Fourth Session, 42nd Parliament (2023)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, April 4, 2023
Afternoon Sitting
Issue No. 299
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
TUESDAY, APRIL 4, 2023
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Routine Business
Introduction and
First Reading of Bills
BILL 18 — HAIDA NATION
RECOGNITION
ACT
Hon. M. Rankin presented a message from Her Honour the Lieutenant-Governor: a bill intituled Haida Nation Recognition Act.
Hon. M. Rankin: I am pleased to move that Bill 18, Haida Nation Recognition Act, be introduced and read a first time now.
This bill enables the province to recognize the Haida Nation’s inherent rights of governance and self-determination and recognizes the legal status of the Council of the Haida Nation. It will recognize that the Haida Nation will act through the Council of the Haida Nation as its governing body.
The Council of the Haida Nation will have the powers and capacities of a natural person. The legislation will also provide immunities to Haida public officials in the performance of their duties.
Lastly, the legislation will transfer agreements, assets, liabilities and other obligations from the society known as the Secretariat of the Haida Nation to the Council of the Haida Nation, and the society will be dissolved under the Societies Act.
The secretariat will continue to operate under the Council of the Haida Nation, consistent with the constitution of the Haida Nation.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. M. Rankin: I move that the bill be placed on the Orders of the Day for second reading at the next sitting of the House after today.
Bill 18, Haida Nation Recognition Act, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Orders of the Day
Hon. L. Beare: In this House, I call Committee of the Whole for Bill 11, Election Amendment Act.
In Committee A, I call continued debate on the Committee of Supply for Ministry of Labour.
In committee room C, I call continued debate on the Committee of Supply for the Ministry of Energy, Mines and Low Carbon Innovation.
Committee of the Whole House
BILL 11 — ELECTION
AMENDMENT ACT,
2023
(continued)
The House in Committee of the Whole (Section B) on Bill 11; R. Leonard in the chair.
The committee met at 1:37 p.m.
The Chair: I call Committee of the Whole to order.
We’re on Bill 11, Election Amendment Act.
On clause 1 (continued).
M. de Jong: Prior to the lunch break, we were exploring, as part of the general conversation here in section 1, the fact that the government has chosen not to incorporate a specific recommendation arising out of the Chief Electoral Officer’s report relating to foreign interference in B.C. elections. I just have a couple more questions about that. I think my colleague from Vancouver-Langara has several questions as well.
I just want to be clear about this, if we can, for the committee. I’m not suggesting that the Attorney General said this, but I do want to be clear. Did the Chief Electoral Officer ever suggest to the Attorney General that he would prefer not to have the recommendations contained in recommendation 2 and foreign influence dealt with? Did he ever make that specific request of the Attorney or the government?
J. Sims: Asking leave to make an introduction.
Leave granted.
Introductions by Members
J. Sims: It’s my great pleasure to introduce to you a friend who I met again today at lunch time, Professor Chaman Lal. Professor Chaman Lal is here visiting Surrey and the rest of the Lower Mainland. I have to say Surrey first.
He has a PhD in Hindi literature. That’s his speciality. He is a visiting professor at the University of the West Indies in Trinidad. He is a professor at JNU University in Delhi. He’s the honorary adviser of the Bhagat Singh Archives and Resource Centre. For those of you who don’t know, Bhagat Singh was one of the freedom fighters that is associated with India winning its independence.
He also is president of the JNU Teachers Association and very close to my heart because of his teaching credentials but also because of his commitment to social justice and building a more equal world for everyone.
Please help me welcome Professor Chaman Lal to the chambers.
K. Greene: I seek leave to make an introduction.
Leave granted.
K. Greene: I’d like to introduce Paul Bains. He’s a former vice-president of the Canadian Auto Workers Union. He’s also a human rights activist and union activist trying to make life better for all workers and our communities.
He’s also my constituent, and my son and his granddaughter are friends and classmates and enjoy each other’s company.
I’d just like to have everybody make him feel welcome.
M. Elmore: I seek leave for an introduction.
Leave granted.
M. Elmore: Joining the group today we have Santokh Dhesi, philanthropist, founder of the Shaheed Bhagat Singh five-kilometre run. We also have Iqbal Puruwal, president of the East Indian Defence Committee of British Columbia and also a founding member of the Shaheed Bhagat Singh five-kilometre run, and the understated but very accomplished Dr. Sandhu Singh, teacher, writer, translator.
And with my mentor — also a shout-out — Paul Bains. He’s responsible for me being here in this place. When I was a transit operator and an activist, a job steward in the Canadian Auto Workers, he was vice-president and took me under his wing. I attribute him and his leadership and guidance and support for me being here in this place.
I ask everyone to please give a very warm welcome for all our guests.
Debate Continued
Hon. N. Sharma: I don’t think the…. Definitely the process is not as clear as what the member’s question poses. It is a conversation with the Electoral Officer and the work that we have to do that factors in many things in the decision of prioritization. Keeping in mind that the next election in October ’24 will be the first provincial election that takes place with the 2019 voting modernization amendments in force and new electoral districts and the changes that we proposed here.
When we talk about prioritization of what goes through in each amendment, it has to factor in the discussions of the Chief Electoral Officer about administrative and operational things that flow from each of the decisions. It’s a more complicated decision-making process than yes or no for each of the recommendations in the report, but we’re always in conversation about what can be changed and fixed up over time.
I just wanted to add to this conversation about foreign interference with the various changes that have been made over time. The way foreign interference shows up, just like any interference in our election, is through direct actions, right, that would impact or show up in the electoral process. The way you combat it is by strengthening up your electoral process in general to make sure that there are restrictions in place that would limit that, and we’ve been doing that since 2017.
Of course it shows our commitment to our electoral process. In 2017 we restricted sponsorship and political donations to B.C. residents and Canadian citizens. There is a restriction in there that only Canadian citizens can run and hold office. There are strict limits on spending for third parties, which was more changes in 2017, and a whole bunch of transparency obligations.
A zero threshold for third parties to register if they’re going to be doing advertising, and this is another step. This is combating one particular way to interfere with election, which is through disinformation. Also in this bill is insurance that there’s independence between the third party advertisers and the candidates.
All of these as a whole since 2017 are a very strong response. I think we’re the first in Canada to take any action on disinformation in our election. It’s a strong response to make sure any actor that tries to interfere with our elections, whether they’re local or foreign, are going to face restrictions and barriers. It’s a continual process. We’ll always be thinking about different ways to change our elections in B.C.
M. de Jong: I’m gratified to hear and learn that the Attorney has some general thoughts on the issue of foreign interference that she’s prepared to share with the committee, and I expect my colleague from Vancouver-Langara will want to avail himself of the invitation to have more of that conversation. I pledge, though, to restrict my questions, and I intend to do that.
I am going to be particular about one aspect of this, and that is in the context of a report from the Chief Electoral Officer that informs this legislation that contains a very specific assessment of risk and very specific recommendations about how to address and minimize that risk of foreign interference.
The Attorney General can confirm that the ultimate decision on prioritizing which recommendations will be proceeded with and be dealt with in the legislation, and which will not, will have to await future legislative initiatives. That ultimate decision is made by the government and, in this case, by the Attorney General. Is that correct?
Hon. N. Sharma: Yes, that’s true.
M. de Jong: With that in mind, then, is it fair for me to…. In the case of the 2020 report, the Attorney General is satisfied that the recommendations dealing with the risk of foreign interference ranked in priority behind recommendations that were specifically addressed in the legislation — for example, expanding the scope and transparency of third-party advertising requirements. The Attorney was satisfied that that was a bigger priority than addressing the risk of foreign interference.
Hon. N. Sharma: I am just going to challenge the premise of the question a little bit.
What we do in our prioritization exercise with the Chief Electoral Officer is identify the biggest concerns that the Chief Electoral Officer has and the achievability of putting it into the next election. What the Chief Electoral Officer identified through that process was the rise of disinformation and its impact on our elections and asking for better tools to do that. Now that includes foreign interference through disinformation.
This legislation doesn’t rank whether or not I believe this is a bigger threat or that is; it addresses a challenge, whether it’s a foreign interference actor or a local actor related to disinformation in the election, which was seen as something that was identified and rising and needed to be addressed. We’re the first jurisdiction in Canada to do so.
M. de Jong: I have read into the record the risk and the concerns that the Chief Electoral Officer identified in the report that gave rise to six specific recommendations, four of which are addressed specifically in the legislation.
I haven’t, to this point, referred to the recommendations, but I guess I will because the Attorney, I think, wants to leave the impression that somehow another way has been found to deal with the general concern and that there is overlap and misinformation from a foreign source. But these recommendations are very specific and relate to a risk that the Chief Electoral Officer identified.
He recommended that, firstly, all individuals and organizations that sponsor third party advertising be a resident of B.C. if they are an individual or be a registered organization within B.C. that has one or more directors who reside in B.C. if they’re an organization; that they be required to open a separate sponsorship account for all transactions if they sponsor election advertising with a total value of more than $500; that they be required to purchase advertising in Canadian funds from a Canadian bank account; that there be laws prohibiting advertising platforms from accepting election advertising from foreign or out-of-province entities; and finally, limit the amount of self-funding for third party advertising sponsors to a reasonable amount.
That’s the collection of very specific recommendations that the Chief Electoral Officer identified to address a very specific risk that he wrote about separately in his report and identified under a separate heading of risk relating to foreign interference. I do not see anywhere in Bill 11 any provisions that would address any of those specific recommendations the Chief Electoral Officer offered to address that risk.
If I’m mistaken, the Attorney can tell me, but will she point to the sections of the bill that address those recommendations provided by the Chief Electoral Officer?
Hon. N. Sharma: I have answered this question before about the very particular recommendations and portion of the report the member brings up. I’ll say it again. It’s a prioritization process we had to make in terms of what we needed to move forward on in this particular amendment to the Election Act before the next election. That does not mean that the rest of the recommendation or the recommendations particularly that the member raised are not something we won’t do in the future, that we won’t add to the electoral act in the future.
M. de Jong: We are drawing perilously close to a meeting of the minds on this. My only suggestion here is that the evidence suggests that the government and now the Attorney prioritized other areas and other recommendations.
I referred to the recommendation around expanding the scope and transparency of third-party advertising requirements, that the government concluded that that was more of a priority today than the recommendations around protecting against foreign influence. Similarly, for the recommendation to ensure digital platform compliance with the Election Act the decision was made that that is a greater priority today than addressing the risk around foreign interference.
I think the Attorney General has confirmed that, but I want to be clear. That is the point I am trying to make. I am not suggesting at this point that the Attorney or the government have ruled out coming back to these recommendations. I don’t think I’ve ever made that suggestion. I am suggesting that there is evidence before us in the guise of Bill 11 that the Attorney and the government attached a greater priority to those other areas and chose to proceed with them and a lesser priority to the recommendations dealing with foreign interference or the risk of foreign interference.
Hon. N. Sharma: I’ll say again, just to make it clear, that it’s correct that it’s a prioritization exercise just like any drafting of legislation, but it’s informed by what’s happening and what the Chief Electoral Officer tells us. I think — as I mentioned before, and we’ve all seen — that disinformation, whether it’s through foreign interference or local interference, has been on the rise and actually happening in B.C. and other jurisdictions. The Chief Electoral Officer had asked for better tools to combat that disinformation.
So that is a very substantial step into preventing types of interference with respect to the very particular recommendations that the member raises. That is exactly, as I mentioned before, part of the ongoing work we need to do with the Chief Electoral Officer to see how we can continue to strengthen our Elections Act going forward.
The Chair: I’ve heard that three times, so I’m going to suggest that we move on to another line of questioning.
Recognizing the member.
M. de Jong: Thanks, hon. Chair, as always for the guidance.
When we get to, as inevitably we will, the sections of the bill dealing with misinformation, I think we’ll discover that they relate to very limited forms of misinformation. We can canvass that in more detail.
I’m simply going to say this before ceding my place to the member for Vancouver-Langara. I accept that there is, as always, an exercise in prioritization that needs to take place. I’m not sure I agree, in this instance, with the lower priority that the Attorney and the government have attached to this particular recommendation.
All of us in this place in particular are alive, and many other Canadians and British Columbians, to the concerns that have been expressed around the overall integrity of the electoral system in Canada and, by extension, here in British Columbia. We’ve had an example just in the last few days here at the Assembly where concerns have been expressed about attempts by foreign jurisdictions to exercise undue influence on our political process.
I think my task at the moment is to ensure that the record shows that, while I fully understand it is for the government and the Attorney to establish priorities and proceed on that basis, I don’t agree, in this case, with the decision they’ve made to not address the specific risk identified by the Chief Electoral Officer in one of the two reports that really did inform the bill and the contents of the bill that are before us.
But with those comments — I’m not sure the Attorney has to respond unless she wishes to — I think my colleague will have some questions for her.
M. Lee: I appreciate my colleague, the member for Abbotsford West, for extending the opportunity here at the committee stage on this bill.
Both the member for Abbotsford West and myself spoke at length — as I would expect the Attorney General would recognize — at second reading on this bill, in terms of Bill 11, about the considerations that the member for Abbotsford West has spelled out and had some responses from the Attorney General for and for which I’ve also made comment in my second reading speech.
I’ve certainly listened carefully to the exchanges between the member for Abbotsford West and the Attorney General and have a few other additional questions that I’d like to approach with the Attorney General.
Let me just first say that there’s recognition here that this is the opportunity. The Attorney General has mentioned that for administrative and operational considerations, the approach on prioritizing the six recommendations coming out of the May 2020 report with the Chief Electoral Officer was done with that in mind. Meaning, as the Attorney General states, there’s the further implementation of the amendments from 2019, of course, the electoral boundaries redistribution and the amendments that are set out in this bill.
But I do think that just for that same very reason, this is an important committee discussion, as we consider in this chamber the further amendments to the Election Act of this province because, as the minister and the Attorney General just indicated, this is our last opportunity before the next election. So with that in mind, I appreciate that the Attorney General has confirmed to the member from Abbotsford West that the amendments that are proposed in Bill 11 stem from the two reports from Elections B.C., the May 2020 and May 2022 reports.
I know that in discussions here we’ve been focused on recommendation No. 2. But the reason why the May 2020 report is of importance is because even in the lead-in to this report, recognizing the Attorney General has confirmed that this report forms the legislative foundation and framework for these amendments in Bill 11, it refers to three different threats: foreign interference, deliberate disinformation campaigns and anonymous digital advertising.
In that first paragraph of this report, in the executive summary on page one, the statement is: “While these threats have not been widely observed in British Columbia, the risks they present in our electoral process are real.” That’s a direct quote.
I’m going to come back to this point in a moment, but let me make one more point just at the outset. The view that we take here, as articulated in our second reading speeches, is that since 2016 there has been a sea change of risk that is identified and spoken to as you read on in the report of Elections B.C. There is certainly recognition, for example, of the 2016 U.S. presidential election where there is a direct quote from special counsel Robert Mueller, who stated that the Russian government interfered in the 2016 presidential election in sweeping and systemic fashion.
The same considerations and concerns relating to the 2016 Brexit referendum, where campaign finance provisions, harvested data, misleading online advertising by a British Columbia–based firm, Aggregate I.Q., and Cambridge Analytica, a British consulting firm…. These were the bodies that were behind, it is alleged, those misleading campaigns in Brexit 2016.
It’s the same involvements globally that…. When we say digital communications and disinformation, we recognize that the recommendations that are being incorporated in the amendments to the Election Act recognize the global changing nature of pressures and risks that state governments — whether in Russia, China or Iran, for example — are interfering.
Concerns of interference and influence in our democratic processes, including in the U.S. and Canada — that is a risk. Let me ask…. The Attorney General referenced repeatedly, in response to the member for Abbotsford West, that the Chief Electoral Officer was not able to cite any documented evidence of foreign interference.
Is that the test that government was using, when it was going through the considerations of priorities with the Chief Electoral Officer: that there needed to be documented evidence, first, of foreign interference, before this government would address the risks of foreign interference?
Hon. N. Sharma: I’m going to start by saying that, again, as I’ve been saying since we’ve been on this clause for a few hours now, it’s very unusual to be speaking about something that’s not in a piece of legislation, instead of what is in the legislation, before what we’ve talked about.
I would say to the question that, no, there is not a test. I think there’s ample evidence that I’ve laid out, since 2017, of the changes that we’ve made — including, in 2017, restricting sponsorship and political contributions from anybody outside of B.C. or Canada. That’s an example of something. We’ve been continually improving our elections, to strengthen them against any interference.
M. Lee: The six recommendations that are set out in this report, four of which…. Again, we haven’t gotten to that detail just yet in terms of how the other four recommendations, specifically, are incorporated in the bill. I’m sure that that will arise during this committee discussion.
Assuming for the moment, and perhaps the Attorney General can confirm, that the other four recommendations are incorporated in this bill, it’s important that we understand the interaction between all six recommendations as to why, for discussion purposes here, only four of the six recommendations were actually prioritized to be incorporated into this bill at this time, when we’re talking about three different categories of risk.
First, I’d like the Attorney General to confirm that the other four recommendations are incorporated into this bill. Secondly, does this government recognize the risk of foreign interference, beyond documented evidence? Is it the case that this government needs to have documented evidence in order to act on recommendations 2 and 3?
Hon. N. Sharma: Again, we’re talking about something that’s not actually in the legislation. But I will go through, first of all, to say that since 2017, as I mentioned before, our government has been taking action, through legislative reform, to make our elections stronger and prevent interference from all bodies, including foreign interference. That includes up to what you see today, which is disinformation — which, I think, as most people understand, has been on the rise and affecting our elections. There are clear examples of that.
This steps into the space of preventing parties, organizations or people, including foreign bodies, from interfering with disinformation on elections. It is something we take seriously as a government.
With respect to recommendations, it’s not so clear to list out, in a kind of check box manner, what we’re implementing and what we’re not. We’re making substantial progress on a lot of the recommendations in the report. How that shows up…. There are many sub-recommendations under the main recommendations. I think it’s fair to say that we’re making substantial progress on a majority of the recommendations in the report, but there’s always more work to do.
M. Lee: I appreciate the Attorney General has responded, as she did in even the closure on second reading, in that way.
The concern is where we’re at. This is not an election-by-election type of situation. The pace of the threat and change globally is very rapid. As we’ve seen with concerns expressed by Canadian Security Intelligence bodies about the last two federal elections and the last municipal election in Vancouver, it would be surprising that British Columbia, in its provincial election, is not subject to the same level of risk.
I don’t hear the Attorney General suggesting that, necessarily, but we’ve gone from not focusing on documented evidence, I believe, to an acknowledgment of risk, unless the Attorney General clarifies that. If that’s the case, it would be, certainly, a prudent view for this government to take it that Elections B.C., as the Attorney General referred to earlier in a previous response, needs every tool. That would have been to provide Elections B.C. with all six recommendations.
For example, why I say that is this. One of the recommendations that we understand…. Perhaps, again, I’d ask the Attorney General confirm that the other four recommendations — meaning 1, 4, 5 and 6 — are incorporated into this bill.
If that’s the case, then recommendation No. 1, in the lead-up language to that assessment and recommendation itself, refers to, again, the U.S. presidential election of 2016 and that there were many examples of voter suppression and disinformation tactics that can negatively impact the fairness of an election.
It gives an example of a well-known celebrity, Aziz Ansari — I certainly appreciate his work and his comedy — as someone who was there with a doctored image in his image, published by a fake Russian account in a tweet during the 2016 U.S. election. This is an example that Elections B.C. is citing. This is the example of a cross-section between recommendation No. 1 and recommendation No. 2.
Yet what we have before us in this bill are recommendations to deal with deliberate disinformation, as the Attorney General has indicated, but not with the other counterpart tool, which is to directly bring out and require that an organization that is sponsoring third-party advertising be a B.C. resident, open a separate sponsorship account and purchase advertising dollars in Canadian funds from a Canadian bank account.
There clearly are tools here structurally that would also deal with the attempts to spread disinformation, when you can act to restrict a foreign actor, a body that is acting on behalf of a foreign player. This is exactly why, as you look through the recommendations, it’s important for us to have a good understanding as to why this government has decided not to implement recommendation No. 2. This is not something I believe our democracy and our electoral system can wait…. There are clearly threats internationally, domestically and in this province.
Does the Attorney General not see the importance of also dealing with foreign interference as it relates to disinformation?
Hon. N. Sharma: We are taking action on disinformation when it comes to foreign interference, and I can go through the various elements of the bill, once we get to it, that do that.
The specific examples the member provides, and he provided a few where there was a foreign actor spreading disinformation in an election, are exactly why we changed the legislation with the guidance of the Chief Electoral Officer to give him tools to be able to respond, including takedown tools and enforcement provisions for the spread of that disinformation.
M. Lee: I would suggest that is only one tool or set of tools that is specifically designed to deal with disinformation in the way that it’s expressed in this bill. Of course, we’ll get to that section through the member from Abbotsford West.
In terms of other tools to deal with foreign interference that are clearly set out under recommendation No. 2, those tools are being left out of this act, which means the ability…. I think there is a…. It sounds to me, from the Attorney General, that there has been some sort of underestimation, let’s say, of the challenge in front of the Chief Electoral Officer — the fact that there is a rapid, changing nature of this.
This is since…. We’re talking about, of course, recommendations that were set out in a May of 2020 report, almost three years ago. So the time to actually consider and implement changes clearly has been there, but for the fact that we went into a snap election in the middle of the pandemic, in September and October 2020. Other than that interruption of focus, there has been almost three years for consideration of the necessary changes while more indications of risk have certainly been identified. Again, we continue to see that in this country.
This is the reason why it’s important we have an indication here from the Attorney General in this government as to why these particular recommendations to deal with foreign interference are not being dealt with by this bill. It seems to me that it is out of…. One can talk about priorities and what’s doable, but I think the government is underestimating the level of risk.
Given the reliance upon Elections B.C. and the Chief Electoral Officer in the discussions to determine the priorities over the last three years since his report and since the second report in May of 2022, is the Attorney General aware of any other third-party input to the Chief Electoral Officer to assess the risk, meaning has there been any access to his federal government counterparts — Foreign Affairs, the Canadian security agency, CSIS? Has there been any discussion of any nature that assesses the further risk to our province in our electoral process?
[J. Tegart in the chair.]
Hon. N. Sharma: I believe the member’s question was whether or not the CEO was having conversations with CSIS. That’s not something I know about or can talk about in the House and, certainly, is outside the scope of the legislation that we’re talking about here today.
M. Lee: What other assessments has the government done on the risk of foreign interference to the electoral process in British Columbia?
Hon. N. Sharma: We have a very rigorous process in B.C. with our elections. I think this bill is an example of that.
After each election, the Chief Electoral Officer will analyze the election, including any risks that appeared. Some of the reports that we’ve been talking about today are an example of that. And what they have is a legislature that responds to that risk by amending the legislation constantly to address that.
I’ll just remind the member of 2017 changes that restricted any political donations from people that were B.C. residents and Canadian citizens. We’ve been constantly changing and updating the elections to respond to risk, and we’ll continue to do that.
M. Lee: I think we’ve canvassed the understanding of the Attorney General as she presents this bill in this House.
The Attorney General has heard the concerns expressed by the member for Abbotsford West and myself as to the lack of estimation around the level of risk that is occurring with this bill in terms of not incorporating recommendation No. 2, for the reasons that are set out in the report itself by the Chief Electoral Officer. I haven’t really heard any good reason, other than practicality, in terms of administrative and operational considerations, over a three-year period, which seems less than satisfactory when we’re talking about the level of risk that continues to increase, year over year, since this report has been written and tabled.
It’s my view that the government and this Legislative Assembly can’t continue to play catch-up on something that is emerging in the way that it is. I’m quite concerned about the level of risk from foreign interference and influence in our electoral process. I’m going to…. I think the Attorney General has heard that comment repeatedly, as you know, Madam Chair.
At this point, I’m just going to turn it back over to my colleague the member for Abbotsford West. I know that we have some other considerations here, in terms of this report from May of 2020.
M. de Jong: The other recommendation noteworthy for the lack of attention it’s attracting in the legislation before us is from the CEO. It’s, again, in his report of 2020, where he recommended increased transparency around the use of social media bots.
I must confess…. As I said in the second reading remarks, I embark upon any kind of a conversation about this with some measure of trepidation. But I think the Attorney General understands what the nature of the questioning will be here.
Again, the Chief Electoral Officer has identified what he sees as a genuine concern about the misuse of technology and social media technology. I’ll ask the general question for the Attorney. Does she share that concern, as expressed by the CEO, around the misuse of technology and, particularly, social media bots?
Hon. N. Sharma: I will again say…. This is outside the scope of what’s contained in the legislation that we’re discussing.
I can tell the member that the analysis that my team did with respect to bots found that this type of behaviour is likely addressed by a law that has broader application, rather than under the election-specific context. The use of bots to generate and amplify social media content actually violates, already, many social media companies’ policies. If detected, companies remove the offending accounts.
Like I said before, all the recommendations from the CEO in those reports are still being considered by government. This is just, if you think of it, one response, in a continued response, to the reports.
M. de Jong: Well, for the record, then, here is a summary of what the Chief Electoral Officer said in his report.
“Social media bots can be used for legitimate purposes.” He then continues: “But they can also be used by malicious actors to artificially elevate content and influence voter behaviour.”
He goes on, a little further down, on page 13 of his report: “Social media bots are prolific and can interact — e.g., like, share and message — at an inhuman rate. Bots can produce over 600 messages a day, which equates to posting a new message every minute for ten hours straight.”
He then goes on to talk about the technical challenges in regulating automated activity online but points to California laws that have been passed to make it illegal to communicate with individuals online via bots to sell products or influence a vote in an election, unless it makes clear that the account communicating is automated.
He actually points to a piece of legislation that was passed by the government prior to 2020, prior to the Attorney’s arrival here, Bill 27, in 2019. The Ticket Sales Act prohibits the use of automated software to secure tickets for resale.
He then has this to say: “Currently the Election Act does not require an election ad to state that it was published by a bot. To ensure that voters know they are communicating with an automated program, election advertisements that use bots should be required to disclose their automated nature. This would help voters make informed decisions.”
He follows up with two recommendations. One is: “Require social media bots that publish election advertising, as defined by the Election Act, to disclose their automated nature.”
I’ll stop there and simply ask the Attorney General to confirm two things. One, under the existing act, there is nothing that requires a social media bot that publishes election advertising to disclose their automated nature. Secondly, there is nothing in the amendments before the House, in this bill, that would require a social media bot to disclose their automated nature.
Hon. N. Sharma: With our changes to the legislation with respect to disinformation, if a bot is spreading disinformation, of course, that would just be exponentially at a faster rate. The Chief Electoral Officer has the takedown provisions and the enforcement provisions related to that effort. That’s probably, you would think, about the most disruptive use of a bot when it comes to interfering with an election, with the spreading of disinformation.
With respect to, I think, the second question, I have given my answer about our analysis about whether broader legislation was needed to combat bots or enforcement under social media platforms’ own policies.
M. de Jong: The second specific recommendation from the Chief Electoral Officer is that amendments be incorporated into the act that “require the disclosure of a bot’s automated nature to be clear and unambiguous, so that any reasonable person would know they are communicating with a bot.” Does section 1 or any other section of the bill before us, once enacted, require the disclosure of a bot’s automated nature so that a person would know they are communicating with a bot?
Hon. N. Sharma: Same answer as before. Our team is still working through the recommendations with relation to bots and our answer to those recommendations and whether it needs to be broader.
M. de Jong: I’m going to say this sort of parenthetically. There have been times during this debate and in previous bills where I have appreciated the fact that the Attorney has been prepared to get up and answer a question in a forthright manner. I mean, the answer is no. There is nothing in this legislation that requires the disclosure of a bot’s automated nature to be clear so that a reasonable person would know they’re communicating with a bot. And the Attorney…. What follows from that is: the government may consider something like that in the future.
I think this is worth saying. The Chief Electoral Officer is worried that people are being inundated with messages that are made to appear that they come from a human being and come from a machine. He’s worried that that is having an adverse impact on voter behaviour.
I know my colleague from Vancouver-Langara has a few questions. I’m simply going to ask this. This use or, as the Chief Electoral Officer calls it, misuse of social media technology presumably is not going to diminish. It is going to become more prolific. There is nothing to prevent the misuse of having communications with people and making it appear that it’s a human being when it’s not. The Chief Electoral Officer sees that as a problem. It’s a bigger problem when it’s misinformation, I’ll grant you that.
But the Chief Electoral Officer says that it’s a problem that people think they’re talking to a human being, and they’re not. It strikes me that that is something that it would have been worthwhile to address. As we have discovered from other exchanges, apparently that’s not going to happen until sometime after another electoral exercise in B.C. That is a choice that the government and the Attorney General have made. I think it’s a regrettable choice. It does, obviously, speak to priorities.
If I’m wrong…. If somewhere in Bill 11, or somewhere in the existing act, there are provisions that make it clear that you’re entitled to know if you’re talking to a bot, then I’m all ears. But that is not the Chief Electoral Officer’s impression, nor is it mine.
Hon. N. Sharma: Same answer. No, there’s no direct provision, as I mentioned, and we’re working on it. It’s complicated how bots show up in elections, and it may require broader legislation. This is what I mentioned before.
If you think about it, in some ways, our advertising rules require transparency of who is advertising and who paid for that advertising. The disinformation provisions will allow, whether it’s a bot or not, there to be a takedown provision of the spread of disinformation.
As I mentioned before, there’s broader work that needs to be done on bots and how they show up and what we can do to make sure they are identified.
M. Lee: I appreciate the opportunity to again join the member for Abbotsford West in this line of questioning. This, of course, stems from recommendation 3 not being addressed in Bill 11.
As the Attorney General has referred to, there are other elements of the bill that she is suggesting, in some ways, whether it’s takedowns or otherwise, regulation of disinformation. That would be one way of getting at these concerns.
Here we have another example, a critical one, of a tool. It’s a tool for which…. As we’ve seen, as set out on page 13 of the May 2020 report, where the Chief Electoral Officer spells out that foreign influence is also a concern….
“Twitter accounts linked to Russia, Iran and Venezuela have attempted to influence conversations on contentious issues, such as pipelines and immigration, during and between federal election campaigns in Canada. Some of these accounts were automated.”
The link, which is included in the report in footnote 42, refers to an article in the media which did an analysis of 9.6 million tweets. That review in the 2019 period indicated the level of troll accounts that were suspected of having originated in Russia, Iran and Venezuela.
This, I believe, is the concern that the Chief Electoral Officer is speaking to, which includes a report in 2019 that “Russian trolls appeared to be trying to sow division among Canadians by tweeting provocative statements on hot-button issues like refugees and immigration.”
This is a separate recommendation in the report. As much as the Attorney General suggests that there are other mechanisms in the bill that we have in front of us and that address similar types of concerns, the fact of the matter is that the Chief Electoral Officer has spelled out a set of separate recommendations, as the member for Abbotsford West read into the record.
When we’re talking about the volume of automation that foreign state governments appear to have been attempting to use to influence election processes in the United States and Canada, is the Attorney General satisfied that the Chief Electoral Officer has the tools necessary to address this concern?
Hon. N. Sharma: I think I answered this previously, but I’ll repeat it: it’s complicated when it comes to addressing bots, and we’re doing further analysis on what’s needed on that.
For example, there are Charter rights that are implicated, potentially. There are tools that are needed, and an ever-changing technology. So although it’s very clear that we’ve given the Chief Electoral Officer takedown provisions when there’s a spread of disinformation, whether they’re bots or not, there’s more work to be done with respect to how we address bots in general. That may be broader than this piece of legislation.
M. Lee: The complicated nature of this also demonstrates the fact that foreign state actors can exploit the complex nature of trying to regulate this area, which is the reason why the Chief Electoral Officer has set out specific recommendations that require disclosure.
Well, let me let me just ask the Attorney General. Earlier, of course, we were discussing, at length, with the member for Abbotsford West, the phases of development of this bill and the discussions that were had with the Chief Electoral Officer. When it came to consideration of these specific recommendations, what was the understanding that the Attorney General, or members of her team here, had, as to why the Chief Electoral Officer was making these specific recommendations around disclosure of bots and their activities?
Hon. N. Sharma: I believe the question is: why is the Chief Electoral Officer making the recommendations? In response, I’d say it’s pretty clearly laid out in the report. The member has articulated that by quoting the report. I’ll just leave it in the Chief Electoral Officer’s own words in the report.
M. Lee: This is the reason why, of course, we’re spending this amount of time reviewing the words of the Chief Electoral Officer in the report — words, discussions, points and recommendations that the Chief Electoral Officer is making and that this government has chosen not to implement. What we’re trying to address is getting a good understanding as to why this government has chosen not to regulate and deal with recommendations around foreign interference, as well as to increase transparency around the use of social media bots.
By invitation of the Attorney General to re-read the report, I can read the report again, which actually addresses the point that the Attorney General made in the second previous response to my question, which was recognizing that “though it may be technically challenging, regulating automated activity online is possible.” That’s a direct quote from the report.
The Attorney General referred to other considerations, but the Chief Electoral Officer, in response, would say, “British Columbia recently passed Bill 27,” in 2019, almost four years ago. It was already mentioned by the member for Abbotsford West, the Ticket Sales Act. When I look at the Ticket Sales Act, it’s a fairly comprehensive act, including court proceedings.
I would have thought that the Attorney General of this province, in tabling that bill, would have done the necessary review, with his legal team and other internal counsel at the Attorney General Ministry, to ensure that it complies with the Charter rights of British Columbians. I would have thought that that work has already taken place, which is the reason why the Chief Electoral Officer is saying that regulating this type of online automated activity is possible: because it has been done before in this province under that act.
Again, having addressed it from the words of the Chief Electoral Officer in the Elections B.C. report, as the Attorney General just asked me to do, can I ask: why has the government chosen not to implement these two specific recommendations to increase disclosure around social media bots?
Hon. N. Sharma: As I’ve mentioned before, it’s because we believe, through our analysis, that more work needs to be done in deciding how to respond to bots and whether it may be broader legislation that is needed.
The quote, read by the member, from the Chief Electoral Officer also says how complicated it is to regulate this type of activity — particularly when it comes to elections, when Charter rights and freedom of expression are implicated — in the context of a debate during a part of our democracy.
M. Lee: I will say that there are other precedents in other countries — including the state of California, which is referred to, of course — that have had similar statutes to deal with bots, as well, in the context of influencing a vote in an election.
Let me just say this, though, before turning it back over to my friend the member for Abbotsford West. The considerations that we’ve heard in this chamber around recommendation 2 and recommendation 3 not being adopted and implemented for this bill, are truly concerning, as we see the continued rise of the challenges of foreign influence and foreign interference in electoral processes and other conduct on issues by governments in our country.
This is a huge concern. It’s a huge concern that was addressed and spelled out through specific recommendations three years ago. As we’ve talked about in our second reading speeches as well, the former Leader of the Official Opposition, Andrew Wilkinson, put forward a private member’s bill to address foreign influence. That is also cited and recognized and acknowledged by this report in May of 2020.
It recognizes that the official opposition had advocated and brought forward legislative changes to address foreign interference in various aspects of public policy, including electoral legislation. That included penalties and fines.
This is not a new issue. This was being addressed four years ago by the official opposition, three years ago by the Chief Electoral Officer in this province. I’m very concerned, with other members of our caucus here, as we see the continued rapid nature and developments that we’re seeing, not just in the last number of weeks and months. They date back to 2016 in the United States and the U.K., and now in this country.
This is not a choice. When government makes a choice to only implement certain tools and not others, we’re really, truly hamstringing our Chief Electoral Officer, in terms of the ability of the CEO and Elections B.C. to ensure the fundamental integrity of our democratic process.
I know the Attorney General has heard, through many lines of questioning here…. I think we’ve clearly expressed our concerns. We’ve heard responses from the Attorney General on behalf of the government as to why they chose not to proceed with those recommendations.
I think they’re very concerning. I’m very concerned that what has happened now is, as we look at the rest of this bill, as we get through the rest of section 1, that we are vulnerable. We continue to be vulnerable for the reasons that are spelled out in the report.
So with those concerns again tabled here, I just invite and turn it back over to my colleague the member for Abbotsford West, unless the Attorney General chooses to respond any further to my further concerns.
Hon. N. Sharma: In response, I’d just like to say that this government, in a very unprecedented way, especially with this bill, has been taking action since 2017 when it comes to strengthening our elections, taking the risks seriously on our election campaigns and always responding to the Chief Electoral Officer.
In 2017, we restricted sponsorship and political contributions to residents of B.C. and Canada. We restricted limits on third-party advertising. We increased transparency when it came to who was advertising and how. We’ve continually responded, and this is another example of our response with disinformation, strengthening our ability to make our elections fair.
With that, we’ll move on to the next member.
M. de Jong: We’ll get to some of the other provisions of clause 1, only to say…. The evolution of election law takes place, as the Attorney said, on an ongoing basis. Sometimes they come undone.
It was a remarkable step, some 20-plus years ago, when B.C. became the first government in the country to eliminate the manipulation of election dates. We talk about manipulation, and that was a practice that governments of all political stripes thought was their right.
I remember, when that happened, attending a federal-provincial meeting a few weeks later and being accosted by other ministers from other provinces, saying: “Have you lost your mind?” The ability for incumbent governments to manipulate when a date was to political advantage — that served the province pretty well. Regrettably, I’m not sure it’s on as solid a foundation today as it once was, but there have been these changes over time.
I think the message from the member from Langara and me today, which I am ever-hopeful the Attorney recognizes, is that there are infrequent opportunities to address election laws, especially as it relates to oncoming electoral contests. We think that an opportunity has been missed here, with respect to two pretty important recommendations from the CEO.
The Attorney has said: “Fear not. We may yet get to them.” But I think we’ve also heard that if we do get to them, it will be after another electoral contest and not before. That is something that the Attorney and the committee has, I hope, heard us express our concerns about and dissatisfaction with.
The remainder of section 1 includes a new definition: authorized drop-off locations. I understand that the issue here was, in the past election…. This relates to mail-in ballots. Having these drop-off locations was authorized by OIC. But what we’re trying to do is create a specific authority for either the district electoral officer or the Chief Electoral Officer to designate these drop-off locations. They are specifically for mail-in ballots. Is that correct?
Hon. N. Sharma: Yes.
M. de Jong: I won’t do it here, but at some point, I’m going to ask the Attorney…. Let me just make sure I’m cross-referencing.
Maybe I will do it here, because we’re talking about mail-in voting packages. Just have a quick, general conversation. We don’t have to do it later in the act, later in the statute, when we get to other technical provisions.
There have always been mail-in voting packages. It became a much larger feature of the election landscape in 2020 for reasons that we’re all familiar with. There are provisions in the act about how to acquire a mail-in voting package in section 105; how to get a replacement mail-in, and I think those provisions are amended later in this act; and how to vote using a mail-in package. So it’s all laid out there.
But for reasons that will become apparent later in this bill, can the Attorney give a little bit of an overview? There are different kinds of mail-in ballots. There is a mail-in ballot that contains the names of all of the candidates in an electoral district. We’ll call that a sort of conventional mail-in ballot.
Then there’s a mail-in ballot that is a write-in ballot, where a voter is obliged to do certain things. Can the Attorney explain, for the purposes of this and other sections, the difference? What distinguishes whether a voter will get a mail-in ballot that is complete with the names of candidates and identifies candidates and a mail-in ballot that is blank and requires write-in provisions?
Some of it, I’m sure, has to do with the timing of when it’s requested, but maybe the Attorney can provide that overview of those two different kinds of mail-in ballots.
Hon. N. Sharma: The way it works is that if it is before a nomination race has been completed, so they don’t know the names of the candidates, then it would be a write-in ballot. But if it’s after the nomination has been completed, it would be a conventional ballot.
M. de Jong: An application for a mail-in voting package, we know, in section 105, can be made up to four hours before the time set by a separate section. How early can you get a mail-in voting package? Must it be during the writ period, during the pre-election period? How early can a person obtain a mail-in voting package?
Hon. N. Sharma: We have an answer from the office of the Chief Electoral Officer on this one of how it rolls out. Of course, mail-in ballots are by request. When an election is called, it’s that time period that they solicit, Elections B.C. to the Chief Electoral Officer, whether people want a mail-in ballot, and then they’re sent out. It’s around that time, I guess, that mail-in ballots are sent out.
Sometimes it’s several weeks before if it’s a fixed election date, because people know what the date is and they may ask, so they may accommodate for mailing times and something like that. This is more of an operational accommodation to make sure it gets to them on time.
M. de Jong: It doesn’t sound like there’s a legislated or regulated date. It sounds like the Chief Electoral Officer is vested with the authority to determine when the appropriate time is to begin responding to applications for a mail-in ballot. Have I got that essentially correct?
Hon. N. Sharma: From the Chief Electoral Officer’s staff that are letting us know, it’s related to the timing of an election. Mail-in ballots they would provide to people when it’s around an election time. It doesn’t make sense if it’s years ahead of time. Operationally, it’s always associated, in my understanding, with an election period.
M. de Jong: Sorry, I didn’t mean for this to be contentious.
It doesn’t sound like there’s a specified date before which a mail-in ballot can’t be applied for. It sounds like, though, the advice from the Chief Electoral Officer is they’re not likely to respond to a request for a mail-in ballot until we’re in a writ period.
Hon. N. Sharma: A circumstance…. This is an operational thing, as the member said. It’s based on making sure fairness and mail-in ballots come to people on time. So although it’s not a legislated timeline, there may be situations where, to accommodate for mailing time and it’s a fixed election date, you might send a mail-in ballot a couple of weeks in advance of the writ period.
That’s a decision that’s left up to the Chief Electoral Officer and their team to figure out — fairness and making sure it gets out there. I mean, generally speaking, mail-in ballots are associated and requested during the election period.
M. de Jong: I’ll try to lump together a few of these questions to move us through this.
The Attorney is fully aware that participation rates in elections at all levels of government continue, sadly, to fall in this country. Does the government view a mail-in voting process, mail-in ballots, as a possible means and a possible contributor to reversing that trend? And does it, therefore, seek to purposely promote the use of mail-in ballots, or is this just another option?
I’m sure the minister is going to say she recognizes the challenge of declining participation rates. But is what follows…? Is there a purposeful attempt to draw on the mail-in ballot option to try and reverse that trend?
Hon. N. Sharma: So 2020, which is our last kind of view with this, is an exceptional year because of COVID. We did see an increase in mail-in ballots during that time period, but we don’t know — right? — if that’s going to be…. So I think it wouldn’t be that we’re promoting one way of voting over the other. We’re trying to make all voting accessible and available to people in general. And of course, we’re always hopeful that more people will vote if you do that.
A lot of the provisions that we will go through are from what we learned about the mail-in ballot process to make it better because it was new. So much was new during 2020 because of the COVID experience and people using that way to vote.
It’s hard to know. I think our position, like I mentioned, is to promote all types of voting, including…. There are some provisions in here for people that have mobility issues, actually making it easier for them.
M. de Jong: Any lessons or info that the Attorney, in the context of the mail-in ballot conversation, can reveal or share with the committee about the more recent by-election experiences in terms of percentages of vote that arrived? Now again, by-elections are different than general elections, and their participation rates are even worse. I’ll use that term purposely. Any initial data or lessons in terms of the prevalence of mail-in ballots in the by-election experiences?
Hon. N. Sharma: As noted before, by-elections are not a good source of data on trends and uses for voting because generally the overall voting is low in a by-election, unfortunately. The office of the Chief Electoral Officer indicated that the uptake of mail-in ballots in the by-elections was low, and that’s the information that I have.
M. de Jong: I wonder. The Attorney does not have to answer this now, but since we are apparently being closely monitored in these discussions, I will take advantage of the opportunity to send a message via the Attorney to the office of the Chief Electoral Officer. It would be actually useful to get a summary. I think we may have a summary of the mail-in ballot experience — I’m pretty sure we do — for the 2020 general election.
[R. Leonard in the chair.]
It would be interesting to know whether or not in the by-election context the use of the mail-in ballot as a percentage of overall votes cast returned to traditional levels for by-elections and general elections. So if the office of the Chief Electoral Officer might be in a position to prepare a short summary, that would be useful. I won’t, unless she wants to, ask the Attorney to respond to that. I will ask her to briefly advise whether there is any significance to the replacement of the term “secrecy envelope” with the term “secrecy enclosure.”
Hon. N. Sharma: This is a practical change. Secrecy envelope is a folded ballot, I guess, instead of an envelope. It’s cheaper to produce and easier to process in terms of counting. So it’s just a new way of supporting the process that way.
M. de Jong: I am much relieved.
Hon. N. Sharma: I meant secrecy enclosure. Sorry.
M. de Jong: Now I’m even more relieved.
Clauses 1 to 4 inclusive approved.
On clause 5.
M. de Jong: This is the provision, section 28 of the Election Act, which presently says, “Within 8 days after an election is called, the chief electoral officer must publish…” a notice of election. I just wondered. If we change that, as is proposed here, to “as soon as possible….”
There was nothing under the existing provisions that precluded the notice from going out on day 2 or day 3 or day 4. One is automatically inclined to think that what the Chief Electoral Officer is looking for here is some flexibility that would mean the notice might not go out till day 9, 10 or 11.
I’m just curious to know, in this day and age of technology and the means, the idea of the formal notice being delayed into the second and, maybe, third week is difficult to understand. First of all, that doesn’t strike me as being a very good thing. Two, why would that be necessary? What accounts for the concern that notice couldn’t go out in the first eight days?
Hon. N. Sharma: This is very particular. The wording of the clause, “as soon as possible,” would still indicate…. Depending on the platform or media source, “as soon as possible,” would be different. For example, a digital platform could go up very quickly.
The particular change is related to a concern that it’s increasingly challenging to publish newspaper ads in affected electoral districts within a specified time frame. So with respect to publishing in newspapers, it allows the Chief Electoral Officer to still have the requirement of “as soon as possible,” but deliver it, sometimes, in a time frame that depends on the publishing dates of the particular newspaper.
M. de Jong: Right, okay. I think I understand the part about different platforms and different means of posting the notice. I don’t think many of us go to the post office anymore to read what’s on the wall, but there is still a provision for that within the act.
I’ll simply register the observation that, in this day and age, with an agency dedicated to and geared entirely to preparation and administration, administering the electoral process, that once the writ is dropped, it should be possible to accommodate the statutory requirements for notice within eight days. One hopes that this change is not going to result in delays that extend beyond those eight days.
Just one other question with respect to….
The Chair: On clause 5.
M. de Jong: Yeah, we’re on clause 5. Actually, that’s fine on clause 5.
Clauses 5 and 6 approved.
On clause 7.
M. de Jong: Let me just cross-reference here to 41, which is being amended here. In Bill 11, clause 7…. As I understand it, sub 3(a)(i), (ii) and (iii) are essentially restatements of existing provisions. If that’s not the case, I’m happy to hear it. But when I did the comparison, I thought they were.
Then we have sub 3(b). Is this the new provision? If it is, how is it intended to work? And with particular emphasis, a site-based voting area, which is established under section 80…. I went to subsection 80(4), which allows the Chief Electoral Officer to establish site-based voting areas for the purposes of section 77, which you then have to cross-reference.
I’m trying to ascertain whether (b) is the new provision. Then we’re talking about applicants who reside “in a residence that is in a site-based voting area….” What’s an example of that?
Two questions. Is this the new provision of the section, and if it is, then what is an example of a site-based voting area where an applicant would reside?
Hon. N. Sharma: The answer to the first question is yes. The answer to the second question: a residential care facility is an example.
M. de Jong: That residential care would qualify by virtue of falling within the definition of the existing subsection 77(1) of the Election Act. Is that correct?
Hon. N. Sharma: It’s to be considered in connection with section 77. The district electoral officer can establish site-based voting areas, and it’s tied to the residence of that person.
In your example of how the residential care facility would be established as one, it is through the district electoral officer, who can establish that as a site-based voting opportunity for the resident of that facility.
M. de Jong: Understood and thank you. I guess part of our task, when we get into these kinds of provisions, is to try and contemplate where a difficulty might arise. So this next question falls into that category.
What I think has happened with sub (b) is in the case of a residence site-based voting area, a residential care facility. The verification document requirement, I’ll call them, is different than in other circumstances where, generally, two documents are required, one of which contains a name but also a residential address. In this provision, there’s only a requirement for one document of a type authorized by the Chief Electoral Officer, and that document only needs to contain the applicant’s name.
All right, 99.9 percent of the time — I get it. That makes sense. There’s a site-based voting opportunity at Smith Manor residential care facility. The residents are able to vote. That’s all a good thing.
What happens if someone shows up…? We’re talking about Elections B.C. volunteers. They’re not residents. They don’t live there. They don’t know who the residents are. Someone shows up, pulls out a document with their name on it and says: “I’m here to vote.” But they’re not a resident. What authority does the volunteer at that election table have to say: “I’m sorry. You’re not able to vote”? They say: “Well, it’s a site-based voting area, and here I am. I’d like to cast my ballot.”
Hon. N. Sharma: Here’s the process. What would happen is once the district electoral officer has identified a site-based voting opportunity — we’ll say a residential care home — before the voting date, the district electoral officer’s team will go in and verify with, say, the managers or the staff of the residential care facility who is a resident of that site-based voting opportunity.
That list will be verified beforehand. Then, on the example that the member provided, where a volunteer comes or somebody comes on the day of voting, there’ll be a list there that says: “Here’s a list of all the residents.” The person that is voting will show something with their name on it — not necessarily a picture or any address — and then be able to verify that they’re on that list.
If there are any questions, then there’s a process for verifying whether or not — just like in any other case of question marks of identity for that individual….
M. de Jong: To be clear and to be fair, all of that is relevant if someone is not registered and on the voting list; if they’re on the voting list already, not an issue because they’re already there. The mechanism by which verification would take place is helpful to know. I appreciate the answer, and let’s carry on to clause 8, then.
Clause 7 approved.
On clause 8.
M. de Jong: A quick question on 8(5). What’s the problem being addressed here? It’s always interesting to see reference to the Interpretation Act in the context of when someone can drop off their ballots and when someone is obliged to accept them. Was there an issue around that that this is intended to address?
Hon. N. Sharma: It was a very particular matter that was meant to be corrected from this provision.
During the 2020 general election, the CEO issued an order for voting packages to be dropped off at Service B.C. locations, but the final voting day was on a Saturday, and the Service B.C. location was closed on that day. There were provisions in the Interpretation Act and the Election Act that would require these locations to accept packages dropped off at Service B.C. locations on the first day of business following the Saturday deadline. That would be Monday after the election.
What this does is to bring clarity to exactly that issue, with respect to collecting mail-in packages outside the location’s regular office hours.
Clauses 8 and 9 approved.
On clause 10.
M. de Jong: We’ll take a couple of minutes on this, because it’s an issue that has engaged our attention. I anticipate that my colleague from Saanich North, the Third Party House Leader, either in the context of clause 10 or clause 12, I think, has some interest in these matters as well.
I indicated to the Attorney before these proceedings that I would try to make my arguments on this issue with respect to clause 10 and not repeat them in clause 12. And I think 24 is the other clause where the issue presents itself again. I’ll summarize the issue and the concern. I’ll ask the Attorney to what extent, if at all, she shares the concern.
I somewhat anticipated what the response might be and can alert the Attorney and the committee to the possibility of presenting a short amendment that would address the concern of the official opposition in this regard.
The issue here, and I understand that there is an attempt here by the Chief Electoral Officer and by the government to resolve some ambiguity and some uncertainty that arose around the general issue of write-in ballots. And we talked about that earlier — that not all mail-in ballots are write-in ballots. Many are not, but there is a ballot that a voter is obliged to write in their voter preference.
I’ve already acknowledged that very troubling trend that has been going on for some decades now about a lack of voter participation. I think that is troubling for any of us, all of us, who are involved in the democratic process and should be of concern to all British Columbians and all Canadians. We are endeavouring, I think, over the course of many years now, to take steps to try and reverse that trend, and a lot of that reveals itself with efforts to make it easier to vote.
We have more advance polling days. We don’t all have to vote on election day. We just talked about mail-in ballots and the ability to vote from home and various locations and special locations — all as a means of trying to minimize the inconvenience and the effort that people need to make to cast their ballot in this important democratic exercise. I’m all for that, and I don’t want to dissuade those efforts.
But there is another consideration that I think we can’t entirely lose sight of, and that is asking of the voter that they turn their mind, for a moment at least, to making an informed choice and cast that ballot, that vote, responsibly. And knowing who they’re voting for seems to me to be a not unreasonable request.
Now, historically we have acknowledged that in identifying what a person’s voting intent is…. If they, obviously, write in the name of the candidate in a form that is legible and can be clearly identified as being the candidate, that obviously qualifies. We’ve gone a bit further and said: “Okay. Well, some people may not know who the specific candidate is, but they know the party that they want to vote for.”
In fact, on a regular ballot, we identify a candidate and the party. So on a regular ballot, you can see it’s Bob Smith of the New Democratic Party or Mary Bloggs of the B.C. Liberal Party or Janet Jones of the B.C. Green Party. Both that information….
I can see the logic in saying in a write-in ballot: “All right. If you can take one of those two bits of information, the name of the candidate or the party, and you can write that in….” Then the Chief Electoral Officer or the district electoral officers will say, “I have a clear sense of who you intend to vote for,” and that vote should be counted.
This section and two other sections purport to go further, though, and provide a third option. And that is to write in the name of the leader of a party, a leader who is not likely running in that constituency. Now, there will be one constituency that they’re running in, for which that name would qualify as the name of the candidate. But in the other 90-plus constituencies, that person is not running there.
It seems to be signalling a shift, and some might say a recognition, of leader-driven politics, but that’s not our electoral system. We could create it if we wanted to. If that’s what we wanted to do, we could do a radical overhaul of our electoral system, and people could vote for the leaders of the parties and then fill in from there. But we don’t do that. We vote for local representatives and, by extension, local representatives who also represent political parties.
This, I think, is going a step further, and I understand that there is judicial consideration that is being taken into account here, but we’re allowed to disagree with that from time to time. I think it is a mistake, and I will go further. This will operate, I’m sure, in different ways at different times in different elections, but I think it bestows an unfair advantage.
It can bestow an unfair advantage on various parties in different ways at different times, depending on people’s familiarity with the leader of that party. I guess Premiers generally would have an advantage in terms of name recognition. That’s true, but it wouldn’t always be the case, in the case of a new leader or a new Premier.
All to say that the official opposition has no difficulty with the notion that a ballot should be counted and accepted as revealing the voter’s intent, where a write-in ballot names the candidate or names the political party that the voter wishes to support in their constituency.
But we are less supportive and, in fact, somewhat concerned that we would add that third option as an incremental movement down the path towards a form of leader-driven political identification and politics at election time that the rest of our electoral system does not embrace, does not represent. If that’s where we want to go, then that’s another discussion to have.
I’ll ask the Attorney General the degree to which she either shares my concern or doesn’t, and then, if she doesn’t, maybe what I’ll do is put my amendment on the floor, and that can be the subject of further discussion in the committee.
Hon. N. Sharma: I’ll start by clearly saying that this is by no means a shift in how we perceive elections or, as the member put it, a creep into leader-style elections. It actually was designed with the advice of the Chief Electoral Officer and the situations that were showing up. The member mentioned one that involved a judicial recount. That’s meant to remedy a very specific situation. I just wanted to spend some time to walk through that.
For example, we’ve already established that a mail-in ballot that is not an ordinary ballot with the list of all the candidates is only available in exceptional circumstances where their nomination has not been closed in that riding. In some circumstances, for example, one party may not have nominated an actual candidate in that riding. So the decision is to issue a write-in ballot for that particular voting at the time.
With the 2019 changes to the electoral process, which will be showing up at the next election…. The model that was already in place was a vote anywhere model. You could go to any place and vote. There will be on-site ballot printers. What that means is that when you show up, somebody can print you an ordinary ballot that lists all the candidates.
The clear issue that we were trying to remedy with this change is really about a situation where the nomination hasn’t closed and the decision was to send a write-in ballot. In that circumstance, what has shown up in a digital recount at the last election is….
It starts by the idea that we always want to try to capture voter intention, right? As the member mentioned, our goal is to have as many people voting as possible and as many ballots that are valid counted as possible, as long as there’s a clear voter intention. In that scenario, what happened was that somebody wrote the name of their party and the leader. They wrote the leader and the party. Because of the way the legislation is structured right now, that ballot had to be not counted, because it named the leader and the party.
This is actually just trying to fix that situation where we would say it’s unfair to that voter, who clearly expressed their intention in a situation where the nomination process was not finished in their riding. It’s a very particular amendment that helps us make sure that we’re being fair to the voters and their intention.
M. de Jong: The Attorney’s explanation or rationale doesn’t surprise me, and I didn’t harbour any great hope that I was going to persuade her otherwise.
I think this is a case where there is a disagreement. Where the Attorney says the intention is not to further enhance the notion of leader-driven politics or an electoral process that focuses on party leaders as opposed to local candidates, I think there is a group of us who believe that even if that’s not the intention, that is going to be the result.
The Attorney’s partial answer is: “And besides, this will only happen very rarely.” All right, we’ll get to sections later where I’ll talk about my own electoral experience and the difference a couple of votes can make to one’s life and political destiny. So I’m not sure that I place a great deal of stock in the notion that it doesn’t happen that often.
I don’t think it is unreasonable, in the electoral system that we have, to say to a voter: “You should know the name of the person you’re voting for. We’ll make allowance for the fact that you might not, by allowing you to write in the name of the party, and the candidate for that party will get the benefit of your vote.”
But to say, “All we will require from you is the name of the leader, whose name you have seen, probably repeatedly, on the newscasts, and that will be sufficient to identify for us your intention,” and someone else entirely will receive the benefit of that — that is, the local candidate — is a step that the official opposition is hesitant to take.
The amendment I’ll table — I have a copy for the Attorney as well — simply deletes the phrase “or leader of the registered political party of the candidate.” So that’s what it does.
I think, having taken some time to make my argument and alert the Attorney and the committee to the concerns of the official opposition, what I’ll do is invite any initial response. I know there are members and the House Leader for the Third Party that have some thoughts and submissions on the point as well.
The Chair: We are going to take a short recess to distribute the amendment.
The committee recessed from 4:10 p.m. to 4:20 p.m.
[R. Leonard in the chair.]
The Chair: We’ll call the committee back to order, and the amendment is in order.
I’d like to recognize the member from Abbotsford West to move the motion.
M. de Jong: I’ll simply move the amendment.
[CLAUSE 10, by deleting the text shown as struck out and adding the underlined text as shown:
10 Section 86 (5) is repealed and the following substituted:
(5) Write-in ballots must be prepared in the form
prescribed by regulation to permit the voter to vote by writing in the
name of the candidate,
or registered political party of the candidate or leader
of the registered political party of the candidate for whom
the individual wishes to vote.]
On the amendment.
A. Olsen: Speaking to the amendment, I appreciate the member from the official opposition for raising it. It’s a concern that we also share in the Third Party, and I think that it’s a concern, actually, that should be shared across all parts of this House.
I want to read into the record from page 58 of the judicial recount from the 2020 provincial election in the electoral district of West Vancouver–Sea to Sky. There was a judicial recount there. Section 209 of this reads the following:
“Elections B.C. noted, properly, that in our Westminster parliamentary system, voters are not voting as one would for a president in a republic, in a single national election. Instead, a voter votes for their local representative in the Legislature; those members in turn may decide to change the leader of their caucus or of the Legislature. There are 87 separate elections in British Columbia, one for each electoral district, rather than a single election. In this context, a voter may well vote based on the individual rather than the party, and a vote for an individual candidate in the mistaken belief that he or she is running in the voter’s electoral district should not automatically transfer the vote to the actual candidate for that party in the electoral district.”
It appears that what happened here is that during this judicial recount that happened, Elections B.C. came to the table with this advice to the judge that was taking a look at this. It should be noted that it was the position that was taken by the Third Party, the B.C. Green Party, as well, that any ballot that had the leader’s name written on it should just be outright rejected. It did not have either the party or the candidate that was running in that election.
I used the example, when I was speaking at second reading to this bill, of the situation that occurred in my riding where, actually, the situation that the Attorney General outlined occurred. It took the government, who called the election, a couple of weeks in order to locate a candidate to represent them in that election. For the first couple of weeks of that snap election, there was a proliferation of the Premier’s signs in my riding showing up all over the place, presumably to take the place of the candidate that had yet to be determined. Even after the candidate had been determined, perhaps they took the place of the candidate who wasn’t able to get their signs printed early in the writ.
It served a couple of purposes. There’s no doubt that at that time, the Premier, the leader of the B.C. New Democratic Party, was very popular. So from that perspective, you can understand why it would be that a political party that has a popular Premier would want to do that. But another outcome of that was that it was terribly confusing for the electorate. Even people who had been paying close attention to what was going on, noting…. I live in the capital region. My riding is in the capital region. It’s neighbouring to Langford–Juan de Fuca. People were legitimately confused about what was happening.
Did the Premier, at the time, move to Saanich North and the Islands, and was he running in Saanich North and the Islands? Frankly, at that time, that was a confusion that I spent little time, at that point, concerned about. My concern was letting people know who I was and who I was encouraging them to vote for. At that point, it wasn’t the Premier.
But you know, I think what is happening here is that we are, indeed, creeping towards a scenario where we are elevating the leader into a role they don’t have any business being in — more of a presidential role than the one they play. There is no doubt that the most popular name in politics will always be, or will soon be, the person who is the Premier that we hear about and know who that person is. That is giving an advantage. It is, indeed, actually stepping outside, as Elections B.C. noted in the judicial recount, the parliamentary system of government that we have established in this province.
When I first began to look at whether or not I wanted to move from local government to the provincial government and maybe run as an MLA, one of the first things that I considered was the potential of running as an independent. I was curious about that. So I started to look into what that would mean.
I learned that over the decades — despite the system that we have, with 87 or whatever the number of ridings there are elections that are held on election day in B.C. — it had become more and more difficult to even run in this province without being a member of a political party.
There was a time in this province where political parties didn’t exist. We now have the creeping profile of the political party. I understand, and I’m not arguing against, having the political party as one of the options on the ballot. But just as that has crept into our system, I think this is now the next stage of this, which is to basically fold all of the elections under one name.
We see the name of every political leader on every sign across the province as part of the team of this individual, whichever leader it is. I’m going to — absolutely, and I think with no hesitation — be supporting this amendment because, frankly, it’s the right thing to do. I’m quite disappointed that the government has brought this amendment to include the leader’s name on a ballot anywhere in the province as an acceptable replacement to the actual person who will be representing, the actual person who will be on the other end of the emails, who will be serving the constituency in that particular riding.
What I’ve experienced is that constituents that I have who write to the Premier, who write to the leader of the political party that is in power, very rarely do they get a response back. It is always going to be the constituency MLA, the MLA that is part of that constituency. That is who their representative is. That’s who is responsible for those constituents. As much as possible, I think we need to guard and defend that relationship that the voter has — the citizen, the constituent has — with their member of this Legislature.
Hon. N. Sharma: I want to thank the member for proposing the amendment and also the House Leader of the Third Party for the words. We won’t be able to support the amendment today, and I’ve outlined the reasons before. I just want to say that I agree with the belief in the values of local decision-making and local representation that were expressed today.
The changes we’re making to the Election Act under this bill were recommendations from the Chief Electoral Officer and independent of us. The reasons for it are very exceptional circumstances.
We put this amendment in the context of a declining use of a write-in ballot and better technology and better availability for printing off an ordinary ballot, which will do what the member suggests, listing off the candidates and the party.
In the exceptional circumstance of a write-in ballot…. So we’re already in the category of a situation where there are not nominated candidates, so the nomination process has not been finished in that riding, and the decision has been to send in written ballots. And then I think the judicial guidance and certainly the Chief Electoral guidance is that you, and I share this view, should be driven by voter intent in those exceptional circumstances.
The vast majority of ballots are going to be ordinary ballots that list exactly who the candidates are in their party. And that’s increasing, as I mentioned before, because we will actually have printers at stations that can print ordinary ballots on call. So we’re strengthening the process of that. But in these exceptional circumstances, my view is that voter intent should be analyzed.
If a voter in the circumstance that the judge decided on, where they wrote in the name of the leader and the party, the fact that that was rejected because the leader’s name was there would be probably shocking to that individual, right? They felt that in a situation where they were meant to write in something, because they didn’t have nominated candidates in that riding and they wrote in the leader of the party, that their voter intent would be rejected and their vote not be counted.
The reason for those amendments are squarely in this category and are supported not only by the Chief Electoral Officer but guidance we’ve also gotten from courts on mail-in ballots when it comes to voter intent. So for those reasons, I don’t support the amendments.
The Chair: Seeing no further comments, the question is on the amendment provided by the member for Abbotsford West.
Amendment negatived.
Clause 10 approved on division.
Clause 11 approved.
The Chair: Shall clause 12 pass?
Sorry, member for Abbotsford West.
On clause 12.
M. de Jong: No need to be sorry till you hear what I have to say, Madam Chair.
Well, look, I had indicated to the Attorney and to the committee the issue that the member for Saanich North and I have spoken to, and the Attorney for that matter, reveals itself in clause 10, clause 12 and, I believe, clause 24. I don’t intend to repeat all of the arguments that I have advanced in support of my amendment that has just been defeated on clause 10.
I do, however, wish to table a similar amendment with respect to clause 12, which seeks to eliminate what would be sub 2(c), the reference to the name of the leader of the registered political party of a candidate for whom the individual wishes to vote. I have provided that in written form. I think the table has had an opportunity to make copies of it. I hope members that require a copy have it.
Suffice to say it is advanced to accomplish the same purpose and for the same reasons as the amendment that was proposed with respect to clause 10. And I so move that amendment.
[CLAUSE 12, by deleting the text shown as struck out:
12 Section 91 (2) is repealed and the following substituted:
(2) In the case of a write-in ballot, an individual votes by writing in the blank space provided on the ballot
(a) the name of the candidate for whom the voter wishes to vote,
(b) the name of the registered political party of the candidate for whom the individual wishes to vote, or
(c) the name of the leader of the registered
political party of a candidate for whom the individual wishes to
vote.]
On the amendment.
A. Olsen: Thank you to the member for Abbotsford West for the further opportunity, I guess, just to raise the point that I still support the initiative that was started a few minutes ago. I still support it to remove the option of putting the leader’s name.
I think it’s important to highlight what was said by Elections B.C. in the judicial recount, and that was that “a voter votes for their local representative in the Legislature. Those members, in turn, may decide to change the leader of their caucus or of the Legislature.” That could happen at any time in the electoral process. In fact, the electoral process is a challenging time, and lots of things can happen and can play out.
The idea of voter intent, as the Attorney General outlined…. I guess the challenge I have with that is that when you’re putting another individual’s name down, it’s different than putting a political party down. There is a difference in that. I think it’s important to acknowledge that. Again, Elections B.C. highlighted in the judicial recount the reality that that voter could very well be intending on voting for the New Democrat Party, could be putting the name of the leader of the New Democratic Party in the ballot instead of the NDP, and then that individual is no longer the leader of that political party when the election day rolls around.
Again, we’re talking about, as the Attorney General pointed out, a rather nuanced and declining situation. Here’s another situation that is fairly nuanced and may only happen once, but the reality is that we have to take this into consideration: that on that election day, that voter’s intention will no longer be available, will not be an option because of the unlikely scenario that that leader is no longer the leader of the political party at the time that the election is held.
The reality is that if it’s about voter intention, then we need to be clear to the voters. “Write the name of your local candidate, and if there is no local candidate, then write the name of the political party that you are most closely affiliated or aligned with that you’d like to see have the representative in that area.” Other than that, for the sake of judicial recounts and for the sake of clarity, I think that’s where we need to end it. And that’s the reason why I’m supporting this amendment.
Hon. N. Sharma: Just to say I also appreciate, again, the intent and the discussion that we’re having here today. But for similar reasons, as I mentioned for the previous amendment, I don’t support these amendments.
The Chair: Seeing no further questions, I call the vote on the amendment to clause 12, put forward by the member for Abbotsford West.
Amendment negatived.
Clause 12 approved on division.
On clause 13.
M. de Jong: Two things here, clause 13 and clause 14. My understanding is that 13 refers to…. I’m going to call it an original mail-in ballot. And then clause 14 refers to a replacement, an application for a replacement in the event that the original has been lost or otherwise been disfigured or is no longer useable.
But if I’m correct in that, then maybe the more important question is: is this a product of a challenge that emerged in the 2020 election? My understanding is that. And if it is, does…? The language in the section suggests that it will be left entirely to the Chief Electoral Officer or district electoral officer to determine when there is insufficient time to forward either an original ballot package or a replacement mail-in ballot package. Is that correct?
Hon. N. Sharma: This proposed amendment is consequential to the introduction of the authorized drop-off locations, which I think, as the member was talking about…. It provides election officials to continue to have clear authority to not provide a package if there’s no point in doing so. So it would be beyond the timeline of the election to provide it.
M. de Jong: Right. Okay, I understand, but, I mean, the language….
So the two officers are not required to provide a mail-in voting package if they deem there’s insufficient time for the mail-in voting package to be received. What does that translate into, practically? For example, an application…. What drives that? Is it…?
If someone submits an application for them to have a mail-in ballot package mailed to them one day before the final day for returning it, that would suggest that’s not going to happen. If, however, they were to turn up at the district returning office and say: “Can I have…?” They could presumably do that up to a few hours before the end of voting or certainly the day before voting.
I feel like asking: what goes into the consideration? The short answer seems to be whatever the district electoral officer or Chief Electoral Officer decide goes into that consideration. So that’s what I’m seeking confirmation for. It is entirely up to those officials as to what they determine to be sufficient or insufficient time.
Hon. N. Sharma: I’ll just start by saying that this is not a new authority. It’s authority that’s already existed. And it is discretionary, as the member suggests, but it is bound by a consideration of insufficient time for the mail-in package. So that, obviously, is a consideration that they must view in that particular request.
Like, for example, if the request was for a mail-in ballot a few days before election for an international voting opportunity, then obviously that wouldn’t make it in the time for the election. So it is discretionary in a broad sense but also bound by the idea that it’s insufficient time — right? — for the mail-in package to be received. And it’s in the context of all the other opportunities to vote for that individual.
M. de Jong: Can a person attend at a district returning office and pick up a mail-in voting package?
Hon. N. Sharma: Yes, they can. It’s rarely declined, I’m told, in practice. Also, if somebody comes in to request a mail-in ballot on site, they can receive it. I mentioned before about the on-site printing opportunity that we have as well, with ballots.
M. de Jong: With the added provision now, the confirmed authority for, whatever we called it, a defined term in section 1, the “authorized drop-off location”…. Is the intention here, practically, that someone, a day before the final…?
We have advance polling. Then there’s usually a bit of a gap, and then we have the final polling day. If someone doesn’t vote in the advance poll because they assume they’re going to be here for the main polling day and then discovers, at the last minute, that they’re going to be called out of town…. They haven’t voted in the advance poll. They can’t vote on election day.
Will this operate in a way that allows them, the day before election day, to attend at a district returning office, get a mail-in package and then immediately drop it off?
Hon. N. Sharma: Yes, that’s the idea: to provide as many voting opportunities as possible. In the scenario described by the member, that mail-in ballot could be picked up. Then, obviously…. We now have, if this passes, expanded places for that mail-in ballot to be dropped off.
Clauses 13 to 15 inclusive approved.
On clause 16.
M. de Jong: Clause 16 amends section 106 of the existing Election Act and, obviously, speaks of…. Sorry, it amends section 107 of the Election Act.
I’m going to use this as a surrogate to ask a question that a number of people have asked me, in terms of the receipt of mail-in voting packages, rooted in the knowledge that the incidence of mail-in ballots…. We’ll discover whether they continue to rise or whether 2020 was an anomaly for reasons that we are all familiar with.
The question is this. This is a section that relates to the receipt of a mail-in voting package. This might be a question that is of more interest to those who are directly involved in electoral contests than the general public, but I’ll ask it anyway.
Over the years, in terms of reporting the results of an election…. We have voting districts, constituencies, and then, within them, we have polling districts, polling divisions. I can’t even remember what the term is — polling districts. Depending on the size, there can be hundreds of them in some constituencies.
It’s a breakdown. I’m not sure most people know which numbered poll they’re in, but it does guide them to where they vote. It’s kind of an organizational subdivision. Political organizations, though, tend to place a fair bit of stock in that as a way of tracking who is doing what, where.
In the past, people have received those breakdowns. Then, somewhere at the bottom of the table, is the one that says mail-in ballots. Historically the number has been quite low, and it gets added in there.
If the number of mail-in ballots grows, and 2020 was an example of how it could, can the Attorney advise, with the assistance of perhaps advice from Elections B.C.: are mail-in ballots assigned to a poll? Does the capacity exist, upon receipt of a mail-in ballot, to assign them to a poll?
They should have an address. I mean, the voter has to establish that they are qualified to vote in that constituency. So they have to have an address in that constituency. Are they assigned…? Are there challenges associated with assigning that vote to a poll in the way that other ballots are assigned to a poll in an election?
Hon. N. Sharma: Okay, a three-part answer.
There’s no requirement, under the Election Act, for the voting area to be tied to the mail-in ballots, in terms of the residence of the voters. The CEO does have the authority, under section 121, to do that, to tie the mail-in ballots in with the…. I think the term used in the act is “voting area.” So polling district, to the member’s language.
However, Elections B.C. has advised…. It would add considerable operational complexity to count mail-in ballots by voting area and could delay the preparation and delivery of packages to voters or the initial and final counts. So their operational decision has been not to use the power given to them to do that.
M. de Jong: I’ll ask the Attorney: does she have any views on whether it would be advisable for mail-in ballots to be tabulated in accordance with the voting area, or polling area, that the voter resides in? I will say that I am, via this discussion and those who are monitoring, making the pitch for why I think that might be a worthwhile thing to do.
Does the Attorney have any position she would share on the wisdom of ensuring that mail-in ballots, like every other ballot, are assigned to a polling area within a constituency?
Hon. N. Sharma: In terms of my personal view on it, I would say…. I take the guidance of the Chief Electoral Officer in terms of the impracticability of administering such a system.
My personal view is that like the contents of this bill, we need to make it as…. We need to direct our resources towards making voting as easy and accessible as possible, in many different ways. I would prefer that Elections B.C. and the Chief Electoral Officer focus our resources on that, rather than, potentially, the operational expenses and administration challenges of fulfilling that request.
M. de Jong: Thank you to the Attorney.
Insofar as other members of the committee may have views on this that they wish to communicate to the Chief Electoral Officer, I presume they are free to do so and may wish to engage the Chief Electoral Officer when he next appears, for example, before the Public Accounts or budgetary committees to explore to what degree it is practicable or possible to do so.
[J. Tegart in the chair.]
Clause 16 approved.
On clause 17.
M. de Jong: When would this particular provision…? We’re in sub 108(4). I mean, 108 deals with special provisions for mail-in voting packages for armed forces and others. Sub 108(4), which is amended here, is a specific exception to what is already an exception. When would this be used?
Hon. N. Sharma: This is specifically related to the real life circumstances when it comes to armed forces. Just to give a practical example of how this would show up. Normally speaking, before the amendments, you would have to provide a photocopy of your ID along with the package of a mail-in ballot. What this allows is for the election officials — for example, if you’re on a naval ship — that are appointed to verify ID in different ways, specifically for mail-in ballots for this group of people.
M. de Jong: Yeah, I got the Canadian Forces example. Any other circumstances that the Attorney can think of that would give rise to using this as a tool for verification or identification?
Hon. N. Sharma: I think the member is talking about the section in 108 that talks about any other specific class of individuals.
We’ve just verified with the team at the Chief Electoral Officer’s office that they’re not aware of any other groups that would be in that category that have been used today.
Clauses 17 to 19 inclusive approved.
On clause 20.
M. de Jong: We’re now at clause 109.01 of the act. This relates to individuals who need assistance. I won’t try to describe all of the circumstances applicable to that. My question is this, with respect to the proposed (b.1) amendment where it says, “write the individual’s name on the certification envelope of the voter’s mail-in voting package”: whose name? Is it the name of the voter, or the name of the person assisting the voter?
Hon. N. Sharma: The individual of the person who is assisting the voter.
Clauses 20 to 23 inclusive approved.
On clause 24.
M. de Jong: This takes us to 24 and represents the final provision of Bill 11 that references the change around explicitly authorizing the use of a party leader’s name as a way to determine voter intent.
I have made the arguments on behalf of the official opposition for why we believe that is ultimately a mistake.
I have presented the table with a copy of my proposed amendment to clause 24, which in effect deletes sub (b) in its entirety, which is a provision that includes the reference to a party leader’s name. I will move that amendment and ask that it be distributed.
The Chair: The amendment has been distributed, and it’s in order. So we’re speaking to the amendment.
M. de Jong: I will move the amendment and direct the Attorney’s and committee’s attention to the comments I made previously with respect to similar amendments in clauses 10 and 12.
[CLAUSE 24, by deleting the text shown as struck out:
24 Section 123 is amended
(a) in subsection (1) by adding the following paragraph:
(h) the ballot is a write-in ballot marked for both a
registered political party and the leader of the registered political
party, but the name of the person on the ballot is not the name of the
leader of the registered political
party. , and
(b) in subsection (3) by adding the following
paragraphs:
(b.1) the name of the leader of a registered political
party marked in accordance with section 91 (2);
(d) an indication of the name of the leader of the
registered political party of the candidate marked on the ballot in
accordance with section 91 (2) that, although misspelled or
abbreviated, clearly indicates the intention of the
voter.]
On the amendment.
Hon. N. Sharma: For the reasons that we stated previously for the other amendments moved by this member, we don’t support the amendments.
Amendment negatived.
Clause 24 approved on division.
Clauses 25 to 30 inclusive approved.
On clause 31.
Interjection.
M. de Jong: Powell River should keep his groans to himself or at least extend the courtesy of listening to what I say before groaning.
Well, look. There is, I think, a relevant question for the Attorney about clause 31. That is: is there a substantive change to the basis for requesting a recount in a close election? Or is it still an automatic entitlement if the result is within 100 votes?
I will confess to taking a certain measure of pride in this provision since it was the result of the circumstances that led to my arrival in this place. But be that as it may, is there any substantive change that, in effect, says a candidate has an automatic right to a recount in circumstances where the difference between first and second is less than 100 votes?
Hon. N. Sharma: No, it’s not a substantive change. It’s more of a correction. It clarifies that no candidate is declared elected until after the final count.
Interjection.
Hon. N. Sharma: What I said was no candidate is declared elected until after the final count.
Clauses 31 to 35 inclusive approved.
On clause 36.
M. de Jong: I just wanted to make sure that I and others on the committee properly understood the significance of the changes being contemplated by the amendments to section 231. Are we…?
Let’s put this in practical terms. We are all familiar with the notion of an election sign and an election pamphlet and the obligation that those materials include certain contact information for a financial agent or a sponsor. Is the upshot of the changes in 36 simply to say: “Whilst heretofore that had to be a phone number contact, we, Elections B.C., will now recognize an email as a sufficient form of contact”?
This is my way of asking…. The intent here, it seems to me, has not changed in terms of providing contact information. The form that that contact information can take has changed or been expanded. Is that about the size of it?
Hon. N. Sharma: Yes.
M. de Jong: Then in sub (e) of that same clause 36, there is the added provision: must meet “any form and content requirements established by the chief electoral officer by regulation.” Doesn’t the Chief Electoral Officer already have that authority?
Hon. N. Sharma: No. It doesn’t clearly, as the act is prior to these, if these amendments pass, give the Chief Electoral Officer that authority. Subsection (e) would just clarify or make it easier. If there are evolving ways of displaying the correct specifics of contact information, that could adapt over time.
Clauses 36 and 37 approved.
On clause 38.
M. de Jong: On clause 38, the Attorney and the government are purporting to create, on behalf of the Chief Electoral Officer and the chief electoral office, I take it, a new tool for use by that office in certain circumstances. Can the Attorney take a moment and describe for the committee the circumstances that have emerged that gave rise to the request and the government’s decision to create this new tool and the circumstances in which it is intended to be used and how used?
Hon. N. Sharma: The objective of this section is to give the CEO clear authority, that’s supported by the most serious penalty in the act, to require digital platforms to take necessary steps to remove non-compliant election advertising. Obviously, it also serves the goal of transparency.
M. de Jong: Is it a complaints-driven process?
Hon. N. Sharma: It’s both the Chief Electoral Officer and the team monitoring and also complaint driven.
M. de Jong: That monitoring function, it strikes me, could be pretty onerous insofar as the plethora of different vehicles and avenues for advertising around elections is. Has the Attorney secured, from the Chief Electoral Officer, some indication as to what fully monitoring all of that activity is going to involve, in terms of resources for that office?
Hon. N. Sharma: To start with, they already monitor and oversee third-party advertising as part of their role. What this addition will do is give them powers of takedown and penalties to enforce that. The assurance that we’re getting is that they wouldn’t be asking also for powers they weren’t able to do. This is complementary to tools they already have, in overseeing third-party advertising and advertising that’s noncompliant, and it gives them a better ability to take them down and penalize.
M. de Jong: It sounds like the Attorney is advising the committee that even today there is a division within the Elections B.C. office that is monitoring advertising in both election periods and pre-campaign periods, and monitoring that to determine compliance with the provisions of the act. Is that the case? Is there a separate division? Are there people assigned within Elections B.C. to the task of monitoring the advertising that would be captured by the provisions of clause 38?
Hon. N. Sharma: There are many ways today with technology to use…. I’m advised by their office that they have software that helps them to monitor it. In situations where an election is going on, they also have the ability to have third parties be part of the oversight, to add to capacity if that’s needed. But I think they really wanted this to have tools to actually penalize people that are not in compliance.
M. de Jong: Sorry, third parties that assist them in monitoring election-related advertising and communications? That’s interesting. Who would that be?
Hon. N. Sharma: I’m advised by their office that there are search companies or, I guess, organizations that specialize in providing this type of monitoring oversight. So if they need to have extra capacity, they can do that.
M. de Jong: If a person has purchased election advertising or advertising in the pre-campaign period, is it true, therefore, that that advertisement, that communication, is automatically being monitored by Elections B.C. for compliance? Is that how this works?
Hon. N. Sharma: Elections B.C. already monitors compliance in election advertising. That’s a function they already have. This adds better, clear authority for compliance mechanisms. Also, there’s the complaint-driven side. Political parties and other stakeholders in the election are monitoring that stuff and can bring complaints forward if they see it.
M. de Jong: Right, okay. Well, I understand the part about wanting to secure an enforcement mechanism, and the provisions deal with the Chief Electoral Officer providing notice to take certain measures, stop transmissions and remove.
I, though, am a bit surprised to learn that there is this extensive monitoring capacity in place now. I really did think that some of this, even today, was a complaints-driven process. But it sounds like what the Attorney is saying today is that the capacity to monitor any of the advertising that would be captured under 231 and 231.01 and 231.02, and the subject of enforcement proceedings, already exists, and there won’t be any requirement on the part of Elections B.C. to seek additional resources to perform that function. Is that correct?
Hon. N. Sharma: If there are…. First of all, the CEO and that office is tasked with implementing the legislation. That’s clear statutory authority. If there are any issues in staffing or requirements that they might need to do so, then I would expect them to come to the government service committee or talk to us about that. Right now we have assurances that they’re able to fulfil the duties under this act.
M. de Jong: Right, okay. I’m not meaning to belabour this, but it’s sort of a fundamental tenet of what we do here. If someone comes in search of legal authority to do certain things, we tend to want to ask how much that’s going to cost. The advice we’re getting from the Attorney is that it shouldn’t cost anything more because she hasn’t been asked for anything more, as the minister responsible for the act.
I must confess, I was a bit surprised to hear that Elections B.C. has this extensive monitoring capacity now. I guess that’s a good thing. I guess people will be interested to hear, when they take out an ad in support of their favourite candidate or cause, that it’s being monitored by Elections B.C. for compliance. It’s relevant because…. Well, I’ll say it.
If the Chief Electoral Officer shows up in a few months and says to the appropriate committee of the House, “Oh, by the way, thanks for passing my legislation. I need an extra 5 million bucks,” then we’d better hear about that now and not as a surprise then. I know they’re monitoring this over at Elections B.C. headquarters, so now is the time to communicate the need for additional resources, not five months from now.
Hon. N. Sharma: One of the things that’s happened in the past, with the 2019 amendments and previous reports, is that sometimes the Chief Electoral Officer reports there is a budgetary consideration of the implications of implementing the recommendations.
In the reports that we are talking about today that led to the changes that we…. There was no such analysis. I’m currently not aware of any budgetary constraints in administering the changes that we’re posing to the act. And of course, it’s the Chief Electoral Officer’s duty to implement. If they do arise, I would fully expect him and his team to come and ask the appropriate government committee for further resources.
M. de Jong: Right. I’ll go one step further, though. And again, I’ll say this politely and with respect. I think the Chief Electoral Officer and the Attorney should anticipate, when bringing forward these provisions, that a logical question from members of the committee is at some point going to be: “And how much does it cost?”
I have the Attorney’s information that, to her knowledge, the Chief Electoral Officer has what he requires to fulfil the obligations and to make use of these provisions. But we’ll file that away, and hopefully, it’s correct. We’ll see what happens down the road.
Let’s just take a moment to…. In terms of the enforcement powers that are being created here, I take it the idea is that the Chief Electoral Officer would have specific statutory authority to order a cessation of transmission of election advertising. Help me with this, though, if the Attorney can.
So there’s the power vis-à-vis the sponsor, the agency that has created and is advancing the advertising. What is the authority that the legislation grants vis-à-vis, for example, the platform, in the case of the Internet or the social media that might be the vehicle by which the advertising is being transmitted?
Hon. N. Sharma: Just to add to the previous discussion. Just a reminder that actually the Chief Electoral Officer and Elections B.C. already monitors third-party advertising — that includes on different platforms. What this does is give them a takedown provision or a takedown power, just to help with the discussion of whether they’re able to and the budgetary considerations.
The question is…. It covers social media platforms. To the member’s question, notice can be provided to the sponsor and to the platform of a violation under these sections.
M. de Jong: We had a similar conversation, seems like a little while ago now, with respect to another piece of legislation: intimate images. And, in that case, we were discussing the ability of a tribunal, the CRT or the Provincial Court or the Supreme Court of British Columbia, to have orders enforced. And, I think, at one point, I thought the Attorney provided a very forthright and honest answer about the abilities and sometimes the limitations of having orders from B.C. tribunals enforced internationally — not so much an issue nationally, but sometimes internationally, depending on where the headquarters for a platform are.
In this case, we’re talking about a statutory officer of the B.C. Legislative Assembly, important by any definition. But what can the Attorney offer by way of assurance that having created this power that these platforms will take seriously and feel compelled to abide by a decision, an order, of the Chief Electoral Officer of B.C.?
Hon. N. Sharma: First of all, there’s a penalty in this that’s the highest penalty. It’s up to $50,000 day for non-compliance. Now the reason and the goal of that penalty is to act as a deterrence and also to promote quick action when it comes to the notices.
You’ll be seeing, later on, we’ll be tabling a House amendment that gives the CEO the authority to file that notice within the Supreme Court to make it an order of the Supreme Court and then have all the powers and tools of the Supreme Court when it comes to enforcement.
I expect that the social media platforms that are operating and our citizens of British Columbia are using who publicly talk about wanting to be more responsible and more accountable in terms of their actions and their impacts on our democratic process would take these orders and notices seriously and comply with them. We will do what we can to the extent of the law to enforce them.
M. de Jong: I think it’s fair to say that’s probably all our hope.
I think the concern probably arises…. This is not my attempt to revive a conversation we had earlier in clause 1, but as it was in our conversation around intimate images, the larger concern would relate to enforceability in circumstances where the transmitting platform originates outside of Canada or even Canada and the United States.
The argument around the magnitude of penalties and the ability and deterrent effect of sanctions that can be imposed on people located and agencies located right here within B.C., I think, is a sound one. Where we may encounter…. Well, I should ask the Attorney.
Is she concerned at all, notwithstanding our earlier conversation about foreign influence, that those who might seek to influence from afar may not be as concerned about the sanctions that can be brought to bear here within B.C., given that the reach of our electoral officer and, indeed, our courts may not extend far enough to affect them?
Hon. N. Sharma: We are, like every jurisdiction in, I would say, the world, grappling and addressing challenges faced by the impacts of social media and the Internet on our citizens. Our thrust and our goal is to strengthen our legal tools and our justice system to be able to respond to that.
My hope is that the collective actions that jurisdictions like B.C. — we certainly talked about that with the intimate images legislation, and it applies to this as well — are taking to protect their citizens through the legal tools that they have and point directly to these social media platforms for accountability will change the nature of that dynamic and help protect the citizens of the province.
M. de Jong: The provisions also include a mechanism by which, having received notice from the Chief Electoral Officer to cease transmission, an application can be made to extend the period of time referred to, which presumably allows the transmission to continue.
Can the Attorney explain the circumstances that might give rise to a granting of an extension where the Chief Electoral Officer has issued an order? Under what circumstances would an extension be granted to allow that material or that advertising to continue to be transmitted?
Hon. N. Sharma: That provision gives the Chief Electoral Officer, as described, discretion in certain circumstances. One such circumstance is that maybe it’s a smaller platform and they use, let’s say, a third party for their advertising or other things on their site, so it’s not a direct line to take down. In that circumstance, it may be reasonable for the Chief Electoral Officer to give that extension.
M. de Jong: That’s good on 38.
Clause 38 approved.
On clause 39.
M. de Jong: So 39 creates a new section, 234.1, which creates a new power for the Chief Electoral Officer to deal with false statements, misinformation. I’m going to ask the Attorney to put this on the record, because in the public conversation, to the extent that there has been a public conversation about this, it tends to be: “Oh, now the Chief Electoral Officer is going to have a monitoring role and an ability to root out all of the lies and false information that is bandied about during an election campaign.” But it is more limited than that.
I wonder if the Attorney might both summarize the particular areas where the Chief Electoral Officer has an ability to address what he or she believes to be misinformation or false statements; and then secondly: why those areas? Why was it restricted to those areas, alone?
Hon. N. Sharma: In a democracy, and particularly in the time of a campaign, of course there’s a strong role for debate. There’s a strong role for people expressing their different points of view, their perspectives. It’s actually encouraged, and candidates go out there and talk about things. So really, the balance in terms of what’s disinformation and what’s healthy debate is one that we need to strike.
With discussions with the Chief Electoral Officer and analysis of other provisions, what we circled around was criteria or categories of disinformation that are easily verifiable and, unfortunately, have been used in situations with the spread of disinformation to undermine either a candidate or the place of voting.
One category focuses on a candidate. It includes if a candidate themselves says these things, that could be verified: citizenship; place of birth; education; professional qualifications or membership, in a group or association, of a candidate, a nomination contestant or the leader of a registered political party.
We can think of examples where place of birth has been something, particularly in the States. You can think about that, where place of birth has been used to undermine a candidate, along with qualifications or membership in a group or association. That type of disinformation is clearly identified.
With respect to voting, of course the Chief Electoral Officer takes that very seriously — so when disinformation about locations of voting booths, where and when to vote or those kind of things are spread. Unfortunately, there have been examples of that. That’s something that’s very easily verified and needs to be corrected right away.
Those are the areas that we step into for disinformation, keeping that balance between debate, what’s verifiable, what’s opinion in mind when we were deciding.
M. de Jong: Is this a complaints-driven process?
Hon. N. Sharma: Similar to the answer before, it’s both. It’s both monitored by the CEO and also complaints-driven.
M. de Jong: Okay. Well, I’ll explore that a little bit. These are statements about a candidate, a nomination contestant, leader of a registered party, public figure associated with the candidate that allege that one of those people has been charged with an offence or required to pay an administrative monetary penalty. Then, in part (b): “relates to the citizenship, place of birth, education, professional qualifications or membership….”
I’m trying to think of a circumstance in which the office of the Chief Electoral Officer or Elections B.C. would be in a position, through monitoring, to determine on its own whether a false statement had been made about any one of those things. Doesn’t it logically flow that someone has to say to Elections B.C.: “Someone has made an accusation that is not true”?
Hon. N. Sharma: This may be obvious, but I should state it. With respect to locations of voting booths and things that are very specifically related to the operation of the election, the Chief Electoral Officer, of course, would be the truth teller when it comes to that — easily verifiable whether it’s objective or not.
I think, to the member’s question about complaint versus monitoring, let’s say, for example…. I gave the example from the States where a place of birth became a very contentious, big issue that was prominent in an election.
I could see, in that scenario, the Chief Electoral Officer seeking a way to verify from a candidate their place of birth so they could dispel that disinformation if it’s spreading, and then other circumstances where it would be complaint-driven. The person that’s impacted by that would know the most — that they were not a member of that association or the people associated with it, for example. So they would raise it with the Chief Electoral Officer.
I think those are some examples or thoughts that come to mind, based on the question of the member.
M. de Jong: It’s a good example, and I’m glad the Attorney raised it, because it does give rise to a question. Let’s take the example of place of birth, but it could be any one of the categories considered in 234.1(a) or (b).
Two contestants are duking it out on the hustings, and an issue arises between them, an allegation by one against the other, and an allegation goes back and forth. I’m just thinking about it. What the Attorney has just said is that in those circumstances, the Chief Electoral Officer may, of her own or his own volition, having read the paper with a cup of coffee that morning and seen this controversy emerging, inject themselves into that and say: “I’m going to get to the bottom of this.”
Is that what we’re talking about? That’s a pretty activist role. That was the example she gave — a dispute between candidates and participants, and the Chief Electoral Officer says, of their own volition, not having been presented with a complaint by either one: “Well, I’m going to get to the bottom of this.”
That seems like a pretty activist role.
Hon. N. Sharma: It’s not my role to second-guess the discretion exercised, or contemplate the discretion exercised, of the CEO in administering the statutory duties that he’s given under this act.
We’re speaking hypothetically. I would say one of the things that would trigger that is whether or not the disinformation has the level of impacting an election. That’s contemplated under the discretion of the CEO under this act. We would leave that discretion to them, to weigh in on that. What’s clear in the bill, and what we’re proposing through this bill, is to have objectifiable categories of information where we’re saying that if you are spreading disinformation on these categories, then there are tools that the Chief Electoral Officer now has to enforce that and prevent the spread of that disinformation.
M. de Jong: I get that, and I appreciate what the Attorney is saying. I would say, though, it is appropriate to ask whether the Attorney, in commending this legislation to the committee, believes that it is a power statutorily created that requires the Chief Electoral Officer to be confronted by a complaint.
Presumably, it is the participants and the person against whom information, or misinformation, is being…. They are in the best position to trigger involvement and a request for the Chief Electoral Officer to use this power.
I know we can’t anticipate every possible scenario. Here’s one in the right circumstances, an allegation between candidates. One candidate 20 years ago was the subject of extensive fines by Employment Canada. There we’ve got a good old-fashioned controversy that’s brewing away in the Maple Ridge newspaper or the Abbotsford newspaper or maybe provincewide media, because it goes to character.
No one has made a complaint at that point, but I think it is important that the committee understand the Attorney and the government’s expectation around the use of these powers.
Is it the expectation that the Chief Electoral Officer and the office of the Chief Electoral Officer will be monitoring this and then proactively step in and say: “We’re going to get to the bottom of this, because it is verifiable”? Perhaps. Or are they going to wait and say: “We’ll deal with it if and when we get a complaint”?
By the way, I would suggest it would be wiser to do the latter. Otherwise, the expectation is going to be created that every time there’s a dispute between two politicians, the Chief Electoral Officer is going to step in and try to settle it. I don’t think that’s what anyone intends to create here.
Hon. N. Sharma: Just like every provision of this act, the proposed amendments give a discretion to the Chief Electoral Officer to administer these provisions and oversee a fair election. In that scenario, we do rely on their discretion when it comes to the functioning of each of these provisions. It’s clear that within the structure of these provisions, what the disinformation must reach a level of is affecting the results of an election with that intention of doing so.
Presumably, a lot of the scenarios that are being raised by the member in this hypothetical discussion are complaint-driven, because it has impacted a person. So then we would trust the Chief Electoral Officer to use the provisions and the tools of the act — if these amendments go forward, the amended provisions of the act — to make sure that there’s no interference of disinformation on the results of the election.
M. de Jong: The only reason I mentioned it is I think it is imposing a burden on that office that will be unworkable if we leave the impression that that office is going to proactively monitor and step in to investigate disputes that occur at election time, even around the limited number of areas contemplated here in this legislation. So I’ve said my piece on that.
Can I ask the Attorney…? Let us, for the sake of our conversation today, assume that we’re in an election period. An allegation in one of the areas contemplated in this section has been made, and it does give rise to a complaint. The person against whom the allegation has been made says: “That is absolutely untrue. It goes to my character, and anything that goes to my character diminishes my chances of prevailing in this electoral contest. I am going to the Chief Electoral Officer to seek redress under these provisions.” What happens then?
We have a process here in the chamber. If someone hears something they don’t like, they raise a point of order, and we have an adjudicator who sits in a chair here or a chair there. But even then, it’s not unusual for it to take a day — occasionally, a little bit longer — for the Chair to render a decision. We’re talking in this case about a far less immediate, in terms of proximity, circumstance — the possibility, dare I say it, in an election contest where the Chief Electoral Officer could be confronted by a number of those kinds of complaints. So what happens?
What’s the Attorney’s expectation about how the Chief Electoral Officer is going to respond, in terms of timeliness, so that these things don’t go unresolved? You’ve got the authority. You’ve got the mechanism. But what’s the expectation…?
Is there an investigation? Is the person against whom the complaint has been made provided with an opportunity to make their case for why they believe the allegation is true? How does that work?
Hon. N. Sharma: As a statutory officer, the CEO has the discretion and ability and power to oversee and implement all the necessary things after this legislation, if it’s passed.
I will say, just based on our discussions, that if this legislation was passed, the process and tools for the false statements would be developed by Elections B.C. They would be based on best practices from other jurisdictions and current investigative tools and could include partnerships with existing fact-checking organizations. So, for example, if a false statement is made that candidate X was never a professional engineer, steps could be taken, including checking with the candidate, obtaining proof of membership and confirming with the self-regulating body.
M. de Jong: I agree with the Attorney to this extent. It’s possible to think of examples that should be relatively easily resolved or determined. But boy, I can think of a whole bunch of examples that would not be so easily resolved.
The example I gave about the allegation of administrative penalties ten or 20 years previously — you can imagine that that might involve the allegations made against an individual whose reply is: “Aha, well, it wasn’t me. It was a company I was involved with, and therefore it’s still….” We can imagine lots of circumstances where there might not be immediate clarity. We can also imagine circumstances where…. People are born somewhere, so an allegation about place of birth should be easily resolved.
I will confess that I…. Well, let me ask this. With respect to false statements, has the Chief Electoral Officer alerted the Attorney, in making the recommendations and advancing the changes to the act, to the need for any additional resources or personnel to assist in administering these new responsibilities?
Hon. N. Sharma: Same answer as before, when we talked about resources.
I do also want to talk about this idea of what’s verifiable and what is not. I think there’s an important starting point that would change after the passing of this legislation — that is, in any election that’s conducted subsequently from this, it would be very clear to all the actors in an election what is disinformation and what are the tools of the Chief Electoral Officer, which can result in pretty significant penalties.
That sets a new standard for our elections in British Columbia, which has a power of deterrence and conduct-setting at the offset of the election. I would expect that if parties or individuals beforehand thought that they could get away with spreading disinformation about some of the examples the member provided, under the new regime, where we’ve set that standard of conduct and an ability and tools to go after disinformation, we would see different elections.
M. de Jong: Well, I admire the Attorney’s optimism. Honestly, I’m not sure I share it completely, but good for her.
There is one other aspect to this, though, that is interesting and that may not lead to the same measure of discipline that the Attorney has just described on the part of organized political organizations, who quite frankly may have more to lose.
As I understand it from the language, this is an authority that also extends to nomination processes, and there are certainly members in the committee room who have been around long enough to know that nomination contests can be pretty wild and woolly affairs. That doesn’t mean…. I’m not defending that as in any way acceptable.
What I am suggesting is in the lead-up to an election, I don’t have a hard time imagining the Elections B.C. office, the office of the Chief Electoral Officer, inundated with requests from angry and upset nomination contestants who have filed a myriad of complaints about false information that has been disseminated against them over the course of a nomination contest. We’re not even into the election at that point. We’re just into sort of intra-family battles for nominations.
Has that been taken into account? Is the decision to include inner party affairs, like nomination contests…? Was that at the request of the Chief Electoral Officer? Is he alive to the workload issues that we hope won’t arise but that very well could?
Hon. N. Sharma: I guess we will see how this plays out in B.C., but I do want to just stress the power of the new tools. We’re thinking of many scenarios, including nomination races, where really what we’re asking for is more accountability with the truth. And that impacts the election, which no candidate, no matter where you are, should be scared of.
I also want to comment a little bit on the power of the notice. You can imagine that — in these contested disputes, like nomination races or campaigns — for the Chief Electoral Officer to have the power to issue a notice to somebody that says they’ve been spreading disinformation with the intent to impact the results of the election, that’s a pretty heavy tool, especially when public perception as a candidate is one of your biggest tools. That’s what you’re vying for — the public to have trust and confidence in you.
I think we can’t underplay the power of the change of the tools that we’re giving the Chief Electoral Officer when it comes to setting a standard of truthfulness in our campaigns. We will see, as the member suggests, but I think that the tools do definitely provide a high deterrence factor.
M. de Jong: I won’t quarrel with the underlying assumption that the Attorney has made about the significance of the order, which is why I earlier asked a question about safeguards for the object of the complaint, who might be the subject of an order that could have pretty significant consequences for them and their ability to properly answer the allegation made against them in a complaint to the Chief Electoral Officer.
I’m going to ask…. Candidly, I’m trying to complete the bill here before we wrap up, and I have one more section that I wanted to pose a question on. However, one last question with respect to section 39.
For journalists that may be concerned that they are at risk of attracting a liability under these provisions, it strikes me that there are some safeguards, but I would like the Attorney General to comment on this. In inadvertently reporting a fact or transmitting information about a fact that is deemed subsequently to be false, it strikes me that a journalist could seek some solace in the fact that they would have to have reported it with the intent of affecting the result of an election — that they would have to know that it was false or have recklessly disregarded that it’s false.
Those are tests that operate to assist a journalist who might otherwise be concerned that they could be attracting a liability or an exposure under these provisions. Is that correct?
Hon. N. Sharma: Yes, I think that’s fair enough.
Noting the hour, I move the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:20 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of the Whole (Section B), having reported progress, was granted leave to sit again.
Committee of Supply (Section A), having reported resolution, was granted leave to sit again.
Committee of Supply (Section C), having reported progress, was granted leave to sit again.
Hon. J. Whiteside moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 p.m. tomorrow.
The House adjourned at 6:21 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF LABOUR
(continued)
The House in Committee of Supply (Section A); A. Walker in the chair.
The committee met at 1:35 p.m.
The Chair: Good afternoon, everyone. I call Committee of Supply, Section A, to order.
We are meeting today to continue consideration of the estimates for the Ministry of Labour.
On Vote 38: ministry operations, $21,489,000 (continued).
G. Kyllo: Further to the questions we have with respect to the employment standards branch, I know that there’s been a significant increase in funding. I’m just wondering if the minister can share with us what the FTE estimations are in the upcoming three fiscal budgets, or next three years.
Hon. H. Bains: To answer the question, the incremental increase to the FTEs, going forward, will be 20 FTEs in ’23-24, eight FTEs in ’24-25 and five FTEs in ’25-26.
G. Kyllo: That’s on top of a base of…. Is it 142?
Hon. H. Bains: Correct.
G. Kyllo: Now, I appreciate the significant backlog. I know that acquiring new staff is not always an easy undertaking. But can the minister share, with the significant backlog, why he’s choosing, or why the employment standards branch is choosing, to only increase staffing by 20 in this next year and then by eight and five the following?
With the significant backlog of claims, with the number of workers that are having to be delayed a significant amount of time in order to have their claims heard, I wonder if the minister can provide any justification on why he wouldn’t hire all those new hires as soon as possible in order to make maximum effort to try and reduce that backlog.
Hon. H. Bains: I think it’s always a challenge, as the member knows, how we attract people to these positions. These are quite skilled jobs, as you know. They need to have the skills of investigation and writing decisions and understanding the law.
The way that the funding is established for us, $12 million over three years — and the bulk of that money is in the first year — that money will give us the opportunity to hire 20. Then the following year, an additional eight will be hired. Then in the third year, we will hire an additional five, so a total of 33 FTEs will be brought on, added onto the current FTEs that we have there.
Also, you can only bring in so many at a time, because they require training. You know, it’ll be disruption to other people who actually should be working to deal with the lineup of complaints. It’ll take away some of the resources to train and to bring them in and make them familiarized with how the job is conducted. I think the 20 number is the right number for us to go with, along with the 142 that we already have.
It’ll be kind of a smooth mixing, those new with the existing staff, so that as they train new the following year, eight will come on. They will be trained, and then I think that’s the kind of thought behind it.
G. Kyllo: What I’m hearing from the minister is that there isn’t the sense of urgency in order to make every effort possible to try and reduce the backlog.
Further, I guess to follow up, through you, hon. Chair, to the minister. Has there been consideration to outsourcing? The minister did share yesterday and earlier today during our back-and-forth about the complexity of different files or different cases, that some are fairly simplistic in nature, not requiring a whole lot of effort or expertise necessarily in order to find resolution.
I’m just wondering if there’s been any consideration given by the employment standards branch to look at outsourcing in any fashion in order to try and get ahead of the curve and to try and reduce that significant backlog that is denying workers that access to justice today.
Hon. H. Bains: The answer is no. We have a budget made available to us to hire staff to do the work, so if the member is suggesting that the employment standards could contract out the government jobs to deal with this issue — no. We are not considering that.
G. Kyllo: Has the employment standards branch ever contracted out services in the past for other forms of service that might be offered through the employment standards branch?
Hon. H. Bains: We will get that information later, by the end of the day. I am advised that from time to time, they do bring, sometimes, the retired person who has expertise, and they need that person to help them for a certain period of time. So we’ll find out what arrangement usually is there.
Is that person hired as a contractor, or some other terms of employment? We will find that out, but that’s the extent. If you look at contracting out, it’s not that they go out there and hire a company as a contractor to provide them with 20 people to do some work for them. I’m advised that doesn’t happen. It’s just to bring in some of the people who have some experience, who’ve been in the system — bring them in from time to time to help them out in certain situations.
G. Kyllo: What I’m hearing is that there is the opportunity for utilizing contract services in order to try and, I guess, expedite the reduction in the current backlog.
The minister indicated that, full stop, they’re not giving consideration of contracting out. Yet the organization has contracted services out previously. I think that with the significant backlog and the failure of the employment standards branch to come anywhere close to meeting their target objectives…. I’m just wondering if the minister can share what his sense of urgency is in order to provide the necessary resources, whether that’s by direct hiring and maybe bringing all of those staff in the first year….
The minister has shared that there is flexibility with that funding envelope, and it is front-end loaded. So it’s certainly my understanding from the minister’s response that there is that opportunity to bring more hires in earlier than later. We’ve got a significant backlog that does not seem to be diminishing in the last year. It’s only gotten worse, not better.
I’m just wondering if the minister could provide some sense to the House as far as what his sense of urgency is and why he is neglecting to, at the very least, seek out and ask for the employment standards branch to give consideration to all efforts that might be undertaken in order to reduce the backlog and provide workers seeking justice timely service.
Hon. H. Bains: Urgency is always there. Like I mentioned in my previous answers, last year the urgency was so great that we went to the Treasury Board for the contingency funding, and we were given it, and then the following year again. Then we hired a number of temporary employees at that time with the contingency, because the contingency only takes you to the end of the year.
I’m leaving it to the employment standards branch director to look at whatever ways they can. If there are workers available who have retired in the past, who have expertise and could come and help them out, they can bring them, as I’ve suggested that they have done in the past.
They are also actively looking out and bringing people in on a permanent hire. People are going through the hiring process, and interviews are going on. As soon as they can get them, they are going to be on the payroll and start working and help reduce — or eliminate, sometime — the backlog that we have.
G. Kyllo: From the minister’s answer, I’m surmising that should employment standards branch have availability or opportunity to bring in additional staff, they have that latitude — that the staff numbers of eight that were estimated to be brought back in ’24-25 and the additional five hires in ’25-26 is within the employment standards branch purview. If they have opportunity to find skilled workers that could come back immediately and help address the backlog, they have that latitude to make that decision, or would that have to come back directly to the minister for approval?
Hon. H. Bains: They have. But again, we have to understand there is a funding envelope available to them for the first year, second year and third year. They have to stay within the financial constraints that they have — $12 million over three years. That’s how they have planned to hire them: 20 this year and then eight the following year and five the year after, so a total of 33. That’s what they will be doing.
How they bring them in? I think they do have certain latitudes.
G. Kyllo: Well, the minister shared as evidence of the urgency by which he wanted to try and address this growing backlog was to go to Treasury Board for additional dollars last year. I think anybody having a look at the numbers, because the numbers have only gotten increasingly worse, the funding that the minister may have requested from Treasury Board was grossly inadequate.
We did see a $2.71 billion surplus. Government has choices. I think we all appreciate that. But for some reason, the urgency of addressing this backlog for workers to get the justice they’re deserving seems to have not been elevated, maybe, to the level that I think workers would otherwise expect.
Here we are with the numbers progressively getting worse, for four years. The minister, again, is fully aware. I appreciate that there have been additional funding dollars that have been established for the next three years, going forward, but it appears grossly inadequate in order to reduce the backlog anywhere close to even meeting the minister’s own targets.
Again, the minister is identifying and sharing with this House that in the next year, he still is not estimating or anticipating that they’ll come anywhere close to meeting their target of having claims remedied within six months.
It’s hard to square the urgency which the minister is expressing with the increasingly deteriorating results, the lack of action, and now that the funding is available, there appears to be no real sense of urgency in that the opportunity to bring in the additional 33 hires over the next three years has been phased in over three years, rather than bringing those staff in now or finding opportunities to bring in skilled workers that do not require additional training, to even look at a contracting-out period for maybe a shorter amount of time in order to address that backlog.
The minister has many tools at his disposal, but it appears that the sense of urgency does not exist, and we will see the employment standards branch fail to meet their obligations of that 85 percent target for the next three years.
Here we have the minister with responsibility just seeing continued deterioration. Although there’s a sense of a plan, I don’t see the matrix or the data that would really spell out and give any confidence to workers across the province, who are seeking to have their claims adjudicated, that they’re going to get justice anytime soon.
Again, I revert back to the constituency letter that I have. They’ve been told it will be a full 12 months before anybody is actually even actively working on their file, let alone when there might be a resolution to that particular claim. So increasing concerns.
Now the minister did share that there are other operations within the employment standards branch that created some challenges through COVID, and otherwise, with increased requests coming in through their office. Can the minister maybe provide a bit of an overview on how many staff are dedicated just strictly to dealing with complaints that are coming in from workers across the province? If there’s another set of staff that might be dealing with temporary foreign worker issues, just to get a bit of a sense of how they’re triaging the actual work within the 142 base staff levels that are actually working within the employment standards branch.
Hon. H. Bains: We don’t have the full breakdown. Yes, there are different areas of responsibilities — the temporary foreign workers. There are people in collections and investigations. We will get that information, hopefully, before the end of the day.
G. Kyllo: I certainly would have hoped the minister would have had that information available, especially with the amount of inquiry we’ve been undertaking with the employment standards branch both yesterday and today. But anyhow, I certainly take the minister at his word that we’ll have that by end of day. That would be fantastic.
With respect to the additional items that are undertaken in the office, the minister referenced specifically TFWs, and I will have a number of questions relating to that. It certainly would be helpful to have a better understanding. Maybe one of the staff members might be so kind as to maybe just even text over to the employment standards branch to find out what the complement of the number of employees that are dealing with the TFW program. But to the minister on the TFW registry. Can the minister share when that actually came into effect?
Hon. H. Bains: December 2020.
G. Kyllo: Thank you. And can the minister share what the level of inquiries has been for registration on that TFW website that has happened over the last number of years, what the process might look like, the amount of time that might be associated with an application coming forward?
I do note that as part of the justification for the funding envelope increase, the minister did indicate that a significant increase in TFW registration is in part of the work requirement that has provided, I guess, the support for the funding increase. And with that, if the minister might share if there were any specific numbers of staff that were allocated directly to dealing with the TFW increase in applications.
Hon. H. Bains: Just to put things in perspective, let me go back to the first question and the process.
As I mentioned, in December 2020, the registration requirement for employers who wished to hire temporary foreign workers under the federal temporary foreign worker program came into effect, which requires them to hold the certificate of registration in our province. The provincial employer registry is the initial level of screening and tracking for these employers. Prior to issuing a certificate of registration, the ESB verifies an employer’s compliance with the applicable labour legislation.
Once registered, an employer can apply to the applicable federal program through Employment and Social Development Canada for a labour market impact assessment, which allows temporary foreign workers to apply for a permit to work in Canada. So that’s, kind of, the process.
As far as the timing is concerned, I’m advised that it takes, probably, 15 or 20 minutes for the employer to fill in the application. Once the application is assigned to an officer, it is a very short period, maybe same day. All they need to do is check their name, see if there’s any violation under that name. Or they may have to go back and get some more information. That’s how that work is done.
So now, putting things in perspective of how many applications…. Up until about four months before the end of 2022, the normal flow of application every month was about 250 applications. In the last four months of 2022, 10,000 applications came. Compare that to the entire year of 2021. They received less than 3,000 applications. So there was a huge search in employer registration attempts.
Obviously I think this probably matches employers telling us they can’t find workers in the province, so they look outside. In order to do that, they have to go through this process. We try to do it as soon as possible, as quickly as possible. It’s a pretty simple process. As long as they have not had any violation on record, the process is very quick.
G. Kyllo: I certainly appreciate that going from 250 a month…. Increasing to upwards of 2,000 or 2,500 a month is a significant increase.
Now, with that, what efforts were undertaken in order to try and address that huge surge? I can appreciate that as many employers were looking for that access…. My understanding is that they have to register first before they can even look at hiring a temporary foreign worker.
I’ve been alerted to a number of challenges, especially with the agricultural sector, that indicate this backlog is putting some pressure on them. What effort has been undertaken in order to address that backlog?
Further to that, within the employment standards branch, we’ve got competing pressures. Complaints are piling up. Applications from employers to register for the TFW program are increasing. All at the same time.
How did the employment standards branch undertake to manage that? Did we see a repositioning of resources in order to address the TFW registry, or were staff staying within their allocated work responsibilities? Were there additional resources that came, in any way, shape or form, to address the TFW backlog?
I think where this is important…. I can appreciate, for the branch, that they’re going to have competing challenges. I can only assume that, within the branch, they must have had, at some point in time, to make a choice on where the pressure was the greatest. If that was the case, I would be interested in finding out if that was undertaken and, if it was, what negative impact that would have had on either a continual growing of the backlog of the TFW applications or, potentially, the increase in the backlog of complaints that have been piling up.
Hon. H. Bains: The employment standards branch has the ability to reallocate the resources that they have based on the urgency in a certain sector. For example, agriculture demand, as the member has said, was such…. It’s so timely. A crop will not wait for the workers to come.
The employment standards branch was able to double the number of people who were dealing with temporary foreign workers at that particular time. My understanding is that once it was brought to their attention, I believe within two weeks, those applications were dealt with. They are responsive to the needs of the sectors, but again, it takes away from some of the other areas.
Hopefully the member now will have a better understanding of the nature of the work at the employment standards branch. This was not anticipated either. You are set up for 200 to 250 applications every month. All of a sudden it’s 4,000 in one month. Within four months, it’s 10,000.
Some of them are very, very time sensitive. Agriculture is one of them. So you need to be responsive to those needs in a timely fashion. Then it does…. Yes, I would admit that it would compromise the timelines on the other side that they are trying to help.
This is the type of work that employment standards is faced with every day. You don’t know what is coming next. They have to be ready, and they try to do their best in order to accommodate the needs of the sector.
G. Kyllo: Thank you to the minister for that response. A couple of questions. One would be: is the TFW registry something that’s mandated across Canada, or is B.C. a bit of an outlier with respect to the creation or the requirement for the provincial registry?
Then second to that would be: does the employment standards branch track the backlog? The minister indicated that, largely, it sounds like the backlog was addressed within a couple of weeks and that a huge number of applications was addressed. But just getting a bit of a sense: has that problem been remedied now? Is there a huge backlog? Or, largely, are those companies wishing to register now getting registered in a timely fashion?
By “timely fashion,” if the minister could share: is the expectation of the employment standards branch that those registrations would occur within a one-week or two-week or three-week period? If the minister could just share with this House specifically what that time frame would look like.
Hon. H. Bains: The two-week period that we mentioned was for the agriculture applications only. We were able to deal with that because of the timing and the urgency there.
The member asked the other question: which other provinces? Manitoba, Saskatchewan and B.C. are the three provinces that require the registration of the employers and the licensing of recruiters.
Now, when you look at the temporary foreign worker numbers, we’re No. 2 now. We have, on a per-capita basis, a lot more temporary foreign workers here in B.C. than many other jurisdictions. By Christmastime, we had something like 10,000 applications, as I mentioned to the members earlier, for the temporary foreign worker registrations. We are down to 5,400 now.
We prioritized the agricultural ones first because of the timing and the urgency. We are working away at those applications that are still on file. We are down to 5,400, so we’re really catching up on the temporary foreign worker files.
G. Kyllo: I appreciate the clarity that the minister has provided. I wasn’t aware that the applications for companies were aggregated or separated by industry classification.
How many different industry categories are actually tracked for the TFW program? The minister has indicated agriculture. I’m assuming that there are others, for maybe oil and gas or maybe for construction. If the minister could just share what the actual backlog is for the different industry sectors that have been identified.
Hon. H. Bains: No, they don’t break down by sector, by the industry. The only reason they were able to help agriculture was because anywhere…. I think it’s called NAICS code. When it was identified as agriculture, they dealt with them expeditiously because of the timing and because of the fruit that needed to be picked. These workers had to be there. They were able to pull those applications and prioritize them.
But the rest of them are all there — 5,400, as I said. We’re inching away to clear up those applications as well.
G. Kyllo: I surmise from the minister’s response that applications, as they come in, are first come, first served. However, in the case of the agriculture sector, there was, I guess, obviously increased pressure, maybe even from the Agriculture Minister, expressing some concern. The ESB was able to actually break out the different job classifications that might be pertinent to farming. That’s how they’re able to separate and actually triage and address those complaints.
Am I correct in my understanding that all other company registration applications are on a first-come, first-served basis? What might the timing be? The minister indicated that the backlog is now down to 5,400 companies that are waiting in a queue to get registered so they can then move forward with their temporary foreign worker application.
If the minister can share what that timing might look like. Is that two weeks? Is that five months? Just to get a bit of a sense on how severe that backlog is. Then also, with respect to that, there is a follow-up. If the minister can share what percentage of resources with the employment standards branch would be utilized or dealing specifically with the temporary foreign worker registry.
Hon. H. Bains: To answer the question, yes, they deal with them first-come, first-served basis. I gave the numbers. There are 5,400 left on the file right now, and they’re working very hard to clear up those. Right now I’m advised they are dealing with applications that came in mid-January. Hopefully, soon we will be able to overcome that side of the backlog as well.
It’s difficult to move from 200 to 250 a month to all of a sudden 4,000 each month, going forward. In four months, a cumulative 10,000 applications. It requires extra resources.
They doubled the team that the member…. I’m advised, at least, by that number. They used to have seven workers there, and they doubled that to 14, until we are able to deal with that backlog.
G. Kyllo: I appreciate the response from the minister. Just to be sure that I’ve got this correct. These are for companies to register. So each company that’s registering, it’s not necessarily they’re registering to hire maybe one employee. There could be multiples.
When we hear of a 5,400 backlog, these are 5,400 companies that are yet waiting in queue, unable to actually move forward with their application to hire a temporary foreign worker because of the backlog currently that resides within the employment standards branch. It’s likely far in excess of the necessity for companies to acquire 5,400 employees. It could, quite likely, be a magnitude far higher than that.
This line of questioning…. I certainly appreciate the candour of the minister in sharing this information. It is important, when we have a significant shortage of workers across the province and we see companies struggling to fill unmet needs and then are having to reach out, through the employment standards branch, to do this initial registration….
That is not a Canadian requirement. This is something that is imposed by the current government, and I’m sure there are very valid reasons for it, but it is currently, yet again, one more impediment, one more holdup or delay for companies to seek that opportunity to actually make application for temporary foreign workers. It’s dealing with applications from mid-January. That’s a three-month delay.
I think we can all appreciate if you’re a company and you don’t have the necessary resources in order to fulfil market demand, and you’re looking to avail yourself to the opportunity to bring in temporary foreign workers, this is, yet again, another three-month delay that has been brought on largely by this government, and for very valid reasons. I don’t deny that. Again, these backlogs do have real-world implications, both for workers and, in this case, also employers that are trying to fulfil their specific needs.
Now, one other question, if I may. Once a company is registered, is there a requirement…? Once you’re registered, are you registered forever, or is there a requirement to come back and re-register? What does that process look like?
The other question that I didn’t raise is: is there a fee associated with that registration process?
Hon. H. Bains: I’m advised there’s no fee involved in registering.
Yes, the applications that they’re dealing with that came to them in mid-January are the ones that they’re dealing with. Again, we are advising, and it’s advertised well to all employers to apply well in advance. So if they apply early enough, they will get the application sorted out, and then they could go on to the federal side of the requirement, whatever that is. Then they could have their members or employees whenever they want them.
So I think that’s the answer. But recruiters do pay. There’s a requirement for them to post a bond. I believe — probably the member will ask how much — it is $25,000, and it is one requirement for the recruiter but not the employers.
Interjection.
Hon. H. Bains: Twenty? Sorry, $20,000. Did I say $25,000? It’s $20,000.
G. Kyllo: Great. Thank you. I don’t believe I heard a response if there’s a requirement for annual renewal of that application process.
Hon. H. Bains: The registration can be up to three years.
G. Kyllo: Great. Thank you very much.
Now, for the company that calls in to register, is this only by phone, or is this online? I’m assuming that likely the review would be to ensure that it’s a valid company, that it’s got a business licence and may be registered for GST. Just what does that look like? And how much vigour, I guess, or how much review is actually undertaken within the office?
I appreciate the need to have a registry. I’m just wondering how much information is in there and what level of work is undertaken in the office in order to vet those applications, whether they’re coming in by phone or online, how much time might be taken on those applications and, I guess, what level of rigour is undertaken in order to review and then finally check the box and allow, then, that company to actually be registered.
Hon. H. Bains: To help the member, I think if I say that the application is online and, as I said before, it takes about 15, 20 minutes to complete the application. The act says that this is the work that the director will do once the application is received: “The director may refuse to issue a certificate of registration to the applicant if the director is satisfied of any of the following….”
All of that is online, listed there, Member. If you want to go back and look at the information that is online, it’s available — what is in the act. The act is the one that you and I…. I know the member and I have debated in the House when this Temporary Foreign Worker Protection Act was brought in. So based on the act, it is all available online.
G. Kyllo: I appreciate the response from the minister.
With respect to the review process that’s actually undertaken…. This is the piece that I’m kind of querying about. I appreciate there’s a need to register, but once staff see that registration that comes in online…. I can appreciate it probably, likely, needs to be complete. There are probably required fields. But once it has come in, is it just a rubber stamp process, or is there any investigative work to find out if there have been any other complaints or challenges with that particular company that’s looking to seek registration? What level of rigour is undertaken?
If there is such a significant backlog and if the review of those applications is just a review of completeness, I do question and wonder why the process is even required or why it isn’t just an automatic self-registration. If there’s the need for the employment standards branch to review those after the fact and maybe call into question any applications that might be suspicious, that would be one thing. But we’ve got this huge backlog, and I’d just like to have a better understanding of what work was actually undertaken by the branch to review these business registrations as they come in.
Hon. H. Bains: I think I tried to answer. The application comes in. Then there are requirements under the act. They must be followed. The employment standards branch cannot change the act. The act requires them to do certain due diligence. It’s listed in the act, and it is available online if the member wants to go back and take a look at exactly what and under what circumstances the application can be refused. Those are some of the prohibitions listed.
I can give you one example, because it’s going to be forever if I just keep on reading the act over and over. As I said before, the director may refuse. Then there are a number of…. I think there are about seven different scenarios where the application can be denied.
The first one is: “the applicant has not complied with this Act or the regulations.” So that needs to be determined. “The applicant has failed to meet any qualification or satisfy any requirement of this Act or the regulation…. The applicant has failed to comply with any terms or conditions set out in an approval given by the Government of Canada for the applicant to recruit foreign workers.” Then the next one is: “the applicant has failed to comply with applicable labour legislation.”
Those are some of the examples. The due diligence is done by the officer, and then the certification is given.
I think it is pretty simple. If they make the application online — like I said, 15, 20 minutes — then the officers review the application.
If the name doesn’t come up that there is some violation against that employer, then I think they will do some more work in order to certify this or register this.
If there’s nothing there — they are complying with all these requirements of the act — they will simply, if you call it, rubber-stamp it. It’s not a rubber stamp. They have to do the due diligence to make sure that they comply with the act.
G. Kyllo: The minister referenced if they check and nothing comes up. If the minister could maybe just provide a bit more detail. Is there a specific website or an application, either provincially or federally, that employment standards branch staff would look to, to find out if there have been any labour-related violations?
I’m just trying to better understand. In what cases would an application be rejected, and how much time is actually undertaken by the office with that? If it is indeed a specific site that they’re going to, to look for potential violations, it seems to me that there could be a significant opportunity for some automation with respect to that application.
Hon. H. Bains: The member needs to understand…. What was the need for the Temporary Foreign Worker Protection Act to be brought in? I appreciate that the members on the opposite side are also supporting us on that. It was because of the exploitation that was going on.
We are talking about workers, real people. They’re brought, by the employers, into Canada and British Columbia to help them because they could not find workers here. These are real people with families. They are someone’s sons and daughters, brothers and sisters, moms and dads and grandparents, in many cases.
There was exploitation. In many cases, we heard that their passports were taken away. The threat of deportation was always hanging over their head. They were made to live in very unhealthy or very filthy conditions. Sometimes you heard stories in the media. Five or ten people in a room. No outside access to anybody or any support. That was the need, why we brought in the Temporary Foreign Worker Protection Act.
For us to fast-track that or rubber-stamp it or automate it…. Then we are missing the real reason behind it.
What the employment standards branch does…. One, they look at the application to see that that particular employer is a legitimate employer and, two, that they have complied with the law in the past year or whatever time that they had the registration previously given to them. If they are not, then they are given the certification.
How they do that is left up to them. Do they have a website, to go on one website or the next website or somewhere else? That’s what they do, and they’re good at that. The idea is to make sure that we give registration to the employers who are good employers, who have worked within the laws of our country and our province. They treat their employees with respect and dignity and comply with our minimum standards here in British Columbia.
The process is quite fast, actually. Like I said, 10,000 applications at the end of the year. Now we’re down to 5,400. In addition to that, we had to actually fast-track the agricultural ones. The member suggested that maybe the Minister of Agriculture was lobbying too hard. Actually, it was the farmers themselves.
You have a farmer sitting here, from Penticton, in the House. He can tell you. The cherry will not tell him: “I’ll wait until your worker comes in to pick me.” The cherry is going to ripen, and it needs to be picked at that particular time.
That’s why we fast-tracked those applications, because of the needs, because of the urgency that was brought on by the farmers.
G. Kyllo: Okay. I appreciate the response from the minister. Now, I can only ascertain, from the minister’s response, that the work within the office is a fairly fast process. The amount of rigour around that system of approving a corporate or a company application likely does not require….
I certainly stand to be corrected if it’s otherwise. There’s not a requirement for a direct phone conversation with the company representative. There’s certainly, I would estimate, nobody going out inspecting that they have appropriate housing for those workers they may or may not be bringing in. I appreciate that there’s value in the registry. I also appreciate that we want to identify….
If there are companies that are applying that have been bad actors and have had challenges, either with Canada or with the province, those are identified and highlighted. But if those are two websites that are looked at, and that’s the nascent kind of overview before the application proceeds, then, in that case, in that instance…. Maybe rubber-stamping is the wrong…. There is definitely a high degree of necessity, I think, and value in having a registry.
The reality is…. Although there’s value in having that registry, there’s also a backlog. It’s delaying the opportunity for foreign workers to come to work in British Columbia and also delaying the opportunity for businesses in B.C. that are in need of staff.
It was the agricultural sector that was under a great amount of pressure. I appreciate the efforts of the employment standards branch in order to expedite those, but we will quickly be into tourism season. We’ll have similar pressure from maybe restaurants around the province for similar types of applications.
Again, the minister did indicate that there has been a focused effort on reallocating existing resources within the branch. Seven staff have now grown to 14. I appreciate the necessity of that, but that is seven workers that are now not working on addressing complaints, which also has a huge backlog. The backlog has reduced, as the minister indicated, to 5,400, but I guess there’s really no guarantee on how many more applications may come in, in the months ahead. We could have additional surges. As well, we’re going to have increasing pressure as we get closer to that summer season.
I know that there is not an easy answer to any of these questions. I think when we go back to the funding envelope that the minister has requested…. There was a lot of focus in our conversation around the backlog of workers that have made application to file grievances, specifically with reference to complaints they may have with an employer.
The office, as the minister has shared, also is undertaking this new registry program that has only been in place for just a little over two years now. That’s also causing considerable pressure.
What confidence or comfort does the minister have that the appropriate funding and the appropriate resources are being made available to the employment standards branch in order to address this growing backlog of workers that are failing to get timely justice to their claims and this growing backlog that is delaying the opportunity for businesses to gain access to temporary foreign workers?
Over the last three years, I have consistently asked the question, consistently asked for the additional resources to be put in play to address these needs. The problem has only gotten worse over the last number of years, not better. The minister is telling us today that, yes, with this new funding envelope, everything is going to be great. I don’t necessarily share that same confidence.
Again, back to the minister’s response on the existing backlog of workers that are being denied or being delayed access to a resolution of their claims. The minister is lowering the bar, reducing the expectation over the next two years.
Does the minister have confidence that the funding envelope that he has presented as part of this budget is adequate in order to provide the service that many British Columbians and businesses are relying on for service delivery from the employment standards branch?
Hon. H. Bains: Yes.
G. Kyllo: Well, that is great to hear.
It’s interesting. I’ve had this opportunity for…. I think this is my third set of estimates with the minister. I do appreciate his candour and his willingness to share information that’s being shared through staff, through him. But it is concerning when issues that are raised and canvassed in this House, in this chamber, are brought forward.
Government, I appreciate, has choices. There was also a significant surplus this last year, $2.71 billion, with lots of dollars being rolled out the door, lots of dollars flowing to organizations or municipalities, $1 billion. Municipalities didn’t have specific asks that totalled $1 billion.
There was money that government has chosen to put out in different areas of the province. I don’t deny them that opportunity. However, it certainly does not appear…. There was a shortage of funds that were available to provide the necessary resources to the employment standards branch to provide these very important services for workers — again, some of the lowest paid and some of the most vulnerable employees in our province — to get timely access.
We also have a new registry that, again, government has brought in for very valid reasons. But it is adding to the backlog, further delaying that opportunity for businesses to hire those temporary foreign workers to assist with growing the economy in our province. That is where the challenge lies.
I guess we’ll take the minister at his word today. The funding envelope that he has asked for and is providing to the employment standards branch is going to move forward to reduce those backlogs and provide that service that’s required and expected of the employment standards branch. I, unfortunately, don’t have that same confidence.
I’m wondering, hon. Chair, if we might maybe take a five-minute break.
The Chair: Certainly.
Members, we will take a brief recess.
The committee recessed from 2:59 p.m. to 3:05 p.m.
[H. Yao in the chair.]
The Chair: I call Committee of Supply, Section A, back to order. We’re currently considering the budget estimates of the Ministry of Labour.
G. Kyllo: Thank you very much for the break.
Just before we leave this whole temporary foreign worker business registry, can the minister share…? If there is a trade or labour union that’s seeking to bring in employees, maybe, from another union hall south of the border, is it the union hall themselves that would have to register, or is it the companies that would be utilizing the hall that have to register? I’m just wanting to find out a bit more information on how that process works.
Hon. H. Bains: It’s the employer who will be registered. It will be the employer who will be hiring the temporary foreign worker, so the requirement is for the employer to register.
G. Kyllo: Okay. I appreciate that.
Company Y is looking at bringing in additional workers. The union hall that they normally bring workers from is empty. If they identified workers south of the border that might have the opportunity to come in, it would be the company that would have to register. Then would the application be made from the company directly to the federal government? Or is there a different arrangement that would be undertaken for that mobility of workers that might belong to the same union but are just working out of different halls?
Hon. H. Bains: Again, rather than getting into finer details about how everything gets done, the act talks about and speaks about the employer, the employer hiring that employee. An employer will be registering with the employment standards branch if they wish to bring in a temporary foreign worker.
G. Kyllo: Would that also apply to B.C. Infrastructure Benefits, BCIB?
Hon. H. Bains: If there’s an employer and they need to bring in temporary foreign workers, then the registration is required.
G. Kyllo: Okay. Thank you very much.
The reason I raised the question is…. It’s my understanding that BCIB is having challenges with providing the necessary workers for many projects undertaken in the province and that there has been consideration of bringing in temporary foreign workers. To confirm, as the minister has indicated, BCIB, although it’s a Crown agency, would also have to register.
The other question I have is: is the registry public? Is it made available to the public? Can anybody in the province have a look and see who’s actually registered on this list?
Hon. H. Bains: Yes, the registry is available online.
G. Kyllo: Great. Thank you very much for that response.
I appreciate that immigration is largely a federal concern. However, we have certainly heard…. We’ve had an increasing number of international immigrants come to the province. I think some of the numbers that I’ve heard recently are as high as 100,000 annually. If I think back to 2013 to 2017, B.C. was attracting about 44,000 international immigrants a year.
Could the minister maybe provide context? Is that something his ministry is having a look at, as far as how many international immigrants are coming to British Columbia in an average year and, also, those that might be coming to B.C. under maybe even a student work permit?
I’m hearing that students and those under student work permits could be as high as 60,000, so potentially about 160,000 international individuals a year coming to B.C. Then, as a further part of that, I just have a series of questions around the provincial nominee program.
If the minister might just share a bit of context on where he sees his ministry sitting in better understanding the impact of international immigration into B.C. from a labour perspective.
Hon. H. Bains: That information may be available from…. I think it resides with the Ministry of Municipal Affairs, from the provincial side, and not our ministry.
G. Kyllo: Well, I appreciate…. As I set out, it’s largely a federal issue. However, it does have a significant impact. We have the Ministry of Labour undertaking a registration process to identify which companies are actually wanting to attract temporary foreign workers. We see a significant labour shortage across the province in numerous sectors, from agriculture to construction to hospitality.
Is the minister willing to share with this House how he perceives the Ministry of Labour’s outlook as far as having a look at different labour market surveys around the province and having a good understanding and identifying what areas or skill sets might be needed around B.C.?
Then further to my first question…. It was just if the minister might be able to share a bit of context around the provincial nominee program and how he sees that particular stream. My understanding is it’s managed within the Ministry of Labour. I’m seeing some head shaking, so maybe that has moved. Anyhow, maybe I’ll let the minister provide some clarity.
Hon. H. Bains: No. Both areas of questioning lie…. One with the Municipal Affairs Ministry and the other one with Advanced Education.
G. Kyllo: Just to be clear, the minister has indicated that it’s Advanced Education that has responsibility for the provincial nominee program.
Hon. H. Bains: The PNP is with the Ministry of Municipal Affairs.
G. Kyllo: Great. My apologies. I thought that the provincial nominee program was originally within the Ministry of Labour. In any event….
Interjection.
G. Kyllo: Sure.
I know back from my experience working with the then Ministers of Jobs, Tourism and Skills Training and Labour that the provincial nominee program was a great program. It provided an opportunity for B.C. to actually identify and allocate international immigrants to a specific stream. It was focused on economic immigration.
With the labour challenges that we have in the province currently, is the minister able to share his interests or thoughts…? Has he consulted with the Minister of Municipal Affairs with respect to the magnitude or the size or the quantum of eligible applications that can come in under that provincial nominee stream?
I appreciate that the responsibility may lie elsewhere, but those skill sets and those opportunities for international immigrants to come in under that specific stream are of great benefit to the provision of labour across the province.
Hon. H. Bains: If the member is advised by his leader that he should be looking at PNP and dealing with the labour….
I think you probably should guide that somewhere else.
The Chair: Through the Chair, please.
Hon. H. Bains: Yes, the PNP program is with Municipal Affairs. Under the mandate letter they have, they do a great job on that. From time to time…. There are always discussions between different ministries, cross-checking with each other. It largely is their responsibility, and we’re not too deeply involved in that.
G. Kyllo: Okay, I appreciate that. I think what I was trying to look for was to see if there is any collaboration within the two ministries on a file that, I think, has a significant impact on the provision of labour across the province. It does not appear that that’s the case.
With respect to other challenges…. We’ve got significant increases in inflation around the province. Businesses are really struggling. We’re certainly hearing that just about every day now, with a significant number of business closures, for a whole multitude of reasons.
One of the efforts which, I know, the government has undertaken significant efforts on is on increasing the minimum wage in B.C. We are looking for this annual increase, I think, to come into effect in June of this year. I wonder if the minister can share with us what insight he might have with respect to the magnitude of the increase that would be forthcoming this June.
Hon. H. Bains: The member will know that when we formed government in 2017 and I was given the responsibility for this file, our minimum wage was one of the lowest in the country. So we appointed a Fair Wages Commission.
They went around the province and talked to academics, to labour and to businesses, especially small businesses. Their mandate was to show us the pathway to $15 an hour. Unanimously, they came back and gave us recommendations on how to increase the minimum wage in the province, which would be predictable, which would be gradual and which would provide certainty for the employers. So they did that. By the end of the fourth year, our minimum wage went to $15.20. At that time, that was the highest of all the provinces.
We’d said that once we reached the minimum wage to $15, we would tie future minimum-wage increases to the rate of inflation. That’s exactly what we did last year. This year we haven’t made that announcement yet. I would ask the member to stay tuned. Shortly, we will be making that decision and announcement.
G. Kyllo: I appreciate that a decision has not been landed on yet.
To the minister, does the ministry have the latitude for adjusting the rate of increase to the minimum wage? Or is it automatically tied to the rate of inflation? Does the minister have some discretion to take into consideration some of the concerns of businesses, with the additional, increasing costs and the high inflation rates that were experienced across the province?
I’m just looking to see if the minister has the latitude to make adjustments. Or is the legislation fixed, which would actually require a legislative change, if there were going to be the proposal of a rate increase other than the rate of inflation?
Hon. H. Bains: We have not passed legislation requiring that it must be tied to the rate of inflation. It is at cabinet’s discretion, but I want to advise the member of what other jurisdictions have done or are doing when it comes to minimum wage.
The federal government has already announced that the minimum wage has been increased by the rate of 7.1 percent. Then Saskatchewan will be raising the minimum wage by 15.4 percent; they will be going from $14 to $15 within a year. Manitoba also made the announcement that they’re increasing their minimum wage in two segments, a total of 13.3 percent, all in 2023.
Ontario has made the announcement already; they are increasing their minimum wage by 6.8 percent. Quebec is 7 percent; New Brunswick is 7.3 percent. Then you go to Nova Scotia. They’re also raising their minimum wage, by 10.3 percent.
You can see where all the jurisdictions are going, because they all understand. Of course, we understand that businesses are struggling, coming out of COVID, but I think most jurisdictions are also saying that we cannot ask our lowest-paid workers to discount in any support for the businesses.
There may be other supports that different jurisdictions look at, on how to support the businesses, but it shouldn’t be on the backs of the minimum-wage workers. You can see how most of the jurisdictions are moving. We’re looking at our options as well, and we will make that announcement soon.
G. Kyllo: Under the current Premier, we’ve noticed that the minister’s mandate letter, to create a new consultative mechanism to engage with employer and worker representatives…. That has actually been dropped from the minister’s mandate letter. I just wonder if the minister can discuss why this happened.
Hon. H. Bains: I don’t know. Maybe the other members from his caucus who have been in cabinet could probably advise him and give him the same answer: you can’t tell the Premier what to do and what not to do. It’s the Premier’s call.
I was given the mandate letter. What the reason was resides with him. Maybe the member can ask the question when the Premier’s estimates come to the floor.
G. Kyllo: Is there still a consultative framework in place, with both employers and employee groups, as it pertains to the minimum wage?
Hon. H. Bains: Yes, we meet with representatives of business, and labour reps, and many other stakeholders on a regular basis.
On the minimum wage, when the Fair Wages Commission gave their recommendations, this is what they had to say at the end. To “establish predictable indicators for future increases to the minimum wage, such as CPI (or some other relationship such as between the minimum wage and the poverty level or average wage levels).” So their recommendation was: either you go with CPI or have a relationship with the average wage or the poverty level. That’s their recommendation.
We have met with the labour groups. We have met with business groups who wanted to talk to us about the future increases to the minimum wage, and we heard them.
G. Kyllo: Has any work been undertaken by the ministry to give consideration to the impact of the increase? It was a pretty significant increase in the minimum wage, with respect to the availability of lower-paying jobs.
I’ve heard from different industry groups that there’s been a significant shift to more automation. We go to the grocery store, and we see more and more automated checkouts. At fast food locations, you see more and more use of automation. Has there been any work undertaken by the ministry to have any kind of a sense of what the impact of the increasing rate of the minimum wage is on the availability and the sheer number of jobs at the lower end of the pay scale in the province?
Hon. H. Bains: The automation at workplaces…. I’ve been subject to that before I came to these halls, working in sawmills, in foundries. Automation decisions are made by the employer for a variety of different reasons. A new technology is available that would make their work more efficient and of a higher quality. There are a variety of reasons. Are the wages one of them? I don’t know. Our ministry doesn’t do that kind of work.
I can remind the member that when the Fair Wages Commission submitted their report, they did mention that they didn’t find any relationship to increasing the minimum wage and job losses. I mean, think about who they are. The chief economist from the B.C. Business Council was on it, an academic was on it, and the labour leader was on it. I think they did their work.
Then I could remind the member, also, that we received, at that time, a letter from 50 leading economists. Seven of them were from three leading universities in British Columbia. Their conclusion was also that there is no relationship to jobs with the increase of minimum wage. In fact, they went as far as to say that anyone suggesting there’s employment loss due to the increase of the minimum wage is fearmongering.
Many of the others have done…. Economists have done that. The Fair Wages Commission has touched on it. But no, our ministry does not do that kind of work.
G. Kyllo: We’re certainly, as the opposition, starting to receive, and I’m sure the minister is receiving as well, from different industry groups, concern about the inflation rate and the layering on of all these additional cost measures. Businesses are not having a real successful time out there, especially for many of the retailers and food services, which are still yet to recover from pre-pandemic levels. The Restaurant Association has shared some information — again, expressing considerable concern about a potential increase as high as 6.7 or 6.9 percent on June 1.
I do appreciate the information the minister provided, with some of the significant increases that are happening in other parts of Canada. Those are significant increases, probably more commensurate with some of the increases that B.C. has undertaken over the last number of years. I believe the minimum wage rate has gone up approximately 34 percent in the last five years, with, again, another significant increase potentially coming down in June of this year.
I’m sure that the minister has also received some of the similar letters that we have received, but I think it’s probably worthwhile to just read this into the record, if I may. The employer community is expressing concerns with wage increases due to, potentially, being tied to the rate of inflation. Both Restaurants Canada and the B.C. Restaurant and Foodservices Association are calling for a minimum wage increase cap of 3 percent, instead of the possible 6 to 7 percent increase.
I’ll quote. “We do want to pay our workers well. We do want to have a healthy hospitality industry, but at the same time, we’re seeing restaurants closing right now because of inflation, rent increases, food increases. I can understand if we were underpaying or we weren’t paying competitively, but we are.” That was from Ian Tostenson, CEO of the B.C. Restaurant and Foodservices Association.
In dialogue I’ve had with a number of restauranteurs, specifically when it comes to the service industry, I’m hearing that some servers are making upwards of $200 to $300 a day in tips, over and above their wage. Although they are eligible for the minimum wage, their total wage earnings are far in excess of the minimum wage. I think it probably would be unfair to characterize all individuals that are working at the minimum wage rate as that being their only income. There is a significant food service industry.
I know that even going to a Subway now, to get a Subway sandwich, the machine is passed back to you with a tip function that starts at 15 percent and goes to 17½ and 20 percent. Even some of the more fast food service industries are starting to attract tips, which I’m assuming is going to be going back to help increase wage earnings for those workers in those sectors.
I appreciate the fact that he’s giving serious consideration to this increase and the impact it’s going to have not just on workers, but also on some of the very important industry sectors. Businesses really are struggling. So I hope that the minister would provide that notification to businesses sooner than later.
I believe the requirement is the minimum wage increase is normally reported around the 1st of June. Obviously, the more advance notice that the minister can provide to those businesses, I believe, would provide them, certainly, with some comfort and some ability to prepare.
The Chair: Sorry, is that a question?
G. Kyllo: That was actually not a question; that was more of a statement. Thank you very much, hon. Chair.
Moving on to WorkSafeBC — I’m not sure if that’s going to require a staff change for the minister — we’ve seen considerable changes within WorkSafeBC. As I undertook last year, I’ll just provide the minister an opportunity for a bit of an overview of the work of WorkSafeBC — what their annual revenues are, expenses, FTEs, what has actually happened as far as a percentage of service delivery cost. Maybe I’ll provide the minister an opportunity to provide any kind of opening comments he has with respect to WorkSafeBC. I’m seeing a headshake.
Okay. Then can the minister set out what the gross operating budget is for WorkSafeBC and the number of FTEs, and what that increase has been over the last year?
Hon. H. Bains: The operating budget for 2023 is at $619 million. In the previous year, 2022, it was $572 million. FTEs in 2022 were about 3,200, and, in 2023, just a bit over 3,300.
G. Kyllo: When we have a look at the base rate of a premium that’s actually paid by businesses…. I know that the minister has…. The direction of government was to actually cap the rate for this past season, but I do understand that there have been some changes in elevation within different industry sectors. Specifically with the restaurant sector, it’s my understanding that there has been a significant increase.
I’m just wondering if the minister could share what that increase was for the restaurant and bar — I believe that’s all in the same category — and what the justification for that increase may or may not have been.
Hon. H. Bains: I want to clarify, so that the member understands, that these rates are not determined by the ministry or by the minister. These rates are determined by the board themselves.
Now, there are different ways the rates are adjusted or set. We understand that the restaurant rates were increased by around 20 percent. What I understand is that there are many situations that bars and restaurants have experienced in recent years. As I said, WorkSafe was able to keep the average premium rate flat for the last six years.
Each year the costs in some industries go up, some industries go down, and others stay the same. In the case of restaurants, bars, pubs and nightclubs, the industry has been seeing increasing claim costs, which have resulted in a higher 2023 base rate. It’s due to the increased claim costs resulting…. In restaurants, for example, slips, trips and falls — which are the major drivers of claims costs — account for approximately one quarter of all claims.
To put that in context, the important point is that the base rates for restaurants and bars is actually still being discounted below the cost of claims in the industry. They’re able to do that because they are able to use money in the surplus funds.
I understand that when the rate goes up, there is a concern. I’m concerned as well, but there are certain criteria that the WCB used in order to establish rates for each year, and different categories. Like I said, some rates go up, some go down, some stay the same, but it’s based on the experience rating, the claim costs from that particular industry.
G. Kyllo: I appreciate that. I just looked at my notes from last year. I believe the average rate was $1.55. Can the minister share what the base rate is for restaurants and bars? Are restaurants classified separately from bars, or are they all lumped together?
I guess the other follow-up question would be…. The minister indicated that a quarter of the claim costs…. I took it to be from slips and falls within that category group, but I just want to clarify that I heard the minister correctly.
Hon. H. Bains: Yes, to the member. The rate of $1.55 average is still there this year. When we come down to restaurants, their actual cost is $1.14, but they are paying 95 cents. For pubs, bars, nightclubs and lounges, their cost, again, is $1.14, but they are paying 94 cents. So what they’re paying is well below the cost of claims in that sector.
G. Kyllo: If I can just get clarity, the minister, in his previous answer, had referenced, I believe, that slips and falls represented about 25 percent of the claims costs for that industry sector. I wanted to see if the minister could just clarify that.
Hon. H. Bains: This is how they are lumped. For restaurants and bars, slips, trips and falls are a major driver of claim costs. They account for about one-quarter of all claim costs.
G. Kyllo: Fantastic. I appreciate that.
A 20 percent increase for any industry, at any given time, is a pretty significant increase. The minister did share that 25 percent, probably, a quarter of the costs, are from slips, trips and falls. Is that the only reason that’s driving up the restaurant sector?
I’m just wondering. What has happened within that industry sector, within the last year, that it has had that significant amount of increase? Could the minister share: is that from an increase in the number of claims? Or is it an increase in the actual cost of each particular claim?
I’m assuming that’s something that WorkSafeBC would be looking at — and if staff from WorkSafeBC have any concerns that have been highlighted or advanced, maybe, to the different industry sectors or the associations to see what could be undertaken to try and prevent these injuries from occurring in the first place.
Hon. H. Bains: The number of claims is one of the criteria. The cost of claims is another criterion.
I’m advised that during COVID many of the restaurants had to scale down or shut down, and then they were in hiring mode. When they brought employees back, many of them were new employees. That caused a bit of a lack of training — probably, you know, new to the job. Higher claims and claim costs all played a part in raising the cost of claims.
G. Kyllo: Are there any other industry sectors that, maybe, WorkSafeBC has flagged for the minister as areas of concern, which have had significant increases, maybe an increase of over 10 percent? Maybe the minister might be able to share what those industries are.
Then, also, the minister might be able to share what efforts WorkSafeBC may or may not be undertaking to increase educational awareness, or any other measures that might be undertaken in order to help businesses improve those accident occurrences within their workplaces.
Hon. H. Bains: When the board realizes that there are certain areas that are causing higher than normal…. There is nothing normal when it comes to injuries, but when they see a higher number of slips and falls, for example, what we’re talking about here, they go on to do additional campaigns about awareness and how to prevent slips and falls.
Also, over the time, WCB had hired more enforcement officers. Therefore, there are more inspections being conducted. I think those are some of the attempts that the board does, and they continue to do, to make sure that it’s brought to the employers’ attention that it’s their responsibility to make sure that workers’ health and safety is looked after. If there are changes needed to prevent those injuries, then they will be encouraged through education and through support.
What other industries, the member asked, in addition to restaurants, have been flagged? Community health support, pre-hospital emergency health care, retirement homes, long-term care and short-term care, hospitals, counselling or social services, public schools and independent schools, public transit, supermarkets, home improvement centres, law enforcement, local government and casinos. These are some of the other industries that the WCB has flagged.
That’s when they reach out to different industry safety associations, and those are the associations — and the member was president of one of them, the manufacturing safety association, and there are others — that through their work also provide additional training and education so that the injury rate is brought down through prevention and education.
G. Kyllo: I appreciate that.
The minister referenced that these particular industry sectors were flagged. What is the criteria by which a specific industry would be flagged? Is it increases above a certain percentage, or is it the sheer volume of claims that are coming forward? If the minister could just share: what is the criteria by which WorkSafeBC flags specific sectors?
Hon. H. Bains: The increases and decreases in the base premium rate are driven by the injury rates, return-to-work performance and the resulting claims costs. Industries with higher trending claims costs move to higher-risk-rate groups and pay higher rates. Those with lower trending claims costs move to lower-risk-rate groups and pay lower rates.
That’s the certain criteria that the WCB uses when they flag certain industries that claims are coming from that are higher than normal, cost is higher, return-to-work performance is…. All of those are considered. There’s a number of factors that the WCB uses in order to determine the rates. But certainly they are triggered by the claims coming from that particular sector.
G. Kyllo: I appreciate the additional clarity from the minister. But what I’m trying to understand is…. I appreciate that there will be different experiential ratings of different businesses, even within a classification. But is it just the sheer volume? If the base rate or the average rate cost for an industry sector goes up more than 10 percent or 15 percent or 20 percent…? At what level is it flagged? Is it based on dollar value of claims costs? Is it based on the frequency or incidents of actual claim costs?
Again, this just relates back to the information the minister previously provided, which I appreciate. He had indicated that a number of different industry sectors have had been flagged or identified as having, I guess, concern, which was community health, retirement homes, hospitals, and the list went on. So just trying to better understand. Is it a 5 percent or 6 percent increase in claims costs over the preceding years? Is that what flags it, or does it have to be a magnitude much higher? Just to get a bit of a sense….
The restaurant association is an example, as the minister has indicated. Their base rate for that sector is going up by 20 percent. I’m assuming that that would be an increase significant enough to flag it for WorkSafeBC. But again, just looking for a bit more clarity on what level or measurement is actually undertaken to determine when an industry sector is flagged.
Hon. H. Bains: It’s quite complex, I’m told, because it’s a smoothing system that they use over five years. They monitor year by year, based on the previous three to five years, the number of claims coming and claim costs. Then adding those, if it results in a 20 percent rate increase, then they are flagged. So I think there’s a complicated formula, but if that formula generates a 20 percent increase for that particular sector, then they are considered to be on that list.
G. Kyllo: Okay. I appreciate that. So each of the industry classifications the minister referenced earlier as being flagged…. All of those industries will see an increase of 20 percent or higher, likely. Just so I have a better understanding, the minister referenced a five-year kind of rolling average. Even though the increased claims in a particular industry sector last year went up 20 percent because it would be over a five-year period, a 20 percent increase in a given year wouldn’t necessarily flag that sector. It’s only when the cost-averaging over the previous five years is above 20 percent that that would actually flag it.
I’m trying to get a better sense because if indeed it is a 20 percent increase this year but that increase is based on a five-year average, the actual claims costs within an industry sector could be a magnitude of much, much higher than 20 percent. I’m hoping the minister might be able to just provide a little bit more clarity just so I can understand.
A 20 percent increase this year for the rate of restaurants, as an example. What was the actual rate of claims costs last year? It would have been much higher than 20 percent, I can only assume, if it’s based on a five-year average.
Hon. H. Bains: No, it’s quite complicated and complex the way the WCB…. I mean, I have said that before. It’s a very complex system when you talk about WorkSafe and how they arrive at average rates for certain sectors. Every rate for all sectors combined together is a very complicated formula. It’s not that easy to explain here the way the member is asking.
Again, they look at previous years’ experiences using a smoothing formula, and then they come up with the average rate. If the average rate is higher than…. If it comes up to higher than 20 percent, that triggers that this industry needs to be flagged, and we need to do some work — remind them of their responsibilities, brings some awareness, provide education tools. All that happens.
For that particular question the member is asking about restaurants, since averaging time last year, they very well maybe have higher claims and higher costs of claims, but we don’t have that information because they just look at the averaging and that formula they use.
G. Kyllo: Okay, I appreciate the response. I know that businesses appreciate, and probably rely on, that consistency with that five-year smoothing rate plan, which, I think, provides a bit of consistency and takes away any huge spikes for the industry sector.
However, if it is only that five-year average that is flagging different sectors, I’d suggest that it may, in essence, hide or mask some more serious challenges. An industry sector that could have a 70 percent increase in claims costs last year wouldn’t necessarily be subjected to a 20 percent increase if it’s based over a five-year period.
I’m wondering if there’s another mechanism that WorkSafeBC may undertake to evaluate industry sectors when they see huge spikes year to year. We’ve certainly seen a huge increase in mental disorder claims. We see it on all day on the news channels, where you have more and more storefronts having to hire more and more security guards to deal with some of the escalating crime in our communities and all of the mental disorder claims that may be associated with that.
I’m wondering if WorkSafeBC might be able to provide a bit more information, as far as…. If there are significant increases, either within an injury classification or even within an industry sector, from year to year, what efforts were undertaken to flag that within the ministry? And then what works may be undertaken to, I guess, provide some focus on the preventative opportunities that might exist out there throughout British Columbia?
Hon. H. Bains: It was a suggestion by the member, and I think he could leave that suggestion, but it’s up to the WCB to figure out what is best to provide certainty to the businesses.
I was told, many years ago, to always think twice what you wish for, because if you are suggesting that the WCB should raid and evaluate employers year by year, not smoothing out, then it may have dire consequences.
I think the system they have has been working. If it’s a rolling three to five years, I think it’s a smoothing of the system. It’s the way to keep the rates at acceptable and reasonable rates, rather than going up one year and down the next year. That will not provide certainty. I think the system is there, and if the member wants to leave a suggestion, he can leave a suggestion.
G. Kyllo: Certainly that was not my recommendation whatsoever. I set out by stating that the five-year rate-smoothing plan does provide a bit more certainty to employers and not seeing this whipsawing, potentially, of rates up and down. So the way that the rates are managed, I’m happy with.
The question that I raised is that if it is only that five-year average rate that is flagging different industry sectors, we could see an industry sector that has a 60 percent increase in claims in one year and still not be flagged, because that 60 percent increase would be averaged, as an example, over five years, and you wouldn’t see…. It wouldn’t necessarily be flagged for WorkSafeBC.
WorkSafeBC may already be monitoring any particular spikes or increases in claims, so I’m just wondering if the ministry might be able to share…. Are they looking at increases for either industry sectors or for specific injury classifications on an annualized basis, and are those flagged and highlighted?
As an example, you have the restaurant sector. If they had a 40 percent increase in one year that does not necessarily result in a 20 percent increase in rates, would a 40 percent increase in claims costs for an industry sector…. Would that be flagged?
Hon. H. Bains: Yes, Member. When the WCB experiences, in a certain sector, higher than the usual number of claims, they do put the action plan together. They don’t take an average of three to five years for that particular part of their responsibility.
For example, in 2022, prevention officers conducted 7,660 initiating inspections in this sector, resulting in over 9,300 orders, 330 stop-use orders, 327 stop-work orders and 189 penalties. Inspections then focused on…. That’s what they were triggered by. They’re reducing the risk for falls from elevation.
Those were the warning signs coming from that particular area of claims and accidents — reducing the risk of struck-by and related accidents involving mobile equipment, for example. So these are the types of things that will trigger the action plan by the WCB, based on the experience that they have on the comparison with the previous year’s claims and the injury rate.
G. Kyllo: I appreciate the additional information provided by the minister. When the minister indicated and shared with us some of the industry classifications that had been flagged, they were assigned to some common themes: community health; retirement homes; hospitals; counselling services, I believe; law enforcement. A lot of front-facing industry sectors that are dealing directly with the public.
As we see increasing rates of crime across the province and increasing pressure on those different industry sectors…. I know that last year, we canvassed in this House a series of questions around mental disorder claims. I can only anticipate that the reason that these specific industry sectors have been flagged is largely as a result of mental disorder claims.
But through to the minister, I’m just wondering if the WorkSafeBC staff might be able to provide a bit of context on what is driving up the claims cost for those industry sectors that were flagged specifically, and if, indeed, mental disorder claims are a significant portion driving up those claims costs within those specific sectors.
Hon. H. Bains: The list that I gave the member earlier…. It is going to be different in different industries. What are the main causes for higher claims and claim costs? For example, in health care it will be mental health, musculoskeletal injuries, chronic pain and violence in the workplace. Then you go to the other side, which is a supermarket, for example, that’s also part of the list. It is repetitive injuries and trips and falls. That’s the kind of….
The different industries would have different areas of claims coming from them, but at the end of the day, they look at how many of those claims are coming in and what the cost of those claims are. Do they trigger a 20 percent rate increase? Then they get flagged.
But in order to trigger action by the WCB, they look at the previous year’s record compared to this one. If they see higher claim numbers and higher claim costs, then they put the action plan together, go back to the industry, to the employer, the workers and put some educational and awareness plans together to make sure that we can reduce those injuries at workplaces.
G. Kyllo: I appreciate the response from the minister. With respect to health care, as an example, with chronic pain, some of the other challenges around mental health disorders and PTSD, has any work been undertaken by WorkSafeBC to highlight or to identify some of the increasing challenges within the health care sector?
If so, has any work been undertaken to help provide, I guess, some relief or some preventative measures within that sector?
Hon. H. Bains: The WCB has a number of initiatives to help prevent injuries, violence at workplaces. For example, in health care, WorkSafeBC has a team of 35 prevention officers who are trained and assigned to inspect health care facilities in B.C. as part of its provincial inspectional initiatives. During 2022, the health care and social services WorkSafeBC offices conducted 1,719 inspections and issued 186 violence-related orders, four warning letters and one citation.
WorkSafeBC also works closely with the health and safety associations in this subsector, SafeCare B.C. and SWITCH B.C., on their violence prevention initiative and priorities.
The government, as the member probably will remember, provided funding to have about 334 in-house prevention officers to prevent violence and support the staff and the health care nurses, care aides and others, because it was triggered by 4,438 incidents of violence.
I think every time issues of workplace safety and/or violence are brought to the government’s or the WCB’s attention, appropriate entities, in this case, the Health Ministry…. The WCB will continue with those programs I just mentioned on their own, having those inspection officers specifically assigned to deal with health care, violence at workplaces and other support they could provide.
G. Kyllo: Can the minister just clarify…? For those 300-plus employees that were hired, were those hired by government, or were those hired by WorkSafeBC?
Hon. H. Bains: My understanding is that they were hired by the health authorities.
G. Kyllo: I certainly appreciate that. Does WorkSafeBC have a bit of a sense…? Have we seen a decrease in the number and severity of mental health disorder claims and claims of PTSD? Have we curbed that challenge, or are we seeing a continued either flattening or escalation in the number of claims in our health care system?
Hon. H. Bains: Psychological injuries continue to be a concern. They went up, year by year, if you go back to 2017 and prior. The work is continuous. We would see if those initiatives, both by the WCB and by the health authorities, are helping to see if we could turn that trend around. It continues to be a concern. COVID didn’t help.
I think the WCB, through the initiatives I mentioned, through the results of the Ministry of Health, through the health authorities hiring those in-house prevention officers…. We’ll see the results. We haven’t seen the results because they haven’t been there that long yet. So we’ll see over time.
G. Kyllo: The minister referenced psychological claims. Is the minister able to provide some clarity? Are PTSD-related claims monitored separately from mental disorders? The minister’s reference to psychological — is that, yet again, a different classification? Or are those all one and the same? I just wonder if the minister could provide a bit of clarity.
Then, with respect to that, what has the actual increase been over the last two or three years for those specific types of claims? Again, as the minister has indicated, it’s…. Government, through the health authorities, has made significant efforts to try and curb it. But I’m just finding out if we’ve actually seen a reduction or if the claims are continuing to escalate.
Hon. H. Bains: PTSD is included in psychological injury. Going back to 2020, the psychological injury claims reported in 2020 were 4,444; in 2021, it was 5,458; in 2022, they went up to 5,914.
G. Kyllo: Can the minister share what the costs associated with those claims are? I appreciate those claims may not be fully settled yet. Some may be still ongoing. But is there a budget or an estimated amount of the cost in each of those three fiscals that the minister referenced?
Hon. H. Bains: The psychological injury claim cost for the year, as the member has asked, was $198 million in 2022, compared to approximately $136 million in 2021 and approximately $38 million in 2017.
To put that in context, what these costs are…. The payments, in the year, for short-term disability include health care, vocational rehabilitation and a reserve approved in the year for the permanent disability and survivor benefit. These are the costs incurred in the year regardless of the year the psychological injury was first accepted.
It’s a bit tricky. My understanding is the year the cost is incurred is the year it’s assigned to, regardless of the year the injury was first accepted.
G. Kyllo: The minister referenced, I believe, 2017, 2018 and 2019, but the frequency of claims that the minister initially presented was for 2020, 2021 and 2022. I’m wondering if the minister has the actual claims dollar cost for those three years.
Hon. H. Bains: I’ve got the right page. I gave the 2017 number, and that was $38 million; in 2018, it was $47 million; in 2019, it was $82 million; in 2020, it was $118 million. I provided the other two. In 2021, it was $136 million; and in 2022, it was $198 million.
G. Kyllo: Thank you very much. I appreciate the additional clarity.
From 2017, gross aggregate cost, $38 million, to fiscal 2022, $198 million. That’s a significant increase, which must cause great concern both for the minister and, I’m sure, for WorkSafeBC.
Has WorkSafeBC undertaken…? I’m assuming they must undertake investigations on every file. Have they come to any conclusions or any learnings with respect to why there has been such a drastic increase, an increase of probably over 500 percent, just in five short years? It must be incredibly concerning both for WorkSafeBC staff and for those that are working in the health services sector.
Can the minister maybe provide a bit more insight into why there has been this significant escalation in claims, specifically over the last three years? Further to that, have there been any changes with respect to presumption clauses, which also may have contributed to the cost of claims?
Maybe the minister can provide some clarity. It may not be that there’s an increased frequency. It’s just that there has been increased access to claims. If the minister is able to provide a bit more clarity for us, I’d appreciate it.
[R. Leonard in the chair.]
Hon. H. Bains: I think it’s a good question — why psychological claims are higher and higher, year by year, going back a number of years now, and whether the presumption clause that we brought in, whether that triggers higher claims coming to the WCB. I think the answer to that is a number of folds.
One is more and more awareness now in this society about mental health. More and more people are talking about mental health. More people are accepting that this is illness — and the need to reach out for help. Also, awareness about what’s available for help for workers. WCB is available to them, presumption or not.
Workers were covered from psychological injuries previously as well. What the presumption did was that they didn’t have to live through the same trauma, if trauma was the cause behind psychological injury, to try to prove that it is work-related.
I think I’m looking at the year that presumption was brought in. That was 2018. You look at the number of claims going up. In 2018, about 3,644. But even the last two years…. In 2021, it was 5,458, and in 2022, it was 5,914.
Although the presumption was there in the last two years, it continued to grow, the number of claims. In 2018, when we brought it in…. In 2019, if you look at the following year, it was 4,510.
I think the issue is more awareness. The issue is that more people are talking about it. There are a number of initiatives by different industries and community groups that are reaching out to bring awareness and help out those who are suffering from psychological injuries. In workplaces, there is that kind of awareness as well. WCB also reaches out and brings awareness when it comes to prevention.
Workplace violence also has escalated and, as we said, caused psychological injuries as well. So a combination of a number of those things, I think, probably is the cause. I’m not a psychologist. I don’t know exactly what the real cause for claims is and what is triggering more and more psychological injuries at workplaces. Those are some of the assumptions that are taken by the people who are in the know.
G. Kyllo: I appreciate the response. I’ve got two questions.
The minister referenced that the claims costs that are actually incurred in a given year are reported in that year, even though the injury may have happened years prior. My first question would be: if a worker experiences post-traumatic stress disorder and initiates a claim, and they’re unable to go back to work for two or three years…. Let’s just hypothetically say for three years.
Even though the injury occurred in this year, I just want to have clarity that the cost associated with that claim this year will not just be borne this year. It will be borne over the next number of years, as long as those payments continue to go out. I just want to provide clarity on that.
Then the other question I had has to do with the actual industry classifications. In a hospital, there is a whole multitude of different jobs, from security to nursing, to medical staff and the entire gamut. Is there an industry classification code for hospitals, or are nurses under a separate category? I’m just trying to get a better understanding.
I know that with manufacturing facilities, the type of manufacturing kind of sets the class code. It includes janitorial and forklift drivers and all of those other sorts of things. I’m just looking for some clarity.
Are hospitals a sector unto themselves? If, indeed, they are unto themselves, what is the base rate for hospital staff? We know that the base rate across the province for the average is $1.55. What is the actual rate for hospital staff? Then, further to that, what increases have we seen specifically over the last three years with that particular sector?
Hon. H. Bains: The rate for the acute care for 2023 is $2.75; 2022, $2.36; and 2021, $1.97.
G. Kyllo: The minister referenced acute care. I just wonder if the minister can clarify acute care. Does that include all workers that are working in a hospital, or is acute care just a separate sector unto itself, and would nurses be separate from acute care? Just if the minister can provide a bit more clarity.
Hon. H. Bains: This is for hospitals, and those workers who work in the hospital are reflected in that. Who works in the hospital — it’s the rate for the hospital acute care sector.
G. Kyllo: Fantastic.
Just to be clear, if you’re a security guard working in a hospital, you’d be under this acute care classification. If you’re a janitor…. Okay, appreciate that.
With respect to nursing staff that might work in the seniors sector, is that a separate classification? If the minister could just provide what the rate for that particular rate classification or sector would be.
Hon. H. Bains: They’re looking for the answer for…. I think that the member probably should give me a list of those that he would like to have a rate for, different sectors, so that when they’re reaching out, we could find out the rate in advance.
I would like to call for a ten-minute health break.
The Chair: We’ll stand in recess for ten minutes.
The committee recessed from 5:15 p.m. to 5:27 p.m.
[R. Leonard in the chair.]
The Chair: I call the committee back to order on the estimates of the Ministry of Labour.
Hon. H. Bains: The question was asked about different rates in health care, in different sectors of health care. In long-term care, the cost rate is 4.06, 2023; 3.68, 2022; 3.68, 2023. For community health — I think the member talked about home care; they’re covered in that — in 2023, the cost was 2.82; in 2022, 2.49; in 2021, 2.13.
G. Kyllo: I appreciate that information.
A significant increase in mental disorder claims — approximately 500 percent increase over just five short years. It does not appear that the trend is flattening. If anything, it appears that it has continued to increase, so definitely a concern.
I know there have been lots of conversations through nurses and otherwise, especially in the media, about a toxic work environment, understaffing levels. I do recall last year during the estimates process asking specifically if WorkSafeBC, when they were looking at claims, were tracking — or if in any way, shape or form they were reporting — whether those injuries occurred during regular-time shifts or on overtime shifts.
I can only imagine…. I’ve talked to a couple of nurses myself that have been working double shifts back to back, and after 12 hours of work, as you go on, that fatigue, I can only imagine, would increase the incidence of claims. So I’m just wondering if, over the last year, the ministry has given consideration to tracking those injuries that are incurred by workers on overtime shifts.
Especially with the shortage of staff we see in the health care services sector, with nurses, specifically, working multiple shifts, working extended hours, I can only imagine that as they get more fatigued, that’s going to result in an increased number of either workplace accidents or mental disorder claims. I’m just wondering if the minister could provide any clarity.
Hon. H. Bains: WCB doesn’t track whether it was an overtime shift or the person coming on their day off to work. To them, it’s an injury, and they will know what time it happened. That question is probably more appropriate to the Ministry of Health. They may have that kind of data.
G. Kyllo: I appreciate that. I do believe the workplace environment does have a contributing factor to the frequency and the severity, likely, of claims, especially around mental disorder claims and PTSD.
Where we see a significant shortage of workers in a particular sector, with a lot of additional pressure put on those employees, I can only surmise that it must be putting additional pressure not just on the nursing staff but then also largely attributing…. Maybe it’s one of the reasons why we’ve seen such a significant increase in mental disorder claims, like 500 percent over the last five years.
I hope that the ministry, through WorkSafeBC, are turning their minds to try and better understand what all the contributing factors to it are, not unlike how you may have additional slips and falls or maybe falling from height injuries within different industries. I certainly believe, as do many nurses, that the amount of pressure that’s put on the nursing staff and the shortage of replacement workers is largely contributing to the significant increase in WorkSafeBC claims around mental disorders.
I’m going to turn my attention now. With respect to the worker accident fund, the minister might be able to share with us how successful the returns were on the significant investments of the accident fund last year.
Hon. H. Bains: As of December 31, 2022, the funding level was at 146 percent.
G. Kyllo: I appreciate that. That was going to be my second question. But my first question was: what was the actual rate of return? I believe that last year, during estimates, the income to the year ending 2021 was around $2.4 billion. I think that represented about an 11.1 percent return. I’m just wondering what the returns were for this last fiscal.
Hon. H. Bains: I’m advised that for 2022, the preliminary fair value return on the investment portfolio was minus 3 percent.
G. Kyllo: I’m just wondering what that might reflect in real dollars.
Hon. H. Bains: It’s $605 million.
G. Kyllo: I believe last year the accident fund was at about 150 percent. The minister has referenced that it’s now down to 146 percent, about a 4 percent decline. Would the 3 percent loss of return be attributable for the largest portion of that reduction?
Last year it was at 150 percent. This year it’s 146. There’s been a 4 percent reduction, I guess, in that surplus. I’m wondering what portion of that 4 percent reduction is attributable to the reduced return.
Hon. H. Bains: I think it cannot be characterized as what our smoothing funding level of 146 percent compared to the previous year is. As I think the member puts it, the bulk of that reason could be a minus 3 percent return. I’m advised it’s not the bulk of the reason. It has a small factor because they also use a smoothing factor when they talk about the funding level and the rate of return.
The big reason for the reduction from the previous funding level to 146 — I think I mentioned it to the member in the letter that I sent — is WorkSafeBC estimated that Bill 41 changes will result in a one-time increase of approximately $1.27 billion to year-end liabilities to the accident fund for claims already in the system.
The one-time change in total liability represents the increased lifetime value of all the existing claims in the system. Then they went on to say that there are roughly 50,000 to 60,000 of them as a result of Bill 41 changes.
Minus 3 percent had a small factor, but Bill 41 had a bigger impact on the reason why we’re at 146 percent.
G. Kyllo: Can the minister provide some clarity with respect to what the dollar value impact has been, then? The previous funding level was 150 percent. It’s now at 146 percent. What is that in gross aggregate dollars?
Further to that, is the minister or WorkSafeBC anticipating further erosion of the worker accident fund, or is it just a one-time hit? In that case, we would assume, all things being equal, that the accident fund will remain at the 146 percent for next year.
Hon. H. Bains: The dollar value that the member asked….
Let me give you the numbers. The total value would be $7.6 billion, which consists of $5 billion if you were at 130 percent. When you go to $7.6 billion, that is 146 percent. So that reflects $2.6 billion in addition to 130 percent.
G. Kyllo: Okay. Thank you for that.
The numbers I recorded last year indicated…. Last year the required funds were…. The surplus would have been $19 billion, with a surplus of an extra $3.5 billion. So what I had recorded from last year’s estimates was that the total value of the worker accident fund was $22.5 billion.
I’m just trying to understand why there is such a significant reduction. I’m pretty certain that my notes are accurate from last year. In any event, if the minister might just confirm those numbers for me.
Hon. H. Bains: I apologize. I may have confused the member. I think we were talking about two different things. The number that I was using was over 100 percent.
Interjection.
Hon. H. Bains: Right. Let’s go back so that we can clarify.
In 2021, the number, if it was at 100 percent, was $14.4 billion. To take it to 130 percent funding, it would need another $4.3 billion. Then, in addition to that, we had $3.5 billion to make it the total accident fund. In 2022, 100 percent funding would be $16.7 billion, and 30 percent, you add another $5 billion. Then, in addition to that, $2.6 billion is over and above 130 percent. I hope that is a bit more clarity.
G. Kyllo: Great. Thank you very much. I appreciate that.
The cost of managing all WorkSafeBC claims has risen from $14.4 billion to $16.7 billion in one year. That’s $2.3 billion, representing…. That would be about an 18 percent increase, so a significant impact. As the minister indicated, that is largely attributable to Bill 41.
To the minister: if the minister can just confirm, and it certainly was my understanding, that that one-time hit associated with Bill 41 is something that we wouldn’t necessarily see replicated and have further impact on the worker accident fund in future years, that that was kind of a one-time allocation cost and that we would not see any further cost escalation in future years associated with Bill 41.
Hon. H. Bains: I think the member is confused. It’s not his fault, I think, because there are so many different variables here.
Cost of claims is not what the member described as the accident fund. Cost of claims last year was $4.2 billion, which includes, I’m advised, a one-time liability of Bill 41. So we need to differentiate that. But in order to fund the accident fund 100 percent, I gave you the numbers, this year $16.7 billion, but if you want…. The board policy is to fund it 130 percent, which will take you to $21.7 billion, if it was funded at 130 percent.
So that is the total liability claims — today, past and the future — for the lifetime of those claims. And you need to be in that position to ensure that enough money is there to deal with all the claims. But the cost of claims each year is different.
G. Kyllo: I don’t know that I was confused, but maybe the way I prefaced my question might have caused some confusion. The point that I was trying to draw is that last year, ending 2021, the requirement to meet 100 percent cost of managing current and future claims was at $14.4 billion, and that number this year is $16.7 billion. So the cost of managing claims has gone up significantly.
What my question, and I’ll ask another time…. Bill 41 had an impact on the worker accident fund, largely attributing to the reason why it went from 150 percent to 146 percent.
My question is that my understanding is that that was kind of a one-time hit and that we would not see a further impact on the worker accident fund associated with Bill 41 next year, that those costs have largely been attributed at the end of the year and were captured in this last current fiscal.
Hon. H. Bains: Last year we canvassed this extensively, and the member asked for further clarification of the total cost and ongoing costs. It was clearly explained to the member in the letter that we wrote to him.
He is asking the same question, and my suggestion is that he should just revisit his letter. All that is explained in there: what the one-time liability of the claims, past and current, over their lifetime is and also what the ongoing cost is every year, going forward.
G. Kyllo: Look. There’s no surprise with respect to the question. I certainly appreciated the letter the minister provided last year. But part of this process is also to ensure and confirm…. We’re a number of months past the date of that letter, and I just wanted to clarify and confirm that my understanding is correct and that the minister continues to have that same position.
I believe I overheard during the exchange that the largest portion of the costs attributable to Bill 41 has been all captured in this last fiscal, which is what I was just looking for clarity on, and there will be minimal impact in future years associated with Bill 41.
Having said that, and just looking at the time, I’m going to move on. With respect to the health services sector, and with WorkSafeBC, my understanding is…. I saw this, actually. It was in a CTV article from back in January that indicated that nurses are oftentimes waiting months for one-on-one psychological support.
From WorkSafeBC’s perspective, I’m just wondering. Is the shortage or their lack of psychological supports in any way delaying the treatment of workers that might have mental disorder claims? Is that attributing to lost time and driving up, potentially, the costs associated with those types of illnesses?
I do know, with WorkSafeBC, that they do have the opportunity of paying directly for care. They’re not required, necessarily, to have individuals just go to their doctor and wait on a list. There are opportunities, then, through WorkSafeBC to advance some of the access for psychological treatment.
I’m just wondering if there’s any work that’s been undertaken by WorkSafeBC to try and expedite access to psychological services for those that might be filing mental disorder claims.
Hon. H. Bains: I think the member is correct. It’s general knowledge that there is a shortage of psychologists in British Columbia. What WorkSafeBC does is they have two specialized mental health units that assist injured workers. There’s a team of adjudication staff in the mental health adjudication unit that makes the initial decision to allow or deny the claim. Then the mental health claims unit supports workers with their recovery and return to work.
They’re doing what they can do, but then they are also constrained by the College of Psychologists. What are their requirements? Who can they use? Who can actually assess the patient in British Columbia? WorkSafeBC is doing whatever they can within what’s available to them. The idea here is to provide support as early as possible. But again, the shortage is the shortage. Hopefully that issue, somehow, can be resolved, as well, going forward.
G. Kyllo: Is WorkSafeBC…? My understanding would be that they would have latitude to acquire the services of psychologists out of province, or maybe even out of country, whether it be by Zoom or telehealth. Is that something that’s available, or are we just relying, specifically, only on care providers that are operating here in B.C.? Or is the opportunity, if WorkSafeBC…? These funds are largely paid through employer premiums.
I can imagine a worker that may be off for a month. There’s a considerable cost associated with that. I think everybody would want to see workers get on a path to recovery as quickly as possible. I’m just wondering, in today’s day and age, where we see telehealth and we see lots of online opportunities for having psychological services, if that’s something that is available to WorkSafeBC. Have they given consideration to utilizing sources outside of the province to provide that care that injured workers may need?
Hon. H. Bains: I am advised that the College of Psychologists.… I don’t know what the official name is. Their requirement is that for a psychologist to assess a worker in B.C., they must be registered in B.C. So the answer is that they cannot engage with a professional from outside of the province or outside of the country.
G. Kyllo: I appreciate that maybe that initial assessment may need to be undertaken by a psychologist registered in B.C., but once there’s a work plan or a care plan that’s provided, I certainly can’t understand why psychologists operating outside of province wouldn’t necessarily be able to provide a similar level of service. But I’ll leave that as it may.
I also just wanted to raise…. I was at a chiropractic office recently, and they had a big sign indicating that they’re no longer accepting WorkSafeBC claims. I had a conversation with the chiropractor, just asking: what was the reason for that? He shared with me that existing clients — not a problem. But he said they’ve had challenges, not just this office but numerous chiropractic offices is my understanding, indicating that WorkSafeBC takes an average of four weeks to accept or deny an injured worker’s claim. That was one.
Then he also indicated that WorkSafeBC, unlike ICBC — I’m not sure why that reference was made — also will not pay for more than one kind of treatment at a time. He indicated that quite often chiropractic care also works extremely well if it’s undertaken concurrent with massage or physiotherapy.
In any event, I was kind of surprised. I would have thought that WorkSafeBC would be paying fair and equitable rates, that the process would be quite seamless. Any opportunity for an injured worker to get chiropractic treatment and, hopefully, get on the path to recovery and back to work as quickly as possible is something that I think that WorkSafeBC and all employers in the province would support.
So I was kind of surprised to hear that there are a number of chiropractic clinics that appear to have the position, at least, that WorkSafeBC is maybe not the friendliest client to deal with, due to longer than maybe otherwise acceptable periods of time to actually accept a claim.
In any event, I am looking at the clock, and I was hoping to wrap up today. Take that as it is. Actually, I will undertake to send a separate letter to the minister, and then maybe we can follow up on these WorkSafeBC issues. I’m sure there’s another side to it, but certainly happy to hear.
I just want to thank the minister and his staff for their time and providing responses to the inquiries. With that, I’ll take my seat.
The Chair: Seeing no further questions, I ask the minister if they would like to make some closing remarks.
Hon. H. Bains: I want to thank the member and also the member from the Green Party who came and asked some good questions. I thought it was a good discussion. I think it was quite informative, as far as I’m concerned. This file, especially when it comes to WorkSafeBC, is quite complex, and we had a good discussion there.
I just want to say thank you. I want to thank the Chair — from time to time, other Chairs who came through — and the Clerks. I appreciate that.
Vote 38: ministry operations, $21,489,000 — approved.
Hon. H. Bains: I neglected to thank the staff, especially from WorkSafeBC. These guys from my ministry put up with me all the time, but I want to thank them as well. They were quite a help.
Since WorkSafeBC travelled across the river, I want to say: “Thank you very much. It was a good help. I think it helped us move the discussion along, so thank you very much.”
Madam Chair, I move that the committee rise and report resolution and completion and ask leave to sit again.
Motion approved.
The committee rose at 6:15 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of Supply
ESTIMATES: MINISTRY OF ENERGY,
MINES
AND LOW CARBON INNOVATION
(continued)
The House in Committee of Supply (Section C); S. Chant in the chair.
The committee met at 1:35 p.m.
The Chair: Good afternoon, everybody. I call Committee of Supply, Section C, to order.
We are meeting today to continue consideration of the estimates of the Ministry of Energy, Mines and Low Carbon Innovation.
I now recognize the minister to move the vote.
On Vote 23: ministry operations, $118,408,000 (continued).
T. Shypitka: We left, before lunch, on a question on hydrogen. I asked the minister: of the 50 hydrogen projects that have been…. I don’t know if they’re applications for permits to get started or if there are 50 in the queue or 50 that have been identified. I asked if those projects included fossil fuels or if they’re green projects.
The minister said both. She was careful not to say fossil fuels. We don’t want to say that word here. But quite honestly, there’s nothing wrong with that word. When we’re talking about hydrogen projects and things like that, we’re talking about carbon intensities. Maybe, perhaps, in the past, we had developing energy projects, such as grey hydrogen, which is not a capture of any of the methanes, very carbon-intensive. But since then, we’ve innovated. We’ve come up with different carbon capture technologies. We’ve now got blue hydrogen.
The minister probably knows, and I’m sure she does, that there was a government incentive to bring turquoise hydrogen to the Burrard terminal, which is kind of a cool process. It extracts the methanes from the hydrogen and takes those offsets and puts them into graphite, into a reusable solid matter that can be used in construction and things like that. It’s actually pretty cool stuff.
There are also other types of hydrogen — nuclear, so red hydrogen, pink hydrogen. There’s also yellow hydrogen which is used, from solar, to generate. As the minister noted, I think, before the break…. She mentioned electrolysis, which is green hydrogen from water. I think we need all these to incorporate.
The minister talked about B.C.’s advantage, before the break, as well. I’m curious about what she interprets the B.C. advantage to be. We’re very flush in this province. We’re very lucky to have the natural gas reserves that we have. With the innovative technologies we have right now in place, we can reduce that carbon-intensity greatly and bring really bold energy solutions not only here in the province but across the world.
We talk about liquefied natural gas and things that the member for Skeena was talking about. In my opinion, it’s okay to say fossil fuels. It’s a depleting resource. We know it’s not here forever. We know we want to have less impact on the environment in the long run. I think this is a great way to showcase our bounty here in B.C. and to bring those innovative technologies to reduce GHGs globally, worldwide.
When we talk about natural gas, we talk about China and India and other countries that right now are very carbon-intensive. China has — I don’t know how many — 800 thermal coal plants, I believe, in the country right now. I think they’re increasing by eight or ten a year. If we can transition those into liquefied natural gas or a natural gas solution, we can reduce those GHGs, those emissions, by 50 percent. That’s huge. B.C. makes up maybe 0.1 percent of the global GHGs. But we’re makers; we’re not takers. We are resource rich.
I guess what I’m getting at is the hydrogen projects — can the minister tell me…? Does she have a breakdown? Is it mostly green? I’d like to see what the industry is focused on and see if, in any way, we can help, as an opposition, to hopefully bend the ear of government to point us in a collective, good way. So a breakdown on those 50.
Hon. J. Osborne: The member asked about a breakdown of hydrogen projects. There are about 50 that are at some stage of development. Now, some are just initial inquiries with the province, to ones that are actively seeking permits for operation as early as late 2024 or 2025. The majority of these projects are green hydrogen, using electrolysis as their technology.
I think it’s important to note that the goal here is reducing carbon intensity of fossil fuels — I just want the member to know that I’m not avoiding those words — and that it’s about reducing the carbon intensity. It’s not necessarily what technology or what colour the hydrogen is. Reducing carbon intensity is the key goal of the hydrogen strategy.
I also want to note that a change that has been made, of course, is that the B.C. Energy Regulator is now the sole regulator not just for the oil and gas sector but including also the hydrogen sector. Again, that’s regardless of colour, if you will.
The member also asked around advantages that we have here in British Columbia. Noting that the majority of the projects that have had some level of inquiry to some stage of development are green hydrogen, I would presume that that might be because of the major advantage we have here in British Columbia, which is our clean electricity, knowing that 98 percent of our electricity is clean, that it’s an abundant resource and that we have abundant resources — period.
We also have existing energy infrastructure, strong climate policies, innovative companies. We have a highly skilled workforce, and we have proximity to export markets. These are all things that make B.C. an excellent jurisdiction for people to seek developing hydrogen projects.
The member also talked about help as an opposition, and I would say I welcome any inquiry. I think that regardless of which party we represent here in the Legislature, we’re all focused on creating good jobs for people in communities. Clean energy is clearly a direction that we’re headed as a society. Members from any party are going to know and hear about opportunities, and we are all here, I hope, to make the most use of those opportunities and help people succeed so that we can all meet the goals that we share as British Columbians.
T. Shypitka: Well, this is a great conversation. I’m happy to lend a hand in any way I can. I’ll take the deputy minister’s recommendation for briefings. I’d like to get a couple of those, for sure. I know I missed a lot there, on the natural gas and oil side yesterday, and I’m going to have to turn it over the Green Party here in a bit.
I think what I’m getting at is that we do have advantages. The minister highlighted some excellent ones. Nobody is going to argue them. The projects that she said are in the queue are in different stages of development, whether it’s permitting or in production. I guess there are none in production yet, but they’re all in the stages of getting started. The majority are green, which is fine.
Has the minister or the ministry done any analysis of those projects that are on the permitting side, on what kind of power that would demand? As the minister knows, green hydrogen projects are super energy-intensive. It takes a lot of energy to run electrolysis, and it’s not very sustainable at the moment. The costs are high — probably three times that of blue hydrogen, made from fossil fuels, natural gas.
Where do we balance this? We want to get to a greener, cleaner economy. Nobody is going to argue that, but it needs to be real. It needs to be realistic. It needs to be achievable. It needs to be sustainable. I know that’s what we’re struggling with. We’re in this transition. We’re trying to find all these things right now, but sometimes I think we get ahead of ourselves too much. I think that sometimes we tend to jump to the new and improved.
We all want to get there, but it’s how fast we get there, and it’s a balancing act between sustainability, ideology and reality. Those are the three things that make good decision-making. We’ve got to find that balance.
I guess the question for the minister is: has she identified those green power projects or any of them, any of those hydrogen projects, and what their energy usage would be?
Hon. J. Osborne: As proponents come and speak with the ministry or with B.C. Hydro, of course we work with them and seek to understand their requirements for power, for water or for other services. B.C. Hydro certainly works directly with them, and their power needs will depend on the size of the operation and the location. A number of the electrolysis projects that are being discussed are quite small, and they would provide very local services and meet local demand, but some projects are quite a bit larger.
I think what the member is implying, quite correctly, is that there are complexities and trade-offs that need to be made with respect to how B.C.’s clean electricity is used and how we make those decisions. That is one of the reasons why we’re standing up the B.C. Hydro task force. In fact, I’m quite sure we’re going to get into conversations about that as we go on through the afternoon. I’ll leave the details for the questions to come.
T. Shypitka: I didn’t hear any actual numbers. There are complexities of course, but as a proponent goes through permitting, they discuss items of the project, obviously power demand. There are a lot of small ones, as the minister said. I’m imagining a lot of these are going to be pilot projects because they are green. You can’t put them to scale right now because of the costs and the uncertainty that’s around that.
I’ll ask one question, then another one, and then I’ll get the Greens up, because the minister tweaked me on something. Of those green projects, how many are proposed to be funded by government, and how much would that be?
Hon. J. Osborne: The short answer is that we haven’t put any capital directly into any of the proposed hydrogen projects in B.C. But we do know that a number of the projects have applied federally to the clean fuels fund through NRCan and to the strategic innovation fund through Innovation, Science and Economic Development Canada.
Further, a hydrogen project that did launch here in British Columbia would be eligible for our CleanBC electrification rate, which is a short-term discount, essentially, on electricity for five years. A second of note is that the production of hydrogen would make a proponent…. If it was used in transportation, that hydrogen would make the proponent eligible for low-carbon fuel credits, which could be sold to help offset some of the investment costs that the company makes.
T. Shypitka: I think I heard a piece there that they’ll get a discounted rate on electricity for some of these projects. Is it $5?
Hon. J. Osborne: For five years.
T. Shypitka: For five years. So there is a discounted rate for five years on these hydrogen projects — electrical rates. Fair enough. I’ll get a breakdown on that later because I’ve got to get to the other party here.
Last question before we go over there. It was discussion we had yesterday on gas production. I asked the minister…. On gas production in the province for the last three years — 2020, fiscal 2021 and 2022 — I suggested it was 5.7 billion cubic feet per day in 2020, 5.9 billion cubic feet per day in 2021 and 5.7 in 2022. On the other side of the coin, on Alberta’s side, they were 9.6, 11.5 and 11.9, respectively.
I went onto the website. I couldn’t find a breakdown on the actual gas production side. There’s some pretty good stuff on that website, and some of it, I think, needs a little bit of work. But what I did find was wells drilled, and maybe the minister can verify what I extrapolated.
Wells drilled in 2017 were 621. I believe these are gas wells. They could be a combination of oil and gas. Sorry. But 621 in 2017, 446 in 2018, 365 in 2019, 372 in 2020, 469 in 2021 and 376 in 2022. So that is a 40 percent decrease from 2017 to 2022.
I know the minister is going to come back and say that wells get drilled, that it’s really cyclical and that it depends on the commodity at the time. There was a spike in 2016, which probably was one of the reasons why we saw 621 wells drilled in 2017. That was a 62 percent increase, annual change, in 2017. There’s almost an identical annual change in 2021, when we saw a bit of a spike to 469.
The minister was kind of painting the picture the other day that we’re just amping up here. Production may be up because commodity prices were high there for a while in 2021, 2022. They’ve since come down a bit.
On the other side, we saw well authorizations approved for oil and gas…. In 2017, we were at 870 wells authorized approved, 897 in 2018, 672 in 2019, 519 in 2020, zero in 2021 and zero in 2022. These are wells authorized approved, which paints not quite the picture that the minister spoke about the other day. Can the minister just verify those numbers from their own website?
Hon. J. Osborne: Perhaps the easiest way to discuss this further would be for me to offer a briefing to the member with the B.C. Energy Regulator, to dive into the data and compare what the member has read on the website and the statistics that the B.C. Energy Regulator has.
I will note, though, as we discussed yesterday, that British Columbia is at record production on natural gas. There is not a direct correlation — I know the member understands this — between the number of wells and production. Industry is constantly innovating and looking for ways to drill more efficiently, which lowers their costs and also can help lower their emissions. And fewer wells is good. In fact, that is part of what meets the intent of the Blueberry River First Nations implementation agreement, with less surface disturbance.
T. Shypitka: Just a little bit of disappointment there. This is the ministry’s own website. The minister invited me to go to the website yesterday. I did. I would assume she would have the same access to the website herself, and her staff. It’s not a deep dive into metrics or anything like that. It’s a pretty standard part of the website where it says: “Wells drilled.” You click on it. You can go online, or you can go to the PDF version. I went onto the online version — right there. It’s pretty easy to see. It’s not a deep dive. It’s not a technical briefing. It’s a pretty simple question, and a non-answer, which means: “Yeah, it’s not as rosy as we thought it was.”
Gas production is up. Record highs, as the minister said. But it doesn’t take a lot to get to that record high. We’re sitting at 5.7 billion cubic feet per day, to 5.9, and back down to 5.7, where we’ve been teetering, even though we just saw some really high natural gas commodity prices in the last couple of years. Coupled with the issue we have right now in Ukraine, gas is at a premium down in the U.S. right now. So yeah, of course I would expect us to see a bit of an uptick in production.
The fact of the matter is that those are sites that are in operation right now. We’re seeing a decrease in wells drilled. This is a lag. There’s a huge lag to this. Investment leaves. We can’t get those people back. We’re setting ourselves up for failure here.
With that, I’ll turn it over to the member from the Greens, from Saanich North and the Islands.
A. Olsen: What is the province of B.C.’s relationship with Teck Resources?
Hon. J. Osborne: Welcome to the member for Saanich North and the Islands.
Before I address this question, I just want to go back to the last statement made by the member for Kootenay East. Clearly, we don’t necessarily see the same way, the picture, of the natural gas industry and what’s taking place in the northeast.
I do, again, want to just repeat one of the things I spoke about yesterday around the certainty and predictability that is being provided to the gas industry and how companies are now sitting down with Treaty 8 nations and the B.C. Energy Regulator, looking at five-to ten-year plans, looking at how to minimize their footprints and create less disturbance, that these are not signs of exiting. These are signs of confidence, and certainly, that matches what I hear when I speak to gas companies. But again, as I said, I can see the member and I may not see eye to eye on that.
With respect to the question on Teck from the member for Saanich North and the Islands, as he knows, Teck is a major mining company here in British Columbia.
It’s a significant employer as well. The Ministry of Energy, Mines and Low Carbon Innovation is a regulator of Teck’s activities of their five operating mines and their numerous closed mines and exploration projects.
A. Olsen: It turns out that Teck has other significance, in that it’s also a significant polluter. Over the last decades, the Ktunaxa Nation here in British Columbia, as well as Indigenous nations in the Pacific Northwest of the United States, have been complaining about the selenium pollution that has been caused by Teck and the fact that our regulatory process has actually failed to address the contamination that exists in the Elk Valley.
It has been spreading south and polluting in the United States as well. The Ktunaxa and other nations have been asking, and calling on, the Canadian and U.S. governments to refer this persistent problem of the mines operated by Teck to the International Joint Commission. What’s the minister’s position on whether or not this issue should be referred to that commission?
Hon. J. Osborne: First of all, I want to acknowledge right away that the selenium contamination issues that exist are serious, and none more so than to the Ktunaxa people. Their relationship to the land and the water is of utmost significance to them and, I would venture, to all British Columbians.
I want to assure the member, as well, that British Columbia, myself and my ministry are committed to ensuring that we are a world-leading jurisdiction in mining regulation and oversight, health and safety, and that we work and collaborate with our colleagues at the Ministry of Environment and Climate Change Strategy who, of course, have the responsibilities and authorities in many of these types of issues.
I also want to explain that B.C. is continuing to make progress in responding to the concerns that have been raised, that we have developed new tools with respect to increasing accessibility and the transparency of information and the data that’s related to water quality and regulatory activities in the Elk Valley, including the Elk Valley Water Quality Hub and, online, a portal for people to watch and see the results of the investments that Teck has made.
I think the member probably heard from the Minister of Environment and Climate Change Strategy about the efforts that Teck has made — the $1.2 billion they’ve invested so far and the $700 million, give or take, that they plan to continue investing in addressing this very serious issue.
We know that after President Biden met with Prime Minister Trudeau, a statement was released that our two countries intend to reach an agreement-in-principle to reduce and mitigate the impacts of water pollution in the Elk-Kootenay watershed in partnership with Indigenous peoples on both sides of the border, with communities, with industry to do what needs to be done to protect species and watershed health.
I take this very seriously, of course, as do my colleagues in the Ministry of Environment and Climate Change Strategy, and we will do everything that we can from the province of British Columbia to collaborate with our partners across the border with Indigenous peoples, with communities and with industry to do just that — work to reach that agreement and then undertake the activities after that agreement is reached.
A. Olsen: With all of that, then, there should be no issue with referring this to the commission.
Hon. J. Osborne: Yeah, to be more clear, I think B.C.’s position has remained that an IJC reference isn’t needed in the sense that it would be duplicative to processes that are planned and that are already underway to address this and that adding additional complexity with the transparency process may not clearly define what the problem is that needs to be solved. With the announcement coming from the Prime Minister and the President’s visit and the seeking of a collaborative agreement-in-principle on how these issues should be addressed, that’s the path that we intend to follow.
A. Olsen: The commission was created in the early 20th century in order to address exactly this, a collaborative approach recognizing that these watercourses start in one country, visit another country and then end back in Canada — specifically this watershed, the Kootenay watershed. It has impacts on Indigenous people. It has impacts on all the residents that live in the area.
The minister mentioned collaboration with the First Nations. There are quotes suggesting that the federal and provincial governments have gone alone and have not included, at least, the Ktunaxa in their conversations about what the strategy is to go forward. We have a body that is created to deal with that collaborative need, to ensure that people on both sides of the border are able to be confident in the processes.
There has been a lot that’s been written about this. I mean, the progress that’s been made, as the minister has referred to it…. Despite the money that’s been invested by Teck, selenium levels are still high. They’re still not achieving what is needed to be achieved. So $60 million in fines in 2021 for the company and $16 million in fines just this last month are an indication that this company is still challenged to be reducing these hazardous and toxic chemicals in the watercourse.
The minister’s predecessor and the Minister of Environment wrote in 2021 to the Foreign Affairs Minister, Mélanie Joly, stating that the province maintains that there are other, more efficient ways to address concerns around selenium levels, yet selenium levels remain high.
Calvin Sandborn, at the University of Victoria, is quoted in an article, saying: “The government of B.C. is aligning itself with Teck Corp. and acceding to the request of Teck to oppose an International Joint Commission reference.” So it very much appears to…. If you just take a look at the lobbying record, this government and this minister have been heavily lobbied by Teck. It seems like what we have here is we have a provincial government that has been walking in lockstep with the corporation that the minister suggests it’s our responsibility to regulate.
One of the comments that was made by Erin Sexton at the University of Montana highlighted how, basically, the province and Teck are gatekeeping the data that are needed in order to be able to gain the confidence that what the minister is saying is happening is actually happening, suggesting straight up that one of the problems is that B.C.’s professional reliance system has Teck responsible for collecting its own data and basically monitoring itself.
The picture that’s being painted here is not one of a relationship between a regulator and the company that’s being regulated. It very much…. The picture that’s being painted is one of government and the company walking in lockstep with one another. I’d be interested to hear the minister’s response to that, because that’s definitely what’s left in the public’s imagination.
Hon. J. Osborne: I want to start off by, again, acknowledging that until recently, decades of mining activity in the Elk Valley have led to significant waste rock accumulation, to alteration of lands and of the water courses, poorly understood environmental impacts, degrading water quality trends and that those trends are beginning…. The trajectory is now beginning to change with the water treatment facilities that Teck has brought online and is required to do so.
The member referred to the lack of transparency around data. I just want to say again that that’s, in part, why the Elk Valley Water Quality Hub has been brought online as a portal for people to see directly the data and see the trends of where selenium levels are going.
The member also referred to the Ktunaxa and the province not collaborating, but I want to go back to 2014 and the development of the Elk Valley water quality plan, which was approved as part of the area-based management plan — work that was done collaboratively between the province, the federal government and the Ktunaxa Nation.
I know the member and I have discussed these kinds of things before, about just how important it is for Indigenous peoples, for the First Nations, to be directly involved in the management of those plans — and as time goes by, for more integration of Indigenous ways of knowing, Indigenous science, Indigenous knowledge — to be a part of those plans and the way that environmental qualities are monitored and measured over time.
The member refers to some of the administrative monetary penalties that have been applied. I know he understands that these issues are under the purview of the Ministry of Environment and Climate Change, but just to read into the record too, over 200 inspections have been completed since 2014, since the Elk Valley water quality plan was developed. The increasing numbers of administrative penalty referrals for ongoing non-compliance has resulted in over $17.2 million assessed against Teck.
These are serious issues, they should be taken seriously, and I believe that they are — certainly by us, and I believe by Teck as well. Some of that non-compliance has occurred between 2019 and 2021 because of delays in implementing the water treatment that’s very much required.
In the Ministry of Environment, the minister is in the process of kicking off a process to update the area-based management plan. On the work we’ve been just talking about, the President and the Prime Minister released their statement about a collaborative process. This process is really key. I mean, I note the federal government has not requested an IJC reference. You know, in some senses, the province is at the mercy of the federal government in doing so; this is the International Joint Commission. It is so important to me, again, that the Ktunaxa have a primary role in the development of that collaborative agreement and in the activities that occur afterwards.
There is so much trust that needs to be built or rebuilt. I don’t think that we’re alone, in the southeast of British Columbia, when it comes to the result of industrial activities on the land base and in First Nations territories. Indeed, what we went through with the Blueberry River First Nation and seeing the result of decades of industrial activities in the northeast and the impact on Treaty 8 rights…. Those principles must be expanded across British Columbia.
That’s why, in part, our government created the new Ministry of Water, Land and Resource Stewardship. Now of course, that’s being led by a new minister to do just that: to reframe and develop a new approach to co-management and shared decision-making on the land base, one that affirms and protects a response to First Nations rights and title and puts them at the centre of decision-making. We have a lot of work to do in the southeast of British Columbia. I will never shy away from that, and I remain committed to that which needs to be done.
In the end, I think we are all seeking to find ways of undertaking activities that provide good jobs for people, including Indigenous peoples — as we’re seeing with more equity stakes and more involvement in industrial projects — but one that respects the environment and doesn’t diminish, for future generations, the services that ecosystems provide for people and for other species and, ultimately, that respects reconciliation. I know that the member and I share these goals, and I really appreciate his feedback and comments.
A. Olsen: A last question. Thank you to the member for Kootenay East for this opportunity.
I had a whole other bunch of questions to be asking of Energy, Mines and Low Carbon Innovation. It’s a large ministry. I think, when I take a look at the mining industry and the reality that the provincial government continues to fight with First Nations about mineral claims — we’re going to court, and we’re in court now on it — you know, it’s pretty difficult for me to fully embrace the fact that this ministry has figured out how to engage First Nations.
We have one of the oldest acts in the province, which has been long promised to be reformed and updated. I talked about it with the minister’s predecessor last year. Yet a year later, 12 months later, Indigenous nations are in court about how their territories and claims are being staked on their territories — a seemingly glacial progress being made on this.
Since the 2014 date that the minister gave, there is a quote in an article that I just finished reading from the chief of the Ktunaxa, complaining that the federal and provincial governments were making decisions about Teck without the inclusion of the Ktunaxa. So it makes it difficult for me to really fully embrace that this ministry has figured out how to engage Indigenous nations in a way that is inclusive of them when we’re fighting in court and when we’ve got chiefs being quoted just a few months ago about being excluded from this.
More Indigenous nations on the other side of the border are complaining that the pollution coming from the Elk Valley is damaging their fisheries. It makes it difficult when we take a look at the lobbying record and see that this company has 28 registered lobbyists. Four of them are former members of the government, with connections directly with this current government.
Eight official lobbyist meetings this year, with another 17 in the last quarter of 2022. Meetings include meetings with the minister, with the DMs and ADMs, with the chief of staff, with the Minister of Environment, with the Premier; three of them this year with the former Premier, the head of the public service and the Premier’s chief of staff. It is very clear that this company has very, very close connections. And then, last week, the former Premier, who was the chief decision-maker in this government, joins the board.
How is it that we are to have any confidence when a company that is making regular calls every day to report environmental infractions that are existing in this province…. They’re making those calls every single day. How are we to have any confidence when, 20 minutes after resigning the seat, the former Premier is now on the board of directors of a spinoff company that’s going to be formed?
I ask the minister to please give the people of British Columbia the confidence that the relationship between the government, as the regulator, and the company, as the regulated, is not so cozy that the poison will just continue and that it will just be covered over with political rhetoric and nice words, Yet we continue to see the pollution. We can continue to see the environmental infractions. The administrative fines sound like big numbers, but when you take a look at the fact that Teck profited more than $1 billion in the final quarter, you realize just the scale and scope of the penalties that we’re actually administering to this company.
The people of British Columbia need to know — specifically now that the former Premier, the person who was making decisions right up until four months ago, who is now on the board, the active lobbying that’s going on by this company — that the relationship between the regulated and the regulator is one that can be trusted in this province.
Hon. J. Osborne: I’ll go a few different places here and try to address a number of the comments that the member made. At the outset, I just want to say again that I really thank him for his feedback. I don’t disagree with some of the things that he says. What this really boils down to is that we need to do better. I accept that, and I accept the feedback and the criticism that he provides.
I do want to speak a little bit about the division of roles and responsibilities within our system of government: the separation between political decisions that are made by us as elected leaders and the decisions that are made by the public service, primarily in their roles, set out in legislation, as statutory decision–makers; the differentiation between the roles people in Energy, Mines and Low Carbon Innovation play with respect to administering the Mines Act and making decisions around permitting and authorizations in mining; and the responsibility through the Ministry of Environment and Climate Change Strategy under their authorities as defined in the Environmental Management Act.
That clear division of responsibilities is an important part of our system, so that we have an activity being regulated and overseen through one ministry, and the impacts of that activity being overseen and regulated through another ministry.
I also want to point out that since 2014, when the area-based management plan was approved, we have substantially increased the bonds that are required for the company, and we’ll continue to take steps as needed to help improve their performance and protect the interests of the environment and of British Columbians.
The member spoke to the Mineral Tenure Act and the need to modernize it. The current court case that’s going on…. Of course, the member will understand that I won’t comment specifically on the court case, except to say that we respect nations’ rights to pursue their interests through the legal system.
I think that all of us want to get to a place where these kinds of issues can be resolved outside the courts. That’s always our primary goal, and our deep commitment to advancing reconciliation is guided by the Declaration on the Rights of Indigenous Peoples Act and the declaration act action plan, which clearly lays out the priority to modernize the Mineral Tenure Act.
This is an ancient, archaic piece of legislation that was designed to divide, to separate Indigenous peoples from their lands and from their resources. We know that this act needs to be changed. I’m very deeply committed to that work. It’s in my mandate letter, but more importantly, it’s in the declaration act action plan. That has been consistently identified as a priority by First Nations.
We have undertaken the initial work with First Nations Leadership Council. We need to do this work with First Nations rights and title holders, because the FNLC, of course, is not the rights and title holders. We need to do this work well, so that we make lasting change. We need to do this work in parallel, working with industry and with communities, to make this the durable change that’s required.
Outside of the Mineral Tenure Act modernization, we are doing work to address certain concerns. The work that we can do now, as that work to co-develop…. Those changes to the Mineral Tenure Act are occurring. That will include things like better integration of mining interests into land use planning.
I spoke, in a previous answer, around the importance of a land use planning process that is done together with First Nations and that puts them at the centre of that planning process so that it provides more predictability and certainty for industry. It protects the ecological, cultural, spiritual interests and values of First Nations and Indigenous peoples and still allows for some activity, in the right places, at the right times, for sustainable jobs and to support communities and prosperous communities.
This also includes developing a process to better enable or notify, a notification process, First Nations of events like claims. That work is going to continue to go on.
Then, finally, the member spoke around lobbying, and I do want to make a few comments on that. There is a lobbying registry, of course, that exists. British Columbians need the transparency to see who I am meeting with. Who are public officials meeting with?
Again, I spoke about the roles and responsibilities of the public service versus elected officials. I think, to best understand a company’s interests and to discuss with them their goals and how they need to be met and how our legislative standards and requirements need to be met, those meetings need to take place.
I also meet with First Nations, with local governments, with environmental groups. Many of those don’t appear on the lobbyists registry because it’s not required. But it’s very important for me, as an elected official, to take that balanced approach and to hear a number of perspectives and consider all of those interests. That’s my job as an elected official, and that’s my job as a minister of the Crown. I take that responsibility very seriously. I know the member understands this. We’ve talked about it before.
The final words I want to add are just with respect to the former Premier being appointed to the board of Teck Resources. One of the things that I admire the most about the former Premier is his complete dedication and leadership in passing the Declaration on the Rights of Indigenous Peoples Act. It’s that kind of commitment and that kind of vision that I think will serve us well in seeing somebody like him serve on a board. That was his choice. I’m sure that he will do his very best and use all of the skills that he has to help bring together Ktunaxa, the company, the communities and serve the interests of all.
The Chair: At this point, I’m going to ask the committee to take a five-minute-only recess. So if everybody can be back in seats in five minutes, please.
The committee recessed from 3:03 p.m. to 3:10 p.m.
[J. Routledge in the chair.]
The Chair: Everyone, we will continue consideration of the estimates of the Ministry of Energy, Mines and Low Carbon Innovation.
I believe the member for Kootenay East has the next question.
T. Shypitka: Yeah, thanks, Chair. Welcome to the chair.
Just to kind of lay out a little framework of where we’re at right now with the estimates. A little bit, on my part, of mismanagement yesterday. Some of the questions have been, with all respect, a little bit long. At the opportune time, the Greens came and took a little extra time.
We’re going to try to get through B.C. Hydro today. That’s my total goal because I understand that staff is here, and they need to go back to Vancouver. So we’re going to try to do that. We might have to come back tomorrow for some more mineral stuff. We haven’t even touched the critical minerals strategy yet.
I’ll lead it off with the Skeena…. We’ll see if we get through this here and appreciate quick, solid answers.
E. Ross: I’ll try to combine my questions, like I did yesterday, in the essence of saving time.
Cedar LNG just got approved recently, for everybody’s news updates. As well, we had LNG Canada approved there a few years ago. The billion-dollar question has always been whether or not they run on gas turbines or electricity.
My band, when we actually helped put together Chevron LNG as well as LNG Canada, argued for electricity inside the fence. But at the time, both LNG Canada as well as Chevron argued that they needed inside the fence for reliability. They couldn’t rely on B.C. Hydro because in the case of a power outage, they’d be hooped. So they wanted electricity as a backup, and they wanted the natural gas turbines as their main power source.
We’re now into what I’m going to characterize as a third round of consultations for the electrical line upgrade from Prince George to Kitimat. Why I say it’s probably a third kick at the can is because I was part of the first two consultations in that regard.
A very quick couple of questions here combined into one. How much will this upgrade cost from Prince George to Kitimat, and who will pay for it?
Hon. J. Osborne: I’ll speak about the current expressions of interest that are out, looking at potential customers for the twinning of the line from Prince George to Terrace. This is looking, of course, for customers from a whole different range. That could be mining operations, ports, LNG facilities. That is still being firmed up as to what the specific interest is.
I’ll also add, perhaps, that although the focus is between Prince George and Terrace, out of this process, we’ll understand better what additional infrastructure might be required, for example, to go down to Kitimat or up to New Aiyansh or out to Prince Rupert.
The costs of this are allocated between the customers and B.C. Hydro, the utility, according to the BCUC-approved extension policy. I don’t have those numbers yet. We don’t have those numbers yet because, of course, we haven’t firmed up what that interest is yet. So that’s yet to come.
E. Ross: Thank you for that. So I’m going to make an assumption here that we’re not going to talk about LNG Canada being a customer for phase 1 or phase 2, and we’re not talking about Cedar LNG being a customer. Really, what we’re talking about is Nisg̱a’a LNG being a customer here.
In my day, when they first started these consultations with First Nations, we had an estimate around $100 million. These numbers are about ten to 15 years old now. Now I’m hearing numbers being batted around, like $500 million, up to $1 billion. I think the northwest, including…. I’m presuming that when the minister is talking about other customers, she’s talking about the new customers that will be along the northwest transmission line or at the end of the northwest transmission line.
Are there any numbers that came out of the last consultations that we could use for comparison just to relate what might be coming up in the future in terms of the cost of an upgrade coming from Prince George to Terrace? Just by that, we can extend our estimates on our own in terms of what it would cost to go from Terrace to Nisg̱a’a. So just ballpark figures for Prince George to Terrace.
Hon. J. Osborne: First of all, I just want to say that I don’t think we want to make any assumptions about who are the customers at this point, and that confidentiality is part of the process at this expressions-of-interest phase. A very high level estimate that’s been put out — very preliminary, not based on any formal engineering — is $3 billion. We have already engaged in conversations with the federal government about this.
I also want to add that B.C. Hydro and the province are working with First Nations on how they might want to be involved in the project, including the assessment and the permitting and the ownership and equity stake in the project.
E. Ross: So $3 billion — okay. I’m at a loss for words for that one. I wasn’t expecting that; I was expecting the top end of $1 billion. Okay, I’m going to throw out the rest of my questions regarding that cost. Wow.
In terms of the comment around confidentiality, it’s no secret that the big question up north was whether or not these LNG plants are going to burn gas to operate their turbines, versus using electricity. Nisg̱a’a is fully aware of this. In fact, Nisg̱a’a in their application has said they’ll build a barge to house their turbine to power up their facility, in case B.C. Hydro doesn’t make the commitment to upgrade the line from Prince George to Nisg̱a’a.
I’m just going to assume that we’re talking about another…. Jeez, now my numbers are all off. On top of the $3 billion estimate, we’re probably looking at maybe a top end of $500 billion to three-quarters of a billion dollars from Terrace to Nisg̱a’a, because I’m not aware of the upgrades needed. I’m aware of the upgrades that are needed from Prince George to Kitimat, but I don’t know about the upgrades needed from Terrace to Nisg̱a’a.
I’m sure those numbers will work out. In any case, I think it’s irrelevant if Nisg̱a’a is planning in both scenarios. Either way, if they do build this barge so they can burn gas to power up their export facility, I still believe they’re going to need an amount of power coming from B.C. Hydro to actually supplement or even be a backup to what they have in place there.
A $3 billion upgrade — that’s going to have to be spread out. So when we’re talking about the customers paying for that…. And that’s an agreement that’s actually got to be worked out as well as approved by the BCUC. I understand that.
B.C. Hydro is going have to go beyond the groundwork to disclose this type of information, especially to First Nations, when they’re consulting and accommodating the rights and title interests of First Nations from Prince George to Kitimat, as well as the treaty rights of Nisg̱a’a, as well as the surrounding First Nations that actually are disputing Nisg̱a’a Ksi Lisims LNG, meaning the Gitanyow as well as the Laxkw’alaams, and I’m not sure about Kitkatla.
They’re going to have to disclose some of this anyway, so I don’t think it’s as confidential, given all the past consultation and accommodations that B.C. Hydro has already, currently, made over the last 15 years or so.
When we’re talking about this new upgrade, specifically the cost, this $3 billion cost…. I know it’s in theory, and I appreciate the minister being open about that. Can we clarify that that $3 billion cost will be covered by the new proponents that are needing the supply and not the existing customers up in Skeena and the northwest region of B.C.?
Hon. J. Osborne: I’ll first address the confidentiality issue and, again, try to explain better, perhaps, that the confidentiality — at this stage of the process, in the expressions-of-interest phase — is between B.C. Hydro and particular customers. What a particular customer is doing or needs is kept confidential. That in no way prevents…. Of course, B.C. Hydro would undertake all of the work that is required, as the member was talking about, with respect to working with First Nations in the design, the procurement and the building of new transmission infrastructure.
It’s very early to really speculate about who would pay what. The extension policy delineates how costs are split between customers and B.C. Hydro. Of course, these customers are not just, potentially, an LNG facility but mines, the port and other industrial activities. Again, this is what the expressions-of-interest process is designed to elicit: these expressions of interest.
The allocation of costs will depend on the revenues of new customers. They’ll get credit for revenue that they generate, and this information, again, is being elicited through the EOI process. I’m not entirely sure of what the member was getting to when he spoke about existing customers. I will say that protecting affordability for residential ratepayers, for example, is a key goal here as well, of course.
We haven’t ventured yet into the new B.C. Hydro task force that’s being stood up, but the task force is very much about identifying the needs that exist and that are projected to be coming, and undertaking the proper planning and procurement for that, as we work to electrify more and more corners of British Columbia.
E. Ross: That’s exactly what I was talking about — affordability for existing customers in the northwest and probably across B.C. I do understand BCUC’s role in all of this, as well, but I think it’s important, especially for my constituents, to know that we’re actually canvassing the government in relation to these billion-dollar questions.
In terms of confidentiality, nobody has really lobbied me for power needs north of Nisg̱a’a. Now, I do know that that’s the new northwest transmission line. It goes up past Nisg̱a’a towards Meziadin Junction and the Bob Quinn Substation. I understand that. But most of my requests over the last 15 years have been in relation to the upgrade from Prince George to Kitimat, for obvious reasons.
Chevron and LNG Canada were front and centre, but even when I was chief councillor of Haisla, we entertained the power needs for Cedar when we were negotiating with LNG Canada for the Cedar project, so it’s nothing new. That’s where the context for my comments were in terms of confidentiality. The numbers that we’re talking about in terms of LNG Canada’s need for power, as well as Cedar’s and as well as Nisg̱a’a’s — they’re all online. It’s not confidential.
Yeah, they might be general, and they might be an estimate, but apart from those projects, I’ve never really seen or heard of any other discussion in relation to an upgrade from Prince George to Kitimat or to Nisg̱a’a, for that matter. If there are, I’m sure I’m going to hear about it when I get back.
But to be fair, I have been requested to go up and look at the mining sites north of Nisg̱a’a, and I just haven’t been able to get out there. I am supposed to get out there when the House rises. That’s a tough place to get out to. The member from Kootenay East is going to come with me.
When we’re talking about this, I do know we’re estimating. It’s hard to nail costs down, but when we’re talking about a general number like $3 billion, are we also talking about any potential cost that will come from signing impact-benefit agreements with First Nations? There are a lot of First Nations that have already gone through this a number of years ago — a few times, from Prince George to Kitimat — but there will be new First Nations interested in the consultation process.
I’ve mentioned a couple of them already in terms of Nisg̱a’a and Lax Kw’alaams and maybe Kitkatla, for that matter, that have already got their issues on the record with the B.C. government regarding Nisg̱a’a Ksi LNG. So is there any estimate? Or is that estimate for the IBA cost rolled into the cost of the $3 billion upgrade from Prince George to Nisg̱a’a and Kitimat?
Hon. J. Osborne: First of all, in my haste and eagerness to be part of the estimates process, I neglected to introduce the CEO of B.C. Hydro, Chris O’Riley, and the CFO of B.C. Hydro, David Wong. And there’s a whole team of other folks who are supporting me.
Sorry, gentlemen, for missing that.
To the question from the member, the $3 billion figure that I mentioned is very preliminary, and we just don’t have that level of detail to say whether it could incorporate the cost of impact-benefit agreements. But on that, clearly, a project like this will have an impact on First Nations’ interests, and we are taking a broader and more inclusive look at how to accommodate those interests than simply the more transactional nature of an IBA. That includes shared governance approaches and equity stakes in a project.
Taking an equity stake in a project like this will provide the type of sustainable, enduring revenue that First Nations seek and is a set of discussions that have already been initiated and underway.
I think this is very exciting, and I think this is the direction that we need to go. It represents a shift in the way energy infrastructure, electrical infrastructure, has been built in this province, and it’s very much in keeping with our commitments under the Declaration Act and our work with First Nations and Indigenous peoples around providing those sustainable sources of revenue for nations to determine, themselves, what the best use of those moneys would be.
E. Ross: I agree. It’ll be a shift but only a shift in terms of First Nations taking up the offer of equity stakes or co-management. Those terms have been around long before I came along back in 2004. In fact, one of the first things I realized as a chief councillor was that I didn’t think we were ready for equity stakes mainly because we didn’t have the continuity as a council. We didn’t have the corporate memory. I couldn’t see myself committing my people to actually borrowing $300 million and then, after 20 years, people wondering why we’re still paying it back. It’s a complicated issue.
You are also talking about elements of accommodation. Co-management in whatever form, if that’s offered to appease the rights and title interests of a First Nation, is an accommodation if it’s framed in terms of accommodation, a process which I assume B.C. Hydro is going to undertake, if they haven’t already.
Equity stakes is an accommodation measure. These are not new terms. These are so old that they actually go back way beyond before I came along.
In terms of the consultation accommodation process, I’m going to say again that this is probably the third kick at the can, because I was part of two previous ones. Has an official consultation accommodation process started between B.C. Hydro and affected First Nations from Prince George to Kitimat and to Nisg̱a’a?
Hon. J. Osborne: First, I just appreciate the wisdom and the perspective that the member brings with his long experience and leadership.
We have initiated discussions with the nations along the projected route of the line. That’s both B.C. Hydro and the province of British Columbia. But those discussions, like I said, are very early stages, just initiated, and will be ongoing.
E. Ross: At some point, though, you’re going to have to initiate a formal process. There will have to be a referral sent to the First Nation regarding the proposed activity and, more importantly, the Crown’s duty to address the impact to the rights and title in question.
I do get how the Crown, possibly through B.C. Hydro, is trying to lay the groundwork for an official consultation and accommodation process. It’s what Chevron did to us back in 2006 for LNG. It’s what LNG Canada did to us back when they came to town.
These companies did it, basically, because they saw the examples of companies that tried to overrun rights and title. They tried to run roughshod over it because they didn’t understand that the Haida court case of 2004 changed the rules on addressing rights and title. So doing all the legwork before an application was made to the Crown was actually perfected by bands like my own band and in partnership with LNG Canada, Chevron, Rio Tinto Alcan.
Can I ask: is there an expectation of how much time will be spent in terms of laying the groundwork before an official consultation and accommodation process starts in regards to the upgrade from Prince George to Terrace and Nisg̱a’a?
Hon. J. Osborne: There will be a formal process, as the member describes. At this stage, the point of the expressions-of-interest process is to get a better understanding of what the project might even look like. In other words, the project needs to be better defined before we can engage in that formal process.
We are laying the groundwork right now, just as the member describes, and the EOI itself closes on April 11. It will take some time to assess the results of that and then take it from there. I can’t give a firm timeline for the member, but I can say I’m certain that at estimates next year, we’ll have a lot more to talk about.
I also want to just express my gratitude and appreciate again the member’s experience and speaking about what has been learned. I welcome, and we welcome, Chair, any insights that he has and what he has gained in his experience in the work that he has done there. I think we all have the best interests in mind of creating the best process possible. Let’s learn from everywhere that we can.
E. Ross: Hon. Chair, really, this is all laid out in case law. When the Crown is aware of a potential infringement, it’s their duty to inform the First Nation in question. You can do it informally, but at some point, you’ve got to do it formally.
A lot of these First Nations have done this so many different times before in relation to forestry, mining, LNG, oil, clean energy projects. The process remains the same, no matter what the activity. What doesn’t change is the government’s duty when they have knowledge of a Crown decision that’s going to affect the rights and title.
To get to a higher level…. To be clear, I’m not trying to pinpoint down exact dates and numbers. I’m not trying to do that. I’ve done it so many different times that I can almost ballpark-guess what’s going to happen next and how long it’s going to take. Because I’ve done this a few times before, in terms of consultation with B.C. Hydro…. The numbers change; issues change; politics change; councillors change; governments change; everything changes. So I think it’s important to revisit some of these questions.
Probably the question on everybody’s mind…. In the best-case scenario, saying that the Crown does everything right through B.C. Hydro and through themselves, what is the estimate, in terms of getting the upgrade completed, whether that be from Prince George to Terrace, or Prince George to Terrace to Nisg̱a’a Ksi LNG?
Hon. J. Osborne: I know the member understands that building a transmission line is a major undertaking, and the expressions-of-interest process we’re undergoing right now is helping to determine the scale, scope and size of that project and when the lines are needed.
Historically, I think we could say that it’s anticipated to take eight to ten years to complete the new lines, but we need to do everything we can to compress that timeline. The Premier has been very clear about that in a number of statements that he’s made.
Again, this is part of the purpose of the B.C. Hydro task force. It’s to look at doing things differently. The member spoke about equity ownership. That’s not a new concept. I agree with the member. But it is new for B.C. Hydro, and looking at governance and ownership solutions that could better align interests, that could be part of shortening that timeline, which, in the traditional way of doing things, we would project to be eight to ten years.
E. Ross: I’m assuming that “expressions of interest” means just going out to all stakeholders and saying: “Look, this is what we’re proposing. Do you have any comment or interest in actually responding or working with us?”
That’s actually a good process. I agree with that. But that is not consultation. That is not accommodation. I mean, the government’s got to go above and beyond to address the rights and title interests if they are aware of an activity that might infringe those interests. And more importantly, those consultations and accommodations have got to be meaningful.
It can’t just be notice. It just can’t be an email or a letter. There’s got to be significant follow-up, and it’s got to address the lack of capacity that many First Nations have. More importantly, it’s got to follow the rules that have been laid out by the courts in terms of consultation and accommodation. But I’ll leave that where it is.
One First Nation in particular is going to be part of that consultation process when it officially starts, and I’m going to assume that B.C. Hydro has already reached out to Kitsumkalum. Now, Kitsumkalum does protect their rights and title. They’ve been in a treaty negotiation for quite some time. In fact, they’re at stage 6 now. They’re getting ready to sign their treaty with B.C. and Canada.
Kitsumkalum signed an impact-and-benefits agreement with B.C. Hydro back in 2012. What they did was, they allowed their rights and title to be infringed for a northwest transmission line to be built from the Skeena substation in Kitimat all the way up to the Bob Quinn Substation outside Stewart. They allowed that to happen. The terminology is infringement, so they allowed their rights and title to be infringed. They signed an impact-benefit agreement with B.C. Hydro, and they did get some revenues.
This is why I’m asking the question about the cost on top of the construction costs. What are the costs to the First Nations, and then will that be included the future?
Well, the Kitsumkalum did get some revenues from the Crown, but they also signed an agreement that said that B.C. Hydro would look at the independent power project that the Kitsumkalum had developed in Skeena, specifically Terrace. I read that agreement. Unfortunately, the wording is pretty vague, in general, and it’s not legally binding. Those are the old-style IBAs. There are new IBAs coming out now that are more business-oriented and more legally binding.
The chief councillor of the Kitsumkalum was quite angry that B.C. Hydro did not follow up on this IPP. He truly thought that the agreement that he signed with B.C. Hydro was written in stone. It was almost like a handshake, and there are a lot of First Nations that still do agreements on handshakes. I did a few of them on my own, with other First Nations. I got up and agreed on a handshake. Then I followed through on that agreement.
Kitsumkalum was trying to resolve some economic questions for their own people, and they were also trying to resolve wood waste coming from their local region. When I talked to the chief councillor two weeks ago about what was coming up here in terms of the new consultation and accommodation process coming up for the upgrade again, his comments were basically: “Why would I entertain that when they reneged on the first agreement?” So he still is looking for support and cooperation and, phrase it how you will, co-management, anything that actually gets his independent power project built in Skeena.
I’m not aware of any conversations that have been held between B.C. Hydro and Kitsumkalum. But every time I’ve talked to him, he has always pointed out that he still wants this project back on the table between B.C. Hydro and himself.
I’m not even sure if there’s a question there. Maybe it’s just information for the minister that…. I promised to follow up on this initiative as well, and maybe the minister or maybe B.C. Hydro has got an answer that can flow directly to Kitsumkalum.
I don’t even think there’s a question there, Chair, but just to make a point.
Hon. J. Osborne: I want to let the member know that I’m very aware of the issue that he described with Kitsumkalum. In fact, I was in Kitsumkalum territory recently and met with three staff members of the nation. Unfortunately, Chief Roberts was not available, but one of the members was the former Chief and described to me very well the situation. So I want to thank the member for bringing it forward, and he can certainly report back to the Chief that he has done that.
I also want to confirm that I am committed to following up with Kitsumkalum through B.C. Hydro. I do understand that B.C. Hydro has reached out to the nation. Again, I’m committed to following up on this.
T. Shypitka: We’ll just jump quickly into a couple of budgetary things here first.
The cost of energy for B.C. Hydro has increased in this budget from $2.9 billion to $3.6 billion. The 2022-23 budget forecast that the cost of energy would only increase by $13 million. Instead, we’re seeing, I believe, about $750 million. Can the minister explain this increase in the cost of energy?
Hon. J. Osborne: I just want to confirm: the $2.9 billion figure referring to the previous fiscal year, $3.6 billion being the current fiscal year? I’m seeing a nod. Okay.
The cost of energy is a grouping of a number of different things, as I’m sure the member is aware. That includes independent power producers, IPPs, and the long-term contracts that have a degree of volume variability and price escalation measures, including inflation, for example, and also water rentals, imports and exports and the price and volume change in imports and exports. As the load grows, the surplus goes down, and the cost of energy increases.
It is something that is difficult to explain verbally. I would certainly offer the member any follow-up information that he wants, to dig in a little deeper into the components of the cost of energy and more of the exact reasons why it has risen.
T. Shypitka: The minister said a few things there that could contribute to the energy cost. She mentioned IPPs. As the minister knows, a lot of those IPPs, those EPAs, energy purchasing agreements…. A lot of them were just recently renegotiated. Some of them, cut drastically — 50 percent in some cases, I believe. The minister can correct me if I’m wrong.
Inflationary costs. I can see that. But we’re talking billions of dollars here. I don’t think that plays largely into that.
She talked about exports. We’ll get into export trading here in a second.
Was there one factor that stood out that contributed to these costs?
Hon. J. Osborne: Thank you to the member for the question. He’s talking about a $700 million difference. I mean, there’s just no way that I can offer a reconciliation to him on those differences today and especially without understanding exactly where the $2.9 billion figure he refers to is coming from. But I can commit to getting it to him.
T. Shypitka: All right. I’ll leave it at that and look forward to the explanation.
Over the three years forecast in this budget, the cost of energy is again going to increase a further $186 million, I believe. This is about a 32 percent increase over four years. Can the minister explain that cost?
Hon. J. Osborne: The two most significant factors in the increase in the cost of energy in the coming years are a reduction in the surplus — hence, a reduction in exports — and the variability in market prices. Again, as with the last question, it would be easier to provide detail in writing, and we’d be happy to do that.
T. Shypitka: Okay. A reduction in exports — that’s interesting. Let’s go into exports, then, a little bit. B.C. Hydro receives more revenue selling power outside of B.C. than it does selling it for industrial uses here in B.C. The minister can correct me if I’m wrong.
Of note, the realized price per megawatt hour is $115.69 for the first nine months for exports, I believe — in this last fiscal. Domestic sales to large industrial sales right now are about $61.75 per megawatt hour. So it’s $115 to export, $61 for industrial use here, domestically.
I’m just going to confirm these numbers, and the minister can correct me. Previous export revenues, the first nine months of fiscal year ’22-23 was $115.69, and the first nine months of fiscal ’21-22 was $71. The average, 2018-19 to ’20-21, was roughly between $40 and $42.50 per gigawatt hour. Trade revenue for the first nine months was $2.57 billion but had a cost of $1.31 billion, and net revenue was about $1.26 billion for trade revenue.
Also, just to clarify, the $100 residential rebate and $500 industrial rebate cost B.C. Hydro $320 million. Can the minister confirm those numbers?
Hon. J. Osborne: I’ll take the numbers the member cited as correct, but I do want to disagree with any premise that prices are always higher outside. Historically, that has just not been the case; rates have been much lower.
Recently, market prices have been very high. There’s a war in Ukraine. We’ve had extraordinary circumstances, including high gasoline prices, for example. Trade income has been good, and that money has gone to keep rates affordable.
I want to just clarify that the $320 million the member cited as being provided in the form of $100 rebates to residential customer accounts is accurate, but the average credit for commercial customers was $500. It was based on use the year before, so that’s an average of $500.
T. Shypitka: Yeah, I understand that commodity prices come up and then drop. That’s the cyclical nature of the business, but right now we’re getting our exports at a premium, $115.69 per megawatt hour. The minister said the cost forecast, of $186 million, was the reduction in exports — which, I guess, leads to the question: why would we have a reduction?
Now, I can appreciate, maybe, prioritizing domestic use or industrial applications as being that rationale, but why would you take something that you’re profiting from, when we have a surplus of power in the province? The IRP states that. Why would you take from one…? Why can’t we have it both ways? Why would we be reducing our exports when we are keeping rates low with that?
Hon. J. Osborne: Unfortunately, we can’t have it both ways. We can’t both have a higher load in British Columbia and have higher export volumes. There are three factors that I think are important to explain.
First of all, the priority is serving British Columbians and British Columbian customers. It’s building our economy. It’s electrifying those customers to reduce emissions and supporting the strong economy that we want and need here in British Columbia. The load is growing, so exports are necessarily declining.
The second factor is year-to-year variability. That depends, in hydro conditions, on water conditions, depending on the snowpack and precipitation. That’s going to impact surplus and the ability to sell electricity.
The third factor is that Powerex buys and sells outside the U.S. entirely. For example, they will buy from the Pacific Northwest and sell to desert states. Those transactions and the revenue that’s realized from them also show up in the revenue. So that’s another factor that I just want to make sure the member is aware of.
T. Shypitka: I just need to understand. The minister says that we can’t have it both ways. We can’t have our cake and eat it too. We can’t have higher load and higher export trade, I think is what she said.
I wonder why, though. I don’t understand. The IRP says we’ve got a surplus of power right now. All should be fine. We’ve got Site C coming online. Yeah, there’s a growing demand. I’m sure that must have been factored into the load forecast that makes up the IRP. Unless, of course, the minister wants to say that the load forecast was wrong and we need to scramble for some more power, because it seems like that’s what’s happening right now. We’re giving up goods on one side to scramble the field power needs on the other. That doesn’t seem like we’re well balanced, like the IRP maybe suggests.
The minister also noted that part of the cost was on energy purchasing agreements for IPPs. Some of those have been renegotiated. Some of them are coming due. But of the ones that have been renegotiated, maybe the member can tell me how many have been renegotiated and what was the net surplus given the commodity price now for energy, electricity.
Hon. J. Osborne: First let me just address “having the cake and eating it too.” I’ll just try to explain it like this. If in one year we have a finite amount of electricity and, say, the load…. The customers here in British Columbia consume 70 percent of that, and we have a 30 percent surplus. That surplus can be taken and sold.
If, the next year, we have the same amount of electricity available, but a new mine has started operations, and we have 80 percent of the power being used here in British Columbia, we only have 20 percent left. We can only sell that. That’s what I mean by: “We can’t have our cake and eat it too.”
Our primary focus, our first responsibility, is always going to be keeping the lights on at home here in British Columbia. I want to assure the member that we’re not leaving anything on the table. We’re taking advantage of that surplus power as best we can but, again, prioritizing its use here in British Columbia.
The member asked a question about EPAs and how many are being renegotiated. As the member knows, there are 125 EPAs, electricity purchase agreements, and 18 of these are expiring by the end of 2026. They’re part of the EPA renewal program. Two of these have been executed, and all, of course, go through the process at the B.C. Utilities Commission.
T. Shypitka: Thanks for the information. I’ll have to get back to some of that stuff a little later. But part of my question was: of the EPAs that have been renegotiated in the last several years — I think Skookumchuck might be one of those — what would the net revenue be on the savings that were incurred by the reduction of those EPAs?
Hon. J. Osborne: I believe the member is speaking about the last round of renewals. There were 19 biomass EPAs that came up for renewal early in our government’s mandate. Eight of these were renegotiated, a lower price and lower volume than the previous terms, and the government provided direction to the BCUC to undertake this.
Now, seven of the eight were renewed. One was not, Powell River, because the mill shut down. If the member wants to understand the cost savings there, then, please, I would ask him to just say so, and we can get him that information.
We are now on a different renewal program. When I speak about the next 18 IPP renewals…. I was just referring to…. Two have been executed. I want to acknowledge the tension between a fair return to the IPP proponent and also keeping rates affordable for their customers. B.C. Hydro is working hard, in those negotiations, to do just that and to get the best price for people.
M. Lee: I appreciate the minister’s last response in terms of the 18 EPAs that were up for renewal by 2026, two of which have been renewed.
I had the opportunity to review, at length, with her predecessor this time last year, in estimates…. I wanted to come back and review some of the points there. Before I go into that, let me just say to the minister…. I appreciate the minister’s response to the member for Kootenay East here one or two responses ago.
In terms of the new energy action framework, the opportunity for the province to consider, in a broader way, how we can further position B.C.’s economy and electrify it to meet all the transitions to a clean energy future, that’s certainly something that is well supported here.
In terms of the opportunity that presents itself with the B.C. Hydro task force to accelerate the electrification of B.C.’s economy, I’d ask the minister…. When we look at the initial release…. The composition of that task force will include senior officials from the province and B.C. Hydro as well as Indigenous representation and independent expertise.
I think the minister will recognize that I’m here in my capacity as the shadow minister for Indigenous Relations and Reconciliation. The reason why I’m asking these questions is particularly with that in mind.
Can the minister describe how this task force will be comprised in terms of Indigenous peoples and other leaders of First Nations in our province?
Hon. J. Osborne: First of all, welcome to the member for Vancouver-Langara. It’s good to see him here. I welcome his questions and his input.
The B.C. Hydro task force has an important set of tasks before it, of course. As we’ve already publicly stated, it will have Indigenous representation on the task force. It’s going to be a small and focused group. There isn’t a determination yet as to who or how that composition will fall out. But as I said, it will have Indigenous representation on it.
Further, there will be an opportunity, through working groups or an advisory group of some kind, for more involvement of Indigenous persons. That work will help support the task force. I welcome the member’s input if he has any specific ideas that he wants to provide me with.
M. Lee: I appreciate that welcome and response. I would expect, through this exchange that we’re having right now, that the minister will give us answers to some of the suggestions I would have.
I would draw the minister’s attention to action item 4.43 in the DRIPA action plan. This was, of course, part of the action plan that government tabled a year ago. This one relates to the co-development of recommendations on strategic policies and initiatives for clean and sustainable energy, including identifying and supporting First Nations–led clean energy opportunities and the like, relating to various bodies — CleanBC, B.C. Hydro, B.C. Utilities Commission inquiry on the regulation of Indigenous utilities.
I’d ask the minister: what is the status of the work of the minister’s ministry to meet the requirements of this particular action plan item? Secondly, to what extent or degree would this new energy action framework be considered in meeting some of those requirements? How would it dovetail with 4.43?
Hon. J. Osborne: Thank you for the question. I welcome it. It’s a good opportunity for me, again, to just affirm the commitment that our government has made to advancing reconciliation with Indigenous people and aligning provincial legislation with the UN declaration on the rights of Indigenous peoples, as is required under the act.
The Indigenous clean energy opportunities engagement is described in section 4.43 of the action plan the member mentions. This process, the ICEO process, launched back in November 2021, and we held two workshops in early March 2022 with First Nations and with Indigenous organizations. It’s intended to be an evergreen forum. So this is for collaborative dialogue between the ministry, Indigenous leadership, First Nations themselves and organizations to really help position Indigenous nations to fully participate in current and future opportunities in B.C.’s clean energy sector, including clean electricity, gases and fuels, and to engage on related legislation and policies and align B.C.’s clean energy laws with UNDRIP.
The process. The launch was hosted by the First Nations Leadership Council and the ministry, with over 116 First Nation participants from approximately 90 communities and organizations across B.C. The ICEO workshops have included participation of First Nation and Indigenous organization representatives across B.C. The ICEO workshops have included participation of First Nation and Indigenous organization representatives. The engagement topics for this fiscal are hydrogen and renewable natural gas, a learning series on electricity market systems and regulation, and the development of a joint process for engagement on clean energy regulation and legislation.
I continue to look forward to this partnership with the FNLC and to receive advice and recommendations that are coming out of this process that are going to feed right into the B.C. Hydro task force. The member asked specifically about how this related to the new energy action framework.
Also importantly, the new clean energy major projects office that’s being stood up. Again, we’ve been speaking today about Indigenous involvement in energy projects and in electrical transmission and infrastructure. For example, we’ve had a long conversation about the twinning of lines from Prince George to Terrace, and how First Nations and Indigenous organizations can be engaged in that.
We know that First Nations have amazing and terrific aspirations when it comes to clean energy projects, for example, Fort Nelson First Nation and their geothermal project, the Kitselas First Nation. And there are so many others, so it’s an exciting time. I look forward to the work to come and thank the member for the question.
M. Lee: I do appreciate the minister’s response and the opportunity that the member for Kootenay East has provided here.
Let me just say…. I do appreciate the response from the minister. I don’t often get the opportunity to say this directly, but just joining this estimates process in this stage, I do want to say that I have tremendous respect for the team around the minister, not to mention the minister herself, but just the team around the minister.
Just to say that, as the two of them know from my past history as a lawyer, I’ve had much occasion to work with both the current CEO of B.C. Hydro, as well as ADM MacLaren. Keeping in mind that respect, I know that we can have a very good discussion from an Indigenous perspective.
With that in mind, I also would say that when members of government and members of our opposition caucus, including our leader, the member for Vancouver-Quilchena, were up at the Prince George resource conference, I know that the B.C. Hydro CEO’s speech was very well received in many respects, but in particular, around other topics that have been discussed here at estimates stage, relating to how the expansion of transmission lines would work up in the Pacific Northwest and the need for building of that capacity, as well as the potential involvement of First Nations, from an equity participation point of view.
We certainly have seen that level of broader thinking by other organizations like Hydro One and the focus that other organizations like First Nations Power Authority of Saskatchewan have. That higher-level thinking and broader approach certainly is required to align interests, as the minister suggested, in terms of accelerating the eight- to ten-year timeline.
I do have a follow-on question, though, from the member for Skeena. He did come back into the room and pass me a question. Just because the minister did mention that line again…. So we understand that Cedar is exempt from clean energy initiatives, in terms of the net-zero requirements. But that may change upon the MOU signing.
Is Cedar expected to pay for some or all of the upgrade costs of the line from Prince George to Terrace? That’s the first question. Secondly, from Terrace to Kitimat? That’s the second question. And is Nisg̱a’a also expected to pay for any upgrades?
[H. Yao in the chair.]
Hon. J. Osborne: In answering this question, I want to be really clear about the infrastructure that exists and the infrastructure that is needed.
First, for the line that exists right now from Prince George to Terrace, there is an expansion of capacitors being undertaken. This will cover Cedar. So there’s no new line that will be required from Terrace to Kitimat to cover Cedar.
Cedar will have to pay for the connection to the Kitimat substation, as any industrial customer would. They are subject to the extension policy that covers the Prince George to Terrace capacitors upgrade. In other words, they are following the rules, the normal rules, under the BCUC-approved tariff and paying their share of the cost.
With respect to Ksi Lisims, I think it’s just too early to say what contribution will be needed. That would be the third part of the infrastructure, which is the twinning of the line from Prince George to Terrace, the one that is subject to the expressions of interest right now.
M. Lee: I appreciate the response. I just wanted to turn back. The minister, in her previous response, was referring to, of course, the adherence to UNDRIP through DRIPA, the act itself. I wanted to ask for the minister’s comment…. Recognizing, of course, what’s set out in 4.43 of the DRIPA action plan, as the minister responded to, in terms of a status update….
We have set out, in articles 26 and 29 of UNDRIP, sections that relate to this: “Indigenous peoples have the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired.” That was sub 26.1. Subarticle 29.1 says that Indigenous peoples have the right not only “to the conservation and protection of the environment” — recognize that — “and the productive capacity of their lands or territories and resources.”
I wanted to draw the minister’s attention, as we consider going forward with the partnerships with First Nations, to the interpretation of these articles, as government sets their policies and frameworks. In my view, articles 26 and 29 set out some of the so-called rights to economic livelihood for First Nations in our province.
I’d ask the minister, as we consider the status, so to speak, of the renewal process on those EPAs for the remaining 16 contracts — many of which, as we’ll review in a moment, are First Nations–owned or –involved: what’s the consideration the government has?
I appreciate the comment. Again, her predecessor gave me that comment last year around affordability and the ratepayers. I understand that, certainly. But in terms of First Nations rights, particularly as we talk about their economic livelihood rights under UNDRIP, how does the government consider that, against how they are proceeding through those negotiations for those EPAs?
Hon. J. Osborne: I appreciate this question, and I think it has some subtlety to it. First, I’ll say that B.C. Hydro treats IPP contracts, of course, as commercial arrangements. They do not use a separate process for Indigenous-owned IPPs versus non-Indigenous-owned IPPs. They go through the same BCUC process as well.
The member makes an important point. I want to point to one of the roles of the new B.C. Hydro task force, which will be looking at advice on, for example, the role that BCUC should play with respect to balancing the objectives of reconciliation, economic factors and viability of projects, climate, affordability and other things.
I also want to make a differentiation between government’s role and B.C. Hydro’s role and say that I think where we’re going is that we need to increasingly develop these policies that will reflect reconciliation, in an environment where Indigenous nations are increasing their involvement. Again, I think there is some subtlety to this. I take the member’s point, and I agree with him that these things need to be considered very carefully.
M. Lee: I certainly appreciate the manner in which the minister responded. Recognizing the considerations, let’s say, and the distinctions between the role for B.C. Hydro versus the role for government, I think it does point to the task force and the work of the task force, which is helpful to know.
Well, let me ask this then, at this point. In terms of the composition of the task force…. We were touching on that earlier, and I appreciate that it’s meant to be a small and focused group, as the minister said. I appreciate, again, the involvement of the First Nations Energy and Mining Council at times, by this government, to determine priorities and policies and getting input.
Will First Nations, though, that have economic interests — including, for example, those remaining EPAs to be renewed over the next three years, the remaining 16 of them…? That’s an example. We’ve talked about a number of the other First Nations, adn the minister has also referred to, for example, Fort Nelson.
Will these other First Nations that have particularly focused economic interests in clean energy be invited to at least provide some input if they’re not necessarily members of the task force? Will there be a mechanism to consult more broadly, let’s say, by the task force?
Hon. J. Osborne: The answer, simply, is yes. I can’t provide details specifically on what that mechanism will be yet, but that’s a very important part of the process.
M. Lee: I appreciate…. Just reflecting for a quick moment on the minister’s previous response, the minister clarified, of course, that the obligation, let’s say, under DRIPA is on the government of this province. With the work of the task force, what will be the steps for government to ensure that…? Will there be another layer of review and discussion to ensure that it complies with the requirement under section 3 of DRIPA, which is that all laws of the province be consistent with the articles of UNDRIP?
Effectively, as government moves forward with these policies, it means that those articles that I cited — 26.1, 29.1 — need to be kept very much front and centre by government as they look at how we develop more of these clean energy initiatives and plans.
Hon. J. Osborne: Thank you to the member for mentioning the First Nations Energy and Mining Council. They are working with the province, through the Indigenous clean energy opportunities program, to set up a forum to bring in rights holders from across the province and particularly, as the member mentioned, those with experience and perspective on energy projects and those seeking to engage in energy projects.
The member asked more details around ensuring adherence to the requirements of section 3. I want to be clear that the work of the task force will be to provide advice to government and that it is subsequent legislative policy, regulatory developments, that would of course be subject to the interim approach to implement the requirement of section 3 of DRIPA.
M. Lee: I appreciate that response as well. I wanted to ask…. We recognize, of course, when we’re referring to Indigenous power producers, that they represent or are involved with about 80 percent of all IPPs in British Columbia, which in turn are responsible for about 13 percent of B.C.’s electricity needs production.
Asking the minister: recognizing that there’s still the renewal process that’s there, recognizing that there’s work of the task force as government and B.C. Hydro and the task force re-positions, let’s say, the role going forward, what is the minister’s expectation in terms of the opportunities for First Nations like Kitsumkalum?
I did follow the last part of the minister’s exchange with the member for Skeena. There was some suggestion from the minister that there’ll be a further follow-on. But really, will there be…? I know that the minister will say: “Well, that is something for the task force to review.”
Really, is there a path forward here with nations like Kitsumkalum? When the minister makes a statement like that, or a comment, that government will be talking further with them to honour a commitment that was made in the past…. I don’t know that she said those words, but that’s how I would interpret the situation, based on what the member for Skeena has shared.
Will there be, meeting all the energy needs and all the discussion that the minister just had with the member for Kootenay East about exports versus load…? What further opportunities will there be for IPPs and First Nations to be able to help generate that power that we need here domestically?
Hon. J. Osborne: First of all, just a few comments on Indigenous involvement in IPPs. The member cited that 80 percent of all IPPs are Indigenous. I think that’s what he said. I just want to explain that, broadly speaking, we can’t verify the exact Indigenous engagement in each of the IPPs. Obviously, we know those that are outright owned by Indigenous nations. But if there are benefits that are flowing to Indigenous nations through an impact-benefit agreement, for example, that we just don’t know about, then…. So it’s a little bit difficult to perhaps say 80 percent.
I do want to address the main question, and that is: is there a path forward? I think it’s well understood that we know that in British Columbia, we’re going to need more power. We also know that Indigenous nations want to be involved in this. I think given the mandate that I have in my letter from the Premier to ensure Indigenous involvement and engagement and equity ownership in clean energy projects and energy transmission projects, that it is obvious, I hope, that there will be a path forward.
I also, though, want to comment that it’s not just about independent power producers that provide the opportunity for Indigenous involvement in energy, and in clean energy specifically. I want to point to the B.C. Indigenous clean energy initiative, which is supporting clean energy development in Indigenous communities across the province. This includes hydro, wind, biomass, solar, tidal and geothermal projects. In partnership with the province and PacifiCan, the New Relationship Trust has already provided $18.1 million to Indigenous clean energy projects since 2016.
I think we can do more, and I hope that I’ll have more to say on that soon.
M. Lee: Last year I read into the record certain consistent understandings, certainly relating to the number of electricity purchase agreements with IPPs. The minister had a number which was very close to that. Last year, my understanding was — actually, this is not my understanding; this is her predecessor saying this, when I look at the transcript — that B.C. Hydro had 127 electricity purchase agreements with IPPs, representing approximately $45 billion in future commitments. This was this time last year.
We had the discussion around the economic impact with nations, and I read into the record some other figures, apart from what the minister has already commented on, which we can collectively confirm in the future in terms of the sourcing around that. Just to, as a point of reference…. Among the $45 billion under contract, $6.1 billion had been invested in First Nation–owned or –partnered IPP projects in the province over the last 20 years, for which on those investments, 587 ongoing operational jobs for First Nations and 9,875 development jobs for First Nations.
I’m just doing that as a point of reference for the minister and her team, perhaps, just as we consider the opportunity. I do appreciate the minister’s broader point about that and, certainly, recognition about the path forward. Certainly, with that in mind and recognizing, as we talk much about certainty in this province and certainty for First Nations as well, in terms of how they can either renew the projects they’re involved with on an IPP basis….
We know that that’s going to take place over the next few years. The remaining 16 we know, in terms of what the minister commented on in terms of other opportunities. So keeping that in mind and recognizing this timing, what is the expectation of the work of the new task force? With the mandates that the minister has talked about, when is it expected that the task force would form a view and report back to her ministry?
Hon. J. Osborne: When the task force is stood up and struck, then I’ll have more to say. But I can clarify now that my expectations are it will begin its work as soon as possible and be providing advice to my ministry, the Ministry of Environment and others — B.C. Hydro, obviously — in the order of months. So as early as this fall.
M. Lee: I’d just like to turn back to…. First of all, let me say that I’d like to request…. I know the minister has offered a number of briefings to my friend the member for Kootenay East. Just to add to that list, could we also ask that there be a follow-on briefing at some point, just in terms of the important initiative that the minister described with PacifiCan, the $18.1 million, the consideration of other alternative energy projects with other nations? If we could ask for a briefing at some point as a follow-on.
I wanted to just turn briefly to the clean energy and major projects office. The minister has mentioned it here. She had some discussion with our colleague the member for Kelowna-Mission yesterday. I’ve seen some of that transcript from Hansard yesterday.
In terms of how that office will function going forward, what level of capacity and support will that office have in terms of looking at regulatory process, environmental impact and other considerations for First Nations? Will there be any supports there, involvements, as nations consider their processes to get through the various regulatory approvals for a major project?
Hon. J. Osborne: There are three ways that we are supporting First Nations with respect to regulatory and permitting processes, in clean energy and in other things.
First, I want to draw the member’s attention to the Indigenous funding program, the one that is administered by the Ministry of Indigenous Relations and Reconciliation. That provides direct support to First Nations to participate in regulatory and permitting processes. It’s a well-known program. It’s working well, and we’re going to continue to use it and to support First Nations in that way.
Second, I’ve already spoken about the Indigenous clean energy initiative, which is supporting First Nations, again, in clean energy development. Now we’re getting, maybe, more into not just capacity-building but into the development of a clean energy project.
Third, the clean energy and major projects office, as the member was asking about, is the place where we can provide a proponent — be they an Indigenous proponent or not — with the services of the staff that will have the skills and expertise to help them navigate the regulatory processes that a project will have to go through, really help to attract investment and get it across the finish line.
M. Lee: I appreciate that I will have the opportunity, starting tomorrow, to have further discussion with the Minister of Indigenous Relations and Reconciliation, in my own estimates process with him.
The recognition of what the minister said at the end, relating to the major projects office. As we know, of course, there has been much discussion about the co-development of projects with First Nations or joint decision-making. There are many different examples of that taking place.
From a regulatory point of view, as we look at the role of the office in the way the minister described, will that office have a deeper understanding as to how to ensure and facilitate free, prior and informed consent with First Nations?
When we’re looking at getting through the environmental assessment process, for example, with the amendments that were made to that legislation back in 2018, will that office have clarity as to how to manage, so to speak, or facilitate that process so that when we’re working with First Nations to get evidence of their consent, there’ll be better clarity around the process that’s involved with that?
Hon. J. Osborne: How to involve First Nations in regulatory processes for projects that are going through the clean energy and major projects office will be a key focus for the office. We do have an Energy, Mines and Low Carbon Innovation Ministry reconciliation plan that provides policy direction on free, prior and informed consent, and the office will very much be guided by that policy, which is consistent with the policy of the Ministry of Indigenous Relations and Reconciliation.
Further, I’ll add that advice from the office and for statutory decision-makers will be available to assist with the expectations and the development of the projects.
M. Lee: That direction that the minister referred to, how is that direction communicated to ministry staff?
Hon. J. Osborne: A set of guidelines and a toolkit have been developed for the direction and communication of the policy. We have a strategic Indigenous affairs division. Staff from that division are there to support staff throughout the ministry, and actually across the natural resource sector ministries, in addition to support that comes from the Ministry of Attorney General.
I’d be very happy to provide the member with a copy of the guidelines and the toolkit.
M. Lee: I appreciate the minister’s kind offer. I was about to ask for something like that and, perhaps, after we’re provided that, to the member for Kootenay East and myself, there might be an opportunity for a follow-on briefing if needed.
I wanted to ask…. I just have a few questions remaining here. I had the opportunity, as well, in last year’s estimates to ask about the status of the review of the B.C. Utilities Commission Indigenous Utilities Regulation Inquiry final report. That’s dated April 30, 2020. The minister’s predecessor at that time indicated that there was some ongoing review of that, including with the First Nations Energy and Mining Council.
It’s been three years since that report was tabled. I know that we have heard from other First Nations as well as some local MLAs, including the member for Kamloops–North Thompson, about some inquiries that other nations have made about guidance, going forward in this province, in terms of abilities to move forward with Indigenous utility.
I know that there’s recognition in the report. The recommendations, for example, include that the Utilities Commission Act be amended to require the BCUC to consider UNDRIP and the economic development needs of a First Nation applying for CPCN to operate an Indigenous utility on traditional territory.
That’s an example of the kind of go-forward that would look at the partnership. Again, I recognize in terms of where the government has been over the last year, in terms of initiatives coming forward — both the clean energy and action framework, the indications in terms of the northwest transmission line, the twinning there of equity and all of that. There are different considerations afoot here, certainly.
I’d ask: what is the current status of that review and the go-forward plan in terms of dealing with the recommendations set out in that April 2020 report?
Hon. J. Osborne: Thank you for the question. That’s an important piece of work that was done. I can confirm for the member…. I was speaking earlier about the Indigenous clean energy opportunities engagement process, and I spoke of three tables or three areas of engagement topics. One included electricity. At the electricity table, under that engagement process, there is active discussion taking place right now on utility regulation and the opportunity for Indigenous utilities.
T. Shypitka: Just one quick question here before we wrap up, and maybe someone else can join in.
I just wanted to understand some capacity issues as far as home use, residential use. I did some late-night math, so maybe not always accurate. But I was trying to figure out the average kilowatt hour per day that would be used to maintain an electric vehicle.
I went to Natural Resources Canada. They said the average electric vehicle uses around 30 kilowatt hours to travel 100 miles. Resources Canada also says that the average residential driver in B.C. drives about 13,100 kilometres. I would argue that in the rural areas, but that is what it is. So about 4,000, 3,900 kilowatt hours per year. So 4,000 divided by 365 is 11 kilowatt hours per day. I don’t know if that makes sense. You can maybe help me out with that.
Then heat pumps. I went to the same resource. Actually, this is from the B.C. Hydro site. Based on 47 kilojoules of energy for home heating, a furnace efficiency rating and all these other things, COP, 47 kilojoules per year for a heat pump.
One kilojoule to 277 kilowatts equals 47 times 277 equals 13,000 kilowatt hours per year for a heat pump, which would be about 36 kilowatt hours per day. Would I be in the ballpark if I said between heat pumps and EVs, we’re looking at 47 kilowatt hours per day, on the average?
Hon. J. Osborne: Thank you, Member. I appreciate the late-night math. Earlier today I learned there’s NDP math.
With respect to the question that the member asks, he asks about averages. Averages are useful for many things, but I think I might want to ask for a follow-on question to really understand what the member might be getting at. Of course, heat pumps and electric vehicle charging are not consistent daily uses throughout the year and throughout the province. So again, averages are useful for some things, but maybe not for everything.
T. Shypitka: It’s from the B.C. Hydro site. So it’s average, right? Average is average. I’m not looking for definitive numbers. I’m not trying to drill down to an exact number but roughly ballpark.
Is it 47 kilowatts? Am I out to lunch thinking that that’s what that would take? Is it 50? Is it 20? I don’t know what the actual number is. I’m just trying to get a rough estimate on what the average is.
I’m asking on behalf of the member for Vancouver-Langara’s wife, actually. He’s got both; he has an EV and a heat pump. His wife’s on him all the time about energy use. That is why I’m asking the question. But roughly, on average, is that what we’re talking about?
Hon. J. Osborne: I think the best course here is to get you the numbers. You’ve explained a lot of math today. We’ll take that away and get you the averages.
T. Shypitka: What I’m getting at…. It is partially for the member’s wife, but the real thing I’m getting at is the residential conservation rate. It’s at 22 kilowatts per day. This would, if you had a heat pump and an EV, automatically bump you out of the first tier and put you into the second tier, with more costly energy, and the member for Vancouver-Langara’s wife would not be happy with the member for Vancouver-Langara if he was spending too much money.
The question, I guess…. Ultimately, what I’m trying to drill into is: can we get rid of the two-tiered system? We are trying to electrify the economy. We’re trying to get off of fossil fuels. We’re trying to be clean. It makes no sense, if we’re putting all these things in place to electrify, that we now are stuck into a tier that we can’t reasonably adhere to.
That’s not to mention that other areas, such as the Columbia Valley and the Columbia River-Revelstoke area, don’t have natural gas. They rely entirely on electricity. They don’t have any options to offset. Vancouver–Sea to Sky, I think, and Whistler-Pemberton area don’t have any natural gas. They’re at a disadvantage there too.
I guess, ultimately, B.C. Hydro’s plan to electrify…. Will they eliminate the two-tier system?
Hon. J. Osborne: The member just listed a number of places in British Columbia that don’t have the opportunity to use other forms of energy. I’ll tell him that my hometown is one of those as well. I understand very much the problem that he’s describing.
I want to explain and acknowledge right up front that the tiered system of electricity rates that we use here in British Columbia is designed to encourage electricity conservation. Those tiered rates have achieved that objective. But as electricity prices have increased, tiered rates have further increased the cost of electric heat, and they might discourage adoption of electric vehicles. I want to be really upfront about this.
But I also want to explain that any changes to flatten or remove the tiered structure would result in increases in bills for many B.C. Hydro customers, and some of those are our lower-income customers as well. Changes to rate structures, as the member knows, are made through public processes before the B.C. Utilities Commission. That’s to ensure that all ratepayers’ interests are considered.
To help mitigate the problem that the member has identified, B.C. Hydro has proposed an optional time-of-use rate that would reduce the cost of charging EVs overnight. Being able to program your car to charge overnight will help everybody in the long run.
J. Rustad: Thank you to the critic for giving me a few moments to ask some questions. Hopefully, I’ll be able to get these questions in before the end of day so that the Hydro folks won’t be back tomorrow.
I want to start just with some basic numbers. If you don’t have them on the tip of your tongue, Hydro can get them to me. What I’m interested in is the total amount of electricity B.C. produces; the total amount of electricity that B.C. uses, which is different from what we produce; the amount of energy that is sold; and the amount of energy that is bought from other jurisdictions.
Hon. J. Osborne: Welcome to the member. Good to see you here.
In the interests of time, I will commit to getting him all of that information.
J. Rustad: If I could, on top of that, since we’re getting the information, I’d like to get the estimate of the amount of energy that’s going to be required for heat pumps as heat pumps grow in popularity around the province, as well as the amount of electricity that would be required for EVs and electric bikes and these types of things.
Hon. J. Osborne: Yes, absolutely.
J. Rustad: The reason for asking those questions, obviously, is…. The debate went on earlier about the revenues dropping off as B.C. Hydro has less power to sell, as well as how much power it’s buying from outside, since we no longer have the need for being energy self-sufficient as a province.
I’m trying to get a sense of how much energy we’re buying, what’s in the mix, the type of energy that comes in and the projected demand, particularly as we go to these targets of 2030 and 2035 in terms of electric vehicles as well as heat pumps.
The other question I’d like around that from B.C. Hydro, if I could, is the capacity that we have in our grid, and not just capacity to get electricity to the city but within the cities and within the neighbourhoods and homes.
As we see ramped up demand for charging and ramped up demand for heat pumps, there’s only so much capacity that our current grid system has within the communities. I am just wondering where those limits are and what the plan is, if any, in terms of being able to reinforce or improve that capacity for transmission within the boundaries of cities and neighbourhoods.
Hon. J. Osborne: First I want to clarify that B.C. Hydro still has a self-sufficiency policy, and that’s to prevent it from relying on imports. Just to be clear there.
Then second, with respect to the pressures on distribution systems in cities and in communities, B.C. Hydro’s very alive to those pressures. The increase in EV adoption, people installing heat pumps, building new housing in communities, of course, is creating those pressures. B.C. Hydro is using targeted demand-side and conservation measures, like the time-of-use rate I was just speaking of, to help shift load from high-use times into lower-use times. B.C. Hydro has a big capital program for improving and building the distribution system, so the wires and the substations and the like.
With respect to the information the member is looking for, we will do our best to get that. It’s not a simple answer, but we’ll certainly work with him to try to get him the information that he needs.
J. Rustad: I want to thank the minister for committing to get that information. Obviously it’s not an easy situation. But when you get….
For example, in a cul-de-sac, if you get a number of heat pumps in there, you might end up with brownouts in that cul-de-sac, because you can’t handle the throughput. There are obviously going to be some limits and some challenges that B.C. Hydro will face as we continue to move out there, with all of the increased demands we’re trying to put on in terms of electrical output.
I want to switch, actually, to one other quick thing, just as a local issue. If we get time tomorrow, I might be able to ask some other questions in terms of follow up.
A local issue. There’s a company in Houston, and I’m not expecting you to know about this, that was working for three years with B.C. Hydro on a on a power agreement. They’re working through the company that they were working with to put in the facility they wanted. It fell through. It reached the end of their period of time with B.C. Hydro, and now B.C. Hydro is saying that power may not be available. They’re in the process of now talking with a different company. So they’re wondering: is there a process that could be done to give them a first right of refusal or some way to be able to have that power to access?
They can’t carry on with negotiations to put in some job-creation opportunities in a city that really needs it. Just wondering if there’s any way to be able to structure a first right of refusal or some sort of way for them to be able to have access to that power and be able to carry on with the negotiations to be able to create it.
I recognize that we’re at the end of the day, so I’ll give the minister a letter from them. Perhaps it’s something that the minister commit to doing as a meeting, as opposed to trying to answer it here in this process.
Hon. J. Osborne: I’d be happy to accept the letter and then follow up with the member as he suggests. So thank you for that.
Mr. Chair, I will now move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:16 p.m.