? How are we going to speed the process up? We already know that there’s a shortage of tradespeople. It takes years of bringing people along, let alone laborers, to a journeyman kind of status. Where are we going to get those people? Where are we going to house them if we import them? We have to come up with a plan that is much broader about what our end objective is. What’s the target? It’s like a business. I would like to sell or grow or build this much, etc.
We hear all sorts about the costs. You know, the costs are an issue around affordability. We could affect that, but it’s not mentioned in Bill 43 whatsoever. I think that although the aspirational goals of Bill 43 are really aspirational, if we don’t bring these other things in and look at the challenges — labour, the fact that we have to deal with the municipal taxation rates….
Mr. Speaker, you’re in an area where before you even break ground on a single family home, you’ve got costs of over $600,000 in just local costs. And that’s the affordability. Certainly, that’s a barrier. We’ve heard lots about the lack of affordability, but at the end of the day, how do we solve that? We don’t solve it with one piece of legislation. It has to be a comprehensive, collaborative piece of work.
I would encourage the Minister of Housing to take that on with his colleagues to make certain that we can bring this to a head and make certain that his colleagues realize their responsibility. Secondly, we also…. They realize that we have a bigger job to do. I know that the Minister of Municipal Affairs has the PNP program, but what about the federal government’s recent announcement of wanting to allow immigration of up to a half a million people per year? Which I think is wonderful, but I don’t know where we’re going to place all these people….
I really do think that the collaborative approach needs to be done. I do think that the Kelowna-Mission MLA mentioned the Seattle example. I think that the Seattle example is something that we have to look at it. On a temporary basis, we maybe have to remove barriers — the roadblocks to getting things done, whether it’s in a specific area like she mentioned. But the situation is that we have to be able to action, get results. There’s nothing about measurables, results, in here. Talks about that the municipalities are the problem in this particular case.
I’ve read through the sections, etc., and what I see is a large amount of extra cost. I see bureaucracy. I see advisers advising, measuring the performance of municipalities that are yet to be named. Then I see the fact is that they carry no liability for whatever they say or do. I mean, I understand that there’s a reason for some of these things, but at the end of the day, the rule-based system is not going to expediate and get us to that point of the hundreds of thousands of houses that we really need on a ten-year basis. We really have to make complete changes to the way that we’re looking at that.
I do think that the municipalities…. Although they’re part of the solution, I don’t think they’re the enemy. I think, in this particular case, they’re singled out and identified as being the group that needs to get their ducks in order, etc.
Deputy Speaker: Thank you, Member.
B. Stewart: As I mentioned…
Deputy Speaker: Sorry, Member.
B. Stewart: …the province has a responsibility to make certain it gets its ducks in order as well.
Deputy Speaker: Thank you, Member.
Pursuant to the time allocation order adopted by the House earlier today, I do have to invite the member to take his seat and must now put the question on second reading, Bill 43, the Housing Supply Act.
Division has been called.
[Mr. Speaker in the chair.]
Second reading of Bill 43 approved on the following division:
YEAS — 53 | ||
Alexis | Babchuk | Bailey |
Bains | Beare | Begg |
Brar | Chandra Herbert | Chant |
Chen | Chow | Conroy |
Coulter | Cullen | Dean |
D’Eith | Dix | Donnelly |
Dykeman | Eby | Elmore |
Farnworth | Fleming | Furstenau |
Glumac | Greene | Heyman |
Kahlon | Kang | Leonard |
Lore | Ma | Malcolmson |
Mercier | Olsen | Osborne |
Paddon | Popham | Ralston |
Rankin | Rice | Robinson |
Routledge | Russell | Sandhu |
Sharma | Simons | Sims |
A. Singh | R. Singh | Starchuk |
Walker |
| Yao |
NAYS — 26 | ||
Ashton | Banman | Bernier |
Bond | Clovechok | Davies |
de Jong | Doerkson | Halford |
Kirkpatrick | Kyllo | Lee |
Letnick | Merrifield | Milobar |
Morris | Oakes | Paton |
Ross | Shypitka | Stewart |
Stone | Sturdy | Sturko |
Tegart |
| Wat |
Hon. M. Rankin: I move that the bill be committed to a Committee of the Whole to be considered at the next sitting of the House after today.
Bill 43, Housing Supply Act, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. M. Farnworth: I call Bill 44, second reading.
[J. Tegart in the chair.]
BILL 44 — BUILDING AND STRATA
STATUTES AMENDMENT ACT,
2022
Hon. M. Rankin: I move that the bill now be read a second time.
This bill will amend the Strata Property Act to expand housing options for British Columbians. Strata housing is a key housing sector in our province, with approximately 1.5 million strata residents across B.C. Currently the Strata Property Act permits strata corporations to have strata bylaws that prohibit owners from renting their units out and that limit the age of strata occupants. These restrictions can exacerbate challenges faced by owners, renters and buyers in a challenging housing market.
This bill will make two key amendments to the Strata Property Act to expand strata housing options. First, this bill will limit the ability of strata corporations to enact most age-restriction bylaws. Age restrictions in a tight rental market make it difficult for families to find homes and force people to move if they decide to have children. Age-restriction bylaws with a minimum age of 55 years of age or older will still be permitted, subject to an exemption for live-in caregivers.
Second, this bill will remove the ability of strata corporations to enact rental-restriction bylaws. This amendment aligns with recommendation 9 from the 2018 Rental Housing Task Force, which was a recommendation to ban rental restrictions in stratas. By removing rental bans from all strata buildings, there will be more condos and townhouses available to rent in urban areas.
In addition, this bill will amend the Strata Property Act to allow all strata corporations in B.C. to conduct annual and special general meetings by telephone or other electronic means on a permanent basis. The amendment to strata legislation will ensure that all stratas in British Columbia will continue to have the option to conduct annual and special general meetings by electronic means.
Finally, the bill will amend the Building Officials’ Association Act to enable the Building Officials Association of B.C. to introduce bylaws for the continuation of electronic meetings, helping to ensure that building officials may continue to participate in members meetings by electronic means.
This bill is an important step toward expanding housing options for owners and renters in British Columbia.
M. Bernier: I appreciate the opportunity to stand up and speak to Bill 44. We know about the affordability crisis that we have right now in the province of British Columbia when it comes to housing.
I don’t want to get into, maybe, the full commentary that we had earlier on about being restricted in our time allotment when it comes to speaking to these bills, especially when the minister and the Premier talk about the importance of the bills. One of the problems about supporting it after second reading, no different than the last bill, is there might be merits in some of this.
But when the government is shutting us down, and we don’t have the time to scrutinize and hold the government accountable and actually get into the proper debate that we typically see in this House when it comes to bills, it’s very hard to support the bills moving forward through second reading right away without giving us that democratic process that we are obligated, I would say, to follow through with as members of this House.
One of the main issues when we look at Bill 44 — and I’ll get into some of the details maybe around the bill and the strata statutes that this government is looking at changing — is about the unintended consequences. I’m going to read out some commentary that I’ve heard from a lot of different people, and I know this is not just me as the critic. I know members in government have been getting the same emails and concerns because I’ve been cc’d on them. I’ll get to some of those in detail a little bit later on in my commentary.
But it’s important, again, that we should have been given ample time to bring those concerns forward. What I fear is that we’re also going to be shutdown at committee stage, because we’re running out of time since the fact that this government cancelled four sitting days last week. So we’re not going to have as much time in committee stage on what this government is saying are important bills that they brought in at the 11th hour of this session.
We’re going to do our best in the short period of time that we’ve been given to try to at least address some of these concerns.
When you look at Bill 44, it’s definitely making changes to the Strata Property Act. Some of them are straightforward. Some of them I can support and make sense. But they’re wrapped into a lot of changes that, on face value, we’re hearing have a lot of…. There are a lot of struggles, a lot of problems with the way this government has put it out and a lack of data to support the decisions that they’re making.
Removing age requirements, for instance. You know, there could be some merits to that in a lot of circumstances. Lifting the 19-plus age restriction — obviously, in some circumstances, that’s very important because nobody should be kicked out of a unit that they own and be forced to move just because they chose to start a family as a young couple. So there are definitely some nuances here that need to be explored, considered and changes possibly made.
But I know for a big portion of this bill, we need to reserve judgment. We need to wait, because we just don’t know, with the limited information that this new Premier put forward on this, what the unintended consequences are going to be.
As I mentioned, we’ve been hearing from people right across the province that have concerns with this piece of legislation, especially in the larger areas where there are lots of strata complexes, whether in Victoria, Vancouver, Richmond. I’ve been hearing a lot from people in Surrey that are concerned with this. Even up into parts of Kelowna and Vernon, there’s a lot of concern. I’ll get into some of the reasons why in a moment.
What’s interesting, though, when we get into this specific bill…. Maybe I’ll actually talk about some of those specific points before I get into some of the commentary that people are concerned about.
Again, it’s very vague. Some of the questions we’re going to have when we look at….The bill is changing, basically, two acts: the Building Officials’ Association Act and the Strata Property Act. Again, some of the changes, at quick glance, could make sense. They’re making changes in this bill to allow for virtual meetings, for people to vote for strata council meetings virtually if they’re unable to attend. In today’s world, that could have some merits to allow strata owners to partake if they’re not available for a strata council meeting.
One of the things that I’m hearing right now is the amount of emergency strata meetings around the province with the presentation of this bill this week in the House because of those unknowns and the concerns that people have. But one of the changes in the bill, obviously, is that “the strata corporation must not pass a bylaw that restricts the age of persons who may reside in a strata lot except as permitted by subsection (2).” Subsection (2) says the strata corporation “may pass a bylaw that requires one or more persons residing in a strata” to be not less than 55 years old.
The government says they put this in to allow for strata complexes that cater to seniors to be exempt from this age qualifier. My question, though…. And I’m already hearing this from a lot of different stratas around the province. They’re saying if this bill passes, one of the first motions they’re going to make at a strata meeting is to now restrict the age of people in their strata to 55 or older and then maybe just grandfathering those that are under 55.
What it’s, in essence, done is completely backfired on what this government is saying that they’re trying to implement, unless the minister tells us at committee stage that they’re going to now say “No, no. The way that’s being read is that’s only existing,” and that they’re not going to allow people to quantify, going forward, that stratas are only 55 or older.
This is what I mean by unintended consequences. They could be setting it up now where more stratas around the province are going to cater to seniors only, taking younger adults and couples out of the opportunity to even rent.
Then you look at this one here in section 141. This is one of the concerns we’re hearing. Listen to this one carefully: “The strata corporation must not screen tenants….” Of course, this is following after where it says that they have to allow rentals. So strata corporations are going to be told, “You have to allow people to rent in there now,” but strata corporations cannot screen the tenants. Strata corporations cannot establish screening criteria. Strata corporations must not require an approval of tenants. Strata corporations must not require the insertion of terms in tenancy agreements. Strata corporations must not otherwise restrict any rental of a strata lot.
The reason why that is raising a lot of concerns is you’re completely taking away the role and responsibility of strata councils and those that choose strata ownership.
Now, I think it’s important to highlight that there are around 30,000 strata corporations in the province of British Columbia, and the suite of those is so different. There are some stratas that could be two or three units, where people have bought maybe a house that’s been divided into three suites. It’s now strata’d to ensure that the responsibility of the three individual owners of that house continue to maintain that property. In fact, they purchased that knowing that those were the regulations and rules within that strata.
This government is once again taking away people’s rights. They are now interjecting themselves into people’s personal lives on decisions on home ownership or not. The reason why I say that, when we look at some of the stats on this, which I’ll talk about, is how many people were fortunate enough and purchased a strata unit, whether it’s a condo or a duplex or part of an apartment, row housing, whatever it might be?
But they purchased it knowing the rules of the time. They purchased that property knowing whether it allowed rentals already or it didn’t, whether it had age restrictions or it didn’t, whether it allowed pets or it didn’t. People made personal life decisions based on that.
Now this government is walking into their bedrooms and their living rooms and telling them: “I’m sorry. You made” — what this government even continually says — “the largest investment and the largest decision in your life by purchasing a property.” But now they’re going in and saying: “By the way, we are now going to undermine the decision you made. We’re going to unilaterally insert ourselves and change the decisions that stratas have put in place.”
Now, the reason why that’s important is the amount of emails I’ve been getting from people who have owned properties for 15, 20, 25 years, in an ownership situation, in a strata that has not allowed rentals. The property pricing and strata rules are based on that.
The main concern…. It will be interesting, at committee stage, if the minister will go on the record and say this. What if the value of that property now changes? I’ll talk about the rental stuff in a moment. But imagine if you now are told: “We are sorry. There are 20 people that live in your unit, but because we’re now allowing rentals, there are going to be struggles and changes within that complex.”
Right or wrong, on the intention of this government, they are going to possibly affect the cost of that property, which could be negative to an owner or a huge increase for a renter. Again, unintended consequences that we’re going to have to try to discuss.
I guess my big comment is if we’re really trying to help people, if we’re really trying to help renters, where’s the $2,000 renters rebate? It’s no longer a $400 renters rebate. It’s been promised for five years. We’ve seen how this government wants to…. For their pay increase, everything is retroactive. My assumption is they’re going to treat the people of British Columbia the same way. So they owe them $2,000 on a renters rebate now. When are they getting that?
They keep doubling down every election, saying it’s going to happen. So that’s my assumption. I assume they’re budgeting somewhere. The now Premier keeps saying they’re working on it.
I know there are a lot of people that have got a hold of me and our side of the House saying: “Where’s my $2,000 they owe me? And counting. It’s soon to be $2,400 that they owe me.”
When the minister and the Premier put this bill forward, one of the things that they spoke about was trying to increase rental stock. No argument on this side of the House. Where the argument is…. They’ve got no proof, no statistical data, that says that this will do anything to help the rental stock in British Columbia.
In fact, the minister and the Premier, during the announcement, even said that there are about 900,000 — so we’ll say almost one million — strata units in British Columbia. A good portion of those already allow rentals or don’t. There are rules in place for that.
The government, by their own admission, has said that out of those 900,000 strata units, there are only — remember that, out of 900,000 — 2,900 units where people applied for the speculation and vacancy tax, through the application, and had to pay the tax because they were not able to say that they lived in it more than six months.
Somehow this government is saying that by the passage of this bill, there are instantly going to be 2,900 more rental units out there. Well, I think anybody in the logical world will know that that’s not true. In fact, many, many of those 2,900 units are cottages, small little lake houses that might be in the Kelowna area or just parts of Vancouver that could be a second suite that people have for a family vacation.
Actually, we know there are many of the NDP members that own those too. Conveniently, most of those are not in areas that are subject to the speculation and vacancy tax, mind you, which is another area for conversation and debate, probably at a later date.
But those that are, do you really think…? Like the one that came to me: a retired, widowed individual up in the Kelowna area who has a lakefront home that the family has owned for 50 years that they now have to pay a speculation and vacancy tax on. That’s one of these 2,900 that the government thinks is automatically going to be now in the rental pool. Do you really think that’s going to happen?
Do you really think that the majority of people that pay the speculation and vacancy tax from Vancouver, Victoria, that are snowbirds, that are fortunate enough to spend a whole bunch of time down south, who come back home for four or five months of the year…? Do you really think, especially with all of the challenges that we’ve seen with the landlord tenancy branch that this government has failed to address…? Do you really think that they’re going to put theirs out for rent for the four, five or six months and then have to evict people when they’re back home and then rent it out again?
Of course not. It’s not appropriate, it’s not logical, yet this government thinks that’s what’s going to happen. It’s not.
If they really want to deal with the issue, then maybe they should be delivering on their promise of actually building 114,000 affordable units. Maybe they should be delivering on their promises of trying to cut some of that red tape and taxes rather than increasing them and making it harder for the private sector to build properties.
I think it’s important, some of the commentary that I have here to read into the record. We have, for instance, the Condominium Home Owners Association of British Columbia, who have sent this out to myself and, I know, to most NDP members as well. It is interesting, as I read through a lot of these emails that went to NDP members that have then come to me as the housing critic….
They’ve come to me saying: “We’re very disappointed that our NDP member has failed to respond to our concerns. We’re sending this to you as the housing critic, since they’re not responding.” That raises some red flags and concerns for me, because I thought the whole point, when we’re in this House, whether you agree or disagree, is to respect your constituents and respond to them. But I’ll leave that for the NDP members to justify to their constituents and voters of why they ignore them on these important issues. Maybe why that is, is because this is of grave consequences and impacts to some individuals.
Again, just shy of one million people live in stratas that are going to be affected. So the condominium Home Owners Association of British Columbia…. I think it’s important to read into the record some of the…. I could have almost used this as my speech, because it’s very detailed and, I think, important documentation to highlight for this House.
Again, 34,000 strata corporations with over 900,000 units in British Columbia. Over 75 percent of the strata corporations are actually small and under 50 units. Over 95 percent of those communities are self-managed. By self-managed, it means the people who live in that strata have volunteered their time, put their name on the strata board, said that they will work hard to help put rules, regulations and oversee that facility, to ensure that it’s a nice place for them and other families and people to live in.
Since 2010, owner-developers have filed a Form J: rental disclosure of new properties that exempts rental bylaw applications. We have to remember that changes were already brought in by us, when we were in government, for future properties being built that have to already allow for rental properties and rental numbers within a strata corporation.
We have to remember that this bill is addressing properties that were built prior to 2010, which means people have owned these for many, many years. By the exemptions that the government has put forward, approximately 300,000 units, say, will be affected that have been constructed within that period. Most have 99-year criteria built on them. That’s allowable for rentals.
The majority of strata units are in metropolitan areas. I think we can all agree to that. I know smaller communities have smaller co-ops and smaller, little stratas as well, but here’s where I think it’s really important to highlight some of the facts that they’ve put forward, which are 100 percent accurate. It’s backed up by studies that this government itself has done. Interestingly, some of these studies weren’t released early on a Saturday morning, to hide. They actually put them out Monday or Tuesday but still don’t seem to want to talk about them.
The greatest vacancy rate is within buildings constructed since 2010. Now, that’s an important distinction. The vacancy rates are actually higher in places that allow rental units already. They’re not in stratas that are ownership. That’s not where the vacancy issues are. They’re actually in places that already allow rentals.
Reading through this, properties that didn’t allow rentals, with rental bylaws, have a vacancy rate of zero to 4 percent, where those built since 2010 that allow rentals have anywhere between a 20 and 31 percent vacancy rate. Yet this government thinks that putting in rules, to tell all stratas that they have to allow rentals, will fix the problem.
Here’s the issue, again, as I get into some more of the data here that they have. Just because you allow it, where are these people going or coming from? By that, I mean if you’ve got a strata unit that, right now, has 20 units in it, and all 20 units are full, they’re all owners. They all live in there, they’re all happy living there, but now there’s a rule that says you’re allowed to rent.
According to this government, everybody that owns is, I’m assuming, going to now sell their properties, go who knows where and rent them out. That’s supposed to magically fix the rental issue, and it’s not. So again, this is very misleading on how this government thinks that this is going to work.
Interjection.
M. Bernier: The member is saying they’re empty, yet I just read out stats from his own government. His own government released the stats that said that zero to 4 percent are empty. He might want to listen to all my commentary, because I’m reading out his own numbers: zero to 4 percent are empty, not all of them — zero to 4 percent. The ones that are empty are the ones that already allow for rentals, and they’re struggling to fill those. Why are they struggling? It’s because the rents are so bloody high under this government.
By putting in this regulation, what I’m hearing from the strata councils, from the CHOA and from others is, again, the unintended consequences. What’s going to happen? Well, insurance rates go up. We’ve already seen the highest insurance rates ever for these stratas. One of the ones, for instance, that got hold of me, from Surrey, said: “We already pay $235,000 a year for strata insurance. We contacted our insurer because right now, it’s an owner-only complex.” Owner-only comes with certain parameters of risks and liabilities that insurance companies know.
This group in Surrey said that they phoned their insurance provider, who told them that if their strata rules changed, they could see an increase of almost 75 percent to their insurance liabilities and deductibles by changing it to allow rentals.
Now, I’m not saying that allowing rentals, in some circumstances, is wrong. What I’m saying is that this government is not talking about the unintended consequences and costs. Now, if it’s a place that’s going to allow rentals, what’s it going to do? This is going to bring in our speculators. That’s what this is going to do.
This is not our young families who are going to go out there, and all of a sudden, Ma and Pa Kettle, who have lived over here for 30 years, are going to move out, magically, to who knows where, rent out their place to a young family, and say: “Yay. There’s a rental place.” But guess what. They can’t afford it, because the insurance rates have gone up so much, and the deductible rates have gone up so much, which means the strata fees have gone up so much.
The only people that are going to be able to afford these units are now investors and speculators who are going to buy up suites of rental units, increase the rent costs and try to find people that can afford them — again, unintended consequences.
This government, I would say, is trying to hide from the fact of their failure, overall, of all these years of not bringing on the supply to meet that demand, but they’re bringing forward a tool that almost every single person I’ve talked to has said is not going to work. “The intention of getting more available units has merit, but this is the wrong approach,” most are highlighting.
The other issue, which I won’t have a lot of time to get into huge detail on but maybe others will talk about, though, is on the struggles around the residential tenancy branch. People are telling me that they would actually stop renting and want to sell their property because of the struggles with the residential tenancy branch. You’re talking a one-year to 18-month wait just to have a hearing, when there’s a struggle right now with a tenant — or, possibly, a landlord, for that matter.
These are struggles that a lot of people don’t want to get into, which is why, in a lot of areas, we’re seeing fewer and fewer rental facilities being built. This is too bad, because we all, in this House — I’m not saying we don’t need them; of course, we need them — need to have the right tools. We need to have the right approach, to make sure that we’re building the right supply for what’s out there. Instead, this government, it appears, wants to target homeowners and strata people.
What’s next? They’re interfering, in a lot of ways, with people’s life decisions — people who chose to own. I know this government has a really hard time with people owning properties — of course, unless it’s themselves owning multiple units. They seem to be against people owning properties and only want to go to rental.
Again, we need to have a mixture, but the way this government wants to intrude into people’s personal lives, I’m thinking the next thing is going to be an empty-bedroom tax. If you own a house and your kids have now grown up…. I think a member of the Green Party just nodded and thinks it might be a good idea. I’m not sure.
So you own a house, and a couple of your kids have moved out. They’ve gone to university. If you have an empty couple of rooms, the way this government looks at it now is that they’re going to come into your house and say: “You have to now rent out your bedroom, or we’re going to charge you an empty-bedroom tax.” Now I am being a little cynical; I acknowledge that. The whole point is the intrusion that we see from this government.
If they want to put something forward and grandfather, that’s one thing. I’d be curious — we’ll find out in committee stage — what kind of consultation they did with the 900,000 strata owners in the province of British Columbia. The minister had no problem to say: “We consulted with First Nations on this.” Interestingly though, in the bill, it says it doesn’t apply to First Nations or First Nations land — and no different than the last bill as well. We’re talking about freehold, non–First Nations land. I’m curious where the consultation to those people was as well.
As I said, it’s unfortunate the way this bill was presented, where there are parts of it that have merit. There are parts of it that we could look at supporting, but without the adequate time to really discuss it, without the adequate time to debate it because of closure that we’ve seen brought in — four bills today that this government has brought closure on for second reading — that democratic process is really being undermined.
I’ll end by apologizing to the hundreds and hundreds of people who have emailed me, who have asked me to bring their issues forward during second reading debate. I have to apologize to them and say: “We’re not going to have time to do that.” I sure hope that they reach out to their NDP members who have not responded to them. Hopefully, they’ll get a response.
H. Yao: I want to take a moment to just express my support for Bill 44.
Before I start, I just want to piggyback off some of the comments made by the member for Peace River South. Like he said, the bill came out on Monday morning at 10 a.m., and today is only Tuesday right now.
If any of our Richmond constituents emailed you, please forward to my office.
I do apologize that we didn’t respond in a timely manner. We will respond as quickly as we can. I do know that some of my constituents did text me, and I have been communicating with them through text. I know he has received hundreds of those email complaints, and as a good MLA from Richmond, I would love to be able to respond to their needs. Obviously, 24 hours might be a bit short, but I will do my best to be supportive.
The second thing I want to talk about is the…. We talk about stratas being authorized to provide attendance for voting with electronic devices. I do know…. Personally, I live in a strata unit as well. It has been difficult sometimes to be able to coordinate with different units and to be able to meet at the same time.
I think being able to have…. Electronic devices allow us to look after child care. They allow us to have family time. They allow us to be able to say…. Instead of us being able to finish dinner quickly, wrap up and quickly head to a meeting room, we could, actually, spend a little extra time with our families, set up our devices and join the strata meeting. I appreciate that it will also increase our democratic engagement rate within the strata council and within our membership as well. I do want to take a moment to say that.
I would definitely support something like that. It has been super helpful during this pandemic. Being able to see it continue after the pandemic…. It’s definitely an asset to both the strata and to the units of the strata owners — for us to really be a part of the decision-making process and to really be a part of the democratic process as well.
I know we talked about Bill 44 removing rental restrictions. I think it’s one of the things that I’m very excited about. I do know…. I actually went from multiple units where I had lived in, moving from one unit to another unit. I think once there was a reminder I received….
We’d often end up going to a strata unit where there was a rental restriction. Some people might even rent out in a way that’s sort of behind the table, with cash, in a sort of false and, unfortunately, a negative economic activity. Sometimes we do also have units left empty. They were just sitting there, waiting for their turn to put a unit into a potential rental opportunity.
I, too, am a strong believer that by removing the rental restriction for a strata, we will increase the number of units that are available for the community. Of course, it is not a solution or a silver bullet to the big housing crisis we’re dealing with, but it is one of a multi-pronged approach that we are utilizing to really engage and support our constituents and support British Columbians as we continue to find different ways to increase the number of available housing units and to allow people to actually have somewhere they can rent and somewhere they can actually call a home too.
I know the member for Peace River South also made a comment about…. Vacancies tend to be more of an issue with places where rentals are allowed. I, obviously, understand…. If you’re not allowed to have rentals, there will be a vacancy issue. That’s pretty straightforward logic.
I think one of the key factors here is…. Even with rentals allowed, I think…. A lot of stratas in Richmond and a lot of stratas in the Lower Mainland area still have a fairly low vacancy rate. That’s one of the reasons why we’re doing this. We’re really looking for ways to increase the potential stock in the community as well.
I would like to share a personal story talking about the age restriction. I will keep my comments short, I promise. I do remember…. My wife and I were…. Obviously, we were married for quite a while. For the first ten years, my wife, personally, was not ready to have kids. We were enjoying our dual income with no kids lifestyle for quite a while. We actually went to check out different units. We were about to upgrade our place to a two-bedroom apartment.
We actually found a lovely place. It was central. It was by transit. It was beautiful, even though it was a bit old. It was a beautifully renovated building. There’s something charming about an older unit. There are bigger bedrooms, bigger living rooms and bigger bathrooms, which allow us to feel more spacious. My wife and I really fell in love with that unit. Unfortunately, when we were talking to the realtor…. One thing we learned very, very quickly was that there was an age restriction of 19 plus on the whole complex.
I know my wife. I respect my wife. I was not worried about having kids at that time and respected her position. The sun went down in my heart. I didn’t want to automatically deny myself an opportunity to have kids. I think my wife shared a similar sentiment. We ended up having to say no to that unit. It was a very heartbreaking moment for me to move on from.
By looking at the circumstances and by looking at these age restrictions…. I really wished, at that moment, at that time, we were able to purchase that unit — a large, nice, two-bedroom unit — compared to the…. We ended up purchasing a one-bedroom unit somewhere in the Dover area, in Richmond.
Like I said before, I won’t take up too much time on this. I do want to say that Bill 44…. If it came up earlier, maybe five years earlier, a lot of the journey I took, a lot of the journey my family took and a lot of the journeys my friends took would be completely different.
I do believe it is a strong opportunity for us to provide a multi-pronged approach to address the housing crisis. It is definitely not a silver bullet. I think any one of us understands that. I do believe that by working together, under the Minister of Housing’s support and his leadership, we’re able to truly take a concrete step forward and help British Columbia address the affordability and housing crisis.
A. Olsen: I’m pleased to rise to speak to Bill 44, the Building and Strata Statutes Amendment Act.
Every day we hear from our constituents, from all corners of the province, stories about the impact of the housing crisis, from young people forced to leave the province to businesses who are struggling to pay rent and attract workers due to the costs of housing. It’s not healthy for our economy, and it’s not healthy for our communities. Our communities should be places where people of all ages and walks of life can thrive.
Removing age and rental restrictions from strata corporations is a small step that this government is taking, but it’s not an uncontroversial one, I should point out. As the member from Richmond just mentioned, it’s only been less than 24 hours, but we have heard from our constituents from across the province about the potential impacts that this change that the government is making may have.
My concern is that there’s no real method for measurement in this bill. No planned review to see if the changes that have been made are effective or if the outcomes that the government expects to happen are actually being achieved.
Removing age and rental restrictions was one of those recommendations that was made by the 2018 Rental Housing Task Force. It was a bipartisan working group that was created by the former Minister responsible for Housing. It was, as that report was tabled, one of the more controversial pieces that we heard about, even though it did not show up in the former Minister of Housing’s 30-point action plan to address the housing crisis, the housing crisis that we are still addressing here today.
This government clearly needs to articulate a vision for housing in this province. I spoke to this in the previous bill earlier today. We’re in this race to get through this legislative agenda. We’re speeding through important housing policy, including changes to the Strata Act that have had a tremendous response from people, a mixed response from people. People are challenged with this piece of policy, yet it shows up at the end of this legislative agenda that is in full speed ahead movement for this debate today.
Much of this new legislation is not straightforward, and it’s unclear how it will impact my constituents and people across the province. That’s the reason why I wanted to stand here today and acknowledge the fact that this bill is on the table and that we are going to be doing the best we can to get some of the questions that have been asked out loud in the second reading stage of this debate answered.
Actually, this change might be part of solutions to housing. In fact, it ended up on that report because we agreed that it was potentially a solution. However, there are nuances and potential adverse impacts that could happen, and it’s important that we have the opportunity to be able to canvass that.
[S. Chandra Herbert in the chair.]
I have questions about what will happen to the units and stratas that become available for rent. How many units will be added to the rental market? Clearly, the Minister of Housing must have done some of this analysis work. It’s possible that new strata rules that are contained in this bill could drive up the cost of housing — has the analysis been done on that? — resulting from, maybe, some increased speculation and corporate investment. What kind of safeguards are being put in place to ensure that that doesn’t happen? How will the province ensure that REITs, or real estate investment trusts, don’t prey upon these units and strata complexes for them to be corporatized?
The greatest loss of rental units identified in the past ten years is attributed to short-term accommodation, short-term vacation rentals. It’s time that we, as a government, take a much more serious look at that than we have. This legislation does not deal with short-term vacation rentals.
This legislation potentially also impacts volunteer-run strata boards, who will now act as de facto landlords. This legislation will ultimately download the workload of management of tenants, the tenant relationships, onto volunteers. I wonder how the government has considered and accounted for this. Perhaps there is a plan in place, and if there is, that’s great. It would be important for us to be able to understand that. There is limited data on how many units this change will make available — no plans to review the legislation in the future.
Another issue that needs to be addressed is that there is no method of measurement and no planned review to see if these changes are as effective as the government hopes that they will be. I’d like to see a commitment from the government that data will be collected and a review of these legislative changes within a transparent timeline.
I understand that many strata corporations are concerned about the impacts of these changes. Indeed, I’ve had constituents emailing me about this ever since that 2018 report, well before the new Premier floated these ideas in the leadership event that just ended. So I think it’s important that we are clear to our constituents and to the 900,000 people who occupy the 900,000 units that are within stratas. But we are in a housing crisis, and it is good to see that changes are being made to account for concerns of stratas, such as allowing them to apply to the residential tenancy branch for dispute resolution.
While I welcome the changes and the opportunities to address the housing crisis, this government cannot expect to solve the problems with the same thinking and approaches that created them. We need to meet the needs of a public crisis. Tabling this legislation at the last minute and stifling democratic debate is not a good way to hear the concerns and meet the needs of the public.
Thank you for this opportunity to speak to this bill.
HÍSW̱ḴE SIÁM.
L. Doerkson: Thank you for the opportunity to join in a shortened version of debate this afternoon on Bill 44, the Building and Strata Statutes Amendment Act of 2022.
Mr. Speaker, as you know, I’ve presented to you many times. I am always proud to stand in this room and represent my constituents of Cariboo-Chilcotin, and it always gives me pleasure and pride to speak to the bills that are before this House. I take almost every opportunity that I can to speak, because oftentimes, my constituents are quite vocal. They have been vocal on Bill 44 and certainly Bill 36. I think there have been many people that have been vocal this past week.
Certainly, it’s been an interesting day here today. As a new member to this Legislature — or newer member, only two years — I’m frankly a little bit shocked that we find ourselves with such little time to debate some of these bills.
As somebody that is active, certainly, in my caucus…. As part of the team that helps to put up speakers, I can assure you that there were many people that wanted to speak, not only to this bill, but certainly others as well. They’re not going to be afforded those chances.
Today, for the people that have spoken, we’ve heard terms like “unintended consequences.” We’ve heard the member for Peace River South refer to people paying $235,000 in strata insurance and having questions about that. We just heard from a member from the Green Party, who has suggested that…. His questions were pretty much asked as to a committee stage that we are not sure whether or not we’ll actually have on Bill 44. I think there is a lot of concern about the limited amount of time to discuss these bills.
This bill in particular, I think, has been referred to as historic a couple of times. I think we’ve had one member from the government speak today with respect to Bill 44. I’m shocked at that also, for such an important bill and one that has been referred to as historic.
I am proud to stand here and offer some comments on Bill 44, but they certainly come with some questions in my mind as to why so many won’t be able to offer up that information. As I said before, I think there are often little tidbits in presentations in this room that are important to be heard. I think it improves the legislation. It would improve Bill 44. This is an important topic. It’s an important bill. Certainly we know…. I don’t think there’s any debate in this room that there is a housing crisis and that there is much trouble, and not just in the cities, either. This is a rural B.C. problem. I can assure you of that.
I do want to talk a little bit, just to get started, on what the bill will do. I question, and I certainly hope, that Bill 44, the Building and Strata Statutes Amendment Act, will be all that it’s dubbed to be. But I question whether or not it’s going to create the spaces that the government hopes it will because I just don’t know how that is possible in Cariboo-Chilcotin.
The bill enables virtual strata meetings, eliminates rental restrictions and removes any age restrictions aside from 55-plus requirements. Certainly the impact of that, I think, will be underwhelming. I don’t think that that is going to have the effect that it is hoped to. I can’t help but think that if the goal is to somehow create extra units, if the goal is to lower the cost of rent…. If that is the goal here, what has happened to the renters rebate? What has happened to those things that have been before us? Those have been before us for a number of years now.
The member for Peace River South brought up the fact that strata insurance…. He referred to a building being $235,000. We have condominium units, stratas in my riding that are skyrocketing for the cost of insurance. It’s another piece of the equation that bills like 44 or 43 need to address. It’s an important piece in the cost of this type of rental. I can’t help but notice that that has been omitted.
I think we heard these numbers talked about earlier. The government’s own statistics highlight that less than 1 percent of the units subject to rental restrictions are actually vacant. I know that to be the case in Cariboo-Chilcotin. I just don’t know. I think the member for Peace River South, again, referred to a lot of cabins and that type of thing. But I am fearful that it’s not going to expand the market the way that we would hope it might.
We know that housing affordability is a critical issue. I mentioned it before, and I’ll mention it again. It’s obviously facing the entire province.
I can’t help but note this. Williams Lake, Cariboo-Chilcotin — I never thought that I would see rental units like a suite or a basement suite or anything like that renting for $1,400 or $1,800. Honestly, it’s shocking, and it seems like there’s no ceiling on that right now.
I can appreciate what Bill 44 is trying to do, but I think it’s not perhaps enough. It’s just not enough. I think by creating units in this province — and I know that this bill is hoping to do that — it will bring that price down. The problem is, if this doesn’t work the way that the government feels it’s going to, that is going to continue to spiral.
That’s why I think we need an opportunity to discuss this further. I mean, I’m grateful that the minister has brought Bill 44 to the House. I’m grateful for that. But I really hope that we’re going to have an opportunity in what is left of this session, only two days left, to have full debate on this, because this is a crisis.
In my mind, the only way that we can really have a significant effect on the supply out there is to simply build more homes. We absolutely have to increase that, and it can’t be just a matter of building in the Lower Mainland either. This is extremely important, because rural B.C. is suffering this housing crisis in many ways as well.
Given the importance of this legislation, certainly there could be potential ramifications for housing. You’d think the government would want to give this House ample time to do our jobs as legislators here in this building and hopefully, of course, create an opportunity for Bill 44 to be improved, certainly an opportunity for it to be better for all British Columbians. We had the opportunity, and we lost that to a lost week of the legislative calendar last week, so I’m concerned that we’re not going to get the best out of this bill.
Again, I’m worried about unintended consequences with regard to so much of the bill. I think we’ve heard that from a number of members here this afternoon. A couple of the sections that certainly have caught my attention…. I want to go through a few of them.
Section 2 enables strata meetings via communications mediums such as Zoom. Look, I can appreciate how that might be helpful to a strata corporation or people that are in these types of condominium projects, but I’m sorry, I can’t be convinced it’s going to improve the supply out there in any way.
Section 9 further enables electronic strata meetings and requires access to information included in notice of meeting. Again, I just don’t see what that is going to do for supply in this province. Section 11 enables electronic attendance at meetings.
Section 12 repeals the requirement to disclose the number of rental units in a strata to any owner or purchaser. I want to read that again, because I think that British Columbians are going to want to know about this. This is specifically one of the clauses that has been brought up by my constituents. I’ll read it again. It repeals the requirement to disclose the number of rental units in a strata to any owner or purchaser.
I think when people are investing in these types of condominium projects and spending…. Certainly in my riding, it would not be uncommon to see a unit sell for $300,000 or $400,000 or even $500,000 in the nicer units. That might come as a surprise in Williams Lake, but we’re there, and rural B.C. is in the same situation.
Certainly in the cities, Vancouver, Victoria, etc., and some of the bigger cities, Kamloops and Kelowna, we’re obviously going to see much higher investment. I think that for the people that are investing in these properties, that’s going to be an important piece of this legislation that needs to be discussed. It needs to be discussed fully in committee stage.
I mean, these are small things in an important bill — a historic bill, in the government’s own words. Section 15 now requires that…. Pet owners are not required to lose their pet or leave if a no-pets bylaw is passed by a strata and further clarifies the definition of guide dogs and service dogs, etc.
Again, it may have no effect on me. It may have no effect on others in this building. I’m certainly a dog lover. I’ve never probably ever said my dog’s name in this House. I’m going to take the opportunity to say it, Mr. Speaker. My dog’s name is Jaxie, and I don’t know if she would agree with this clause. I think it’s important that that is also discussed fully in committee.
Section 16. I think this is the one that likely is going to meet with, certainly, resistance and a question around it. It is going to add limitations to age restrictions in strata bylaws to 55 years and above. It will further clarify that people are grandfathered into new bylaws. Additionally, caregivers for 55-plus persons will be exempted, as prescribed.
I can’t stress enough that there is a lot going on in this bill. I know we’ve had a bit of debate and conversation this afternoon, but it’s frankly not enough. For a piece of legislation that hopes to create a bunch of housing in this province, for a piece of legislation that is touted as being historical…. In my mind, it is wrong that we do not have more time to hear from other jurisdictions in this province, members of the government to speak to this bill, etc. So I think it is extremely important that we carry on.
I do want to point out that this is a primary role of the official opposition, of course. It’s enshrined in the standing orders and centuries of parliamentary conventions to scrutinize the legislation brought forward by the government, to hold the governing party to account and to ensure the best interests of British Columbians are being served.
That is, at the end of the day, what I truly hope for. I hope that when we debate bills like 44…. We’ve got a massive bill in Bill 36, with 645 different sections. The opportunity to debate and have a proper conversation about that is important.
I mentioned it earlier. As a new member to this House, I’m frankly a little bit shocked that this is actually happening right before our eyes. Every member in this room has the opportunity to speak for 30 minutes to these bills. Certainly, someone can be a designated speaker and take two hours, if they wish, to discuss Bill 44. So for so many reasons, there is an opportunity that has been denied to 87 members of this House. I shouldn’t say 87. Probably five or six of us will get an opportunity to speak, but I can assure you that there are more people that wish to speak to Bill 44, and there would be value in that conversation.
I want to talk a little bit about, specifically, Williams Lake. Again, this is an opportunity to perhaps introduce other suggestions as to how the government might help in this situation. I can assure you that in Williams Lake, the government there — certainly in 100 Mile, it’s been a similar situation — has attempted to secure Crown land, school district land, those kinds of lands.
In fact, we’ve just had a bit of an awkward situation between the Williams Lake First Nation and the city of Williams Lake. They found themselves pitted against each other in a bidding war, if you will, for a piece of property that could be developed for housing.
It just seems to me that when you’ve got a local city government in a position that they find themselves having to become developers at the local level…. Perhaps there are reasons that that might be good, and certainly there are reasons it might be bad. But it’s certainly not an opportunity to have two groups that should be working together trying to compete for a small piece of land because access has not been granted for development lands to a city like Williams Lake.
We’ve got a similar situation in 100 Mile House. These are sites that local governments are actively pursuing to, hopefully, increase the amount of saleable, rentable units in our communities. These governments are working extremely hard. I think that…. You know, I don’t know what the consultation has been on Bill 44, but I hope you can appreciate that that consultation needs to happen. There needs to be time to discuss that fully with our communities, with other people that might be involved in this, because as I said, it is a provincewide, very serious situation.
When you’ve got that kind of thing happening at a local level in a small community, you can imagine how important Bill 44 could be to those municipalities, to those regional districts, to those groups that are trying their level best to make some more units happen.
Again, I can’t help but go back to parts of the bill that just seem…. I can appreciate that the government’s hope is that it’s going to create a lot of units, but honestly, I don’t see that. And things like virtual strata meetings and whatnot — I guess that’s a great thing for those condominium projects, etc., that might be able to communicate more easily. But at the end of the day, I don’t see how, really, any of that is going to help.
I want to just go on with a couple more sections. Section 19 eliminates consequential sections but will still require landlords to provide notice of tenants’ responsibilities to a tenant. Section 29 is a transitional provision enabling tenants required to revoke a tenancy agreement…. Again, I don’t know how any of that is going to manage to help us through to creating more units. I think that that is exactly what we would have discussed if we were in a proper environment to debate this properly. I think we would have heard other suggestions and other ideas come forth from so many other members.
Again, the concern that I have is that we’ve really only heard from three or four of us. I’m sure there are great ideas on the other side, particularly with respect to rural members that might be able to add some great ideas of how we could improve Bill 44 just in general terms.
I think that we really need to look at the big picture and have that fulsome conversation and discuss at great length all of this.
Mr. Speaker, as I said before, I’m always pleased to come here before you and speak to bills. I think this is extremely important legislation. I think 43 was, as well, and I didn’t get my own chance to speak to that. It’s not just 43. There are so many bills before our House right now that are really, really important to so many people. I know that with limited time, the coming two days are going to be very busy for all of us in this room, but I really am asking and calling on the government to give the time that’s necessary to this.
Our caucus has been clear about the fact that we may look at ultimately staying longer or doing something extraordinary to get this work done.
At the end of the day, when we cast our ballots here and make our votes, they are part of the permanent record, and I don’t feel comfortable, to be honest, casting a vote on any of this. There are just, frankly, too many questions.
I mean, we heard the House Leader for the Green Party rattle off multiple questions that he has about Bill 44. Again, I just can’t help but think that there’s so much more work to be done on this bill and so much more conversation to happen in this room. I certainly hope there’s a chance that we may hear from the government on this bill. We’ve heard one speaker to it, but we have enough people here to certainly finish out the day with some great conversation and perhaps some great new ideas that might improve Bill 44 or 43. I know we’re specifically talking to 44.
I certainly look forward to more debate. Thank you very much for the opportunity to share a few thoughts on Bill 44. As always, I bring happy greetings from Cariboo-Chilcotin, and I appreciate that you’ve given me the time today to discuss this very serious matter.
P. Milobar: I’m happy to rise and speak to Bill 44, the Building and Strata Statutes Amendment Act. I just want to inform the Chair that I’ll be our designated speaker on this bill.
It’s always interesting watching how legislation advances in this place. Certainly with Bill 44, we’ve heard the minister describe it as historic. In fact, we heard him describe it as historic yesterday, and we heard him describe it as historic today. Now, certainly politicians routinely get accused of being a little over the top, and I would suggest this is one of those cases.
With Bill 44, what is historic about it is that it was introduced on a Monday, we’ll have closure brought about it on a Tuesday, and it will have been rammed through by a Thursday. So I guess it’s all how a minister wants to interpret historic when it relates to Bill 44, in terms of whether or not it’s truly historic.
But when we read through Bill 44, there are certainly a lot of concerns. Again, that is part of the process with a bill that….
Interjections.
P. Milobar: Sorry. Just letting the conversation finish up.
That is a problem when it’s a bill like 44, when it gets brought in so quickly, because it’s just today that we’re hearing from people. And I know the government is hearing from people. We’ve heard that from other speakers as well, the few speakers who will have been graced with enough time from this government to actually put up for this bill.
We’re hearing from them. We’re hearing from the public. We’re hearing their concerns, valid concerns of what they are worried about with this bill. And when you’re talking about people that own their own condominium or their own townhome, whatever it may be within a strata complex, that doesn’t diminish the fact that it’s their home. To that family, that is their single largest investment, just as a freestanding home would be. I think it is appropriate that legislation like Bill 44 be introduced with enough time to do proper checking in with the public and organizations and strata owners and renters to find out what the right mix of a piece of legislation should be.
Now, we could have had eight legislative days to deal with this bill, had it been introduced last Monday, but the four days in the legislative calendar were removed last week. Adding a third chamber does not equate as the same as four days, because you can’t debate a bill in multiple locations at the same time.
We’ll have what precious little time we have left, spread out over the next couple of days, to not just deal with this bill but to deal with the other three bills that had closure invoked on second reading today, to deal with the other bills that are still at committee stage.
We’ll see more and more time allocations and closures, and I’m fully expecting that by the time we get to Bill 44 in committee stage, that will happen as well, because we will not have enough time to properly canvass Bill 44 and what work went into it, what discussions went into it, what modelling was done with it, how this is expected to impact people, both positively and negatively, be it a strata owner, be it a strata renter, an existing renter or a possible renter.
We won’t have that opportunity, and we won’t have that opportunity to do that process because of the timing of this bill being introduced to this chamber. It is an important process. It’s an important process that we not have essentially two hours to debate this bill. Why that’s important…. I appreciate why the government didn’t put up speakers. In fact, I was shocked there was a speaker that decided to get up and speak after the minister, because that’s not the normal thing government does after they’ve invoked closure — to then start putting up speakers to chew up the time that’s left and granted to the opposition.
So I was glad that that speaker only spoke for a few minutes and shared his views of the bill, but everyone should have had an opportunity to share their views on the bill, regardless of what those views are — personal views, political views, partisan. All 87 members are supposed to be afforded that right in this place, within reason, to try to speak to legislation as it impacts them or their constituents.
Now, there is around one million people in British Columbia that live in stratas. I’m not sure if those are the same million people that are waiting for a family doctor under this government, but it’s a significant number. It’s a significant number if we were talking about health care and the lack of a doctor. So one million people is a very significant number based on our population in British Columbia, which means there’s a very large population base of strata owners in all of our ridings.
This is the problem with this legislation, when you look at how quickly it’s being turned around, how quickly we’re trying to get feedback from constituents.
Now, I’ll read just a portion of an email I received from a constituent, and it was sent to both myself and the member for Kamloops–South Thompson. It came in at ten to ten in the morning — or at night, sorry, last night. It makes more sense with the opening, when it says good evening. “Good evening, MLAs. Just briefly reviewed the Premier’s proposal to remove rental restrictions on strata corporations. On behalf of and as president of our strata council, I’m appalled and infuriated. Over 50 percent of family homes constructed today are strata. These are our homes, just as a single-family residence. Kamloops likely reflects this demographic. I’m sure Kamloops exceeds the average.”
It goes on. The point being that that’s one perspective. It doesn’t make it necessarily right. It doesn’t make it wrong. It means that there are concerns in our communities about this legislation, and tonight, debate after two hours will be cut off. We won’t know….
Now, our caucus has a lot of rural-based members that have a rural-urban split within their ridings. We certainly have several that have very urbanized, heavily populated areas, but so does the government. We’re not going to hear from their members. We’re not going to hear from the members that are on these emails we’re getting, when you look at the distribution list of who it’s been sent to, and it’s been sent to all 87 of us.
I look at areas of the province. I think of the Vancouver West End and the heavy population they have there — highrise, condo-style stratas. We’re not going to be able to hear from representatives on areas like that.
When you look at Bill 44, and you look at some of the sections in it, I think there are areas in there that we can agree that you would want to see modernized, updated. It is, after all, around 60 years or so, portions of it.
One thing we learned through COVID is that you can function reasonably well with Zoom. I’m not the biggest fan in the world of Zoom, and Teams even less so. I know there are other meeting platforms people use. But it can work. It can work for people that maybe have mobility challenges or aren’t feeling well but still want to be able to have their input on something that’s going on within their complex. I say complex because there are a lot of the stratas that aren’t tall, condo-style, apartment-style stratas. There are a lot that are more townhouse, rowhouse, those types, with grounds and everything else.
There’s a wide mix of housing options for strata. In fact, in Kamloops, we have a whole subdivision that’s strata, Orchards Walk. It will literally be thousands of units by the time it’s all built out. Driving through it, it would look like any other neighbourhood, but that was part of the development agreement with the city. At the border, when you first enter, you would think it’s just a regular city street, but it’s actually maintained by the strata. All the servicing in there is maintained by the strata. Yes, they’re on city water. Yes, they’re on city sewer. But all the pipes going up to the property line of the overall development are actually owned by the strata. Those types of housing developments have concerns.
As I was thinking about what to say as I addressed this bill…. Again, there are things in this bill that we can understand. Hopefully, there will be enough time at committee stage graced upon us by the government to actually ask enough questions to get some detail for people, because that’s part of the other missing piece of the debate side of this. When you have so little time to debate that the government, thankfully, doesn’t put up speakers….
This is a bill that we’re worried about unintended consequences. The unintended consequence of that is that the public doesn’t get a better sense of what the government is actually thinking on how a bill, in implementation and in practice, is going to be used. It’ll be left to everyone’s best guess on about a four-minute introduction by the minister, who has described this as historic, and it’s anything but, except for its lack of democratic process.
As I was thinking about how to address this bill, I started thinking about what people are saying in terms of stratas. If you think about stratas, they’re a collective of people that have agreed to a set of rules that they are going to live with, over and above all the city bylaws and ordinances and provincial laws and federal laws. They’ve agreed, and it gets right down to the fine detail. It gets down to whether or not you can have flags off of your balconies, whether you can have barbecues or not and whether or not you can have stuff stored that’s visible. They all agree, as a collective, on all that stuff. It changes as people buy in. You make decisions.
It’s a larger collective. Frankly, that’s why it’s surprising to me that a socialist-leaning government is against a collective trying to figure out how to work communally on their living. But again, they’re owners. Some have renters in them. Some stratas allow that, because they’ve made that decision.
I thought: “Well, I personally don’t live in a strata. I have a daughter that did live in a strata. That was their first place they bought; it was in a strata.” I don’t, but I kind of do, as I started thinking about it. I’m an owner, and I’m on title. My wife’s an owner; she’s on title. We have discussions about whether I’m going to hang a flag at the front door or not. After that discussion’s over, I go and hang the flag at the front door. We have a discussion about whether the carport’s getting too cluttered or not. After that discussion, I head outside and clean up the carport that my wife wanted cleaned up. It’s a bit of a one-sided strata conversation, I’ll admit. My winning percentage is not great.
It’s not much different. You’re having a conversation. You’re coming to an agreement. No, there are not minutes, and there are not resolutions and bylaws and all of that. But people in single-family homes do the exact same thing. They do it as a family unit. I did it when my kids still lived at home — how often we were going to cut the grass, who was going to do it. When is the garbage going out to the curb? Who’s going to do it? I know it sounds a bit, I don’t know, sarcastic, trying to combine these two, but it really isn’t much different.
And why I say that is when you look at Bill 44…. Why strata owners are nervous right now is because, although their largest purchase in their life, their home in an area where they have made decisions as a collective for the last 50, 60 years…. They’re now being told: “We really don’t care what you think. We’re the government, and we’re telling you that your neighbour, whether you like it or not, could be a renter.” I have nothing against renters. I’ve been a renter in my life. I have a son that’s a renter right now. This isn’t about anti-renter.
The government doesn’t go to a freestanding house like I live in and say: “You are going to have renters whether you like it or not.” Now, my neighbours are free to have renters. I have people with basement suites right around me. I have others that are renting the house out completely. That’s not a problem at all. But that was a decision made by that individual landowner.
A strata doesn’t have that individual landowner. A strata has a collective of landowners. And when you read through the data backing up Bill 44 and you hear the minister and the Premier talk about how this is intended to radically change the supply of housing, and then you see that there’s less than 1 percent that they can identify of strata units that are sitting unoccupied, and you find out that’s 2,900 units across the whole province, you realize very quickly that this isn’t going to accomplish what the Premier is trying to say it’s going to accomplish. It’s very quick, simple, basic math that just says 2,900 units. It’s not solving our housing crisis.
You can see why the other 297,000 strata units might be a little bit concerned. They feel this is a little heavy-handed. Especially, as my colleague from Peace River South pointed out, a lot of those 2,900 units are family cottages and that, which are bought in a strata situation at a recreational site, be it a lake or camping area or whatever.
So that’s a fundamental worry within Bill 44 around how this will actually roll out in practice and how it will actually meaningfully add to housing supply when there are only 2,900 units that might be available for renters.
There’s another unintended consequence of Bill 44. Again, we’re not going to have that time to not only debate it properly and to question it properly in committee stage but also to check in with people within the real estate industry and have them give solid, sound view at this bill — an opinion to inform this. We know the Premier thinks this is a good idea. It doesn’t make it a good idea. We know the Premier thinks this is going to solve affordability. It doesn’t mean it’s actually going to solve affordability. That’s simply the Premier’s opinion on this.
The reality is that we’re already hearing from people on Bill 44. Again, the simple test of logic…. This holds water. This actually makes a lot of sense when you hear this in our communities, within the first day of this bill being passed, which is that this will likely drive up prices. This will likely drive speculators into the market.
I referenced my daughter. Her and her husband’s first place was more of a rowhouse strata type of development. I can remember I had friends that were renting in that development back when I was 19. It had been around for a while then — older housing stock, well maintained. The strata does a good job. There were some rentals allowed in it because they agreed that that could happen, but it was affordable. They actually were able to get into the housing market as they were both finishing up school in the Kamloops market at the time. Now, this was a few years ago, before prices really spiked like crazy, but it was affordable.
I seriously question whether or not that same unit would be affordable if instead of a few rentals being allowed within the complex, the whole complex had turned into rentals, because the age of the housing stock and others…. It would have been prime for investors to come in and buy it up en masse, pick up five or six or seven units, start to control the strata board if they would like, start to maximize their investment….
What happens to the repair and maintenance budgets of these stratas if people that have only bought simply for an investment to have a renter in and a return on their investment start saying the strata fees are a little too high? What’s that unintended consequence? We won’t have enough time to dig into that and what work was or wasn’t done by the ministry in Bill 44 as it was being developed, because we’re going to be cut off of debate, but that’s a very real possibility.
You can understand why strata owners and people that live in stratas are concerned around this, because this is their single biggest investment. We’ve heard about insurance. We’ve heard about stratas already reaching out to our Housing critic, indicating to him that their insurance brokers are already informing them that their strata insurance is likely to spike.
Now, I’m no insurance expert by any means, but it strikes me that if this is already on the radar screen of insurance companies and, according to this, Bill 44 becomes law on Thursday, it’s not a lot of time for stratas to start to adjust for a potential spike in their insurance, because they weren’t given proper notice. They weren’t given a proper implementation time frame.
If there is a mid-policy spike in their premiums, because they have fundamentally changed the terms and conditions of their insurance policy, that’s going to be a big bill at a time of record inflation, record unaffordability, record rental prices, record housing prices for purchase — not exactly the best time to start hammering stratas with unexpected insurance policy premium hikes for 2,900 housing units that may or may not even go on the rental market, that may or may not even be affordable rentals. There are probably a great many of those 2,900 that are in those more apartment-style, high-rise, urbanized towers. What’s the rent for those going to be? Especially when you have to start making up for the extra insurance costs.
That’s the critical piece here on Bill 44, and that’s why it’s so galling that the government brought this in on a Monday to start debating on a Tuesday to then say before we even started to debate it: “You know what? You get two hours, and then we’re moving on. Nothing to see here, folks.” Nothing to see in a bill that is going to affect one million British Columbians on Thursday, because it might create 2,900 units of housing for rent — might.
And it’s not all large stratas. I have another email here, and this one went to all 87 MLAs. They don’t say where they’re from, and it shouldn’t matter. They’re from British Columbia. That’s what this chamber is supposed to represent. That’s what members are all supposed to speak on behalf of in a reasonable way with reasonable timelines.
This is on Bill 44, Building and Strata Statutes Amendments Act, 2022.
“As a member of a small four-unit owner-occupied strata property, we were distressed to learn of the provincial government’s plan to remove rental restrictions from strata bylaws. We are a small self-managed strata, where all maintenance and operation of common property is undertaken by the four owners. This allows us to minimize strata fees by not retaining the services of a property management company and ensures that all our ongoing maintenance work is done to a reasonably high standard.
“We are concerned that if one or more of the units in our strata were rented or sold to an investor for rental purposes, this would diminish our ability to economically maintain our property and potentially result in neglect of important health and safety building components, such as building enclosure, plumbing, heating and fire and safety systems.”
He goes on, and he ends with: “We would respectfully request that the government exempt smaller strata corporations from the proposed removal of rental restrictions from their bylaws for the reasons above.”
My earlier analogy of my own household, or anyone else’s household with their family, of being a smaller collective that kind of agrees on what the living rules are going to be, is really not that much different than a four-unit strata, and these are all over the province. But these are going to be treated as if they’re a Coal Harbour tower.
So you can see where a strata that’s small like this that was developed years ago as an affordable way for three or four families to try to pool their resources, pool their sweat equity, pool their ability to landscape or do their own self-repairs and things of that nature, to live affordably, are now very worried that the rules that they have collectively agreed to live around are going to be unilaterally changed by the Premier on Thursday, after talking about it on Monday.
Although the Premier will say that Bill 44 was talked about in his robust leadership campaign, where he toured the province heavily, I think it’s safe to say that wasn’t much of a campaign. It wasn’t much of a race, and there was certainly no detail when it came to policy. It was a couple of ideas put out there like this after the manufactured disqualification had happened, but certainly not the detail that people would be expecting, let alone the timeline people would be expecting that we see in Bill 44 as it could impact.
Now, I’ll point out that the email I read doesn’t slam renters. I agree. I’ve been to enough public hearings and things of that nature where people seem to have an aversion to renters. Again, I’ve been a renter. I rented several different places before I finally could afford to buy a home. My parents rented, my son rents, and my daughters have rented. I don’t take issue with renters, and I don’t think all renters are bad. I don’t think all homeowners are great either. There are a lot of homeowners that create a lot of neighbourhood problems for their neighbours. But the concerns raised by that letter on the strata are very specific about their investment.
I’m sorry that I’m entertaining the Premier and some of his ministers to the degree that I seem to be. They obviously don’t feel Bill 44 has a serious impact on people’s single largest investment in their life, as the people who are emailing all of us. That email I read out was emailed to all of us.
Perhaps the Minister of Citizens’ Services could take the time to read the emails and see the serious concern that these people are sharing about Bill 44.
This is going to be an interesting regime. It’s remarkable that during debate, what limited time we have for direction on a bill like this, that’s what the government wants to fixate on, not the concerns of the residents.
Now, there are parts of Bill 44 that we can understand the need to update. As I said, Zoom is one prime example of that, the sections that are being amended, 2 and 9 and 11. It makes sense to modernize for technology. The obvious need to change out some of the procedural things around the number of rental disclosures, if everything can be rented, is a pretty obvious one.
Things like not having to lose your pet if the collective suddenly changes the bylaws…. That makes sense, especially in this day and age, where more and more people are seeking out pets for support and therapy. We’re seeing that more and more prevalent in rental apartment buildings as well, where a great many more people have dogs and cats within those buildings. That makes sense to update that.
Certainly, age restrictions, as they relate to you finding yourself starting a family or a family situation, have changed — especially with blended families and things of that nature nowadays. That makes sense that you would want to recognize that and modernize that.
The interesting thing is that with the emails we’re getting, people aren’t taking great issue with all that. There’s the odd email we’re all getting that takes a bit of issue with the age restrictions, but that’s just the odd one. The underlying thing that the bulk of the people are worried about is their investment. They’re worried about their investment. They’re worried about what happens to the market in general if every single unit is allowed to be rented out.
Again, if we had more time to discuss Bill 44 and the impact with associations and strata councils, there might have been things that could have been suggested, where there had to be a mandatory minimum percentage of units within a strata that had to be rented. There might have been a way forward, where people weren’t terrified that they were going to lose the value, based on ever-increasing strata fees, to speculators.
I say that because Bill 44 is all predicated on the government’s own number that under 1 percent of strata accommodations are unoccupied right now. Using a sledgehammer on 100 percent of the units to try to get 1 percent occupied seems a little counterproductive. There might have been a way forward where we could have found agreement, where larger-sized stratas agreed that 5 or 10 percent are in the rental pool. That would have been a good first step. It still would have been five or ten times more than what the Premier’s own reports have told them about available units in stratas.
There, alas, won’t be the time, due to closure and time allocation, to not only canvass that now but to canvass that in committee stage. I’ve lost count of how many bills we still have at committee stage, but I believe it’s in the seven-or-eight range, with a day and a half after tonight to go. I say “a day and a half” because there’s always early closure on a Thursday — we all know that — for royal assent.
Guess what happens at royal assent: Bill 44 becomes law. At about four o’clock on Thursday, this becomes law — introduced at 10 a.m. on a Monday, talked about for two hours at nighttime on a Tuesday. It’d be interesting to see what type of time allocation the government allots for committee stage on this bill on a Wednesday or a Thursday — an hour, maybe two at best — and then it’s law. No clear certainty for owners, but no actual, clear certainty for renters either.
This is being billed by the government as opening the floodgates to housing supply — “historic” is how the minister keeps describing Bill 44 — but this bill does nothing for affordability. It does nothing to address the twice election-promised renters rebate, if this were meant to try to help renters. If you look at the average strata costs — which include things like common areas, property taxes and everything else, and now the ever-increasing insurance costs that we’re hearing about because of this bill — the rents aren’t going to be affordable. People will live in them. It doesn’t make it affordable housing for them.
Where in this bill…? We’ve heard, time and again, of problems with the RTB right now. Depending on the file…. I’m sure everyone is getting the same types of files through their office. One file is a nightmare of how the landlord is behaving. The next file is a nightmare of how the tenant refuses to leave and is damaging the place they’re renting. The system is so backed up. They can’t get out. They can’t get evicted. The owner is watching their investment literally get crumbled in front of them.
How does that all equate to a strata building now? It’s one thing if the whole strata had agreed, as a lot do: “We’re going to have 5 or 10 percent rentals in our buildings.” You go on a list. You put your name in. If it’s deemed to be five units in a strata and one of them turns into owner-occupied, the next person on the list has the option to try to rent their unit out.
There are a lot of stratas that do that, and that’s a good thing. They, as a collective, agreed that they’re willing to do that. They’re willing to try to help people out and to bridge, if they’re moving to a different city or trying out a different job in a different town and want to be able to come back in a couple of years and still have their unit in that building.
There’s a lot of that rental that actually happens within existing stratas. They didn’t need the government to come in and say: “Thou shalt rent.” They figured it out, much like homeowners figure out whether they want a basement suite or not. There are people all around my house that have basement suites. They’re not a problem. There are also a lot of houses around my house that don’t have basement suites.
Both those homeowners made a choice, made a decision as to what was right for them, what was right for their family, what was right for their family budget, sense of security. Some have basement suites because they travel a lot. They like having someone else living in their house while they’re travelling. They see it as a good way to actually pay for the travel. That makes perfect sense. But that was their choice.
Bill 44 strips away choice. That is the fundamental worry that we see in this bill. Again, the emails we’re getting are not about “owner good, renter bad,” or vice versa. It’s about control over their own investment and how fast the rules are going to change and what that actually means to them.
It’ll be interesting to see…. There doesn’t appear to be anything in this bill…. We can canvass at committee stage — hopefully, if we get a chance to ask more than three questions at committee stage — whether or not there is any protection, for existing stratas, with insurance right now.
What does happen on Thursday at four o’clock when this becomes law and you haven’t changed your insurance policy to reflect that your building can have renters in it, when you previously got an insurance policy, based on your strata bylaws that said: “No renters allowed”? What happens if somebody decides to act on that right away and actually gets a renter in right away and there’s an incident? Is your policy still valid? Does the government even know? Has the government looked into that?
Those are the types of questions that we could flesh out at committee stage, but we won’t have that opportunity. That’s a pretty significant question to be answered, with the rush of this coming in at royal assent. In Bill 44, it’s very clear that the commencement is on royal assent.
Now, we had a used-car tax that changed the way we calculate tax on a used-car purchase in a private sale. Although that bill was passed late spring, it actually didn’t take effect until October 1.
There are all sorts of commencement dates in legislation, when it comes forward. The Premier ought to have a different date for commencement, not being royal assent, so that stratas could do their due diligence with their insurance companies as to what the new legal change means as it relates to their buildings. It could have been to take effect December 1. It could have been to take effect January 1, right at the start of the new year.
Had Bill 44 taken effect January 1, it wouldn’t necessarily, fundamentally, obviously change anything in the bill between Thursday and January 1, but it would give those same people that haven’t had time to be properly consulted about the bill at least enough time to properly digest and find out from various agencies how the new law actually impacts the single largest investment for their family. It would have given them the decency of the time to do that.
Instead, they’re left feeling like this Premier has decided that his first act is to wag his finger at stratas and say that they are the sole reason that we have a housing issue, even though he was the Housing Minister for two years and didn’t do any of this. And then, as a result, the hammer comes down to maybe have 2,900 units rented — maybe — in a style of housing that 20 percent of the population of British Columbia lives in.
After waiting over two years as the Housing Minister and another six months on a protracted, tainted leadership run, we get this on the first day, and it has to be law by Thursday. It just has to be. It can’t be law on January 1. It can’t give people time to digest and process what has just happened, to talk to their banks, to talk to their lenders, to talk to their insurance companies. That seems to be okay by this government, and that’s the scary part. Because this is day two of the Premier’s new reign. We’re seeing closure on two housing bills that have only been introduced a little over 24 hours ago.
It makes you wonder what the future holds for the next legislative session when it comes to bills like Bill 44. Because if that is the lack of respect shown to homeowners and others by this Premier, and this government, moving forward — that they feel people can’t be trusted, over the space of a couple of months, to try to seek out proper advice on what would have already been mapped out very clearly by this….
It’s going to pass. We all know it’ll pass. But didn’t have to be law on Thursday at four o’clock. Bill 44 could have easily been law on January 1.
[Mr. Speaker in the chair.]
No one knew for sure what the Premier was talking about with his strata policies, because there was no leadership race. There were no leadership debates. There was no scrutinizing a platform or a policy. No matter how much the Premier wants to try to spin it, it didn’t exist. It was non-existent. There was no other candidate that was even approved to be in the race. There was no race.
To have a piece of legislation like Bill 44 get dropped on a Monday, debated on a Tuesday, committee stage on a Wednesday or Thursday, for a couple of hours, is reprehensible to people and their investments that they do not get the decency, from this Premier, to have a bit of time to actually go and talk to their professionals that they deal with, as a strata, to find out what the true impacts are. The true impacts will be to their insurance costs, which we already know have skyrocketed. And despite kind words from this government that they were going to take action, they took no action.
So these 20 percent of British Columbian citizens continually take it on the chin from this Premier, be it as the Housing Minister or now as the Premier, because they have the temerity to live as a collective, in a way that they can actually afford to live and have a bit of ownership in something, but they’re not afforded the decency by the Premier to have enough time to fully understand, to fully engage with, to fully know what these changes will mean to them in real, practical terms.
It will be interesting to see…. Is the Premier’s intention on Bill 44 to start to reverse things when the inevitable happens and prices in stratas start to skyrocket as investors move in? Ready-built rentals sitting there. Imagine the presales. Imagine what’s going to happen to the presale market, to stratas, when investors can just move in, show a bank a pro forma of what they will be able to make with ten units that, by law, have to be rented in a 30-storey tower in Vancouver next to rapid transit. Just imagine what that’s going to do to the prices of those when new builds that are generated off of presales will be able to have large, speculative buyers come in and buy multiple units in them.
How does that create one piece of affordable housing in British Columbia…
Mr. Speaker: Member, we have to conclude.
P. Milobar: …when the resale on those units is going to invariably wind up costing more and more, if they even go up for sale? If they just stay as rentals, the rentals are not certainly going to be affordable if they go up for sale, because it’s strictly an investment. As occupancy permits start to be given, the price will be even higher.
That’s what this Premier, with Bill 44, is creating. He’s creating an environment that is ripe for abuse, that is not going to get to the core. If the core mandate is to try to find ways to get more rentals on the market, let’s get more actual rentals on the market.
Mr. Speaker: Member.
P. Milobar: Let’s not dive into the home ownership market and turn around and say: “Well, we’re going to take a chunk out of one type of home ownership but not another type of home ownership.” Why go halfway? Why did the Premier only go halfway? Why not go into every freestanding home…
Mr. Speaker: Member.
P. Milobar: …and tell them they must have renters in their basement?
Mr. Speaker: Member, we have to….
P. Milobar: Why are we not allowed to debate the proper process in this place and keep getting cut off by government time and time again? It’s simply not right.
With Bill 44….
Mr. Speaker: I hear you.
Pursuant to the time allocation order adopted by the House earlier, the Chair has to ask the member to take his seat. The debate was supposed to be ended at 8:45, so we have already provided an extra four minutes to the member.
We now must put the question on second reading of Bill 44, Building and Strata Statutes Amendment Act, 2022.
All those in favour, say aye.
Division has been called.
Second reading of Bill 44 approved on the following division:
YEAS — 55 | ||
Alexis | Anderson | Babchuk |
Bailey | Bains | Beare |
Begg | Brar | Chandra Herbert |
Chant | Chen | Chow |
Conroy | Coulter | Cullen |
Dean | D’Eith | Dix |
Donnelly | Dykeman | Eby |
Elmore | Farnworth | Fleming |
Furstenau | Glumac | Greene |
Heyman | Kahlon | Kang |
Leonard | Lore | Ma |
Malcolmson | Mercier | Olsen |
Osborne | Paddon | Popham |
Ralston | Rankin | Rice |
Robinson | Routledge | Routley |
Russell | Sandhu | Sharma |
Simons | Sims | A. Singh |
R. Singh | Starchuk | Walker |
| Yao |
|
NAYS — 26 | ||
Ashton | Banman | Bond |
Clovechok | Davies | de Jong |
Doerkson | Falcon | Halford |
Kirkpatrick | Kyllo | Lee |
Letnick | Merrifield | Milobar |
Morris | Oakes | Paton |
Ross | Shypitka | Stewart |
Stone | Sturdy | Sturko |
Tegart |
| Wat |
Hon. M. Rankin: I move that the bill be committed to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 44, Building and Strata Statutes Amendment Act, 2022, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Committee of the Whole (Section A), having reported progress, was granted leave to sit again.
Committee of the Whole (Section C), having reported progress, was granted leave to sit again.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 p.m. tomorrow.
The House adjourned at 9:03 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of the Whole House
BILL 42 — PROVINCIAL SALES TAX
AMENDMENT ACT, 2022
(continued)
The House in Committee of the Whole (Section A) on Bill 42; F. Donnelly in the chair.
The committee met at 1:38 p.m.
On clause 1 (continued).
P. Milobar: When we broke for lunch, the minister had answered a question I had around Indigenous consultation. She referenced that they would have to go through, with the federal government, around if they wanted an MRDT within their nations. That really wasn’t the spirit of the question, so I’ll rephrase it. Maybe I wasn’t clear.
The question was really around…. So we have an MRDT bill in front of us. There are going to be designated areas, but those designated areas, if it’s to go forward, are going to fall, obviously, anywhere in the province, under Indigenous traditional territories.
With the backdrop of UNDRIP, and with the potential, especially in Vancouver, of development that’s happening with Indigenous communities that’s not happening on reserve lands but within the city of Vancouver, we could very easily have commercial development. We could very easily have hotel commercial development within those areas.
Will Indigenous communities and their leadership actually be engaged on whether or not an MRDT gets put in place within a designated area, or is it strictly the municipality that the government consults with and seeks agreement with?
Hon. S. Robinson: Again, I will reiterate for the member that it’s the municipality and host jurisdiction that would come to the province to ask for this additional MRDT as part of a way to raise revenues that would help them cover the costs of hosting such an international event like FIFA.
If a First Nation was, for example, partnering with a municipality or local government and together they wanted to do something, and then the mechanism would be through the local government, they would certainly check in with the province about the opportunity to use this as a tool to raise the revenues, revenues that are collected by the hotel providers and paid for by hotel guests, so that they could cover off the considerable expenses that come with hosting such an event.
P. Milobar: Does a designated major event accommodation area have to be an event that the province is financially supporting or supportive of, or is it simply a case of municipalities or the jurisdiction in that area requesting it?
Hon. S. Robinson: Anyone can apply, so it’s open to any of the jurisdictions. Municipalities are able to apply to the Minister of Finance for it to be considered a major event. They must also have sign-off by the minister responsible for tourism as part of the requirement for seeking this additional tool to raise revenues to help pay for these major events.
P. Milobar: This would take effect on royal assent, which would be two days from now — Thursday, I guess. We have an Indigenous-led Olympic bid that was rejected by this government with only, at best, a very high-level look at potential revenues, according to the minister’s statement. I reread the Blues. I know the minister said she never said they hadn’t reviewed. The way the answers came, it very much gave the impression that there was nowhere near any significant look at whether or not this would be a tool that could be used for revenues.
That said, on November 18, the Olympic committee did send a letter to all elected officials in British Columbia. I’m assuming that means all the new mayors and councils as well. Their final request is actually to have a sit-down meeting with the new Premier to try to see if there’s not a way to salvage the bid and move forward with the bid.
I’m not asking the minister to speak to whether or not the Premier is willing to meet, at last, with the group or not. But it seems to me that given that there are large portions of this province that would be subject to the potential of an MRDT for the Olympics…. They’re not impacted by FIFA. They won’t have the MRDT in place for FIFA, but they would have the potential to be a host city for the Olympics.
Is the minister saying, then, if the Olympic committee now, with this new legislation in place, is able to have a discussion, that would open the door for them to be able to have discussions with those other host cities to look at the potential of using this as a tool to help fund a 2030 Olympics?
Hon. S. Robinson: As I said previously, before we broke for lunch, we did do a high-level analysis to give us some, I will say, gross estimates of what it would cost to host an Olympics, given that there are scant details available. But at a very high level, the assessment was north of $2 billion, minimum. That’s a minimum as to what it would cost.
Cabinet, based on that information, made the decision that even with an MRDT available, there would not be the resource available to cover off a high-level estimate of $2 billion. That was the work that was done by the public service, at our direction, to just give us…. Based on what we do know: “Can you give us an estimate of what we’re talking about when considering a bid?”
Again, I want to let the member know that cabinet has made a decision around the Olympics. This, before us here, is about providing a tool to the city of Vancouver that is and has been keen to host FIFA. I believe they brought forward $5 million. I’m looking…. Yes, they brought up to $5 million, but everyone knowing full well that they need hundreds of millions of dollars — over $100 million, for sure — to cover the costs of hosting FIFA.
With collaboration between my team and with the city of Vancouver, the city asked us to consider looking at this sort of tool, which is what we have before us here for debate, so that not just the city of Vancouver, for this particular instance, but other cities as well that may want to take a look at hosting a major international event that draws additional tourism to their communities…. This is a tool for consideration going forward.
P. Milobar: Again, I recognize that this was, in part, developed because of Vancouver and FIFA, but this is not called the FIFA bill. This is called the Provincial Sales Tax Amendment Act. And the minister touched on, at the very end, that this could be used by other municipalities.
The question was around — and that’s why I asked the lead-up question to it — if only events that have provincial resources and dollars going into them would be eligible to be able to try to come up with a defined designated major event accommodation area or be a designated recipient.
The question was if the Olympic bid committee is able to work with other host communities, with this MRDT as law as of Thursday, to rework their financial bid to see if there’s a way for them to move forward — if they would be eligible, if that type of a project would be eligible — and they could try to find a way forward using the MRDT in this bill, excluding the areas that would be covered off for FIFA.
Hon. S. Robinson: As part of doing an analysis about what an MRDT can raise…. The analysis was done for FIFA, as an example, in order to determine how much it can raise over a number of years. Given the price tag of an Olympic bid — at a very high level, without all the details — there is no jurisdiction that can host it without considerable resources coming from the federal government and the provincial government. That is, I think, quite clear.
Cabinet made the decision to not continue with the bid. Government has other priorities, and as such, decided to not sign on to an Olympic bid at this time. Going forward, however, there is a tool…. Should there be an opportunity in the future, there is an additional tool that is available. But let’s be clear. Hosting an Olympics requires both federal and provincial participation, and we’ve decided as a government that we wouldn’t be participating in this particular bid.
P. Milobar: Again, the minister seems to be conflating two things. I’m not asking for the provincial government to change their decision on the Olympic bid. I understand that decision has been made. And, yes, in the past, that’s how Olympics have come together — federal, provincial and that.
The fact that the bulk of the work that needs to be done this time is renovations of existing infrastructure that’s in place, the fact that the Indigenous-led bid would be the first one that’s not just carbon-neutral but carbon-positive, the fact that it would be a major step forward in reconciliation and other factors does not necessarily slam the door shut on it, which is why the open letter, as of four days ago, to all electeds.
The province may want nothing to do with this. It doesn’t mean the feds don’t suddenly say: “You know what? We’re still going to try to forge ahead.” I don’t know they will, and I don’t know they won’t. I don’t know municipalities even want to have a part with the MRDT.
The question was if the Olympic committee is able to work with the municipalities that are outside of what turns out to be the FIFA area for the MRDT, if this is a funding source that they would be able to get approval from the province on for something like an Olympics, to be able to rework their financial professional pro forma, to see if they can actually figure out a way, with other agencies and other funders, to move forward.
Hon. S. Robinson: As the bill is written, any jurisdiction or municipality can make an application for a major event, regardless of what it is or what its title is, as long as it meets the criteria — can approach government, approach the Minister of Finance and the Minister of Tourism for consideration of using this tool as a way to generate revenue to help cover the costs.
P. Milobar: I’ll take it from that, then, that means that the Olympic committee has the possibility of still working with municipalities and seeing if this is something that municipalities would want to jump in with — or regional districts and of a larger, broader area.
In terms of the designated major event accommodation areas and the definitions around designated recipient and things of that nature, this is where we first started talking about the tax on accommodation. Was there any discussion?
Part of the sticking point with the MRDT over the years with the hotel industry has always been: “Why are we the only ones that are the revenue collectors, the tax collectors for government with tourism with special taxes, when there are a whole lot of other things that fall into tourism — ski hills, golf courses, tour bus companies that do the sightseeing tours, all of those types of things?” Was there any discussion given to the possibility of changing and using this, given that it’s large-event focused taxation, to better reflect the actual broader tourism market versus putting it all on the backs of the price points of a hotel?
Hon. S. Robinson: We did look at broader aspects of it just to get a better sense of how to best generate the revenue but landed on the MRDT alone, mostly for ease of administration but also because it had been done before for the 2010 Olympics. It was a tool that worked well, helped Whistler raise revenues that Whistler needed to help a portion of their share to host the Winter Games.
I remember actually watching the women win gold in Whistler. It was a sweet moment, the women’s hockey. It was for that reason that we went with that tool, given that it had demonstrated to us what the potential revenues were based on the modelling that we have done and based on the experience that Whistler had had back in 2010.
P. Milobar: Again, I’ve personally gone through this MRDT debate in my city twice, once on the opposing, not agreeing to it.
Interjection.
P. Milobar: We did. Actually, my mother was the hotelier. She was the first female president of the B.C. and Yukon Hotels Association. And we pushed back against it because there was not going to be local control.
The next time it came forward, there was going to be hotelier control over…. I shouldn’t have said “local.” There wasn’t going to be hotel control the first time. The second time, the Tourism Kamloops board was created. A majority were hoteliers. They recognize there is a benefit to a tax like this on tourism.
It’s been long-standing, so when I’ve reached out to people in the industry over the last couple of weeks that this bill has been active, again, their concern is one of continuing to carry, essentially, the price-point burden with tourism and just people that are travelling for the sake of travelling around the province, down to the Lower Mainland, over and above people that are there truly engaging in tourism-type activities.
Again, was there no discussion either with the industry or with DMOs around the creation of this bill as it relates to, especially…? There was such a focus on FIFA, as the minister has referenced several times now, as this bill was created. It sounds like pretty much exclusively FIFA-minded legislation, but it seemed to be a perfect opportunity to address some of those historical issues.
I say that in the backdrop of…. It’s FIFA-related in an area of the province that the rest of the province, over the next seven years that this will likely be in place, will be travelling for all sorts of medical appointments, long stays, those types of things, business, on a regular basis, that have absolutely nothing to do with tourism.
The hotel becomes a critical part of that because they need to stay somewhere. If your child is in B.C. Children’s and you’re back and forth for regular appointments and that, you have no choice but to be staying in a hotel if you don’t have family and friends. If you’re going down to any of the major provincial health providers and hospitals, you don’t have that option.
So was there no discussion at all? Was there no modelling? Was there no attempt to try to broaden this to potentially lessen the impact to the hotel industry as carrying the load? As I say, we’ve got sightseeing buses. You’ve got all sorts of things that are typically much more tourism-related than strictly a hotel.
Hon. S. Robinson: First, I just want to mention that while the member is correct — it was FIFA-driven, just as it was Olympics-driven when it was for Whistler — we’ve taken the next step, recognizing that this would be the second time that the province would be using a special events MRDT for an international gathering like this. Where this is different is that it’s a tool that will be used on a go-forward basis, that’s available to be used on a go-forward basis. So I think this is something that other municipalities can use as they think about their own tourism opportunities.
We did talk to industry. Consultations were led by the city of Vancouver and Destination Vancouver. They supported that as well. There was consultation with the B.C. Hotel Association, the Vancouver Hotel Association and the Vancouver Hotel Destination Association, and we’re continuing to consult with them. There is still some work to be done around the exact rate. This bill talks about the maximum of 2½ percent. That’s the maximum. There hasn’t been a determination yet on rate. That consultation work needs to continue, as well as the duration of this special MRDT.
The industry concerns that we heard…. I’m just going to share this so that the member…. I don’t know if he has a question, but this will provide the answer. The three concerns they were worried about were competitiveness, time — they wanted it time-limited; they recognized that — and transparency. Those were the three issues that they wanted special attention paid to, which we have.
I think I’ll leave it there, and I’ll wait for the member’s next question.
P. Milobar: Well, apparently the minister-critic relationship has been around long enough now that she’s pre-emptively guessing what my next question was going to be, at least half of it.
I was going to ask the minister…. When she referenced consultation, that’s always the expectation. Certainly, you would hope that what’s in a bill has been consulted and has general agreement and that. What other concerns were raised that the ministry, in that consultation, chose to not act upon?
Hon. S. Robinson: As I said in my previous answer, these were the top three concerns. There’s competitiveness. Remember that for FIFA, we’re just one of 16 cities across North America that are going to be host to FIFA. The other host cities are likely to use some other tools similar to this one to help raise the revenues that they, too, will need in order to be host cities. We have some conversation with them as well.
That was around competitiveness. They wanted to make sure it was time-limited, and they wanted it to be transparent. Those were, again, the top three issues that came forward that I think, from a consultation perspective, those that were in the room acknowledged were the most pressing issues for them.
P. Milobar: Well, I’ll go out on a limb and say the competitiveness was likely more around being competitive within their own geographic market and over the time frame and the duration than worrying about being competitive with another FIFA city.
I say that because people travelling for FIFA are travelling regardless of what the hotel tax rate is. They’re likely not checking. When you look at what they’ve just spent to go to Qatar, when you look at…. The stands today were full with people in Mexican jerseys. Chances are they flew there from Mexico or other parts of North America en masse to get to Qatar for a game. They may stick around for the round robin, but a lot of people flying in and out.
Again, this is a bill that enables this tax to be in place for five, six, seven years. FIFA is going to be a matter of a few days, over on the grand scheme of things. So the competitiveness piece has a lot to do with the seven years, not the actual event time frame.
Was there any consideration given to any exemptions or ability for B.C. residents to be able to make claims back on things like this tax if their travelling is absolutely zero related not only to FIFA but to tourism-related, especially in regards to things around medical appointments and those other critical services they have no choice but to travel into the Lower Mainland for?
Hon. S. Robinson: I’ll speak about the competitiveness first. Certainly, what we heard was not so much the competitiveness between, say, for example, Vancouver and Richmond. We’re talking about…. The most would be 2½ percent, which is $2.50 on $100. I think there’s recognition that if you have to take a cab from Richmond into Vancouver, there’s your differential right there.
The concern actually wasn’t competitiveness at all with the jurisdiction. It was more competitiveness with Toronto, with San Francisco, with Seattle, that these were the areas where they were concerned. We did a fulsome analysis at two different points in time to take a look at hotel costs and tax burden and discovered that we were tenth of 15 in terms of tax burden, so we have addressed some of those competitiveness challenges, knowing that it can’t be more than 2½ percent with this bill.
The member also, I think, asked just about the idea of exemptions. Generally, PST is applied broadly, but there are ways in which families can receive a credit. We have the PST credit in the income tax system. As well, travel expenses — for those travelling for medical reasons, there is a tax credit available. That’s really built in.
The reason we do that through the Income Tax Act is really for an operator to have to figure out what the purpose is of travel and how to do an exemption. That is really administratively burdensome. So we do it through the income tax system, which provides the relief necessary.
P. Milobar: Again, maybe I’ll preface my next few questions, which is never a necessarily good thing to have to do.
I fully recognize the intent of this. I recognize that we have gone in with Whistler with the Olympics. This has spanned different governments, and I understand the concept. In fact, we’re not opposed to the concept, but people need to understand how this works moving forward. When we’re looking at things like the designated major event accommodation area, and regional governments can be involved versus a municipal government, if a regional government is the petitioner…? How can I most simply phrase this, more for the public at home? I know the minister was the Municipal Affairs Minister, so she’ll get this.
Within regional districts, you have weighted votes if it’s of a financial risk that could be brought forward. There are some regional districts where a municipality carries the weighted vote. I will use the Thompson-Nicola regional district, (a) because I’m from there, and (b) I was the chair of that board for five years. Kamloops has the weighted vote.
I’ll just use that as an example. We also attract a lot of international events, world championships of all sorts, but they’re not going to necessarily be provincewide international events. When we had the women’s world hockey championships there, all the games were played in Kamloops.
However, if infrastructure was needed to upgrade arenas or things of that nature for an event, based on this, in terms of the definitions and how you apply and who applies…. Because that games could be deemed as a regional financial risk, would that mean that whether the outlying communities agree or not, the regional district, with a weighted vote, could ask for this, or would those be a one person, one vote type vote at a region?
It’s important when we start talking about Metro Vancouver as well. I’m not sure which weighting each of the municipalities have, but they will all have different weightings based on their populations and the number of seats and numbers of votes each person has. As we get into branching this out away from Vancouver to, potentially, a Metro Vancouver MRDT, how is that all contemplated in this?
Hon. S. Robinson: I appreciate the member’s very knowledge-specific question, given that he was the chair of the regional district and mayor of Kamloops once upon a time and that I was minister for local government. Of course, we understand how these things play out, and I appreciate him taking the time to explain it to all the thousands of people watching this riveting exercise at home.
Built into this legislation is the requirement of two ministers to sign off on it as well. So there are some requirements about what it needs to be, in terms of the ask — what the jurisdiction framework is, what the criteria are. This is the exact sort of thing where both the Minister of Tourism and the Minister of Finance have the opportunity to engage, to understand how the decision was made — was it bullied, as the member’s example provides? That helps us understand some of the nuanced challenges that might come with decision-making. It’s for that reason that we put in these requirements as part of it.
I understand the member was, as the…. I will just say and compliment the city of Kamloops. I suspect it was when the member was the mayor. I spent a fair number of Christmas holidays there, at the tournament capital. They do a fabulous job, and they’ve been a fabulous host as a community. They do a great job for bringing those sorts of tournaments — young people to hockey tournaments, in my case — that were tons of fun and tons of opportunity to learn and explore Kamloops.
P. Milobar: Well, thank you. In fact, it started before me, but we do trade markets, so the lawyers in Toronto make sure we stay the tournament capital of Canada. But this is critical, and that’s where I’m seeking for…. I mean, this is where we’re defining things like designated event, major event, accommodation area, the designated recipient, which is important as well.
If I’m hearing the minister correctly, there’s nothing in writing that defines exactly what a local government needs to do to approach the two ministers to ask for approval. So there’s nothing that says you need unanimous support from a regional board if it’s meant to be a regional bid. There’s nothing that says that in the case of disagreement around a regional board, we revert to a weighted vote or one member, one vote. There’s none of that. It’s silent, which I would think has the very real potential, with some boards, to create issues.
So just looking to confirm with the minister that there is absolutely nothing in writing for municipalities or regional governments to understand what the process is for bringing forward a request. Or is there, within the legislation, that I’ve missed?
Hon. S. Robinson: This framework is consistent with the existing MRDT. We used that as the overarching framework for developing this piece of legislation. I know that the member knows, given the previous roles that he’s had, that in other legislation, there are requirements about how decisions are made as a board. If you’re a regional board, this is how you make your decision.
It’s only once they have acted on their required decision-making framework that the Ministry of Finance would work with the Minister responsible for Tourism, Destination B.C. and local communities to develop the policies and the application process for this new major events MRDT. That’s work that is being undertaken, and the policies will be available through Destination B.C. so that everyone has access to it.
Again, it’s really important that we understand the accommodation sector and what they need as part of the process. When communities enter into agreement with the Minister responsible for Tourism, the agreement will need to provide a budget, a proposed major events MRDT rate, the duration of the tax and the information on how the tax will be spent. That will be expected to be part of their application.
Those policies are sort of the high-level components that will be required. Again, working with municipalities, working with the sector, making sure that everybody understands what we’re trying to accomplish here — I know that the member understands what we’re trying to accomplish here — making sure that their voices are heard and are part of building out the tool for that unique event. We recognize that different events will require, perhaps, different rates, different amounts of money, different duration, and those are the elements that would go into working together with communities.
P. Milobar: Within the definitions here in section 1, it definitely talks about the “designated major event accommodation area,” and repealing the definition of “designated recipient” with substitutions. But there’s no definition around what a major event is. I’m wondering why that was not spelled out in definitions so that people don’t make the same mistake the minister made earlier today when she referenced the Grey Cup? I recognize it was an honest mistake, because when people think major event, they think Grey Cup, but that doesn’t qualify. I recognize it doesn’t qualify, but that’s not referenced until clause 12. I’m just wondering why there is no definition of what a major event is. I’ll have more questions to that.
Hon. S. Robinson: First of all, I know I did make an error when I noted the Grey Cup. Its just that there’s a lot of activity happening in Vancouver over the next number of years with the Invictus Games, as well as the Grey Cup, as well as FIFA. That just provides for a lot of tourism activity, and that’s good for the economy. It was within that context that I listed them.
The major events MRDT will be limited to major international tourism events and help bolster provincial tourism and the economy. That’s the intent of it.
Some factors to be considered in consultation with the sector and with municipalities: is it an internationally recognized tourism event? Does it have potential to draw significant out-of-province tourists and media attention? Does it bolster tourism, employment, social and economic benefits for people and businesses in this particular community and elsewhere in the province? Do they have a solid business case that doesn’t take on unreasonable risks to communities or their partners, and that it cannot be fully supported by existing municipal, provincial or federal support programs that currently exist?
Again, these are sort of the elements that will be looked at and developed in policy. There’s still some work to do as we engage with, particularly, the hotel association, who like the direction of this. They agree with this framework. So that’s where we’ll be building out the greater specificities within that context.
P. Milobar: Well, I guess the queries I have around this, though, are that the other two definitions still have some ambiguity to me. When you go forward with a designated major event accommodation area, and it means an area designed by regulation under section 240.01(1)(a)…. But even that still, when you jump to that area, has a little vagueness to it in terms of how it gets defined. It leaves it open for various avenues. It could be regional, could be municipal — that type of thing.
Again, why not any type of definition, under definitions, of what a major event would be, given that it gets spoken of…? All throughout this bill, it’s referenced. Long before we finally get to clause 12, it’s referenced repeatedly, but there’s no actual definition, which seems a little bit strange. Normally, if a term gets referenced that often, it’s fairly consequential to a bill. There’s a fairly clear definition of it so people know what they’re reading, and they’re interpreting it the same way each time they read it in the legislation.
Hon. S. Robinson: The principles that I just read into the record are the approach that we’ve chosen to take. It provides us with guidelines around how to make the decision about what constitutes a major event.
Legislation, however, is black and white. It either is or it isn’t. We recognize that there are, potentially, a myriad of opportunities. Defining it in legislation means that you don’t have the flexibility to consider events that maybe you hadn’t considered as part of building the legislation. So that’s why we’re going with this principled approach.
Maybe Kidditch takes off in a significant way, the kind of draw that would have an international appeal and impact, but right now it might not. So we wouldn’t…. It might not be considered if it was in legislation.
Again, a principled approach was the decision to help define what constituted a major event so that, into the future, there’s an opportunity to be flexible, whether it’s a future Olympics or a Pan Am Games or international junior women’s hockey, which I think is growing in appeal. These are the kinds of things that we’re thinking about and what that would look like. Going with a principled approach about what constitutes a major event is a more flexible and adaptable way to go than defining it in legislation.
P. Milobar: I guess, really, it’s about consistency of the language in a bill.
Repeatedly, it talks about a major event, major event, major event. It’s not until you get to page 5, on 2(b), that it is now a “major international tourism event.” It’s actually the minister’s discretion whether to allow an application to proceed, or not, for the MRDT.
I guess I’m having trouble understanding why there was not consistency in how it was described all the way through. I say that with the backdrop of…. When the bill was first introduced, the first questions I had…. We have the Scotties in March. We have the Memorial Cup in May. Would those qualify? No one knew for sure. We haven’t read through that quickly to that one line in the bill. So there is confusion out there in terms of what qualifies or doesn’t qualify. It will lead to further confusion.
Has the minister considered, or is the minister willing to consider, adding in the word “international,” at a minimum, everywhere we see “major event” so that there’s consistency and people understand it’s a major international event? It’s not a major event. As the minister has rightly pointed out, there are a lot of major events in a lot of communities that people take a lot of pride in, but it doesn’t mean it’s international in scope or even would come close to meeting this test.
Hon. S. Robinson: The member was asking about what constitutes…. What’s the definition, and why does it appear in the legislation as it does?
Before I get into that…. I haven’t had the opportunity to talk about the number of programs that are available for non-major international events. I think it’s really important for communities to know that there are tons of resources available to them.
The existing MRDT, which is not before us right now — this is the one that currently exists — is available and has helped the B.C. Summer Games in Abbotsford, Nanaimo, Surrey, Kelowna, Kamloops, Cowichan and Trail and the Winter Games in Kamloops, Penticton, Terrace and Kimberley. If I recall, I think I was in Prince George for some of the Winter Games once upon a time. World Cup alpine skiing. There’s certainly the existing MRDT that’s been helpful in helping communities carry that on.
The sport hosting program is also available. That’s the Olympic basketball qualifier in Victoria in ’21, Skate Canada in 2021, the Para-Snowboard World Cup at Big White in ’22, the Junior World alpine championship in ’22, women’s curling in Prince George in ’22, Canada Cup wheelchair rugby in Richmond in ’22 as well as the Billie Jean King Cup. That was tennis in Vancouver. You can see there are lots of opportunities for hosting a range of events.
This tool before us is a very unique tool. It’s different from these other ones because of its scale, scope and international appeal.
In terms of the member’s question about the definition. I was checking with our folks in terms of the drafters. They make the determination about how to use the language, where it goes, in what order, based on their legal expertise. I will note that there are other tax statutes that have definitions sprinkled throughout — some at the end, some in the middle. The policy, of course, is set by cabinet, the direction by cabinet. But the drafters, these legal experts, make the decision based on how to best communicate, within the actual bill, within the legislation, that makes the most sense.
Having said that, I take the member’s comments very seriously around how important it is that the materials that accompany the legislation, our engagement with destination boards that exist throughout the province and our communication with local governments about this tool…. It is going to be really critical that we communicate the international component of this.
I appreciate his feedback. We’ll make sure that our publicly available material, even though…. Yes, the legislation is publicly available, but I think very few people go to the legislation in order to understand what’s available to them as a tool to help raise revenues to host international major events.
We’ll be making sure that we are consistent in our definition and that everybody understands the parameters for this important tool.
P. Milobar: Well, I can appreciate…. By no means am I trying to besmirch the professionalism of the drafting department and those drafters, but errors happen. That’s part of this process. They’re honest errors. They’re sometimes just typos. This is not a typo, obviously. But they do happen.
We just had a transportation bill this session that had only 16 clauses, and three of them had errors in them. We have a health bill that has been worked on by all parties for the last four years. Three clauses, right on the first day, were found to have errors and needed to be stood down so the Minister of Health could look at them further and come back with corrections. I’ve had, when I was the Environment critic, bills where there were repeated errors, and the Environment Minister had to come back in with amendments.
That’s pretty common in this place, actually. They’re just something that gets missed, and part of the opposition’s job is to put a critical eye to this.
Again, I guess my question would be: why the apprehension about inserting “international” where we have “major events” written throughout this document, and only having it once in the whole document? I’m not wishing to jump forward to clause 12, but there’s no way to talk about what’s in clause 12 other than when we’re talking about definitions right now. Why would it be seen by the minister and her staff here today to be a problem to provide greater certainty, greater understanding for anyone that reads this to very quickly understand…?
Again, I appreciate all the other programs the minister talked about and all the events that happen. I’m well acquainted with them. Most municipalities are. That’s not what this legislation deals with, and that’s what we’re actually dealing with today.
This is about municipalities thinking they may or may not — or people putting bids together thinking they may or may not — have a viable way forward and potentially going through a reasonable amount of work before they realize that what they’re doing is not workable. So if they read it right on the front end of what a definition is, or at least the “international” smattered through everywhere they see “major event,” it would become very clear very quickly that what they’re trying to host would not qualify for Bill 42 and these amendments.
Hon. S. Robinson: I’m looking at some faces across the way and trying to interpret. Again, I’ll reiterate that I did check with staff, and there were no errors or omissions. I appreciate the due diligence that opposition does. I do remember those days around making sure that bills were read appropriately. This is the recommended approach by the drafters.
I do think it’s important to recognize that the bill is a whole. You can’t just read part of a bill to understand all of it. You do need to read all of it. So that’s, I think, really critical. But I also think the more critical element is that having this legislation gives us the ability to then communicate with all of those…. I’m thinking about my time in local government and looking at host programs. I didn’t go to the legislation to understand that or go to the legislation to understand MRDT. That’s not where you go. You go to the ministry responsible to learn more. You go to the website that explains it.
The drafters had a rationale for drafting it as they did, but I also appreciate the member’s emphasis on the importance of making sure that everybody understands what it is that we’re talking about for this important tool.
P. Milobar: Just for the minister’s knowledge, it’s just that in the main chamber, the House, the Government House Leader brought in closure on the four bills, including the two housing bills, that were just introduced yesterday, so things are getting a little heated as people realize that their debate time has been severely restricted. That’s what the hullabaloo was there.
I think I’ll move on then. The minister is not willing to do that. I’m not a betting man, but given that we get outvoted two to one, an amendment seems highly unlikely to succeed, so I’ll just continue on.
In terms of the designated recipient, though — again, I referenced this earlier on — a lot of the problems around MRDT issues on jurisdictions that either didn’t accept them right out of the gate or have been slow adopters of them was always the worry of accommodators around who would control the dollars and what the dollars would actually pay for and be used for.
I recognize that as the flow-through to a city gets collected, it gets sent to the city, and then it’s up to the city to then turn it back to the DMO — at least, that’s how it works in Kamloops. But in this case, we’re going to have an additional tax being collected. Is that tax…? Is this spelling out very clearly, then, that that tax is levied by the hotels, collected and sent in to the ministry, and the ministry will then turn that back to the city or the regional district with zero expectation that any of that money needs to go to the tourism board in that area?
[D. Coulter in the chair.]
The Chair: Minister.
Hon. S. Robinson: Chair, thank you very much for the recognition, and welcome to the fascinating activity here.
The MRDT that the city of Vancouver currently has is at 3 percent. That 3 percent goes to Destination Vancouver. This additional MRDT, the proposal before us, as well, will go to the city of Vancouver. It will be collected as part of PST. It will flow through directly to the city of Vancouver for — we’ll use FIFA as the example, because I think it’s the one that we’re all most familiar with — any of their costs related to hosting the FIFA games.
Part of the expectation…. When communities enter into an agreement with the minister responsible for Tourism, as I had said before, they must provide a budget, a proposed major events MRDT rate, the duration of the tax, as well as information on how the tax will be spent. That’s part of their proposal, so everybody knows up front. Specific uses will be noted in regulation, still part of the consultation work that we’re doing with the city.
As well, and I mentioned earlier, the hotel industry asked for transparency. That was really important to them, to know what was collected and what the tax was spent on. That’s also part of the expectation so that everybody understands what this tax generates and what it pays for as part of hosting those sorts of games and international major events.
P. Milobar: Welcome, Mr. Chair. Let’s see if we can get things as lively as the big House. How about that?
We’ve dealt with a lot to do with the Olympics and things like that, so I think that’s been well-canvassed, but if we really drill into this being much more of a FIFA-focused bill, a piece of legislation, the minister keeps referencing Vancouver. Is the expectation from the minister that this will be just the boundaries of Vancouver when it’s implemented, or has the ministry already been having discussions about making it a broader regional or multiregional district–type approach to this?
Hon. S. Robinson: I neglected in my previous answer to draw attention to section 12. I know that we’re not there yet, clause 12, but the purposes are listed as part of that clause, so the member can take a look and, perhaps, may want to ask a few more questions when we get there.
It’s up to the municipalities to ask the province. It’s their determination. At this point, we have only heard Vancouver. They’ve been the only ones who’ve approached us, and that’s who we’re working with.
P. Milobar: The modelling. My understanding of the modelling of this bill was around $11 million to $14 million per percentage of hotel tax collected per year, but that was just for the Vancouver proper area, within the municipal boundaries of Vancouver. Has the ministry done any modelling, then, as to what a broader, say, Metro Vancouver tax would bring in per percentage?
Hon. S. Robinson: We only had the request from the city of Vancouver, so that’s why the analysis is the city of Vancouver. We’re prepared to work with whoever chooses to make a request and meets the criteria. That’s part of why we’ve created some legislation that is not necessarily specific to FIFA, even though we’re using that as the example. Previously, in the previous government, they created a tool specifically for the Olympics. It did its purpose.
We’re just capitalizing on that important work and bringing it forward for this next international major event, but also recognizing that if this is the second time we’re bringing this to fruition, there might be future opportunities. That’s why we’re creating it in the way that we’re creating it, so that other municipalities or regional districts can choose to come forward, as a region, in order to be host to a major international event.
P. Milobar: Just to be extra clear, in terms of the designated recipients and areas within these definitions…. I recognize some of this might overlap in future clauses. Don’t worry, as I’ve demonstrated on other bills, I’ll move along. I don’t want to miss the window to ask the question. That’s all.
I recognize there can’t be a laddering based on events, so you can’t have Invictus and FIFA. But can there be that laddering if one event is strictly the city of Vancouver and their municipal boundaries and a second event is Metro Vancouver, and it’s a regional-led event?
Hon. S. Robinson: I appreciate the member’s question. It is an academic question. When I think about the legislation and the process for supporting communities to deliver these major international events — and how do you ladder or can you ladder — these are the kinds of things that, as Minister of Finance, the Minister of Tourism would have to engage with the sector on, particularly the hotel sector in terms of their capacity to deliver, to actually be available. It’s not even whether or not they could generate the revenue. It is: could you…?
We’ll use FIFA as an example. Hosting FIFA, Vancouver will have all the cost, but the Metro Vancouver region, hosting the Invictus Games at the same time, if I can use those examples…. It wouldn’t be logical to do it, and it wouldn’t make sense, partly because there’s a capacity issue and partly because the industry wouldn’t necessarily support it. I’m not sure that it would be in the best interests of British Columbia to do simultaneous in that way.
While I appreciate the question, the fact that two ministers need to sign off, making sure that it makes sense, I think that’s the way to deliver on this tool that local governments can choose to use.
P. Milobar: Well, it’s academic only because of the two ministers, but two ministers and governments change. Both governments change but also ministers change. On December 7, we could have two totally different ministers. We might not, but we very well could, right? That’s just government. Its nothing personal, that’s just the way it works.
So you have regional districts, which are officially a different level of government than a municipality. They are two different taxing authorities, and they’re two different constituted elected boards, albeit they get appointed slightly differently, obviously. But when a municipal director is sitting at a regional district board, they are there and they’re carrying the liabilities of that regional district, not their municipality directly. They are two different governing entities, and you have up to 2½ percent…. So there’s two different ways things could be laddered. They could be laddered and take the extra space, or they could be laddered if there is no extra space and have a separate tax.
When the minister uses the Invictus Games and FIFA, those are probably two, actually, very good examples, because the Invictus Games are spread out more, while FIFA is very much central at B.C. Place. The Invictus Games are also in Whistler, so you have yet another jurisdiction that, technically, should be able to put a case together to say why, at a minimum, they should be able to.
What conversations internally have gone into the machinations of these large international events that do overlap? I recognize they only overlap in the taxation world. They don’t overlap in the real time, but they’re going to overlap. The city of Vancouver could be collecting this FIFA tax while the Invictus Games are on. So the people coming for the Invictus Games will be paying the tax to actually pay for the FIFA infrastructure, not for the infrastructure they’re using. Whistler could wind up left out in the cold, so to speak, not being able to get this because, technically, there’s already a big event going on within that same geographic area.
Again, within these definition areas, what certainty or clarity is there around the laddering around the defined areas and the potential laddering of actual two different levels of government within the same framework of an area?
Hon. S. Robinson: The member’s example, if we would just work with that for a moment, is where Vancouver, as a host city of a major international event, comes to the province and says: “We’re interested in hosting this particular event. It has a provincial impact, it’s good for the economy, and it meets all the criteria.”
Whoever are the Ministers of Tourism and of Finance, and regardless of who’s in government, we believe that they’ll be responsive and responsible and do all the right things that are in the best interest of the province, that they’ll make a decision and that, if it meets the criteria, they will support this additional MRDT.
If another jurisdiction, like Whistler, also is interested in hosting a different major international event and there is that overlap, that’s fine; they, too, get to make the application. They are able to do that, with this legislation. It will be up to the two ministers of the day to make sure that it meets the criteria and that it will deliver what it’s supposed to deliver to help Whistler, just like they did in 2007, meet the additional costs that come with hosting a major international event.
While it might not happen very often, or if it happened rarely, it certainly could happen, and that’s certainly available to the communities.
P. Milobar: Just to be clear, then, there’s nothing to preclude…. Now, this is all on the assumption, as the minister has been referencing all day, that Vancouver has been in discussions, predominantly, for the FIFA.
The areas outside of Vancouver that will also be playing host and helping out with the Invictus Games will incur some costs, and the games themselves will incur some costs. So there’s nothing in this that would stop a different designated area from being created, for the Invictus Games, that would include Whistler and those areas of the Metro area that aren’t included in the FIFA tax.
In other words, you may have Richmond collecting the tax and Vancouver collecting the tax. Richmond’s is going to Invictus Games; Vancouver’s is going to FIFA. There’s nothing to stop that with this legislation?
Hon. S. Robinson: As long as they meet the criteria, there’s nothing that precludes that.
P. Milobar: If Vancouver can convince the Metro area to jump on board with the FIFA bid, or hosting…. It’s not a bid; they have it. It would be understandable, and I would get that. That would not stop, then, Whistler from just having a siloed Invictus Games tax, if they wanted to try to cover off the Whistler portion of the costs of hosting the Invictus Games?
Hon. S. Robinson: If Whistler or any other jurisdiction, as is laid out in the legislation, came forward and they met the criteria, then of course, the two ministers would consider it.
P. Milobar: Just to kind of wrap up this area on the section….
If I’m hearing correctly, the Olympic committee still has the potential to be able to talk to municipalities and see if there’s a way forward for municipalities that aren’t captured by a potential FIFA tax on this. At the same time, any municipalities that may have dealings with the Invictus Games and that aren’t captured, potentially, by the FIFA tax would have the potential to put a package together to bring forward to the ministers after this hits royal assent on Thursday.
Hon. S. Robinson: Again, I’ll read into the record what I had said before. This applies to all communities and jurisdictions.
When they enter into an agreement with the Minister of Tourism, the agreement needs to provide a full budget, a proposed major events MRDT rate, the duration of the tax and information on how the tax will be spent. Any jurisdiction is able to put that application together, as long as it meets the criteria, as a major international event. It has to, certainly, make sense in the context of the event.
Whoever it is that is interested in pursuing that and working together with a local government…. That certainly would be considered by the two ministers that would need to sign off on it. That’s what’s here before us.
P. Milobar: Just one other question, I guess, in this area, given recent events. Is there anything in the criteria, especially…? I mean, frankly, as it relates to FIFA, we’ve seen now where there has been a banning of wearing rainbow armbands and things of that nature.
Are there any provisions that guarantee, if the province is going to enter into anything like this to fund an organization like FIFA, that requirements such as those — well, you can’t stop them from requesting them — will not be acted upon?
Hon. S. Robinson: First of all, I want to join with the member in reflecting on some of the, I think, inappropriate behaviour and choices that we’re seeing at the FIFA games right now. But I also think and get comfort in knowing that we have our own Charter here in Canada, and we have human rights legislation here in British Columbia. I know the expectation is that no organization will engage in discriminatory behaviour under our laws here in Canada and here in British Columbia. So I do take comfort in that, but I appreciate the member’s question very much.
The bill before us is a tax bill that municipal governments and regional districts and jurisdictions have asked for. There’s nothing specific to any organization that this responds to. So it’s really a relationship with a local government or jurisdiction to raise revenues to help them host a particular games.
Having said that…. I appreciate the member’s question, because we do have that requirement they provide us with information on how the tax will be spent. If it is proposed to be spent on something that would go against our laws here in this country and in this province, then that would certainly raise a flag to us about how we ought to respond to the requests. That is in there, but as I said earlier, this isn’t related to any one particular event organization. This is really an opportunity for local governments and jurisdictions to raise revenues that they need to host international major events.
Clauses 1 and 2 approved.
On clause 3.
P. Milobar: This seems like a fairly straightforward section in terms of the maximum tax rate being imposed at 2½ percent. And again, this is about people paying it. Again, I just wanted to move off definitions so that the minister knew I would actually be moving off definitions, but I have a few more questions around the overall tax, collection and stuff. Again, I recognize if it’s a different clause. Bear with me, but I won’t be redoubling my questions.
In terms of the 2½ percent, that seems pretty straightforward in terms of that and that the local government will get to assign it, whether it be 2 percent, 1 percent, 1½, part of that business plan they present to the ministers and sign off on. Once that plan is signed off on, is there flexibility to either increase or decrease the rate if it’s not collecting the revenues that were originally projected to be collected in the time frames that would already be within that business plan?
Hon. S. Robinson: Clause 12 is where there’s more of this detail. I’m happy to respond to it now. If the major events MRDT doesn’t generate sufficient revenue to pay bills that it’s supposed to pay for, then the jurisdiction can request an amendment to the regulation to adjust the rate — up to 2½ percent is the maximum — and/or the time for collection. So both of those are available for consideration.
Clause 3 approved.
On clause 4.
P. Milobar: Again, it’s just wanting to make sure we cover these all off. Based on that last answer, we have a situation right now where FIFA…. Now, we’re never going to get accurate numbers out of Qatar — I think we can all agree on that — or even a semblance of accurate numbers, but I think it’s widely recognized that costs far exceeded what anyone was thinking was going to happen.
I recognize and appreciate that in Vancouver’s case, we have a brand-new mayor and council coming in that have inherited this event. Some things may or may not have been as well known, maybe, or talked about within that bid, but it’s sounding like the costs are rapidly much higher than what people were originally thinking with the Vancouver FIFA hosting opportunity. A tax like this makes sense in terms of trying to reclaim some of those dollars back.
Much like the tax rate adjustment, what provisions are there within the business plan or the ability…? Let’s use a round number. Vancouver comes forward and says: “We’d like to collect $150 million to be able to pay for X, Y and Z.” They go out, and they finally price X, Y and Z officially and start getting tenders, and it comes in at $200 million. Do they have the ability to add either length of time or increase the taxation based on those new and updated, ballooning costs?
Hon. S. Robinson: Yes, as long as they stay below the cap, which is 2½ percent.
P. Milobar: Then are they also able to amend the business plan to include things that, maybe in the here and the now, they didn’t realize they had to do. And then FIFA asks for more, and they have to expand it because they need…. You know, they actually estimated the costs of the things they thought of in their business plan accurately, but three extra VIP areas get asked for that they weren’t expecting to have to build or design, and those now need to be paid for. Do they have the ability to amend the business plan that way?
Hon. S. Robinson: I know the member is asking good questions, given what we have seen happening in Qatar. That’s why, in the work that we’ve been doing…. That’s why we do ask that municipalities come to us so that we can do more analysis and make sure that when they put together their business plan, there is a really robust contingencies acknowledgment — given the experience this province had, for example, with the Olympics and other events, recognizing that oftentimes things happen that are unaccounted for.
There is the opportunity for them to make the request for reconsideration of the length of the tax, the rate of the tax, as long as it, again, stays below the cap.
P. Milobar: It sounds like the business plan is really the best-guess document, because it’s got the ability to be amended based on cost escalation, revenues not matching expectation, scope needing to change. So that transparency and certainty that the hotels were talking about may exist, in theory, with the first document, but in fact, it has the ability to be amended at will as things keep evolving.
Again, we’re talking about a potential seven- to ten-year period that this tax is in place, so it’s really a guiding document. It’s a guiding business plan. It’s not so much set in stone and “these are the parameters you have to live within regardless of what unfolds.”
Hon. S. Robinson: The municipality or jurisdiction that applies for this additional MRDT is required to be transparent, as we’ve said. They need to report, every year, moneys that they’ve collected through this additional MRDT and how money is being spent so that everyone is well aware of how these resources are being used. We also recognize — and we’ve always stated — that the industry needs to be engaged.
Should there come a situation, unanticipated costs, similar to what happened, for example…. I’ll just use the 2010 Olympics, where security costs ballooned in ways that I know nobody anticipated. It can happen, which is why we want to make sure that there’s a healthy contingency in the planning so that the need to come back with a new business plan is minimized as much as possible. But we recognize that sometimes, there are unforeseen circumstances.
It’s within that context that they can’t just come back. It’s not just a blank cheque. They need to rebuild their case. They need to do the proper consultations. They need to be transparent every single year that they’re collecting this tax. The idea is that we can see and monitor what’s happening and what’s going on. As well, they need to work with the province, the city and, in this case, PavCo, because things will be hosted at the stadium. Again, it’s not like they’re working in isolation of all these other partners. So there’s lots of coordination that needs to happen.
Again, we’re talking about a major international event. That means there will be multiple partners, because no jurisdiction or local government will be able to carry it on their own, so there’ll be lots of eyes on these sorts of things that could, potentially, risk a budget when you’re engaging in this kind of hosting.
P. Milobar: I’m just wondering, then, if we get clarity around that business plan and the potential for those cost escalations and things of that nature. I’m going to use the word capital, just in the built sense of the word, not on what maybe the accountants of the world would consider — a slight renovation or this or that, whether it’s booked as capital.
When the minister says security costs, things of that nature, I consider that more operational. When I think of capital for an event like this, I think of things needing to be built or renovated, either permanently or temporarily, for the event.
Do the criteria contemplate that the business plan can put forth costs for both? In other words, those operational-type costs can be covered off by this tax, as well as those bigger costs — permanent or physical structures.
Hon. S. Robinson: The answer is yes. That’s part of what makes this unique. We recognize that there are often capital costs, as the member described it, but there are also unique operational costs to hosting this sort of event. So this is a tool that local government can use to do that.
Just as an example, because we’re in a high-inflationary time, we’re working together with the city to make sure that they account for the inflationary pressures that hosting this kind of event could have on a budget so that everyone is fully aware, so that they don’t have to come back. I don’t think anyone wants….
We want to be as accurate as possible when they take a look at putting their plan together, and we want to make sure that it is as accurate as possible and that they have the resources and can generate the revenues that they need to participate in this exciting event.
P. Milobar: In clause 3, it’s talking about the application and that of the tax. Obviously, whatever the start date is, is the start date, and that’s when someone staying in a hotel room would have to start paying it. But the end date would, I would assume, be captured in that same time frame. At that point, everyone would know what the start and end dates are.
If my understanding is correct, then if it’s scheduled to go for seven years, but those unexpected costs invariably show up, it could be extended. The minister responsible at the time, on year 6, could agree to another three- or four-year extension.
Interjection.
P. Milobar: Yeah. I hope I’m not still in opposition that long.
You could actually extend this out longer then the original agreement that says seven years. It could get extended out further if the ministers agree to do that.
Hon. S. Robinson: As I said before, they would certainly need to make the request, demonstrate the case for it. It would come to the ministers, and it would go to cabinet for a decision.
I also want to point out it’s also possible that revenues could be collected faster than anticipated, and the tax could be turned off sooner. If the bills are paid, as laid out in the business plan, if they’re paid sooner and if the revenue’s collected sooner, then the tax can also get turned off sooner.
P. Milobar: I thought the sky was still blue outside, but maybe it’s not. I’ve not known many governments to wilfully do that, but we can always hope.
I guess the question, then, is to that end. Again, I recognize this is the first cut to kind of build upon what was allowed for Whistler to do. But if there’s this much flexibility in terms of time frame, in terms of rates being adjusted up or down throughout the course of it, in terms of what’s defined as a cost being expanded, the anticipated expense going up or down and being able to keep readjusting things, is there any thought or move or discussions still underway, then, piggybacking on this legislation, to try to add in, again, those other tourist operations?
In particular, what I’m thinking is YVR. Unless people are taking the steamship and train to get here from Europe and other parts of the world, everyone’s flying into YVR — everybody. Maybe Abbotsford as well. I think my partner from Abbotsford South, after his two-minute statement, would get mad if I didn’t reference Abbotsford.
There are airline levies on all sorts of things — on tickets, from doing capital works around airports and things of that nature. It’s not uncommon. It’s very common, and it’s a very defined, easy-to-capture revenue. Is there the ability, under this, for municipalities, through discussion with a YVR or an Abbotsford, to expand this into, by agreement, things like an airport, to try to capture some dollars from that tourism side of the spectrum?
Hon. S. Robinson: I appreciate the member’s creativity and thinking outside the box around revenues. The tax bill that is before us is an accommodation tax. It’s designed around accommodation, so it doesn’t have the ability to be applied to items beyond accommodation.
P. Milobar: So then, just to clarify or to make certain, based on the accommodation…. This does also apply to the Airbnb style accommodations of the world, out there, within the same designated geographic area.
Hon. S. Robinson: Yes.
Clauses 4 to 11 inclusive approved.
On clause 12.
P. Milobar: It will probably shock the minister where I’m going to go with this one. We finally got to the part in the bill where it actually talks about international tourism events.
In (2), it’s, “The Lieutenant Governor in Council may not make a regulation under subsection (1) (a), (b), (c) or (d) unless,” then the (b) of that is: “the minister is satisfied that there is to be a major international tourism event in or near the proposed designated major event accommodation area.”
I guess the question to the minister is…. Again, it’s around those definitions. I raise that because right after this bill was introduced, we heard from communities in the Okanagan where they have international wine festivals. Surrey has an international softball event. Now, I recognize that as to what the minister has been saying today, those would not meet the test. That’s why definitions start to get very important, in terms of what meets the test and what is left for interpretation.
Again, maybe just to head some of this off…. We just had the minister…. Where can municipalities and event organizers go, once this bill is passed, to get a better sense of what exactly it is they should be looking at as to whether this is the right fit for them, keeping in mind…? We all recognize there are all the other provincial programs and stuff out there as well. This is about this specific one.
Hon. S. Robinson: The work that we’re undertaking around just the policy development, which I spoke about earlier, will also involve local governments, as well as industry, as part of the policy development that needs to happen. Then from that, we’ll be able to design the application that is needed in order to put forward a request for consideration.
All of this will be hosted by Destination B.C. They’re the folks that currently steward the MRDT. All of the information, all of the consultation, all of the information-gathering that local governments might need resides with Destination B.C. They know their business. That’s currently how a jurisdiction can apply for the regular MRDT.
This is just another piece, an additional MRDT, that is very specific for international events that have a potential to draw significant out-of-province tourists, media attention. It bolsters tourism, employment, social and economic benefits for people and businesses in the community and elsewhere in the province. They have to have a solid business case, of course, as part of that.
That will be part of what Destination B.C. will be communicating to the various jurisdictions as they do their due diligence in identifying the numerous opportunities for funding that I listed earlier for the member. I know that he knows what those all are because he has taken advantage of them when he was the mayor of his community.
The process will be to identify: are there existing funds that make sense? And if this is a unique opportunity that has global opportunity for us as a destination, that has significant impact for the province as a whole, then this would be the tool that they ought to consider and work with the province on.
P. Milobar: I’ll jump into (7) in clause 12. I’m going to read it, and I’m going to take my time with it because it gets a little convoluted. I apologize in advance if anyone has the word “designate” on their drinking game. They might want to stop their drinking game at home when I read this section out.
“Despite section 240 (5), the Lieutenant Governor in Council may designate a designated recipient for a designated major event accommodation area that is different from the designated recipient designated under section 240 in relation to a designated accommodation area that is designated as all or part of the designated major event accommodation area.”
Could the minister please explain to not just myself but, I think, everybody just what the heck that clause actually means? I’ve read it 16 different ways, and I am thoroughly confused as to who is designated what.
Hon. S. Robinson: Gotta love lawyers and the legal language that they use to make sure that they’re not vague, and then you read it, and you can’t understand it because it’s designated language to help you be very specific. I think the way to describe it is to provide an example that I think might be helpful.
A designated area like Vancouver has a current MRDT, 3 percent, that is designated. The recipient of that goes to Destination Vancouver. That is who receives that, and they do the tourism marketing as part of that collection. That’s what that MRDT delivers for them and for the city.
What this says is that this new MRDT for major international events…. The designated area, Vancouver, can designate the revenue from this tax, from this MRDT, to the city of Vancouver, which is a different designation, so they get sent to different places. I apologize on behalf of the writers of legislation and the lawyers who do that important work.
P. Milobar: All right. So with (6), as I read it, this would be the section, then, that we talked about previously, where if it’s Vancouver boundary that is the only one collecting the tax for FIFA, that would open the door then for the surrounding area of the Metro area and Whistler to either seek out revenues for the Invictus Games or that surrounding area — Whistler, Kamloops, Sun Peaks and others — to seek out the revenues for an Olympic Games.
Hon. S. Robinson: It all comes back to meeting the criteria. This is a tool, again, that we’ve put in place, just as it had existed as a one-time, as a one-off, for Whistler that in 2007 was helpful to the resort municipality of Whistler. So this is a tool that we’re bringing back to life.
The city of Vancouver asked for some help in trying to sort that out. So we used a tool that had been used previously, but we’re designing it so that it’s available to municipalities and regional districts for any future international event opportunities that meet the criteria. So yes, they can put together their case and make their plan. As long as they meet the criteria, it can be considered.
Clauses 12 and 13 approved.
Title approved.
Hon. S. Robinson: I move that the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 3:58 p.m.
Committee of the Whole House
BILL 38 — INDIGENOUS SELF-GOVERNMENT
IN CHILD AND
FAMILY SERVICES
AMENDMENT ACT
The House in Committee of the Whole (Section A) on Bill 38; D. Coulter in the chair.
The committee met at 4:05 p.m.
On clause 1.
K. Kirkpatrick: If I might just say a few things as we move into this, just to thank the minister and her staff and all those behind the scenes. I know this was an exceptional amount of work. It took a long time to bring this bill forward. I’d also like to extend my thanks and appreciation to all the Indigenous groups and nations that have provided feedback and comments and those who are actually now watching us very closely to see if we ask the right questions and we get the right answers.
We fully support the spirit of this legislation. We’re here to ask questions on behalf of the official opposition, but more importantly, we’re here to ask questions on behalf of Indigenous peoples across British Columbia and their children. We must ensure that this legislation truly represents reconciliation and that all those impacted have been fully and actively consulted, having been given ample opportunity in its creation.
So thank you very much. I am going to, actually, based on the nature of the initial part of clause 1, pass to my colleague the MLA from Langara to start the questions.
M. Lee: Given the significance of Bill 38 and the time that we have, I do hope that we will have the full opportunity to review at the committee stage the full bill.
I know that, as we speak, in the other chamber — I was just speaking to Bill 39, Judicial Review Procedure Amendment Act, which is also referred to in this Bill 38 for some of the joint decision-making agreements as we look at the greater responsibility going back to Indigenous nations for the care of their children — that bill is brought to closure. I hope that even on that bill, we’ll have an opportunity to review at committee, although that’s unknown as we speak.
I hope, as we start the discussion on this bill and the significance of this step forward, that we are provided with the opportunity by the new Premier and the House Leader to actually have the debate and the discussion on this bill that’s so important.
With that, I’d like to ask the minister: can she identify which particular articles of UNDRIP under the DRIPA act are relevant to what is being done here in terms of making and ensuring the laws of British Columbia are consistent with the articles of UNDRIP?
Hon. M. Dean: I’d like to start as well, if I may, just by saying a few introductory remarks. I want to honour and pay tribute to the process of getting to this point in time and extend my deep gratitude to all of the Indigenous leadership and Indigenous peoples who have been part of this collaborative process. I really look forward to actually seeing very positive and successful outcomes for Indigenous children and youth as a result of this legislation and of its implementation in communities as well.
And I want to say a big thank you to all of the staff. Not everybody is here, but a lot of staff put in an awful lot of work, not just from my ministry but from First Nations leadership as well, and I thank everybody for stewarding us to this point in time. And thank you to all the members who spoke in the House on second reading and for being here and working with us today at this stage of the process as well.
Under the Declaration Act, we need to make sure that our amendments under the CFCSA are interpreted and administered in accordance with the principle that Indigenous peoples have an inherent right of self-government. What we’re doing here is harmonizing provincial and Indigenous child and family service laws so that we uphold our province’s commitment to implementing the United Nations declaration on the rights of Indigenous peoples through the Declaration Act.
What that means in practice is that our expectations and standards of consultation and engagement are very much elevated. In the spirit of working very closely and collaboratively, we consulted on the proposed policy scope with Indigenous partners, and we sought to include amendments that partners identified as priorities for this legislation here in the fall of 2022.
We also pursued a legislative collaborative process with the five Indigenous governing bodies who are currently pursuing coordination agreements and with modern treaty nations, the First Nations Leadership Council and other rights holders who expressed an interest in these proposed amendments. We shared multiple consultation drafts of the proposed legislation with these partners during our legislative development timeline, and our partners provided multiple rounds of feedback and insights into the whole of the process in a verbal format and in a written format as well. We considered that and incorporated that into where we are at today.
This proposed legislation relates to these following articles of the UN declaration:
Indigenous peoples right to exercise self-determination and self-government in relation to their internal affairs.
Indigenous peoples have the right to their own institutions, laws and customs.
Indigenous peoples right to not be subject to forcible removal of their children.
Indigenous peoples right to not be subjected to forced assimilation or destruction of their culture.
Indigenous peoples have the right to manifest, practise, develop and teach their spiritual and religious traditions, customs and ceremonies.
Indigenous peoples have the right to revitalize, use, develop and transmit to further generations their histories, languages, oral traditions, philosophies, writing systems and literatures.
Indigenous peoples have the right to participate in decision-making in matters which affect their rights through representatives chosen by themselves in accordance with their own procedures, as well as maintain and develop their own Indigenous decision-making institutions.
States shall consult and cooperate in good faith with the Indigenous peoples concerned through their own representative institutions in order to obtain their free, prior and informed consent before adopting and implementing legislative or administrative measures that may affect them.
Particular attention shall be paid to the rights and special needs of youth and children.
Indigenous peoples have the right to be actively involved in developing social programs affecting them and, as far as possible, to administer such programs through their own institutions.
M. Lee: Thank you for the comprehensive nature of the response from the minister. We will need to unpack various elements of that response, but just focusing on the last part of her response: could she just please identify the number — meaning the article number — within UNDRIP that she’s referring to when she ran through that list?
Hon. M. Dean: Articles 3 and 4, article 34, article 7(2), article 8, article 12, article 13, article 18, article 19, article 22, article 23.
M. Lee: Certainly the minister spoke to…. One of the elements of her response has to do with the elevation of expectation and standard relating to consultation. The minister referred to the term “Indigenous partners,” so let’s just start with that first.
Could the minister provide detail to ourselves as to which Indigenous partners she’s referring to?
Hon. M. Dean: In March of 2022, the ministry sent out a call to engagement to all 204 First Nations. It is one of our MCFD bulletins. We followed that by a dedicated information sheet in April 2022, with the upholding jurisdiction table. The information sheet was also linked to a webpage on Engage B.C. on the proposed amendments. There was also opportunity for public input on the scope of the changes.
The nations we directly connected with were the Indigenous governing bodies — Sts’ailes, Splatsin, Huu-ay-aht, Cowichan, Gwa’sala-’Nakwaxda’xw, Inuit, Modern Treaty Nations, Nisg̱a’a, Métis Nation B.C. and Simpcw First Nation.
M. Lee: Let me just say — I’m just joining my colleague the member for West Vancouver–Capilano, in her opening remarks: we certainly recognize the body of work and the effort that has been progressed through the ministry over the course of some years. I will say that the minister’s response does give opportunity to further unpack the level of consultation, and it does invite two immediate questions.
I appreciate the March and April call for participation and the information sheet that was provided. My first question is: how many Indigenous nations responded to that call for participation and that further step?
Hon. M. Dean: We sent out information in early 2022 to all 204 First Nations, and we continued a series of communications with all 204 First Nations. We shared three separate legislative drafts with 79 individuals from B.C. First Nations and partner organizations. They were all separately invited to provide verbal and written feedback on the drafts. As I said, each round of feedback was given consideration and was incorporated into the legislation.
We also formed a working group with the Indigenous governing bodies. This IGB working group has met biweekly since March, and they provided input on and endorsed the scope of the proposed amendments and the request for legislation.
We also formed a tripartite working group with Canada and the First Nations Leadership Council. I sent a letter to the First Nations Leadership Council in August 2021, committing to how we’re going to work together on legislative and policy changes to transform the services of the ministry. The tripartite working group provided input on and endorsed the scope of the proposed amendments and cabinet submission.
We sent formal letters to Modern Treaty Nations and met with them over 14 times, both one-on-one and as a group, hosted several engagement sessions with their citizens as well — and again, incorporated many of their suggestions into the draft legislation as it was developed.
We also worked directly with Simpcw Nation, and we consulted, as I said, with Métis Nation B.C. and Inuit. Then before the bill was introduced, we actually provided additional briefings to over 25 additional individuals from First Nations on top of that.
M. Lee: Just to work through the minister’s response, of the 79 individuals and partner organizations that she referred to earlier and that received three legislative drafts and, in the last part of her response, of the 25 of what sounded like representatives — those weren’t her words — of other Indigenous nations….
Can I just ask, looking at the number 79 plus the 25, of those, how many nations were those 104 individuals representing?
Hon. M. Dean: Yes. So 29 nations including Indigenous governing bodies and Modern Treaty Nations, plus Inuit, plus Métis.
M. Lee: Just as an observation, I know that as we get through the bill, there are learnings from nations that are Indigenous governing bodies or those like the Simpcw and the Splatsin that have been leaders in the field, so to speak, in terms of the way that they built up their programs and services within their nations.
I appreciate, in terms of the minister’s response, that in the work up of the bill, there was engaged participation, let’s say, with 29 nations out of the 204. But that does mean that, as a result, given the nature of the process that was engaged on, 175 nations have not been directly engaged other than, presumably, the call for participation and the notice letters that have gone out. Is that correct?
Hon. M. Dean: We did the initial call-out, and then we continually, regularly, updated and sent information out to First Nations. We have a mechanism for sending out newsletters and bulletins, so we always made sure that this work was included in that. We had an open call to engagement, so there were plenty of opportunities on Engage B.C. for passing on feedback and getting involved — making requests to get more involved.
Myself and the deputy minister regularly spoke with nations when we had meetings with nations to make sure that they were aware of the work that we were doing — and at engagements as well. When we were invited to larger events or gatherings, then we would make sure that members and communities who were present would also be provided with information there.
M. Lee: I certainly appreciate that, at the high level, there have been indications by this government and this minister about the work that is occurring.
I, as a member of opposition caucus, even before I became the critic, had heard — certainly like the member for Skeena, the member for Nechako Lakes when he was still with our caucus, the member for Penticton and other members who have previously held the critic role, like the member for Kamloops–North Thompson as well — about the progress that was being made in this particular area relating to Indigenous children. But of course that high level of awareness is not the same as the kind of consultation that one would expect for nations involved. The minister has confirmed that, really, what we’re looking at is that direct level of consultation with 29 nations.
I will say that I haven’t had the opportunity, certainly as we go through the committee stage, to look back at all of the articles that the minister named under UNDRIP that this ministry was very aware of applying to Bill 38, as it comes forward. It does include articles 18 and 19, which the minister did refer to in the list, which talks about: “Indigenous peoples have the right to participate in decision-making in matters which would affect their rights, through representatives chosen by themselves in accordance with their own procedures, as well as to maintain and develop their own Indigenous decision-making institutions.”
When I had the opportunity to have a discussion with the former Minister of Indigenous Relations and Reconciliation over five days of committee review on the DRIPA Act with my colleague the member for Abbotsford West, back in 2019, we had a discussion about what that meant. It wasn’t entirely clear, I would say, in terms of the response on Hansard, but we did acknowledge — at least, the minister did cite — the First Nations leadership summit. I certainly have heard when I attended their meetings in October again a report back about the progress.
But again, as we have said repeatedly through all the bills that have come and when we have the opportunity to do so, talking about consultation, it needs to be direct with the rights and title holders, the nations themselves. With the title of this bill, with the subject matter of this bill and given the importance of it, we’re talking about Indigenous self-government.
I’m here, certainly, to join the member for West Vancouver–Capilano in the area around care for children under the Adoption Act and the Child, Family and Community Service Act. But there certainly is more at stake than just that. We’re talking about how we contemplate and how we work to recognize Indigenous laws and the abilities and the rights under our Canadian laws, including section 35, for self-governance by Indigenous nations in our country.
This is the reason why this is not just a particular item that works through the government process. It’s the reason why members of the House have spoken at length about the nature of this bill, the importance of the bill and why it’s important, as we talk about consultation, how that was done.
Let me just come back to another point that the minister relayed in her earlier responses. She mentioned that there were 79 Indigenous and partner organization individuals involved in the consultation through three legislative drafts. First of all, just from a procedural point of view, because this is something that we’ve come to understand, which is the use of the non-disclosure agreements, can the minister confirm that each of those 79 individuals was under a form of non-disclosure agreement?
Hon. M. Dean: Yes.
M. Lee: In terms of the second set of representatives, the 25 that were briefed, I suspect, close to the Hall of Honour and introduction of the bill for first reading that we all participated in a few weeks ago. Were those 25 representatives also under a non-disclosure agreement?
Hon. M. Dean: No, they weren’t.
M. Lee: Does that mean that they were provided copies of the legislation only after the legislation was introduced into the House?
Hon. M. Dean: Yes, that’s correct.
M. Lee: How many nations did those 25 individuals represent?
Hon. M. Dean: It was 15 of them.
M. Lee: I do appreciate the breakdown and walking through this. I think it’s — again, for the reasons that I indicated earlier — why it is important. I do appreciate the effort, the complexity involved here. There are other questions I will be asking around this.
Just to recap, we had two groups who were focused on 79 representatives, individuals, and then 25. As I heard this correctly, just so I can get this clear, of the 25 representatives…. Those 25 representatives represented 15 Indigenous nations.
With the earlier answer, when the minister confirmed that 29 nations were actually involved…. If we subtract 15 from 29, that leaves us with 14 nations that actually were involved with the consultation process, in detail, before the bill was introduced into the House. Is that correct? That would also mean that the 79 individuals and other partner organizations that the minister referred to earlier represented 14 nations.
Hon. M. Dean: Yeah. Our accounting…. We think there were 13 nations that we signed NDAs with.
M. Lee: This does provide us the opportunity now to turn to those 13 nations. If I just focus on three of those nations…. Perhaps the minister can go back through the rest of the list.
Certainly, I have spoken directly to the Splatsin, Huu-ay-aht and the Simpcw nations. I believe those three nations were three of the 13 that signed NDAs with the government and the ministry. Perhaps the minister, in response, can confirm that that is the case and then run back through the list, if she would, for us, of the other ten nations, which I believe also includes, presumably, the Nisg̱a’a and Métis Nation.
She did go through a list. I just want to reconfirm the list. As she does that, perhaps I could just ask her to also comment on the nature of the non-disclosure agreement. Under the non-disclosure agreement…. What did it pertain to? Who was signing the non-disclosure agreement on behalf of these nations, meaning a description of the type of individual involved?
I understand, in some cases, they may be a lead staff member, for example, a so-called subject-matter expert, someone who has been dealing with children in care for that nation over many years, as opposed to a council member perhaps. If she can just generally describe the nature of those non-disclosure arrangements as well.
Hon. M. Dean: So yes, the Splatsin, Huu-ay-aht and Simpcw did sign NDAs.
We had 79 NDAs there with individuals. They’re related to items that are subject to cabinet confidence. They’re signed for a calendar year. This practice is consistent with parliamentary practice. So an NDA will apply to all documents related to the legislation.
It’s under section 12 of FOIPPA. It protects against the disclosure of “information that would reveal the substance of deliberations of the Executive Council or any of its committees, including any advice, recommendations, policy considerations or draft legislation or regulations submitted or prepared for submission to the Executive Council or any of its committees.”
M. Lee: I’m asking two sets of questions at once only to help facilitate the pace of this. Again, Mr. Chair, if the minister could respond to my earlier request to identify the other ten nations by name, beyond the three that I asked for confirmation of.
Secondly, I appreciate the response, in terms of the nature of the NDA and the reason for it. In the minister’s view, understanding of the nature of that NDA, would that preclude a representative of a nation from sharing what that person might be coming into contact, by way of legislation, with their chief and council?
Hon. M. Dean: The other ten nations: Nisg̱a’a, Tla’amin, Toquaht, Tsawwassen, Ucluelet, Uchucklesaht, Cowichan, Gwa’sala-’Nakwaxda’xw, Hul’qumi’num, Snuneymuxw, Sts’ailes.
We were working with individuals in a government-to-government working relationship, so we did expect that when an individual signed an NDA, they might be going back to chief and council to have those conversations.
Some of the individuals were a chief councillor or another political representative from the nation. Some nations were represented by the Indigenous child and family service agency that serves them. It was expected that they were engaging with us on the legislation as representatives and being able to go back and have those conversations with the nation.
M. Lee: Well, thank you for that response. Just on that one point. It may well be that because of the makeup of the nations that were involved and the nations that weren’t engaged before the bill was presented — which may well include, of course, the 15 other nations that were referred to — there have been various concerns raised about consultation and how this process was run. I will say that even amongst the 13 nations….
This is something that I did highlight in my second reading speech and something that was known in the Hall of Honour ceremony. Coun. Theresa William of Splatsin spoke, and the Minister Responsible for Indigenous Relations and Reconciliation actually thanked her for her constructive criticism. That was the way he put it. As I spoke to her, I understood that her nation and the representative who signed that NDA probably had what sounds like a different interpretation of the restricted nature of that NDA. At least Councillor William did not feel like she had the benefit of any advanced discussion, at least until a very short order one.
But I do understand that when I speak to representatives of the Huu-ay-aht and the Simpcw First Nations, they had a similar interpretation that the minister just relayed, which clearly demonstrates that other representatives did understand the nature of the restriction under the NDA that they were under.
Also, both the member for West Vancouver–Capilano, myself…. I know members of the Third Party and others have heard from other nations subsequent or during the presentation of Bill 38 in the House, and there were a lot of concerns raised from nations that they really did not have any understanding of the bill and what was the next step under this bill. Again, there was this dynamic around…. Some thought: “Maybe that’s because we didn’t sign an NDA even.”
I think it just demonstrates what was the precursor for the bill coming across as it was presented. If I can ask the minister, though: since the time of the bill introduction until this committee day, how many nations have come forward to contact the minister directly about any considerations or concerns or input about the bill itself?
Hon. M. Dean: I have only received positive feedback. I have been contacted by people in community and received very positive feedback. The ministry has been receiving very positive feedback as well.
This is really a significant time. It’s a very important moment. Our provincial legislation isn’t just about the nuts and bolts of implementing the federal act. This is us actually demonstrating our commitment to the declaration on the rights of Indigenous peoples here in our province and breathing life into supporting nations exercising jurisdiction for children and families and services for their communities as well.
We regularly connect with nations. We have means of sending information out, but we also regularly connect with nations in the ministry, through lots of different means — different gatherings, different circles — and through relationships and working through a range of different matters that are obviously important to us and to nations as well. Where nations reach out to the ministry, the ministry responds very quickly, because this is such an important area of work. So the ministry has been very responsive.
Nations across British Columbia are at very different stages in exercising their inherent jurisdiction, so the Indigenous governing bodies are representing nations where they’ve been at tripartite coordination tables working under the federal act towards what jurisdiction is going to look like for them.
Other nations have not yet really understood the implications of the federal act. We are hearing now, actually, that many nations are understanding what the federal act is supporting, and there are now 32 groups representing 81 nations which have reached out to the federal government to start the process.
In response to your question about concerns that we’ve been hearing from nations, it’s been very positive feedback that we’ve heard from nations and responding to requests to the federal government to start the process. Our response to nations is: “We’re here, and we’re ready, and we want to work with you.”
M. Lee: I appreciate the reference to the 32 groups representing 81 nations. That is something that my colleague and I had heard in the briefing, as well, for this bill. That’s something we can come to in terms of how this process moves forward, including under the federal framework.
Just back to the original 13 nations that have been involved in the development of this bill, we do know, of course, that nations are at different levels of capacity and resource as well as where they are in this area. Can I ask the minister: was there some sort of resource funding or capacity funding provided to these nations to participate in this process?
Hon. M. Dean: The Indigenous governing bodies who are at coordination tables receive capacity funding through the federal government, but there wasn’t provincial funding for this.
M. Lee: Just to reconfirm, the Métis Nation is not part of the 13 nations. Is that correct?
Hon. M. Dean: Yes, that’s correct.
M. Lee: Just to talk about that here now, what was the consultation process with Métis Nation B.C.?
Hon. M. Dean: Métis Nation B.C. signed an NDA, so they went through the same consultation process.
M. Lee: But they’re not included in the 13 nations because they’re not viewed as an Indigenous governing body. Is that the reason why they’re not included in the 13?
Hon. M. Dean: The 13 nations are 13 First Nations, and using a distinctions-based approach, Métis Nation B.C., we had a separate NDA with, and then, as I said earlier on, we also consulted with the Inuit as well.
M. Lee: Just to take Métis Nation B.C. as an example of an Indigenous nation that signed an NDA, what did the process look like with them in terms of review of draft legislation?
Hon. M. Dean: Well, it was the same process. The Métis Nation received consultation drafts. The ministry engaged with them, and they were able to provide feedback, and the ministry continued those engagements with them.
M. Lee: When we talk about consultation drafts, just to use this as an example, how much time, typically, was provided to a nation to respond to a particular consultation draft?
Hon. M. Dean: From the outset, everybody involved was provided with the whole timetable so that they would be well informed and they would be able to prepare, knowing when drafts would be provided and then when feedback would be asked for.
The longest time for feedback was actually two weeks, but if and when it got towards the end of the process, when timelines were getting quite tight on providing feedback, we would actually have meetings with the nations and with everyone who was involved in the consultation and talked them through what they could expect to see so that there weren’t surprises and they would know exactly where to look for the most recent changes and what would have been different from the previous draft, so as to be able to help them be well-prepared with the resources that they have. They would know what to be looking for. They would know what it would look like in advance.
Then the draft legislation was sent out, so everybody would know when it was going to be arriving and have a really good understanding of what the differences and what the changes in it would be.
K. Kirkpatrick: It’s very difficult for my colleague here with three rooms going, so to accommodate time, I would like to have the Leader of the Third Party have an opportunity to ask questions on this clause and then come back to my colleague.
S. Furstenau: I just have a general question, really, about the difference between the amendments to the Adoption Act and the amendments to the CFCSA.
In the CFCSA there’s a clause in the amendments that says the self-government principle extends to say that Indigenous peoples have “the inherent right of self-government includes jurisdiction in relation to Indigenous child and family services, law-making authority in relation to those services and authority to administer and enforce laws made under that law-making authority,” and “Indigenous laws have the force of law in British Columbia.”
There are no comparable provisions in the amendments to the Adoption Act. Can the minister explain why the Adoption Act would not also recognize that Indigenous laws have the force of law in British Columbia, and that the right of self-government includes law-making authority in relation to adoption and custom adoptions?
Hon. M. Dean: A question of you, Chair. This question doesn’t seem to apply to clause 1. I’m wondering how you would like us to proceed.
The Chair: I’m going to ask the Leader of the Third Party maybe to restate the question in relation to clause 1.
S. Furstenau: Thank you, Mr. Chair. I shall try.
The reason I’m asking is because clause 1 is where the definitions are for these amendments to the Adoption Act. Because there is no other part of these amendments to the Adoption Act, specifically, where I could ask about this, because it’s lacking, I’m asking about it in the definition section.
I hope that satisfies the Chair.
Hon. M. Dean: In clause 3.2 in the CFCSA, it does talk about self-governance….
Interjection.
Hon. M. Dean: Of the Adoption Act. It does talk about self-governance. Adoption is part of the whole continuum of child and family services. So self-government is referenced in that clause.
S. Furstenau: Just for clarification, is the reference in clause 3.2 of the CFCSA specifically about the right of self-government, including law-making authority in relation to adoption and custom adoptions?
Hon. M. Dean: We’re looking at clause 3 of our legislation that we’re talking about today, and 3.2 says:
“This Act, to the extent the provisions of this Act relate to the adoption of Indigenous children (a) who are in the continuing custody of a director of child protection, or (b) in respect of whom a director of child protection is the personal guardian under section 51 of the Infants Act, must be interpreted and administered in accordance with the principle that Indigenous peoples have an inherent right of self-government, including self-determination, that is recognized and affirmed by section 35 of the Constitution Act, 1982 and by the United Nations Declaration on the Rights of Indigenous Peoples.”
S. Furstenau: Maybe I’ll frame it this way, just for people watching, just for clarification and understanding of the expectation of that. The real question that I’m trying to get to is: does it include law-making authority in relation to adoption and custom adoptions?
Hon. M. Dean: What it includes is law-making authority that is relative to children and youth who are in the care of the director.
S. Furstenau: This comes back to the origin of the question and why I’m asking it in the overarching definitions piece of this. Does the minister recognize that this is a pretty critical element when we’re talking about the inherent right of Indigenous peoples and nations and sovereignty over children, and that that would include law-making authority in relation to adoptions and custom adoptions? And is that an expectation that this would be part of this legislation, these amendments that are coming forward?
Hon. M. Dean: Well, when we first were asking for feedback in the changes to the CFCSA, we weren’t considering changes to the Adoption Act.
It was a result of consultation and was the direct result of feedback that we received from Indigenous communities, Indigenous leadership, Indigenous peoples, because there is a link back between the CFCSA and the Adoption Act because of the involvement of the director. It was really important to make sure that there were links in the Adoption Act to the inherent right to jurisdiction. The inclusion of the Adoption Act in these amendments is as a direct result of requests made by Indigenous communities.
Actually, in clause 3…. I don’t know whether we’ve finished with clauses 1 and 2. We are again talking about clause 3.1 here, which actually includes factors that link back to the United Nations declaration on the rights of Indigenous peoples. Those factors there need to direct and guide adoptions.
S. Furstenau: This can be my last question, and I’ll hand it back to the official opposition.
I’m sort of surprised about…. I’m trying to really get to a really clear answer on what I think is a direct question, but maybe I’m not effectively asking it. When it comes to adoption — and we’re looking at these amendments — does it exist right now, or do these amendments address the fact of Indigenous laws having the force of law around the law-making authority in relation to adoption and custom adoption?
I’ll try to expand on this. In terms of adoption and custom adoption happening in a First Nation, the law-making authority would mean that the director actually, I would expect, wouldn’t be involved. That would be, to me, a kind of expectation around what law-making authority around adoption and custom adoption would look like. There would be no involvement of the director of MCFD.
That sounds to me like an extension of what sovereignty would look like. Is that what these amendments would create, and if not, can we expect that to be brought soon?
Hon. M. Dean: Nations can exercise jurisdiction over children and youth in the care of the director. For nations who would be exercising jurisdiction, if a child or a youth is in need of being in care, then it’s unlikely that that child or youth would be in the care of the ministry director. They’d be exercising jurisdiction in the way that they would be wanting to provide those services and those interventions.
What we’re trying to do with these legislative amendments is to impact both of these laws, the CFCSA and the Adoption Act, so that the nations can exercise jurisdiction, so that they can make laws, across the whole continuum of family services. It’s safeguarding adoption and family support. Nations will choose where they want to focus and where they want to prioritize their law-making.
That’s the intention: to be supporting nations in exercising jurisdiction, in making their own laws that govern how their children and youth and families — and ultimately, community — are served.
The Chair: The committee is going to take a short recess for 15 minutes, and we’ll come back at about 5:57, something like that. Thank you.
The committee recessed from 5:41 p.m. to 5:58 p.m.
[D. Coulter in the chair.]
The Chair: Recognizing the member for Vancouver-Langara on clause 1.
M. Lee: Just coming back to something that the minister mentioned in a response previously about consultations and the three consultation drafts. She mentioned that there was an overall timetable provided to the participants in the process — that is, the 79 individuals that signed the NDAs.
Could the minister share with us the timing in the timetable of that — meaning the three dates that the consultation drafts were circulated and the deadline dates for which comments were asked to be received back?
Hon. M. Dean: The first draft was sent out on July 29. Consultation was a two-week period. The second was on August 26. That was, again, a two-week period of consultation. The third one was sent out on October 7, with one week.
M. Lee: I will say…. It was likely on the third consultation draft that we heard that.
The minister had said this earlier. When it came closer to the end of the process, before the tabling of the bill itself, the time frames became shorter. That, certainly, is our understanding. That, certainly, is consistent with the timetable that the minister just provided, which is a focus on the last draft.
I think I also understood from some of the participants that — I appreciate, again, we’re talking about the level of consultation and review here — there were quite significant changes on the third draft itself. Is that correct?
Hon. M. Dean: Between the second and the third drafts, there were a lot of meetings. Really, the meetings and the conversations were on specific provisions that were the most important and the most critical.
It wasn’t that there were significant changes between the second draft and the third draft, but there was substantial work done to make sure that those final critical areas and the most important areas were discussed and agreement could be reached on the resolution of those final critical areas that were in discussion. We wanted to make sure that we did that work in partnership and to get those areas resolved in a good way.
K. Kirkpatrick: Thank you to the minister for that last answer. I’d just like to clarify, based on the feedback that was provided over that last period, that last week…. How much of that feedback actually, then, formed part of the final legislation? What kinds of conversations happened with those groups who provided feedback that did not get included or that did not have anything amended?
Hon. M. Dean: Every provision in the legislation reflects input from Indigenous partners. So to varying degrees of influence and deriving from different Indigenous partners, you can see input in every single clause in this legislation. The whole of the legislation was shaped by feedback at all stages of developing the legislation.
Of course, through the process, we were working with the diversity of Indigenous nations and Indigenous peoples. So we received a range of feedback. We accommodated. We needed to make sure that the legislation reflected the declaration on the rights of Indigenous peoples and the act, the federal act as well, and that we landed on the best solution with each of the clauses.
What we want to do is support nations in the province of British Columbia to exercise their inherent right to jurisdiction.
K. Kirkpatrick: Could the minister provide a timeline of when she expects this act to come into force?
Hon. M. Dean: Shortly after royal assent, by regulation, much of the legislative impact will come into force, but some of the regulations will also come into force in 2023.
M. Lee: I appreciate the response to the question here from my colleague. I appreciate that this is also helpful from a framing point of view, even as we talked and went through the consultation process and review of this bill.
Of course, we recognize that there were amendments made in 2019, and here are further amendments. There are a couple of questions that come out of that. Keeping that in mind, what further consultation is expected with nations as the other components of this bill come into force over the time period the minister set out?
Hon. M. Dean: There will be significantly more consultations. We’ve already seen an increase in interest amongst First Nations. Expectations are much higher, and we do have more regulations to finalize as well. So there will definitely be more consultation and engagement with nations. We’ll continue our same approach, and we’re expecting many more nations to be engaging with us and responding to our information-sharing and our invitations for engagement as well.
Nations also are going to be wanting to think about: how does this impact my community? What do I need to be doing in my community? So we expect the nuts and bolts and the operationalization, what it’s going to look like in communities, will be part of that discussion as well, led by Indigenous communities. But they’ll be wanting to talk with us about how they shape that and what next steps are so that we all know what’s happening.
At the end of the day, what we need to make sure of is that all children and youth and families are receiving the services that they need.
M. Lee: I appreciate the response. In view of that response, could the minister describe and elaborate on what her expectation would be for consultation with nations in the regulation-making stage?
Hon. M. Dean: We’ll use a range of methods and tools that we have at our disposal. We’ve been building relationships with nations and communities over time anyway. That includes direct invitation. As I said, we send out regular bulletins and communications to all nations, so we’ll include this kind of information in those regular bulletins that will go out. It won’t just be a one-time communication. It will be regular, ongoing. You know: “Remember we’re doing this. This is how far we’ve got so far. This is the stage that we’re at in the process of developing regulations and in engagement and consultation.”
Engage B.C.again will be available for use, and we’ll be able to use that for soliciting feedback as well. So to give you an example, we’ve started…. We’ve already talked to nations about doing consultation on the Indigenous child welfare director position. We’re going to be asking nations for feedback on the functions of that position, what authority that position should have, the appointment of who should be in that position and how they interact with nations as well.
Again, we’ll use a range of methods, and whenever a nation reaches out to us and says they want to engage on a particular area of change that we’re implementing in the ministry, we always respond. We make sure that there’s direct interaction and direct engagement with them.
M. Lee: The minister has referred to the response aspect of the ministry’s approach. I understand there may well have been certain amendments and changes that were proposed, by virtue of the various consultation drafts. For those amendments that were proposed that weren’t changed in this bill, how has it been left with those nations in terms of possible future adjustments to the bill, either by regulation or by amendment?
Hon. M. Dean: I’d just like to advise the member that the original intention of the amendments to the CFCSA were not as expanded as the scope ended up. So we actually consulted on the scope of the amendments, and the original intent was really to capture coordination agreements and to respond to the federal act.
However, as you have seen, the scope has been significantly expanded, and that’s because of incorporating so much of the feedback that we did receive and applies to two pieces of legislation, not just the CFCSA.
We have also received some other feedback not related to this bill. We’re retaining all of the feedback that we have received. So when, in the future, there is another opportunity for doing further work on the CFCSA, then we’ll keep all of that information, and we’ll be able to apply it as it’s appropriate. Of course, whenever we’re doing any significant policy or regulatory or legislative work, we will continue to consult and engage.
M. Lee: I appreciate the minister’s response. It does indicate that the process with feedback expanded, in terms of the scope of the amendments to the bill, and some of them are quite significant and fundamental. We can get into the regulation-making powers under the bill later, as they present themselves in more detail. But right now, at this outset, I wanted to….
The minister made reference to this as the nuts and bolts. Certainly, the member for West Vancouver–Capilano and myself have heard from nations in terms of their interest, of course, relating to this bill. We know that there are other requirements that are contemplated, particularly even from a financial-resource point of view.
Let me ask this question, which I meant to ask earlier when we were talking about UNDRIP. A similar question to the minister is: could the minister identify the specific action items within the DRIPA action plan that this Bill 38 is intended to address?
Hon. M. Dean: So 4.17 action is: “In collaboration with B.C. First Nations and Métis peoples, and Inuit, continue implementing changes to substantially reduce the number of Indigenous children and youth in care through increased prevention and family support services at all stages of contact with the child welfare system.”
M. Lee: I think that I can hear the minister and her team also noting another section I would refer to and perhaps give the minister the opportunity to add to that list and comment on 4.16 of the DRIPA action plan. Also, I wonder about whether 4.18 is addressed in any way with Bill 38.
Hon. M. Dean: Yes, 4.16 talks about co-developing “a B.C.-specific fiscal framework, in partnership with First Nations, Métis and Inuit, and in consultation with key Indigenous organizations, to support and move forward with jurisdiction over child and family services.”
Then 4.18, yes, some responsibility for the ministry to address that one.
M. Lee: If I can come back to 4.16 then. That is one that certainly is critical to the ability of nations in order to implement the changes, including what’s being provided for under this Bill 38 and the federal act, C-92.
[M. Dykeman in the chair.]
I appreciate that there is a federal funding stream of some sort there as well, but if the minister could comment on where the government is at this juncture on that co-development of a fiscal framework as it relates to moving jurisdiction over child and family services to Indigenous nations.
Hon. M. Dean: That work is underway. We have a tripartite working group with First Nations leadership and the federal government to complete the work on fiscal framework.
M. Lee: The minister mentioned the federal government, then, so it is a tripartite process as opposed to a B.C.-specific fiscal framework. Am I hearing that clearly?
Hon. M. Dean: Yes, it’s tripartite. The federal government is there. It’s B.C.-specific, so we’re focusing on our province and nations in our province, and we will include First Nations as we develop a fiscal framework that will inform our work, moving forward.
There are also the coordination tables, as well, where fiscal agreements will need to be reached, because they will look different with each nation, depending on how nations want to exercise jurisdiction and how they want services to be delivered to members of their community as well.
M. Lee: Recently the Minister of Indigenous Relations and Reconciliation suggested to his ministry team that they provide me with an update on the overall fiscal framework development with First Nations or nations in our province, which is another specific action item in the DRIPA action plan. My colleague, the member for Kamloops–North Thompson, the Ministry of Finance critic, joined me for that meeting.
I understand from that briefing that there has been some further progress being made regarding the overall fiscal framework with Indigenous nations in this province, both subsequent to, of course, the gaming revenue mechanism that was put in place a few years ago but also further progress on the forestry revenue-sharing arrangements. There was a circulation last week of a discussion paper that sets out the guiding principles, as it refers to, in terms of the overall fiscal framework with Indigenous nations.
Can I ask the minister: how does the work that the minister just referred to fit within that overall fiscal framework, particularly when I don’t hear any federal government participation in that overall framework, guiding principles discussion?
[The bells were rung.]
The Chair: A division’s been called in the chamber, so this House will recess to attend to that vote.
The committee recessed from 6:31 p.m. to 6:49 p.m.
[M. Dykeman in the chair.]
The Chair: I call Committee of the Whole on Bill 38, Indigenous Self-Government in Child and Family Services Amendment Act, back to order. We are on clause 1.
Shall clause 1 pass?
M. Lee: We’re waiting for a response from the minister.
The Chair: Oh okay, sorry. I didn’t know we were waiting on a response. I will recognize the minister, then.
Hon. M. Dean: Our fiscal framework for the work through my ministry is related to the coordination agreements, so the fiscal framework that we’re developing needs to be a tripartite one, as I’ve described, because the coordination agreements are under the federal act, so it’s federal legislation. So the federal government needs to come to the table, and we’re doing that work under the federal legislation.
M. Lee: I know that this was noted in terms of the status of the Canadian Human Rights Tribunal claim, as well as some of the settlement challenges. What’s the minister’s expectation in terms of how that will unfold in terms of moving forward with this fiscal framework and the arrangements that are going to be possible here?
Hon. M. Dean: We’re going to continue our work with our partners at the tripartite table. What’s important is to be having those discussions with our partners to shape what the fiscal framework is going to look like. We want a fiscal framework here in B.C. that’s going to support our work with nations, and supporting them in serving children, youth and families in their communities. What we want here in British Columbia are the best outcomes for the children and youth across the province and for Indigenous children and youth and families in their communities.
M. Lee: I know my colleague the member for West Vancouver–Capilano will be talking, in this committee stage, much about the delegated agencies and the existing ministry and the services there, so I’ll leave it for her to talk about those fiscal arrangements as well.
To come back to the nations themselves, the minister, of course, commented earlier about the 32 groups, 81 nations that are receiving some federal capacity funding here. Given the minister’s response just now in terms of the fiscal framework and the tripartite arrangements here, both with each nation but also the overall fiscal framework, could the minister comment further about what that program looks like, from the province of B.C.’s perspective, as to how we continue to support nations to go through this process, what sort of level of funding these nations are receiving and how that process will expand as we go through the further implementation, let’s say, of what’s been provided under Bill C-92 and this bill?
Hon. M. Dean: It’s a federal funding program, so the coordination tables are under the federal act, and the federal funding is towards capacity and towards the work at those tables.
A. Olsen: I understand my colleagues in the official opposition canvassed earlier the question about non-disclosure agreements. I raised this extensively in my comments to this bill in second reading and the concerns that I have with this black-box approach to doing this work. Does the ministry have any intention of releasing those that participated through the NDAs, that signed the NDAs, from those non-disclosure agreements?
Hon. M. Dean: The NDAs only apply to cabinet confidentiality. We have a lot of conversations and engagement and consultations with Indigenous communities about a range of matters that are outside of NDAs because they’re not related to legislation or cabinet confidentiality.
The direction with regard to NDAs comes from section 12 of FOIPPA, and that protects against disclosure of information that would reveal the substance of deliberations of the executive council or any of its committees. That includes any advice, recommendations, policy considerations, draft legislation or regulations that are submitted or prepared for submission to the executive council or any of its committees.
A. Olsen: How are we to know that that was the only content that was discussed behind non-disclosure agreements?
Hon. M. Dean: The NDA, the non-disclosure agreement, stipulates what it is that cannot be discussed outside of those conversations, and it is informed by the regulation that I just mentioned to you. So there’s a clear understanding of what can and what cannot be kept under the non-disclosure agreement.
The professional public service works with a lot of NDAs and understands what the guidance is for what can be included under an NDA. I rely on their professionalism — we all do — to make sure that the rules and the policies with regard to NDAs are clearly followed and discussed with anybody so that they’re able to sign an NDA fully knowing what the intent of that is and what the guidance and direction of that NDA is.
A. Olsen: Is it correct, then, that the entire discussion about the development of this bill is deemed to be cabinet confidence? There was no discussion about this. In fact, there was some indication by some that this was quite a surprising bill to have in front of us.
Am I correct in stating that the entire development of this bill is being deemed as for cabinet confidence — the policy you stated?
Hon. M. Dean: No, not all conversations about this legislation were under NDA. I can think of lots of examples when I was visiting nations — having meetings with nations, doing presentations at gatherings, doing presentations at AFN, UBCIC — where I would talk about making amendments to our legislation in order to support nations exercising inherent rights of jurisdiction over child and family services.
We sent out bulletins, starting in March 2022. We sent them out regularly. In every one of our bulletins, we mentioned the legislation. We actually posted policy content and updates and progress on Engage B.C.
We had briefings with nations. It’s possible to have briefings with nations and, so long as cabinet documentation is not being provided and delivered, it’s possible to have conversations about the legislation. So we were able to have many conversations that were not under NDA with nations. So there has been a lot of conversation with nations at a variety of different opportunities throughout most of this year.
A. Olsen: Maybe just two questions. Will the minister provide a copy of the NDAs that nations were asked to sign if they wanted to, just a template or a sample of the NDAs that were signed? One.
And I’ll leave it at that for now.
Hon. M. Dean: Yes, it would be possible to provide a template.
A. Olsen: As it stands, and there were…. I wasn’t here. I was in one of the other many Houses that are open right now debating when my colleagues raised these questions, my colleagues in the official opposition here. My understanding is there were about a dozen, or slightly more than a dozen, individuals. Is that right — the number of NDAs that were signed?
Hon. M. Dean: There were 79 NDAs signed.
A. Olsen: Representing how many nations?
Hon. M. Dean: Representing 13 nations.
A. Olsen: So on an issue that has been, I think, chronically embarrassing for the province of British Columbia, the child welfare system — Indigenous child welfare, in particular — 13 nations participated of the 200 or so. Is that correct, in the NDA process, the closed room discussions?
Hon. M. Dean: So 13 nations under NDA, in the NDA process. Then also Métis Nation and Inuit were involved in the process as well, and 15 other nations involved in the process, too.
We sent out the first engagement bulletin to all First Nations in March 2022 and invited nations to connect with the ministry. The web page on jurisdiction amendments went live also in March 2022. We sent a formal letter to modern treaty nations in April of 2022, and we continued to send out bulletins every month.
We’ve developed a system with nations where we send information to each nation every month with an update. So every month, updates were provided on this work on jurisdiction. So we continued to make sure that all nations were kept informed and notified. Anytime that a nation reached out to the ministry, the ministry responded and provided a briefing or a meeting or engaged with the nation in response to the questions that they had or any issues that they raised as well.
K. Kirkpatrick: Just following on to my colleague’s question, did any nation refuse to sign an NDA?
Hon. M. Dean: No. No nation refused to sign.
M. Lee: I appreciate the questions here. It furthers the conversation we were having earlier about consultation. Just as the minister provided the last response about responding to inquiries, obviously something as fundamental as reform of this system does require significant consultation and discussion. Notification would not be that. I think we all recognize that.
But to the extent that there was actually a nation that responded and asked questions, I’m curious to ask whether…. There was no requirement in response to those questions or observations for that nation to sign an NDA, presumably. That’s the first question to ask. Secondly, if not, what was the nature of those questions that could be engaged on through that mechanism?
Hon. M. Dean: Any nation that reached out and wanted more information or a briefing…. That was provided by the ministry to them.
As I said before, it’s possible to have those conversations and consultations on the draft legislation without sharing the actual draft documents and documents that are subject to the FOIPPA section. Nations were asked if they would like to see the draft legislation. If they wanted to, then we would get into the NDA process, and we would ask them to sign an NDA.
M. Lee: Coming back to the earlier question about the settlement relating to the Canadian Human Rights Tribunal…. As we understand it, $20 billion was allocated for reform of the system. Does the minister have any indication from the federal government, as a party to the tripartite fiscal framework, as to what the allocation available for British Columbia might be?
Hon. M. Dean: No, we do not.
M. Lee: Just going forward into…. The first definition that we’d like to spend some time on is the definition of “Indigenous child.”
The categories that are set out for that definition relate to a child who is a First Nation child, a child who is a Nisg̱a’a child, a child who is a treaty First Nation child. Obviously, as we recognize, in terms of Indigenous peoples in Canada and who is recognized under Canadian laws…. The other two categories that might be considered specific definitions would be a child who is Métis or a child who is Inuit.
To the minister, why was there no specific definition category, alongside of First Nation, Nisg̱a’a and treaty First Nation children, set out in this definition?
Hon. M. Dean: If the member looks at subsections (d) and (e), they do talk about the inclusion of children and youth of Métis and Inuit identity. Yeah, sections (d) and (e).
M. Lee: There are different ways to come at that response. Let me first say that the federal act itself is entitled An Act Respecting First Nations, Inuit and Métis Children. It is not an act respecting First Nations and children of Indigenous ancestry.
There is specific wording, of course, as to why Métis peoples would be recognized in Canadian law and as a separate nation here in British Columbia. That’s why they’re called Métis Nation British Columbia. I would have thought that when we look at the categories of “Indigenous child,” again with the time that was taken to spell out First Nation child, Nisg̱a’a child….
Nisg̱a’a, of course, is a specific nation in our province, with specific recognition by the province of British Columbia. A treaty First Nation child is as well. The reference at sub (d), to have a broader definition, does not give either Métis children or Inuit children the kind of specific recognition that you would have thought, when we’re talking about Indigenous law and recognition of the ability of Indigenous nations to take care of their own children.
Can I ask the minister: what was the level of consultation with Indigenous nations in this province? Were they given the opportunity to review this definition and give their approval of the definition? Or was there other feedback provided to the ministry as to the structure of this definition itself.
Hon. M. Dean: Yes, there was a lot of engagement, a lot of consultation and a lot of feedback. A lot of feedback was provided on this particular clause.
I’d draw the member’s attention to subsection (f), which was a really important inclusion following the feedback that we received. Section (f) reads…. This is what an Indigenous child means: a child “who an Indigenous community confirms, by advising a director or an adoption agency, is a child belonging to an Indigenous community.”
M. Lee: With respect, I think that actually compounds the concern that I am raising. The minister, in response to my question about “Indigenous ancestry,” has now turned the attention of the committee to “an Indigenous community.”
That is actually now taking us to another section of the bill, which doesn’t refer to Métis anymore, or Inuit. It refers to a broader generic definition, which I appreciate is a mechanism for presumably the Métis Nation to confirm, by going through this procedure and advising a director or an adoption agency, that that child is a Métis child.
Well, let me approach it this way. The minister is certainly aware of the MOU that was signed with the Métis Nation. It’s a joint commitment dated June 7, 2018, by the minister’s predecessor and the president of Métis Nation British Columbia. One of the objectives of this MOU, or joint commitment document, is apart from committing collaboratively to work towards Métis Nation B.C. authority over child welfare for Métis children and families in the province of British Columbia…. The second objective is to develop the concept of and requirements for legislation to support Métis Nation B.C. authority over Métis children and families in British Columbia within the time frame of January 2021.
I only refer to this joint commitment…. Perhaps I could ask the minister: doesn’t this joint commitment actually confirm, from the province of British Columbia’s point of view, that in the area of authority for child welfare for Métis children and families that that recognizes, as it is referred to through this joint commitment, that there is a category of Indigenous child referred to as Métis children?
Hon. M. Dean: What we’re doing is replacing the old, very colonial language that didn’t recognize Métis, and we’re modernizing the approach. We are absolutely committed to working with Métis Nation B.C. to be able to support the nation in identifying Métis children in B.C., and not only in B.C. but for Métis communities outside of B.C. that also may have children and young people here in British Columbia as well.
Under the purposes of the act, then, that creates that space. It creates that opportunity for Métis Nation to identify their community members and enables the work to continue, to work in partnership with Métis Nation B.C. in supporting how they want to approach delivering services for their children and families.
M. Lee: I believe, if I heard the minister correctly, there was a general reference to working with Métis Nation B.C. in terms of identifying its members.
I appreciate that members of this House had the opportunity to meet with the board and cabinet members of Métis Nation B.C. when they were here even last week, when the House was supposed to be sitting, and we weren’t having this sort of debate. I’m sure they would have loved to have participated and sat right there to witness this discussion, but they’re not here because we didn’t have committee last week.
We didn’t do anything last week, in fact, even though we were all in the building. But we were there on Louis Riel Day and recognizing the declaration. Just trying to get all my special ceremonies in order here. Yes, the former Premier and the new Premier were both there, but we weren’t sitting.
I know that in talking to members of Métis Nation B.C., when we talk about membership, there are now running on to 100,000 members in British Columbia. They do have a registration process that is there in place.
Am I hearing correctly that there is some identification that’s required here by the government of B.C. that Métis Nation needs to demonstrate that is different from how a First Nation child is defined? Because that definition says a child who is “a member or entitled to be a member of a First Nation”? Is that a different test that this government is applying to Métis Nation B.C. and Métis children?
Hon. M. Dean: No.
M. Lee: I struggle, then, as to why there is no separate definition for Métis child. Why is it that in the previous part of the minister’s response, she referred us to section (f)? The lead-in is an “Indigenous child” means a child who “an Indigenous community confirms, by advising a director or an adoption agency, is a child belonging to Indigenous community.” Perhaps we should talk about that provision first, because that is the provision that the minister turned our attention to.
What is the procedure, by the way, for an Indigenous community to have to confirm that a child belongs to an Indigenous community? What level of confirmation is required? What documents, what requirements, what parameters are around that confirmation?
Hon. M. Dean: The definition is designed to be inclusive, so it’s a distinctions-based approach. The definition of an “Indigenous child” is inclusive. It includes a First Nation child, a Métis child and an Inuit child as well. It’s not about imposing the burden of tests on nations. Nations themselves will determine who is a community member of theirs. We’re trying to work in partnership and to be inclusive.
For example, under the Adoption Act, if there is going to be consideration of a plan for adoption of a child or a young person, a community may identify that that child or youth belongs to their community. As soon as that happens, that opens up the gates to a whole range of different processes — and duties and responsibilities as well. It creates a pathway for the ongoing involvement in education and cultural supports.
In doing that, that makes it consistent with the articles of the declaration on the rights of Indigenous peoples — for example, article 8, “Indigenous peoples…have the right not to be subjected to forced assimilation or destruction of their culture”; article 12, “Indigenous peoples have the right to manifest, practise, develop and teach their spiritual and religious traditions, customs and ceremonies”; and article 13: “Indigenous peoples have the right to revitalize, use, develop and transmit to future generations their histories, languages, oral traditions, philosophies, writing systems and literatures.”
M. Lee: I would like to just remind members of the fact that it was confirmed again, over five days of committee review on the DRIPA Act back in 2019, that the entire Declaration on the Rights of Indigenous Peoples Act is to be read through the lens of section 35 jurisprudence in this country.
I appreciate the minister referring to specific underlying articles of UNDRIP, but let me ask the minister this question: does the minister agree and recognize that under section 35 jurisprudence in this country, Métis peoples are recognized as a separate body of Indigenous peoples in our nation?
Hon. M. Dean: We’ve designed the provisions and drafted the legislation under the federal act and the directions of the constitution. What we’re trying to do here through our provincial legislation is, actually, ensure that nations are able to exercise their rights — their rights under the constitution and their inherent rights in relation to jurisdiction over child and family services.
M. Lee: When I look at the federal act, of course, it does reference Indigenous peoples having the meaning assigned by the “Definition of aboriginal peoples of Canada,” subsection 35(2) of the Constitution Act, 1982. I didn’t hear the minister disagree with the statement, of course, that Métis peoples are recognized under section 35(2) of the Constitution Act and the jurisprudence that flows from that.
When we refer to the federal act itself…. As I mentioned earlier, the federal act itself refers to First Nations, Inuit and Métis children. Throughout the preamble to the act, it certainly refers to First Nations, the Inuit and the Métis in terms of the renewed nation-to-nation, government-to-government relationship.
Again, I’m still surprised by the approach that’s being taken here. As I mentioned, if we look at the federal legislation…. We go from the joint commitment with Métis Nation B.C. to the federal legislation. The federal legislation certainly recognizes Métis people as a separate Indigenous peoples alongside the Inuit and First Nations peoples, which is how, of course, it is in Canada and in this province. The actual Bill C-92, though….
When the minister refers to following the approach…. Perhaps she can walk us through how the definition of an Indigenous child is referred to and broken down in the federal act versus what’s presented here in Bill 38.
Hon. M. Dean: In the federal act, under the “Interpretation” section, they say: “Indigenous, when used in respect of a person, also describes a First Nations person, an Inuk or a Métis person.”
Our definition also uses First Nations, Inuit and Métis as inclusive within the definition. We’re following the definition in the Declaration Act.
M. Lee: I believe the minister is referring to…. Well, the definition of “Indigenous peoples….”
Let me ask the minister. What definition of “Indigenous” is she referring to?
Hon. M. Dean: Our definition in our act is very inclusive. We consulted. We’ve talked about this. There’s been a lot of consultation and a lot of engagement with Indigenous partners, so our definition is very inclusive. It includes understanding the definition of First Nations, Métis and Inuit. What this means is that nations and communities are able to identify their members, and we’re able to deliver services to their members as well.
What’s important here is having that pathway of working in partnership and continuing to work in partnership at the end of the day to make sure that provincially we’re able to deliver the services that are needed by Indigenous children and youth and their families.
M. Lee: As the committee here may be well aware, the reason why…. Obviously, all Indigenous children and their safety and their welfare is fundamental to this entire bill. But in terms of Métis children, they make up the greatest population of Indigenous children in care in this province. That’s why this matters, apart from all the other reasons why this matters. So it’s an important point that we’re walking through.
Just back to the minister on her last comment, then. What is the comment, then, and the position of the Métis Nation in respect of this definition? Have they commented on this definition itself to the ministry in their consultation process?
Hon. M. Dean: Yes, we consulted with Métis. The language in the definition does include Métis children and youth. What’s really important is that having this definition and having reached this point in making sure that we’ve got distinctions-based language, we’re able to here, provincially, ensure that services are able to get to those children and that they are able to have cultural supports and cultural connections as well.
M. Lee: We’ve been approaching this issue in several different ways. I just want to recap before we go back into that last response.
In answer to my previous question about Métis, the minister referred to Indigenous. That caused me, along with my colleague here, the member for West Vancouver–Capilano, to take a look at the Adoption Act, because I thought that the minister might be referring to the current act when she was referring to a definition of “Indigenous.” There is no definition of “Indigenous” in this bill. The definition that’s closest to “Indigenous,” of course, would be “Indigenous child,” which is what we’re having a discussion back and forth about.
There’s a definition of “Indigenous peoples” which I thought the minister might be referring to. But of course that takes us to the Declaration of the Rights of Indigenous Peoples Act, which refers to the same meaning as “Aboriginal peoples” in section 35 of the Constitution Act, 1982, which is something I’ve already made reference to. The minister has not disagreed with the understanding that that meaning of Aboriginal peoples in section 35 of the Constitution Act includes Métis peoples.
The minister just referred to the distinctions-based approach, and certainly, that also flows from the DRIPA action plan. That is one of the additions, let’s say, to that process when that was tabled in the House at the end of March. That certainly recognizes that the province’s dealings with First Nations, Métis and Inuit peoples are “conducted in a manner that acknowledges the specific rights, interests, priorities and concerns of each, while respecting and acknowledging these distinct peoples with unique cultures, histories, rights, laws and governments. Section 35 of the Constitution Act…recognizes and affirms the rights of Aboriginal peoples of Canada.”
It also goes on to say: “In many cases, a distinctions-based approach may require that the province’s relationship and engagement with First Nations, Métis and Inuit peoples include different approaches or actions and result in different outcomes.”
Well, I hope that the different outcome that’s happening here is not on purpose. That’s not what this minister means by a distinctions-based approach. I would have thought that a distinctions-based approach recognizes that each of these peoples — First Nations, Métis and Inuit peoples — are recognized independently and separately as being distinct in this province of British Columbia.
I’m just furthering the point by looking back at the definition of “Aboriginal child” in the current Adoption Act. This definition is being deleted under subsection 1(a) of this bill. Of course, when I look at the “Aboriginal child” definition and look at it against the “Indigenous child” definition, it’s actually kind of similar, which is surprising, given the distinctions-based approach under the DRIPA action plan, the joint declaration that I referred to earlier, signed in January of 2018.
We have two documents that refer to Métis people as being separate and distinct in this province and this province recognizing that, yet in the Adoption Act, the definition “Aboriginal child” — there’s of course no reference to Métis. I know that that is, of course, an improvement. I recognize that the minister has said that. It’s an inclusive definition that at least uses the words “including” after Indigenous ancestry, Métis and Inuit. That is her response to date.
[D. Coulter in the chair.]
But that probably begs the question here that I’m asking, which is the separate category (d), which is a child who is 12 years of age or older, of Aboriginal ancestry and considers himself or herself to be Aboriginal. That definition is tracked in category (d), under sub (e) of 1: “who is 12 years of age…and considers himself or herself to be an Indigenous person” but is of Indigenous ancestry, including Métis and Inuit.
So we have an inclusion reference now at this point. What I’m asking is: isn’t it clear that Métis people and Inuit people and, as a result, Métis children and Inuit children should be a separate category in themselves and not subsumed within an inclusive definition, either in sub (d) or in sub (f), as the minister has already referred to?
Again, I’d ask the minister if she could please respond to the points that I’m making, which basically support and question why there is not a separate definition of “Métis child” and “Inuit child,” because under the circumstances, for the reasons I just went through, it seems appropriate and necessary.
Hon. M. Dean: The federal act is inclusive, and our act is inclusive. We’re working to decolonize this legislation. The old legislation refers to the Indian Act, for example.
All of our work, moving forward, especially in the area of child welfare, is to decolonize the systems and the laws and the regulations that have been harmful for so long. What our definition does in our act is allow us and the work that will proceed under the act to respect culture and to recognize culture as distinct.
That’s what’s going to be really important in terms of the outcomes for children and youth and is going to create the opportunity for communities to identify their members and to deliver cultural practices, cultural teachings, cultural traditions, cultural education, cultural rights. You’ll see that an “Indigenous governing body” has the same meaning as in the Declaration on the Rights of Indigenous Peoples Act, and “Indigenous peoples” also has the same meaning as in the Declaration on the Rights of Indigenous Peoples Act.
Chair, I wonder if we might take a short recess.
The Chair: Okay, the committee will take a ten-minute recess.
The committee recessed from 8:02 p.m. to 8:12 p.m.
[D. Coulter in the chair.]
The Chair: The minister just gave an answer, so I recognize the member for Vancouver-Langara on clause 1.
M. Lee: Were separate definitions of Métis child and Inuit child considered as part of the drafting of this bill?
Hon. M. Dean: We went through several iterations of the definition of “Indigenous child,” and through the process, we landed on what you see before you.
M. Lee: So what is the reason why there are not separate definitions for “Métis child” and “Inuit child”?
Hon. M. Dean: I’ve already answered this question. I don’t have any more to add.
M. Lee: I do understand now why the minister does refer to section (f) and not (d) in this definition. Of course, in section (d), it’s not talking about the child; it’s talking about the biological parent.
At first, the minister did refer to sub (d), which is inclusive, which is a word that she has been utilizing. So a child “who is under 12 years of age and has a biological parent who (i) is of Indigenous ancestry, including Métis” — that’s what she means by inclusive. There’s no clear recognition of Métis child there. It’s indirect, and it’s by inclusion.
Sub (f), though, is the section that the minister did refer to, which I’m concerned about because I think it runs counter and is inconsistent with both the joint commitment that has been made by this government back on June 7, 2018, and in the distinctions-based approach that the whole DRIPA action plan is based on. That’s a double commitment.
I appreciate the updating of the Adoption Act. But this has happened under this government’s watch all since 2018. So we’ve ended up with a bill here that presents itself this way in 2022.
The minister makes reference again to the federal act. So when I look at the federal act, I appreciate that in legislative drafting, there are different ways to see the preamble to a bill. But considering from a federal drafting point of view, I skipped over, in referring to the Métis, the preamble that does say to enact legislation for the benefit of Indigenous children, including First Nations, Inuit and Métis Nation children.
That is the specific use of the words “Indigenous children,” including First Nations, Inuit and Métis Nation children — three separate categories that are spelled out in the federal act; three separate categories that are not spelled out in this bill. Why is that important? Well, first of all, there’s an inconsistency there.
Let me just stop there by asking the minister. Is the minister not recognizing that there is an inconsistency between the federal legislation C-92 and Bill 38 in terms of the recognition of Métis Nation children?
Hon. M. Dean: During this conversation around the definition of “Indigenous child,” I have referred the member to subsections (d), (e) and (f). The Indigenous governing body is the same as in the Declaration on the Rights of Indigenous Peoples Act, as is the definition of “Indigenous peoples.”
Here in British Columbia, we want to be very inclusive, so we actually in our legislation are talking about Métis as well as Inuit as well as First Nations. We also talk about Nisg̱a’a and treaty nations as well.
We want to make sure that we are inclusive and that we recognize that Indigenous communities are able to identify members of their communities, because what we want to do is make sure that Indigenous children, youth and families receive the services that they need.
M. Lee: I do appreciate the minister referring back to sub (e), as well, in terms of clarifying the other subsections that one can turn their attention to in terms of trying to identify a child who is Métis under this Bill 38.
The earlier discussion we had was around the fiscal framework, the tripartite framework, that the province is involved with. And of course, the minister referred to the fact that there’s the overall framework plus separate tables dealing with individual nations.
If we look at it through that lens, the Métis Nation, of course, is under an NDA. The minister confirmed that earlier and indicated that. They have an interest, I would expect, in terms of recognition of their children, and we’ve talked about this at length.
It brings me back to, practically speaking, how does this work? We are leaving it up to the child, who considers himself or herself to be an Indigenous person, which is, again, different from the First Nation child definition, but that may be on purpose.
I think…. Well, really, I come back to a “First Nation child” is a child “who is a member or entitled to be a member of a First Nation.” Why is that any different from a Métis child? Really, that’s what it comes back to.
I think the answer is, well, because for some reason, this government sees it as someone who is different, has to qualify under (d), (e) or (f). That means that person needs to consider themselves an Indigenous person. It’s not just about being a Métis person, someone who is already a member or entitled to be a member of the Métis Nation.
Secondly, it’s also about an Indigenous community who can confirm by advising a director or adoption agency that that child belongs to an Indigenous community. How does…? Recognizing that this same definition….
I don’t think we’re going to have the time, because of closure here, to run through this again, but if it does present itself when we get to that section of the bill that relates to part 2 of this bill — Child, Family and Community Service Act amendments — that same definition is utilized there.
It’s going to come up again here as we talk about this, but how do the arrangements fiscally work here? How do the discussions work when there is not even a clear definition of “Métis child” in this bill? Because we have to have the person consider himself or herself, or the community confirming that that person is a child belonging to that Indigenous community.
So how, practically, will this work in terms of the negotiations, the fiscal framework discussions that are taking place with the Métis Nation?
Hon. M. Dean: The process is under the federal act, so the Indigenous community will approach the Canadian government to clarify their status as an Indigenous governing body for the purposes of developing a coordination agreement. There are stipulations in the federal act around that process and who is an Indigenous governing body.
The province will be invited to join that table, the coordination agreement table. So we will become involved, and we will be supporting nations exercising jurisdiction. Part of that conversation is then looking at a fiscal agreement.
Our approach is to be working in partnership. It’s not a negotiation; it’s working together in partnership in the interests of the children and youth and families from that community and belonging to that community.
M. Lee: Does the province of British Columbia recognize the Métis Nation as an Indigenous governing body?
Hon. M. Dean: The determination of an Indigenous governing body is governed by the federal act. That is a process that needs to be between the federal government and the nation or the community.
M. Lee: As a point for future reference, if the federal government does deem Métis Nation to be an Indigenous governing body going forward, will this government revisit this definition to recognize Métis children?
Hon. M. Dean: Again, I will say it’s not the provincial government that determines who is an Indigenous governing body, so if Métis Nation are identified as an Indigenous governing body by the federal government for the purposes of a coordination agreement related to child and family jurisdiction, then of course the province will join that table.
K. Kirkpatrick: There has been discussion about the need to update and modernize some of these definitions. In looking at the original definition in the Adoption Act with respect to an Indigenous child, it would seem that some of that language has perhaps been brought over in error. In the definition of Indigenous child, (d)(ii) and (e), can the minister explain why there’s gendered language, using the terms “himself and herself,” and not the usage of gender-neutral language?
Hon. M. Dean: Yes. The drafting of this legislation is under the current drafting guidelines. As those guidelines are changed and modernized so that binary language isn’t evident in legislation, then those changes will be brought in — as guidelines might be changed.
A. Olsen: On that last point, there’s another bill being debated somewhere in this precinct where actually, gendered language is being changed, so I’m confused. So, he and she is now being removed, and non-gender specific language is being replaced, yet the minister just said that that’s not the guideline.
Now, I’m totally confused.
Hon. M. Dean: They were the existing guidelines that were applied in this particular situation, but if there are other opportunities for moving away from binary language, then I’ll find out more about that.
A. Olsen: I located it. It’s Bill 44, Building Strata Statutes Amendment Act, that was tabled just yesterday. Clause 20 says: “‘his or her’ and substituting the ‘landlord’s.’” Clause 21 says: “‘his or her’ and substituting ‘the owner’s.’” There are several clauses in here. I’m wondering. Were the updated guidelines used for this bill but not for the bill that we’re debating in the little House here?
Hon. M. Dean: Well, as the member knows, I’ve been a champion of non-binary language here in different aspects of our work. So the member has my commitment to find out more.
K. Kirkpatrick: We have talked about, with the definition of Indigenous child and not having Métis Nation recognized…. I was going to go along the same questioning with respect to Indigenous community, but I’m going to move from that because I think we’re just going to be going circular here. Although I do think it’s still an important question that we have to resolve.
How will a child’s Indigenous community be determined within the province and outside of the province? What will happen to Métis or Inuit children in recognizing their Indigenous community?
Hon. M. Dean: So current practice at the moment is…. The first obligation when a child or youth has come to the attention of the ministry is to identify if that child or youth is Indigenous.
If they are Indigenous, then the next obligation is to find out what communities the child belongs to. So we have very positive obligations to be undertaking that work and making sure that we find those answers out.
At the same time, this is being even further reinforced by this legislative amendment, and at the same time, communities can also identify children or youth.
K. Kirkpatrick: Thank you to the minister for the question.
I found that was a broad answer, and I’m just looking for something a bit more specific. You say that you identify the child’s community. How does the minister do that? Can the minister walk me through more specifically what that process looks like?
Hon. M. Dean: Within the ministry, we actually have what are called roots workers. So there is an approach to working with children and with family and community around them to identify their roots and their ancestors and their family relationships.
There’s quite a lot of work that is already evident out there amongst workers. There are lots of different tools, and the member might be aware of different ways of creating family trees or family stories and actually gathering that information that needs to be done.
Now, with this legislation, there’s an even heavier obligation. It’s really critical that we work with Indigenous communities, that we develop good practice and good policy around this so that we make sure that we’re being inclusive and deeply respectful, especially in the area of….
If there’s contemplation of adoption, then the obligation on the workers is very great to find out whether a child or youth is Indigenous and to make sure that there’s significant consultation and cooperation before considering adoption.
K. Kirkpatrick: Thank you to the minister. The minister had mentioned adoptions. So hypothetically, if a child has lived for years with a family, and this family now initiates adoption proceedings, what are the steps taken by the director or, I believe, the adoption agency to determine, if it’s not known to this point, if the child is First Nations, Métis or Inuit?
Hon. M. Dean: There is a very positive obligation on the worker, in whichever agency, to do some investigating and to find out whether that child or youth is Indigenous. Then, depending on the findings, there would need to be more investigation.
Of course, each child or youth’s situation is unique and is different. The response from each of the workers, in working with the child or youth, would be different, tailored on the particular child or youth and also the information that they gather as they make those investigations.
K. Kirkpatrick: Thank you to the minister for the answer. Just to give another example…. It is so important. We’re talking about definitions, and we’re talking about identification of children and to make sure that they are ending up in the right surroundings, with the right families and with the right cultural supports.
Let’s say a biological parent of an under-12 child claims Indigenous ancestry. What documentation is required by the director or the adoption agency to confirm that parent’s claims of ancestry, especially if there is any objection to the adoption?
Hon. M. Dean: We’re at the stage now where we’ll be consulting on policies in a collaborative way with Indigenous partners, Indigenous nations and communities. We’ll be talking with Indigenous partners about what would work for them and how we would respond in a situation like that.
Again, we need to get back to being inclusive, because children and youth have lots of different connections and lots of different relations. We will be working with Indigenous partners to make sure that we can support those connections and those relationships.
We know that that’s what’s really important for the health and welfare of children and youth and for them to thrive. That’s where children and youth get their sense of belonging from: their connections and their relationships. We know that we need to nurture that.
I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 8:45 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of the Whole House
BILL 41 — WORKERS COMPENSATION
AMENDMENT ACT (No. 2), 2022
(continued)
The House in Committee of the Whole (Section C) on Bill 41, Workers Compensation Amendment Act (No. 2), 2022; J. Sims in the chair.
The committee met at 1:41 p.m.
On clause 1 (continued).
G. Kyllo: Just before the break, we were going through a series of questions just to try and better identify what the cost magnitude of the proposed changes in Bill 41 are. The minister had shared with us that the totality of the cost estimates provided by WorkSafeBC is relative to the estimated cost per $100 of payroll, which the minister had shared was seven cents.
I was looking for a bit of additional information as to what is the actual dollar cost figure associated with that. The minister indicated that he was not provided with that dollar figure number, which seems surprising, because even WorkSafeBC would have to first estimate what the dollar cost total would be before they’d be able to extrapolate an estimated cost per $100 of payroll value.
Just going back to that same question, is there any opportunity…? Then, if maybe over the break, the minister was able to reach out to WorkSafeBC and see if he could provide any further information with respect to: what is the dollar cost associated with the proposed changes to Bill 41?
Hon. H. Bains: I will try to get that, because I offered that I would reach out and see when I could get that type of information that the member is asking for. But again, it has to be put in that context that I laid out earlier. The funding and liabilities and how they are calculated is very, very complex, as was mentioned. I read it on record from the Bogyo report.
Again, it’s not just that somebody is going to write a cheque tomorrow — this is how much the cost is, here is the money that is going out. This is the explanation I received. The one-time change in total liabilities represents the increased lifetime value of all existing claims in the system. It’s a lifetime cost. They also went on to say that there are 50,000 to 60,000 claims there as a result of Bill 41 that will be impacted.
It is not something where the money was going to be costed out tomorrow, whatever number it is, but it is a lifetime cost of the claims. That’s the way my understanding is: that they calculate…. It goes against the liabilities, and they have assets, and that’s how they determine what level of funding they are at. Are they at 130 percent or 150 percent or less than 130 percent? It’s liability over assets.
I think any cost implications by bill or their own initiative goes against the liability. So that’s why it’s a bit complicated. It is calculated over the lifetime, and it’s not just that somebody is going to sit down and calculate that this is what it’s going to cost us tomorrow.
But I will try to get that information as soon as I can.
G. Kyllo: I appreciate that the minister is willing to reach out to WorkSafeBC, and I certainly hope that he’s able to do that sooner rather than later. I would have certainly thought that this would be the type of information that a minister of the Crown would be requesting.
The minister has indicated that a significant portion of these costs will come in over time, and that is accurate. But not all. Some of these will be one-time costs. Some of the proposed changes that are set out in Bill 41 require the additional hiring of additional staff for additional reporting functions. There are, I think, immediate and one-time initial costs that will be anticipated or incurred within just the first year.
When it comes to significant changes as, for example, the changes to the rate of increase for workers that are on permanent disability, the proposed change that sets that out in this particular bill will have an impact directly within the next 12 months. There will also be ongoing costs over the lifetime that that claimant is entitled to workers compensation benefits.
It just astounds me that the minister is not able to share with this House the actual cost magnitude associated with these changes. Now, I would assume that when government ministries are looking at putting forward and meeting the fiscal framework and meeting objectives of the government, they have a requirement, an obligation, to ensure that they are able to spend within their existing budget allocations. And if they want to initiate any additional policy changes that require the additional hiring of staff or additional costs incurred by their ministry….
Certainly, from my time on Treasury Board, from 2013 to 2017, and my time working with the then Minister of Jobs, Tourism and Skills Training, it was absolutely paramount that any proposed legislative changes were fully costed so that government had a full understanding of what the cost implications were of these proposed changes.
What we’re hearing from the minister is that because there’s a healthy surplus within WorkSafeBC, the worker accident fund…. Suddenly we don’t have to worry about all these checks and balances. We’re just concerned about what the potential rate might be per $100 of payroll. Well, that’s not consistent with how government operates or even Crown corporations.
I would fully expect that if the Crown corporation were looking to make regulatory changes that would have significant impacts on the costs of the organization, they wouldn’t just go about making the changes and then hope, at the end of the year…. “Well, we’ll just figure it out. Hopefully, it works in the budget.” That’s not how governments operate. That’s not how businesses operate. That’s not how families manage their personal finances. You don’t make a decision without understanding fully the cost implications of those changes.
I’m going to stay on this same theme, because it’s very concerning to me. The minister’s answers initially…. When it came to trying to determine why there are these seven proposed changes set out in Bill 41, at the exclusion of hundreds of other recommendations that have been presented to the minister from a number of different reports, the minister shared with this House that part of the consideration was the financial impacts of the changes.
When I asked, specifically…. What were the financial impacts? What was the financial cost of these proposed changes? The answer then was different. The minister reclarified. Maybe he misspoke initially. He reclarified by saying: “Well, actually, no. We made our decision on these seven proposed changes, as set out in Bill 41. Once we made the determination what direction we were going, we then asked WorkSafeBC to do a cost analysis on it. They reported back, seven cents per $100 of payroll.” It was on that advice that the minister felt comfortable in moving forward.
For WorkSafeBC to calculate that seven cents per $100 of payroll…. They had to fully understand the magnitude of the cost — the fiscal impacts from the first 12 months, the ongoing liabilities of these proposed changes over the life of all of those injured workers that are entitled to, now, a different rate of increase for their disability pensions.
I can’t, for the life of me, understand and accept the fact that the minister has made a substantive decision, a decision which industry associations have indicated has the potential magnitude of over $800 million in cost in the first year alone, to the size of the worker accident fund, and that that decision was made solely on a seven cent per $100 of payroll, which was provided from WorkSafeBC.
I’m certainly hoping that the minister can provide some additional context or understanding on how he was able to arrive at the decision with such nascent information.
Further to that, the minister referenced one-time costs or indicated that the majority of these costs — or all of the costs, actually, were the minister’s words — will be over the life, the term, of all of these injured workers, the 50,000 to 60,000 workers.
With that, is the minister able to share what that cost magnitude is, over the lifetime of the contract, and what the actual impacts will be on the size of the worker accident fund?
Hon. H. Bains: The member makes a number of erroneous statements here. I’m not going to correct him. He’s going to have to go back and take a look at what he actually said here.
I have already answered this question. I will try to get the information that he asked. I didn’t ask for that information, and I don’t have it. So when I get that information, I will try to provide it to the member. This is the third time I’ve told him.
G. Kyllo: Okay. I appreciate that the minister apparently did not request a detailed analysis and information which led him to move forward with these particular amendments set out in Bill 41. That’s been well articulated — or maybe not so well articulated.
The minister also indicated that this seven cents impact, the seven cents per $100 of payroll value…. That number was finite. I do know….
For example, one of the proposed legislative changes has to do with changing the rate of increase for injured workers that are on long-term disability. The current rate is CPI minus 1 percent. It’s my understanding that the last 12-month rolling average for CPI is 6.9 percent. The current legislation would indicate and direct…. Based on the current legislation, injured workers, on January 1, would be entitled to a rate of increase of 6.9 percent less 1, or 5.9 percent. That’s if this current 12-month rolling average holds true over the next couple of months.
Can the minister confirm that the current legislation is just that? The rate of increase for injured workers is currently set at CPI minus 1 percent. Based on an assumed CPI rate of 6.9 percent for fiscal 2022, the rate would actually be 5.9 percent. So 1 percent less than the current 12-month average of CPI.
Hon. H. Bains: Just for housekeeping here and to move as efficiently as we can…. There are a number of areas of this bill that need to be looked at, talked about, understood. For people who are watching, what do they actually mean? I think we’ve spent over four hours now talking about how we got here. I’m glad the member is moving into some of the specific areas of the bill, but it’s not clause 1. It is somewhere down the line.
I’m okay to go clause by clause — which clause you want to pick up first and go back — as long as we know which clause we are talking about so that we can concentrate, finish it off and then go to the next one. That’s my humble suggestion to the member. Let’s go through systematically. There will be a lot of information available when we get to each clause there. I’m sure there will be a lot of questions just like the question the member has asked, but that is further down in the bill.
So I ask. Let’s start from clause 1 and see if there are some questions.
G. Kyllo: I appreciate the recommendation from the minister. Although this specific question around the current rate does reflect a specific section of the bill…. It’s also important to have a better understanding, at this point in time, of how the minister has determined, based on the advice of WorkSafeBC, that the rate is a finite number. The potential cost impact to employers and ratepayers is a set, fixed amount.
The proposed change that sets out the rate of increase for injured workers is not a fixed and finite number. It provides variability. It provides an opportunity for WorkSafeBC, the board, to make a subjective decision on any increase to the worker compensation rate for permanently disabled workers if the rate of increase of CPI is more than 4 percent.
If we knew it was set at CPI, the WorkSafeBC board might be able to make that determination and say: “Okay. Based on the proposed change, it is a set amount.” But the way the bill is laid out, WorkSafeBC, the board, doesn’t even make a decision until January. So if they’ve indicated a finite number to the minister, which led him to move forward with this piece of legislation…. They’ve yet to even make a determination if that rate of increase for fiscal 2022 is going to be 4, 4½, 5, 5½, 6, 6½. They’ve yet to even make that determination.
Now, maybe WorkSafeBC is showing their hand. Maybe WorkSafeBC has already made a determination on what that rate of increase is going to be. That would, then, allow them to provide a finite number to the minister.
It’s absolutely paramount to understand what information was provided to the minister to allow him to move forward and to make this specific decision. The minister clearly articulated that financial impacts were one of the considerations and the criteria by which he made the determination of which particular sections of the regulation or the legislation were going to be changed.
I would provide the minister an opportunity to maybe provide a bit better clarification, when the minister indicates that there is a finite number that’s been determined which predates what we understand is when this legislation has been passed. The way the legislation is set out is that the board won’t even be giving consideration to the termination of increase until January.
I’m just trying to better understand…. What information did the minister rely on in moving forward with the proposed changes that are set out in Bill 41?
Hon. H. Bains: I have tried to answer this question numerous times, and I’ll give it one last time. I relied on the seven cents, and then I asked what impact it will have on employers premiums. They said it would be about seven cents of the total package. I was assured that there are sufficient funds available in the accident fund, and there is no immediate impact on the premiums.
Now, the member is asking different questions on how the dollar values attached to each one of those cost items — how they calculate them and what they are. I have already said that I will try to get that for the member.
G. Kyllo: Okay. That’s concerning.
Let me ask this question. The changes, as set out in Bill 41…. Is the minister able to share these changes — how they will impact the surplus that currently resides in the worker accident fund?
Hon. H. Bains: That’s the question he already had. He’s asking it differently. That’s the question that I will ask the WCB to try to get that information.
G. Kyllo: Actually, it’s not the same question. The potential impact on future rates is also contingent upon the size and how healthy that worker accident fund surplus is.
Now, the minister, in one of his early responses, indicated that the surplus was around $3 billion. I don’t have the exact number, but I believe that was the number. Of course, for those who might be listening at home, the total cost for providing care and compensation benefits to workers comes up to a set number, and then out of an extra due diligence of caution, there’s an additional 30 percent that is set aside to ensure that they can deal with any market fluctuations. A significant portion of revenue, for example, comes from investments. So there’s an extra abundance of caution and the extra 30 percent.
The surplus we’re talking about is a surplus in excess of that 130 percent of what the estimated cost of providing those claims are. That surplus, last year, grew considerably. The minister, I believe, shared in estimates last spring…. In fiscal ’20-21, I believe the number the minister referenced was about an 11.1 percent return on the investments, which is pretty considerable. I certainly would have been happy to see that in my portfolio. Yet we know, this fiscal, things are very different, that the financial returns for any Crown corporation that has significant investments, whether it be ICBC or WorkSafeBC, are going to take a significant financial hit.
I’m hearing numbers of 10, 15 percent. So last year was an 11.1 percent return, in 2021. This year it could be a negative hit of 10 to 15 percent, which again will put further pressure on that additional surplus, over and above that 130 percent in the worker accident fund.
The changes, as set out in Bill 41, are also going to have fiscal implications to WorkSafeBC. I appreciate that WorkSafeBC may be choosing to utilize some of that surplus to fund some of these costs, but I think it’s also important for business owners…. Again, the funds that are received by WorkSafeBC come from employers. Those are employer-paid premiums.
Through increased financial returns and, largely, very significant efforts of employers from around the province to reduce the incidence and the severity of accidents in the workplace, that surplus has grown. And, yes, employers have had some benefit from that in that, in essence, some of their prepaid or overpaid premiums have been used to maintain some consistency in the rates over the last number of years.
But what is happening now is that changes are being proposed that are going to have significant increased costs to the provision of care and the rates of compensation to injured workers, and I have no quarrel with that. But it’s important, and I think it’s imperative, that not just British Columbians but employers have a full understanding of the cost magnitude of the changes.
We had a bill not too long ago which changed the length of time that injured workers would be paid. The minister referenced that in some of his earlier comments — the fact that an injured worker at the age of 25…. There was a self-determination or determination maybe by WorkSafeBC at the time that that injured worker would be paid a disability compensation pension through until age 65.
Well, that age 65 was a finite number. They could easily determine what the potential costs of that may be — through the actuaries that, again, the minister made reference to — to determine what that cost magnitude was, and those dollars had to be set aside and taken into consideration, developing the size and determining the size of that worker accident fund.
But the legislative changes that were initiated…. I believe it might have been Bill 31, but my memory’s not that great these days. In any event, under that particular bill, it gave the ability of WorkSafeBC to reconsider the age of retirement. Again, I appreciate that not everybody today is retiring at 65. The changes that were proposed now allow WorkSafeBC to give reconsideration, and they could extend that age of retirement from age 65 to age 67 to age 70 to age 72.
Those additional costs were never anticipated. Take into consideration that, at the time, the worker accident fund was set up and increased to deal with that one particular individual. So there have been legislative changes that are going to have a significant impact on future ratepayers. The ratepayer or the business that was paying WorkSafeBC premiums at the time of that injured worker may not even be in business anymore. So there’s been a cost shift. There’s an additional cost burden that’s going to be borne by the organization.
Again, I have no quarrel with the potential for a worker to give consideration under extenuating circumstances to look at extending that time period. But it’s important and it’s imperative that government provide the numbers. Could not get detailed numbers from the minister as far as what that anticipated cost would be.
Here again we have a bill before the House, a bill that…. Fair enough. It’s not going to cost government money. It’s not going to cost the minister any money out of his budget. Oh well, don’t have to maybe scrutinize too much. Don’t have to ask too many questions, because the minister is not necessarily on the hook for the payment. But the costs associated with the changes in Bill 41 are going to be incurred by future employers, and it’s going to have a significant impact on the size of the worker accident fund.
Although the minister feels that it’s the same line of questioning, it is very different. And although we can certainly get into lots of detail on a clause-by-clause basis of the specificity of some of these proposed changes, it’s really important at the outset to understand what financial information the minister relied on.
What was the accuracy of that information? What was the totality? What was the amount of scrutiny, the additional questioning, the inquiry that the minister had before contemplating and putting their stamp on a piece of legislation that’s before this House?
With all due respect, I hope the minister can maybe better clarify for both this committee and for British Columbians the level of effort and rigour that he undertook to ensure that he fully understood the full cost impacts of these proposed changes and the costs that eventually will end up on the backs of B.C. businesses in the province.
Hon. H. Bains: I have answered that question.
G. Kyllo: Well, that, indeed, is surprising. Wow.
The scrutiny, the level of inquiry, the concern, the questions of WorkSafeBC to fully understand the cost implications amount to one single number being presented to the minister of seven cents per $100 of payroll. I can’t for the life of me comprehend or understand how, in any organization, that would pass any scrutiny. It is the job of the minister to fully understand the Crown corporations which are under his or her control. It is extremely troubling.
I appreciate that maybe the minister doesn’t want to share the information. I suspect that he may well have had additional information. The minister had some numbers to share with this House with respect to what the compensation rate for injured workers would have been had the rate been established at full CPI for the last 20 years versus CPI minus 1. The minister had actual numbers to share with this House — what the impact on workers is. I think that’s a valid line of inquiry and something that I’m glad the minister was able to share with this House.
Again, when it comes to a bill…. These aren’t just my concerns. Fair enough, on the record, I have a business or two and might be concerned about worker compensation rates, but I also have a duty to represent constituents, other business owners and employees, both unionized and not.
When business organizations express concerns and write letters to the minister setting forth their understanding of the proposed legislative changes, the potential cost implications, the potential challenges associated with those, and to my knowledge, the minister has yet to respond directly to these inquiries that were provided by a significant number of business associations across B.C. that represent, I would say, a far more number of employees than might be represented by the B.C. Federation of Labour….
When they have not been provided any fulsome answers, they then ask myself, as the official opposition critic, to advance questions, a line of inquiry, and concerns to try and get it on the record so that British Columbians — employees and employers — can better understand what information the minister relied upon before setting forth with tabling this particular piece of legislation. Yet the answers provided, I feel, are grossly inadequate. However, it’s apparent that the minister is unable, unwilling to share that information at this point in time.
I certainly would encourage the minister to make those specific inquiries of WorkSafeBC. It should not be information that cannot be released and should not be released. It’s information that has a direct impact on potential rate premiums paid by employers across the province. It has a direct and immediate impact, I believe, should this bill become an act. It will have direct impact on the size and the health of the surplus that currently resides in the worker accident fund. It’s imperative that British Columbians have a full understanding of what information the minister relied upon.
Again, I’ll just repeat it one more time. If the sole financial information that the minister relied upon in tabling this piece of legislation was a sole number, a finite number that the minister indicated, of only seven cents per $100 of payroll, I’m deeply concerned.
A. Olsen: The worker accident fund surplus that has been talked about at length for the last couple of days: are those funds to protect injured workers, or are they there for the benefit of businesses?
Hon. H. Bains: My advice is that the accident fund is held in trust. It is to provide and pay for the benefits of claimants of the past, current and future and also the administration costs, the health care costs, the rehab costs. There are a number of those areas. It is the money that belongs to the system in order to provide the care and benefits to the injured worker that they’re entitled to under the act.
A. Olsen: Are those funds in that surplus subsidizing the premium rates?
Hon. H. Bains: Yes. They have been.
The Chair: Leader of the Third Party.
Sorry. House Leader of the Third Party. I promoted you there for a second.
A. Olsen: Yeah, I didn’t want your promotion. I’m happy. I hope my colleague isn’t watching.
Currently we have a surplus that’s meant for workers for the cost to cover their injury and all of the costs of being injured subsidizing the premiums and keeping the premiums at $1.55 per $100. Is that correct?
Hon. H. Bains: The short answer is yes, but let me give a little explanation.
The board of directors under the act have a fiduciary responsibility to manage the assets, including the accident fund for the benefit of the system. But they do also have the responsibility to utilize those funds based on what their duties are under the act to look after the workers, injured workers, the benefits and rehab, as I mentioned before, administration costs, the health care costs.
Their responsibility also is to determine what rates the employer must pay, going forward, in order to pay for the cost of claims. But over the years, they believed that they had a surplus, as they call it, over and above what they require the funds to be funded at, which is 130 percent. It has been higher than 130 percent over the year because of good return on investments.
I think the workers on the other side are also arguing it was at the back of their benefits because benefits were cut very, very deeply in 2002-2003, and they never recovered. So the accident fund grew, good return, and the benefits were cut. A combination of those have huge benefits.
But the board has made a decision, I think going back to 2006 or ’07, that there is sufficient funding, the accident fund surplus, that they can utilize some of that to give a break or stabilize the rates for the employers.
Like I said, I just calculated each year, the amount of money that they use. That is available on…. I think one of the reports mentioned that. That’s what I’m quoting from. If you look at that, it is substantial. It is almost $3 billion, up until 2021 from 2007. I think even in the last five years, it’s close to $1.3 billion to $1.4 billion if you add up annual money that is utilized out of the surplus fund.
So that information has been available, and the rates have been stabilized. They have been charged less than the cost of the claims over a number of years. I think that’s why there was a huge ask on the workers’ side that the employer is benefiting from being a healthy accident fund. But it is our turn. Our benefit should be looked at as well.
With Bill 41, we are trying to rebalance the system. The employers’ premium will continue to be stabilized, and at the same time, the workers will start to see some of the benefits coming back.
We never will be close to what they were in 2003. But again, we’re trying to make some efforts to deal with some of the inequities compared to what other jurisdictions already have. So we’re saying, “What is fair here?” and that’s what this bill represents.
A. Olsen: Thank you. I think what’s interesting is that both the critic and the minister are educating me in a very complex area. As was pointed out, only 20 people know about this. Maybe two of them — perhaps it might be four or six of them — might be in this room. I don’t count myself in that group yet, although I’m working towards it.
If I may just understand the characterization the minister just gave to us. Rather than make up the loss on the workers’ side from the cuts that have been characterized by the minister, that happened in the early 2000s, the decision has been made by the current administration over the last number of years to use that surplus instead to keep the premiums at the rate that they’re at, rather than to makeup for the lost ground that may have happened in the early 2000s. That was a decision that was made.
Hon. H. Bains: Here’s another piece. The board has the authority to utilize the accident fund to offset premiums for the employers, but they don’t have the authority under the act to improve the benefits for the workers. So that’s why we’re here debating the bill that will lift the benefits that workers lost, or trying to get some of those benefits back that the workers lost. The board does not have the authority to improve the benefits for the workers, but they do have authority to offset the premiums for the employers.
A. Olsen: So there was, then, a decision made to not amend the authority that the board has to give them…. Ultimately, this government can make the decision to amend the authorities that the board has in order to ensure that the moneys that have been set aside for injured workers are going to injured workers, as has been characterized in the few questions that I’ve asked here. The decision is made, then, to not amend the authority that the board has in order for them to be able to perhaps level the playing field on both sides.
Hon. H. Bains: I think historically that’s the way it has been. When we commissioned a number of these reports, no one suggested that we should actually give authority to the board to improve the benefits.
Maybe, I’m just guessing, but the fear might be that if the markets start to go down and they’re getting a little tight on finances, then the workers’ benefits may start to go down. I think it is to provide certainty to the workers. At least they know what they are getting, and the board will not every year move them up and down. That may be the reason, but I think that’s not the suggestion that we were given.
This is the way, we believe, to provide them with tools to improve the benefits of the workers, and it can only be done through legislation.
A. Olsen: There’s a certain amount of that surplus that is being burned; there’s a certain amount of that surplus that’s being spent. Right now it is being invested in keeping the premiums at $1.55 per $100. Fine, and that’s a decision. What I’m trying to get to is that just because the reports that have been tabled with this government didn’t suggest to maybe level the workers’ side of it, it doesn’t mean that the government couldn’t make that decision.
A government that’s focused on worker safety and fairness to workers would have looked at the option to say: “Look, we have made up….” I’ve heard several times in this debate — used, I think, as a tool in the debate by the minister — that there were some severe cuts to the benefits of workers in the early 2000s, that those cuts have had a negative impact on the workers and that it’s simply not possible to make up ground.
I think the point that I’m trying to make is that the benefit that’s being handed right now to premiums is a decision. It allows the board to make the decisions that they currently are allowed to make. There was also an opportunity — unless the minister corrects me, the government cannot change the decision-making framework of the board — for the minister and this government to actually change that framework to say that the board could consider both.
If we are going to allow that surplus to be spent somewhere, we could spend it on making up the ground, which continues to be used in debate as part of the reason why we’re making these changes, to support the people that this workers compensation system was designed to support. The bargain, which the minister outlined very eloquently to a question that I asked yesterday, is the result of businesses not being sued and workers getting the support that they need. That decision was made to not amend the board’s authority to make those decisions, both on the premium side and on the worker benefit side.
Hon. H. Bains: No, we did not consider that option. That’s why it’s not part of this bill. It’s something to look at, going forward, perhaps, but that’s not what we considered at this time.
G. Kyllo: There was a question that was provided to me earlier and I overlooked it. I thought this might be a good time to raise it.
A number of the recommendations set forth in the bill have been drawn from the Patterson report, and the minister has shared that with this House. Now, the Patterson report, as I recall, saw a number of employer associations actually walk out of the consultation process, out of concern, maybe, for a lack of impartiality with respect to the work that was being undertaken.
Can the minister share this: was any additional consultation undertaken with these organizations to ensure that their voice was accommodated, either during the time that the Patterson report was underway or thereafter?
Hon. H. Bains: What happened with Patterson was that the employers participated initially. Then, once the interim report was issued by Patterson, they decided not to proceed any further. But there are a huge number of employers who were consulted by Patterson. The numbers are pretty big.
Then again, some of the stuff that we are talking about here didn’t all come from Patterson. For example, case suppression was identified by Petrie. He consulted many employers and workers. Hearing loss, for example, and removing the cap, came from the board themselves. They did their own survey of where they sit as compared to other jurisdictions. They recommended to us that we should move in that direction as well.
Employers and others have talked about fairness in the system and improving confidence. I think the fairness commissioner will do that, at a relatively very low cost — virtually not much cost — because the system is already there. So it is expanding their duties.
IME. Again, WCAT has the authority to call for IME if they believe that there’s a need, but now both the worker and employer can ask for one.
Then the CPI was recommended by both Bogyo and Patterson. The interest, also, was identified by Patterson and Petrie, I believe.
I think we did not just pick up everything from Patterson. It was a combination of a number of reports that came and that informed us of the area of priorities that we needed to be looking at. That’s what we did, and I’ve provided the member with the list of employers that we talked to under the NDA while we were proceeding towards the introduction of this bill.
G. Kyllo: Thank you to the minister for that response. Is that unusual for a significant number of employer associations to walk away from a consultation process?
I know the minister has certainly shared the necessity to find balance on both sides, from both the employer’s and employee’s sides. I just wonder if the minister might be able to provide any context, if there were any reasons or concerns that were brought forward on why the employer associations walked away from the table at the time that they did.
Then further to that would be: would the minister agree with those concerns, disagree with those concerns? Then, again, were any additional efforts undertaken to reach out to those industry associations, to provide any comfort? As the minister has shared, it’s really important that there’s confidence in the system.
It strikes me as a bit unusual, but maybe there are other examples of industry associations walking away from the table when consultative reports are being put together on behalf of the ministry.
Hon. H. Bains: I went and met with them, and their concern was that looking at the interim report, perhaps, she was going outside of the terms of reference that were provided. I assured them. I said: “Look, I will not consider anything that falls outside of the terms of reference.” Again, I did not follow everything Patterson recommended. I mentioned where I drew a number of these areas and who identified, also, there.
I think it is a priority that developed over time, when looking at different reports. They were all directing…. Almost all of them mentioned some of these areas and considering other jurisdictions and where we fared on each of those areas. We believed that those were the priorities to move forward with, and that’s what we did.
G. Kyllo: I appreciate that additional information. As a follow-up to that, are any of the areas of concern that were raised by the business associations, with respect to areas that they felt might have fallen outside of the scope…? Are any of those areas represented or identified and set out in Bill 41? Or were the areas of concern that the employers had expressed concern about…? Have those not been contemplated and form part of Bill 41?
Hon. H. Bains: I don’t recall any individual recommendation, because the report was issued after I met with them.
It was more of a general concern they raised that in her interim, she was touching areas outside of the terms of reference but not specifically saying, “This area is outside of that area within the terms,” because the final report came after.
Clause 1 approved.
On clause 2.
G. Kyllo: Moving right along here, with respect to clause 2, is the minister able to confirm that this particular clause was based on recommendation 43 of the Patterson report?
Hon. H. Bains: Actually, Petrie identified this area long before Patterson. Patterson also recommended, as the member said, as a part of our recommendations…. I believe it is 43.
G. Kyllo: I’ve just now located it. It’s actually recommendation 43 of the Patterson report. It’s interesting. The minister references that it was also mentioned previously in the Petrie report.
Was additional credence, I guess, or an extra weight given to recommendations that were consistent with a number of the different reports? I know early on, when we were trying to determine what led the minister to land on these seven set requirements, that was not something the minister referenced. But seeing that it’s been raised now, just asking, I guess. When the minister was giving consideration — the fact that a recommendation may have shown up, repeated itself, in a number of different reports — did that also add extra weight to the minister’s decision-making with respect to those seven changes that are set out in Bill 41?
Hon. H. Bains: I think I talked about how we prioritize the areas of improvement that I want to move forward to. It was identified by a number of stakeholders, and Petrie was one, who consulted the employers, the board and the workers and identified that there is an issue.
They identified that it’s not fair that some employers — not all employers, some employers — discourage their workers to file a WCB claim for work-related injuries or illnesses.
Not only are they taking unfair advantage of their competitors, but also the workers end up now on public health care, which is not fair. Also, under public health care, they may not get the support that they need that is available to them under workers compensation.
Then we look at the other jurisdictions. There are a number of those criteria we look at. How do we fare with other jurisdictions? We believe that we were behind other jurisdictions. That’s why, we believe, that was identified by a couple of reports that talked to us about some of the stakeholders. Also, we were behind other jurisdictions in this particular area. That’s how I made the list.
G. Kyllo: Was there an evaluation undertaken to determine what the actual incidence was? I appreciate that it may not be that all instances of workers’ claim suppression were specifically recorded, but what work was undertaken by the ministry to better understand the frequency — I guess maybe that’s just it: the frequency — or just how large a problem this actually is, and how that might relate as a percentage of all claims that are currently issued by injured workers across the province, on an annualized basis?
Maybe I’ll just add to that. I’m just looking to get a bit of a sense of this. Was this a huge problem, a small problem? Do we have any sense of just how impactful this particular area of concern was, or is currently, in B.C.?
Hon. H. Bains: If I go by Petrie, who put a paper out in March 2022, this is what he said in that report — this is an addendum to his 2018 report — Restoring the Balance: A Worker-Centred Approach to Workers’ Compensation Policy, to the board of directors of the B.C. Workers Compensation Board:
“In that 2018 report, I addressed the issue of claim suppression in a limited way, given the eight-week period to complete my review and the limitation of available data to address the claim suppression issue. I recommended that the WCB initiate an independent review of claim suppression by a qualified organization with a scientific methodology to determine the nature and extent of claim suppression. To the WCB’s credit, they commissioned the recommended review.”
Then it went on to say:
“The commissioned independent report, which was released now, is Estimates of the Nature and Extent of Claim Suppression in British Columbia’s Workers Compensation System. The findings in the claim suppression study indicated a high level of under-reporting of work-related injuries or diseases. And even with the challenges for documenting claim suppression, the study found evidence of a significant level of claim suppression activity that likely occurs in B.C. workplaces.”
So here is a study that was conducted by WCB, and it came back suggesting there’s a significant number of underreported or not-reported claims.
G. Kyllo: I appreciate that. The minister references significant. Are there any statistical numbers? What is significant? I fully support this clause, just to put it on the record. But just to get a bit of a sense of how large of a problem this is.
The additional report that was provided, that the minister just referenced, indicated significant. I’m just trying to get a sense on how large a number. Are we talking about thousands of workers a year — hundreds, tens of thousands? Just to get a bit of a sense of what is significant,
Hon. H. Bains: There is a number of different scenarios, as I mentioned, but this is significant. “Out of an abundance of caution, I have estimated the unclaimed time-loss injuries in 2019 at 45,000, with the likely range between 40,000 and 50,000 unclaimed time-loss injuries. This represents 46.3 percent of the total projected disabling injuries in 2019, taking into account unclaimed injuries.” So it is significant.
G. Kyllo: The reference to time loss, just so I get a bit of a sense…. The time-loss estimate — does that refer to a worker who might be injured on the job site and rather than an actual claim be filed and the worker paid through the Workers Compensation Board for, say, four hours of work they may miss associated with that injury, the employer just says: “Look, take a couple aspirin. Go home. We’ll just pay your wages out until the end of the day.”
[M. Dykeman in the chair.]
Those four hours that the worker still may have been paid for, would that be part of the consideration and the number that the minister referenced?
Hon. H. Bains: First of all, in the scenario that the member mentioned, my understanding is that the worker isn’t paid for the remainder of the shift that they missed. Wage loss starts from the next day. Some employers pay them. Some probably don’t know.
It is the concerning overall avoidance of claims, trying to persuade workers not to file a claim and keeping them on the payroll, for example, instead of letting them to go to see a doctor and take disability and go on wage loss.
It’s a number of…. This is a very thorough report. If the member wishes to read this, I can give you a copy of that. It is quite, I think, informing, to say the least — how the case suppression worked and how they came up with those numbers. So it is quite significant.
G. Kyllo: To the minister: I appreciate that.
Now, I do know that a number of employers have light duty or return-to-work programs. So if an employee is working on a specific task and is injured at work and maybe provided an alternative as far as light-duty work…. I just wanted to clarify that those types of programs would not be counted and would not have represented any of the 40,000 to 50,000 hours that the minister referenced as far as the total lost time annually.
Hon. H. Bains: First of all, I think the act requires that every injury must be reported. Whether it ends up in a claim or not, they must be reported. I think, as I was just reminded by the member, near misses were also required to be reported. But it is where the injury occurred at a workplace, was supposed to be reported, but it wasn’t reported, either by having an employer convincing the worker not to report or saying: “Look, just keep on coming. I’ll give you light duty.”
But if the injury wasn’t reported, then that would fall under the avoidance of claims. No one knows. Initially, when you’re injured — back problem, for example — you think it’s okay. “I’ll come and do the light duty.” But over time, it may develop into a lifelong problem, and then they try to report retroactively. That’s why a lot of claims get denied — whether, then, that question was raised of whether it’s work-related or not.
So when we are talking about claims suppression, as was studied by the independent body…. It is a significant number that claimed that the injury should have been reported and wasn’t reported. I think that’s what we are talking about.
G. Kyllo: Great. Thank you. So the 40,000 to 50,000 hours that were reported….
Interjection.
G. Kyllo: Claims. So 40,000 to 50,000 claims, not hours. All right. Thank you. That’s a significant number. The minister just clarified for me that the reference is not to the time — lost hours — but the actual number of claims. At 40,000 to 50,000 claims, that is significant.
Now, I’m just having a look at the recommendation from the Patterson report. It indicates that the legislation is pretty clear that the ability of an employer to suppress claims is not permitted, but the challenge has been that the WCAT, I guess in their review, found that they weren’t actually able to level penalties against the employer. So it’s not like the act did not speak to the topic of ensuring, and I guess requiring, that employers report all claims. It has to do, I think…. It appears, from the Patterson report, that there’s a bit of a challenge with respect to the ability to level penalties.
Now, with that, with respect to the size of the penalty that might be levelled to employers that are active in suppressing claims, has that been determined yet or will that be left up to WorkSafeBC to determine? With that, is there any opportunity for the minister…? Would the minister be reviewing any of those fees or levies?
And, I guess, what further consultation might be undertaken with employers to ensure that any fines or penalties are commensurate with the severity of the suppression?
Hon. H. Bains: If you look at the two parts to the section that is being amended, we are adding to the existing section, making it 73(1), and adding subsection (2): “An employer or supervisor must not, by agreement, threat, promise, inducement, persuasion or any other means, seek to discourage, impede or dissuade a worker of the employer, or a dependant of the worker, from (a) making or maintaining an application for compensation under the compensation provisions, or (b) receiving compensation under the compensation provisions.”
We are making the language stronger, clarifying the existing section already. Then also, once you do that, it falls under the penalties of occupational health and safety regulations. The penalties are already listed in there if there’s a contravention of this section.
G. Kyllo: I think it might be helpful…. Is the minister able to share the severity of the penalties, like the magnitude of the penalties, that might be assessed in the case where an employer is actually found to have suppressed the application of a claim?
Hon. H. Bains: The penalties listed under this policy are based on the payroll of the employer, No. 1; No. 2, the nature of the violation. They look at the history of the employer. They’ll look at whether there was an intentional violation of the act. I think a number of those factors come into play in determining what penalty is appropriate for that particular time, but I think there is a maximum of $710,000 total. I’ve seen some people who are getting close to that fine just recently in the media.
G. Kyllo: I don’t disagree with the different areas that the tribunal, I guess, or maybe a WCAT or the board may look at imposing a fine, but it sounds quite subjective.
What opportunity, I guess, is there…? I’m just trying to get a better understanding from an employer perspective. If an employer…. Let me set this straight. The large majority of employers in the province, I believe, are doing a great job, and this will have no effect on them. But there are some bad actors, which I believe we would all agree happens in just about any industry sector. It’s important for those businesses, I think, to have a good understanding of what the cost implications could be.
A company that maybe has $1 million in payroll, if they’re actually identified and the evidence is there that they’ve suppressed a claim…. What would the magnitude, the potential range of penalty associated with that particular employer, be? Are we talking $1,000, $100,000? Just to get a bit of a sense of what that magnitude is.
Then, I’d also noted in the Patterson report that there’s a specific recommendation about a lot of increased educational awareness, both for employees, to make sure that they are fully aware of these proposed changes, should they come into effect, as well as employers, again, to give those bad actors advance notice that trouble is on the way, and if they continue to take measures to suppress claims, it could significantly affect them financially.
Just a couple of questions. If the minister could provide some context.
Hon. H. Bains: Hard to answer that question at this particular time because the board will be developing policy on this particular section. They already have policies surrounding other sections. Those are some of the criteria that they use, that I mentioned earlier.
Again, if this is going to be a new thing coming…. They do consultation on their own with the employers and the workers that this is coming, and hopefully, they’ll do a pretty good job. Since it’ll be new, I think they will be looking at the size of the payroll. Then, I guess, they will, on an ongoing basis, watch if there are repeat offenders — whether it was intentional, the seriousness. I think all those things will be considered, and they will be developing policy on this particular act as well.
G. Kyllo: So just with respect to process…. I appreciate the additional information from the minister.
The minister shared with us that there would be some work being undertaken by WorkSafeBC to establish a policy. Now, my understanding is that should this bill pass in the House…. The minister and his colleagues have the majority, so it’s probably highly unlikely it won’t. When the bill hits royal assent, it will have full force and effect. So on the day of royal assent, WorkSafeBC will have a new tool: an ability to levy fines directly against any employers that participate in any kind of suppression.
Is any work being done or contemplated about notifying employers immediately — I guess it could be done even now — saying that potentially, this is coming, or on the day that the bill receives royal assent? Are there any initiatives undertaken or consideration being taken by WorkSafeBC to better educate employers and employees about these pending changes?
As the minister referenced that policies will be worked on and fully developed, would I be correct in believing that any infractions that occurred immediately following royal assent but before the full development of policy…? How would the determination with respect to the level of final penalty…? How would that be determined in that interim period, while that policy is being fully developed?
Hon. H. Bains: I think the board knows that these issues are before the House with the anticipation that it may pass. I’m hoping that they have started working on some of these policy developments already. But the policy to levy fines or penalties already exists. They already have that criteria. Now they will be looking at this new one, and I’m hoping that they can insert that in part of their approach to the other penalties, as well, after royal assent. Then, when it becomes effective, I’m hoping that they will be in a position to implement this and levy penalties if they need to.
G. Kyllo: I appreciate the response from the minister. I guess back to the question about the educational component. I think we all want to see employers engage appropriately and not suppress claims. As we’ve discussed, there may be a few bad actors out there.
The Patterson report, again, references the need for increased educational awareness and communication both with employees and employers. Have there been any discussions with WorkSafeBC about what efforts they may be undertaking in the weeks following royal assent to actually really engage with the employer and employee community to ensure that they are fully aware of the potential magnitude of the fines and levies associated with the proposed changes?
Hon. H. Bains: I think the WCB has, already, a system in place where they do consult and advise the employer and the other stakeholders about the changes that are either coming through the legislation or through policy changes — on their own.
I expect that they will be reaching out as soon as they realize that the bill is being passed and that that information is sent out to advise them on what those changes are. Hopefully, the employer will get the message, and then they don’t have to levy any penalties.
G. Kyllo: We’ve been speaking about the ability of WorkSafeBC to apply penalties to employers that are suppressing claims. One of the recommendations from the Patterson report provides some suggestions on specific language, recommending the following, one of which includes: “Where the worker’s employment has been terminated due to the filing of a compensation claim, the remedy shall include, but not be limited to, reinstatement or a ‘make whole’ remedy without reinstatement at the worker’s election.”
I think what this is speaking to is that, apparently, and having a look at the report, there have been instances where an employee has been suppressed in making a claim, and when they raised that concern and expressed concerns about that suppression to the employer, their employment was terminated.
Now that employee is off work. They might file a claim with WorkSafeBC, and WorkSafeBC may undertake an investigation to determine, under this new legislation…. Although it might be appropriate that the employer certainly gets a fine associated with the bad behaviour, but what I haven’t heard, and I’m certainly not familiar with, is: what ability is there for WorkSafeBC to provide either any remuneration or require the reinstatement of employment?
The report goes on further to indicate that in not all instances is reinstatement of employment applicable. If an employee has been egregiously let go without cause, makes a claim, they may not be very welcome back in that same workplace.
Just wondering if there are existing considerations within WorkSafeBC that provide not just the penalty for the employer but also some additional form of compensation to the worker that has been negatively impacted by this harsh treatment.
Hon. H. Bains: This particular section doesn’t talk about the remedy for the worker, but it could fall under the other section that we will be debating later on. It is to return to work and duty to accommodate, and there is a requirement, a duty, to maintain employment. If it’s determined under that section, we’ll go a little deeper into it.
If requested by the worker, WorkSafeBC must determine if the employer has failed to comply with the duty to maintain employment. There are some remedies available there.
Yes, the employer can argue: “Well, I terminated this worker, and I’m not bringing him back.” Again, the determination will be made, under what terms that the employment was terminated. Is it because the employer refused to bring back the injured worker, who is ready to come back to work to their pre-injury…?
That particular recommendation in the Patterson, we did not…. We went ahead, under this particular section, just with the penalty.
G. Kyllo: I appreciate the reference to the duty to accommodate, but I believe that is very distinct and different from the circumstance that I presented and has actually been presented in the Patterson report on this section 43 recommendation.
As much as there’s a duty to penalize bad behaviour and penalize the employer — I certainly appreciate that — the question that is kind of raised in it…. It’s actually set out fairly clearly in the Patterson report with respect to section 43, which largely entails why we’re sitting here at this particular section of this bill. It’s that in the instance where an employee may have injured themselves, sustained an injury at work, and they go to make a claim. If the employer determines to terminate that employee, that employee is now out of work.
That employee could then certainly make a claim — I’m sure they would — to WorkSafeBC, and WorkSafeBC, over the course of the ongoing weeks, would undertake and investigate the termination that the employer was at fault for suppressing a claim, and a fine or levy or penalty could be placed against the employer.
But the question is…. It’s the concern that’s raised in the Patterson report: now what about that worker? That worker has had their employment terminated. They’ve been without pay for, at this point, maybe a number of weeks or a number of months. What consideration does that employee have? Does that employee get automatic reinstatement? They may not feel comfortable going back to work when they’ve actually been terminated on account of the employer’s actions to suppress a claim. And what financial remediation or restitution is provided to that worker?
Again, there must have been a significant reason for this specific wording to be recommended. Under recommendation 43 in the Patterson report: “Where a worker’s employment has been terminated due to the filing of a compensation claim, the remedy shall include but not be limited to reinstatement or a make-whole remedy without reinstatement at the workers election.”
It appears that the worker would have the opportunity to say: “You know what? It’s been a month now since I’ve been terminated. The employer just needs to make me whole, provide me payment for that past month, and I’ll go on my way.” But it would be their choice, or to go back and be reinstated as an employee.
I’m just trying to get a better understanding. Does the change set out in clause 2 of Bill 41 in any way address that, or is there additional legislation or policies in WorkSafeBC that would somehow adequately compensate that worker that’s been aggrieved in this way?
Hon. H. Bains: No, we did not put that in the act. Can WorkSafeBC do it on their own? I will leave it up to them to see if they have the capacity and the authority to do that. We’ll take a look.
There are other provisions, different parts of the health and safety…. Workers who bring up health and safety issues if they are terminated — there are remedies available. But in this particular case, we haven’t looked at that one. That wasn’t included.
G. Kyllo: Okay, that’s concerning. We all appreciate that if an employer, those few bad actors in the province, are suppressing claims, they should be penalized. There’s no question. But we also have to give consideration to compensation in some form to the aggrieved worker.
It should be no great surprise that this is a concern. There are only seven changes proposed in this bill, only seven of 100 plus. The information that was gleaned from these reports has been tabulated and incorporated into this particular bill.
The concern that I raise is a concern that was included and addressed in the Patterson report, so I’m kind of perplexed at the fact that a concern that was raised by the minister’s own consultant and shared with the ministry’s office was somehow overlooked in the creation of this particular piece of legislation.
Now, if there’s something else that exists elsewhere in WorkSafeBC that would address this aggrieved worker, I’ll be satisfied. I think workers in B.C. will be satisfied. But if the answer is: “Jeez, we didn’t think about it….” Well, how could you not think about it? It’s clearly right here, on pages 139 to 142 of the Patterson report that was put out in 2019. This is a significant oversight.
There’s been lots of consideration to laying penalties at the feet of the bad actor, and I support that. We also need to talk about and give consideration to compensation for the worker. If this potential incidence is occurring as many as the minister has indicated, 45,000 to 50,000 times a year, it’s a huge problem.
Now, fair enough. Not every employee that has a claim suppression may be terminated, but there may be other employees that even have lost time. I’m assuming that if there was a suppression of a claim and the board decides a number of weeks or months henceforth that there was a suppression….
Is there the ability for WorkSafeBC to require or to payout that employee for that lost time? That would seem an obvious…. I would assume that’s the case, but with the, I guess, lack of confidence the minister has in the case of a terminated employee, I think it probably behooves me to ask that.
In the instance where an employee has a workplace accident and that employee is put under a huge amount of duress by the employer to suppress that claim…. The employee is unable to go to work for a period of a week or more and then comes back to work and later makes this known to WorkSafeBC. In that instance, is that employee entitled to lost-time pay for the time that they were away on that particular workplace injury? I would assume so. I certainly hope the minister might be able to just clarify and confirm, at the very least, that that is addressed.
Hon. H. Bains: No, we did not take everything from Patterson, one.
Two, we will be looking at and, maybe, reaching out to WorkSafeBC to see if there are some provisions available already for employers who intimidate or coerce not to file a claim. So we will be reaching out to see if there are some provisions available already.
G. Kyllo: Well, that’s troubling. There are only seven proposed changes in this bill.
Patterson, in the report…. I’ll just read directly from the report. This is on page 141:
“I also recommend that in cases where the worker has been terminated from employment due to filing a compensation claim, the remedy be an election by the worker, either reinstatement or a ‘make whole’ remedy. I make this recommendation because many workers who are fired for filing a compensation claim are vulnerable workers or workers in precarious employment, and for these workers, reinstatement is an empty remedy.
“Finally I recommend that there be an education campaign for employers and workers around the issues.”
It goes on with the recommended wording, which included the one that I’d referenced earlier. “Where the worker’s employment has been terminated due to the filing of the compensation claim, the remedy shall include, but not be limited to, reinstatement or a ‘make whole’ remedy without the reinstatement, at the worker’s election.”
Two different consultants did a ton of research work, consultation around the province, as the minister has shared, to put forward a number of recommendations. The minister has brought forward, in Bill 41, some set recommendations, but the recommendations aren’t complete and, it appears, haven’t even given proper consideration to the real-world impacts — lots of, I guess, maybe consideration of the impacts on the employer.
As we are now hearing in this House, the potential remedy in compensation for the employee has not been considered. This is all about workers compensation, yet this particular section hasn’t given any consideration to compensation for the worker that’s been aggrieved due to the suppression or actions of an employer.
I would suggest that this entire section needs to do either a rework or a re-evaluation. I know we only have a few short sitting days, but I’d certainly encourage the minister to make the necessary changes to ensure that this piece of legislation actually provides compensation for aggrieved workers. As it currently stands…. As the minister has indicated, he hadn’t considered that, which, to me, is just beyond belief.
I hope the minister might give consideration to a potential amendment that might remedy the egregious oversight in this particular section that we’re debating here today.
Hon. H. Bains: We’re not considering any changes at this time. We are going to pursue WorkSafeBC to see what remedy is available to the worker in case the worker is subjected to discipline or termination and to see what remedy is available already within the system.
G. Kyllo: I appreciate that. Maybe the minister might be able to answer this.
In the instance where an employer may be levied…. As the minister indicated, some fines might be as high as $710,000. I think that’s the maximum cap. I’m aware of one particular incident, with a school district that I’m familiar with, where a penalty was levied against a school district or a school board for hundreds of thousands of dollars.
In those instances, when there’s a significant amount of revenue that actually is obtained by WorkSafeBC as a penalty for that employer…. Does WorkSafeBC have any ability to provide any additional financial remedy to the injured worker? Does that exist, or is the compensation provided to employees very set out and prescriptive within the existing policies of WorkSafeBC?
Hon. H. Bains: The member mentioned injured workers. First of all, the board doesn’t have the ability to compensate losses for someone who is injured at work, other than looking at what the act provides, which is wage loss, health care.
If it’s an injured worker and the claim is accepted, they will be on wage loss. The penalty goes against the employer. They tried to, or they did, suppress, and there’s a history. Based on those factors, a fine will be levied. I think the worker will be looked after through health care, through rehab and for wage loss. Sometimes there’s retraining, if there’s no job to go back to.
There are a number of options available to the board, but they don’t have the ability to pay someone who, due to the fault of a worker or employer, suffered some losses, other than the injury, which they will be able to look after through the provisions of the act.
G. Kyllo: I appreciate that clarity. I’m happy with that response.
I just want to confirm. In the case of a worker whose employment may be terminated for making a claim with WorkSafeBC…. There’s no specific provision in this act that would provide remuneration for that worker while they’re off employment. I’m assuming that the current legislation would allow for the requirement of reinstatement of that employee.
An employee may be wrongfully terminated, and the only cause is deemed to be for making a claim to WorkSafeBC. We know, with some of the backlogs and the amount of time to investigate, it may be a number of months before that employee…. In this interim period, that employee has had no wages, no compensation from WorkSafeBC. I’m just trying to get a better sense of what remedy would be provided to that worker that might have been terminated in that whole action of suppressing.
Maybe just let me clarify. Some workers may be terminated for making a claim. Some workers may be suppressed for making a claim and terminated, where that claim has not actually been filed, and they may not move forward to actually notify WorkSafeBC for a number of months.
Two different instances. In each instance, I just want to ensure that government and the ministry have given consideration to fair compensation for that worker while they are off work.
Hon. H. Bains: I guess the claim suppression will come to the forefront when the worker will say: “Look, I was told not to file a claim. I did, and now I’m terminated.”
I think the board will do the investigation. If the claim is accepted as a work-related injury, they will go on wage loss and all the other provisions available to that worker. Then that triggers the one that I already talked about: a return to work and duty to accommodate.
I think there are safeguards in here but not exactly in the way that the member was asking, that they should be part of this.
A. Olsen: Section 73 of the act is amended by adding a new subsection (2).
Currently 73(1) prohibits an employer from interfering in any way with the worker reporting to the board (a) an injury, (b) an illness or (c) a death. The addition of subsection (2) also prohibits an employer from interfering in any way with a worker (a) making or continuing an application for compensation or (b) “receiving compensation under the compensation provisions.” There is a distinction here, I’m certain. It’s just not entirely clear to me what that distinction is and how this expands the powers that are there.
Since the workers report their injury to the board by making an application for compensation, what additional protections does the amendment to 73 of this act make?
Hon. H. Bains: Section 73 of the act, as the member mentioned, currently prohibits an employer or supervisor from preventing a worker or a dependant of a worker from reporting certain matters to WorkSafeBC. As was mentioned here, it’s reporting, such as a workplace injury, illnesses, deaths, unsafe working conditions.
However, there’s no explicit reference in this section or anywhere else in this act against an employer or supervisor discouraging workers from filing compensation claims. You could report an injury, but if you end up taking time off later, then you have to file a claim. So it is to ensure that that part is also covered.
Just making it clear, reporting to the employer is one thing. They could say: “You report it to the first aid attendant or to the supervisor.” Then, rather than taking time off, which you may require later, you’re filing a claim which could be sometimes for medical coverage only or it could be wage loss. It’s just making it clear that both parts are covered.
A. Olsen: Does this decrease the number of suppressed claims?
Hon. H. Bains: There’s a clear direction here under this new provision of the act that now WorkSafe can enforce that particular part. That is the hope — that claim suppression will be minimized or somehow eliminated. That would be the end goal.
A. Olsen: Does WorkSafeBC currently have the power to enforce against the current provisions of workers’ claim suppression?
Hon. H. Bains: Yes, they do.
A. Olsen: We have a situation where we have a report that was commissioned by the minister of 45,000 estimated unclaimed work-related injuries in 2019. It’s a huge number. For whatever reason, potentially, people are not making those claims.
There is, I think, a difference and maybe also a distinction now with the addition here. However, there appears to be a situation where between 2018 and 2021, only four penalties of claims suppression have been issued by the board, and approximately $5,000 per penalty — a round number, average number, let’s say.
So how does this increase? We’ve already got 45,000 with the current act that we have. The board has the power to enforce that, to level penalties. Between 2018 and 2021, they did that four times.
How do we ensure that we actually increase and enforce the laws that are currently in place? It’s one thing to say: “Oh great, we’re creating a distinction that’s needed.” Yet the board’s not enforcing it, so we have 45,000 claims that have not been made.
Hon. H. Bains: The 45,000, or 40,000 to 50,000…. I think Petrie talked about both injury reporting and claims. So WorkSafe only was looking at…. They have tools to enforce the reporting part, but not the claims part. That’s one of the things now, where you add that and give them the tools to move in that area of enforcement as well. That’s one additional tool that they have now.
I think the other thing is that it still is a challenge. We are making these changes, but it is a challenge. Workers, sometimes, are afraid, intimidated to file claims. Until someone reports that that’s exactly what is happening, it’s difficult for anyone to act on it.
We’ve seen under the employment standards and other areas that workers do not want to file a claim and don’t want to be on the wrong side of the employer, which is wrong. One, they may not know their rights. Two, they believe that they trust the employer. The employer’s saying: “Don’t worry about it. We’ll look after you.”
I think a combination, a number of things, that is…. But I think it is a challenge about education and enforcement and deterrence. I think those are some of the things, the tools that we want to give to the board to make sure that that we can deal with this.
A. Olsen: Are we giving the board any of those tools to increase enforcement?
Hon. H. Bains: Yes, through the penalties, with the avoidance of reporting injuries, there are some tools available now. When you add claims suppression, then there will be a penalty. Like I said, the penalties could go up to about $710,000, based on the employer’s record, the size of the employer, the payroll record. The board will be able to….
Those numbers are high. I’m not sure what range, under these kinds of infractions, the board uses. You mentioned a couple of numbers, but we’ll be following it and monitoring and see what is happening in this particular area.
A. Olsen: What is the maximum penalty that the board can levy now against a business or an employer that suppresses the reporting?
Hon. H. Bains: Currently they have authority to go as high as $710,000. They can do that — have an administrative penalty — or they can choose, under some really serious situations, to go through their prosecution side as well.
A. Olsen: I think it’s important that we be very clear on what’s actually happening with this. I just want to make sure that I have that clarity. We currently have language that prohibits employers from suppressing the reporting of an injury. We are expanding this with the addition of subsection (2) to also include claim suppression in that.
The board currently has the ability to penalize reporting suppression up to $710,000. They’re now going to be given the power to extend those same penalties for claim suppression.
Okay, I’m getting nods. That’s good. I’m understanding what’s going on.
However, the experience is that over the period of 2018 to 2021, the board has used the power that they currently had…. All we’re doing is expanding the power into a new area of claim suppression. What we have is a board that’s seemingly unwilling to use the enforcement tools that we have already had, that we already give, the same enforcement tools that we’re now just expanding into a new area of policy. Four times they’ve used those powers to penalize an employer, between 2018 and 2021, with an average penalty of about $5,000.
So we’re not actually extending tools here…. We’re not actually setting a policy benchmark that says: “We need you to be actually enforcing this to bring it down.” We’re just simply saying: “You’ve got a new area where you can use the tools that you already have.” Is that correct?
Hon. H. Bains: I agree with the sentiment that the member is raising. When you look at the numbers and you look at the study, 40,000 to 50,000…. I guess the difference is that those 40,000 to 50,000 numbers are through their work of talking to people, maybe anonymously, who may not want to have their name come out, but in order for the board to act, they need to have some evidence, right? They need to have real people, real claims, real issues for them to investigate.
I agree that more needs to be done. I think one of the things that we will be pushing for will be the education of the employers and the workers to make sure that they know their rights and that the employer knows what their responsibility is. In moving forward, by expanding the area of jurisdiction and clarifying what other areas they need to be looking at, I think there’s a lot of work ahead of us.
A. Olsen: I recognize that, perhaps, the reality is more nuanced than the conversation that we’re having right now. All sorts of worker injuries or potential reports…. As the minister was talking to staff, we’re having a conversation here.
There are nuances here, for sure. The difference between four and 45,000 is a huge number. I think that that’s probably what I’d like to draw a distinction on. Even if it’s a few dozen enforcement actions that are taken by the board, that’s an increase, recognizing that the 45,000 might be a massive number that includes things that are never going to be reported, just simply because people choose not to report them.
However, there have been recommendations that have been tabled in these reports for the minister, with respect to actions that can be taken to also minimize claim suppression, that are not in here. What other tools have the minister and the ministry considered — in order to either increase the enforcement activity or to diminish claims suppression — that are not in the legislation that we’re looking at today?
It could be done through policy, or it could be done elsewhere. The minister mentioned one, for example: greater education, both of the employer and, actually, of the employee, who might make a decision not to report and, therefore, take a suppressing action on themselves, right?
Hon. H. Bains: After we’re out of here — hopefully, the bill has passed — we will have those discussions, which we did when we first formed government in 2017. We talked to the board, brought to their attention some of the issues that were raised with us about prevention at the workplace, the prevention of injuries and improving health and safety. They reacted positively by having more enforcement officers and more inspections, for example, and also increased education.
We already talked about the education component, but now we will be having a discussion that they need to have better enforcement. Hopefully, they could add more resources, which will be my expectation. They have the resources to do that.
The Chair: All right. Members, we’re going to take a ten-minute recess. If everybody could come back at 20 after four. We’ll see you in ten minutes. This House will stand in recess until then.
The committee recessed from 4:10 p.m. to 4:23 p.m.
[M. Dykeman in the chair.]
G. Kyllo: As we’ve talked about, the claim suppression…. And I think the minister has also shared in some of his commentary the fact that any efforts by employers to suppress claims is something that should be penalized. It’s certainly bad practice, and also could, potentially, have significant ongoing challenges for the employee. An employee that may not make a claim for a work-related injury may have significant complications years down the road, and if they fail to make the claim now, they basically remove the ability for them to actually get compensation that they otherwise would have been due when making a claim. So it’s incredibly important.
The minister also shared that the other thing that happens is if an employee were going to a hospital to get attended for an injury, if they don’t identify that that’s a workplace injury, the cost burden associated with that hospital visit is then borne by the general public, by the health care system. Obviously, any efforts to reduce the incident of claim suppressions is something that I support, and I believe that all good employers in B.C. would also respect and support.
But with that is, as we know, the increased number of claims, and we do want to see an increased number of work-related accidents being reported and a reduction in claim suppression…. With that, I’m just wondering, has any consideration of the cost impact been identified or considered?
As the example I provided, a worker falls and maybe cuts their arm open at work, for whatever reason goes to the hospital and says: “Oh, no. I did it at home. It’s not a workplace accident.” There’s a cost associated with that. Obviously, if that claim is now going to be reported as a workplace injury, those cost burdens will be now borne by WorkSafeBC and not by the broader health care system, and I support that.
Has any work been undertaken to determine what the potential costs may include? How much cost is being borne by the broader public health service for workplace injuries that will now be shifted back to WorkSafeBC? Has WorkSafeBC given consideration to what that additional annual cost might be to the organization?
Hon. H. Bains: I think we talked about this, whether we get individual costing in dollar amounts or collective, the entire package. We’re going to get that information from the board, hopefully soon, but it is still part of the seven cents. That is the total cost impact it could have on the premiums.
G. Kyllo: I guess a bit of a follow up. My colleague, the Leader of the Third Party, had provided some information that I hadn’t seen previously. In his presentation, questioning of the minister indicated that over the three-year period, I believe from 2019 to 2021, there were only four or five instances where employees were actually penalized for what was deemed to be claim suppression. It was either claim suppression or failure to report. Sorry. I’m getting corrected — for a failure to report an actual workplace incident, which seems like an incredibly small number.
I think that my colleague referenced that over a three-year period, there were only four or five instances for all the employers in the province where they actually had fines levied against them for failure to actually report an accident.
It’s interesting. The minister has shared from some of the work that was undertaken by Petrie that there are potentially as many as 40,000 to 50,000 unreported accidents in the workplace.
I’m trying to get a bit of a sense from the minister. What are they anticipating as far as the actual instances of unreported claims and the amount of suppression happening? There’s been lots of talk about the potential numbers out there, but when we compare that to the very, very small number of actual penalties being applied for workers that failed to actually identify or report a workplace-related injury, it kind of calls into question the magnitude of the issue, just how large that actually is.
I’m not sure if the minister has any additional information he can share, but it just certainly seems to me, on the back of the information provided by the Leader of the Third Party, that the size of the concern that’s confronted by us and hopefully going to be remediated by the changes under section 2, may be characterized as a far bigger problem than it actually is.
Is there any sense to how many penalties may be employed or alleviated against employers for claim suppression in the next year, two years, three years? How big of a problem is it and what does WorkSafeBC anticipate the amount of time and energy that they will be expending towards investigating claims suppression?
Hon. H. Bains: There’s so much that is underground, basically. The 40,000 to 50,000 claims identified by Petrie are a huge potential out there.
He went on to recommend, in his second report, that the board develop a claim suppression audit tool to be applied where there is evidence of possible claim suppression in a workplace to determine whether violations have occurred and whether penalty consideration is warranted. Also, that the WCB establish a special claim suppression unit with trained investigators from claims services, prevention services and assessment services to enforce the provision of the act that prohibits claim suppression.
So I think those recommendations were passed on to the WCB, and they’re working on it. As for the case in their first report, out of, I believe it’s 40 recommendations….
Interjection.
Hon. H. Bains: It’s 43 recommendations. Most of them have been adopted. There were some that required legislative changes, one or two, and then the others, they were working on. So here’s another.
It’s in the second report that they recommend how to deal with this issue. So I’m expecting that the board is looking at that, and hopefully they’ll do a better job.
G. Kyllo: I appreciate that. I certainly anticipate that there…. What I’m hearing from the minister is there’s not necessarily a need for additional enforcement, just more training, maybe, within the existing enforcement branch to better understand, I guess, and identify this.
I guess what I would also say is that from what I can see, there’s nothing that would prevent an employee that feels that their right to make a WorkSafeBC claim has been suppressed…. There’s nothing that prohibits them from actually bringing that claim forward to WorkSafeBC. There do appear to be, in the existing legislation, some challenges that limit the ability to effect an actual penalty against an employer. But there’s certainly nothing currently that prohibits an employee from making a claim or for sharing with WorkSafeBC that there have been efforts by the employer to suppress that.
Is that something that is currently being tracked by WorkSafeBC? I know we talked about the Petrie report, but I don’t think I’ve asked the question: what is the volume of concerns brought forward by employees that feel that their employers have been suppressing their ability to make a claim? Is that something that’s actually reported out by WorkSafeBC? That would certainly be a number that I would be interested in learning.
Hon. H. Bains: When Petrie was commissioned to do this report, he realized the board wasn’t doing this data collection, and he did it. He did an almost-700-worker survey. Again, it is those who are willing to talk. He found out that 15 of them indicated that the employer said they were not eligible, 17 said that they would get in trouble if they reported their injury, nine said that the employer pressured or threatened them not to apply, and seven said that fellow workers pressured them not to apply to avoid losing a bonus. So there’s a variety of reasons.
But again, it is difficult for boards to know how many workers actually suffered injuries at workplaces and did not apply. Some, as the member said, end up going and applying, and those numbers are not very many.
I think there’s work that needs to be done. I think that’s why Petrie reported that they established those specialized enforcement units, investigators, and the board is looking at that. Maybe through those approaches, they will be able to do a better job.
G. Kyllo: Well, it’s surprising. I appreciate the minister for what he shared, again referring back to the Petrie report. Patterson lays out quite succinctly that the challenge is not that the regulation does not prohibit the act. She states that section 177 of the act is comprehensive, “stating that an employer must not attempt to prevent ‘by agreement, threat, promise, inducement, persuasion or by other means, seek to discourage, impede or dissuade a worker from reporting…to the board.’” So it’s really clear. Employers are not allowed to do it.
The challenge has been when it goes to the actual enforcement portion, section 151, and she goes on to say: “However, the enforcement provision in section 151 applies only to employer conduct against workers reporting safety issues under part 3 of the act. WCAT panels have consistently found that the statutory protection of section 151 does not apply to workers filing compensation claims under part 1.”
The current legislation is clear. Workers can’t suppress it. When it comes to try and apply a legislative or a penalty to that employer, that is where the disconnect is. That is my understanding through reading this recommendation 43 — what has arrived to section 2.
It surprises me that if the responsibility of the company and the agreement prohibits them from dissuading a worker, there’s certainly nothing out there that I can see that would dissuade a worker from letting WorkSafeBC know that there’s been a problem. If WorkSafeBC has not been tracking this, that’s surprising.
There’s actually reference here to a number of WCAT tribunals where they attempted to apply an administrative penalty to the employer. An employer challenged it, and the ruling was actually not in favour of WCAT but in favour of the employer because of the weakness of the legislation. In those instances that actually went as far as going to an actual tribunal, there certainly would be documentation within WorkSafeBC of those instances.
So if WorkSafeBC is saying that they haven’t tracked it, that is incredibly surprising and certainly concerning. If there are efforts of employers that are noted where employers are suppressing claims, which is in violation of 177 of the act, and through no fault of WorkSafeBC but through the fault of the legislation, there’s an out-clause which has not allowed for WCAT to actually apply an administrative penalty. I can’t understand why WorkSafeBC wouldn’t be tracking that.
There’s a section of the act that we know is not being followed. It’s being impinged upon by the acts of some employers in a suppressive way. For WorkSafeBC to say, “Well, we don’t track that,” I just can’t understand that. I wanted to…. Has the minister challenged WorkSafeBC for why they have not been tracking egregious behaviour by employers that they know was directly in contravention of 177 of the act?
Hon. H. Bains: The example the member is using, WCAT rejecting the obligation…. I think, again, we’re talking about two things. That’s what we’re trying to fix here. It was reporting. What’s prohibited is reporting of the injury.
My understanding is that what WCAT was dealing with were the claims. We are making it clear that the same provisions would apply, as was the case for reporting an injury, illness or death. Now, section (2) says: “An employer or supervisor must not, by agreement, threat, promise, inducement, persuasion or any other means, seek to discourage, impede or dissuade a worker of the employer, or dependant of the worker, from (a) making or maintaining an application for compensation under the compensation provisions, or (b) receiving compensation under the compensation provisions.”
There was a bit of clarity that was needed to make it explicitly clear that filing a claim for compensation…. Also, there’s a prohibition of convincing a worker not to. That’s what we’re trying to fix.
Now, coming back to WorkSafeBC, what they do, we have done a lot of work in the last five years improving their case management and their approach to dealing with workers. Certainly, there’s a lot more work that needs to be done. I think, in our regular meetings with the board which I have, I will be bringing it to their attention to make sure that they need to move.
I will ask them how far they have gone in complying with the Petrie recommendations, how to do better enforcement — tracking and enforcement. I think that’s something that we would be talking to them about.
G. Kyllo: I appreciate the comments from the minister. But it clearly states, under section 177 of the act, that employers must not attempt to prevent “by agreement, threat, promise, inducement, persuasion or any other means, seek or discourage, impede or dissuade a worker” from reporting to the board. It’s pretty clear: employers can’t do that. The employers cannot withhold or suppress reporting to the board.
The challenge has been that they haven’t been able to levy fines, because section 177 is out of sync with 151. That does not expand, I guess, the ability to apply an administrative penalty for their efforts to suppress a claim.
The Patterson report came out in 2019, so that’s three years ago. For three years, apparently, WorkSafeBC must have reviewed this report. They must have been concerned about the findings. They must have given comment, I would assume. I would assume that the minister would have looked to WorkSafeBC and the board to give a thoughtful review of the report and give some advice to the minister on which items they might be in agreement with or not.
It’s pretty apparent here that WCAT was frustrated. They have had instances where employees have had their claims, their ability to lodge their complaints with the board, suppressed by the employer. They’ve lodged those complaints with WorkSafeBC. WorkSafeBC has been unable, because of this challenge with the legislation, to actually impose a penalty, yet they haven’t tracked it.
I certainly appreciate that the minister now is going to have a conversation with WorkSafeBC, but it doesn’t speak to an organization that is very proactive in trying to manage and actually fully understand the cost implications and some of the challenges that they deal with, with respect to claims. So I’ll leave that particular piece alone.
There was an instance that the minister provided in his response — I believe it was in the reading of the response from Petrie — where there may be instances where fellow employees encourage an employee not to make a claim. I’ve certainly seen it in organizations where they have 282 days accident-free, and if they can get to 285, they might get a new jacket or a safety award. In the instance where employees are potentially coercing an employee to not make that claim or to file the workplace injury accident report, how will the investigators make a determination of what the employer was aware of, what the employer wasn’t aware of?
There’s no question that even the inducement or encouragement by their employees is something that should certainly be frowned upon. But I just wonder if the minister or WorkSafeBC have given consideration to the nuance between where it’s clearly from the employer…. The employer, I would assume, is probably senior management, but at what level? If it’s a department head in a smaller department that maybe is saying, “Hey, you know what? You probably shouldn’t make that claim,” would that go back and bear back to the employer and, potentially, put the employer at risk of an administrative penalty?
The minister has shared, even, that concern that was written by Petrie, where it’s not always upper management or senior management that are the ones trying to suppress claims. I just wonder if the minister has any thoughts on that.
Hon. H. Bains: Look, I think there are two different areas. That’s what we are trying to improve. One was reporting of injuries, which was already prohibited, but now we’re adding filing for claims for compensation. That’s where the frustration was there — that the language wasn’t clear. That’s why we are adding that section. Now, the language is clear again.
In the act here, what we are proposing: “An employer or supervisor must not, by agreement, threat, promise, inducement, persuasion or any other means, seek to discourage, impede or dissuade a worker of the employer, or a dependant of the worker, from (a) making or maintaining an application for compensation under the compensation provisions, or (b) receiving compensation under the compensation provisions.”
The worker is not added in here. I have seen, in my life, there were some incentives given. There would be a jacket after so many days. The safety committees never agreed with that. That’s not the way to do it. Again, it’s their argument. I’m not bringing that in here for the same reasons that workers are not or somehow indirectly pressured not to file a claim.
Again, it’s the responsibility of the employer to make sure that all injuries are reported on a timely fashion. If there is evidence of an employer using their authority to discourage workers, then this action comes into play, and there are consequences.
G. Kyllo: Can the minister provide examples where employees or their dependents faced retaliation for seeking compensation? It’s interesting. The change proposed as set out in section 2 is not just for the employee but also for their dependents. I’m just trying to get a better understanding of why the dependent is included as part of that language. Then, also, are there any examples or incidents where the minister has been made aware where dependents have faced retaliation for seeking compensation from WorkSafeBC?
Hon. H. Bains: It would be under, I think, a case of fatality — that’s where the dependent comes in — or it could be the worker who was not able to, due to a serious enough injury, make their own decisions. That’s why the dependents are included.
G. Kyllo: Are there any examples of that? That seems absolutely egregious that that behaviour would exist, but it must be in here for a reason. I’m just wondering if there are any specific examples or instances where that has come up and if the minister might be able to share that with this House.
Hon. H. Bains: I think the idea here is to ensure that that doesn’t happen. In the event that you leave that out, and there is a claim, then technically they would say that it was the dependent. We didn’t dissuade the worker. I think it is just to make sure that we cover all the angles.
G. Kyllo: Is that consistent with what other jurisdictions across Canada have done with respect to any efforts to penalize employers that might otherwise suppress the application for claims?
[R. Leonard in the Chair.]
Hon. H. Bains: Other jurisdictions, as we give you a cross-section of different jurisdictions…. They do have claim suppression language in there, and we have that for injury reporting, and in there, the dependant of the worker also is included. So it was advisable that we mirror the same language under filing claim compensation as well. We could find what other exact language other jurisdictions have, but we don’t have it right here.
Clause 2 approved.
On clause 3.
G. Kyllo: The minister was kind enough to provide me with this cross-jurisdictional scan, and I do appreciate that B.C. has been a bit of an outlier when it comes to the percentage, or the maximum percentage, that can be provided for hearing loss.
The minister has provided a list just basically indicating…. It’s just got some check marks. When it goes to compensate hearing loss more than 15 percent, the other provinces are all checked off.
I was just wondering. What is the actual rate of the different provinces? And I guess maybe when the minister provides his response, part of it could be…. Is it the intention of government to be average?
There has been lots of consideration to what other provinces are doing, and I think I appreciate that we may not want to be at the bottom of the pack. But was there any goal or initiative for the minister? Do we want to be kind of average, in the middle of the pack, or do we want to be leading at the top of the pack on many of these different issues? It’s not just a yes or no — yes, we have it, or no, we don’t — on many of these items. Quite often, within these, there’s a range of compensation, specifically around hearing, which is set out under clause 3.
My understanding is that the current maximum percentage for hearing loss, for permanent hearing loss, is 15 percent. I appreciate the minister wants to raise that, and I have no quarrel with that. But I just wanted to have a look at what the percentage is in other jurisdictions across Canada. I just wonder if the minister might be able to provide that information.
Hon. H. Bains: Yes, fortunately, we have that information here today. The other jurisdictions: 30 percent is Alberta, New Brunswick, Nova Scotia and Newfoundland; 35 percent is Saskatchewan, Manitoba, Ontario, Prince Edward Island, Northwest Territories, Yukon; and 54 percent is Quebec.
G. Kyllo: I appreciate that. That was pretty quick, but if I wrote this down correctly, three provinces are at 30 percent, five provinces have a maximum of 35 percent, and one is at 54 percent. Considering what the other provinces across Canada are providing, how did that inform the minister with respect to the drafting of the legislation that’s before us? Apparently, in my understanding, it could be as high as 100 percent, that it’s open to the board to actually make that determination.
Hon. H. Bains: The board right now has the capacity and the authority to set disability percentages for different parts of the body. They have a certain manual that they follow. For example, there is — I’m just going by memory — a higher percentage if you lose your right thumb if you’re right-handed compared to left. Then you go down to the other fingers, which would be less of an overall percentage of the disability. So I think they have certain criteria to follow. They do that.
I think this was the issue, that they have a cap of 15 percent. Then when they went around and looked at the other jurisdictions, we were the outlier, and they asked us to lift that. That requires legislative changes to lift the cap of 15 percent, which we are doing.
Now they will be going back. As they have done with other disability percentages, they could do this one as well. I’m sure they’ll look at the other jurisdictions and also look at the total disability and what the appropriate level should be. They will be making those decisions.
G. Kyllo: Lookit, I appreciate that there’s…. It’s always important to have a look at what other jurisdictions are doing. It doesn’t necessarily mean that we need to follow all other jurisdictions.
The minister, in contemplating the number of changes set out in Bill 41, in part indicated that there was a cross-jurisdictional scan, wanted to have a look at what other provinces were doing. But in this instance, the recommendation is to set a cap, I believe, up to a maximum of 100 percent.
The current provision in this bill provides the opportunity…. It’s my understanding that currently there’s a cap of 15 percent. So for somebody that has permanent hearing loss or even partial hearing loss, the amount of compensation paid to a worker could be as high as 15 percent. Not in all instances, but it could be as high as 15. This proposed change would allow that to be 100 percent.
I just wanted to clarify that. Does this give WorkSafeBC the ability of setting and establishing a rate that could be as high as 100 percent?
Hon. H. Bains: This section is removing the cap of 15 percent. It gives WorkSafeBC the authority to set the appropriate levels. Like I said, they have already determined different parts of the body and what percentage of the overall 100 percent percentage that would be.
I mean, they could have done 100 percent for the loss of a thumb, but they have certain levels for different parts of the body based on, I guess, the sizes and the uses of the body parts. But 100 percent is like a total disability — 100 percent.
It’s highly unlikely that the WCB will look at the hearing loss, even a total loss, as 100 percent. The 100 percent, basically, is the total disability of the entire body. This will be dealt with similar to all the other different percentages of disability, as they have determined in the past, for other parts of the body.
G. Kyllo: Could the minister share with this House why caps are in place? There must be a reason why the province has established a cap. As the minister has provided a bit more clarity, it appears that WorkSafeBC and other compensation boards across Canada have the ability of providing compensation up to the maximum of the cap that is set for hearing loss.
I appreciate that can have a very significant impact on workers’ lives, especially for 100 percent hearing loss, but there must be a reason why other provinces maintain a cap. I would also assume that within WorkSafeBC, the current legislation, caps must exist for other types of loss of use — whether it’s loss of an arm or a limb, or other impacts that negatively impact an employee’s ability to generate income for themselves.
It seems like a bit of an outlier. We certainly would be an outlier in all of Canada if we eliminate the cap entirely. I’m just wondering what it is that is driving the minister to remove the cap entirely, which will put us out of sync with other jurisdictions across Canada and would potentially allow WorkSafeBC to make a determination to go as high as 100 percent without any scrutiny of this House.
Hon. H. Bains: Maybe there is a clarification needed.
When you look at the other jurisdictions — 35 percent, 54 percent or 30 percent — these are not caps. Through policy, those boards determined what percentage of 100 percent disability a total loss of hearing means. They decided, in those jurisdictions, that it’s 30 percent, 35 percent or 54 percent. It’s based on their science and their research.
All we’re doing is just like what they have done for all other parts of the body. They’re not caps. That’s what they have determined is what represents the percentage of disability, of the total disability.
I think that’s what we are giving our board — the authority to establish what it should be. The total hearing loss, for example. What is the maximum that could be, compared to the total disability or 100 percent disability? I think that’s what we are doing here.
G. Kyllo: I believe that the maximum compensation rate for 100 percent disability for a worker if they’re not able to work is $100,000 a year. Is that the maximum that’s available for an injured worker?
In any event, whatever that number is, if the minister could maybe just provide what that total maximum loss is or what the long-term disability payment could be for a worker who is incapacitated and unable to work.
Then, as we look at these caps, again, there must be a reason why these caps are in place in other jurisdictions across Canada. There must be a reason why there was a cap put in place with respect to hearing loss in B.C. I certainly have no quarrel with increasing that percentage so we’re more commensurate with other jurisdictions, but removing it in its entirety seems to be putting us offside with other jurisdictions across Canada.
I’m just wondering if the minister can share with this House why they’ve decided to remove the cap in its entirety. Also, maybe in part of that, if the minister could share with us if there are other forms of disability that also do not have a cap attached to them and entirely rely just on WorkSafeBC to make their own determination on what the amount might be.
Hon. H. Bains: I think another clarification. Other jurisdictions don’t have those caps in their legislation. It’s the board who makes those decisions, as they have done for other disabilities of the bodies. And that’s exactly what we were doing, allowing WorkSafeBC to set what the level of percentage of disability hearing loss would mean compared to the 100 percent of the disability. They would be doing that.
All the other disability percentages of disability are not in the legislation either. They make those decisions. You know, you lose your arm. They know and have established what that particular disability means compared to the overall 100 percent disability, and that’s how they determine, I guess, the benefits. Now we are moving this back to them as well, as other jurisdictions have done.
G. Kyllo: I appreciate that additional clarity from the minister. What I understand from the minister’s response is that there’s no other form of injury that is set out in legislation that actually has a cap, that this is the outlier. This is the sole and only area of work-related disability that actually is in the legislation. By removing the cap, we’ll then just turn the decision around the percentage fully over to WorkSafeBC, and that is actually consistent with other jurisdictions. Although the minister referenced the percentages of the cap on other jurisdictions, it’s not in legislation. It is through, I guess, policy within WorkSafeBC. If the minister could just confirm that that’s correct.
Hon. H. Bains: I’m relying on my very capable staff. That’s what I’m advised.
G. Kyllo: Excellent. Thank you very much. As you can imagine, I’m interested to understand what WorkSafeBC has undertaken to determine what the level may or may not be.
Is there a desire to provide a rate that’s comparable to other jurisdictions in Canada? Average? Do we want to be best in class? Has there been any conversations with WorkSafeBC with respect to where they might land once they have the ability to move that rate to anywhere from the current 15 percent to upwards of 100 percent? I wondered if they’d give consideration to that. In doing that, also, if they’d give consideration to what the estimated annualized cost will be.
Initially, there will be additional costs for all workers that have various forms of hearing loss. It likely would result in them having an increased elevation of compensation claims immediately as well as ongoing. That would be one cost. Then, obviously, what the potential cost may be on future claims as they come in, because the cost of administering the compensation for future hearing losses also will be going up. So two numbers.
To the minister, I’m just wondering if he has that information for me.
Hon. H. Bains: No, I’m not going to suggest to the board what level and what criteria to use. They have done their work on all other disabilities, different parts of the bodies. I’m quite confident that they will come up with the right level that is appropriate for us here in British Columbia.
I’m sure they’ll look at other jurisdictions. That’s why they approached us. They looked at other jurisdictions. We were way below the other jurisdictions. I’m sure that they will be looking at what is a comparable….
I will leave it up to them. They are the experts. They have done that type of work before, and I’m sure they will make the right decisions here as well.
G. Kyllo: I certainly wasn’t suggesting that the minister would be, necessarily, encouraging WorkSafeBC to establish the rate or telling them what it should or should not be.
My question was: has the minister engaged with WorkSafeBC to come to some semblance of understanding on what the rate might be that WorkSafeBC would propose? This legislation likely could hit royal assent as early as Thursday of this week. When that happens, WorkSafeBC will have that ability and opportunity to set and adjust that rate.
I certainly have asked a series of questions to better understand what the cost implications are of all of the different components of Bill 41. This is, yet again, one of those.
Again, has the minister requested, engaged or otherwise had any conversation with WorkSafeBC around what the cost implications will be for this proposed change, for existing injured workers that have various stages of hearing loss, as well as what the future cost implications will be for WorkSafeBC?
Hon. H. Bains: My answer is the same as I gave to many other questions before. It’s part of the seven cents impact that it could have on the premiums of the employer.
The other costs that the member has been asking…. I promised that I will try to get that information. When I get it, I will share it with the member.
G. Kyllo: Again, not surprising but definitely concerning when decisions of a minister responsible for a Crown corporation are being made without any real consideration of the cost implications. That’s incredibly challenging.
One further clarification, just so I have a better understanding. Once the rate is set by WorkSafeBC…. Let’s assume it’s currently 15 percent. I’m assuming it’s going to be much higher, whether it’s along the lines of the provincial average, which is probably around 37 or 38 percent, or whether it’s at the top cap, maybe around 54 percent, which is the highest jurisdiction. Once that determination or that number is determined….
Can the minister share what the process is for how WorkSafeBC establishes that maximum cap that’s available for total hearing loss? How do they determine for partial hearing loss? What is the determination for partial hearing loss, and how do they establish the total potential compensation you could receive for total hearing loss? How does WorkSafeBC make a determination on what percentage employees are actually entitled to?
Hon. H. Bains: It is based on the level of hearing loss in one ear and also the other ear. What type of disability exists in the one ear that is the most affected and the other one least affected?
Again, it is about the level of loss. For example, under the current…. If zero to 27 decibels is the loss, there’s zero disability considered. If you go to 28 to 32, they have a disability. For the ear most affected, it will be 0.3. The percentage of disability for the ear least affected will be 1.2. The highest right now is 15, between the two ears. I’m just guessing. If they go to 30….
All of these areas of disability will move up proportionately. They could use other formulas to see where everything fits. But it is the total level of loss of hearing in one ear and then the other ear, the ear that is the most affected or least affected. That’s how they determine….
There’s a scale that they use. They will be following the same scale, I’m sure.
Clause 3 approved.
On clause 4.
G. Kyllo: Can the minister confirm that clause 4 was based on recommendations 57 and 59 of the Patterson report?
Hon. H. Bains: Yes, it was one of the recommendations by Patterson, through that report.
Again, like others, there was a mention by Patterson about some of the recommendations, but there were others who recommended some of those changes. Here is something that she identified that she recommended we move on.
G. Kyllo: I do see from the cross-jurisdictional summary that other provinces in Canada do have this, so I’m certainly happy to see this coming forward.
Was a thorough review of other legislation across Canada, other jurisdictions, undertaken as part of the review process in creating the legislation that’s before us today?
Hon. H. Bains: The Patterson recommended to look at other models, namely Ontario and Manitoba. The ministry looked at those two jurisdictions, and that’s what we’re trying to mirror.
G. Kyllo: Are return-to-work stats in B.C. comparable to other jurisdictions that already have legislation in place? I appreciate that we have yet to have legislation, and that’s what Bill 41 is contemplating, but has any cross-jurisdictional comparison been undertaken to determine the actual claims associated with this from other jurisdictions across Canada to B.C.? Are other provinces that have the legislation performing much better when it comes to the ability and the duty for employers to accommodate?
Hon. H. Bains: I must say that one of the fundamentals of the workers compensation system is to help injured workers with health care, with rehab, with training and retraining and pain management to get back to their pre-injury job. We didn’t have those provisions. The employer wasn’t required to. So it’s hard to compare apples to apples.
Patterson looked at other jurisdictions and recommended that we include this. I’m sure that you can read into what she’s suggesting: that it is working in other jurisdictions. But we don’t have that provision that we need to make that work here, through these changes.
G. Kyllo: Workers that are injured are likely largely getting paid workers compensation benefits while they’re healing, getting treatment, potentially getting additional training, and then, at some point in time, would be taken off WorkSafe compensation payments in order to return to work — not necessarily to the same employer. That must be a stat that WorkSafeBC is tracking: the number of months that an injured worker might be off work before they return to work. I would assume that that would be something that they would be tracking.
I’m wondering. I certainly support the intent of the legislation on this particular clause. It does make sense, and it never hurts to reinforce in language what I think we all would feel would be right and just.
However, the question that I’m trying to find an answer to is: how are we stacking up compared to other jurisdictions across Canada? Surely WorkSafeBC must be tracking the costs associated and the amount of time for injured workers to get back to gainful employment. And if they aren’t, well, that would be a great surprise.
I would assume, in the tabling of this particular legislation, in this particular section, that there would be some consideration to what other jurisdictions are doing to get workers rehabilitated and back to the workplace sooner. And I would assume that that would be one of the considerations that would have been undertaken in determining that this was one of the key areas to be included in Bill 41.
Hon. H. Bains: They certainly are tracking return-to-work performances here. It’s in their annual report, if the member wishes to take a look at that. There are a number of different areas of tracking that they’ve done. Also, there are two or three pages, again, listed here. How to improve return-to-work outcomes — that is based on what tools they have today, what language they have today. Their targets are set here, and what their…. The real realization is certain areas, but their targets are also set, and what they are actually talking about is how to improve.
I think if we are to compare with other jurisdictions, it’s not in here, but we can take a look at that, because it’s Patterson who did that kind of work and suggested that we should be looking at making those changes here to make these return-to-work improvements.
What the board is already trying to do…. One of their goals is to reduce the provincial time-loss claim rate, improve return-to-work — 2017, ’18, ’19, ’20, 2021. That’s the kind of result that they are looking at. If you look at 2017, 81.8 percent — that’s what their target was. In 2022, it was 80.
I think there are a number of areas that they are tracking. How they can make improvements…. I think we can find out exactly what the comparison with other jurisdictions is. But it is guided by the reports that we have commissioned, and that’s why we’re here.
G. Kyllo: Well I’m relieved to hear that at least, WorkSafeBC is tracking that. That’s fantastic. But I’m kind of surprised that there wasn’t a comparison to other jurisdictions across Canada. We’ve looked at other jurisdictions across Canada for many different factors, which has, I think, helped to guide the minister with Bill 41.
What I’m trying to understand and have a bit of a feeling for is how we are performing on our return-to-work programs currently, without this proposed legislative change. Are we bottom of the pack? Are we top of the pack? Is there really a problem? Are we performing better than other provinces on our return-to-work programs currently?
Certainly, I support any incremental changes that can help to improve our performance, but I’m a bit surprised that there hasn’t been consideration to how B.C. is doing on the performance metric when it comes to the return to work of injured workers compared to other jurisdictions across Canada.
I’ll leave that. The minister, certainly, is more than welcome to share additional information if he has anything else he can share.
With respect to the return-to-work program, and specifically this piece of legislation, there’s a reference to “undue hardship” in relation to this section. If I can ask: will it apply consistently across both larger and smaller employers, and is there a formal definition of undue hardship?
It’s a term that’s referenced in here, and I want to have a really clear understanding of specifically what determines undue hardship and who makes the determination. Is the determination the same for a larger employer versus a smaller employer? Does it take into consideration the profitability of a company? A company that may be just barely scraping by and barely making payroll may not have the same abilities of a company that’s got a healthy balance sheet.
When you talk about hardship, is that hardship and that determination going to be determined based on the specific business, or is it some other arbitrary or maybe even a well-defined definition? This comes down to an important piece. Employers need to have a good understanding of how this will be interpreted. It’s certainly an area that I want to spend a little bit of time on just to fully understand the definition and how it will be applied.
Hon. H. Bains: First of all, there is a limitation. This does not apply to employers with 20 or fewer employees.
Then the member talked about the undue hardship. What does that mean? What’s the definition? Let me say that this is the advice we received. The requirement under subsection (5) for an employer to accommodate the injured worker up to the point of undue hardship aligns with Patterson’s recommendations.
In addition, both Ontario and Manitoba workers compensation legislation states that the employer must accommodate the work or the workplace to the needs of the worker, to the extent that the accommodation does not cause the employer undue hardship.
I am advised that the threshold for undue hardship is high and contemplate that the accommodation will involve some degree of hardship for the employer, such as cost, inconvenience and work distribution. There’s no definition under the act right now, and there is no formula for deciding what costs represent undue hardship. An employer will be expected to exhaust all reasonable possibilities for accommodation before they can claim undue hardship.
The duty to accommodate until the point of undue hardship comes from the human rights code as well, because the case laws have determined what undue hardship is. So obviously, the WCB can determine their own, going through their processes, but there is a definition and the case law to guide WorkSafe when they are developing this policy.
G. Kyllo: I appreciate the response from the minister, albeit with a bit of lack of clarity. The term “undue hardship” and, I guess, this particular clause…. This starts to a bit mirror what is already set out in the human rights code. There has always been, I believe, since…. I believe there was a Supreme Court challenge in the 1980s that set out the duty to accommodate, so this has actually been built into the Charter for a significant number of years. So this is not something new, although it does provide an opportunity for WorkSafeBC to make that determination and potentially, I’m assuming, put in enforcement orders.
I’m not sure if they can do that to an employer, where WorkSafeBC can actually direct a company to undertake significant capital cost changes to accommodate a particular worker. I’m not sure if that’s the case. Certainly, if the minister can provide any context of whether that is something that’s available to WorkSafeBC…. Also, when it comes to the potential establishment of a penalty or administrative penalty for a company that, in WorkSafeBC’s determination, does not undertake the work to satisfy or to accommodate the return of worker.
In general…. Again, because it’s set out in the human rights code, it’s certainly something that I support, but I think it’s really important for employers to fully understand what the cost implications may be and what their duty is. This determination, this term “undue hardship,” is really important. Here’s an example I can think of. Let’s assume a small company operates in a facility that has multiple floors, but it’s not owned by the business. The business is a leasehold business. They actually lease. A worker is injured to the point that they need to have an elevator or a lift installed in order to accommodate that employee.
I think most employers would want to do everything in their power to try and accommodate that employee, but there could be significant capital costs around something like that, so who makes that determination? It sounds now like it’ll be the WorkSafe board that will make the determination of what they feel would be undue hardship for that company. I’m assuming that over the last 25 or 30 years there must be some case law and human rights challenges that have established or set out what undue hardship would be.
Has any work been done to really better understand what that undue hardship is so that there’s any type of guidance that can be provided to WorkSafeBC, because they’re going to likely have pretty significant challenges going forward? An employee would be probably more than anxious to want to get back to their other employer, but at some point, in time the cost of accommodating the return of work of that employee may be considerable and what the employer might determine to be undue hardship may not necessarily align with the belief of WorkSafeBC.
We can have this this challenge where there’s a different interpretation of undue hardship. I think that any work that can be done now, maybe even in this debate, to better understand and clarify what the minister feels would satisfy the definition of undue hardship, I think, is very important, because WorkSafeBC is likely going to be the one that is going to have to try and assess and make that determination.
In all likelihood, employers are going to challenge that. It may go to WCAT and to different tribunals, so I certainly want to spend a little bit of time better understanding what that definition is and if there are any examples, even. I’m assuming that during the course of drafting this legislation, giving consideration, there must have been considerable discussion around what that means.
Again, it would be interpreted very differently from WorkSafeBC than it would from an employer, an employer that may only have five years remaining on their lease and may not want to undertake that big, significant capital expense if they’re going to be moving to another location in two or three years.
You know, those are things that I think are really important because they’ll have real-world implications both on employers and employees and also on WorkSafeBC, that may be put in a very untenable position of making a decision that could put significant financial hardship on the backs of businesses that otherwise would do everything they could to accommodate that return to work of an injured employee.
Hon. H. Bains: It’s not that we are reinventing the wheel here. There are case laws under the human rights commission. It’s been well established for a long time what undue hardship is. I think the difficulty and frustration was that there was a human rights code and the human right commission would be applying that code and have a duty to accommodate up until the undue hardship. So there are case laws there.
The frustration for the board was that, yes, it is a human rights code requirement, but they could not implement it on their own. So they needed the language here, which is guided by the human rights commission’s case laws and jurisprudence. I’m hoping that that’s what they will be guided by.
The board certainly will be sitting down and developing their policies through consultation with the stakeholders and coming up with the way that is going to work for everybody, again being clear that there is a duty to accommodate now enshrined in the act. It’s similar to the human rights commission requirement, and now the board will be able to establish and implement that during the time the worker is trying to get back to work and the employer has a responsibility to accommodate.
The examples that the member used, having to build an elevator — I’m not going to be there, but obviously that type of argument certainly will be made, and I think, depending on the situation, that probably will be considered undue hardship.
I don’t know what the circumstances are going to be going forward. So I think it’s leave it to the board. They’re capable of developing those types of policies through consultation with the stakeholders.
Again, I just want to draw the attention back to the Human Rights Commission, the case law and the jurisprudence that they have already been working on. I think it’s probably easier for WorkSafe to just follow the lead.
G. Kyllo: Is the minister able to define or clearly articulate what “undue hardship” is? Is it their intention to include that definition in any way, shape or form within the legislation that is before us?
Hon. H. Bains: The answer is no.
G. Kyllo: Okay. Words are important. We spend a lot of time debating different pieces of legislation, clause by clause. The use of terminology that has real-world implications is incredibly important. I certainly don’t feel comfortable in just leaving it up to WorkSafeBC to make their own interpretation of what “undue hardship” is. This is the minister’s legislation. The minister has drafted the legislation. It is here only under his signature. If the minister can’t clearly articulate what “undue hardship” is, how can WorkSafeBC clearly articulate and determine what that might be?
Now the minister references that there is likely case law. I would likely agree that this has probably been challenged, and there may be court precedents that will establish what “undue hardship” is. When we’re making changes…. This is not something that employers have been asking for, and I don’t even know that employees have been asking for this particular change. I certainly haven’t heard anything from the Human Rights Commission, giving direction and asking government, to say: “Hey, can you align your WorkSafe policies to better align with the human rights code?” I haven’t seen that.
The minister has had the opportunity, I believe, to review different jurisdictions across Canada, to have a look at their legislation. Maybe I’ll pose the question this way. Is the minister aware if any other legislation across Canada, for WorkSafe legislation, includes a clear definition of what “undue hardship” is?
Hon. H. Bains: We’re not aware, I’m advised, of any other jurisdiction in Canada that has a definition of “undue hardship” enshrined in their legislation.
G. Kyllo: With this particular section, if there’s a duty to accommodate in the efforts of an employer to accommodate the return to work of an injured worker — which I fully support, by the way — it may take time, depending, I guess, on the level of work required in order to make those accommodations. I’m just wondering: is that an additional consideration of the board?
The board may make a determination that, yes, there is a duty to accommodate, and we should be able to undertake those renovations or whatever those issues might be, to allow that worker to get back to the workplace in a set amount of time. Who determines what’s a reasonable amount of time? Is that something that’s within the board?
The reason I’m asking that question: if the timeline that the WorkSafeBC board determines to be reasonable is not met, what opportunities does WorkSafeBC have in order to enforce that? Can they put enforcement orders or demands against the employer? Can they start applying administrative penalties?
I’m just trying to understand the whole mechanics of it, because in all likelihood there will be instances where an injured worker wants to return to work. The employer may be hesitant because of the capital costs that may be associated with some of those improvements necessary to accommodate. WorkSafeBC may make a ruling. “Well, you have to.”
I just want to better understand what abilities WorkSafeBC has to demand of the employer to make those workplace changes or modifications? Can WorkSafeBC demand set timelines? The other part of that would be: what administrative penalties could WorkSafeBC apply? Again, it’s just the mechanics of it. I assume that most great employers, should they have the sad tragedy of a worker getting severely injured in the workplace, will want to do everything they can to try to accommodate the return of that worker. It’s the right thing to do, and it’s also improving employee morale.
When that happens and there are cost magnitudes — again, there are different determinations on what undue hardship could be — a corporation that has lots of profits may be able to easily and willingly undertake those. A company that’s struggling just to make payroll may not have that same ability. The hardship that they may suffer may be very different than a very profitable company.
When we have a look at this legislation, it’s always important to look at the mechanics. When an issue occurs, what information is being provided to WorkSafeBC? What are the challenges that they’re going to be confronted with? What levers do they have in order to encourage that employer to make those changes? What tools do they have to administer orders — or, potentially, even shut the facility down — if it’s not done in a certain amount of time? I’m just trying to get a bit of an understanding of what the mechanics are.
It’s easy for us to go through the information here in the Legislature, and on Thursday, it’ll get royal assent. But then the real work will happen. The real challenges will be confronted by employees, employers and WorkSafeBC in trying to interpret what this means. I think it’s always important to have a look at the mechanics of how this might actually roll out in the instance where an employer is unwilling or feels that they’re under significant financial hardship and has to make the decision, saying: “No, we can’t afford the capital costs of accommodating the return of that worker.” Then how does that play out with WorkSafeBC?
Hon. H. Bains: There will be…. I mean, the ministers don’t micromanage the departments; that’s why we have capable people running those departments. We create legislation based on the demand of stakeholders and then pass it on to those capable people that we rely on. In this particular case, WorkSafeBC has been doing this work for a long time — since 1917. I think my memory goes back that far. So I think this is something that they will be developing a policy on.
There are some guidelines, like 154.3(7). It’s a new section which provides that where a worker and employer disagree, then the board must determine “(a) whether a worker is fit to carry out suitable work or fit to carry out the essential duties of the pre-injury work, and (b) whether suitable work is available.” So they will be making a determination if the worker is fit to return to work to their pre-injury job or whether there is suitable work available. That will be the employer’s responsibility.
Then it goes on to say: “Ensure that the return-to-work process is not frustrated when a worker and employer disagree on whether the worker is fit to return to work or if suitable work is available. Whether an employer and worker have reached an impasse, WorkSafeBC must determine the fitness of the worker to carry out suitable work or carry out the essential duty of the pre-injury work or whether suitable work is available.”
Patterson recommended that British Columbia adopt the legislation of Ontario and Manitoba. Both of these provinces provide that their workers compensation boards are to resolve these types of disputes. So I think that’s what we are leaving. There are certain requirements, a duty to accommodate, try to get the worker back to their pre-injury job. That is desirable all the time. But if that job is not available or the worker is not capable of doing that work, what other alternative job is available based on the fitness of the worker?
Those determinations will be made. If there’s an impact, if there’s a disagreement between the worker and the employer, then WorkSafeBC, ultimately, will be making some decisions whether the worker is not fit to work or whether the employer has not created suitable work. And then there are all kinds of, I think, actions that can trigger penalties to the employer, including, I think, the workers to be paid compensation as far as the wage loss is concerned. I think there are certain remedies, but this is the process, and they will be developing that policy, I’m sure.
G. Kyllo: I appreciate the response from the minister. I don’t know that it necessarily provides much confidence, because it looks like everything is going to be left up to WorkSafeBC, which, I guess, the minister appears to be okay with.
I’ve got a few other questions on this section. It’s still concerning to me that the definition of undue hardship is not articulated in any fashion. As I’ve stated before, the determination of undue hardship would be different for different companies based on size and profitability, even location.
Now, the minister did reference the fact that there has been a carve-out where employers that have less than 20 employees — that this particular section will not apply to them. I’m just wondering: is that also consistent with other jurisdictions across Canada?
What, I guess, thinking or thoughts went around determining that 20 was the number? Is that the average that other jurisdictions across Canada have utilized? Was there some other formulation or thought process in determining that 20 employees was the number? Then, also, are those 20 employees employed at any given time or 20 employees in the aggregate over the course of a year?
I want to get a bit better understanding, with the reference to that 20, if there are any other nuances to that or any other further definition, or is it just as it is stated and then going to be up to interpretation by the board?
Hon. H. Bains: Patterson recommended in her report that an employer with fewer than 20 employees be exempted from the duty to accommodate or duty to re-employ, which follows the exemption in Ontario and similar to the exemption in Manitoba for an employer with less than 25 employees. Manitoba has, the way I read it, an employer with 25 employees or less, and Ontario is with 20 employees or less.
The exemption for work of a smaller employer recognized that the mandatory re-employment of injured workers is more likely to entail an undue hardship for a smaller employer, as the member was canvassing earlier. It is also noted that the duty-to-cooperate provisions apply to all employers, regardless of size.
G. Kyllo: The minister referenced that Ontario has 20, Manitoba 25. Can the minister share what the employment basis is for other jurisdictions across Canada, or are those the only two that actually have a set number?
Hon. H. Bains: Those are the two that Patterson reported on. She recommended 20 as a reasonable number.
We can check, but all other provinces, if you look at the cross-jurisdiction, have a duty to accommodate. We can check whether there’s any limit on the size of the employer in other jurisdictions, but we don’t have that right now.
G. Kyllo: Okay. Could it be that other jurisdictions that are not yet referenced or the minister doesn’t have information on could be a higher number? Could be a lower number? We just don’t know. There was no effort to really understand what the baseline is for the exemptions with other provinces across Canada.
Hon. H. Bains: Well, as I said, you’ve got to learn to depend on capable staff, and that’s why I would rely on WCB staff to implement all the changes we are recommending.
Right here, the member asked, and they were able to pull some numbers. Member, Quebec has 20; P.E.I., 20; Nova Scotia, 20; as I mentioned, Manitoba, 25; and Ontario, 20. Those are the quick numbers that we were able to pull.
G. Kyllo: Great. Thank you. I appreciate that.
When they determine employers with 20 or less, so an employer that has 20 employees, is it 20 or less, or is it less than 20?
The other question would be: how will this impact seasonal businesses? We’ve got lots of seasonal business across B.C. Maybe 20 or 25 employees are seasonal but not full-time, year-round. Is there a determination or an expectation that this would only apply to companies that are based on 20 or more year-round, full-time employees?
I even just think about, maybe, small vineyards or small farming opportunities that could have 30 full-time employees for a very short amount of time, for the harvest season. I’m just wondering if the minister can clarify if the determination of these 20 employees is based on full-time, year-round, just to make sure that it’s not unnecessarily, maybe, impacting the agricultural sector or the tourism sector.
Hon. H. Bains: The language in the act, 154.3(1), “Duty to maintain employment”:
“(1) Except as provided in subsection (2), this section applies in relation to an employer and a worker of the employer if the worker has been employed by the employer, on a full- or part-time basis, for a continuous period of at least 12 months before the date the worker was injured.
“(2) This section does not apply in relation to the following: (a) a person who is a worker only because the person is deemed under the Act to be a worker; (b) an employer who regularly employs fewer than 20 workers; (c) a class of employers or workers or an industry or class of industries prescribed by the Lieutenant Governor in Council.”
I think the language is quite clear here.
To add on, I neglected to mention that under the occupational health and safety requirement, the employer who has 20 or more workers is required to have a health and safety committee. Fewer than 20, they’re not. The number 20 is the norm that is being used.
G. Kyllo: I appreciate that clarification from the minister.
In the instance where WorkSafeBC provides a ruling with respect to the return-to-work legislation and if the determination is that the employer would be under undue hardship to make those provisions in order to accommodate the return of that injured worker, is the worker still entitled to then still go to the Human Rights Commission if they feel that the decision of WorkSafeBC was unjust, or is it one or the other? Or could we see with rulings being undertaken by WorkSafeBC, only then to find out that it’s then being challenged by the Human Rights Commission? Could that cause any grief for WorkSafeBC, if that was the case?
Hon. H. Bains: I don’t think we have the ability to stop workers going to the Human Rights Commission, but this is what the advice is with regards to the possibility of a worker filing complaints simultaneously, sometimes, with both WorkSafeBC and the Human Rights Tribunal. Section 25 of the human rights code allows that where the tribunal “determines that another proceeding is capable of dealing with the substance of the complaint,” the tribunal may defer “consideration of the complaint until the outcome of the other proceeding.”
Similarly, section 27 of the human rights code allows that where the substance of the complaint has already been dealt with in another proceeding, it may be dismissed by the Human Rights Tribunal.
Clauses 4 and 5 approved.
On clause 6.
G. Kyllo: Hon. Chair, I believe you had referenced that there may be a break that’s imminent. This might be a perfect opportunity, seeing we’re right close to 6.30. I was wondering if you might give consideration to a brief recess so we can grab a snack.
The Chair: This committee is in recess for 15 minutes.
The committee recessed from 6:28 p.m. to 7:02 p.m.
[R. Leonard in the chair.]
G. Kyllo: Can the minister just confirm that clause 6 is consistent with recommendation 29 of the Patterson report?
Hon. H. Bains: The concept is the same, but we did not take all of the recommendations that are listed under 29. She recommended certain things, the interest rate on all decisions. We are a bit narrow. Also, she had a different way of calculating interest. We’re doing it differently.
G. Kyllo: Under what circumstances would payments be made under the “effective date”?
Hon. H. Bains: Subsection (1) clarifies…. The reference to “effective date” in this section means the date on which a worker first became entitled to compensation, as determined by a review officer or the Workers Compensation Appeal Tribunal. That’s one thing.
Subsection (2) establishes the following criteria on which interest must be paid. The compensation must be awarded in a decision by a WorkSafeBC review officer or by the Workers Compensation Appeal Tribunal, and the decision must determine that the compensation is owing for 180 or more days since the effective date determined by the review officer or the Workers Compensation Appeal Tribunal.
G. Kyllo: Can the minister share with this House what the interest rate would be if it was calculated based on today’s marketplace, with today’s CPI? There’s a reference under “Section 334 is amended,” and it goes into quite a lengthy dissertation on how the interest rate would actually be calculated.
Maybe, just for clarification, if the minister is able to provide what that interest rate would be today.
Hon. H. Bains: Subsection (3) requires the interest payable to be calculated in accordance with WorkSafeBC policies and to begin on the effective date, that is, a review officer or a workers compensation appeal tribunal decision determined it to be owing. The previous WorkSafeBC policies have paid simple interest at a rate equal to the prime lending rate of a banker to the government.
G. Kyllo: Just the prime rate? The Patterson Report recommends a rate that would be more commensurate with the board’s return on investment. There must’ve been some consideration on going with the straight interest rate and not the recommendation of the Patterson Report. I just wonder if the minister could share with us what the thought process was around arriving at just the prime lending rate rather than the rate of return that WorkSafeBC may be receiving on their investments.
Hon. H. Bains: We went with what we are proposing here because — don’t you see? — we already have a policy on how the interest is paid in a variety of different situations. We want to be consistent with it. They already have a policy. That’s why we thought that that would be the right thing to do. Also, what Patterson was recommending is the market return, and the market return could be negative sometimes. I think this is reasonable. It is also manageable and predictable.
G. Kyllo: In the cases where interest payments are identified to be payable for a claim, will those costs be borne and attached to the actual total claims costs and attached back to the employer? Or will those costs be borne otherwise within workers compensation?
Hon. H. Bains: These are policy matters, but it’s a good question. We’ll try to find an answer on how situations like that are handled. Because what we are looking at right now — I’m just personally speaking here — is that it’s not the fault of the employer.
For example, if it’s determined that you’re entitled to $100, but the review panel decided you were entitled to $200, but it took six months to make that decision, now the additional $100 is what would trigger this, is what would require the board to pay interest. It is their decision. It is not the employers’ fault per se. I don’t know how the policy in a situation like this will apply, but we’re trying to find out how they actually determine the experience rating of individual employers based on how the claim costs are calculated.
G. Kyllo: This question wasn’t contemplated? There was no discussion with WorkSafeBC with respect to where the cost burden would lie, associated with the interest, associated with delays on payments on claims?
Industry associations raised concerns that this could have a pretty significant financial hit. Certainly I’ve asked a series of questions, trying to understand what the magnitude is of these changes, on a number of different clauses. The minister has consistently just referred back to the fact that he’s relying on this seven cents per $100 of payroll as the only number that he relied upon in determining that the changes set out in Bill 41 were affordable.
Yet here again, with respect to costs that will be incurred by WorkSafeBC, even the consideration of whether those costs will be borne and be attributable back to the actual claim of the injured worker or whether those may be otherwise covered off by the worker accident fund surplus, it’s surprising that there has not been that level of inquiry with WorkSafeBC. I just hope that the minister is able to provide clarification on that tomorrow when we’re back debating further on this bill.
It’s really important. There are a number of industry associations that have requested that information as recently as November 1. I know the Retail Council of Canada put out a news release highlighting their concerns with government being able to provide information on the costs relative to this particular section. This particular clause has changed under Bill 41. I’m certainly hoping that, at least by tomorrow, the minister will have an opportunity to reach out to WorkSafeBC and provide some of those fulsome answers on the actual magnitude of all of these cost changes that we’ve been talking about here now for two days.
I know that WorkSafeBC will have those numbers at their fingertips. For them, in order to calculate and provide the seven-cent number that the minister continues to rely upon, WorkSafeBC would not be able to provide that number without first determining the full magnitude of the cost impacts of all these different sections. Again, I respectfully request that the minister can provide that information for us tomorrow.
Hon. H. Bains: We certainly will try.
Clause 6 approved.
On clause 7.
G. Kyllo: What changes have been undertaken in the act that would require this consequential amendment?
Hon. H. Bains: The addition of clause 7(a) will permit an employer to request a review of an administrative penalty if the employer disagrees with the penalty. Specifically, this means that if the employer disagrees with the administrative penalty that is imposed for failing to comply with the new return-to-work duties, the employer may request a review.
The addition of section 7(c) will permit the employer to request a review of a WorkSafeBC decision related to the new return-to-work duties if the employer disagrees with the decision. This includes, for example, decisions that the employer has failed to comply with, duty to cooperate in section 154(2) or the duty to maintain employment in section 154(3). It’s just a matter of fairness.
G. Kyllo: Assuming that this bill comes into enactment on Thursday, would any of these proposed changes be able to be determined retroactively — so any disputes that may arise within WorkSafeBC currently? Or is this intended to only apply to new decisions and, I guess, other challenges that may be brought forward from Thursday onward?
I want to just get clarification if there’s any intention of any of these proposed changes having the ability to be reviewed retroactively.
Hon. H. Bains: The section will not come into effect on Thursday on royal assent. The implementation and the effective date…. I think the section talked about that it will be implemented through regulations. It will take some time, but it won’t be retroactive.
Clause 7 approved.
On clause 8.
G. Kyllo: Why is this particular housekeeping amendment being made?
Hon. H. Bains: The existing section, 302(1), requires the chair of the Workers Compensation Appeal Tribunal to establish a list of health professionals who may, on the request of the appeal tribunal, be retained to provide independent assistance or advice during an appeal. This bill adds a new section, 302(1.2) to the act, enabling the employer, worker or a dependant of a deceased worker to also request that a health professional be retained to provide independent assistance or advice during an appeal.
This is a consequential amendment resulting from a new section, 302(1.2), as the ability to request that an independent health professional be retained is no longer the exclusive domain of the appeal tribunal but now also includes employers, workers or the dependant of the deceased worker. That is the difference.
Clause 8 approved.
On clause 9.
G. Kyllo: Is the minister able to discuss if this clause came from the recommendation No. 3 from the Petrie report and how that differs from recommendations 72 and 73 of the report of the Petrie report? Again, this is one of those clauses that appears in both of the reports.
Can the minister just share with this House if there was extra weight provided to the recommendations that appeared in both reports and then how the recommendations of those two different reports differ and culminated in the clause 9 that’s actually before us?
Hon. H. Bains: Petrie also recommended in his report, but that was not the way he…. His recommendation wasn’t a requirement of legislative changes. The board could make those changes through policies and procedures, but Patterson did recommend this.
I think, again, it is about fairness and improving the confidence of both employers and the workers. You have heard many stories in many MLAs’ offices where workers…. A physician says one thing, and the WCB’s physician says quite the opposite, so there’s a medical dispute between the two professionals. Many times, workers have argued that the WCB doctor has not physically examined them. They are just going by the reports before them prepared by the case managers.
I think this is something that will provide some fairness deal with the fairness issue by allowing the worker to ask for an independent medical examination so that now it cannot be seen to be biased one way or the other — the same thing, the same right as is available to the employer.
WCAT, previously, already had that right when they believed that there was an issue of medical dispute. They could order an independent medical examination if they believed that would assist in the case before them.
I think now it is about the employer and the worker having the same right, asking for an independent medical examination.
G. Kyllo: Can the minister share with us the instance or the frequency of the request of WCAT to seek independent medical evidence? This change will now provide the opportunity both for workers and also employers to make the request. I’m wondering. To get a bit of context in how frequently this provision was utilized by WCAT, does the minister have any statistics or information on how frequently WCAT found it necessary to reach out for this independent medical advice?
Hon. H. Bains: I’m advised that they have a five-year average of 54 a year where the WCAT have requested IME examinations.
G. Kyllo: In instances where, in the average of 54 times a year, that independent medical advice has been sought, is the board obligated to rely upon that entirely in their determination, or is it again just additional information that they would review as part of their consideration before making a decision?
Hon. H. Bains: The Workers Compensation Appeal Tribunal, not the board, deals with the cases, which is the highest level of the appeal system within the system, and they’re independent of the board.
Again, it’s just like any other tribunal case. They take a variety of evidence in support of their decision. They consider, from both sides, presentations, and this is one of them. There will be a variety of other factors that may be before them.
This will at least help the employer or the worker — a satisfaction that there is an independent report, rather than them relying on a WCB report. Many times, they will feel that that maybe is biased, so this is about fairness.
G. Kyllo: Is the minister able to provide what the average cost of this independent medical advice is? The minister has indicated, on average, it’s about 54 times a year that the advice of the independent medical expert is called in to provide evidence. I’m assuming there are probably a wide range of costs. But even if the minister might be able to share with us what the average cost is of employing the independent medical expert.
Hon. H. Bains: The information we received is that the fee per IHP — I think it stands for independent health professional — is about $2,133.61. That’s what I think the cost is that they are incurring.
G. Kyllo: Thank you. The provisions will now provide the opportunity for, also, the employer and the employee. Is it one or the other? If an employee requests the advice of an independent medical professional, an IMP, and the employer does not, is that okay? Or could they both be asking?
What does the minister anticipate happening if WCAT requests an independent medical professional to provide an opinion, and you have the employer and the employee also requesting? Does that mean that we’re going to have a tripling, in effect, of requests? Or is there a hierarchy on who determines the selection of who is going to be that IMP?
Hon. H. Bains: I think if we look at the language, health professional assistant in specific cases, (1.1) talks about:
“Subject to subsection (8), the presiding member must retain a health professional to provide independent assistance or advice in an appeal if all of the following apply: (a) the appeal tribunal receives the request under subsection (1.2) from an employer, a worker or a dependant of a deceased worker; (b) the medical condition of the worker is at issue in the appeal; (c) the appeal tribunal determines that the independent assistance or advice would assist in reaching a decision on the appeal.”
Then (1.2) talks about: “If an employer, a worker or a dependant of a deceased worker is a party to an appeal, the employer, worker or dependant may request that the appeal tribunal retain a health professional to provide independent assistance or advice in the appeal.” Then there is: “must be made in writing.”
It is an independent body that will be retained. It’s not one asking for one, another asking for someone else. There will be an independent body. It’ll be the same person. If the worker, I imagine, asked for an independent medical examination, I think that one of the health professionals retained on that list will be assigned. Then whatever report comes will be the report before the tribunal.
G. Kyllo: Okay. Thank you for that clarity. There would only be, still, just one independent medical professional typically called in to actually do an assessment. I just want to clarify…. The minister is nodding his head. Okay. Thank you very much.
At what point in the claims process would a worker or an employee have the opportunity? Does it have to get right to the very final days of the process before they’d have that opportunity to challenge and to request the advice of an independent medical professional, or could that request come early on in the claims process?
Hon. H. Bains: I think the first thing to understand is that the appeal has to be at the WCAT level. Once you appeal your decision to WCAT, you can, at the same time, ask for an independent medical examination. I think that request will be considered.
G. Kyllo: Great. Thank you very much.
Now, the minister referenced the average number of times that independent medical professionals are engaged is 54 right now. Has any work been done or any estimations on the increased frequency that we’ll actually see with this new legislation? Is there an anticipation that every employee that’s concerned about the outcome is going to automatically and consistently always ask for it? What kind of an impact might that have either on the availability of independent medical professionals in order to conduct the work or, additionally, the actual cost associated with it?
Hon. H. Bains: I think the short answer to the member is that the chances of that 54 number going up…. There is a chance. Only WCAT decides when to ask for an independent medical review. Now it allows the worker and the employer to ask for an independent medical examination. It also has to follow and comply with those two or three criteria that I mentioned.
It will go up, yes, but there are some checks and balances here.
G. Kyllo: I appreciate that. The question was: has there been any work done to kind of estimate what the impact is going to be? Is it going to go up by 20 percent? Is it going to double? Is it going to triple? Is it going to quadruple?
Maybe another way of asking the question is…. The minister referenced that, on average, it’s only been 54 times a year that independent medical professionals are engaged to actually undertake a review. How does that compare to the total number of reviews that are actually undertaken annually by WCAT?
Hon. H. Bains: I think this comes from their annual report, doesn’t it? No? Okay. Somewhere we received it from WCAT.
Fifty-four represents 2 percent of the medical disputes that are before WCAT.
G. Kyllo: Well, if 54 represents 2 percent, that would mean that the potential…. If all of the appeals were going to request independent medical advice, it would be, potentially, as high as a 5,000 percent increase, a 50-fold increase.
Can the minister just clarify? What’s the total number of appeals that are actually reviewed annually? Is it a couple thousand, 2,600, 3,000?
Hon. H. Bains: I’m advised that the WCAT can conduct about 3,000 hearings a year and that about 2,600 of them are for compensation. Then there are some of those that could be medical disputes. As we said, on average, about 54 a year is what WCAT asks for independent review of. Those are the kind of numbers. I don’t think…. If it’s 3,000, some of them have nothing to do with the medical. Others have different issues, also, and may not have anything to do with medical.
I think that any time there is a medical dispute and those criteria are met, as I read earlier, is when an employer or a worker can ask for an independent medical examination.
G. Kyllo: I appreciate the additional information from the minister. Is the minister able to share with us how many of those approximate 3,000 appeals a year relate to those with concerns around the medical piece and that might avail themselves of this? The minister, certainly, shared that there has only been 54 a year, which only represents about 2 percent. I’m supportive of this clause. I think it is important for both employers and employees to have that opportunity to maybe reach out and look for that independent medical professional advice with respect to a claim that has been appealed.
Having said that, one important factor is to fully understand what the cost magnitude may be. The other piece would be to have a look at what the availability of service is. I don’t think that there’s anyone here in this room, or even at WorkSafeBC, who would say that injured workers are really happy with the current time frames for having their claims adjudicated or for going through the appeal process.
My concern is that if the government hasn’t given thoughtful consideration to the potential increase in the reliance on these independent medical professionals, and if there hasn’t been a huge staffing up or availability of contractors to provide that, and we see a three- or four- or fivefold increase, what that might do to the actual length it’s going to take for these appeals to actually work their way through and to provide a final determination of a claim for an injured worker. I think these are valid and very important questions.
A couple of pieces. The minister mentioned that of the 3,000 claims, there are only a lesser number that might avail themselves of the use of an independent medical professional. The first question is: how many are estimated that could potentially avail? I appreciate that not all will. We know that now it’s only 2 percent, but I’m assuming — and the minister has agreed — that it likely is going to increase. We don’t know the magnitude, but if we could have an idea or a bit of a sense from the ministry on what the potential total number could be.
With that, also, if the minister might be able to provide: how many independent medical professionals does government avail themselves of? I’m assuming these are not government employees; these are probably independent professionals. They might have to have some level of training or certification.
If the minister might also be able to provide: how many people are currently on that list? If there’s only use and reliance on them 54 times a year, maybe it doesn’t have to be a very large list. I’m just wondering, also, what efforts might be undertaken to ensure that that list is large enough to potentially accommodate what we will certainly see as increased reliance on these professionals?
Hon. H. Bains: At my regular meetings with the WCAT chair, we brought this to their attention, and they are aware that this could come. They’ve assured me that they will be starting to look at building that list. I think the work will be done by the WCAT chair. It’s hard to predict how many medical disputes will go before WCAT and how many employers or their workers will actually ask for an independent medical examination. You can only go by what you have, and we gave you some numbers.
Again, the criteria must be met before they can ask for an IME. I think it’s something that WCAT will be managing. They are independent of the WCB, and they run their own affairs.
G. Kyllo: Well, let’s start, then, with what we do know. We do know that, on average, there have been 3,000 appeals adjudicated annually. We know that 54 times annually, WCAT avail themselves of the use of an independent medical professional, which only represents 2 percent of the potential total number of appeals that are heard or that could avail themselves of it.
I’m sure that the minister must be familiar with — or, I expect, would have asked — the question: what’s the potential impact of this legislative change on the use of independent medical professionals? Only 2 percent are availing themselves of this now. I appreciate that there is a set criterion that has to be met.
I certainly would assume and hope that WCAT and/or the minister would have been asking those questions, to fully determine what the potential impact could be, not just from a cost perspective but also as far as an availability of manpower and resources perspective if we see a significant increase — a two-, three- or fourfold; it could even be a 50-fold increase — in the number of claims. I appreciate that that’s probably on the outer limits, but even a five- or tenfold increase could have a significant impact on the availability of resources.
If those resources are not available in a timely fashion, we will see the amount of time it takes to adjudicate and have a final determination on these claims continue to increase. That’s a concern. It should be a concern for the minister. It definitely would be a concern for an injured worker that’s trying to find finality with respect to an appeal.
Again, I’m hoping the minister can provide a bit more detail on what the potential increase in claims could be. It’s not a finite number. I appreciate that he will not be able to say it’s going to go from 54 to 282, but there must be a sense…. Even WCAT would probably also be able to share — and I thought, certainly would have shared — that this is something that employers have been asking for, this legislative change. It’s something employees have been asking for. There must be a demand. Otherwise, we wouldn’t see this piece of legislation, and this particular clause, before us.
It’s based on an increased demand and a desire to use the service. I would certainly hope that the minister could provide a bit more information, as far as what the potential impacts may or may not be.
[F. Donnelly in the chair.]
The Chair: Minister.
Hon. H. Bains: Thank you, hon. Chair, and welcome to the chair.
When I met with the WCAT chair, just a few weeks ago, she knew that these changes were coming. She said that we brought it to her attention that this could be coming. “Are you prepared?” She said that yes, she will be prepared for the bill to be passed. She did not show any concern that she would not be able to expand the list if she had to. Right now, when they need one, they could get one. I wasn’t advised that they had to wait a long period of time in order to get the IME.
I think that issue is fairly under control. Again, you talked about the expansion of these claims — around 54, on the average. Even if it’s a 100 percent increase — you go to 108 — the cost per IME, as it was given, was a little over $2,000. The cost would be, to them, another $100,000 plus, so it’s manageable. I was advised that they are in a good position to manage when the provisions of the act come into effect.
The Chair: Member.
G. Kyllo: Thank you, hon. Chair, and welcome to the seat.
Okay. I appreciate that the minister has comfort and confidence. I guess maybe we can go back to the question around timelines. Has WCAT shared…? Where there is the reliance on an independent medical professional, does it have any impact at all on the timeline for the determination and final conclusion of an appeal?
Many appeals go through without the use of an independent medical professional. The question would be that when there is a reliance, and WCAT determined that there is a need for an independent medical professional, currently, does that add any length of time to the amount of time for a claim to be processed?
Hon. H. Bains: I haven’t been advised. I talked to the ministry. They haven’t been advised that just because the tribunal asked for an IME in a certain case, there’s a delay caused by that request. I think when there is an appeal filed, it gets to the WCAT, and they see where the disputes are. If it’s medically related, if there’s a dispute on the medical, then they determine if an independent medical examination will help in determination of the claim.
I would argue that it would probably speed up the system as well, because now there’s a clarity before the chair, rather than having to go through, back and forth, who said what on one side or the other. I think there is no concern there.
G. Kyllo: Okay, well, thank you for that. I appreciate that. That does provide some comfort.
As far as what the process is for someone to be designated as an IME…. I’ve heard, also, the IMP, the independent medical expert or independent medical professional. Can that be attained by a medical doctor? Is there a separate registry or training? I’m just trying to get a bit of a sense on who could be an IME or an IMP. Is there a process? How many individuals currently reside on that list that the WCAT currently rely upon from which to determine the onboarding of an IMP?
Hon. H. Bains: So WCAT makes those decisions based on the needs because the medical disputes are for a variety of reasons. It could be something to do with your bones. It could be something to do with your muscles. It could be something to do with your other internal organs. Wherever the specialty is needed, I think that’s what the WCAT determines: what type of specialty they need in order to guide them, inform them, about the condition of that particular claimant. That’s what they’ve been doing, and I’m sure that that’s what they will continue to do.
G. Kyllo: I appreciate that. I maybe misinterpreted. I thought that the reference to an IMP or an IME was a separate designation that people had to apply for. The minister is indicating now that typically, any medical professional could be an IMP or an IME, as was referenced. In any event, that satisfies me with respect to that, so thank you.
Clause 9 approved.
On clause 10.
G. Kyllo: The Bogyo report discusses a number of options for benefit increases. I’m just wondering. Can the minister discuss why he chose to go with option 5 as laid out in the Bogyo report?
Hon. H. Bains: The Bogyo made recommendations, and there were some other recommendations by Lisa Helps. So we gave that to Jeff Parr, to go around and talk to different stakeholders and come back with recommendations. He came back with a recommendation that amended the act to make the annual cost-of-living adjustment equal to full CPI going forward.
The amendment should also retain the current zero percent floor and 4 percent cap on cost-of-living adjustments, provide WorkSafeBC authority to apply a cost-of-living adjustment of up to 1 percentage point less than CPI if the funding level of WorkSafeBC is less than 100 percent, when full CPI is less than 5 percent, and also provide WorkSafeBC authority to provide periodic adjustment to restore any deferred CPI increases when the funding level of WorkSafeBC is above the target capital adequacy level.
I think that’s where we go with it. It is something that other stakeholders also asked for.
G. Kyllo: I know that earlier on, when we were still debating section (1), I asked a series of questions with respect to the actual costs associated with this particular clause. I know that that was earlier in the day and am just wondering if I could ask again if the minister has been provided any additional information with respect to what the cost magnitude of this particular change has been, if he’s had any information back from workers compensation.
I see a head shake, so that information is not yet available. I’m certainly hoping that it will be available for tomorrow when we carry on with our inquiry of this particular bill.
I just want to confirm. If the minister can confirm to this House — my understanding is that the 12-month average for CPI, as of last month, was 6.9 percent and that the current legislation would require an adjusted rate for injured workers at a rate of CPI minus 1 percent. Based on the 6.9 percent less 1 percent, the rate increase, if calculated today, would be 5.9 percent. If the minister can clarify that, I’d appreciate that.
Hon. H. Bains: Even currently there’s a cap of 4 percent.
G. Kyllo: Excellent. Thank you very much. I appreciate that. The current legislation has a cap of not to exceed 4 percent. Okay.
This legislative change will provide the opportunity for the board to make a decision if the rate of increase is above 4 percent. Okay. Thank you very much. I’ve just seen a head nod over here.
With respect to that, is the minister able to confirm what the estimated rate of increase will be for this current fiscal? I appreciate that WorkSafeBC has already come out and actually fixed the rates or capped the rates or indicated that rates will remain consistent for employers for this next 2023 calendar year. But I just wanted to get a bit of a sense of what the actual cost of the CPI change would be in this fiscal, should the board give consideration to increasing the rate on January 1.
Hon. H. Bains: The way the numbers are going, I can guess that it will be at least 4 percent, because that will be automatic if it’s higher than 4 percent. The board will make a decision if they have the capacity to go higher, but that will be their decision.
G. Kyllo: If we can just assume that the rate of CPI for this current fiscal is 6.9 percent, can the minister share with us what the maximum rate that the WorkSafeBC board could establish and attach to the increase?
Hon. H. Bains: Under this change or the changes that we are talking about here, and as for the member’s floating number 6.9 percent, under that scenario, the maximum they could go to is 6.9. But again, as we have canvassed earlier, board members have a fiduciary duty to make sure that the extant fund is there to look after the entire system. They would be making those decisions. Do they go all 6.9 percent? Or they would make some other adjustments.
My expectation is that they will be devising some policies around this, going forward. Hopefully, they were looking at factors like: is this just an anomaly this year? How is that going to be impacting the future increases? I think that all those considerations, I’m hoping, they will be taking into consideration. They’re responsible people. Their responsibility is to the system. I expect that they were making the right decisions.
G. Kyllo: I appreciate that. Just to be clear, the minister has now clarified that there’s current legislation. There’s a CPI minus 1 percent with a maximum cap of four. In this current fiscal, the maximum rate that could be applied would be 4 percent under the current legislation.
The new proposed legislation, assuming that 6.9 percent carries through, and I appreciate that things might change over the next month or two, the board would have the latitude to determine a rate of increase as high as 6.9 percent, or 2.9 percent higher than what is currently available under the current legislation. I just want to confirm that I’ve got that correct.
Hon. H. Bains: I think that, theoretically, that is correct.
G. Kyllo: Great. I appreciate that confirmation from the minister. Where we spent an inordinate amount of time at the outset on clause 1 was trying to understand the cost magnitude of some of the changes set out in Bill 41. Unfortunately, I wasn’t able to actually determine from the minister what the actual cost magnitude is. This is something that’s very concerning to employer groups from across the province — not that they’re necessarily all opposed to many of the changes, but I think it’s important, in contemplating any change, to understand the full cost magnitude of those changes.
In inquiring about the costs associated with Bill 41, the minister did share that the single largest cost contributor to the changes that are set out largely relate to this particular clause. I see that the minister’s nodding his head in agreement.
With that, the minister also set out that his sole reliance, as far as the cost impacts of Bill 41, was a number that was provided by WorkSafeBC, which indicated that the costs associated with the proposed changes and Bill 41 would potentially have the impact of seven cents per $100 of employer payroll. I asked a number of times, and the minister said that that’s a finite number. That is fixed. That’s what the number will be.
I have a hard time understanding that, because there’s a cost component that is yet to be determined by the board. The minister has just shared that the board will have the opportunity on January 1, assuming that CPI for this fiscal is 6.9 percent. They can choose to put it at 4, in which case it would be no different than the current legislation. But the board also could make a determination to be 4.2, 4.5, 5, 6 — up to 6.9.
At 6.9, that’s a full 2.9 percentage points higher than the current legislation. There’s a significant cost magnitude associated with that. So when the minister shares with us that the cost of these changes are only set at a fixed seven cents, that can’t be accurate. It could only be accurate if the board has already been given direction or determined what that increase would be on January 1.
I just want to give the minister an opportunity to confirm how he can be so confident in a fixed number when the most significant cost impact on this bill is a number that’s yet to be determined by the WorkSafeBC board. If so, has the minister given consideration to what that additional 2.9 percent, or 3 percent or more, could potentially be, as far as the actual cost associated with this particular bill?
Hon. H. Bains: We canvassed this, as the member said, for a long time. I gave the best answer that I could. When the board saw the package that we are focusing on and moving forward with, they gave us…. I never said it was a finite number. They gave us that the estimate cost of the package would be about seven cents per $100 payroll. Again, not knowing…. The member asked what happened if they go a full 6.9 percent. I don’t know what decision they will make. They know what their responsibility is to the system.
There is an accident fund. We were also, when we were canvassing about the impact on the premiums and when they were saying the estimate cost is seven cents, they said that there are funds in the accident fund, in the surplus, and a portion is available that they could be utilizing as far as the rate smoothing is concerned. I’m confident that there is money there. They have advised me that there is money to pay for these packages, and the impact on the premium for the employer will not be…. Their drastic increase will not be there. In fact, next year, they have already decided it will continue to be $1.55, as was the case this year.
I think they will be making a decision next year, knowing what they know. So what the impact will be on the premiums going forward, 2024 and beyond, they make those decisions every year. Again, if the return on the investment is as it was last year this year — or it could be next year, if things improve again — they could be in a better position.
We don’t know that right now. They will be making those decisions based on what they have in hand at that particular time. The information they have: the cost of claims, depending on the injury rates; the return on the investment; and these additional costs. They will be looking at all of that and making a decision going forward of what the premium should be for the employers.
As I said, there have been ups and down in the economy in the past, in 2008 and 2009 and last year and a couple of years ago. But they maintained these subsidized rates for the employers, because there were sufficient funds in the accident fund, which was over and above what they needed of 130 percent. I think they are in a very good position. I am confident in the information that I have and what they will be able to do: deliver the benefits to the workers to rebalance the system. That is long overdue to bring fairness and improve confidence for both the employer and the worker. That is, again, long overdue.
I think it’s a system that is based on fairness and rebalancing of the whole system. Again, also bringing our workers to the level of other jurisdictions, because we’ve been far lagging in all of these areas that are before us, compared to other jurisdictions, and we have canvassed that before.
I think our workers should not be treated as second to others. They should be treated the best that we can. We have the capacity now. The board has the capacity, both financially and otherwise. I think it is something that is long overdue, and we are delivering it.
G. Kyllo: Does the minister know what the current surplus is within the worker accident fund?
Hon. H. Bains: The information we have is that WorkSafeBC’s funding level has exceeded 130 percent, reaching 155 percent at the end of 2021. This represents an accumulated funded position of $7.8 billion, which consists of $4.3 billion of required reserves and $3.5 billion surplus to those required. Those are the numbers that are available to the end of 2021.
G. Kyllo: The minister indicated that that is to the end of 2021, so about ten months ago. Does the minister get regular updates, or does he have any current information on the status of that surplus?
Hon. H. Bains: No, I don’t get regular reports on their funding status. We get that, I think, at the end of the year, when they usually make that announcement. But they have advised us that the 2022 average base premium rate of 155 percent of employers’ assessable payroll is below the projected 171.76 percent average cost rate for the system.
The discount in the base premium rate is funded by surpluses, which have resulted primarily from excess investment returns in recent years. They go on to tell us that between 2018 and 2022, WorkSafeBC projects that $1.4 billion of surplus will have been used to discount rates for the employers. Obviously, if they continue to give a discount to the employers, even this year, it just tells me that their accident fund is in good shape.
G. Kyllo: Thank you very much. I appreciate that additional information from the minister.
We talked a little bit earlier about investment returns. I think in one of the earlier clauses, I gave reference to the fact that in estimates this past spring, the minister shared with me that investment returns for fiscal 2021 were stunning, I thought, with an 11.1 percent return rate, which was fantastic. We do know that rates have gone in the opposite direction this year.
Has the minister made any inquiry to determine what the potential impact on the surplus might be, on account of the reduced investment returns that are anticipated, I think, by pretty much all Crown corporations that have significant investments this fiscal?
Hon. H. Bains: The only thing that I was advised is that the board said that the return on the investment may be lower this year compared to last year, but they are performing well relative to the market as a whole. I’m confident that they are doing well.
G. Kyllo: Great. That’s certainly reassuring news. I think that most folks are probably seeing a 10 to 15 percent reduction in investment returns this year. So if the minister has confidence that they’re doing well, that’s definitely great news.
Back to the questions that I raised earlier about the cost magnitude. I certainly do hope that the minister is able to get some of that information directly from WorkSafeBC. The provisions of this bill have provided the latitude to WorkSafeBC to make pretty considerable decisions that have a significant cost impact on the worker accident fund. As we talked about, again, this year the current legislation, based on a 6.9 percent CPI rate, would be fixed at 4 percent. That’s the 4 percent cap that currently exists.
On January 1, the board will have the opportunity and the latitude to potentially go as high as 6.9 percent or whatever the number the 12-month average is for CPI. That percentage differential, from my understanding, is a very significant cost impact. So I’m certainly hoping that, tomorrow, the minister will be able to provide us some more detailed information on what that cost magnitude is. For any 1 percent increase, say, above CPI, what the actual fiscal hit will be to the organization is a really important number. I’m certainly hoping that by tomorrow we can get a little bit more detailed information around that particular cost.
Now, there are a number of changes that were set out, some of which, I understand, are to take effect on January 1, others that may not take effect until later. I know I might be going back a bit, but with respect to the use and reliance on the independent medical expert, does that come into force on January 1, or is that pushed out until the summer? It seems to me I recall hearing, maybe in your commentary and your second reading speech, that that particular change wasn’t going to come into effect on January 1 but later in the year. If I could just confirm that that is the case.
Hon. H. Bains: If the member could look at the bill, it’s all listed in here. This particular item is in section 16. This particular one comes into effect April 3, 2023.
G. Kyllo: Fantastic. So that was in reference to the independent medical advice. But the decision around the rate of CPI would come into force on January 1.
Hon. H. Bains: Correct.
G. Kyllo: I’ve probably belaboured this enough, but the current surplus that was reported as of December 31 last year at $3.5 billion…. Has the minister been provided any updates at all throughout this last year on some of the other previous legislative changes, the changes to the dual pension reform or any other changes that have been legislative on what the potential impact on costs has been to rates over the last year?
Some of the legislation had to do with the rates for COVID, for example. I’m just wondering if the minister has provided any advice over the last year on what the costs associated with some of those legislative changes have been over the last fiscal.
Hon. H. Bains: The member will know the changes he’s talking about are through Bill 23, and Bill 23 was in 2020. The number I’m giving you is at the end of 2021.
Those changes were in place, and I gave you that number despite those changes, what the final number was by the end of 2021.
Clause 10 approved.
On clause 11.
G. Kyllo: The fair practices commissioner is laid out in the legislative changes. Is that consistent with the recommendations of the Patterson report?
Hon. H. Bains: No, we did not go with the recommendation that she made. Her idea was identifying an issue, and the answer to deal with that issue was to have an independent fair practices commissioner — I think similar to an ombudsperson.
We didn’t go that route. We are dealing with that issue, but within the system. The fair practices commissioner will be within the WCB, but it will be independent, which means that they will be reporting to the board directly.
G. Kyllo: The activities within the current fair practice commission, their work, although it’s not currently independent…. Is there an anticipation of additional resources or manpower or even maybe space reallocation to provide, I guess, separation from the existing work environment they’re in?
I wonder if there might be any information the minister can provide with respect to the staffing of that office and/or a relocation.
Hon. H. Bains: We’re addressing an issue that was raised by a number of stakeholders and some of the reports here, and we are going to leave it to the board. Through the terms that are some of the requirements under the act, they will be the one who will be determining….
My expectation is that there are sufficient resources for them to do the work that they need to do — investigate individual complaints and make recommendations and, also, making annual reports, which would be, perhaps, if they were looking at systemic unfairness.
I think that that is probably the welcome approach by both employer and the workers.
G. Kyllo: Will any recommendations that come forward from the fair practices commissioner stay and only remain as recommendations? Or will those recommendations be binding and enforceable?
Hon. H. Bains: Those will be the recommendations to the board. Then, I’m sure, the board will be looking at and examining those recommendations, because I think it is in the best interest of the board, as well, to understand where the unfairness is. If it’s brought up by the commissioner, then I think my expectation will be that they will proceed with fixing the unfairness issue in the system, because it is to their best interest to make sure that the workers and the employer have confidence in the system.
The Chair: Minister, would you like to move the motion?
Hon. H. Bains: Okay. Mr. Chair, looking at the clock, I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 8:45 p.m.