Fourth Session, 42nd Parliament (2023)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, March 30, 2023
Afternoon Sitting
Issue No. 295
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
Bill 12 — Intimate Images Protection Act | |
Bill 14 — Miscellaneous Statutes (Modernization) Amendment Act, 2023 | |
Bill 15 — Vital Statistics Amendment Act, 2023 | |
Bill 16 — Supply Act (No. 1), 2023 | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
THURSDAY, MARCH 30, 2023
The House met at 1:02 p.m.
[Mr. Speaker in the chair.]
Routine Business
Tributes
LALLY BARING-GOULD
Hon. M. Dean: Earlier this month we lost a cherished resident of Metchosin. Lally Baring-Gould was born in Glasgow in Scotland in 1939. After completing her BA at UVic, she met her first husband, Smokey, and they had two sons, Ben and Nathan. In 1975, she married Bill and settled in Cordova Bay. In 1992, she moved to Metchosin.
Lally was very much dedicated to preserving the rural character of the district and other environmental issues. She had a very extensive network of family and friends. She touched very many people and always welcomed visitors to her house. There will be a celebration of life in April.
I would ask everybody to join me in sending our condolences to the family.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call Committee of the Whole for Bill 12, the Intimate Images Protection Act.
Then in Committee A, I call continued debate on the Committee of Supply for the Ministry of Forests.
In committee room C, I call continued debate in the Committee of Supply for the Ministry of Environment and Climate Change Strategy.
Committee of the Whole House
BILL 12 — INTIMATE IMAGES
PROTECTION
ACT
(continued)
The House in Committee of the Whole (Section B) on Bill 12; J. Tegart in the chair.
The committee met at 1:05 p.m.
On clause 1 (continued).
The Chair: We’ll call the committee to order.
M. de Jong: Just before we pick up again with the last remaining…. I think I’ve got a question about one or two more of the definitions, and then we’ll be able to move out of clause 1.
I wanted to ask this. In the case of a piece of legislation like this that is tied fairly closely to the work of the working group of the Uniform Law Conference of Canada…. My recollection is that in terms of the processes within the government of British Columbia — this likely predated the present Attorney General’s arrival on the scene — the decision to move ahead with this legislation would have still triggered the creation of what we call an RFL, or a request for legislation, which would have made its way to legislative counsel to be turned into a piece of legislation.
Is that correct? Is that the process that was followed in this case?
Hon. N. Sharma: It did. It followed the process that we have here for creating legislation in B.C., with an RFL.
M. de Jong: To be clear, that involved the creation of a request for legislation, RFL, and the involvement of legislative counsel.
The third part of that question. Legislative counsel is still housed within the Ministry of the Attorney General.
Hon. N. Sharma: Yes to all of those questions.
M. de Jong: The next term that is, I suppose, arguably one of the most important in the body of legislation before us is the term “intimate image.” Much turns on what the act deems to be an intimate image. It’s here that we see reference to notions of altered images and also unidentifiable images.
If I can break this down a little bit, when one reads some of the commentary from the Uniform Law Conference of Canada report, it makes reference, obviously, to the definition. It recommends a definition of “intimate image.” That recommendation included what the government and the Attorney have done, which is include in the definition a reference to an altered image.
So for the record, an intimate image is: “a visual recording or visual simultaneous representation of an individual, whether or not the individual is identifiable and whether or not the image has been altered in any way, in which the individual is depicted….” Then it lists five ways that an individual can be depicted. I won’t read that out just yet.
In deciding and recommending, and the government has accepted this recommendation around altered images, the working group of the Uniform Law Conference spoke about the increasing incidents of altered images, video or sound. It used a term, and the term…. I’ve heard others use it, and I hadn’t heard the term before, but it seems to be a key part of this. It’s called a deepfake.
The simplest question I can ask is: what is that? What is its relevance to…? Although the term is not used, those recommending the language in this definitional section very much had a deepfake in mind when they recommended this language.
Hon. N. Sharma: A deepfake is when an image of somebody is taken, altered and made to look like the person is doing things, with blinking eyes and a moving body in a way that’s not there. The use of technology right now makes it so deepfakes can be very accurate in terms of how it shows and shows up to look like the person, but the person is doing things that they never did.
The definition. This is an example, with altered images, where we took the Uniform Law Conference’s legislation, and we went through a rigorous consultation process here. We added things to our process and to our content to make it the most up-to-date as possible. So the altered images provision is meant to include things like deepfakes.
M. de Jong: Okay. Well, thank you.
In terms of the things that were added, are those…? The specific five subsections included in this — is that what the Attorney is referring to: sub (a) “engaging in a sexual act,” (b) “nude or nearly nude”? When she says that the government chose to add things to that definition, does she mean add specificity as laid out in subs (a) through (e) of the section?
Hon. N. Sharma: Yeah, there are some modifications between the model bill that the member was referring to and what is before us today, in terms of the specific language. Some of it’s convention, and some of it is addition through our process.
We can go through specific ones if you…. It’s evident when you compare the two, but if you have specific questions, I’m happy to answer.
M. de Jong: Well, I won’t ask the general question, because I think that’s unfair. It’ll be a bit unwieldy if I ask that now.
As it relates to the definition of “intimate image,” this really key core defined term, can the minister summarize what she sees as the significant differences between what the Uniform Law Conference was recommending in its model legislation versus what is here?
Hon. N. Sharma: The most significant addition is “simultaneous representation.” You’ll see, in subclause (e), simultaneous representation, which is meant to capture things that are taken in real time and streaming, like with TikTok or some of the other ways that things show up on media platforms. That’s one way.
There are other ways throughout that are worded differently between the two, but that’s the most significant policy addition that we saw needed to be added to the definition.
M. de Jong: What old guys like me would still refer to as a live broadcast would be a simultaneous transmission.
All right. All of us have seen examples of photographs or videos where someone’s face might be obscured. The technology to do that has evolved, and it’s apparently relatively easy to do now. That could qualify and be covered as an altered intimate image within the meaning of this definition?
Hon. N. Sharma: Yes.
M. de Jong: The second part of the definition that someone — a layperson, at least, and maybe even more than a layperson — would pause to consider is the decision in the legislation — and again, to be fair, flowing, I suspect, from the recommendation that was contained in the Uniform Law Conference — to capture, in the provisions of the act…. Well, the key phrase in the definition is “whether or not the individual is identifiable.”
On the surface, a person might conclude that if the person is not identifiable, then where is the risk? Where is the risk of harm in a piece of legislation that examines the issue from the victim’s perspective?
Why don’t we start there, because I think, in this day and age and based on what we’re told is out there and sometimes posted, the fact that someone — a claimant or an applicant — can proceed on the strength of a photo that is not identifiable or where the individual is not identifiable might strike some people as, at a minimum, interesting.
Hon. N. Sharma: A person who is not identifiable in an intimate image still has a reasonable expectation of privacy and can still bring an action under this legislation. Privacy, sexual identity and sexual identification are all still issues of concern for a person depicted in a photo, whether or not their face is visible.
Limiting the definition to “identifiable images” would focus too much on the reputational harm and fail to give consideration to the social harms, including invasion of privacy, loss of sexual autonomy, sexual objectification and emotional distress.
Unidentifiable people deserve the same protections as identifiable people because you can experience emotional distress in both cases.
We should also be mindful that, over time, information can be pieced together, revealed in an image, or established, or at least, to create a strong inference of the identity of a person and an image.
M. de Jong: I’ll ask these few questions here, and then if I make the mistake of asking them again around clauses 5 or 6, the Attorney will be entitled to say: “Well, we answered that.” I won’t purport to repeat the questions because I think they’re applicable in either of the sections.
So a claimant or an applicant, and I probably should specify which, but I’ll think about that for a moment while I’m speaking, comes before the tribunal seeking to avail themselves…. Well, let’s say it’s an applicant seeking injunctive relief in the first stage.
They say to the tribunal: “Here is an intimate image that I am seeking injunctive relief for, a takedown order.” On the surface, at least, it’s unclear that that is a…. At least, for the tribunal, it is unclear whether that is an image of the claimant.
At that stage, is the claimant…? Sorry, applicant. The terms are important here. At that stage, is the applicant obliged to convince or prove to the tribunal that, even though the image is not identifiable, it is an image of them?
Hon. N. Sharma: The relevant provision in section 5 states pretty clearly that the applicant must satisfy the decision-maker that the image is an intimate image depicting the applicant.
M. de Jong: All right. Well, that’s pertinent and relevant.
The significance of that, for the purpose of the definitional section, is that people keep in mind…. Even though the image, on its face, need not be identifiable with respect to an individual…. We haven’t talked about, for example, an image of genital organs or a region of the breasts. Even though a third party would not necessarily be able to identify that image with an individual, that does not preclude seeking relief under the act. But in seeking that relief, the applicant needs to satisfy the tribunal that it is an intimate image of them.
Hon. N. Sharma: Yes.
M. de Jong: The Attorney referred, a few moments ago, in sort of broad terms, to the importance of the concept of a reasonable expectation of privacy.
I take it that that is, thematically, what distinguishes much of the approach here. The decision flowing, again, from the Uniform Law Conference was to build this statutory tort around the notion of privacy as opposed to harm. If I’ve got that correct at the moment, the Attorney can confirm that. The reasonable expectation of privacy becomes a fundamental part of what an adjudicator needs to look at in terms of granting relief.
Let’s start by asking for the Attorney and government’s view of what constitutes a reasonable expectation of privacy, in terms of what an adjudicator is going to look at.
Hon. N. Sharma: I’ll start by saying that the reasonable expectation of privacy has kind of a rich series of case law, when it comes to the common law, all the way up to the Supreme Court of Canada, and that’s ever-evolving in different circumstances. What this legislation seeks to do is to clarify the principles of a reasonable expectation of privacy and how they apply to the non-consensual disclosure of intimate images.
For example, it establishes that your reasonable expectation to privacy is not lost if an image of yourself is distributed, or if you’ve distributed it to one person. That person then can distribute it to everybody. If you’ve only given consent to that one person, and that person distributed it…. It basically sets out the bounds when it comes to non-consensual disclosure of intimate images. In that sense, it’s clarifying the role of the reasonable expectation of privacy with relation to this matter.
M. de Jong: I’m going to do something now, perhaps at my peril, because as the minister says, the lens through which this legislation was drafted and is being advanced is that of someone that has either been victimized or is threatened with victimization.
I will suggest this. In the age we live in…. Happily, because of the views that society has properly formed about those who would seek to victimize people, someone who becomes the subject of a claim under this act is likely to, and perhaps appropriately, suffer some reputational damage. It may be more than just that, so having some clarity around….
Again, coming back to the working group’s report, they discuss aspects of reasonable expectation of privacy and make the point that the photograph of a person wearing a bikini on a public beach that subsequently is distributed. In that case, there likely isn’t a reasonable expectation of privacy. At least, I think that’s what they suggest.
You can take that example further, I suppose. A photograph of a person who is topless on that beach, who is then photographed on a public beach, and that photograph is distributed. I don’t think it’s fair for me to ask the Attorney to comment on every conceivable scenario that is out there, but it suggests to me that there are a range of factors that come into play, including the setting in which the image was captured. Is that a fair comment?
I would say this. Someone that captures an image in a very public setting and then posts that image would not want to find themselves on the receiving end, necessarily, of a claim. Although there are protections for the identity of the applicant or claimant, I don’t think there are any such protections for the identity of the respondent.
Hon. N. Sharma: I wonder if I could seek clarity from the member if we’re now on section 2.
M. de Jong: We’re not, although I understand why the Attorney might think that. The term “reasonable expectation of privacy” as it appears in the definition of intimate image.
I am indifferent as to where we have this conversation and don’t plan to repeat it in section 2.
Hon. N. Sharma: Under section 2 of the act, it sets out reasonable expectation of privacy as to how it applies to this act. I can say that this is going to be an evolving area of law that is fact specific, depending on whether or not they would find that that reasonable expectation of privacy existed in that scenario.
The member brought up some examples. I think this one’s illustrative in response to your example. For example, if a person is in a public park or on a beach, like you mentioned, there may be a conclusion that there’s not, in general, a general sense of an expectation of privacy.
But if there’s somebody with a hidden camera or a hidden lens or a telescopic lens — there are all those different forms of technology that capture images that exposes that person in a way that they’re not exposed; so for example, and unfortunately this happens, up a person’s skirt, or something like that — I think then you could see a court or adjudicator deciding that that has been tripped over to having an element of a breach of a reasonable expectation of privacy to it.
It’s going to be just like the area of the law right now, when it comes to reasonable expectation of privacy. It’s going to be very fact specific and based on the scenario that’s before the decision-maker.
M. de Jong: Yeah, I saw that, again, referenced in the working group, the phenomenon the minister has described of upskirting, which I take it is, what she said, someone finding a way to manipulate a camera lens into people’s intimate parts under their clothing.
Would it be fair to say, as a guide to the behaviour of people, that a normal, unaltered photograph taken of a person in a public setting where others are observing that person would generally not attract a reasonable expectation of privacy?
Hon. N. Sharma: There are so many factors that could switch that over, so it’s really hard to answer that question. Like, for example, if it was a nude beach, but it was roped off and said “no pictures” — right? —that changes that scenario. I just think it’s really hard to draw a line around something without a full factual basis. But what I would say is that if there’s any doubt, what we’re trying to say is that you should have the person’s consent before you take the image or distribute it.
M. de Jong: I think the last question on this issue…. In a circumstance where an image has been captured…. Let us say a photograph, for these purposes. It is captured in circumstances where an adjudicator would find there is not a reasonable expectation of privacy at that time and the image is subsequently distributed.
Is the act constructed in a way generally that would allow the person depicted in that image to argue the equivalent of this: “Yes, I agree that at the time, I did not have a reasonable expectation of privacy because I was on a public beach. I understand that, but I’m no longer comfortable with having that image, and therefore, I wish to invoke my reasonable expectation of privacy after the fact and have that image deemed intimate for the purpose of the act and taken down”?
Hon. N. Sharma: In one scenario, it’s inherent in the definition of “intimate image,” and one of the components is that at the time, the individual had a reasonable expectation of privacy. I think that’s one of the scenarios you talked about. Then in that situation, it doesn’t form the definition of an intimate image if that reasonable expectation of privacy didn’t exist at the time that it was taken, right?
We do have provisions in here that talk about whether or not there was a reasonable expectation of privacy, but there was consent. If the person had consented at the time, under that circumstance, for distribution, but they revoked that consent, then they’re able to pursue a claim, because consent can change at any time.
M. de Jong: I think the Attorney has answered the question in a way that makes sense to me. There is that distinction that where there is not a reasonable expectation of privacy at the time, that is not something that can be cured later. The definition of intimate image has not been satisfied, therefore. In the second example, the definition has been satisfied. Consent has been granted but then later, as provided. I think the Attorney has helpfully drawn the distinction.
That’s it for clause 1.
Clause 1 approved.
On clause 2.
M. de Jong: The part of clause 2 that I just wanted to spend a moment canvassing with the Attorney is sub 2(b)(ii) — which, read in its entirety, again, comes back to this notion of a reasonable expectation of privacy: “(b) a reasonable expectation of privacy in an intimate image is not lost only by reason of…(ii) consent of the individual to the image’s distribution by a person other than the individual, at the time and to the extent of that consent….”
I want to make sure I understand that. Is that to say that for an image — coming back to the point the Attorney made a few moments ago — if there is a reasonable expectation of privacy, you never lose that? You are always entitled to that reasonable expectation of privacy.
Though you can consent — in perpetuity, or for a particular purpose, or for a particular period of time — to have that image distributed, it has not lost its character as an image for which there is a reasonable expectation of privacy. Am I understanding that provision correctly?
Hon. N. Sharma: Yeah. Basically, as the member, I think, was getting to, it establishes that the reasonable expectation of privacy in an intimate image is not lost just because the image is consented to one person. You can say that, for example, a person consented to the distribution to another person, but that does not entitle that person to distribute it to two others or three others.
It’ll be up to the decision-maker in the scenarios to decide the extent of the consent. If it’s withdrawn, then that’s also covered in the act.
Clause 2 approved.
On clause 3.
M. de Jong: I’m just going to draw the Attorney’s attention to subclause 3(2)(b). It just might be helpful to put on the record an example of where an intimate image can be lawfully distributed without the consent of an individual.
Hon. N. Sharma: One example for that subclause is to capture things like a police investigation.
M. de Jong: Right. An investigation, for which there was evidentiary significance, to an intimate image, as defined in the act — nude or nearly nude; engaging in a sexual act; exposing genital organs — so for advancing the purpose of an investigation.
Then sub (a) of that same subsection (2) speaks of it being “impracticable in the circumstances to obtain the consent….” Does that relate? It doesn’t seem to relate exclusively to law enforcement, court proceedings or investigations. It seems to contemplate other circumstances in which it might be impracticable to obtain consent. What would an example of that be?
M. Lee: I wish to seek leave to make an introduction.
Leave granted.
Introductions by Members
M. Lee: I mentioned before question period that today we have visiting in the precinct, in the assembly, three groups from Eric Hamber Secondary School, in my riding of Vancouver-Langara. I met with the second group on the back stairs, at the education entrance, and the Minister for Mental Health and Addictions come by and say hi, as well as the member for West Vancouver–Capilano.
Ms. Lemmon is here as the teacher with about 25 grade nine and 11 students from Eric Hamber Secondary, as I mentioned, the school that my wife and her siblings, as well as my nephews, have gone to school at. I talked to them about my Youth Advisory Council, my youth forum, this coming Saturday. I hope that they can join at the Sunset Community Centre from 11:30 to 2.
We are in process, here, with my good colleague the member for Abbotsford West, debating with the Attorney General an important bill, as I mentioned to the first group coming through, about legislation to ensure that people like yourselves are safe from intimate images being circulated on social media.
It’s an issue, of course, not just for young people but in terms of cyberbullying and other aspects of exploitation. We need to ensure that people like yourselves are protected. This is the back-and-forth committee review, section by section, of that very important bill. I hope you enjoy the rest of your tour. The member for Peace River North is now waving at you as well. Thanks again.
Debate Continued
Hon. N. Sharma: Really, I start by rooting it in the purpose of it. The purpose of this is to not impede a matter that’s in the public interest.
You always are trying to seek consent, but if it’s impractical to seek it and it’s impeding something, then, of course…. We carved out a provision for that. For example, if the accused is in one of the images or it’s a rushed matter…. There are certain scenarios that may come up in a police investigation that make it so it’s impractical.
M. de Jong: Right. I’ll try one more time. Sub 2(b) seems to embrace everything and anything one can contemplate involving a police investigation or a court proceeding, law enforcement. Sub (a) seems to contemplate…. The language is impracticable. The law enforcement investigation, court proceedings, investigations have their own exemption.
I’m just wondering if the Attorney and the government were contemplating something beyond those kinds of investigations. A circumstance would occur where it’s just not practicable, and that would justify dispensing with consent.
Hon. N. Sharma: I’ll start by saying, again, that the idea behind the act is to try to seek consent, if possible. The scenarios that we’ve carved out, in terms of being impractical to seek consent…. As I mentioned before, it could be things like…. Somebody is under investigation, and they’re depicted in a video. It’s in the matter of that interest that there’s an exception carved out to that consent.
It would be hard to think of every scenario that might come up with. I guess the intent there is to make sure that the purposeful use of the image or the distribution of the image — that’s not meant, except for these scenarios — is protected.
M. de Jong: I’m going to move on and leave it with this observation. My experience with the drafting of these things is, in a case like this…. On the one hand, in sub (b), there is a very specific exemption created, and it relates to law enforcement investigations and court proceedings. That’s one thing.
The drafters, presumably on the instruction of someone, have contemplated that there might be something else. I think the examples the Attorney gave would all be captured by the three cases in sub (2)(b). Someone has contemplated that there might be something. There is something beyond these investigations that would justify dispensing with consent.
If I could think of something, I would offer it up. I can’t think of anything, and that’s why I’m asking the Attorney.
Hon. N. Sharma: It’s hard to go scenario by scenario of what might fit into this, but I can give another example. If it’s the Crown deciding to lay a charge on somebody — it’s incidental to an investigation — it may be distributed. It’s captured under this if it’s impractical to get the person’s consent.
Clause 3 approved.
On clause 4.
M. de Jong: Here’s where we come to the important concept of revocable consent. A scenario in which an intimate image has been captured. Consent has presumably been given to allow for distribution, and then the person depicted in that intimate image has had a change of mind and says: “I am withdrawing that consent.” That requires a response and certain behaviour from the person to whom that consent has been revoked.
The first thing I think I’d like to ask…. Again, this is one of those questions that could be asked in clause 4 or 5, in either one. I promise I won’t repeat it in clause 5.
In a situation where…. An intimate image has been captured. Consent has been given to distribute it, and the individual depicted in the intimate image subsequently has a change of mind and withdraws the consent.
In a case where they have brought or are intending to bring an application under clause 5…. Can that application be considered prior to the revocation of consent? In order to bring that application, must the applicant demonstrate to the adjudicator: “Yes, I initially gave consent. I have now withdrawn that consent, and here is the evidence of that”?
Hon. N. Sharma: If I could please ask the member to clarify the question with more specifics, I think it would help us.
[S. Chandra Herbert in the chair.]
M. de Jong: All right. I think the easiest way to do this is by way of example. We have an applicant seeking to avail themselves of the relief available under clause 5, some injunctive relief for a takedown order.
I think my question is this. In a scenario where the applicant who was captured in the intimate image…. So we have an intimate image. The applicant has been captured in that intimate image but has initially provided consent for its distribution and now has a change of mind for whatever reason.
In order to successfully advance their application under clause 5, must they first demonstrate that they have revoked that consent? Is that a prerequisite to securing relief under clause 5?
Hon. N. Sharma: I guess it starts off by saying…. We do have a process under section 4 of revoking consent, and it involves communicating with the person. Clearly, an act of filing an application is also saying that the consent is withdrawn, and there may be circumstances where it’s not possible to communicate that there was no consent. For example, if it was taken….
We mentioned earlier about the technology that can take pictures of somebody without them knowing — up their skirt or something — and then distribute it. You’re not going to be able to go find that person and say: “I don’t consent to that.” So we have to keep in mind those scenarios when we’re thinking about it. But clearly, the clearer way also is making an application that that consent is no longer available, but also, there is a provision under 4 that talks about the process of revoking consent.
M. de Jong: Right. Again, I don’t want to belabour this, but I think it’s…. I think what I’m trying to establish is that in cases where consent has initially been given, absent a circumstance in which it is not reasonably possible to revoke that consent as per the provisions of the act….
In a situation where a person does have the means to revoke that consent and communicate it, it strikes me that it would be reasonable for a tribunal to say and for us to say that prior to seeking tribunal relief and injunctive relief, communicating that revocation of consent would be a prerequisite. Is that how the act is intended to operate?
Hon. N. Sharma: I just want to start by, I think, maybe bringing some clarity about how this provision fits into the act — first of all, by saying that in section 4, its main purpose is to make it clear that consent is revocable.
You can have a process where you consented and then no longer do. That actually brings a very important level of clarity to that idea of consent. Bringing an action or an application under this process does not require you to have contacted that person and said: “You no longer have my consent.” There are legal tests within the process, where you can determine — and the respondent can make claims about — whether consent was available or around. That’s a legal determination.
I think the basic point of that provision is to make it clear that it can be withdrawn. But then you also have to guard, in the process, against scenarios where there may be a safety concern about notifying the person who distributed the image.
There may be a power imbalance. There may be violence. There may be tons of reasons where you would never require the person that is the victim of this type of non-consensual disclosure — or in this scenario, the applicant — to have undergone a process of saying: “Hey, you no longer have my consent.” I just wanted to clarify that, in terms of the way this fits into the act.
M. de Jong: Right, and fair enough. I think that is helpful.
I’m going to add this scenario, from a slightly different perspective. Let’s try to take, maybe, a realistic example of the relationship that has been in place for a number of years. The parties have captured intimate images of one another and consensually placed them on one of these Internet…. An “internet intermediary,” I think, is the term. Life is good. There is a breakdown in the relationship, and the parties separate, part company, deal with it maturely and are on their way.
Then suddenly one of the parties finds themselves on the receiving end of an application or discovers that an application has been made under clause 5, or becomes a respondent under clause 6. The claimant says: “Well, I now revoke my consent. Yes, there was consent, but I’ve decided to revoke it.” “Well, did you ever tell the other party?” “No, but I am now, because I’ve commenced this action.”
I’m going to suggest that there can be a stigma attached to the respondent in that case — who, in that scenario, hasn’t necessarily done anything particularly bad.
Yes, I agree. There may be circumstances in which the ability to communicate revocation of consent is compromised and not practicable. But I can think of other circumstances where it would be fairly reasonable to expect that before seeking relief, communicating that revocation, informing the other party: “The consent that I have given is now at an end. Please take the steps necessary to respect that.”
Hon. N. Sharma: Just some clarity from the member, if there’s a question there or something that specifically just you want me to respond to.
M. de Jong: In the example that the Attorney gave, I think she made a partial case for why it shouldn’t be necessary in certain instances for a claimant or an applicant to demonstrate that they have revoked consent.
I have tried to make the case, through a different example, for why in other instances, it would be eminently reasonable to require a claimant to demonstrate that they have communicated a revocation of their consent: (a) does she agree, and (b) how does she believe the act would operate to address that?
Hon. N. Sharma: The rest of the act and the point of it is to stop distribution. So it would be available to the applicant, just like all of our justice system, for them to seek remedy in the form that they feel is the most appropriate for their issues.
In the example there, if a partner, on the ending of a marriage, doesn’t want an order to stop the harm of distribution, then, of course, it’s open to them to do that.
We’ll go later on, I think, when we get to those sections about protections that are available to respondents in the process.
M. de Jong: All right, if we can stick with the rough example that I gave. Let’s take a case where revocation of consent has actually been communicated to the other party, to the person who distributed the intimate image. Then sub 4(2)(c) becomes relevant. If the individual depicted in the intimate image has communicated “…that revocation to a person who distributed the intimate image, the person who distributed the intimate image must make every reasonable effort to make an intimate image unavailable to others.”
What’s the Attorney’s view of what constitutes reasonable steps? By that I mean…. An image has been posted on one of the Internet intermediary platforms that we talked about earlier. I suppose it’s a fairly straightforward thing to say…. The person who has initially distributed it, they take it down off their Facebook site, for example. Except in the intervening two months, the thing was distributed very, very widely through whatever — those Internet networks that people have via Facebook channels.
How far does that obligation extend in terms of…? One can contemplate circumstances in which simply taking it down from, let’s call them, the host’s Facebook site is not going to make that image disappear from the Internet. What is the nature of the obligation that an individual has who has at one time distributed an intimate image with consent and is then told: “I am withdrawing that consent”?
Hon. N. Sharma: Like many things in the law, the reasonable standard is applied to the facts, and the facts will vary greatly.
For example, if there was consent to put something up on one website and then it was distributed widely, then a decision-maker may look at those facts and say, “In this scenario, what’s reasonable is for the person to take it down from that website,” and they may not be as liable for the rest of the distribution, for example. It’s going to weigh depending on the facts of the scenario in front of them. Whereas, if there was no consent and it was posted, then, obviously, the decision-maker is going to have, probably, a broader scope of accountability for that distributor.
What the reasonable standard is will depend, basically, on the facts of the case.
M. de Jong: Well, let’s explore that a little bit further. I think this might become — well, hopefully, not too regular, but a fairly normal type of transaction.
Again using the example of a relationship breaks down. The image has been posted with consent and, therefore, distributed with consent. The consent is withdrawn. We will call the person…. The distributor takes the image down from his or her Facebook site. Does that person, in the Attorney’s mind, acquire an obligation to go further than that and to notify the host platform, the Internet intermediary? “I have received revocation of consent to post this. I have taken it down, and I ask that you do so, similarly, elsewhere on your platform.”
Hon. N. Sharma: That’s very likely an order that a tribunal or a court could make with the individual. That is the obligation that is on them, to notify the company and take down.
It would be up to the decision-maker in that scenario. I’m sure it will depend on the facts and the reasonableness and the actions to mitigate, which are reasonable, in the scenario.
M. de Jong: I don’t think I’ve communicated this very effectively, because the premise of my example is that these are two people who are trying to manage through a breakdown in a relationship and do things responsibly, and, quite frankly, don’t want to make an application, don’t want to be the subject of an application and want to do this correctly.
How far does that obligation go on the part of the former distributor who has now complied by taking down the intimate image on their site but knows full well that 40 of his or her friends have got the image and that it exists elsewhere on that platform and wants to do what is reasonable to comply with the law?
Hon. N. Sharma: I’ll start again by saying that section 4 is really there to make it clear that consent can be revoked.
If the parties have communicated and done those steps, it may be that there is no application, as the member suggested — that reasonable steps were taken. So there is no application before a tribunal or a court.
The act as a whole does give guidance on what reasonable is. If you look at subsection (5) — I’m sure we’ll get to it — it talks about some of the efforts that a person could take that would set a reasonable standard. Of course, it’s going to be factored in and fact based.
I think that as we have this in place over a period of time, there will be increasing decisions and an idea of what the standards, as they develop, are in the jurisprudence.
M. de Jong: I couldn’t help but observe that there are a fair number of younger people in the gallery who probably had no idea that debates in this chamber were so exciting. Yet, ironically, the legal provisions we’re talking about are probably more applicable to them than any other segment of our society and a testament, in many ways, to how technology has both simplified but also made our lives far more complicated. There is a whole broad range of legal responsibilities that go with how we utilize that technology properly.
Let’s go to clause 5.
Clause 4 approved.
On clause 5.
M. de Jong: One of the things that the Attorney, I believe, has tried to emphasize throughout this discussion is about how this is…. There’s a victim-driven component to how the act was put together. That lens has been prevalent, providing, in the case of clause 5, speedy access to redress and…. Lawyers would say “injunctive relief,” but everyone else would say: “Getting the image out of the public domain.” That’s sort of the heart and soul of what clause 5 is about: one of the two avenues for remedy and relief.
What I’m interested in giving the Attorney an opportunity to do in a fairly detailed way is explain how she sees the procedure for this. I hope we can maybe collectively paint a bit of a picture of the 18- or 19-year-old young lady who has discovered that an intimate image of her is inhabiting the Internet without her consent. Even if she knows who the source of that distribution is, she may not know how to contact them, want to contact them, is just aware that it’s out there and wants it off the air. What is she going to do?
I understand that when we’re talking about procedure, the minister can simply say: “Well, all of that needs to be worked out.” But maybe what I’m asking the Attorney to take advantage of is to lay out on the record what she expects and hopes and challenges these tribunals and administrators to create, and how she sees this as working effectively.
Hon. N. Sharma: As the member noted, there’s still work to do on implementation, but I’m happy to say this is an area that we’ve given a lot of thought to, and I think it is valuable. Thanks for the opportunity to put on the record about the thinking about what the process will be like for a young person, as you mentioned, if they come forward.
The victim will start with, we’ll just say, the CRT process. So how do you get an order from the civil resolution tribunal? The process will start with the victim encountering a solution explorer. The solution explorer is an artificially intelligent guided pathway, so it’s designed specifically for this type of issue. It will help the victim diagnose the problem, provide information, provide self-help steps, off-ramps and other services and supports. Supports are really important, because we know, oftentimes, they’re very vulnerable in this situation and can have trauma and other mental health issues associated with that. Information on the streams for the application process….
The self-help tool, we think, will offer a fast and easy way to address the intimate images. This is a tool that’s available 24-7. You will be able to access it on your cell phone, and it will guide you through the steps of giving notice to the wrongdoer or the Internet intermediary, confirming the absence of consent to distribution and that an application may be made under this statute, once it’s passed, if it is passed, with the potential to result in damages and penalties to the wrongdoer.
If the victim proceeds as an applicant for an expedited intimate images protection order, the CRT will then screen the application to ensure it’s not missing information. It’s within their jurisdiction to do so. And it also provides the opportunity to see if the applicant reports any special needs or limitations that require just additional support — for example, if there’s visual impairment or other things that require special tools.
Next, there’s a specially trained CRT case manager that will work with the applicant to explain the timelines and the steps and to ensure that the information is available and it’s ready to go for a quick and focused adjudication. If there is a respondent — and I’m sure we’ll get to that process at some point — to the application, the case manager may do the same steps with that party. And then, finally, the trauma-informed tribunal member will review the application and make a determination on order that they deem appropriate.
I have more here, and then I’ll just go through…. Just to put it all out there. So the victim then can provide copies of the determinations or orders to the individuals or intermediaries, as required, to prevent the distribution. And then if an order from the CRT has been contravened, the tribunal may decide to order the contravening party to pay administrative monetary penalties, after these people, obviously, have had a chance to be heard. And the option will be there to file and enforce orders with the Supreme Court, if necessary.
M. de Jong: Okay. That’s a good start. It gives us something to work with. Let’s try to break that down a little bit in terms of what that looks like from the point of view of the 18-year-old young lady. I took from the Attorney’s comments that there will be an online self-help mechanism that young people are pretty adept at navigating in most cases.
The Attorney then referred…. And I’m not trying to, again, be mischievous or trip up the Attorney, but I thought in that sequence she also referred to notifying…. And this was prior to talking about obtaining an order. She talked about notifying the Internet intermediary and/or the distributor, which left me with the impression that whoever is developing this procedure….
I’ll draw an analogy. The last time someone hacked into my credit card and I called Mastercard to tell them or there was a disputed transaction, the first thing they said to me was: “Well, before we can do anything, you have to approach that vendor.” What I thought I heard was a reference by the Attorney that prior to obtaining it, there is going to be some obligation on the part of the applicant to contact the Internet intermediary or the distributor.
Hon. N. Sharma: Just to clarify, it’s not a bar, and it’s not a requirement. It’s just an option for the party at that stage. They will be given information about the process, and one of the options is to do that. But obviously, they’re entering a process, likely, to get a chance to get a legal order for the protections that they seek.
M. de Jong: The whole exercise, I take it, with the CRT is intended to take place online. Is there a visual hearing component, albeit a virtual one, to the application, where, to use our example, the 18-year-old applicant is speaking to someone virtually over the Internet to explain the nature of the issue and the relief she is seeking?
Hon. N. Sharma: The CRT is designed, in our system, to be a low-barrier, multichannel process. So it can be up to a hearing. It can be document-driven, so just a document-driven process. There can be other ways for the tribunal member to answer questions.
I think it really is driven by, probably, the complexity of the matter and the determination of that tribunal member of what’s needed. There are many options when it comes to resolution, up to an online platform or online tools that are available.
M. de Jong: Would the Attorney agree with me, though, that what distinguishes this particular type of action under clause 5 is (1), that it generally will not involve another party? My sense is that unlike clause 6, the provisions are designed, lawyers would say, to facilitate an ex-parte application — that is, the other party…. There is no other party. That’s the first thing.
Then the second thing is speed. So when we start hearing descriptions of various possible channels…. The other term for that is time, more time, as people decide what….
I actually thought what the Attorney was going to offer as an objective in this was that when the 18-year-old girl submits the application, the next day there was going to be a hearing in front of a live person that said, “Yeah, here’s the order,” or “Here is not the order,” because everything else starts to sound like we’re measuring in days and weeks, which I would have thought defeats the purpose here.
Hon. N. Sharma: My response to the last question was directly related to the question, which I thought was posed from the member, which is about the ways the hearings can be obtained.
The answer about how the speed of the process is…. It’s very much designed to be a fast process. For example, a real-time hearing oftentimes takes a while, because you have to schedule and do things like that.
You could do something as much as online, submit your documents, and the tribunal member can have enough information, just based on that, to issue an order, which could be pretty quick. If there is a visual impairment, you might need a phone call with the tribunal member. But the idea is very much to do orders quickly.
M. de Jong: Is the Attorney prepared to set out for the committee her and the government’s objective as to a response time for an application? Again, in the example I’m using: the 18-year-old girl who discovers an intimate image is on the Internet, or she has been threatened that it will be placed on the Internet.
Is the Attorney prepared, on behalf of the government, to say: “Our objective is to ensure that that application, once submitted, is heard and ruled upon within X number of hours or X number of days”?
Hon. N. Sharma: Obviously, implementation details are going to be worked out with the civil resolution tribunal, but I can assure the member and the public that timeliness will be a key factor when it comes to the rollout and design of this process.
The intention of, for example, the Solutions Explorer, is for that to be something that’s available 24 hours a day, seven days a week for people to look through. So yeah, timeliness is a key component of how we plan to roll this out with the CRT.
M. de Jong: I get it. You know, governments don’t like to be pinned down on time frames. But the whole point here….
If you’re a lawyer in downtown Vancouver and have all of that training and all of that background, you decide — and you have a client that’s prepared to pay enough money — you can get into court the next day and get an ex parte order. That’s not what we’re dealing with here. We’re dealing with a different group of people who don’t have that expertise, and constructing a system that is intended — and I accept is fully intended — to accommodate that.
All I’ll say to the Attorney is that if governments don’t lay down in a very public way what their expectations are, they’re destined to be disappointed, and it won’t happen in a timely way despite everyone’s best intentions.
I now will put words in the Attorney’s mouth, which I shouldn’t do. I think what the Attorney is looking for is a system that is easily navigated by that 18-year-old young lady so that when she gets online and submits the application, assuming it is complete, she can get an order the next day. I mean, I think that’s what the Attorney would like to see and why she is commending this legislation.
If that’s what the Attorney and the government like, then say it. I understand that the Attorney doesn’t sit in the civil tribunal office. But I think they need to know what the expectations of the House are and, quite frankly, more importantly, what the expectations of the Attorney General are.
Yes, there’s a risk. There’s a risk it won’t happen, and then guys like me will come along and give the Attorney hell for not having hit the objectives. But if we don’t tell them what our expectation is, then I can guarantee it won’t be hit. It’ll be another process that is fraught with delays and doesn’t accomplish the objectives.
Anyway, that’s my attempt to prompt the Attorney not to be shy about telling the House and, by extension, others what her expectations are and what her hope and objective is for the speed with which this process is undertaken.
Hon. N. Sharma: I think I have been clear in setting out my expectations for this process. I’ve said clearly that we want to…. What’s in the legislation is a timely and victim-driven process that provides many protections for the victim. The goal is to have not only the orders and the access to justice be low barrier, like the 24-7 Solutions Navigator, but also the process to be low barrier and expedited.
I’ll be working with the civil resolution tribunal — me and my team — over the next few months to have this process set up. The expectations I think are clear about timeliness.
M. de Jong: Okay. There’s a fine line between clear and vague, and I won’t try to bridge that today. I think I understand. I accept that the Attorney wants this done in a certain way and hopes that 18-year-old young lady can get a quick response. I would urge her to be very specific, and if she’s not prepared to do so publicly, then do so privately with these panels to ensure they understand what her and the House’s expectations are.
Just a couple more questions, then, about the application process itself. I presume, but the Attorney can confirm this, that the body of material that an applicant would have to submit will include the intimate image itself.
Hon. N. Sharma: The applicant must show to a tribunal member that the image is an intimate image depicting the applicant. That’s the legal wording of what they have to show. I mean, in many scenarios, it’ll probably involve the image. But you can imagine some scenarios where we have protection, sometimes, where a written description of the image is less harmful to the person but may be sufficient for the tribunal member to give the order. I don’t want to say that in every situation, that would involve the image. Just to say that the legal test is the decision-maker has to be satisfied that the image depicts the applicant.
M. de Jong: Maybe I should ask the question this way. To facilitate the ease of access, there is going to be a checklist of things — name, contact details — that an applicant needs to include to initiate this ex parte application before the CRT or one of the other tribunals. We focused on the CRT for these purposes. To guide the applicant, there’s going to be a checklist.
I’m suggesting that even though there may be exceptional circumstances where the tribunal can’t see the image, or maybe the applicant doesn’t have access to the image, but in general, there would be a box that says that the tribunal who is ruling on this matter needs to see the image.
The reason I ask that, and the minister may be thinking the same thing, is that even that step may be traumatic for an applicant. Yet that notwithstanding, it would seem to me that it will be a necessary step in most cases for the tribunal to render a decision.
Hon. N. Sharma: We’re still working out the details. It’ll be probably by regulation or process with the CRT that a lot of that shows up that the member was talking about. But, I mean, it’s reasonable and likely that that will be part of the process. But you could also think of scenarios where you just send a link to the website rather than the image. There are other ways to maybe fulfil the evidence for that legal standard.
M. de Jong: Right. That’s a fair point. Coming back to what the Attorney said earlier, in rendering its decision, whether the image is provided by the applicant or it is the tribunal that secures access to it by a different channel, in virtually every case, in rendering a ruling it is going to need to see the image. I think that that’s my point. It sounds like the Attorney agrees with that.
Hon. N. Sharma: It’s quite possible and likely. But I want to say that I don’t want to foreclose any other potential ways of meeting the legal standard out there that may be less harmful to the applicant. We may come up with regulations in the process.
M. de Jong: All right. Well, I’m sufficient to at least ask, having said that, what might that be? What might those…?
In a case where a tribunal is being asked to make a ruling about an image, what alternatives might exist that would preclude the need for the tribunal to see the image?
M. Lee: I seek leave to make an introduction.
The Chair: Please proceed, Member.
Introductions by Members
M. Lee: This is the third group from Eric Hamber Secondary School that I’d like to welcome to this chamber.
I had the further opportunity to welcome them on the back steps with the member for Abbotsford South, who tried to misdirect them. You’re getting waves there from the government members.
I must say — I didn’t say this on the back steps, but I’ll say it now — that it does give me some bittersweet sense to be in this chamber and with this school group because this is my last introduction for Eric Hamber Secondary School in this chamber prior to the tabling of what we expect to be the Electoral Boundaries Commission final report, at which point, Eric Hamber Secondary School will no longer be, technically, in the riding which I represent, for the last six years, Vancouver-Langara.
Many families, of course, and students will still live in my constituency, and I look forward to that, but I won’t have probably the technical ability to make this introduction. I hope you enjoy the balance of this debate on Bill 12, intimate images.
The member for Abbotsford West, the shadow minister for Justice, is quizzing in detail, section by section, a very important bill to protect people from the circulation of intimate images. We know that that has been a concern, including amongst young people, with some unfortunate incidents causing a lot of harm to people, including in a cyberbullying way and other exploitation type ways. The Attorney General and her team are conferring, and they’ll be addressing the response to my colleague, the member for Abbotsford West.
I hope you have a good rest of your tour and that you’ll consider attending my youth forum on Saturday, April 1, from 11:30 to 2 at Sunset Community Centre. I’ve given that information to your teacher. Also, consider my youth advisory council as well. Enjoy the rest of your tour.
The Chair: Go, Griffins. I think that’s the team.
M. Lee: Yes. Go, Griffins.
Debate Continued
Hon. N. Sharma: Okay. I believe I mostly answered the question but just to bring further clarity. There are examples in Provincial Court, in family law, where there is a particularly sensitive or vulnerable very young child, where there are incidents of intimate images, where they’ve done things or processes like asked for affidavit evidence describing the images.
[J. Tegart in the chair.]
Then, in that case, the judge would determine whether or not it’s necessary to disclose the actual image or not. This is just an example of a protection, where there’s a building up of an evidentiary basis for describing an image rather than entering it. That was the reason that I said likely that the member is right. The image will be part of the determination, but there may be scenarios, especially with very young children and images that the tribunal or the court may want to protect the child from disclosure.
M. de Jong: Okay. I accept that. I mean, I think that’s a reasonable response.
The only reason I brought it up is that I think we should be up front about the fact that for the vast majority of applicants beyond a certain age, there is going to be an expectation that they share with the tribunal the image or images, at least an image, that is causing them distress or they’ve been threatened with posting. We’ll leave that. I’m satisfied with the response the Attorney has given on that point.
Further on in clause 5, when we get into subsection (2), and (c) starts to talk about some of the authorities that the decision-maker has.
Our example has been with the CRT, so let’s stick with that just for the ease of our conversation here today. In sub (c), it contemplates an order for an Internet intermediary or other person or organization to do certain things, including removing intimate images from the platform and that sort of thing.
To be clear, there is no requirement and, dare I say, no expectation, that the Internet intermediary would be a party or even receive notice of this application.
Hon. N. Sharma: That’s right.
M. de Jong: I’m just going to jump ahead again with a pledge not to repeat the question. Is that different than the next section? In a situation where a claim for damages might be made, is there a distinction between clauses 5 and 6 with respect to the need to notify an Internet intermediary?
Hon. N. Sharma: Maybe I’ll explain it in relation to both of those provisions just to help bring some clarity to it.
The first thing is that section 5 is all about stopping the harm, so reducing, taking down the images, getting the orders necessary to prevent further distribution. In that situation, there’s no naming or notice to the — for this example raised by the member — Internet intermediary.
When it goes to the damage section — so to claim damages — that’s more of a claim, just like a civil claim for damages. In that case, there are notice requirements. Likely somebody could pursue damages against an Internet intermediary in that scenario.
M. de Jong: Still in 5(2)(c), there is a description of the orders that the decision-maker can provide. That is removing the intimate image, deleting or destroying the intimate image or something called de-indexing, which the minister’s staff kindly informed me relates to the non-retrievability as part of a search. I’m obliged to them for explaining that to me earlier.
The question, of course, that emerges from that relates to the enforceability of the order that is achieved from the decision-maker, the tribunal or the courts. Here’s what the Uniform Law Conference had to say about that.
It’s not lengthy, so I’ll just read it into the record. “A court order under section 4” — in their act; I believe they were referring to what is now our clause 5 — “will allow an applicant or respondent, depending on the order, to seek takedown or de-indexing of the content directly from the internet intermediaries hosting the content, by sending the order to counsel at the intermediary’s corporate office. Most internet intermediaries prohibit users from posting unlawful content. Therefore, a court order under section 4” — our clause 5 — “will serve as compelling evidence that the intermediary’s terms of service have been breached.”
There’s then reference to some Supreme Court jurisprudence, and then this observation: “In the working group’s opinion, most internet intermediaries are likely to comply with takedown or de-indexing orders issued under the act…. As a matter of practice, most major intermediaries comply with local law. Therefore, there is no reason to believe that these companies will resist content removal.”
I guess the question that one is obliged to ask is: does the Attorney share the working group’s optimism about the willingness of Internet intermediaries located outside of this jurisdiction — outside of our provincial jurisdiction, outside of Canada — to honour the orders that emerge from within B.C.?
Hon. N. Sharma: I want to thank the member for the question. I think it’s a really important one, because we’re existing in British Columbia — an international issue. A lot of these issues or claims have no borders when it comes to their impact, but also, the companies that operate…. The reason I do share the optimism of the clause that the member read is for a few reasons.
First and foremost is the activism and the advocacy of people like Carol Todd, who have organized on an international level, to bring attention to the harms related to this issue and specific websites that have been established on an international level — one called, I believe, Take It Down — that assist survivors of this type of sexual violence to get things taken down. Also, a lot of the larger websites and companies are trying to address this type of harm.
What we’re doing with this legislation is sharpening our tools in this province to protect people and to set out pretty clearly what is unlawful conduct in our province when it comes to distributing these images by setting that clear standard and setting up a process to go to these Internet intermediaries and say: “This is unlawful distribution and needs to be taken down.” I am optimistic. I do believe that that will have the intended consequence of having that stuff taken down.
M. de Jong: Thanks to the Attorney. The working group, as part of their optimism, referred to the ability to send notice of orders to the Internet providers, Internet intermediaries corporate offices. Do agencies like Facebook and Twitter have corporate offices in British Columbia?
Hon. N. Sharma: Thanks for the question. I don’t know where all of the offices are located for the, probably, many Internet intermediaries that may be…. An issue may be delivered to them under this process. What I would say is….
If there is a B.C. office, it’s, obviously, a clearer delivery. That being said, once an order is made, an attempt to reach them, in every possible way, whether there’s a Canadian office or an online way to contact them or other offices, to issue the order, I think, would be necessary.
M. de Jong: Maybe another way to ask the question, recognizing the international dimension to this, is….
We have these platforms. I mentioned two — the Attorney has mentioned the same ones — that I believe are, ultimately, headquartered in, let us say, common-law jurisdictions. I think, in both those cases, the ultimate corporate headquarters are in the U.S. but in a common-law jurisdiction.
Is the Attorney at all concerned that the enforceability of the orders that might derive from this legislation becomes more difficult in the case of — I don’t know what they are, although I’m told they exist — platforms and Internet intermediaries that are based in non-common-law jurisdictions or parts of the world where the rule of law may operate in a significantly different way than we might appreciate here?
Hon. N. Sharma: I just want to thank the member for this really important question. I know, as someone who practises law, the member is aware of the complications with international enforcement and, I think, brings up a good point about how to enforce against countries that may not have the same kind of legal protections or common law as we do.
I think there are a few important provisions in this that at least strengthen the ability or the position of the applicant. One is monetary penalties but also access to the enforcement mechanisms of the B.C. Supreme Court when it comes to enforcing their orders. We can’t be certain that the legislation will be effective against every foreign actor, but it will give survivors more tools to address them and better options when it comes to seeking them out. I think this is certainly something that we’re happy to do for survivors: give them better options and better tools, including access to the B.C. Supreme Court to enforce orders that are made under this.
M. de Jong: Thanks. Valid and important points that the Attorney has made. But I guess we have to follow the line of questioning through to its logical conclusion.
The 18-year-old young lady has secured an order from the tribunal to take down an intimate image that has been posted without her consent. She avails herself further of the rules that allow that to be registered as an order of the Supreme Court of British Columbia, and the internationally based Internet intermediary — and I won’t name one, because I don’t think that would be fair — says, “Yeah, that’s great,” and ignores it. Anything that can be done? Anything that that person can do in those circumstances?
Hon. N. Sharma: I think it is difficult in those scenarios, the one that you’ve identified. The position that we’ve taken with this legislation and even the act of stepping forward to create a new system of justice for people in the scenario is to do what we can within our legal tools and to strengthen our justice system. As I mentioned before, these orders would give access to monetary penalties and also the processes in the Supreme Court that we have for enforcing orders.
I think those are ways that we thought, and we knew, that we could strengthen the tools available to survivors, but there are scenarios that are very difficult.
M. de Jong: Well, notwithstanding the challenges, I think that is a wonderfully honest response. Thank you.
I think it’s important for people to know that as we create these avenues within British Columbia, our jurisdiction is limited. We don’t need to do…. Happily, we have reciprocal enforcement agreements with many countries, so there are some avenues, but for those Internet providers that may seek to hide out in jurisdictions that don’t have the same sense of responsibility or respect for the rule of law, it will ultimately be difficult. Enforcing orders, even in other jurisdictions with whom we have those agreements, is a challenging task as well.
I appreciate the Attorney recognizing that for all of the sound intentions, there are some limits that extend beyond what this place, this jurisdiction, can accommodate and address.
Limitation periods. There are some different provisions as it relates to monetary penalties, but for clause 5 — and pursuing an order in relief under clause 5 — how do the limitation provisions apply? The Attorney has very capable and informed staff, but I hope she’ll go beyond saying that the usual limitation periods apply.
What I’m really looking for is…. Again, going back to our example, is there a limitation period for that 18-year-old young lady who has discovered this intimate image that has been posted without her consent? Is there a limitation period within which she must seek redress under this provision?
Hon. N. Sharma: I’m going to start my answer by saying the regular Limitation Act in B.C. will apply, but I’ll give some more details when it comes to that.
Under that regime, when you think about how it might apply to these scenarios…. First of all, I’ll start by the exceptions that are under the Limitation Act, particularly for minors. All of those exceptions would apply.
The next one is discoverability. In the scenario where the person hasn’t discovered that it was out there, of course, she’d be captured by those protections on the Limitation Act.
Then the other principle under the Limitation Act that may be implicated in the facts is continuing fact. So the fact that the image is still up there for maybe — let’s say it’s five years. It’s still ongoing harm and ongoing, basically, breach to that victim, so then that would also be protected under the Limitation Act. So it would extend, potentially, the period for limitations.
M. de Jong: Okay. Thanks. That’s helpful.
Discoverability. We’ll come back to our example. An 18-year-old young lady finds out that this intimate image has been posted. If it’s taken down, I suppose she could still seek injunctive relief to make sure it’s not reposted, but the likelihood of her doing so begins to diminish if it’s outside of the public domain. In that case, is it one year that she would have to seek that?
Now, we’re talking about under clause 5. She has discovered it. It is taken down. She has one year or two years to seek relief under clause 5?
Hon. N. Sharma: Just to start, maybe with a head nod, you were talking about a claim under section 6 and damages?
Interjection.
Hon. N. Sharma: Section 5. Maybe, then, I need a question of clarity to the member.
Are you saying…? In the scenario you’ve given us, you’ve said that the image has been taken down. So maybe I need clarity to understand which order the person would be seeking under section 5.
M. de Jong: Right. An 18-year-old discovers an intimate image has been posted without her consent. It then comes down. I’ve acknowledged that the likelihood of her seeking an order under clause 5 diminishes, but it is still conceivable that she would seek injunctive relief. Plus, the possibility of a threat that it might be reposted….
Even that’s not a great example, because I presume the limitation would run from the moment the threat was made. I’m trying to establish the difference between a case where the images come down and she might want injunctive relief to protect against its reposting versus a case where the image is still there, in which case, I take it, as long as the image is up, she maintains the ability to seek relief under clause 5. As long as the image is up, she falls within the limitation period.
Hon. N. Sharma: Okay. I’m giving a lot of disclaimers on this answer.
It depends on whether or not there are other sections of the Limitation Act that the person might be able to avail themself of and the very complicated scenarios that people have. I would say, barring any other exception, the limitations would start the minute the image is taken down, unless there’s something else that prolongs that time period.
I’m sorry. I already gave all the disclaimers. So subject to discoverability and all those other things.
M. de Jong: I understand the need to reference those disclaimers as it relates to this complicated area of the law.
I think the last question I would have around this, as it relates to clause 5, goes as follows. We’ll take our example. The image has been posted. It has been posted for two years. It’s an intimate image. There’s no consent. The 18-year-old endures, takes no step, becomes 19. Now she is 23, and it suddenly is presenting a different problem to her, in terms of securing employment. Her life has taken on a different…. The image has been posted throughout.
Has she lost, through the passage of that time, the ability to avail herself of relief under clause 5?
Hon. N. Sharma: I think the protection that the person described could avail themself of is section 4. So the fact that consent was withdrawn for that image. That might be one way. I think there may be some legal arguments, in that regard, related to continuing harm, depending on the facts.
M. de Jong: I am eternally grateful and somewhat embarrassed, given the nature of the question I’m about to ask, which I think will be the final one on this section.
I raised this with the staff. It has to do with sub (5) of clause 5. It’s just the language. Sometimes we see this, and sometimes we don’t. This is a reg-making power that allows for…. In sub (5), the line that interests me is the final one: “…after considering any prescribed factors….”
The question is more a case of legislative drafting. When we say that, does that mean…?
I’ll let the Attorney make sure she knows where I’m at here. I think she’s found it.
Today, in terms of the canons of construction and interpretation, statutory interpretation…. Does that mean that the decision-maker can only consider factors that are prescribed? Or does it mean they can consider factors that are prescribed and anything else that that they want to consider?
When I read it, it seems fairly directive. It says there will be regulations that lay out what you may take into account. Those are the things that you may take into account and nothing more.
Hon. N. Sharma: After talking about legislative drafting and the wording…. I’m assured that the intent of that wording is not to limit. It’s drafted in a sense that wouldn’t limit it to only those prescribed factors. It signals that there may be prescribed factors. That is the intent of that language.
If there will be regulation, which there may not be with this particular clause, then it may give factors for them to consider. But the way it’s drafted is not limiting it only to those prescribed factors.
Clause 5 approved.
The Chair: I note that we haven’t had a break. I want to check with the minister if anyone requires a five minute…. Take five? Okay.
We will recess for five minutes.
The committee recessed from 3:37 p.m. to 3:47 p.m.
[J. Tegart in the chair.]
The Chair: We’ll call the committee on Bill 12 back to order.
On clause 6.
M. de Jong: We’re now on to, really, the second new avenue for claim that the act provides for, and that is the one that includes the possibility of an applicant receiving damages. I think maybe the general question here for the minister is to summarize, as best she can, the significant differences between this and the previous section, where it’s injunctive relief.
By that I mean, presumably, in this case, for reasons that we’ve already discussed, there will be a respondent. There is an obligation to notify those people whom an applicant is seeking damages from and the nature of the relief that can be claimed and against whom that relief can be claimed as part of an action under clause 6.
Hon. N. Sharma: I’ll start by talking about the distinctions between the two processes. As we already went over in section 5, that’s really about an expedited order process to take down. It’s very different than the claim for damages in section 6. I’ll point out some of the significant differences.
To start with, an individual or the public can think of this much like a civil claim for damages, the levels of court being the civil resolution tribunal, the Provincial Court and the Supreme Court, which are available to them to make damages. The notice provisions and all of the general provisions with respect to civil claims would apply.
Notably, it isn’t tied to whatever the orders are in the application. It could be a broad claim for damages that are quite apart from the expedited order. All that needs to be the basis of it is that an image was distributed without their consent. We also left it open to the heads of damages that may be pursued in the matter that are available in our court system for civil claims. It is very much like a civil claim for damages.
M. de Jong: All of the answer is helpful, but the last part provides the helpful segue into my next question. This is: in a legal world where there are other available torts, other available causes of action known within the common law, to facilitate a claim for damages in circumstances like this, what is the gap that the minister and the government believe exists and that this particular statutory cause of action is intended to address?
Hon. N. Sharma: One of the things that was an underlying goal in putting together this piece of legislation was to bring clarity into some uncertainties in the law.
There is uncertainty, when it comes to the unlawfulness of non-consensual disclosure of intimate images, at common law. While there is a new common law tort that has been recognized in other provinces, we’re not aware of its recognition in this province. Similarly, actions of invasion of privacy, intentional infliction of nervous shock, breach of confidence and some other torts can be onerous to argue.
Subsection 6(1) says that if somebody is depicted…. If an intimate image of a person is distributed without their consent, they may claim relief for that. So it sets out a claim for damages, specifically for that act. Does that help?
M. de Jong: Yes, in part, it does, because the Attorney has touched on some of the existing torts around violations of privacy, the disclosure or public disclosure of private facts. In terms of the clarity…. It’s a question; I’m sorry. I might make it as a statement, but I mean it as a question.
The lack of clarity may have related more to the question of what applicable damages might be sought — the question of damages being suffered or injury being suffered, in this case. I understand that the Attorney says that we have removed any doubt, by virtue of the specificity of our definition of the disclosure of an “intimate image.” I’m going to suggest that there wasn’t a lot of doubt, in Canadian tort law, that that represented tortious behaviour.
Where I thought that there might be more uncertainty and that the section seeks to bring some additional clarity is around the issue of damages and the heads of damages, as the minister put it, that might be applicable. But that’s a question, and the minister may disagree with me in that regard.
[S. Chandra Herbert in the chair.]
Hon. N. Sharma: Thanks for the question. I think the overall goal of this…. I take the member’s point about…. It lists the types of damages, in the broadest sense, that may be available in a civil claim. The point of this section is just to bring clarity on the law — that these types of damages are available to a victim of the non-consensual disclosure of intimate images. That’s the real goal of listing it out.
M. de Jong: Insofar as the clause contemplates an order for the assessment and an order for damages, depending on…. The quantum of damages being sought determines, not exclusively, but helps determine which decision-maker, to use the language of the act, the claimant must file in. Now, they can always file in the Supreme Court of British Columbia, I take it, but depending on the amount of damages claimed, they may be obliged to file in the Supreme Court of British Columbia. Is that correct?
Hon. N. Sharma: Yes.
M. de Jong: Again, to be clear, contrary to the process that we’ve discussed at some length in clause 5, there’s not the same dedicated attempt…. I don’t mean this in a negative way. These are existing processes, whether it be the CRT or the Provincial Court or the Supreme Court, and by necessity…. The reality is the Supreme Court process is more technical, more complex and doesn’t absolutely require the involvement of counsel, but for many people, it’s a more difficult thing to navigate.
At this stage, at least, aside from the overall attempt through the CRT and others to provide access, there’s no attempt in this clause of this bill to provide an expedited or easier point of entry into the Supreme Court of British Columbia for the collection of damages.
Hon. N. Sharma: Yeah, that’s correct. This is meant to make it clear that the individual in this matter has a claim for damages. The member quite rightly pointed out the level that they may pursue it at, depending on the claim for damages that they seek. That process is as it is for other civil claims.
M. de Jong: Again, a limitation regime applies, triggered by discoverability beyond which a claimant would be precluded from advancing a claim for damages?
Hon. N. Sharma: I think it’s the similar discussion that we had previously. There may be some exceptions to the limitation period that the individual may be able to avail themselves of, continuing harm or discoverability, if it’s still up.
But that’s correct. The limitation periods would apply.
Clause 6 approved.
On clause 7.
M. de Jong: In the case of an application on behalf of a deceased, in general terms, what would the limitation period be for someone seeking to advance a claim? Is it the same…? Well, it wouldn’t be necessarily the same. The person is deceased. What limitation regime would govern an application on behalf of the deceased under section 5, and is it different than…? Well, sorry. I’m trying to lump these questions together to move us along a bit.
For a claim being brought on behalf of a deceased under section 5, what is the applicable limitation period? Is a person precluded from bringing an application on behalf of a deceased person under clause 6 by virtue of other existing law?
Hon. N. Sharma: Section 7 only applies to section 5, so it would only be for the takedown of the image or orders related to that of the deceased individual.
When it comes to claims for damages, I think the member is correct. There’s existing law that talks about the things that are available for people and/or estates that may be pursuing that and limits to what can be done there.
M. de Jong: With respect to clause 5, then, and a takedown order, how long from discoverability does someone acting on behalf of a deceased person have to bring that application generally?
Hon. N. Sharma: Assuming that the impetus for seeking a section 5 order is that the image is still being distributed or is available publicly, then the limitation period for it would continue. You would assume that a continuing harm would apply to that. I would say that with a disclaimer here about the law related to limitations and deceased.
But in terms of the harm done or the limitations period, I think there’d be a potential ability to rely on the continuing harm of the image that’s still up.
Clause 7 approved.
On clause 8.
M. de Jong: I guess the obvious question here…. Given the dialogue we’ve had as it relates to the exposure and vulnerability of younger people and the recognition for some young people, as traumatic as it is to see an intimate image of themselves being distributed and what that means for their peer group, the trauma can extend to what the implications are for family life at home. I take it that the section is intended to provide a regulatory authority that people can initiate action under these provisions at an age younger than they normally would be able to do independently.
I know that the regulation will ultimately appear. But I’m sure that the minister has already received some information and has got something in mind as to what the specific age will be at which an applicant can proceed on their own or with the assistance of someone other than a parent. Is she able to share some thoughts with the committee around what she believes the appropriate age would be?
Hon. N. Sharma: When it comes to a minor at this stage, we intend, if this legislation is passed, to actually have consultation with a lot of the front-line groups and people that are seeing this come up to determine what the appropriate age is. Sometimes what we found is that it’s not necessarily 18. It may be older. It may be younger. We want to actually hear from people before we set that. I don’t have any further information at this point for the member.
M. de Jong: We are talking, though, about an age below the age of majority, because we’re talking about minors here. I guess the interest one would have is how low that number is likely to go. I think we’re all, sadly, aware of the remarkably young age at which young people can be caught and victimized in that way. We have some very direct and pertinent examples of how that tragedy can unfold at a very young age.
The challenge for the minister, though, in setting that age, which I suppose ultimately needs to be a number — whether it’s 17 or 16 or 13, it will ultimately have to be a number — is balancing that notion that I described a few moments ago about the embarrassment that a young person might have about confronting a parent or parents versus the desire that parents would have to know and hopefully offer support and be there.
It’s not the only area of public policy where this conundrum presents itself, where the sins of society visit upon people at a younger and younger age. You want to equip them with the means to seek redress and assistance yet not preclude or exclude parents from being there to play a role.
I expect this legislation is going to pass shortly and may even be in line to receive royal assent, and I’m sure the minister would like to have it up and operational as quickly as possible. So I take it that the consultation is going to be swift, because she’ll want to have the regulations in place quickly.
I guess my submission to her is, in addition to the need to equip young people, to not lose sight of the fact that there are many parents out there who don’t want to be left out, in terms of being able to offer support. To do that, they need to know what’s going on as well.
The last thing on this clause: this provision, as I understand it, applies specifically with respect to applications under clause 5, and the usual rules around age and ability to commence an action apply with respect to clause 6. Is that correct?
Hon. N. Sharma: Thanks for the question. Yes, you’re correct that the regular guardianship rules would apply to claims under section 6.
It’s important to just add a little bit to what I said before: the section 8 provisions are meant to be in addition. So it’s another option, and the member had very important comments about parents and their roles in that. When we think about “a prescribed class” of people that may be able to do this — if it’s an older sibling, or if it’s a teacher or something — I think it’s meant to be somebody that’s close to the person, another option for a minor to come forward with.
Clause 8 approved.
On clause 9.
M. de Jong: Hon. Chair, whenever we are confronted by reverse-onus provisions, it’s worth taking a moment just to understand precisely how they are intended to operate. Here’s my understanding. Rather than ask an open-ended question, I’ll presumptively give the Attorney how I think it operates. If I’m wrong, she can tell me.
It seems to me, having read this and having regard for the definitions, that what is trying to be achieved here is as follows. If an image is an intimate image such that it qualifies under the definition by depicting an individual as “(a) engaging in a sexual act, (b) nude or nearly nude, or (c) exposing the individual’s genital organs, anal region or breasts,” now, except for one other component, we have an intimate image. The other component is “a reasonable expectation of privacy….”
For that final component, the burden shifts to the respondent to demonstrate that there was not a reasonable expectation of privacy. Have I got that right? If we have an image that otherwise qualifies as an intimate image, then the part of that definition for which the burden shifts to the respondent is the part about reasonable expectation of privacy.
Hon. N. Sharma: Yes.
M. de Jong: That’s fine on 9.
Clause 9 approved.
On clause 10.
M. de Jong: We now get into defences available to a respondent. Can I say this? I have been thinking about…. Clause 10 says: “A respondent is not liable under section 5 if….” Then it goes on to describe. We have been talking about clause 5 really in the context of there not being a respondent. Yet the language suggests that at least in some instances, there might be.
Am I misreading? Am I confusing that somehow?
Hon. N. Sharma: Just to go into further detail about how section 5 is laid out, an applicant can choose to name a respondent or not. In that situation, there may be a respondent named, so that would put them….
Another situation where there would be a respondent is…. Let’s say that somebody that’s affected by an order wants to contest it, so they come forward — that’s under section 5, as well — to contest it. Then they’re automatically placed as a respondent in that category. So that captures that, and then you can see how section 10 would apply.
M. de Jong: So consent becomes a really key feature of the ability to proceed with an action and a defence to an action. The act is silent as to the manner in which consent must be given. I take it the intention here is to recognize that consent can be communicated in many ways, and an adjudicator or decision-maker may find that there was a verbal consent, may find that there was passive consent or implied consent.
In this case, I was a little bit surprised that…. Again, to be fair, I don’t think the working group had anything specific to say about this, but I thought that the Attorney might be seeking, in the case of consent, something demonstrative — written or verifiable verbal consent.
It strikes me that what we will see now, eventually, are cases where the respondent says: “Hey, for the following reasons, I thought I had consent.” The Attorney has left it to the courts, and I take it that is a purposeful decision on her and the government’s part to leave it to the courts to decide what constitutes appropriate and reasonable consent.
Hon. N. Sharma: The short answer is yes. We intentionally did not include a definition of consent and that the courts would determine based on the facts.
Clauses 10 and 11 approved.
On clause 12.
M. de Jong: Going back to the beginning of our discussion, the commencement of the clauses in the bill, we talked about how an Internet intermediary, based on the definition, certainly includes the large platforms, the Facebooks and the Twitters. I think we also established that, by virtue of that definition, a website with an interactive chat room could also be captured.
Is the message here that….? Is it intended to establish certainty around the fact that if you are operating a website that includes an interactive platform to which people can post information or images, no matter how big or small you are, you had better make sure that you have a process in place for ensuring that you are not inadvertently contributing to the distribution of intimate images?
Hon. N. Sharma: The purpose of…. This was drawn on advice from the Uniform Law Conference. It talked about the real goal and orientation of this type of legislation, which should be on removing the harm and victim focused.
In that sense, we didn’t want it to be a lightning rod for larger claims to fight out the battles that happen between Internet companies, which can be long and protracted. What this does or says is that if you take reasonable actions, your liability is limited. But if you don’t, then you’re not. That was the purpose of that provision.
M. de Jong: A sound reminder from the Attorney.
I think the point I was trying to explore with the Attorney is…. With these large platforms, who face the challenge of having millions of images posted every day and, for that reason, have constructed and designed these pretty elaborate monitoring…. Not foolproof, I expect. They make these investments because they recognize — in most instances, I hope — that these and similar liability provisions exist.
My question was less about them than the realization…. Look, you can have, on a regional or localized basis, a site that suddenly becomes very popular in a regional area. A website that includes an interactive…. They may not have developed similar monitoring and safeguards.
I think what I was asking of the Attorney General is to confirm that if you fall within the definition of an Internet intermediary…. It doesn’t mean you have to be Facebook or Twitter. It means you have created a platform. It might be to sell your goods or sell your services or social activities or whatever. But if it includes an interactive component to which people can post, you are now an Internet intermediary, for the purpose of this act, and can, therefore, attract liability.
If you want to avoid that liability by availing yourself of the defence available in clause 12, you will need to establish that you have some reasonable level of monitoring. I’m less concerned, in this case, about the larger centres than the fact that, by virtue of the definition of “Internet intermediary,” others may discover that they attract a liability as well.
Hon. N. Sharma: I would start by saying, in the example that the member provides…. If it is a website or some regional Internet intermediary, and they are involved in or implicated in the non-consensual disclosure of intimate images, then, if there is an order for an individual….
I’m sure that’s a scenario. It would come up. Somebody said to them: “You’re distributing my images in a non-consensual way.” Then, absolutely, they need to take individual action for that person to take down those images if there’s an order in that regard.
That would be without any complicated monitoring technology. That would just be a direct takedown, and we would expect them to take reasonable steps to do that.
Clauses 12 to 21 inclusive approved.
On clause 22.
M. de Jong: Way back when we started, we had a preliminary conversation about the interaction between the Criminal Code provisions and what’s being created here. The Attorney provided some initial data around the number of complaints and charges that have been laid and how that has influenced somewhat the development of this.
I presume this is the section that makes clear that that existing process can continue. Charges can be laid. Police can prosecute parallel to the pursuit of a civil claim. That is provided for. The Attorney, I’m sure, will confirm that.
What I wanted to ask was: was the Attorney able to secure any additional information? I think the number she gave at one time was that there had been 22 charges. Have we had any convictions? Has anyone been convicted in British Columbia, under the Criminal Code provisions, for the non-consensual distribution of intimate images?
Hon. N. Sharma: The first comment about the purpose of this is correct.
We do have more data for you. I’ll just read it.
In B.C., there were 50 non-consensual distribution of intimate images charges laid — 47 adults and three youth. That was under the Criminal Code, section 162.1(1). In 2021, the case outcomes for the 37 adult cases were 16 guilty and two not guilty findings, as well as five stays of proceedings and three other. Eleven are not concluded. That’s the extent of the data that I was able to provide.
M. de Jong: It sounds like, along the way, in the last two years, there have been 16 either admissions or findings of guilt with respect to Criminal Code charges under the relevant provisions.
Hon. N. Sharma: That’s correct. In 2021, it was 16 guilty, two not guilty, five stays of proceedings, three other and 11 not concluded. That’s for adults.
Clause 22 approved.
On clause 23.
M. de Jong: I’m going to offer the Attorney…. Well, she always gets the last word in these proceedings. I’m going to invite her to take advantage…. I think this will be the last clause that I pose any questions on.
It’s not an unprecedented clause. It is an unusual one insofar as it dates the effective date back to the date of introduction of this legislation, which means, as the Attorney, I think, pointed out somewhere along the way, maybe in her first reading remarks…. I think in her first reading remarks….
If someone is out there…. We’ll come back to our example. If someone is posting or has posted or is threatening to post, today, an intimate image of that 18-year-old girl and causing her horrendous distress and victimizing her, they’d best not think that somehow these provisions won’t apply until, maybe, moments later, when they, sometime in the future…. I’m sure the Attorney will want to make clear that when this legislation passes, as it will shortly, that anyone that has engaged in that activity since this bill hit the floor of this chamber risks finding themselves on the receiving end of an order.
I’ll leave it at that and thank the Attorney and her staff for their participation and assistance in these committee proceedings.
Hon. N. Sharma: Thanks for giving the opportunity to talk about this. As I said clearly, not only to the public when we introduced this but also throughout our communications on this, we want to start now by deterring all of those would-be distributors of non-consensual intimate images that this legislation is designed to put them on notice that as of the day of first reading they could be liable for the orders and the remedies under this piece of legislation.
We want the victims of this type of sexualized violence to know that we are doing everything we can in our justice system to make sure that they have the remedies and tools they need to stop the harm from this type of behaviour.
With that, I just want to thank the member for the questions and the team here that were with me today.
Clauses 23 to 31 inclusive approved.
Title approved.
Hon. N. Sharma: I move that the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 4:44 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 12 — INTIMATE IMAGES
PROTECTION
ACT
Bill 12, Intimate Images Protection Act, reported complete without amendment, read a third time and passed.
Hon. M. Farnworth: I call Committee of the Whole, Bill 17, Family Law Amendment Act, 2023.
Committee of the Whole House
BILL 17 — FAMILY LAW
AMENDMENT ACT,
2023
The House in Committee of the Whole (Section B) on Bill 17; S. Chandra Herbert in the chair.
The committee met at 4:47 p.m.
The Chair: We will take a short recess as we prepare for the correct staff to be in place.
The committee recessed from 4:47 p.m. to 4:52 p.m.
[S. Chandra Herbert in the chair.]
On clause 1.
The Chair: All right. Thank you, Members. I’d like to get started with the short time we have here.
We’re looking at Bill 17, the Family Law Amendment Act, 2023.
Hon. N. Sharma: I’d love to just introduce the team that I have here with me that will be supporting me. We have Darryl Hrenyk, legal counsel, and Aurora Beraldin, legal counsel.
M. de Jong: So three components of this legislation as it relates to the division of family assets. This is the first one, which touches upon pets and how pets are dealt with and creates the defined term “companion animal,” which, according to the definition, is an animal that is primarily for companionship.
I’ll probably deal with clauses 1 and 2 together, since they both kind of relate to the same thing — a companion animal. And then, in clause 2, we’re told what a companion animal doesn’t include. It doesn’t include a guide or service dog, an animal that is kept as part of a business or an animal that is kept for agricultural purposes.
I suppose it’s possible for us, since we’re going down this road and defining this, to think of circumstances where an animal might fulfil both purposes. By definition, this would be for families residing in more rural settings.
Hard to imagine someone in downtown Vancouver having an animal that fulfils, at their home, an agricultural purpose, although I suppose they have chickens now in the West End, as the Chair reminds me.
There were two kinds of animals, two examples, which readily came to mind for me, where there might be a crossover. One is a herder dog, which is obviously there, in part, for an agricultural purpose but, in most cases, becomes a pretty closely aligned member of the family and a companion.
Well, I’ll give you both examples. We’re going to move along here to other matters shortly. In certain parts of British Columbia, you may have situations where families have horses which fulfil more than just an agricultural purpose. They become pretty intimate members of the family circle as well.
Those are two examples — and there are probably others — where you can think of a situation where there would be a crossover. How does the definition operate — or does it? — to address situations where an animal is there for an agricultural purpose but is very much a family pet?
Hon. N. Sharma: The key part of this definition, which I want to draw everyone’s attention to, is the word “primarily.” So “primarily for the purpose of companionship.”
If a party in a dissolution of a marriage wants to bring forward a claim that the herder dog or the horses, which the member mentioned as examples, are primarily for the purposes of companionship, they could bring that claim and seek an order from a judge that that should be captured. Then maybe there would be…. If there was opposition to that finding, then it would be up to that person to claim other categories.
I will also note that if an animal is considered to be for an agricultural purpose, then the regular property division, I guess, would apply. You wouldn’t seek an order for it, but there would be a division. That would be considered agricultural property and has a value when it comes to that.
H. Sandhu: May I seek leave to make an introduction, please.
Leave granted.
Introductions by Members
H. Sandhu: I have some very special guests in the gallery here, joining us for the first time: my maternal uncle Nashan Singh Khosa, my auntie Amerjit Kaur Khosa and my sister-in-law Ravinderjit Kaur Khosa. Adage Khosa is my nephew. Along with them is family friend Vikramjit Singh.
My uncle had a stroke while driving in his car and ended up in a ditch a few years ago. He had, four times, a near-death experience. So for me, having the ability to introduce him is an amazing feeling. We thought we lost him. He ended up with many deficits, losing speech and mobility, but he’s still full of life. His entire life was dedicated to social work and helping marginalized people. He played a big role, after my dad passed away, in our lives.
Would the House please give them a warm welcome and make them feel very welcome here in the House.
Hon. N. Sharma: I move that the committee rise, report progress and seek leave to sit again.
Motion approved.
The committee rose at 5 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of the Whole (Section B), having reported progress, was granted leave to sit again.
Committee of Supply (Section C), having reported progress, was granted leave to sit again.
Mr. Speaker: The House will be in recess for five minutes.
The House recessed from 5:01 p.m. to 5:05 p.m.
[Mr. Speaker in the chair.]
Mr. Speaker: I’ll call the House back to order.
Committee of the Whole (Section A), having reported progress, was granted leave to sit again.
Mr. Speaker: Members, Her Honour is in the precinct. Please remain seated while we wait for her to come here.
Her Honour the Lieutenant-Governor requested to attend the House, was admitted to the chamber and took her seat on the throne.
Royal Assent to Bills
Law Clerk:
Intimate Images Protection Act
Miscellaneous Statutes (Modernization) Amendment Act, 2023
Vital Statistics Amendment Act, 2023
In His Majesty’s name, Her Honour the Lieutenant-Governor doth assent to these acts.
Supply Act (No. 1), 2023
In His Majesty’s name, Her Honour the Lieutenant-Governor doth thank His Majesty’s loyal subjects, accepts their benevolence and assents to this act.
Hon. J. Austin (Lieutenant-Governor): Thank you very much.
ÍY SȻÁĆEL NE SĆÁLEĆE. As always, it’s great to see you and to join you today.
I understand you’ve had an extremely busy week, and another busy week next week. But I do hope you’ll have time to enjoy some time with family and friends over the Easter break.
One thing that the pandemic has taught me is how important it is to express the appreciation that you feel for others without delay and without reserve. As always, I want to thank you for your truly splendid work and to wish you all the very best always.
HÍSW̱ḴE SIÁM.
Her Honour the Lieutenant-Governor retired from the chamber.
[Mr. Speaker in the chair.]
Hon. R. Kahlon: I move that notwithstanding Standing Order 2, when the House next adjourns, it stands adjourned until 10 a.m., Monday, April 3, 2023.
Motion approved.
Hon. R. Kahlon moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m., Monday, April 3.
The House adjourned at 5:17 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF FORESTS
(continued)
The House in Committee of Supply (Section A); R. Leonard in the chair.
The committee met at 1:04 p.m.
The Chair: I call Committee of Supply, Section A, to order. We are meeting today to continue the consideration of the estimates of the Ministry of Forests.
On Vote 30: ministry operations, $483,568,000 (continued).
Hon. B. Ralston: When we left off, the member had posed a question. He attributed a quote to the immediately past Premier. We haven’t been able to locate that. I can say that he will be in Victoria this evening at a fundraising event, and if the member wanted to come and question him directly, he’d be welcome to attend.
The business cycle for the forest industry has not been rescinded. I think there are some new elements in what has taken place in recent years — certainly the effect of wildfires, particularly in the Interior, and the effect of the pine beetle epidemic. These are well known but have been particularly acute in continuing in recent years.
I’m not quite sure what the member was looking for in his question. But I think that’s contrasting it to a statement that, as far as we know, is hard to verify. That’s the best we can do.
M. Bernier: The minister has been around here long enough to know that there’s been lots of discussion on the commentary of the former Premier, on his verbal support for the forestry sector, by saying that no mills would be shut down under an NDP government. I do find it interesting that this minister isn’t aware of his own commitments that his government makes.
But I’ll leave that to the side for now because I think it’s really important to talk about the fact that there are huge pressures right now in the forestry sector, and they’re not just because of markets. There are a lot of attributing factors. Absolutely, there are. But let me just read into the record some that I found here. I’ll let the minister go afterwards and find the actual quotes of what the former Premier said on the supports for forestry. If he wants to back that off and say no, they were completely planning on closures, then he can maybe say that instead.
I look at some companies, like West Fraser. These are public comments. These are not anything that I’m sharing out of school or anything like that. West Fraser said: “Government policy decisions have impacted the amount of available fibre in this province.”
Skeena Sawmills: “The adjustments to government’s policies lately have put pressures on permitting and fibre access.”
Aspen Planers: “We’ve gotten into a situation now, under this government, where we’ve run out of logs because we have not had any cutting permits approved by this government.”
Conifex: “B.C. Ministry of Forests’ policies and practices,” under this government, “which position sawmills in the B.C. Interior region at the high end of the industry cost curve” are non-affordable.
I mean, there’s a common thread here that we are hearing from companies around the province. Now, not all of those are prime areas, but pretty close when we talk about the pressures that we’re seeing on the landscape. We’ll get into some of those pressures in a little bit when we talk about old growth and some of the objectives that we want to try to understand of this government.
I guess my question to the minister…. I’ve read these quotes. We’re hearing about the pressures. I know he wants to talk about cost pressures and things out of government’s control. But what we’re hearing from a lot of companies is it’s actually a lot to do with government policy, lack of clarity when it comes to the direction of this government or the uncertainty that’s being created by policy that doesn’t really have enough descriptive to it where companies know what direction this government is going to go.
In light of the fact that I did put here that the former Premier said no mills were closed, this minister is trying to say, I guess, that they can’t find that quote, which means there was planning, maybe, for all these mills to close. I’m not sure where the minister wanted to go with that one, where his thought process was. How many more mills do we plan on seeing closed in the 2023 calendar year, with the estimation of how many jobs will be lost?
Hon. B. Ralston: I think it’s important to put some of the member’s assertions into context.
West Fraser. Their company adjusted earnings before interest, taxes, depreciation and amortization in 2022 were…. They made $3.131 billion. They had a good year last year. The other companies: Interfor made over $1 billion, $1.059 billion; Canfor made $1.512 billion. That was in the context of the timber prices that we discussed, very profitable.
For the longer-term context, there was a report done by a legislative committee about ten years ago — I don’t know whether the member served on it; I can’t recall — that talked about the emerging crisis in the Interior in the mid-term timber supply. That was predicted and foreseen, as long ago as that — and, probably, before that as well. That did confirm, through a parliamentary committee, the challenge that we have now encountered.
Companies are aware of that and are making their plans based on that kind of forward knowledge. To say that we, referring to the government, are going to close mills, I think, is an unfair and inaccurate attribution.
I do want to talk a little bit about some of the other companies that have been referred to. Skeena Sawmills, out of Terrace — I just had a meeting with them, coincidentally, this morning, and we’re aware of their challenges. They set that out, and we’re working with them to bring some positive news in Terrace. Their challenge is not timber supply, particularly.
On Aspen Planers, there has been a series of events in that timber supply region. In the Merritt timber supply region, the annual allowable cut decreased from 1.5 million cubic metres a year to 1.2, and an apportionment decision is currently underway. The cumulative effects — I mean, there has been mountain pine beetle, and there have been catastrophic wildfires — have added significant complexity to the operations.
Aspen Planers. I would say the member’s note or information is a little outdated. They were recently the successful bidder on a large B.C. Timber Sales bid in the Kamloops business area for 43,784 cubic metres. In addition, 209,763 cubic metres in cutting permits were approved at the beginning of March. They’ve since been successful on two more B.C. Timber supply bids, giving them more fibre certainty.
I know there have been challenges there. I think the member knows something about that, but the ministry, the community and the Indigenous nations who are participants are working their way through that challenge. I think we’re beginning to see the other side of that challenge.
M. Bernier: I did read into the records some specific quotes from companies who are obviously frustrated, because they’re worried about the future of their mills and their employees, which means the futures of communities. I’ll get to some of the specifics in some of these communities in a moment.
I want to go back. I can’t let the minister off the hook that easily on some of his commentary. When the minister is talking about the collective earnings of different conglomerates, different companies, he conveniently picked national companies that, yes, publicly reported earnings, profits, last year.
He conveniently left out how those profits would be divided up through territorial aspects — British Columbia, for one. When we talk to these companies, they’re attributing some of their mill closures and the lack of investment in British Columbia…. Yes, they’re making money, but they’re making it in other jurisdictions.
The cost pressures in British Columbia…. We’re one of the highest-cost jurisdictions in North America in this sector. Yes, a company might have made eight-figure or nine-figure dollar amounts more in profits, but not in British Columbia.
Does the minister want, maybe, to correct me on that? Is he telling me…? For the numbers that he just put on the record, the billions of dollars of profits, was it in British Columbia where they made that revenue?
Hon. B. Ralston: As the member has pointed out, that’s a global number. But those companies did well on their B.C. operations because of the prices that we talked about in 2021 and 2022. I put the numbers, the hard numbers, into the record previously. I think that’s undeniable. They did very, very well in British Columbia as well.
M. Bernier: We can debate the profits of these primary companies, which is not a good use of time, but it is important to highlight and reflect on the fact that the majority of these profits in these companies are made outside of British Columbia. That’s public knowledge, when you look at the documentation that these companies release.
Also, everybody is very much aware of the fact that British Columbia is the highest-cost jurisdiction. When you look at some of the announcements that these companies, different companies, are making — and I’m speaking mostly to your large primaries that are your national companies — they continue to talk about investments that they’re making as companies, but they’re not in British Columbia, the majority of them.
These large investments that they’re making are on the east coast, a lot in the United States. They’re diversifying their portfolios. They already were, but some of these companies, over the last five, seven or ten years, have been starting to buy companies and operations in other parts of North America. That’s where they’re putting their investments now.
We’re not seeing it just in forestry. As the former Minister of Energy and Mines, this new Minister of Forests is well aware of the cost pressures that British Columbia faces when it comes to our resource sector and the fact that boards, when making investment decisions, look at that.
I’m trying to figure out, when this government talks about the future of forestry in British Columbia and they’re trying to be positive about it…. But I’ll canvass a little later about what they’re actually going to do about it. Words are one thing. Policy decisions to actually give certainty to lower cost pressures are another.
In the last five years in the province of British Columbia, we’ve lost almost 14,000 direct jobs, that I can find, in the forestry sector. That’s 14,000 more than this government, I think, said that we would lose.
My question to the minister was not how many more mills this minister is going to close. But I was highlighting the pressures, through government policy, that are attributing partly to some of the decisions that companies have to make in the province of British Columbia.
To the minister’s knowledge, through his discussions, how many more mills does he think may close this year, and how many more jobs will be lost?
Hon. B. Ralston: The member’s question invites me, I think, to speculate about the decisions that might be made by corporate boards in the future. I think one thing, though, I would say is that people recognize, especially in the Interior, that the annual allowable cut is predicted to decline. That will have consequences. That’s a statutory decision that’s made by the chief forester based on forest science. But the companies know that, communities know that, and that will be a factor, going forward.
When the member’s party was in power over 16 years, there was a loss of nearly 30,000 jobs, and dozens and dozens of mills closed. So the idea of trying to attribute all of this to policy decisions made by this government, I think doesn’t ring true at all.
For example, I toured Brink Forest Products. John Brink, I think, is a well-known legend in B.C. He wrote a book where he said that the Campbell Liberals were absolutely devastating to the secondary manufacturing sector. I can bring the exact quote forward from his book, should you wish. That’s what he said, and he’s a person who is very committed to the value-added sector. Just “absolutely devastating” is what he said about the policy of the B.C. Liberals to the secondary manufacturing sector.
What we are doing…. Some of the policy initiatives are to initiate forest landscape plans, which are a different way of planning. Previously the companies would submit a plan for harvesting or logging to the ministry and have it approved or not, and within that plan, there was relatively little flexibility once it was approved. The forest landscape plan process involves communities, it involves First Nations, it involves companies, and it involves labour. The view is, the effort is to have a process where there’s consensus achieved and certainty; community support in communities, this community stability; and to build the social licence for logging operations and harvesting in the long run.
Those are the steps that we’re taking, and those initiatives are being well received. In the current budget, there are four experimental ones. There’s a number that we have funded that will expand that process throughout the province.
I’m a little bit disappointed that the member is so negative on the British Columbia forest industry, that he’s so down about it, that he’s predicting an apocalypse, I guess, in the forest industry here. I’m optimistic about the future of the forest industry here, and I’d invite him to share a more optimistic and, I think, realistic view of the future of forestry in British Columbia.
M. Bernier: I now see where this might go this afternoon.
I think it’s fair to say that at no time have I disparaged the forestry sector. In fact, I want to see a strong, thriving forestry sector in British Columbia. What I’m trying to highlight right now is the uncertainty that’s coming, under this government — through policy direction; through lack of leadership; through lack of, maybe I would argue, understanding of the sector and the impacts that the sector is going through.
Do I want to see a thriving, prosperous forest sector? Absolutely, which is why I’m asking these questions of government, because I don’t see that happening under the NDP.
I look at the fact that this province was built on the forestry sector as being one of the first and most primary sectors. Are things going to change? Absolutely. I think the minister and I can agree on that. But I’m watching a very, almost focused, managed decline under the present government, rather than the optimism that this minister speaks of, which will assure certainty that companies will want to invest in the province of British Columbia.
Now, we are seeing mills shutting down and curtailing all over the province right now. The minister can try to say he’s upset with my comments that I’m bringing forward. That’s unfortunate, because the comments I brought forward were direct public quotes from companies. So maybe he wants to reach back out to them and say he’s disappointed in these companies, because those were not my quotes. Those were not my comments that I made here. Those were ones that I found that are direct public comments from companies.
So if we’re going to play that game, it’s unfortunate that this minister is disappointed that these companies are even investing in British Columbia, because that sounds like the tone that he wants to take.
Before I digress much further, we’ll try to civilize this a little bit. There are mills right now that are shut down. There are communities that are being negatively compromised and affected. It has happened for many years, for different reasons. And I know that there were parts of rural British Columbia, through the pine beetle epidemic, where there was modernization and amalgamation of sites to ensure that companies could stay viable, that people could stay employed.
But we are seeing now, curtailments aside for a moment, permanent closures on the dimension lumber side and pulp and paper around the province. The minister is well aware since he became minister: Canfor permanent in Taylor, pulp and paper; the Canfor mill in Chetwynd; Houston; Prince George. The list goes on.
Skeena Sawmills. It’s great to hear that the minister met with them this morning. I’ve had the privilege of touring that facility a few times now. An amazing facility that, I would argue, has huge potential, not only in the past but in the future, to stay open, provided they can be given some kind of certainty around fibre supply and how the systems will work for them to stay in operation. That’s 150 direct jobs just in Skeena Sawmills alone.
I’m hoping when the minister met with them this morning…. I haven’t had the privilege of meeting with them yet in the last few days. If they’re here in the precinct, I’m hoping that he gave them some assurance that government is actually going to look at their concerns and make immediate policy decisions — permitting decisions — that will allow them to operate and keep those 150 people off of the unemployment line.
Let’s go to those who are affected, for a moment. I did read in some of the ones that the minister is well aware of. I know I have a letter from Chetwynd, as I have received letters from others, too, that are very direct and heartfelt in their response to me on the burden that this is going to put on communities.
I’m not asking the minister whether he agrees or disagrees, because I think we can both agree that when a mill shuts down, especially in some of these small communities, like Taylor, Houston, Prince George, Terrace, Chetwynd, that it has an effect on the employees and the communities. So in the immediate short term — and this, I know, will be a very easy question and answer for the minister — what is the ministry, and the other ministries: Minister of Jobs, and others, the Minister of Labour…?
What are they collectively doing to ensure that their supports are on the ground right now to support the families and the workers in these communities, who are being devastated with their job losses, to ensure that they have the supports to transition through this difficult time?
Hon. B. Ralston: I want to talk about several of the companies that have been mentioned by the member. Just to return to Skeena, as I said, we met this morning with the representatives of the company, some in person and some by conference call.
The issues there, I understand, are not primarily fibre supply, although that’s always a consideration given that that’s the raw material that mills need to run. But there are other issues. The deputy and other senior officials were in that meeting, and they are working, with my support, to solve the issue. I’m optimistic that we can solve the issue, and that might well lead to some good news in Terrace, in the near term.
In terms of the issues at Houston, the ministry and I have been party to meetings where I think it’s clear and it’s public that Canfor is considering a new investment in a new mill in Houston. That decision…. They need to confirm and get some assurances about fibre supply in the Morice timber supply area, but they are working on that issue. We’re expecting, according to their internal corporate timetable, a decision before the summer. Once again, that’s their decision, but we’re doing our best to make that decision one that they will view positively, and I’m optimistic that that will be done.
In terms of Chetwynd…. Of course, that’s in the member’s riding, I understand. I have a copy of the letter that was addressed to him. It was copied to my office. The mayor and the chief administrative officer, in their letter, do have a number of suggestions in the second-final-but-one paragraph. We’ll consider those suggestions.
I would say, though, that in general terms, representatives and staff from the Forestry Ministry and from the Jobs Ministry are on the ground. There is a series of programs, which I’ll enumerate, which are available in these circumstances. We’re working with the town, with the union. I’ve met both with the Steelworkers, in the case of Chetwynd, and Unifor with respect to their views on support for workers. They are important movements and institutions in our province and have real connections with workers and their families, so that’s part of the reason why we work with them as well.
Just to give the member a flavour of the forest support programs, there are…. Let me just run through these fairly quickly. The forest employment program creates short-term employment to help forest and land-based contractors explore new work. It’s an internally administered program. The individual projects are funded, are led on the ground, by staff through regional operations who manage individual contracts. It creates short-term employment opportunities in areas acutely affected to reduce the impact of job losses on communities.
The rural business and community recovery initiative hires advisers to help create jobs and support rural businesses and communities in hard-hit areas. This program in Chetwynd region would be administered by the Northern Development Trust, but the Economic Trust of the Southern Interior and the Island Coastal Economic Trust are also involved.
Enhanced community transition services. These ensure that supports are in place for workers and communities after a community transition event.
The rural economic and diversification infrastructure program. That’s a new grant administered by the Ministry of Jobs, and I would invite the member to pursue these issues with the Minister of Jobs in her estimates. That’s to promote economic diversification, clean growth and infrastructure development.
The other part of the funding is bridging to retirement, which offers forestry workers 55 and older, up to 75, $1,000 to help transition to retirement. Then there’s skills training for job pathways. It connects affected workers in communities with skills training and opportunities. So there is a range of programs. Those are all available and being deployed where it’s appropriate in these circumstances.
I would say, though, that notwithstanding the existence of these programs and their operation, the long-term goal is not to put communities in this position. The long-term goal is to create long-term, sustainable, prosperous forestry operations in communities that employ people long term. That’s the ultimate goal. So these kinds of programs, while they are necessary at times like this, are not the norm in the long run.
M. Bernier: I don’t want to just pick on one community over another, because obviously, in all of the communities that are going through job losses right now, the impact is the same in a lot of ways, when you talk about the workers and the families. I would even add the companies in there, because the last thing a company wants to do…. Coming from that private sector as a large company myself and being a manager for one, the last thing you want to do is make the tough decision to shut down, amalgamate, lay off people, whatever the situation might be.
I would never say and accuse this minister or the government that they enjoy seeing these job losses, because I don’t think that is an accurate or fair statement — but to ensure that when the unfortunate situation, as the minister is saying, happens, the supports are there.
I’m aware of those supports. I won’t canvass another ministry. But I just thought it was important that I gave the minister the opportunity to put it on the record, because we want to ensure that when this happens again, we don’t just talk about it — that it’s seen on the ground.
I am hearing, in a few of the communities, that there is, and understandably so, a lot of pressure and angst, stress coming from families that they don’t feel they’re getting the supports they need. I only flag that just for the minister to take back within his ministry and in his government to be receptive to those pressures that people are facing right now. I think that we can all appreciate it’s not something anybody wants to see happen.
I will only flag again, as I said at the onset of this, not to pick on one community…. I appreciate the minister saying he has a copy of the letter. I assume it’s the same letter that I have.
Obviously, in Chetwynd, there are unique circumstances, like many other communities have, because they do have a government-imposed industrial tax limit on the satellite boundaries that they have around some of the mills. That’s been a challenge for them for quite a few years. I know they have talked with the Ministry of Forests and the Ministry of Finance on this. I only ask the minister to consider that with his colleagues, to communicate with the mayor and the CAO in Chetwynd to see if there’s an opportunity to revisit that.
Unlike most communities, where the mayor and council that get elected get to choose a tax rate that they feel is workable, appropriate and, hopefully, affordable for everybody, in this case, Chetwynd has a satellite government-imposed tax rate, mill rate, that they can charge. If I remember, it was $18. Maybe that was a few years ago, when I was mayor. Anyway, I just want to flag that.
Can the minister at least, before I put this one aside, confirm for me that they will reach out to this community and just look for options to try to assist them on this issue?
Hon. B. Ralston: Just on the letter, it hadn’t occurred to me that I would receive a non-duplicate copy, that there would be two versions of it or anything like that. I understand that this came to the ministry through the district office.
I can table it, if the member wants to compare line by line and ascertain that we’re speaking about the same letter. I assume so, but given his comments, I wouldn’t want to continue in that assumption. If he feels more comfortable…. Or I can give him a copy of the letter after we conclude the proceedings.
On the issue of the arbitrary satellite industry tax cap, which is referred to here, that’s an issue that I am not familiar with. It would appear to be a Finance issue. So that’s something that we’ll take up with them, the Ministry of Finance. Again, I would invite the member to address that question to the Minister of Finance in her estimates. Having said that, I will also undertake to make those inquiries myself, and my staff on my behalf, about what that might be and then reach out to the mayor and the chief administrative officer to get their views on this particular tax.
D. Ashton: To the minister and staff, thank you for the opportunity.
Two quick questions. Is there any working relationship between Environment and your ministry, sir, about cutting within watersheds? It’s not on the ecological issue; it’s on the issue of the freshet. We are all faced with climate change taking place, but, specifically where I come from, we’ve had ongoing occurrences of the freshet not being held within the forests at current rates that it used to be held.
We experience very quick freshets and a very quick decline. The lake levels aren’t able to be balanced in time, and it’s causing adverse flooding conditions for those around the lake and any in the lowlands where the groundwater is being charged. It’s causing issues around foundations, moving and sinking of structures and, actually, rising of structures when the freshet is in place.
Hon. B. Ralston: Thank you for what is an interesting question and an environmental management challenge. In addition to forest harvesting, any disturbance that results in the loss of vegetation cover can contribute to the increased risk of flooding, including wildfire, insect attack and other catastrophic events. I think that’s the member’s point.
So one of the ways in which this is tackled is by reducing clearcut methods. Today area harvested by clearcut — that is, no reserves — represents less than 10 percent of harvest area. The use of alternative silviculture systems, such as clearcut with reserves and variable retention harvesting, has been steadily increasing since the early 2000s. These alternative harvest methods retain trees and other vegetation within cutblocks in clumps or as individual stems. Forest professionals use a variety of methods to reduce the risk of flooding and landslides.
I understand the very legitimate concern that the member has expressed, including avoiding harvest and roadbuilding on areas identified with unstable slopes, establishing no-harvest zones within cutblocks adjacent to creeks, retaining trees within cutblocks and prompt reforestation following the harvest.
I’m going to talk a little bit about a recent change to the Forest and Range Practices Act. One of the most impactful ways to address flooding risk and manage the cumulative effects of timber harvesting is planning at the landscape level. With the recent changes to the Forest and Range Practices Act, including the introduction of the new forest landscape planning regime, this will improve how the forests are managed to reduce the impacts commonly associated with increased flooding risks.
I’m also told that the river forecast centre, which is the government agency within the ministry that forecasts the flood levels…. Those changes in the landscape are factored into the calculation of what the flood level is likely to be. So that’s accounted for, scientifically, in calculating the ultimate prediction. It is a prediction but usually a pretty accurate prediction.
D. Ashton: Minister, thank you, and thank you to the staff for the answer. Greatly appreciated.
Just to jump over real quick to forest fires. We’ve all witnessed the devastation that takes place. I come from an area that is challenged on a continual basis. But with some associates that I know and know very well, there are other techniques that are available to fight forest fires.
I need to be frank, Minister. There is more than a perception that forest fires are managed these days. I come from an era where with forest fires, everything was thrown at them, except the kitchen sink, to put them out.
There are companies available to fight fires at night specifically with helicopters. A perfect example was in Penticton two years ago, where we had a fire just above the Penticton Indian Band lands. At that point in time, it was Topflight helicopters that have the capacity for night vision. Their pilots are trained on it, and exclusively trained. As a matter of fact, they train U.S. military people with night flight. There’s also another company that I know about that has that expertise.
So, Minister, through yourself and to staff, could these individuals be contacted and possibly — I won’t say possibly — be utilized where practical so that we continue to fight these fires 24 hours a day instead of falling into a regime where it seems to be dawn to dusk? Thank you, Minister, and thank you to your staff.
Hon. B. Ralston: I thank the member for the question. Interesting area to explore with the senior staff who was here to help me.
To the member’s point about initial attack, in 2022, 89 percent of the initial attack was successful in extinguishing fires, with only 11 percent of those fires exceeding five acres continuing after an initial attack. So that’s a strong demonstration of an effective initial attack response by fire crews, aircraft and heavy equipment. So I think that’s the point that the member wants to explore.
There are circumstances where, in working in collaboration with a First Nation, for example, their view may be that for a certain area, they do not support initial attack. They would prefer to see — for ecological reasons, for wildlife reasons — a certain area be burned in a controlled way for different values other than initial attack success. So I would just qualify that answer with that comment.
In terms of the techniques and the night attacks, the Wildfire Service is exploring new tools and technology, including the use of night vision goggles, remote piloted aircraft systems — I think, simply put, that’s a drone — and what they call helicopter extraction cargo rescue platforms. Those are methods by which key staff can be got in and out of situations. And there are night operations that involve people as well. It’s not simply remote operations, machine operations. There are occasions when there are night operations that involve firefighting staff.
M. Bernier: I just want to thank the minister’s staff. We’ll try to do our best, where possible, to try to stay on a specific theme when we can. There will be the odd deviation, and appreciate the opportunity for staff to get up and stretch their legs and move around. I thank them for their understanding with that.
I just want to go back for a moment. When we were talking about closures, a lot of the ones that I referenced were dimensional lumber mills, but there is, obviously, the pulp and paper sector that is being hit quite drastically, in some ways, here in the province of British Columbia as well. And the minister can correct me if he thinks my facts are wrong, because unlike the minister, this is my staff that helped me today, behind me, that I didn’t have a chance to introduce.
One of the things that I’ve noticed here, and talking to people, as well, is that one of the biggest competitors to British Columbia is European mills in the pulp and paper sector. And there’s a $100-per-tonne cost disadvantage in a comparison to the price between British Columbia and European mills. Can the minister explain why there’d be $100 price per tonne cost disadvantage to operate in British Columbia?
Hon. B. Ralston: Thanks very much for the question about the B.C. pulp industry.
The B.C. pulp industry does have a number of competitive advantages. For example, simply the geographic position of British Columbia and its access to Asian markets, where a lot of pulp is sold, in the Asia-Pacific. The quality of B.C. pulp is internationally recognized. The strength of the fibres in B.C. pulp is well known.
I would say, just to…. The figure that the member advances is not one…. I’m not sure of the source of that. Maybe if the member wanted to share that, it would be helpful. Staff have not heard of that. It would be, I think, a little bit speculative for me to comment on a figure that I am not sure of the source of, what part of the sector it refers to, at what time, what parts of Europe it might refer to.
Europe is…. I mean, the EU is a big place. Obviously, a lot of the forestry is done in northern Europe but not exclusively. So I think it would be speculative for me to enter into that debate.
I would say, also…. The B.C. pulp and paper sector is a part of the forest supply chain. Sawmills rely on pulp firms buying wood chips to maintain their operations and the operation of pulp mills. The family-supporting jobs of unionized workers help stabilize the economies of many rural communities.
There is a pulp task force that has been convened and that the ministry is working with. The idea…. One of the transformation strategies is for the pulp sector to increase the use of residual fibre from logging to manufacture products designed to replace single-use plastic.
That’s something that the pulp fibre supply task force has done. In fact, there was a recent announcement and investment at Crofton — investment by the federal government, investment by the provincial government and investment by Paper Excellence — to make that conversion and to support new product lines which aim at replacing plastic products with paper products. There’s, obviously, a growing demand for that.
The pulp sector is important. The challenges that it’s facing are being confronted by the ministry, working with pulp companies in the pulp fibre supply task force. Again, we’re working through some of the challenges and coming up with solutions.
M. Bernier: I’ll start, make this one…. Has the minister met with the pulp and paper sector, the coalition that oversees this group?
He asked where I get my numbers from. Pretty easy. I kind of went to their website and downloaded a whole bunch of the information of what works and what doesn’t work for the industry and some of the pressures they’re under.
I’m just curious if the minister has had a chance to meet with him yet to get this information.
Hon. B. Ralston: The B.C. Pulp and Paper Coalition is co-chaired by Joe Nemeth, who is the project manager of the coalition, and Assistant Deputy Minister Melissa Sanderson, who is seated here before you. They co-chair that. I have been briefed by her in the initial entry into this job.
I’ve also met with Kruger. As the member will know, Kruger bought the Kamloops pulp mill. They’re pleased with that acquisition.
I met with their senior management team. They were all out in British Columbia. They’re excited to be part of the forest industry in British Columbia. They made an initial investment, a major investment, and they’re looking forward to working here in British Columbia and continuing bringing the strength of their company and their financial support to that particular pulp mill.
I’ve met with Canfor Pulp, obviously, rising out of the announcement out of Prince George — some of their transition and, generally, their overview of their role as a company in the pulp sector here in British Columbia. I met with West Fraser, as well, in their role in the pulp sector as well. So I think there’s a good understanding, a solid understanding, of the challenges.
One of the recent announcements that was made was to support the pulp sector by renewing the Forest Enhancement Society of B.C. funding by $50 million, over two years, to utilize 2.2 million cubic metres of what’s considered uneconomic low-value or residual fibre, including fire-damaged wood, so that that non-traditional source can be factored in as a source of fibre to help ease the fibre pressures of pulp mills in British Columbia.
M. Bernier: Thank you to the minister. Kruger investing here — obviously, we want to see that happen. That’s good to see. But we have to look at the other concerns.
The minister mentioned some of the other companies he met with. When you look at some of the information that is out there, since 2017, there has been over $2 billion invested in the pulp and paper sector. Aside from a few little spatters here and there, the majority that $2 billion has been spent and invested outside of British Columbia, when we look at these companies that the minister referenced.
While we’re seeing $2 billion worth of investment outside, in other jurisdictions, not in British Columbia, we’re being hit even further, I guess, by these sectors closing down in British Columbia in many of the different communities. The minister highlighted some of the companies he’s met with that have had to make the difficult decisions of closing down facilities here in British Columbia, laying off hundreds and hundreds of people.
Can the minister help explain, then, to me…? If we’ve got $2 billion being invested outside of British Columbia, obviously the sector is strong. Pulp prices, when I look at them, are higher than I’ve seen in years. So we can’t attribute the lack of investment or the closures in British Columbia to pulp prices, which are very healthy right now, from what I can see, knowing that they fluctuate as well.
Can the minister explain why all these companies are leaving British Columbia, for the most part, and investing in other jurisdictions rather than here?
Hon. B. Ralston: Let me just respond with a few general comments about the joint coalition chaired by Mr. Nemeth and ADM Melissa Sanderson. What the industry says there, through their representative Mr. Nemeth, is that they want to invest in British Columbia, but it’s important to stabilize the fibre supply.
Some of the solutions that have been provided, based on that discussion, are a fibre supply recovery program, which is operating on the coast. Traditionally, forest residuals that were viewed as not economic to take out of the bush are…. There’s an incentive to take those out and use those as supply for the pulp industry.
Once those issues are stabilized…. There is a challenge at a time when timber prices are low, because they depend on residuals, sawdust and other things from the sawmills to provide the raw material for their business.
The long-term future, according to the ministry’s discussions with Mr. Nemeth, is positive.
Kruger is a good example. Just check the dollar value. It was reported at being $300 million as an investment. Having met with them, the tone of the meeting was a very positive one.
They see themselves as being in British Columbia for the long term. They’re very enthusiastic about the investment they’ve made and about the conditions that exist here in British Columbia. They’re working with First Nations to secure fibre supply in the long run, and they’re optimistic about the outcome of those discussions. They have a plant in New Westminster as well. They’re optimistic about the future of their industry here in British Columbia.
M. Bernier: Thank you. Depending on who you talk to, obviously, in the sector, there is some cautious optimism out there depending, though, on government policy decisions. The minister alluded to earlier, after lunch, that the government is forecasting, and knows, there’s going to be a decline in the annual allowable cut.
The investments that the minister is talking about with Kruger, I think it’s important to stress that these aren’t…. Yes, it was an investment in a purchase, but this isn’t a new mill. It wasn’t growth in the sector. It was a change of companies. It wasn’t growth per se.
We are hearing, I’m sure — through the minister, when he talks about Mr. Nemeth and his staff with the coalition — that there is discussion out there that there’s the opportunity in British Columbia for about a $3 billion investment in the pulp and paper sector.
But as the minister himself rightfully said, most of these companies in this sector, no different than in dimension lumber and others, are not going to be making investments in British Columbia unless they know there’s some kind of certainty to access timber supply and fibre on the land base. I think that’s a given.
I guess I appreciate the minister’s support, or optimism, that we hear for the opportunities, but in saying that, what is his government or the ministry doing to provide and ensure certainty that the fibre is going to be there for these companies so they can operate and grow?
Hon. B. Ralston: At the provincial level, the task force, again co-chaired by Assistant Deputy Minister Sanderson and Mr. Nemeth, have made a number of representations. I’ve referred to them earlier, but maybe in this answer, I’ll just consolidate them.
They made representations: “This is what we want. This is what we see as advancing our industry and its concerns.” The government has responded in the recent past by creating these programs. One was the one that I mentioned previously: renewing the Forest Enhancement Society of B.C. funding by $50 million over two years to utilize 2.2 million cubic metres of uneconomic, low-value or residual fibre.
The effort was made to support the Crofton Mill and part of that conversion to paper products from plastic products. New wildfire salvage opportunities would enable the timely direct award of forestry licences to First Nations who are salvaging timber damaged by wildfire, as recommended by the Pulp and Paper Coalition.
The ministry has developed policies to reduce waste, a new waste measurement system, alternate methods of scale for secondary users in a fibre recovery zone on the coast.
In addition to that, at the regional level, regional offices work with the individual mills in their jurisdiction to help them identify fibre opportunities and also to incorporate their requests and their plans into the forest landscape planning that now goes on — not everywhere, but increasingly at the regional level. And that would involve consideration of their fibre needs. That’s integrated into the planning because, of course, the pulp sector is really integrated with the milling sector, and that has to go forward in tandem.
Both at the provincial level and at the regional level, great effort is being made to accommodate and help the pulp sector grow and thrive.
A. Olsen: Congratulations on your new role, Minister. I look forward to having a few minutes here to ask some questions.
It was just a couple of months ago now that the province removed the unduly clause from the Forest Planning and Practices Regulation. Basically, for those that don’t know what this clause is, it stated that ecological values like biodiversity and wildlife protection can only be included in forest planning insofar as they don’t “unduly reduce the supply of timber from British Columbia’s forests.”
During the announcement of that measure, the minister stated that this clause will not be removed from the existing forest stewardship plans. This is only impacting new plans that are going forward. When will the minister remove this clause from the Government Actions Regulation?
Hon. B. Ralston: I want to thank the member for the question, an important question. As he has stated, the unduly clause did restrict forest stewardship plans. That’s the most important application of them, too. Other values could be considered, but it couldn’t affect timber supply to a degree of 5 percent more or 5 percent less than the otherwise targeted amount.
That has been removed, and it has the potential…. I spoke with Garry Merkel about that, and I think he agrees. He’s one of the co-authors of the old-growth report, and he has certainly stressed the importance of that.
Any changes to the Government Actions Regulation are being considered by the Ministry of Water, Land and Resource Stewardship and are not the subject of consideration by this ministry. I don’t think those estimates have taken place just yet. So the place to seek the answer would be from that particular minister.
A. Olsen: I guess a little bit of context, about the question, about that particular regulation: it’s my understanding that in order to address the plans that are currently in place, that’s the regulation that needs to be changed. Just for clarity’s sake, it’s not the Ministry of Forests that in charge of that aspect of forestry; it’s the Ministry of Land, I guess. Is that right?
Hon. B. Ralston: Thank you to the member for that question. There is a somewhat maybe not complicated but nuanced jurisdictional question here. The Ministry of Land, Water and Resource Stewardship is responsible for land use planning, and the Government Actions Regulation falls within the jurisdiction of that ministry. When it’s implemented there, it will impact land use planning processes.
Within the Ministry of Forests, the immediate impact is on forest stewardship plans. They’re plans that were put together by the company and submitted to the ministry for approval. They contained the unduly clause. Formerly, they were good for ten years. That has been reduced to five years. So as they come up for renewal, the new absence of the unduly clause will kick in at that point. Also, laid on top of that is the effort to switch from forest stewardship plans to forest landscape planning, which will not include the unduly planning.
It’s disappearing, not overnight but from two different directions. One would be the renewal of existing plans, and the other would be the switch from forest stewardship plans to the forest landscape plans. Forest landscape plans have the advantage that they’re a more regional planning tool that involves not just the company. It also involves labour and the unions that might represent them, First Nations and communities, and it brings all of those values together.
The absence of the unduly clause will make for a different range of decisions that are possible. The expectation is that those will create plans that are more durable, that are supported by the community and will increase the certainty of areas that won’t be open to harvesting, areas where there will be mixed use and areas where there will be an economic zone for harvesting.
A. Olsen: Thank you to the minister for that response. Shifting gears here a little bit to try and make the best use of this time. I just want to talk about wood pellets.
There have been some pretty strong allegations made with respect to old growth in the province or, at the very least, primary forests being turned into wood pellets and burned internationally for energy and it being called clean energy, even though burning wood pellets produces greenhouse gas emissions. How does logging primary forests for pellets align with the minister’s own promise to make our forest industry more sustainable?
Hon. B. Ralston: I appreciate the question from the member. Yes, there have been a couple of media reports, and the media reports are not accurate. Well, they’re accurate as far as they go in a subtle way, but there is a nuance here that’s being missed.
Certainly, the ideal material for pellets is forced residuals and milling residuals. These are not sawlogs. And not all harvested logs are suitable to be used in sawmills because they may be too small or been damaged by insects, mechanical processing or wildfire. Some pellet mills do use low-quality logs, but these logs accounted for less than 1 percent of the total provincial harvest up to the year 2020. That’s the most recent year.
I just want to go on and stress this. It would not be economic for a pellet company to use quality logs to produce pellets. In 2022, pellet mills paid $30 to $35 a cubic metre for fibre sourced from residual harvesting piles. By contrast, an Interior sawlog was valued at around $130 a cubic metre at a lumber facility. In order to get the most revenue for each grade of log, it would be sold or traded to sawmills willing to pay this higher price.
That’s a difference of $100 a cubic metre, so it would simply be economic folly to take that log and convert it into pellets. It’s not an economic or rational use of that particular log.
Similarly, pulp logs are valued at about $50 a cubic metre and would be traded or sold to pulp mills. So in the case…. In the statistics, there was some suggestion that one of the pellet companies harvested sawlogs but even if they harvested them, they would not use them for pellets. They would trade them with other companies to get the forest residuals. They’d use the value of those logs to get forest residuals at a price that would be economic for them to make money.
The data collected by the ministry under the major processing facility survey confirms that wood pellets are made almost entirely from waste fibre. From 2016 to 2020, over 90 percent of the industry’s inputs have come from sawdust, shavings, chips and harvest residuals.
It’s better — and this is a judgment; the member may not agree — to turn waste into bioenergy that displaces fossil fuels globally instead of burning it in open slash piles or leaving it on the ground, which would increase the risk of wildfires.
A. Olsen: We absolutely have argued in the past that open-burning slash piles is not the way to go and that, in fact, that is exactly the material that is acceptable to be turned into pellets. Primary forests are not. I think if I had more time, I’d dig deeper into this. I think that this is probably the most selective logging, in that answer, that we do in the province. If you choose a log that’s not going to be economically viable, turn it into pellets.
You can create an entire argument about how that’s not going to happen. The reality is that there are a lot of forests and a lot of logs in this province that are not economical to be turned into lumber, so they will be used for something else. I think that that’s what these reports were talking about.
In fact, I think that that’s what…. These reports went further than indicated. They showed that that, indeed, is what’s happening in the northern part of our province. And the further north you go, the less value you’re going to get for those logs for timber. They’re smaller trees. Anyway, on and on we could go.
That was, in my opinion, some selective logging there in the response from the minister.
I’m going to move on to the old-growth strategic review. Missing from this Budget 2023 is the funding necessary to help with the old-growth strategic review recommendations. In February, the government announced an eight-point plan, including an action plan, to be completed later this year.
A question to the minister. Can the minister explain what the purpose of the OGSR action plan is when the recommendations that were made were, I think, already very clear and entirely accepted by the government?
Hon. B. Ralston: I thank the member for the question. The old-growth strategic review is…. The member is correct. The government has agreed to implement all 14 recommendations.
What the report did not contain…. This is agreed by Mr. Merkel in discussions, because he is guiding and helping the process as we go along. It didn’t contain an implementation plan. In other words, how do you take these sometimes very broad recommendations and turn them into action?
In pursuit of that, there have been two provincewide sessions held in January and February, and there are 26 sessions planned throughout the province in April and May. That will help create an action plan that will…. The Premier’s direction is that that be completed by the end of this calendar year.
Some examples of movement on the recommendations. Recommendation No. 12 talks about silviculture innovation. So $10 million has been put to a silviculture innovation fund that will be administered by an outfit in northern British Columbia. Partial implementation of recommendation No. 2 is the four forest landscape plans and the funding, in this budget, for an additional eight more forest landscape plans.
I think what one can say about the plan is…. I think it was pretty enthusiastically received and, if not enthusiastically, accepted by all parties. I don’t think, when it was announced, there was really much in the way of dissent, whether it was the industry, COFI; whether it was First Nations; whether it was, indeed, actors in the political process or non-government organizations. It’s a substantive…. Sometimes the term paradigm shift is used, which is, I suppose, jargon of a type, but certainly it is very much a change in attitude in how forestry and its future in British Columbia will be undertaken.
Because it is such a major change, it requires a detailed plan to guide the implementation of those recommendations to fruition. Those steps have been undertaken, and that’s why that work is being done.
A. Olsen: I was one of those that enthusiastically received it, enthusiastically participated in it, and I was hoping to cheer on the enthusiastic pace of government in implementing it.
Unfortunately, that’s where the enthusiasm, I think, ended. Because that report was received…. Was it in 2019, 2020? The 2020 election was when the former Premier announced enthusiastically that all 14 recommendations were going to be implemented. Now you fast-forward a full three years, and the announcement this year is that we’re going to develop an action plan for it that’s going to be brought to the public at the end of 2023. We’re looking at working into the fourth year after the government enthusiastically agreed to implement all of the recommendations.
When you think about what the impact of that is on the landscape, when you think about just the number of trees that have been enthusiastically harvested in that time and forests that no longer exist and habitat that has been devastated in that time, while we’ve been celebrating the report, celebrating the enthusiasm…. For me, I think that it’s important — the pace of this — to recognize that three years after this government agreed to do it, we are now finally getting an action plan.
I know we can’t go back and write the action plan in 2021 or 2022. I only, simply, make this statement because I feel the pace of the implementation of this has been exactly at the pace of, maybe, the growth of a Douglas fir, and it’s very, very slow. Very, very slow.
When will the legislation be reformed to establish conservation of ecosystem health and biodiversity, another one of those old-growth recommendations, as an overarching policy in law?
Hon. B. Ralston: Well, it’s always great to see no shortage of enthusiasm here in the Legislature. Sometimes things go slow. Sometimes things are a little quiet. I’m pleased to see the undiminished enthusiasm of the member. I think we could work together. Maybe we should make some kind of an agreement or something like that.
Let me say…. I don’t think it’s accurate to say that the forest industry has continued unchanged. There have been 2.1 million hectares of old growth which have been deferred, a subject of public debate. The goal is 2.6 million hectares, and that is being worked on.
Yes, there is some old growth being logged, but it’s a very, very small amount of the total amount. So 0.3 percent of the 11.4 million hectares of old growth in the province was logged in 2021. The trajectory of the logging of old growth has not ended entirely — that was never the intention — but it has diminished in a consistent downward trend.
In terms of the implementation of recommendation No. 2…. It’s not being called a declaration because there were some objections to the….That’s the term that the authors of the report used, but there have been some objections to the use of that term. It’s now being called a framework. That will be part of the processes, which I referred to, throughout the province. That’s anticipated to be completed by June. The Ministry of Forests is a partner with the Ministry of Water, Land and Resource Stewardship. Further steps and an evaluation will take place at that point.
I appreciate the member’s concern about the pace of implementation. These are huge changes in a major industry in the province. I share his concern about that pace. My enthusiasm for it is undiminished as well. We’re heading in the right direction, and I think we’re seeing progress.
A. Olsen: I didn’t know whether or not I should pop up and call a point of order when the minister used the word “shortage.” I wasn’t sure what he was referring to, whether it was….
I appreciate the response. Thank you, Minister.
Just one final question before I turn it back over to my colleague here. I do appreciate the time.
There was a recent study that was released…. Simon Fraser University and the Department of Fisheries and Oceans released a study, which they did together, with respect to the impact of logging on fish habitat, fish streams.
It would be no surprise to anybody who has been around a fish-bearing stream. Particularly, I think this study was talking about coho salmon. If you take the trees down around the creeks and streams, there’s going to be a variety of different impacts from that. It’s going to change the water flows. It’s going to change the ability for aquifer recharge.
In this case, we learned…. It, of course, heats up those creeks and makes them inhospitable to salmon. We’re expending an incredible amount of resources in order to protect salmon and to enhance salmon habitat in their homes, and then, on the other side of it, we are logging around those creeks and streams.
I spent some time up in the Cowichan area. You can see where the clearcuts are on the hillsides. You drive over top of the bridges of the former creeks. You don’t even need the bridge anymore. You could just fill it right in. I guess maybe it’s like a storm drain now, as the water comes off the side of those clearcuts.
The minister has…. Part of me wants to ask the question. Pick. Which one do you like better — the tree or the fish? In this case, you can’t…. If we’re going to continue to pick the tree and log it, we’re not going to have the fish.
In some respects, I think the question is a legitimate one, but I think I want to ask a more broad question, in terms of the policy, and that is around clearcuts.
There was a commitment to stop clearcutting and to start more selective logging in this province, like was done generations ago. What is the track, what is the process, and what progress is being made to stop clearcutting in this province and go back to more selective logging that will allow us to get high-value trees but then, as well, maintain biodiversity and ecosystems and homes for other species?
Hon. B. Ralston: Thank you to the member for the question. Naturally, the ministry is concerned about any actions that will cause an increase in stream temperature, including the possible link with the removal of vegetative cover in watersheds. For example, more than half of the coast region has land use objectives that specify management restrictions on small headwater streams.
Many forest stewardship plans across the province reflect this increased level of riparian stewardship. The removal of the unduly clause from the Forest Planning and Practices Regulation will, along with forest landscape planning, better determine how to manage small streams as part of the forest ecosystem.
I would say, and I think I said this earlier, that there has been a shift in using clearcut methods. Not all harvesting is done by clearcut methods. Today area harvested by clearcut — that is, no reserves — represents less than 10 percent of the harvest area. The use of alternative silviculture systems, such as clearcut with reserves and variable retention harvesting, has been steadily increasing. These alternative harvest methods retain trees and other vegetation within cutblocks in clumps or as individual stems.
Just to reiterate the point about the concern of the ministry and the oversight of that, the Forest Practices Board, which is independent of the ministry, provides an important source of feedback on that. Many of the recent amendments to the Forest and Range Practices Act have addressed many of the recommendations that the board has made over the past decade.
I’ve mentioned forest landscape planning. Bill 23 has expanded the discretionary authority of the district managers for the approval of roads, cutblocks and plans.
There was recently a new appointment appointed to the board. The board consists of six appointed members, including the recently appointed chair, Keith Atkinson, representing a broad range of expertise and experience in forestry and natural resource management.
That issue is an important one. The Forest Practices Board provides supervision. There have been legislative changes and changes in practice that address some of the concerns, the very legitimate concerns, that the member raises.
A. Olsen: I just wanted to thank the members for the opportunity to speak. I think that it’s important, and hopefully the minister can get out and see the landscape, because when you get out and view what’s happened, the use of clearcutting has been extensive, and leaving patches of trees or leaving single stems around actually just leaves them vulnerable to windfall and to storms. So the changes that are needed on the landscape, I think, are as extensive as the clearcutting that’s happened for decades in this province.
I assume the minister will be out on the landscape, seeing what’s happening out on the land. But what I’ve witnessed has been quite shocking.
I appreciate the responses, and thank you for the time.
HÍSW̱ḴE SIÁM.
T. Shypitka: Thank you to the critic for the time. Just a question for consideration for the minister. It’s about a trapline in my area.
I have a trapper who applied for a transfer of a trapline back in 2020. At that time, he was doing his due diligence and feeling out the situation. He lives about — I think it’s around 45 kilometres from the trapline. He asked a worker from the Nelson area that was in charge of the traplines of the East and West Kootenays, and at that time, the person from the ministry said they were fine with that type of an exemption.
When he got the licence in January of 2021, I believe, he then went to apply for the exemption to have a cabin on his trapline, and it was refused. So this person, Mr. Strauss, is obviously a little upset with the decision. He invested his time and money into this trapline, and now he doesn’t have the resource that he needs to adequately trap his tenure.
It’s a little arbitrary sometimes because these traplines aren’t all created equal. His trapline encompasses three different areas: Moyie Mountain, Connell Ridge and Joseph Mountain. They traverse up and down through several different types of ecosystems and through highly forested areas, and he wants to trap that. He wants to trap those fur-bearers. He wants to manage those fur-bearers in a responsible way so that he alternates his trapline amongst these three areas. So he wants to do the right thing.
I believe he also has some mobility issues, so in light of that, he’s asking for an exemption. The ministry has flatly refused. I think there’s some wiggle room with the ministry to make decisions on exemptions, and I would ask the minister if there’s any part that they would reconsider and look at this — the nuances that this trapline represents — and address the issues for this guy.
Like I said, he just wants to do all the right things. It’s a safety issue too. In the wintertime, there’s lots of snow in these areas. You know, it’s not uncommon to have three, four or five feet of snow. If he doesn’t have a cabin there in case something goes off, then it puts his life in jeopardy to trap his line.
Given the geographical challenges that this trapline represents and the close proximity to where this trapper actually lives, he asked the question also: if he was to move five minutes down the road where he formerly lived, would he then be allowed to trap his lines?
I don’t think we need to go to those extents. I think there’s some wiggle room for the ministry to look at this and reconsider this application.
Hon. B. Ralston: I know there’s expertise in trapping on the other side of the House. I know the member for Prince George–Mackenzie was the head of the Trappers Association at one point. I think that’s where I first encountered him. He made a presentation to the Finance Committee in Prince George in that capacity many years ago.
I will commit to follow up on this application. I’ll ask for a briefing, and I’ll get back to the member.
M. Bernier: I appreciate the interlude, too, some of the extra questions being thrown in there and, again, the minister’s and staff’s indulgence.
I just want to go back a bit, when we were talking about some of the pressures that we’re seeing around British Columbia right now in some of the companies. One of the oldest sectors, I would argue, that we have in forestry in British Columbia, when you think of how the province grew, on the value-added side of things is the cedar shake and shingle organizations that we have around British Columbia.
We are fortunate right now to have well in excess of over 3,000 good, family-supporting jobs, people working in the cedar shake and shingle industry in British Columbia. It brings in, obviously, with that, a lot of revenue, hopefully. But one of the things, when I’m looking at that sector, is some of the pressures that they’re facing.
It’s interesting, when we talk about…. To state the obvious — again, I’ll use that word — cedar shakes and shingles require cedar trees. This is one of the pressures that we’re seeing right now. This will bridge into, probably, some of the discussion we’ll have next, in a few moments, around old growth and the different strategies that government has there.
But to state, on this value-added sector for a second…. Without access to cedar trees, we don’t have a viable cedar shake and shingle industry. As I said, that’s thousands of good jobs. I know the minister would know, too, that there are small, usually family-run mills. There are a lot of these around British Columbia. I think there are 24 or 25 of them around the province.
But being the value-added, smaller companies that they are, they rely on primaries, in a lot of ways. They rely on open-market purchasing and, usually, transportation, depending on where they are, as well, of these logs.
I guess the first question on this is: in light of some of the downward pressures that the industry is facing right now and the availability of a lot of these specific cedar trees that we’re starting to hear and see on the ground, does the minister see a future continuing in this sector that’s been around for over 100 years in British Columbia?
Hon. B. Ralston: A couple of weeks ago — I can’t remember exactly — I did tour the mill of a company called Waldun, which is a cedar company. The representatives of the Cedar Shake and Shingle Bureau were there. We had a very animated discussion about the challenges that they see they face.
They are included in the new B.C. timber supply, the 10 percent program, which is restricted access, the one that we announced fairly recently. That will give them increased access to the kind of wood that they need in order to continue in their industry.
M. Bernier: I’ll just canvass that a little further. Appreciate, again, the minister meeting with these different groups, as I think that’s important, as the newer minister, to understand the file. I don’t mean that with any disrespect.
When we look at the specific industry, the cedar shake and shingles, the United States over the last year grew 26½ percent — growth — while in British Columbia, we saw a decline in the double digits. When we look at the reasons for that, talking and looking at the stats that companies put out and the public commentary that they put out, almost all of that is entirely due to the diminishing access to the cedar supply.
The minister just acknowledged the 10 percent that he said. Now, we need to remember. The minister can correct me when he gets up, then, whether that’s all cedar or different species. If it’s all cedar, that’s…. Having the access to and having it affordable — and transporting and getting it to the different mills — obviously, are different parts of the discussion.
Even with the minister’s comments, I would argue specifically that for this value-added sector, the government plays a very direct role in either supporting or abandoning them. We’ve heard the commentary around the value-added, which I would say especially….
This is one of the longest value-added groups that we’ve had in this province. I think nobody would argue the fact. You know, you look at all our old houses. We had the cedar shingles on them. They’re environmentally friendly. They’re not carbon-intensive in many means. It’s actually labour-intensive, for those that have actually seen how cedar shingles are made.
To the minister, with his announcement — well, the government’s announcement with the commentary that the minister has had around the 10 percent — does he feel that that will be the silver bullet? Does he feel that that will solve a lot of the challenges that this sector is facing? Because if all of…. I shouldn’t say all, in all fairness. If a good portion of the stress on this sector is just access to the cedar fibre, the cedar logs, will this help them to the point where we will see that turnaround and we will be able to compete with the United States in 2023-24?
Hon. B. Ralston: The member makes the point that this is one of the oldest value-added sectors in the forest industry in British Columbia. There are a number of measures that have been taken that cumulatively will help this sector. One that we’ve done is to reduce the export of unprocessed raw logs. Secondly is B.C. Timber Sales — the 10 percent directed to value-added producers. That would enable this sector to go to B.C. Timber Sales and say: “We need this particular sale for our purposes.”
Thirdly, the Manufactured Forest Products Regulation puts a fee in lieu on the export of rough lumbers — I think it’s typically called cants — that are exported to…. The member rightly mentions the growth of the parallel sector in the United States. Often the source of timber, the wood for that sector, comes from British Columbia. It has been exported without penalty. So the idea in the Manufactured Forest Products Regulation is to inhibit the export of that rough timber, cants, for that purpose.
M. Bernier: Can the minister just quickly explain to me, then: has that policy already been initiated? Have the logs stopped being transferred, or is that just on the wish list for government to bring in the regulation to stop that?
Hon. B. Ralston: Yes, this has been implemented. Since September 30, 2020, on the coast, lumber made from western red cedar and cypress has been required to be fully manufactured to be eligible for export without an exemption. Reduced availability of red cedar and cypress was a particular concern with this high-value, minimally processed lumber being shipped out of the province for further processing.
The term is “cants,” so I understand. The industry and association and companies impacted have been notified of that, and the ministry is working with them on the implementation. The idea is to help them indirectly by inhibiting the export of the raw material that they need to do their business.
M. Bernier: The minister has known me long enough that I usually don’t ask a question unless I already know the answer to it, but if it was in 2020 and the pressure is being felt right now more than ever…. They’re saying that the huge downturn in 2022 is forecasted even further in 2023 in this sector. If this change was made in 2020, it obviously hasn’t had much success.
Can the minister maybe explain why? What are the parameters that are maybe affecting these companies to not access these logs that this policy was supposed to help fix?
Hon. B. Ralston: An interesting question.
Western red cedar is considered to be a very desirable product, and it has a number of uses — just valued for its aesthetic qualities, the grain and the sheer beauty of it. In the last several years, the price has been very, very high. I think it went as high as $2,000 U.S. for 1,000 board feet. It’s currently at about $1,800 U.S.
I did tour an operation in Langley where they would basically use western red cedar but slice it very, very thin and then put that on top of a composite wood support and sell it into the Japanese market at a very, very high price.
I think part of the challenge for this industry is just simply the desirability of the raw material that they use to create their product. There are many other uses, and people have, just through marketing, developed other markets for this wood that is very, very hard for them to access.
They do have access through the B.C. Timber Sales, the 10 percent program. Clearly, that’s not enough to solve all their competitive problems, but it’s really a market competitive price question that’s driving the problem for them.
M. Bernier: I would actually almost go the opposite. If the markets are that high, you’d think companies would be having an amazing opportunity to flourish here in British Columbia.
I agree with the minister. I’ve worked with this wood. It’s an amazing product, versatile in lots of different ways. But by the answer I just heard from the minister, do we have enough of these trees to keep our sector viable long into the future? The minister was just saying that with the extra 10 percent that was allotted through Timber Sales, that hasn’t kept up with the demand, I assume. I’m not trying to put words into the minister’s mouth.
If the demand is higher, is it government policy that’s restricting the access to the fibre? The minister tried to say it was market conditions.
Again, basic question. Do we have enough trees on the land base to continue having these operations and these companies stay viable and prosperous?
[A. Walker in the chair.]
Hon. B. Ralston: What I would say is just that following the meeting that I had — the MLA from Maple Ridge was also there, because it’s in his riding — at Waldun, that meeting with the bureau, we’re committed to working with them to provide the solutions, if we can.
There is a supply of western red cedar and yellow cedar on the coast. It’s a highly desirable commodity. We will work with the industry to see that they can increase their access to the available supply. That is the challenge — I think the member has rightly pointed that out — and that’s what we are committed to do with them.
Part of the future is in building partnerships. There are a lot of Indigenous logging companies that have access to that particular supply and, with an effective partnership, will be able, perhaps, to alleviate the constriction of supply, which is a challenge for some of these producers.
M. Bernier: The whole tenor and issue here is access to the trees, access to fibre or sawlogs, depending on the sector. We’re seeing more and more pressure on the land base, more and more pressure on the sector, due to policy decisions of government. We can debate the rights or wrongs, but the pressure is real.
Maybe, as I transition here, can the minister explain to the House the difference between first-growth cut and old growth? Can he explain the difference between the two of those? The reason why I ask that is that depending on different briefing notes, depending on announcements from this government, sometimes they refer to first growth rather than old growth. What’s the difference?
Hon. B. Ralston: An interesting question from the member. “First growth” is simply what it says, and it’s not age-dependent. If, for example, there’s a fire and new trees begin to grow there and they’re 20 years old or 30 years old, they are first growth.
“Old growth” is defined in the Interior as a tree of 140 years of age or older; on the coast, 250 years of age or older. That’s the difference between the two terms.
M. Bernier: I appreciate that, and the definition, too. I’ll digress very quickly here when we talk about the difference between the coast and the Interior because, of course, if you look at the history of British Columbia and you look back to the mid-1800s, the majority of the Interior was logged, clearcut, burnt. So the majority of the Interior we could classify as first growth. Technically, it went through a different cycle compared to the coast, because of the weather down here.
For those that live down here, it’s a little wetter. It doesn’t burn as much, thankfully, as it does in the Interior. In fact, and I say this with all due respect to my colleague for Vancouver-Langara sitting next to me, the largest clearcut in British Columbia is where Vancouver now is. Being a fourth-generation Vancouver boy myself, my family came in the late 1800s, I’ve got the old family pictures of the massive trees that were cut down to build the city, and the cities in that area.
We do make decisions. Policies and decisions around the forestry sector change and have changed for decades and for generations as science evolves, as the impacts on the land base are recognized. We look at, right now in British Columbia, the pressures on the landscape. I don’t want to shy away from that.
Huge support for the forestry sector, and we said this even at the beginning. We know the sector has pressure. We know there are changes that need to be made. We need to find that balance with addressing biodiversity. We know that. We have to look at how those changes can be made but trying to do that in a way that we’re finding the balance on the landscape as well. The minister, hopefully and rightfully, said that we want to see a sustainable forest industry for generations to come.
That leads me to one of the announcements that government made not too long ago, which was 30 by ’30 — 30 percent by 2030. Can the minister explain to us…. I know it’s a little bit outside his ministry, the announcement, but it has huge impacts to his ministry when we talk about the preservation of 30 percent of land by 2030.
Can the minister, through his knowledge base in his role at the cabinet table…? I’m not asking for cabinet confidentiality. This should be public. Is that 30 percent more land on top of what’s already protected in the province of British Columbia, or is that going to be a total of 30 percent protected? I think the minister can appreciate that those could be vastly different numbers with huge consequences to the land base.
Hon. B. Ralston: The broad issue of what’s now called modern landscape planning is, indeed, a land use planning issue that falls within the mandate letter of the Minister of Water, Land and Resource Stewardship.
There would be impacts upon the Ministry of Forests and forest operations, although what ingredients, what designations would count as being a part of a 30 by ’30 goal have not yet been decided. That’s something that the federal government has wanted to pursue. There was a conference in Montreal, where some of the government’s ministers attended. The Minister of Environment was there, and I think the Minister of Water, Land and Resource Stewardship was there as well.
It’s an ongoing discussion. The specific ingredients of land that would qualify as being designated to achieve that target are not decided, as I understand it, but you would be better directed to speak to the minister who has conduct of that file.
M. Bernier: I’m flagging that one only because this, again, highlights the angst, I think, that people are feeling in the province right now around the uncertainty of where the direction is going with the government. When there is an announcement around an old-growth strategy — and we’re going to go into that right now — but then when you have 30 by ’30 announcements and the confusion of where that fits in….
The minister said earlier, and he can correct me if I’m wrong…. Again, when the member from the Green Party was asking questions, he said they were planning on going to six million hectares of old growth. Right now, we’re at 2.1. That was a great answer because it helps. Less questions I have to ask around that, because it also shows the pressures on the landscape.
If we’re going to go to 30 by ’30, 30 percent land, if we’re encompassing and incorporating the strategic direction this government wants to go around old growth, that’s one thing. But we can’t get a straight answer. I’m not criticizing this minister. It’s the direction that government is going on all these plans, with the fact that there’s not enough detail in the plans for people to understand what the thought process is and the future goal will actually achieve, when we don’t know how we’re going to get there or what it means.
I could argue that governments have already achieved their goal of 30 percent protected land in British Columbia, because if you start talking about agricultural land, start talking about parks conservancies, etc., we were at about 38 percent, I believe, last time I looked. Congratulations. We’re done. We don’t have to do any more.
I guess that’s not what this government is thinking. Because of that, I raise those questions.
If you look at 30 percent and start dividing it up in a small, forest-dependent region — again, like Vanderhoof — that could be 200,000 hectares. It would be about 30 percent of the land base in that region. That would devastate that community for any future plans.
I’m only flagging that because I implore this government to try to rationalize and explain what they’re doing. Companies are nervous. People are nervous. It’s not necessarily 100 percent on the thought process of where we need to get to. Again, it’s: what are we going to do to get there? And that’s not being answered.
In fact, recently the government hosted a multisectoral old-growth forum. The minister will be aware of this. This is where, again, it raised more questions than answers when we get into those discussions, because we start asking: who’s at the table? Who’s actually feeding the information? What are we hoping to get out of it?
I know the UBCM and others, I believe, publicly came out afterwards that they were disappointed at the lack of local government at the table. There was a very strong First Nations and NGO component but not very much of the forestry sector or local governments, who are, as we’ve talked about earlier today, gravely impacted when there’s a downturn or changes in there.
I’ll bridge from that into the forest planning tables that government…. The minister has announced that we’re adding eight more. From four to 12, I guess, is where we’re going. Is that going to solve the issues all around the province? By that I mean if we’re going from four to 12, what was the rationale to come up with 12? Are we going to need more, or is 12 all we’re going to see?
Hon. B. Ralston: I just want to correct, perhaps…. I believe the member misheard me. He’s mentioned six million. In fact, what I said was 2.6 million would be the ultimate goal. There’s 2.1 million now. The plan is to add another 500,000, with an ultimate goal of 2.6 million. Not six million; 2.6 million.
In terms of the landscape planning process, I’ve spoken with Garry Merkel, who is one of the co-authors of the report, along with Al Gorley. He thinks they’re an important step, but he did want to stress that they’re not going to solve everything. They’re not a panacea. They are an important step.
Do we need more of those? Yes, but it’s a process that is evolving as it goes along, and there are learnings that are passed on and accommodated in the next stage of the plan. So yes, there are four, and budget has been allocated for another eight. Those will be selected based on a number of criteria.
But I do want to talk about, a little bit more…. I talked about the outreach in terms of devising the action plan. The old-growth strategic review encompassed four months of public engagement, including 200 meetings in 45 communities, 300 written submissions, 400 published articles and papers, 9,000 emails and 18,500 surveys. That’s a fairly comprehensive process. I think we’re all familiar with government consultation processes, but as these go, I think that was pretty comprehensive.
So there is broad public support, is my assessment, with qualifications, of course. But there is broad public support for the direction that the government is taking on these.
Like any other implementation process, there are consequences that aren’t always imagined at the outset. That’s why it started with four and is going to add another eight, and there will be learnings as they go along.
I think it’s an important process. It’s not going to solve everything, but it is heading in the right direction and a major step towards implementing the recommendations of the report.
M. Lee: The minister did, in response, just make mention of the criteria. Perhaps he can clarify, in response to my next questions here, about these forest landscape plans and the tables with up to 50 First Nations. Of course, the minister will recognize that I’m joining my colleague here to address some of the considerations, let’s say, from a First Nations point of view, as the critic for Indigenous Relations and Reconciliation.
I know the minister and I have had previous opportunity to have these types of exchanges in his previous ministry portfolio, and he has an appreciation of that.
With the announcement…. Perhaps the minister, in response, will comment further about the criteria. How are the up to 50 First Nations being selected for this process? Will those First Nations be grouped in a regional sense? That’s two questions.
The third question is: with the way that these forest landscape plans and these tables are being composed and implemented, how does that meet and align with the rights of Indigenous peoples under UNDRIP? Meaning free, prior and informed consent in consultation directly with rights and title holders.
Hon. B. Ralston: I just want to start with the four active forest landscape plans. There are, as I said, four. Let me just read the names of the nations that are participating.
In the Quesnel timber supply area, it’s the ?Esdilagh First Nation, the Ulkatcho First Nation, the Xatśūll First Nation, Saik’uz First Nation, Nazko First Nation, Lhtako Dené First Nation and Lhoosk’uz Dené Nation.
In the Sunshine Coast TSA, Squamish Nation, shíshálh Nation, Tla’amin Nation, Homalco First Nation and the Klahoose First Nation.
In the Lakes TSA, the Cheslatta Carrier, the…. We can probably give these to the member, if he’s trying to write these all down. Hansard will need some help in getting all these names.
So this is the Lakes TSA, just to start again: Cheslatta Carrier Nation, Lake Babine Nation, the Ts’il Kaz Koh First Nation, the Office of the Wet’suwet’en, the Nadleh Whut’en First Nation, the Nee-Tahi-Buhn Nation, the Skin Tyee Nation, Stellat’en First Nation, the Wet’suwet’en First Nation and the Tl’azt’en Nation.
And TFL 37 is simply the ‘Na̠mgis First Nation.
Those are the names of the nations that are participating in those four pilots. The names of the prospective nations for the further eight are not yet selected. The list is composed of nations who already have a government-to-government relationship, have some knowledge of forestry and have volunteered. In other words, they wish to become a part of these processes, so they’ll be…. Those tables will be put together.
I think it’s important that nations that have volunteered, that want to be part of the process, are selected because then the prospect of success is greater, I would think. It’s very difficult to encourage people that don’t want to participate, to participate. I think the prospect of success is enhanced by proceeding in this way. I would be, again, optimistic about the enthusiasm of those nations. They’re not yet public, so I don’t have authority to release those names to the member.
M. Lee: I appreciate the minister taking the opportunity to review the current tables and make comment about the new tables coming into place. Again, though, can I ask…. I guess there are two things.
One is that I recognize what the minister said in terms of those nations that volunteer and those nations that have understanding of forestry operations on their lands. Are there any other criteria under which these nations are being selected or approached?
Secondly, is there any concern as to the regions that have been discussed already, the four that the minister has named and the eight additional regions that are going to be comprised of and implemented, and as to nations that are not part of those tables and whether this government is meeting its commitments under UNDRIP to provide for that free, prior and informed consent, particularly when we’re dealing with land use policies in the forestry sector and the impacts on the abilities of those nations to derive an economic livelihood for their peoples?
Hon. B. Ralston: Thank you. I just want to take a step back, based on the member’s question.
There is a broad consultation with all nations, all 204. Of those, I would say approximately, I think, 156 have forest interests. Nations are engaged, and able to engage with the provincial government, on forestry issues through that process.
This next step of the initial four is a more focused and refined process, which is geographically centred, as you can tell from the names that I read out of the first four.
The next step will then be to make sure, if it’s proposed to proceed with the forest landscape plan, that all the nations in a particular region want to participate and will participate. It’s not a question of either-or. There’s access.
I guess the example that would be a good one would be the forest-revenue-sharing. I think the acronym is FCRSA. I think probably the member is familiar with that. That was doubled, and that went to every nation, providing they were willing to agree to it — there’s a few that did not want to participate — that was entitled, and that money flowed as well.
It’s a continuum, but the government is deeply cognizant of its obligations to consult and engage pursuant to Bill 41 and the demands and the obligations that places upon the party.
I hope that’s an answer to the member’s question.
M. Lee: I appreciate that we’re about to consider how to pause this process, but we’ll…. If we could wait until the member for Peace River North comes back into committee for clarification on this. I’ll just ask a question, and depending on how that goes, we’ll see how much time we have left.
While we’re on the train of thought, I appreciate the opportunity. The minister just said that it’s not either-or. I appreciate that.
If we just consider, with FCRSA, as well, as a good example of contacting, inviting presumably all nations that have forestry operations or forestry interests…. Quite frankly, I would have thought that any nation in this province has a forestry interest, meaning they have trees on their territories. But parking that for a moment, of the 156 nations that the ministry has identified, they had, obviously, an opportunity to be engaged with FCRSA and the increased revenue.
If that’s a parallel process, and we have the regional approach with the forestry landscape tables, do we have situations, though, where there may be a nation that is not part of the table that might have a different view as to the subject matter of the table when it’s considering old growth, moving from 2.1 million hectares to 2.6 million hectares, or other topics that are going to be considered here?
I can ask the question. You can review it on the transcript. I understand there’s clarification necessary here, procedurally. But I know the team of the minister does probably appreciate the question I was asking, so I can restate the question if the minister would like.
Interjection.
M. Lee: I was saying…. I do recognize that the minister said it’s not either-or. It’s a process where, at least in the ministry’s view, 156 nations in this province that have forestry interests are being consulted with and that, specifically regionally, these forest landscape tables are dealing with regional planning. But I do note that when the announcement came about of the eight new tables, it did refer to some of the new measures on old growth and some of the other topics of old-growth management that these tables would address.
So is there a concern as to nations that are not part of these regional tables, that may have other views, as it relates to old growth, not having that direct level of consultation? Or is there, for example, another stream of further consultation on this government’s old-growth deferral strategy?
The Chair: We will call a brief recess. We will return back after the royal assent with the Lieutenant-Governor.
Thank you, Members.
The committee recessed from 4:49 p.m. to 5:04 p.m.
[A. Walker in the chair.]
The Chair: Good afternoon, Members. Thank you very much for your patience.
I call Committee of Supply, Section A, back to order. We are currently considering the budget estimates of the Ministry of Forests. I now recognize the minister to move the vote.
Hon. B. Ralston: I move the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 5:04 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF ENVIRONMENT
AND
CLIMATE CHANGE STRATEGY
(continued)
The House in Committee of Supply (Section C); A. Walker in the chair.
The committee met at 1:04 p.m.
The Chair: Good afternoon, Members. I call Committee of Supply, Section C, to order. We are meeting today to continue the considerations of the estimates of the Ministry of Environment and Climate Change Strategy.
On Vote 24: ministry operations, $199,682,000 (continued).
R. Merrifield: Thank you, Minister. Thank you for the answers to the question just before lunch there. I hate to say it, but I had a fantastic lunch. First meal of the day, so I am feeling very energized this afternoon. If I seemed a little bit lacklustre this morning, that’s why. I just wanted to let you know. We’re going to give ‘er now.
The minister gave me the answer to why our emissions were only reduced by less than half of what the rest of Canada was. But in taking a look at some of the other numbers from other provinces, which were even more open than what British Columbia was…. If I take a look, for example, at Saskatchewan, they actually had a significant reduction in their GHGs, whereas we did not, and they had a far more open economy than we did, even, during that time.
Could the minister…? Does the minister want to add anything as to why, in 2020, we were less than half the average of Canada in our emissions reductions?
Hon. G. Heyman: I think the only thing I’ll add at this point is that…. We were just having a discussion around different sectors in Saskatchewan, different factors, different sectors in B.C. and different factors. It’s complex and interrelated. I think the best answer to the member would be to offer a technical briefing.
We have not done a jurisdictional scan across every province in Canada, but we could look at results from different provinces, look at the different factors that make up those results, look at the comparators in British Columbia, and out of that might come some explanations.
R. Merrifield: Thank you so much, Minister. I would welcome the briefing, absolutely.
We’ve talked about the disappointing reduction in 2020 and how this was much less than the rest of Canada and how we’ve had two years of measures that were introduced in the CleanBC and, to date, had not seen those measures actually taking effect, according to the minister.
I have to say that having…. We just used the one example of the new EVs as a positive, seeing that there’s been such a positive uptake in new EVs being purchased, but we don’t know how much that’s actually resulted in an emissions reduction.
I guess these different factors are actually leading me to the question. If the Ministry of Environment doesn’t know what the emissions result is of a particular measure, who does?
[J. Sims in the chair.]
Hon. G. Heyman: To answer the member’s question, which is a good one…. I think I’m going to be a bit more complex than if we don’t know who knows, because we do know some things. We do know many things. But one of the things I want to reiterate is that the figures that we use are based on Environment and Climate Change Canada’s national emissions inventory, which we rely on to track our progress to targets.
Those emissions are generally reported with a two-year lag. So it’s difficult for us when we’re talking about today to actually remember that we’re talking about a couple of years ago. And the challenge in looking at individual measures — let’s say, for instance, the zero-emission vehicle rebate — and to attribute a certain level of emission reductions to a particular measure is that there may be a number of measures, and we don’t want to double count or claim the same thing for every measure.
Let me give an example for switching from a gas vehicle to a zero-emission vehicle. There are a bunch of programs and policies that would all make that decision more attractive. The incentive rebate is one of them, but there’s also the carbon tax. There’s the increasing price of gasoline. There’s the zero-emission vehicle standard, which incents new car dealers to have more ZEVs on offer, because they’re required to, as well as the low-carbon fuel standards. We don’t want to double count.
One of the references to which I’d like to point the member to is contained in the 2022 Climate Change Accountability Report, the annual report that government publishes that includes our projections as well as our look backward. And it also includes advice and commentary from the independent Climate Solutions Council. Appendix 3 has a list of B.C. indicators, and while some show, regrettably, increased emissions, many show reduction in emissions — in some cases, significant reductions.
I’ll just give a few as an example, but the entire appendix is available for the member online. The net greenhouse gas emissions per person in British Columbia, and this is a percent change from the previous year, is minus 5.1 percent. Electric vehicle registrations were up 46.1 percent. That’s pretty healthy. The Better Buildings fuel switching projects were up 25 percent. Methane emissions for oil and gas were down 37 percent. And progress to reduce building emissions from the 2010 baseline in the public sector, because we have some specific requirements for the public sector, were down 12.1 percent.
R. Merrifield: I do take the minister’s answer, and I’m just going to remind the minister of something that was said just earlier this morning. That was that we also have a growing population. The targets that have been set are not GHGs per person. It’s actually total emissions.
So let’s go back to the new cars. If we have a total population growth, which we have…. We know we’re going to continue to have exponential population growth over what we’ve seen in 2020, in which we had the smallest population growth. And if we look at the population curve, it went like that.
We haven’t even really anticipated the actual number of people that have been added into the system over the course of ’21-22 with respect to their GHG emissions, because we don’t have those numbers, as the minister aptly pointed out. So if we have double the number of EV cars, that’s great; except if we have more cars that have been purchased overall, then that’s not great, because our total emissions will still be higher.
My biggest concern is that we’re still talking…. By 2020, which I understand is where we look to, to see our emissions…. And it is always two years in the background. I always push for late estimates for Environment, just to try and hit that next year. So we could just be…. You know, even if it was in draft format — like, just the next year of emissions. But by that point, by 2020, the Ministry of Environment had already invested $610 million. If we only see a decrease that’s half of what the rest of Canada is, I would say that that’s a pretty big yellow flag, if not a red flag.
I’m going to take my next question, actually, into the document that the minister just referenced, which is the 2022 Climate Change Accountability Report, because in the report, it actually states: “The latest modelling on our progress to targets is showing a small gap” — I like the qualifier here, but I’ll say gap — “in meeting our 2030 targets.” We’re not going to make our 2030 targets. The report further states: “We expect to see a gap of approximately 0.8 MtCO2e towards our 2030 target of 39.3 MtCO2e,” which brings B.C. to 97 percent of the way.
But that’s only 97 percent. We’re still not meeting that 2030 target. And before that, we won’t make our shorter-term target in 2025, which is only two years away. It is going to be about a 15 percent shortfall, based on this report.
My question is this. How do the minister and his government intend to address these shortfalls?
Hon. G. Heyman: First of all, the 3 percent gap is a result of a methodological change by the federal government in how they calculated the emissions in the baseline. Having said that, our legislated commitment is to the 1997 levels. But that is what put the modelling of CleanBC emission reductions out of whack.
It’s important to add that 3 percent, I think, is well within what we consider an amount that we can compensate for with a constantly iterative, reviewable process. We set up the CleanBC Roadmap to review on a regular basis to see which measures are more successful than expected, so that we can continue to enhance those, and to see what measures are not having the desired effect, so that we can adjust them and have them do better.
It’s also why we have the accountability report, why we have it in legislation. It’s so that we can report, in great detail, about what is actually happening in terms of our plan, our emission reductions, our particulate measures. Where the plan is not achieving what we need it to, that’s apparent to everyone, including us, so that we can intensify our efforts to reach that target by 2030.
Just as an example of some of the things that we are doing, we’ve been told by the Climate Solutions Council that the plan is good, that we’re making good progress but that it’s important to intensify our efforts in a number of areas. Our announcement, on March 14, of the new energy action framework had several elements to it. One of them was to commit to a legal regulatory mechanism that would reach our sectoral oil and gas targets, which is about a fifth of our emissions.
Equally important was the commitment to a B.C. Hydro electricity task force so that we can ensure that the plans of B.C. Hydro to electrify B.C. align with our climate plan, that it’s a climate-aligned energy framework, so that we have the electrification necessary — for industry, for transportation, for homes — to meet our targets and our emission plans.
R. Merrifield: Thank you, Minister, for the answer. I will remind the minister that last year we canvassed the differential that was created between the CleanBC plan and the Roadmap to 2030 — why the numbers had changed throughout the course of the CleanBC plan, the first accountability report and then the Roadmap to 2030.
It was during that time that those numbers and the adjustments, based on the Canadian adjustment to how things were calculated, were already anticipated. So there should not be a surprise in terms of the actual number. This is a full year later that we’re looking at this accountability report, and that number is still not adjusted. The nimbleness that the minister suggests should have already caught up with that 3 percent, at least.
I want to remind the minister, as well, that we’ve got that 15 percent shortfall in 2025. Yes, it’s 3 percent by 2030, but we’ve got this 15 percent shortfall to make the 2025 goals.
In order to address those, within the same report, the government is considering “increasing the stringency of existing…commitments” and “pursuing emission reductions…in sectors for which there are few targeted measures.” Two such sectors identified by government are agriculture and forest management.
Considering that we’re less than two years away from missing our emissions targets by 15 percent in 2025, and even considering the four measures that the minister noted and that were announced on March 14 — I thank the staff for the briefing on that — how soon could these sectors even catch up?
Amongst others, how are we to expect that government is going to accelerate restrictions, potentially layering on top of the challenges that these sectors are already experiencing?
Hon. G. Heyman: First of all, when we last met in estimates a year ago, we had not yet done the modelling of the various inputs that resulted in the 2022 climate change accountability report, which showed the 3 percent gap.
It’s an iterative process. The federal government changes their components of the baseline almost every year. Sometimes it may increase the distance to our target a bit. Sometimes it may shrink it. We just have to deal with that, and we have to deal with that by focusing on our programs to reduce emissions.
To the specific question, which I believe was about agriculture and forestry…. We identified those because we saw those as areas where not very much had happened yet and areas with some potential. The climate action secretariat is working with both ministries to develop some plans to increase emission reductions in those sectors, while, at the same time, working on all the other sectors and mechanisms that we have in place as well as creating and establishing new ones and moving those forward.
R. Merrifield: Hopefully, this will be a fairly quick answer. Essentially, what I’m hearing from the minister is that we don’t have those plans in place yet. They’re simply noted sectors that may have some opportunity for reductions. Most likely, we will not see any measures in place that will have a meaningful impact for the 2025 numbers but, possibly, for 2030 and by the time regulation gets in place and we actually see a time frame of distance. Am I understanding correctly?
Hon. G. Heyman: It would be incorrect to say that there are no measures taking place in any sectors, including those two.
Let me give some examples from forestry that are already in place. A couple of big players have begun to invest heavily in electric log-hauling trucks. There has been work done to reduce slash pile burning. We have worked with the Ministry of Forests on the Forest Carbon Offset Protocol 2.0. Also, there is our commitment to the old-growth strategic review and the implementation of the recommendations of that, which will result in old-growth sequestration.
In agriculture, dairy farmers have been working on a number of measures, including on-farm activities that will both reduce emissions and help reduce emissions in the fuel sector by using waste and, instead of letting it vent, turning it into renewable natural gas. Cattle ranchers have been looking at regenerative agriculture and the possibility of grassland sequestration.
There are many more potential things that both those sectors could do. That’s why we’re working with those ministries to identify them, do proper analysis and then look at programs to incent their gradual ramping up between now and 2030.
R. Merrifield: My assumption is that those already existing programs would have been calculated into the accountability report and into the forecasting and modelling that was done.
The report was actually addressing the gap. It was stating that there’s…. It’s considering increasing the stringency of existing commitments and pursuing additional reductions. So my assumption is that the measures that are already in place, of course, would be modelled out in the accountability report, still showing the gap.
My question was actually: what other measures? But we can move on from that at this point.
The report also states…. The forecasts in here include reductions from B.C. Utilities purchasing renewable natural gas — or RNG, as I’ll refer to it from this point forward — produced and used outside of B.C. This accounts for 1.2 megatonnes of CO2e emission reductions for both the 2025 and the 2030 targets in the model inputs. The 1.2 megatonnes represents 5 percent of the total reductions needed to achieve the 2030 targets and 12 percent of the total reductions needed to achieve the 2025 targets.
How much of the CleanBC plan is to buy our way out of the emissions problem?
Hon. G. Heyman: As I said to the member…. In my previous answer, I gave one example of agriculture looking to reduce emissions by certain measures to produce renewable natural gas. We want to produce and intend to produce much more of it in British Columbia, and we know that we need to ramp up production of it to meet the targets.
In the meantime, what we have been doing, which is both enabled and allowed for under the Greenhouse Gas Reduction Regulation, is to purchase renewable natural gas that is produced and used in other jurisdictions. That is a form of emissions trading that is allowed for by both international calculation and our own regulations. And of course, emission reduction globally is what we’re after. When we take credit for emission reduction from renewable natural gas, it is not taken credit for by the other jurisdiction. We, in fact, purchase that right.
R. Merrifield: I guess I’m a little perplexed, because according to a 2022 report that government helped commission…. It was actually modelling from Navius that was done by the B.C. Bioenergy Network, the government of B.C. and Fortis. They actually commissioned a report to estimate the maximum technical supply potential for renewable and low-carbon gases in B.C. The study found, and I’m quoting from the note that was delivered to the minister on May 9, 2022…. This was done under FOI. It says that the study found that there’s a limited supply of RNG and hydrogen in B.C., and RNG is particularly constrained.
It talks about how allowing B.C. utilities to source out-of-province notional RNG and hydrogen from other Canadian provinces and the U.S. poses challenges — that the RNG and hydrogen could be double counted across jurisdictions without due process.
Knowing that emissions would be 12 percent higher if we didn’t have “purchased and used in other jurisdictions” RNG yet these are also potentially being over counted, isn’t this just further proof that emissions targets and projections are just overly optimistic at this point?
Hon. G. Heyman: The report to which the member refers is exactly why we’ve been working on designing important measures to ensure verification. We anticipate bringing forward the greenhouse gas reduction standard for decision next year — early next year, ideally.
Along with that, we will bring forward a plan for verification of renewable natural gas purchases and use in other jurisdictions that could be counted in B.C., to ensure that there is no double counting and, in fact, that there is a registry of these to help ensure verification for the public.
R. Merrifield: This will be my last question before I turn it over to my colleague, just to ask a couple of questions.
I thank the minister for his answer, and I really appreciate that he has concerns over this as well. In talking with some of the RNG, as well as renewable fuels in general, like renewable diesel, producers, I’ve come to having some pretty grave concerns. We’ve got some great targets that are very high in terms of what we have to produce. I think that B.C. has really led the way in some of those cases.
Unfortunately, the rest of the world seems to be catching up with us to some extent. We’re seeing new measures being introduced in Washington and Oregon and California, as well as across Canada, with some of the renewable fuels, let’s say, for instance, and with that, we see a limitation in the report of RNG. We also have limitations on what we can produce in terms of renewable fuels here in B.C., because of some huge roadblocks.
This report stating the limitation and availability of RNG…. How is this going to actually affect the pricing to B.C.?
Hon. G. Heyman: As the member knows, one of the impacts on our ability to produce RNG, as well as a number of other things, is the impact of the Inflation Reduction Act in the United States, which contains huge subsidies for a variety of clean energy propositions in that country.
I’m not saying that’s a bad thing. As I’ve said, climate is a global problem, and having the U.S. return to a position of ambition on emission reductions is welcome news for all of us. What we are working on — we understand there are some uncertainties about price — as we develop our policies are mechanisms to address that.
One of the factors that’s included in every government screen on developing or refining energy policy is maintaining affordability for people and competitiveness for business.
T. Shypitka: Just a couple of questions on clarification here. The minister just talked about the U.S. Inflation Reduction Act and how that’s creating some uncertainty and — maybe, perhaps — some competitiveness issues here in B.C. and how we develop projects. About a year ago, back last May, the Parkland refinery and the ministry announced that a big $600 million project was coming to Parkland that was going to expand and produce low-carbon fuels.
Like I said, $600 million. And 40 percent of that was to come from low-carbon fuel credits, I believe, so that’s about $240 million worth. Sadly, that project was cancelled. The reasons why…. Some of it, the minister just stated: competitiveness of the renewable diesel is complex, including rising project costs, a lack of market certainty around emerging renewable fuels and, of course, as the minister just said, the U.S. Inflation Reduction Act, which he said is not necessarily a bad thing.
I guess that kind of mirrors what the Parliamentary Secretary for Rural Development stated: that he embraces the U.S. Inflation Reduction Act. But that killed the project here in B.C. We’re not becoming competitive enough, and the minister just alluded to that.
As that project had 40 percent of its project costs by compliance credits, did Parkland receive any compliance credits for this project prior to the cancellation?
Hon. G. Heyman: As I’m sure the member knows, the federal budget announced this week contains significant amounts of money that will be available to provinces for investment and incentive in clean energy and clean energy technologies. We are still analyzing that and in discussions.
I have been part of government-to-government trips to Ottawa and discussions there about how we can work together and how British Columbia can access federal funding and federal programs. We are in the process, now that we know what they’ve put in the budget, of analyzing what opportunities are there for British Columbia to advance some of our initiatives, both our economic and emission reduction initiatives, along the same lines as the Inflation Reduction Act.
Having said that, the Inflation Reduction Act also provides some opportunities for British Columbia, notwithstanding its impact on Parkland’s expansion plans. Among those are demands that will occur in the United States that, perhaps, are not filled by United States production or where B.C. tech companies can fill a gap as well as the creation of economies of scale.
Specifically to the question about Parkland’s credits, the answer is yes, but those are not for prospective credits or prospective RNG that they have not yet produced. That is for RNG that they are currently producing. To get the exact number for that…. That program is administered by EMLI. I’d refer the member to EMLI for the exact numbers.
T. Shypitka: Thanks to the minister for the answer. Of course, partnerships with the federal government are good. We want to see those happen, and we want to reduce our emissions, for sure, in a responsible way. We also want to be competitive in doing that.
I think, as the minister has said, once again, there may be some room — I think the key words there are “may be some room” — in the U.S. market or inside of what the U.S. Inflation Reduction Act provides. It’s a huge program. It’s $216 billion worth of tax credits. I can’t see a small jurisdictions like B.C. weaseling itself in on $216 billion worth of tax credits that are up for grabs, incentives for folks in the U.S. to produce renewable fuels. But I guess time will tell. I’m not super optimistic on that one.
I will go to EMLI on some of those more fine details.
I want to just clarify what the minister said on the tax credits. I guess the answer was yes. They did receive the 40 percent tax credits. Those tax credits now sit with Parkland. The minister also said that those are tax credits that are yet to be on the production of renewable gas. I’m not sure if I heard that right.
The project was granted 40 percent tax credits, for their costs, on a $600 million project. I’m sure any board chair would look at a project of $600 million…. “What kind of security? What kinds of costs are there? We’ve got 40 percent here provided to us through tax credits. That’s $240 million.” Then they weigh that out in a decision.
I would imagine those credits are with Parkland. So how does this work now? Do they hang on to those credits, to be used any way they see fit? Is this over and above what they’re yet to produce? How does that system work?
Hon. G. Heyman: What I can say is that the tax credit to which the member refers has, according to Parkland, been instrumental in them receiving and attracting investment that was used to put in place the infrastructure to produce the biofuels that they have been producing for some time. But it’s my understanding that the actual payment of a tax credit, for want of a better word, doesn’t take place until something is actually produced in terms of the expansion that the member was referencing.
But the low-carbon fuel standard, the memoranda and the agreements with respect to those are all governed by a statute in energy, mines and low-carbon innovation. We have not been directly involved in those in Environment, so I would refer the member to EMLI.
T. Shypitka: Two megatonnes of GHG reduction, 700,000 vehicles off the road — I’m sure this was on the minister’s radar. This was a very substantial project to bring renewable fuels to British Columbia to be used here in B.C. The details — I will go to the Minister of Energy and Mines on this, for sure. But I just wanted to reaffirm, then, what I heard: that the tax credits are based on what is produced on an ongoing basis, not in the future? What I was getting at….
I guess the question to the minister is: from what he knows, were the 40 percent tax credits that were received by Parkland…. Was that on the project that was going to come to fruition in 2026? The 700 million litres of renewable fuel would certainly register some tax credits. Can the minister tell me that that’s not the case? It wasn’t on what projected fuel was going to be. It was what Parkland had done up to that point.
Hon. G. Heyman: It’s in fact my understanding, and I want to emphasize the words “my understanding,” that the fuel credits would be an agreement to provide that tax credit for fuel as it’s produced. But again, for verification and certainty, I would encourage the member to ask that question of the Minister of Energy, Mines and Low Carbon Innovation.
R. Merrifield: Thank you, Minister, for those answers.
I want to just ask the minister to perhaps just get these questions on record. They don’t need to be answered right now. In fact, I would almost rather if I could arrange some form of a briefing with staff, if that’s possible.
In appendix 1 of the 2022 accountability report, all the numbers have now changed, and they’re not able to be directly compared to the CleanBC plan or to the roadmap. I would love to have some form of a technical briefing just on how those numbers have changed. There is a reference to them changing, but it’s unclear as to how they relate to the previous numbers, and it’s very difficult to actually compare an apple to an apple. It’s more like a mango to a banana at this point. If I could just have a briefing on that, that would be great.
I want to stay, though, on the renewable fuels, because I think this is a real key to some of where we go. In meeting with some of the producers, it has been noted that B.C. simply is not competitive at this point for them to come and produce in B.C. And production in B.C. is really important because, as the minister noted, the rest of the world is catching up, and we’ve got a very big competitor in the U.S. now with their IRA plan. That is going to put a tremendous amount of pressure on renewable fuels and the availability of those sources.
I know that my colleague yesterday canvassed already the whole OBPS system planning that was announced two weeks ago. I’ve reviewed Hansard and looked at the minister’s answers, but my question is just one, and that is: why would we not just use the Canadian system that’s already in place? Would that not give B.C. at least a comparable advantage to all of the other jurisdictions across Canada that are using the Canadian system?
Hon. G. Heyman: British Columbia, I think, has always benefited from having our own designed carbon tax programs that could respond to the needs of British Columbians, the needs of British Columbia industry in a way that made sense, whether it was our newly redesigned climate action tax credit, our support for industries, our program for industry or the industry fund that co-capitalizes emission reduction technologies with industry.
There isn’t an analogue for in other jurisdictions in Canada, that I know of. It was important to us to have a system that met our needs for emission reduction, met our needs for supporting industry and was acceptable within the federal framework.
British Columbia has had a carbon tax since 2008. That was brought in by the member opposite’s party when they were in government. It was the only carbon tax in Canada for many years. Until last year, we had the highest carbon price in Canada. B.C. industry, as a result, had lowered their emissions substantially, and still remain competitive. That’s witnessed by the fact that B.C. has the strongest — or among the strongest, if not the strongest — economy in Canada.
[J. Routledge in the chair.]
R. Merrifield: I’m listening to the minister, and part of what he’s saying, I can absolutely, wholeheartedly agree with. It was our party that brought in the carbon tax, and what a good job we did.
The other parts break down a little bit for me. That is because the rest of the country has caught up. The rest of the country has caught up with carbon tax. The rest of the country has caught up with their emissions goals. The rest of the country has caught up with trying to lower those emissions.
I will, with all due respect to the minister, say that what I’m hearing from industry is we are no longer competitive. We are seeing the renewable fuels, especially companies, say “We will not build in B.C.” because they do not have a competitive advantage anymore.
They are building in other jurisdictions across Canada. They are building in other jurisdictions in the U.S. Obviously, we have already acknowledged that trying to go head to head with the IRA is going to be very difficult.
Having said that, going head to head with our neighbours in Alberta — I’d sure like to win that one, and right now we’re not. The minister had talked earlier about the iterative process that we’re about to embark on with the OBPS. Canada has already done that work. They’ve instituted it in 2019; they’ve reviewed it in 2022. They went out to industry. They have the modelling. They understand exactly where those thresholds are.
My question, again, to the minister is: why would we reinvent the wheel and risk being less competitive than other jurisdictions in Canada when we could adopt a system that is being used in other jurisdictions and actually signal to those producers: “Hey, we’re open for business”?
Hon. G. Heyman: When the B.C. Liberal government introduced the carbon tax, there was a lot of commentary about how, while the goals of carbon pricing and reducing emissions to fight climate change were laudable, it was impractical, it would result in a lack of competitiveness, and it would hurt B.C. business.
If you look back historically, I think the demonstration is that B.C. industry has done very well and continues to do very well. When our party took government, the carbon tax had been stagnant for a number of years, or frozen for a number of years. We embraced it as part of our climate plan and began increasing it, in advance of the federal government’s legislating their carbon tax.
We support the federal government’s introducing it. We’re a jurisdiction that is aligned with it willingly, and we continue to be aligned with it. But there are some factors that need to be considered in terms of whether we simply want to let the federal government walk into British Columbia space and administer the carbon pricing regime — as well as the use of all the revenues from the carbon pricing regime.
Under the federal output-based pricing system, only part of the revenue is used to fund emissions reduction programs for industry, but it requires facilities to apply, in a competitive process. Rather than British Columbia companies putting their proposals up for scrutiny against other British Columbia companies, they would now be effectively competing against industries across Canada.
I want to say this carefully — because I think we’ve received good support from the federal government in a number of ways — but I think British Columbians, in general, would recognize or believe that central Canada often takes precedence over projects that are granted by the federal government, due to their size. We don’t want to disadvantage British Columbian industries in that way. We can also control the amount of money we devote to the industry fund to help and co-capitalize emission reduction technology.
In short, a made-in-B.C. output-based pricing system ensures that all the decisions, about carbon tax revenue collected from industry in B.C., stay within British Columbia, within the province’s purview, and that any revenue recycling benefits the B.C. economy directly.
R. Merrifield: Thank you, Minister, for the answer. In canvassing both my federal counterparts and some of the information on the Canadian system, I think that the advantage that B.C. held is largely fading away, and I think that the risk of us not being competitive on this particular front is very high. Yes, we did introduce the low-carbon fuel standard, and that is increasing significantly, along with the rest of Canada’s.
We have a need in B.C. for producers of renewable fuels. Right now they are saying that B.C. is not competitive with the rest of Canada. As Alberta demand increases, as Saskatchewan, Manitoba, Ontario, Quebec and everyone else increases their need for those low-carbon fuels, B.C. risks having that train leave the station fully.
The risks are very large. One, we could end up paying more than anyone else in Canada. We could end up paying more than anyone else in North America. I’m not talking about our current fuel taxes and carbon taxes, which are also more than anyone else in North America currently. But we could continue to pay more — actually, that could go exponentially more — to just try and compete and get that demand from other provinces, where it is being produced.
The other risk, which I think is even greater than us paying too much money — I shudder to even say that — is that we would not have any, that we would not be able to actually meet those targets and meet those emission goals. As I stated at the very beginning, our job, even in this process, is to try and figure out how we can best meet those targets. It is in the best interests of our community, and it is in the best interests of our province.
My question again is: how will the minister ensure that the OBPS made-in-B.C. model is actually more competitive than the rest of Canada?
Hon. G. Heyman: First of all, it’s not accurate that investment in biofuels is drying up in British Columbia. It has faced some challenges in some places, but there’s an expansion going on in Prince George right now. FortisBC is signing contracts for purchase all the time. We’re continuing to look at ways to build up that sector of the energy industry, and we’ll continue to do that. It’s one of the reasons we have a major projects and clean energy office being established in the Ministry of Energy, Mines and Low Carbon Innovation that was part of our new energy framework.
Also, the member asked: how are we going to ensure that British Columbia remains as competitive with our OBPS system as we would be under the federal government? The answer to that is by maintaining control of both our pricing system and the ability to distribute the revenue from it. We have an industry fund funded by carbon tax revenue that we invest with B.C. industries and emission-reducing technologies. It’s made a huge difference. It’s resulted in a lot of capital being made available to B.C. industry.
The federal government doesn’t actually have a program like that based on carbon tax funds. They have a number of other programs. As I mentioned previously, while British Columbia and British Columbian industry has had some success in accessing that, I would argue it’s nowhere near the amount of success we should have had on a pro rata basis, for one reason or another.
It’s probably not productive for me to speculate, but if we were to simply adopt the Canadian output-based pricing system and say, “Come on in; run the system for us,” we would not have a CleanBC program for industry, because we would have no funds from the carbon tax to devote to it. We would not have the ability to make a variety of adjustments to our carbon pricing system, tailoring it for emissions-intensive trade-exposed industry, tailoring it for low- and middle-income British Columbians who need more support than extremely wealthy British Columbians.
None of those are features of the federal system, and they’re not features that we want to introduce into ours — the absence of which are not features we want to introduce into ours.
R. Merrifield: Oh, that was my big gotcha moment. I’m just joking.
Let’s talk about carbon tax a little bit more here. I’ll wear both of both of my critic role hats here.
Acknowledged within the budget is actually, and I’ll just quote it, is the fact that single women, “female-led households have a higher carbon tax burden than single-income male-led households. Research suggests that B.C.’s carbon tax has no significant difference in direct carbon tax paid by rural versus urban households. However, rural communities may have higher indirect carbon tax burdens…through higher shipping costs resulting in a higher price of goods, and colder regions of the province may have higher carbon tax costs for home heating.”
There is certainly a very disproportionate effect of our carbon tax, so while the minister talks about maintaining controls and making sure that we can have the revenues contribute back into B.C., one of my biggest concerns is that our carbon tax is one of the highest in all of Canada.
When I look again at comparing us to other jurisdictions across Canada — and I did this last year with the minister as well — I’m using what is net. This assumes the rebates. It assumes a two-income family of four. This year B.C. is going to pay, both in fuel and carbon combined, $700 per family. Alberta, on the other hand, is going to expect a rebate of $957. Saskatchewan will get a rebate of $717; Manitoba, a rebate of $383; Ontario, a rebate of $616. In Quebec, they still get to pay $288.
So when I look, and I could read them all out, I can tell you that we are double what any other jurisdiction across Canada is paying in net tax, after we have had the climate change tax credit.
My question to the minister. Last year the Bank of Canada’s governor, Tiff Macklem, advised the federal committee that the federal carbon tax increased inflation by 0.4 percent. We know that the carbon tax rate here in B.C. goes up in just two days to $65 a tonne of carbon dioxide–equivalent emissions, which is April 1, and it will add an extra three cents more per litre of gasoline. Could the minister tell us how much British Columbia’s carbon tax is increasing inflation by?
Hon. G. Heyman: Unfortunately, Member, you’re mixing apples and oranges or mangoes and bananas. On the one hand, you say B.C. residents pay the highest carbon tax in Canada. B.C. residents actually pay exactly the same carbon tax per tonne as every other province in Canada now that the federal system has caught up to British Columbia.
You’re incorrect in another regard. You claim that people in certain provinces receive more in a carbon tax rebate from the federal government than British Columbians do. There’s a reason for that. There are certain provinces that have not met the federal carbon pricing requirements. Therefore, the federal system is, in fact, in place in those provinces, and it does apply to them.
Some of that is returned through what’s called the federal climate action incentive payment. That returns about 90 percent of the revenues collected from households and businesses to the households in that province by way of a tax credit that is applied absolutely equally to every citizen. It’s the same no matter what your earnings are.
The reason that it’s higher in some of those provinces is because they have higher per-capita emissions. They actually pay more carbon tax and get more back, but they are not necessarily net better off than British Columbians.
One of the reasons that we administer our own carbon tax and provide the climate action tax credit to low- and moderate-income individuals and families to offset the costs to those families is so, in fact, we can income test it. The point the member made earlier was that some demographics are impacted differentially to others — for instance, single women. We are able to account for that by administering our own system and ensuring that people who have a greater need receive more money than those who have minimal need or, in some cases, no need.
Under our new system, something like 80 percent of British Columbians will get a rebate. A fairly significant percentage of those will likely receive more rebate than they pay in carbon tax.
In short, where people get more money back, in provinces where the federal system applies, it’s because they’re paying more in the first place. In the interests of more equitability and ensuring that disadvantaged demographics are supported more by government…. We can only do that by retaining control of our own system. The federal system, in my opinion and, I think, the opinion of British Columbians, frankly, is flawed in that it just gives back a flat rate to absolutely everybody.
Now, the actual specific question the member asked is: what will the impact of the carbon tax increase be on the cost of living? I’ll refer that question to the Ministry of Finance. They’re the ones who do that kind of number crunching and modelling.
R. Merrifield: Thank you to the minister for the answer. It is based on the rest of Canada catching up. I was actually describing the net. This is the net fuel plus carbon tax, less any rebates that are given to — and I was very specific — a family of four with two incomes. Those numbers are what they are receiving across Canada.
As the minister said, we are being charged what everyone else is. We’re simply not seeing the same rebates in the way that the rest of Canada is. British Columbians are, indeed, netting the highest cost in all of Canada when it comes to paying carbon tax.
I’ll ask my question. I would love to hear how the minister would describe a single-family household led by a female living in rural British Columbia receiving a higher tax credit.
Hon. G. Heyman: We’re having a long discussion back here about exactly what the question the member asked was. Maybe it’s better to just ask the member to repeat the question. What I heard the member say is: “How would the minister describe a single-family household in northern B.C.?” But I don’t know how to answer that question, so I’ll ask the member to restate the question.
R. Merrifield: Actually, I was asking because I was comparing and saying that we pay the highest carbon tax. The minister’s answer, the response back, was: “Well, we get to give it out disproportionately.” The disproportionate payment of carbon tax is actually in single-income households that are female-run and that are in rural communities. My question to the minister was: “Can he describe how that single-income, female-run family, living in rural B.C., would actually receive more of the tax credits?”
Hon. G. Heyman: While I don’t have figures that break it down by region or gender, I can say that for a single parent with one child in British Columbia, they are paying the second-lowest tax in all of Canada.
R. Merrifield: I think that the beginning of the minister’s answer is actually my biggest concern. The minister can’t break it down by region or gender. But the issue is that the carbon tax is being disproportionately paid, based on region and gender.
The fact that it isn’t being redistributed in a way that is meaningful to those that are paying the highest prices is very disconcerting.
If the carbon tax is contributing 0.4 percent right now, at the current $50 per tonne of the total inflation, how are British Columbians going to bear three times this amount?
By inference, if I take that 0.4 percent that Tiff Macklem gave and look at where that’s going all the way to $170 per tonne, that actually will be contributing 1.36 percent of inflation. Canada is trying to keep our inflation number to 2 percent. How will that ever be a possibility with that amount of it coming just from carbon tax costs alone?
Hon. G. Heyman: Again, I would refer questions about impact on the cost of living in terms of actual quantification of the numbers to the Ministry of Finance. That is their mandate. They have the analysts who do that work.
What I will say is that the problem with the member’s premise is that the member is looking at one tax in isolation, combined with the climate action tax credit or with the federal rebate. But what is missing is, again…. This goes to the point that when British Columbia retains control of our carbon tax revenues and our programs, we have the ability to target how that money is spent.
In B.C.’s case, we target it in a number of very productive, impactful and ultimately cost-of-living-reducing ways, whether it is continuing incentives for home energy efficiency improvements, for rebates for low-emission vehicles or no-emission vehicles; whether it is reducing certain taxes on energy efficiency like provincial sales tax on energy efficiency measures; or whether it is significant investment in public transit and active transportation that allow people to get out of their cars and both be healthier and save money while saving emissions.
Those all impact people’s cost of living and their ability to offset the impacts of the carbon tax, which is exactly what we want the program to do. We don’t want it to be a punishment. We want it to be an incentive. Then we want to use the money to assist the people who need it most.
By that, I don’t mean a narrow slice. I mean about 80 percent of British Columbians having the money to invest in the things that ultimately will relieve them from paying as much carbon tax but will also relieve them from paying the high cost of fossil fuels for both home heating as well as for transportation. Those all ultimately lead to a reduction in the cost of living.
R. Merrifield: Thank you, Minister. I fear that you’re proving my point.
You gave some great examples of active transportation. I love using active transportation or transit solutions when I’m in the Lower Mainland. That is exactly the reason why people living in a high-density urban area pay less carbon tax than the single mom with two kids trying to get them to soccer in Quesnel or the single mom with four kids trying to get them to all of their schools in Kelowna.
We don’t have the same climate that allows us to ride bikes all year long. We have far more hills and mountains, which we have to get up, to get to our living environments. We don’t have transit systems that actually allow us to utilize them with any certainty or with ease.
Just a small example: it would take my kids an hour and 40 minutes on a bus to get to university. That’s simply not going to happen. Yet they, with tears in their eyes, have talked to me about trying to fill up their gas tank and how the only reason that they work is to actually get to and from university on a daily basis.
Our carbon tax, the made-in-B.C. model that the minister keeps referencing, is disproportionately paid by those who can least afford it and have the fewest options outside of that. It’s about to go postal, in terms of the cost.
The minister has talked about the 80 percent that are going to get a rebate. Again I will remind the minister that we have the highest net cost in all of Canada. That is about to triple. So the made-in-Canada model is looking pretty sweet to me right now — where it’s just giving back inequality to all of the residents, rather than picking and choosing who gets to win from it and who gets to lose, because there are no other options for them.
As someone who has built a lot of houses in my lifetime, I can tell you that you have to put a dual system in. You cannot just have a heat pump in a community that goes to minus 30 in the winter. You will have to freeze, because that system will not be able to keep up when you hit the extreme temperatures that some of our communities face or endure.
To the minister’s point, yes, it’s very lucrative. In the budget this year, we’ve got $2.8 billion in carbon tax revenue. It’s almost 5 percent of the total revenue that’s going to be collected from all of B.C., but there’s only planning for the spending of $757 million of that through the climate action tax credit.
My question to the minister: what is the rest of that $2.540 billion going to be spent on?
Hon. G. Heyman: Okay. First of all, I am going to suggest to the member, because a couple of the programs that are funded by carbon tax revenue are administered by our ministry and a number of others aren’t, the best place to kind of get an overall wrap-up of how the dollars are expended would be in Ministry of Finance estimates.
Among the programs that are funded from the carbon tax: the climate action tax credit, as the member noted; the CleanBC program for industry, which includes both the incentive payments and the capitalization fund; the industry fund; the local government climate action program; the commercial vehicle pilots program; better homes and better buildings rebates; the zero-emission vehicle rebates; investments in active transportation; investments in the climate preparedness and adaptation strategy; investments in climate resilience and emergency response.
R. Merrifield: Thank you, Minister, for the answer to the question.
I was trying to write down everything that you were saying, and I think I got most of them. And even if I used round numbers to add up everything that you had just mentioned, we’re at about — here’s my mental math — $641 million out of the $2 billion additional funds that are collected.
I actually double counted. So it’s out of the $2.8 billion, because I’d actually already acknowledged the tax credit.
That is a very small amount — $641 million out of the $2.8 billion that is collected, that is under the minister’s purview. And this number is actually going to climb. Carbon tax revenues, in 2024 and 2025, climb to $3 billion and then almost $4 billion, respectively.
Government states online: “New revenues generated from increasing the carbon tax will be used to,” among other things, “provide carbon tax relief and protect affordability.” Budget 2023 states: “New carbon pricing revenues will be returned through the climate action tax credit.” But that’s only $340 million of the $2.8 billion this year and the $3 billion and $3.38 billion in subsequent years.
I’m trying to combine questions because I see how long it’s taking for these ones.
Budget 2023 also states: “As carbon tax rates increase, B.C. will increase the amounts paid to adults and children and raise the threshold for eligibility” — and this is where I’m going to contradict one of the minister’s former answers — “with the intent of providing a full or partial credit to 80 percent of households by….” Not currently. Eighty percent of households today do not get that tax credit. It’s by 2030.
So 2030 is seven years away, but British Columbians are experiencing inflation today. British Columbians — 44 percent of them are $200 away from absolute insolvency or bankruptcy. I’ve got that 28 percent of women are out of money. That’s an Ipsos-Reid poll that was done just two months ago.
I’ll give the minister the actual statistic on how many British Columbian families will receive a rebate. It’s 26.2 percent in this calendar year. That’s 75ish percent of families that will not be seeing a rebate. So when I read those numbers…. I hope it’s somewhat a sounding of an alarm bell that British Columbians are literally bearing the weight of our made-in-B.C. carbon tax plan.
I will go back to what the minister said earlier: that when we brought it in, in 2008, it was revenue neutral. There was no $2.08 billion going into general revenues and being spent at the whim of government. It was accounted for. It was stipulated as to how it was getting back into the hands of families.
Right now British Columbians are paying more than anywhere else in Canada. I would posit that’s one of the reasons our made-in-B.C. carbon…. Our carbon tax is actually one of the reasons the B.C. inflation rate was higher than the rest of Canada for the last seven months and counting. We are consistently outpacing all of Canada. Even on the decline, we’re still higher than the rest of Canada.
I want to give you an example, just real-life terms of how this applies. I’ve been working with this senior couple. They’re retired. They live here on the Island. They helped me out. They were trying to explain to me the burden of tax and the burden of the carbon tax specifically.
They started sending me their bills for carbon tax off of their FortisBC bills. The total cost of gas is $57 for them, but their B.C. carbon tax is actually $28. That $28 will become $100 as the carbon tax goes up. That $100 is not a once-a-year fee. That $100 is per month.
This couple doesn’t have $100 per month to spend. The single mom living in rural B.C. doesn’t have the $150 a month, the $200 a month to spend.
My question to the minister is this. Last year I asked the minister: “British Columbia pays more than double what any other province does” in carbon tax and fuel tax net. “How does the minister answer to that?”
I won’t do the whole answer. Part of the minister’s answer was: “But British Columbians also have made it clear that they want the government to take action on climate change.” Basically, inferring that the cost was what it was going to take for action on climate change.
I’m going to ask the minister again, in 2023, now: what do you say to the 44 percent of British Columbians who are $200 away from insolvency to explain why they pay the highest amount of net carbon and fuel tax in Canada? At what point will the minister consider relief?
Hon. G. Heyman: In the interests of time, I’m going to give a partial answer and refer the member to Finance for a more fulsome answer.
First of all, the member said that only 22 percent of families receive the climate action tax credit. That’s not entirely accurate. In fact, it’s not accurate at all. Fifty-nine percent of individuals receive the full climate action tax credit, and 22 percent of families receive the full climate action tax credit. A greater percentage would receive somewhere along the scale of the climate action tax credit, according to income. I would refer the member to Finance to get a more detailed breakdown of that, because they have those numbers.
The member asked me what I would say to a northern or rural family that is struggling. What I would say, first of all, is that our government will continue to look for ways to help you with affordability in a variety of measures. I would also say that overall, for a single parent with one child earning $60,000 a year, the Canadian average total tax is $9,543, and the B.C. total tax $7,375, or 25 percent less than the Canadian average.
[K. Greene in the chair.]
E. Ross: Forgive me. I’m going to take you down memory lane for a while, okay. The recent Cedar announcement actually brought me back to the days when we brought the LNG idea to B.C. back in 2004. Everything that we’re talking about here today in the B.C. Legislature and all of the announcements were the result of all that work that was done back in those early days, including the conversation about electric drives versus gas-fired drives.
In fact, the way we got into that discussion in the first place was talking to Chevron and LNG Canada and really encouraging them to go with electric drives. The answer we got back then was no, for two reasons. One, it had to be inside the fence power, because it had to be 100 percent reliable. At the end of the day, we went to our people and told them we actually agree with them. These facilities are too big to consider a blackout of power. Back then it was also told to us that the drives for facilities that big hadn’t been invented yet or haven’t been trialed. Remember, we’re going back to 2004.
We thought it was feasible for smaller projects like what Cedar turned out to be in one of its earlier examples of what it could look like. We knew that was possible. So trying to go back on everything that was done, including the consultations for the hydro upgrades from Prince George to Kitimat, not for Cedar but for LNG Canada and for Chevron at the time. I was party to them. So I’m fully aware of what’s got to be put in place if you want to electrify not just B.C., but electrify projects like Cedar LNG, and Nisg̱a’a’s LNG, for that matter.
We were talking about electrification of projects like Cedar and LNG Canada. It’s my understanding, for the smaller projects, we’re thinking about 20 percent of reductions in emissions for these smaller projects. For example, if Cedar LNG is going to emit 1.2 megatonnes of emissions per year, 80 percent of that is upstream. That was our recollection back in our day, but we fully expected to electrify Cedar LNG even back in the days when we first started thinking about this.
We also wondered how this electrification was going to work, and there are many versions of how it could work with B.C. Hydro — a complete new line, which we actually supported, or an upgrade to the existing line, which we supported. In fact, our council stood down on the accommodations in terms of the benefits coming to us. We just thought: “We’re not interested in the contracts, the training, the revenue-sharing.” We just want the lines built, because we wanted the LNG to actually be built.
In the context of this, we knew that across B.C. there were many related projects that were happening to actually make this LNG dream a reality, and other projects, for that matter. One of the projects we kept an eye on was the northwest transmission line up to northern B.C. from a substation in Skeena. It was to electrify the potential, in terms of economic activity, up in northern B.C., and it got accomplished. But it was through many consultations and accommodation agreements with First Nations. One was with Kitsumkalum. Kitsumkalum signed an accommodation agreement with B.C. Hydro at the time.
I’m not asking for anything coming back directly from B.C. Hydro, because I’m suspecting that the new hydro task force that will accelerate the electrification of B.C.’s economy will include looking at different sources of clean energy. I know the government’s got to spend some time in terms of putting some substance to those announcements that were related to Cedar LNG.
But I think it’s everybody’s assumption that clean energy projects will be back on the table, especially when you’re talking about regional projects like what’s happening in Skeena and up in Nisg̱a’a.
Don Roberts, a chief councillor who just got recently elected there last week as well, signed this agreement in 2012. Basically, what it was, was that in exchange for his support for the northwest transmission line, the Kitsumkalum Band agreed not only to some type of revenue agreement with the province, but also agreed to sit down with B.C. Hydro and negotiate the potential for a 15 megawatt project between B.C. Hydro and the Kitsumkalum First Nation.
There were many things talked about, but there was one clause that stuck out, jumped out at me. That’s energy development, 2.3, subsection (b): that for any project submission by a First Nation, B.C. Hydro will recognize the value of locally sourced power to serve new loads anticipated in the northwest region.
Now, the biggest loads I can see are Nisg̱a’a LNG, Cedar LNG and LNG Canada, phase 2, assuming that LNG Canada phase 1 is already agreed upon — that that will be gas turbines. But I’ll clarify a lot of that in a follow-up letter.
In terms of this agreement, it was a couple of years ago that Chief Councillor Don Roberts came to my office and said that B.C. Hydro basically reneged on this deal. This is a rights and accommodation agreement. It’s ultimately the Crown’s duty to ensure that rights and title are accommodated.
Now, yes, you could have delegated this to an arm of government, which was done in this example here. At the end of the day, it was fully expected by the Kitsumkalum Band that they’d be able to develop this clean energy project. They were quite disappointed, quite angry, that they were actually told no.
But in terms of the new agreements and the new announcements made in relation to Cedar, especially the ones with the clean energy initiatives that will allow the province to green-light fossil fuel projects, I thought this agreement could be put back on the table.
First Nations want to electrify the economy, just like everybody else. But they also want to see some type of economic activity going back to them to relieve poverty and to get them away from the Indian Act.
I’ll understand if the minister can’t answer this in its entirety right now, because you’ve still got to go back and work out the substance of these announcements. But I just want to flag this for the minister that Chief Don Roberts has already disclosed to me that the talks for the electrification of the hydro line going from Prince George to Kitimat in anticipation for Cedar LNG — he’s not interested because the government has not even honoured the first agreement in regards to the northwest transmission line. So why would he do it again?
If he’s anything like me, this was probably the third kick at the can for him. He thought that he was really doing the province a favour, while working out something for his own people.
Now, I understand IBAs. I understand them. They’re not really legally binding, especially when you look at some of the wording where maybe it’s “best efforts” or “we’ll do everything we can to look at this.” But a First Nation doesn’t think like that. A First Nation thinks that if you sign an agreement, you shake your hand, then you’ve got to live up to that agreement.
So there are a lot of emissions that have to be addressed in terms of Cedar LNG, LNG Canada and Nisg̱a’a. I think a lot of the First Nations there that had clean energy projects back in the day are more than willing to put these back on the table and then really get them seriously entertained by the government.
Is the Kitsumkalum energy purchase agreement that was signed in 2014…? Will that be considered for the energy action plan moving forward in relation to Nisg̱a’a LNG, LNG Canada, phase 2, as well as Haisla Cedar LNG?
Hon. G. Heyman: Thank you to the member for Skeena, my old home riding — as a resident, not as an MLA — for raising an important issue through this question. I can’t answer the specifics of the question, for a couple of reasons. The agreement was with B.C. Hydro, and B.C. Hydro reports to a different ministry, although I have no reason to question the member’s assertions.
Also, with respect to the B.C. Hydro task force, the terms of reference and the makeup of the task force are being finalized. It is a matter of some urgency for government. I can’t answer definitively what the decisions or recommendations of the task force will be, but what I can say is that we know we need significant electrification. What B.C. Hydro was calling their alternate energy scenario actually, I believe, needs to be our central energy scenario. That’s the one that aligns with CleanBC. In fact, in some ways, the roadmap may be even more ambitious.
When we announced the new energy action framework and the B.C. Hydro task force, we were very clear in our announcement that part of the work will be to ensure that we look for opportunities for Indigenous partnerships, First Nations partnerships, including equity partnerships, in energy generation, electricity generation and electricity transmission. With that as a guiding commitment, I think we should see the decisions flow from that in future.
Chair, could I ask for a very short recess?
The Chair: We’ll have a short recess.
The committee recessed from 4:03 p.m. to 4:07 p.m.
[K. Greene in the chair.]
The Chair: I call Committee of Supply, Section C, back to order. We’re currently considering the budget estimates for the Ministry of Environment and Climate Change Strategy.
R. Merrifield: I’m going to carry on and talk a little bit more about our electricity needs.
As we know, LNG Canada has said that they’re willing to electrify their turbines if B.C. Hydro is able to provide adequate electricity. Last year in estimates, we canvassed how much the LNG Canada phase 1 was going to contribute to the overall emissions of B.C. I think, if I recall correctly, it was 3.4 megatonnes of CO2e.
I’ll read the quote from Jason Klein, who’s the CEO of LNG Canada. He says: “We can’t do an immediate and wholesale electrification of the plant and pipeline. It’s not possible today, because the transmission infrastructure just isn’t there.” Instead, we’re going to see that LNG Canada is going to build phase 2 now with natural gas–powered turbines and switch to electric motors as more power becomes available.
B.C. is already forecast — as we’ve canvassed, the minister and I — to miss its 2025 emissions goals by 15 percent. What impact will this have on B.C.’s long-term emission targets?
Hon. G. Heyman: Well, as the member knows, LNG Canada has not made a final investment decision on phase 2. Irrespective of that, the new energy action framework includes a commitment to a regulatory cap on GHG emissions for the oil and gas sector, to align with our sectoral target. That will apply to everything in the sector. In addition, so will the output-based pricing system.
R. Merrifield: What I understand from the minister’s answer is that LNG Canada is going to be subject to the new guidelines of the emissions cap, as well as the OBPS system that will be determined over the course of the next two years.
I’m going to take it in a little bit of a different tack. In my last question, I’ve just described a company that is completely, wholeheartedly willing to do things in a way that reduces their emissions and is done, let’s say, under that cap, but they don’t have the electricity that’s required to do that.
My next question will be: how long will it take for B.C. Hydro to complete new power transmission lines so that LNG Canada phase 2 could be electrified?
Hon. G. Heyman: B.C. Hydro and electricity, generally, is in the mandate of the Ministry of Energy, Mines and Low Carbon Innovation. I’d refer the member to that ministry for the question.
R. Merrifield: Thanks, Minister.
I’m going to press further here, because the minister and I actually canvassed this last year. I can actually quote from our estimates process and go there. If the minister needs me to talk through that, I certainly can.
But I’m not asking questions specific to just the running of B.C. Hydro. I’m actually asking questions that are specific to the electricity needs of the resource sector that we are trying desperately to lower the emissions of. I would argue that is the Ministry of Environment’s purview. That is what the Ministry of Environment actually is required to do with the emissions targets.
I’ll go back and ask the question, maybe more in a general term. That is: how much capacity is Site C going to have in terms of electricity for the resource sector to meet their emissions target goals?
Hon. G. Heyman: Again, the purpose of the B.C. Hydro task force and the commitment of the new energy action framework was to work quickly to accelerate the electrification of British Columbia, and particularly British Columbian industries, so that we can meet our CleanBC targets.
That is the purpose of setting it up. It is going to begin work very shortly but has not yet done so, as the makeup and the terms of reference are being developed. But again, the lead ministry for the B.C. Hydro task force and B.C. Hydro is EMLI.
As for Site C, when it comes online, it will produce about 1.1 megawatts, if my memory serves me correctly. That’s not absolutely precise but close. While we anticipate that will significantly help B.C. in meeting electrification needs, we do not foresee that that will be the only source of electricity necessary to meet our targets. There may be many other things that come into play — like demand-side management, energy efficiency, new technologies — but we still expect that more than Site C will be needed.
R. Merrifield: Thank you, Minister, for the answer to that question.
I think I’m going to drill down more into a certain aspect of your answer there, and that is on the electrification needs to meet our emissions goals.
Obviously, CleanBC sets out quite strict targets in terms of emissions, etc. One of those ways that we can meet those emissions targets is because we have hydroelectricity, because we have clean electricity. But there was a 2018 white paper on electrifying key sectors of B.C.’s economy that was modelled…. It modelled a provincial LNG industry of two large, one medium, two smaller LNG and then all sorts of different models. It found that electrifying all plants would reduce greenhouse gas emissions by 62 percent, while increasing the overall provincial power needs by 72 percent.
So my question to the minister is: why has it taken five years to actually acknowledge that we don’t have enough capacity for all that is needed on the electrification side in order to meet our emissions targets and is only now in the process of setting up the task force or any of the other measures to accelerate the electrification of B.C.’s economy within the emission goals of this ministry?
Hon. G. Heyman: First, let me correct the record of my previous statement. I said 1.1 megawatts; I meant 1.1 gigawatts for Site C, 1,100 megawatts.
In terms of the member’s question about the response to the white paper, I would refer that question to the ministry responsible, Energy, Mines and Low Carbon Innovation.
R. Merrifield: The CleanBC plan relies heavily on electrification. In fact, it’s probably one of the greatest limiting reagents. We’ve canvassed even the electric vehicles that we have been proud of, and how fast — and actually exceeding targets and guidelines — that we’ve been able to convert some of our new car purchases to those electric cars. How does the minister involve himself with ensuring that we have the electricity needs to meet our emissions targets in the CleanBC plan?
Hon. G. Heyman: With respect to climate change and climate policy, we are effectively a policy ministry, with the implementation statutes and the implementation tools resident in a number of other ministries, in this case, the Ministry of Energy, Mines and Low Carbon Innovation.
So the way that I and my ministry involve ourselves in the electrification necessary to meet our CleanBC targets is we do modelling based on the plan as we’ve laid it out, as well as any amendments we bring to the plan through an iterative process, and we model what we believe the electricity needs in a particular year or decade will be or lining up with what the particular target will be.
We provide that information to Energy, Mines and Low Carbon Innovation. They are the ministry with the statutory ability to move those issues forward. We support. We provide analysis and data and projections. We assist in any way we can.
R. Merrifield: Thank you to the minister. I’m going to actually go through last year’s estimates.
Last year during our estimates, I asked the minister about our electricity needs. I almost quoted the minister in my previous question, because he said last year:
“Under the CleanBC plan, electrification is one — and a very important — primary measure to reduce emissions, particularly in transportation and home energy.”
He went on and talked about how energy efficiency is also a key measure. He then says further, on the demand for electricity:
“In B.C. Hydro’s integrated resource plan, they include a scenario in which aggressive electrification increases electricity demand. That would be consistent with the CleanBC Roadmap. B.C. Hydro has developed a contingency resource plan that would allow it to meet this increase in demand and identified several near-term actions to ensure that it would have the ability to act on the plan.
“That plan is currently before the B.C. Utilities Commission, and the BCUC will decide, after some public process, whether to approve the latest integrated resource plan from B.C. Hydro.”
The minister also further stated, when pressed again:
“With respect to the accessibility of enough electricity to meet the demands of the CleanBC Roadmap to 2030, it is my understanding that B.C. Hydro’s contingency plan, which is also known as the accelerated electrification scenario, before the B.C. Utilities Commission, is built around the CleanBC Roadmap to 2030 and meeting those demands.”
Was the minister incorrect in his assessment of the situation?
Hon. G. Heyman: Those were relevant comments a year ago, and they’re still relevant comments today. The accelerated electrification scenario of B.C. Hydro — which is the scenario to which the member referred; it’s sometimes referred to as an alternate electrification scenario — is built around meeting our legislated emission reduction targets in B.C. for both 2030 and 2040.
It also includes energy efficiency measures. This is interesting. The 2030 energy efficiency measures, in the accelerated electrification scenario, account for about a third of the capacity of Site C. So it’s also fairly substantial. You have to take the two together — new supply as well as energy efficiency.
R. Merrifield: There have been a number of different papers that have been written — very public and easily accessible. One from Clean Energy B.C. talks about the electrification of B.C., assessing the economic and environmental benefits of extensive electrification in B.C. Just recently, a real brief commentary, that was written by Richard McCandless, in which he doesn’t just reference what’s happening today but he also references a report that was written for B.C. Hydro in 2017 that also sounded the alarm bell that we don’t have enough electricity.
Considering that we’ve intensified our electricity needs, even taking into consideration the efficiencies that the minister just spoke of, is the data incorrect that is leading us to the conclusion that we have enough electricity for the expansion of our economy right now?
Hon. G. Heyman: While I haven’t read the full analysis by Mr. McCandless, I’ve read an article describing it, but I don’t want to rely on the article. What I can say is that the modeling behind the statement I made moments ago that the accelerated electrification scenario of B.C. Hydro is sufficient to meet our 2030 and 2040 climate targets was done by the same company that modeled our 2030 and 2040 climate targets, Navius, using their GTech modeling — what’s the right word here? — scheme or methodology.
I think what Mr. McCandless is pointing out is that that’s the alternate or accelerated electrification scenario, which was not B.C. Hydro’s first choice. The purpose of the new energy action framework and the B.C. Hydro task force is to refocus and say that our primary scenario needs to be the one that aligns with our climate targets. In other words, the accelerated one. What can we do to move that forward quickly on an expedited timeline to ensure that we achieve that level of both new electrification as well as energy efficiency savings to provide the electricity that our plans require.
R. Merrifield: Has the minister considered at what point the capacity to produce electricity becomes the limiting reason for the CleanBC plan as well as the continuation and growth of our economy?
Hon. G. Heyman: I have considered it in the sense that I know that to achieve our climate targets, we need to use the accelerated electrification scenario. We need to move quickly, and that’s what the new energy action framework is about.
We need to supply electricity not just to meet our climate targets but also to meet our economic goals. We know, for instance, that B.C.… Having 98 percent renewable electricity, not all of our power usage — the member understands that not everything is electrified — is a tremendous advantage for British Columbians as well as for B.C. industry.
The fact…. The price on carbon, which we’ve had since 2008, did exactly what it was meant to do, which is to encourage industry to look for ways to decarbonize and lower emissions. It has put many B.C. exports into the enviable position of being able to provide low-carbon commodities and products and resources to the world at a time when the world is looking for that.
The more that we do for electrification and the more we electrify industry, the more that we intensify that advantage. Of course, while doing that, we need to ensure that we protect affordability for ratepayers and competitiveness for industry. If we do that and if we don’t leave it to too late, we will have the electricity we need to meet our targets as well as to make industry more productive and put us in a very enviable export position in a world that is now putting a premium on low-carbon products.
R. Merrifield: The minister introduces a little bit of an interesting comment in saying: if we don’t wait too long.
I remind the minister. Site C was in the 1970s, a brainchild, originally, and then just went through iteration after iteration, through multiple different governments that each took their own sort of approach to it. Then it was actually initiated under the B.C. Liberals, and we’ll hopefully have the ribbon cutting before we get back into government.
I do take note of all of the warning signs. I’ve just given an example of three different reports that have been written from 2017 to 2018 and reflections in 2022. We don’t have enough power for our emissions goals, for our resource sector, for our exports, for our economy, for our average citizens, who are just trying to do the right thing and electrify their homes and electrify their vehicles.
My question is on the task force. What sort of involvement will the Ministry of Environment have in making sure that those goals are stated and that they are upheld and that we look at things outside of B.C. Hydro to see if there are other aspects to our electrification that might not even be considered under their purview?
Hon. G. Heyman: The terms of reference and the makeup of the task force are not yet complete, so I can’t comment to a very great extent on that.
We have been involved, both my deputy and myself and my ministry. We anticipate being partners, going forward, in actually working with the task force to ensure that the needs of CleanBC and the needs of British Columbians and industry and emission reduction are front and centre in the considerations of the task force.
R. Merrifield: If the purpose of the task force is to find new clean electricity to help meet future electricity demand…. How will this task force actually contribute to helping them meet the current emissions reduction targets that are forecast to be missed in both 2025 and 2030?
Hon. G. Heyman: My memory of the announcement, and the materials that accompanied the announcement, was that we presented the B.C. Hydro task force in the context of accelerating the electrification of British Columbia industries and communities, in the context of a climate-aligned energy framework, and looking for opportunities for partnerships with Indigenous peoples in both the generation and transmission of electricity.
R. Merrifield: I’m just going to clarify. How does the answer that was just given actually help to meet the current emission reduction targets for 2025 and 2030, which we’re about to miss?
Hon. G. Heyman: First of all, the 2025 target, as the member knows, was an interim target meant to be a guidepost for us, to show us where we were succeeding, not succeeding as well as we’d like or need to do better. Clearly, that’s what the 2025 target is doing for us. We believe we are still on track to meet our 2030 target, which is legislated.
When I say the purpose of the B.C. Hydro task force is to accelerate the electrification of B.C. industry in the context of a climate-aligned energy framework…. A climate-aligned energy framework is meant to be shorthand for meeting our targets.
R. Merrifield: I missed the acronym there in CleanBC.
I wanted to go back to what the minister was saying just about the emissions targets. The minister just projected a tremendous amount of confidence in meeting the 2030 emissions targets. I don’t necessarily want to give the minister as much time in government as would be required to meet that target.
My question is out of curiosity. How does the minister intend to make up that gap, from being short 15 percent to meeting that target in only five years?
Hon. G. Heyman: Thank you to the member for the question. I look forward to still being in office in 2030 so that we can celebrate British Columbia meeting our emission reduction targets.
I will say that our modelling still shows us on track to meet our 2030 target. The member pointed out correctly…. We reported in our climate change accountability report that our modelling now had us at 97 percent because of some changes to the baseline number by the federal government.
We consider that to be within the margin of error and to be a number that we can close between now and 2030. The way we’re going to do that and why the modelling still gives us confidence we can meet the target is that it shows that there are areas where we need to improve the accessibility of some of our programs, to intensify our efforts to get new programs off the ground — for instance, for medium and heavy duty transportation, to accelerate the electrification of buildings.
We needed to deal with emissions from industry, and the oil and gas regulatory cap aligned around the sectoral targets is clearly a huge step forward for that. There’ll be more information coming about that in the near future, as we take mechanisms out for consultation with First Nations, with stakeholders, in the spring.
R. Merrifield: Recognizing that we’ll have to carry over until Monday, but…. I only have time enough for, probably, one more question. I’m going to try and combine two into one.
One is: under the four new measures that were introduced…. We’ve canvassed OBPS quite significantly, as well as the cap that’s being done. My ask is: where does the new clean energy projects office come in? Is that under the Ministry of Environment, or is that under a different ministry?
That’s question 1(a). Question 1(b) is: during last year’s estimates, the minister stated that the plan is to complete B.C.’s electric highway by 2024. Will this timeline still be met, and are we on track to complete in 2024?
Hon. G. Heyman: The major projects and clean energy office will reside in the Ministry of Energy, Mines and Low Carbon Innovation, although obviously, that minister and I work closely together because our files are quite interlinked. Our success is their success. Their success is our success and our government’s success.
As I understand it, we are on track to meet that target for the 2024 electric highway. But again, that implementation is in EMLI, and the member could ask for details in that set of estimates.
R. Merrifield: We are going to move on to carbon capture. Very exciting.
I can see ADM Standen over there eagerly waiting for my questions on parks. I’m coming.
Recently, there was an announcement with Geoscience B.C. as a means to actually capture some of the carbon that we’re producing right now. Some of the estimates for B.C. are quite considerable in how much could be captured. We’re talking in the thousands of megatonnes that could be captured over the course of years and decades.
My question to the minister is: how has this type of emissions reduction or capture been factored into the CleanBC and Roadmap to 2030 plans?
Hon. G. Heyman: In our modelling, we are actually intentionally very conservative about attributing emission reductions to new technologies. I think we modelled less than a megatonne into our 2030 plan, fully expecting that more would be achievable through technologies but that it was a bit presumptuous to assume that they were on a commercial scale before they were fully developed.
We followed with interest Geoscience B.C.’s work and the work of others involved in the carbon capture and storage space. We’ve been developing a regulatory framework for that as well so that when those opportunities arise, we can meet the standards that would be required, for instance, by the federal government for their tax credit programs. Having gone to Ottawa with some of my colleagues and lobbied hard for equal treatment to other parts of Canada, we were very pleased to note in the federal budget that B.C. will now be eligible for carbon capture, utilization and storage tax credits.
R. Merrifield: This is my last question now? Okay.
The minister referenced that he lobbied hard for the federal government to have tax credits associated with carbon capture. Having tax credits associated with carbon capture for, specifically, in-B.C. projects, or is that one of those where we could actually have tax credits in other jurisdictions that are capturing carbon for our own projects?
Hon. G. Heyman: The federal government already had a carbon capture, utilization and storage tax credit, but they weren’t extending it to British Columbia. So we lobbied that it be extended to British Columbia for British Columbia projects in B.C.
I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 4:47 p.m.