Fourth Session, 42nd Parliament (2023)

OFFICIAL REPORT
OF DEBATES

(HANSARD)

Tuesday, November 7, 2023

Afternoon Sitting

Issue No. 358

ISSN 1499-2175

The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.


CONTENTS

Routine Business

Introductions by Members

Orders of the Day

Second Reading of Bills

R. Merrifield

A. Olsen

Report and Third Reading of Bills

Second Reading of Bills

A. Olsen

A. Walker

B. Stewart

C. Oakes

J. Sturdy

R. Parmar

T. Halford

E. Sturko

Reporting of Bills

Proceedings in the Douglas Fir Room

Committee of the Whole House

G. Kyllo

Hon. A. Mercier

Proceedings in the Birch Room

Committee of the Whole House

Hon. R. Singh

M. Lee

R. Merrifield

T. Shypitka

Hon. J. Osborne

P. Milobar


TUESDAY, NOVEMBER 7, 2023

The House met at 1:32 p.m.

[Mr. Speaker in the chair.]

Routine Business

Introductions by Members

S. Chandra Herbert: I don’t think they’ve quite arrived yet, but I’m very excited to welcome to the House, to welcome to the Legislature, Ghizaal Haress. Ghizaal Haress is an accomplished legal expert from Afghanistan, now residing in Canada after being forced into exile when the Taliban took control of Afghanistan in 2021. She’s now a visiting scholar at the University of Toronto, where she engages in research and teaching.

Her previous experience, and I think this will interest everybody, includes serving as the first ombudsperson for the Islamic Republic of Afghanistan. As the first woman to ever lead a law enforcement agency in Afghanistan, her role included investigating cases of corruption involving high-ranking government officials. She also served as the parliament-confirmed commissioner for the Afghanistan independent commission on overseeing the implementation of Afghanistan’s constitution.

I look forward to meeting her shortly, and I just thank her for her work for the people of Afghanistan.

Please would everyone make her welcome.

Orders of the Day

Hon. R. Kahlon: In this chamber, I call continued second reading for Bill 44, Housing Statutes (Residential Development) Amendment Act.

In the Douglas Fir Committee Room, I call Committee of the Whole on Bill 38, International Credentials Recognition Act.

In the third House, committee room C, I call Committee of the Whole for Bill 40, School Amendment Act.

Second Reading of Bills

BILL 44 — HOUSING STATUTES
(RESIDENTIAL DEVELOPMENT)
AMENDMENT ACT, 2023

(continued)

R. Merrifield: In continuation of my comments, this isn’t about wanting density. It’s about where it goes.

[J. Tegart in the chair.]

We face a multitude of barriers stifling the birth of new homes, from development cost charges in Metro Vancouver that threaten to hoist an additional $25,000 per unit onto the price tag of a new home to the frustrating entanglements of regulations that deter small landlords from offering their properties for rent. We cannot ignore the stringent step code for the new buildings that, while aimed at sustainability, inadvertently pile up to about $50,000 to the cost of each new home or unit.

[1:35 p.m.]

Nor can we overlook the development approvals process review that highlights severe backlogs, a startling lack of authority for crucial agreements and a burdensome referral process to the Ministries of — I don’t know — Transportation, Environment, Agriculture, Forests, and water boards. Each one of those approvals can take a year, two years, three years.

Let’s consider the individuals, the human faces behind these initiatives. Well, there’s Teresa Chhina, a housing outreach worker who, in a cruel twist of irony, finds herself without a home. There’s Batuhan Özer, caught in a dystopian struggle akin to the Hunger Games, just to glimpse a single apartment. Then there’s Paula Hudson-Lunn, 71 years old, scouring for housing in Nelson, a city with a rental vacancy rate hovering at a dismal 0.6 percent.

The most harrowing statistic of all — this is pretty interesting: our birth rates. It’s one of the major driving forces behind our immigration policies. Those are plunging to a 15-year low. The dream of parenthood is now shadowed by the nightmarish costs of living in our province, evidenced by the story of Michelle Cyca, a new mother compelled to move far from her support system.

We’re doing this to them. This is what the NDP policies are doing. It’s about the cost of living. It’s about the cost of housing. It’s about how we are asking people to live. It’s about the lottery to get the $10-a-day child care spot or even a spot at all. This is what we are doing to our younger generation. They’re choosing not to have kids.

Recently I was on a phone call. My husband overheard just the last part of my conversation, and he asked: “What were those numbers that you were talking about?” I said: “Oh, that’s the cost of child care right now.” He looked at me, his eyes actually welled up with tears, and he said to me: “Really? Really? Our kids are never going to be able to have kids. How could they afford even a two-bedroom condo and the price of child care?” But this new bill is going to solve all of that.

Well, I decided to do some math on it. A lot that is under 280 square metres is going to yield three units, and over will yield four. So let’s do the math on one that will yield four units: 280 square metres is 3,000 square feet. We’ll be able to, with setbacks, etc., probably occupy 65 percent of the lot, which is 1,950 square feet. Then you take 87 percent of that, which is the optimal efficiency of a building with internal penetration. Now we’re down to 1,696 square feet.

Then we multiply that by three stories. Let’s hope we can go three stories next to all those single-family homes. That’s 5,089.5 square feet. Then, as the minister has stated, each of those will have a parking stall. So we’ll take off the parking for that, divide it by the four units, and we have left 872 square feet per unit. That’s what we’re doing.

I actually am not that much of an advocate of single-family housing, but let me tell you why single-family housing exists. It is one of the most flexible zonings, it is the fastest to build, and it is the least cost per square foot to build. So we are taking out of the mix one of the products that is absolutely the least expensive per square foot to build, and we are now putting one of the most expensive in its place.

Coupled with the fact that these homes are not properly serviced with the schools, parks, transit, amenities, etc., yeah, I don’t blame the next generation. Why would you want to have children at all?

Homelessness, too, paints a grim picture of this government’s tenure: a 34 percent increase since 2017. These are not just numbers. This is a searing indictment of policy failures. These are not just street entrenched. These are seniors that are losing their homes and turning to the streets.

I recently had a phone call from one of the shelters who said: “You have to find the senior citizens housing. They can’t stay at the shelter. It’s not safe for them.” But they had nowhere else to go.

Turning to the specifics of Bill 44, what we see is a glaring void, an informational vacuum with no policy manual in sight until this legislation is etched into law. This isn’t just putting the cart before a horse. There is no horse.

[1:40 p.m.]

What of the practical details: setbacks, height restrictions, parking and lot coverage? They remain as elusive as the affordable homes we are promised. This bill, absent of detail, is a hollow shell, emblematic of a government all too comfortable with grandstanding but devoid of substance — a government that, when the Premier speaks candidly, confesses to a lineup of unsolved crises.

The Premier confessed as much at a gathering of NDP insiders at the Broadbent Institute this September: “We’re not going to solve the housing crisis, the opioid crisis, the health care challenges. We’re not going to solve all these issues in Columbia between now and the next election.” After seven years, what will be eight years of this government, two terms of a majority, they’d better be able to say that they’ve solved some of those crises.

And what of implementation? Large portions of this legislation won’t see the light of day until the next term, while our citizens yearn for relief now. The NDP would have them stalled in the waiting room of bureaucracy. What’s going to happen between now and when the regu­lations come in? City councils won’t know what to approve. Planning staff won’t know what is actually allowed.

We have to remember that housing isn’t simply a matter of numbers or construction. It’s about communities. We need parks, schools, transit, services to occupy this growth. Otherwise, we’re not building homes; we’re stacking boxes. This government speaks of suburban densification yet it remains silent on the critical infrastructure these communities depend on.

We are here for density. We love density. B.C. United thinks density is great, as long as it is smart density — density in the right areas, planned density, density where it belongs. High-density construction should be prioritized in the areas where it’s most crucial, steering clear of the inefficient spread of urban sprawl.

Home ownership should be attainable, with residences conveniently situated near transit systems, allowing for a seamless journey to work or educational institutions. These are precisely the types of housing developments we need to promote.

Our blueprint is coming, and it’s going to be way better. It’s going to actually fix housing. I’m so excited about it; I can hardly speak. We’re committed to avoiding the pitfalls of states like California, unlike this NDP government with this bill, where uncontrolled sprawl has led to chronic congestion, turning commutes into multi-hour ordeals.

This proposed legislation’s, Bill 44, changes aim to escalate average density in suburban localities. In Kelowna, suburban sprawl and increased density are discouraged in the OCP. Quadrupling the density of the suburban neighbourhoods could cripple our infrastructure.

Let’s talk about schools for just a second. The schools in my riding are all above capacity. Our high school has so many portables and is so loaded, we need, desperately, another high school. What happens if every, single, single-family lot becomes four? What happens to all of those elementary schools and middle schools and high schools? This plan conspicuously lacks the necessary blueprint to underpin such extensive housing with adequate infrastructure.

The NDP appears to be at a loss regarding the financing of these imperative amenities. Without a comprehensive plan to diminish taxes, cut down on unnecessary bureaucracy and reduce fees, the dream of affordable housing remains elusive. Because as our leader of B.C. United says, if you want to make housing more affordable, make it less expensive.

The company that I founded builds housing in four provinces. B.C. is, far and away, the most expensive place to build housing.

[1:45 p.m.]

Not because a 2-by-4 costs any more or less in Winnipeg, in Regina or in Edmonton but because of all the bureaucracy, red tape, requirements, restrictions, guide­lines, DCCs, cost charges, amenity fees, etc.

Provincial intervention is necessary. The current administration, though, is very misguided. The NDP seem to be stuck in a loop of regurgitating previous announcements that have spiraled beyond their initial budget projections. They don’t know how to build — not on budget, not on time. So why should we believe that they can actually fix housing?

Well, you’re right. The Premier is right. They can’t fix housing. And the people of British Columbia are growing weary of their narrative, continually witnessing the reiteration of old promises without any substantial increase in affordable housing stock to show for these declarations. Broken promises.

Where do we go from here? How do we keep the dream of housing ownership alive? How do we keep the dream of affordable housing alive? How do we keep the dream of attainable housing alive?

Well, this NDP looks backwards. But the B.C. United caucus? We’re poised to look forward. We will be presenting a comprehensive plan, a blueprint for a future where homes are abundant, where they’re a fit for every family, every senior, every individual, regardless of income — a plan that sees beyond the horizon to a province where everyone can afford to dream, to build and to live.

We’re not going to stand idly by as the hope of affordable housing fades into the twilight. Why? Because British Columbians deserve better. They deserve certainty, and above all, they deserve a home. That’s our promise, a pledge not built on the shifting sands of rhetoric but on the solid ground of action and results. This is the commitment of the B.C. caucus to you, British Columbia.

I look forward to committee stage on this bill.

A. Olsen: I rise to speak to Bill 44, the Housing Statutes (Residential Development) Amendment Act, 2023. I’m the designated speaker for the B.C. Green caucus.

It’s important that I frame my comments today in the experience I’ve had over the past 15 years as an elected representative of my community.

First, I’m still the kid who grew up in W̱JOȽEȽP, Tsartlip Reserve, the young man that the people of Central Saanich elected as their district councillor and now the MLA for Saanich North and the Islands.

This speech ranges across those many years, the thousands of hours of coffee meetings, community meetings, duly convened meetings, Association of Vancouver Island and Coastal Communities conventions, Union of B.C. Municipalities conventions. This speech is the result of the cumulative work of those 15 years as an elected official in this socioeconomic system, this political system, this bureaucratic system.

This speech incorporates the conversations about form and character of neighbourhoods, the imbalance the settlement and land use patterns of past decades has created, patterns that largely excluded housing forms for people who couldn’t afford a mortgage, people who can’t afford to participate in the market housing system — all our friends, family and neighbours, who contribute to the fabric of our society, the front-line health care workers, construction workers, trades, seniors and our children.

I know my colleagues at the local government council tables across the province have been the easy target of senior governments, who need to look at themselves for propping up systems that have produced the exact results that we face today.

It is troubling that we are so intoxicated with this belief that the socioeconomic systems that I’m going to talk about in this speech must be perfect, must be just one or two tweaks away from working as we envision them. If only we do a little bit more of what we are doing, without having to face the pain of immersing ourselves in the machinery, we’ll get different results.

[1:50 p.m.]

I think the summary, for those that don’t want to hang around here for the next two hours, is we’re getting exactly the results of the system we’ve created and nurtured.

My experience at these tables has me growing increasingly restless, feeling a desperation to speak to the housing affordability crisis that is a direct result of that economic system — a real estate market, a full, free market and the glorification of a toxic individualism that has been elevated above the village, the community, that drives much of the North American beliefs about our economy and how, for the sake of this specific speech, housing product is developed and distributed.

I’ve decided to prepare these remarks for this speech because I have quite a bit to say on this topic, and it is critical that they be organized a little.

For example, I don’t think that it’s helpful for me to stand in here and use strong language like I did last week, “Decommodify the housing market,” without providing context as to what the internal philosopher has been ruminating on. I did that in my Bill 35 speech, and I regret that I ventured into the area without providing some context and some detail.

What I’m about to say here will likely be challenging for many to hear. Human civilization is facing existential threats. Climate change, extreme weather, soil-scorching wildfires, heat domes and atmospheric rivers are costing society infinite billions of dollars and countless lives — many who died in isolation, suffocated in the heat of their ill-equipped apartment — thousands whose lives were washed away when the river broke the 100-year-old dike that we knew, a decade ago, needed to be upgraded, that the local government prioritized but that didn’t deliver enough votes for the provincial and federal governments to pay attention to.

Whether we are prepared to admit it or not, the experiment of the last 150 years attempts to answer the underlying question: how much of the abundance of the earth can we take before it breaks? Another question: how long do you think it will take for humans to break it?

The collective connection and reverence our species had with the biodiverse ecosystems we lived in has been broken. The village has been abandoned, and each individual unleashed to live their best lives. The village has been replaced with the strip mall, suburban cookie-cutter, stick-frame neighbourhoods that were never sustainable — the gluttonous fossilization of the land, urban sprawls, pipes and asphalt — filling the market with cheap, affordable housing for everyone.

In Victoria, we covered all the flat land quickly. If it wasn’t for the genetic remnant that the agricultural land reserve emerged from, all that land would be covered already too — so urban sprawls across the mountains. It creeps westward, deforesting and pulverizing mountains to push more pipe and asphalt, to fill more markets with more cheap, affordable housing for everyone, plus quite a bit of market appreciation and inflation.

The strawberry fields and salmon creeks that we built on in the 1970s and ’80s in Central Saanich, those formerly affordable houses that we’re living in today…. Well, they’re now 50 years old and each $1 million.

The anthropogenic ruin of earth’s critical, functioning ecosystems — the wilful destruction of the machinery that creates life-sustaining oxygen and clean water — is driven by pride, elevating individual pursuits as the highest form of expression. That was really unlocked when our species became enlightened just a few hundred years ago.

[1:55 p.m.]

Now we see the result: bureaucratized care replacing genuine human connection, corporatized human suffering hunched over in a doorway or bus stop by a crippling chemical concoction that is indiscriminately reaping a half-dozen souls in our province every day. Here’s to chasing the North American dream.

In about a century, we’ve smashed our spaceship, ransacked the treasury and turned the controls over to the most reckless narcissists. Unsurprisingly, we face a chaotic climate, deteriorating housing security and food security, and public insecurity. The public health care system is in perpetual chaos, and the public education system is chronically underfunded.

We’ve known for decades that our public infrastructure is decaying, with scarce resources to properly maintain and upgrade our culverts, roads, bridges, dikes, dams, drinking water and wastewater systems. There’s no credible plan to pay for the infrastructure to support the hundreds of thousands of new people predicted to move into villages, towns and cities in British Columbia each year.

The philosophy and the systems that my great-grandparents’ generation designed and built are not serving us as they once did. We need to have a real conversation, not politicians talking with their mouths full of Okanagan apples, skirting the issue because they lack the courage to actually address what’s happening, because it’s uncomfortable for our collective constituents to hear.

It’s not helpful when members of this chamber forget our history, or wilfully try to rewrite parts of it, when we forget that our ancestors who sat in these seats signed agreements to share this land in a way that they never intended to share it.

This was long before there were subdivision lines drawn on the land surrounding these precincts, long before land use zones defined the small chunk of land inhabited by a settler who was beaten and starved out of their own homeland. The names of those colonial men are memorialized on the streets: Douglas and Blanshard. Only the despicable Trutch didn’t survive.

It’s not helpful when politicians leverage these complex issues for political gain, arguing against development cost charges, like I believe the Leader of the Official Opposition did recently, without clearly identifying how local governments are supposed to pay for all this new supporting infrastructure.

It’s not just the official opposition here in B.C. or in Ottawa whose silky slogans, sound bites and aviator sunshades are so convincing, though. Our own government is responsible for leveraging the suffering for their benefit as well.

Remember when the government was going to make life affordable again? That was Ambassador Horgan’s promise. When his consecutive $100 handouts failed to make a big enough dent on the grocery bill, they stopped talking about making life more affordable again. It’s gone from the playbook, gone from the message box.

As you might sense, this speech is going to get a little gritty. I’m going to name some stuff, because even if the consensus agrees that the issues I raise are not as dramatic as I argue them to be, I will have done my job as a member of the opposition in this House, raising the bitter and uncomfortable truths.

We’ve known for thousands of years that food and shelter are basic human needs, and the socioeconomic systems that produce and distribute food and shelter are the most rudimentary connective tissues holding human societies together. No matter where you come from on earth, when your ancestors secured food production and developed a reliable housing system that supported their way of life, human ingenuity was given space to flourish. Our creativity and innovation soared.

With the energy from full bellies and a sturdy roof over our head, we were able to focus the creativity and innovation of incredible human minds and bodies. Some humans dedicate their energy to intellectual pursuits: inquiring, processing and describing their understanding through theoretical models. Others devote their energy to practical pursuits: growing and refining understanding and expertise through hands-on craftship that comes with repetition and experience.

[2:00 p.m.]

The technologies that our societies benefit from today are possible because our ancestors secured food and shelter. They didn’t work or live alone. Our ancestors were in­dividuals within a collective. Each had a role in the survival of the group.

We produced food security together. We shared re­sponsibility for providing shelter together. We raised and protected our young ones together. And we carried within our identities the law that ensured the collective or the public safety and security, with the foundational understanding of how fundamental food and shelter security is to our individual and collective survival, the recognition that flourishing is not possible without it. It is therefore critically important that our modern society develop systems grounded in this core belief that access to food and shelter should be a basic human right.

The Straits Salish people, where I come from, had an interesting system that we could learn from. If you were hungry, you would be fed. Families would welcome you in and feed you with no expectation of payment. Food to satiate hunger was available for friend and foe alike.

But food also had value. You could exchange within your families as a way of balancing your immediate group. And for those who produced a lot of food, you could distribute it regionally for other much-needed products, and the excess could be shared with others, turning it into a capital of sorts by converting it into honour for themselves, their name and their family to be leveraged as needed later.

This is how a compassionate society looks after its peo­ple, by developing a socioeconomic system where food is free but not valueless. Today food for hungry people is not immediately available, even though our planet has never had access to so much food, nor has it ever created so much food waste.

With respect to housing security in North America, the real estate market is responsible for creating unimaginable wealth for those lucky enough to own private property. It is also responsible for producing affordable housing for everybody who needs it. An inherent conflict of interest, the desire to generate undesirable wealth, fuels decisions made in the real estate market. What did we think was going to happen when housing and food security as human rights were put directly in the way of a capitalist private property owner or business owner and their un­limited wealth?

When our legislative ancestors needed a silver bullet to recover from the Great Depression, they created a system to produce individual wealth for property and homeowners. It supercharged continental economic growth with more investment in real estate and jobs in construction. Across Turtle Island, there was a tremendous extraction of critical natural resources and the expansion of concrete, steel and glass urban infrastructure.

For the people born in the fortunate generations, times have been good. If you were born a boomer or a Gen X’er, you are extremely lucky. It wasn’t always perfect. Skyrocketing interest rates in the 1980s wiped out people financially. However, for those generations, it was a golden time. Those generations are the beneficiaries of a remarkable increase in the value of their real estate investments and their personal wealth.

I remember my grandfather lecturing his grandchildren to buy a home. Everyone needed their own home. Those who followed his advice were elevated and used as ex­amples for the rest of us.

From those days in the 1930s, we have entrenched in our political and social culture a trope that was useful in getting everyone to have the same North American dream of property ownership. Every individual needs their own single-family home in a cul-de-sac with the green lawn, a white picket fence and a North American car in the driveway. This was assured because of a cultural device that held up property owners in high esteem.

As we heard in here yesterday — speaker after speaker from the United Party innocently repeating the social construct about renters, the character foil to the obedient individual homeowner in the storyline. Bluntly, renters are a blight in the neighbourhood, not to be trusted.

[2:05 p.m.]

There is a much older proverb. Scholars believe it originates from Africa. We have probably uttered it ourselves from time to time: “It takes a village to raise a child.” It comes from our past, when we valued each other, when we relied on each other, before we broke the complex interconnectedness of all the things, before we sanctified independence, before the enlightened thinkers, the economic philosophers of some 300 or 400 years ago, began defining the individual as the sacred unit.

As I’ve shared about my W̱SÁNEĆ culture, we lived and worked together in an extended family. The village shared the responsibility to house, feed and protect each other. I have no romanticism about this. Despite the accurate anthropological descriptions of a much more egalitarian society that existed pre-contact here in the Salish Sea, it was far from perfect. We were and are human, after all. We warred and engaged in selfish pursuits. However, it was the exception, not the rule, like it is today.

Now every child in the family needs to achieve the North American homeownership dream. The economic system depends on the majority buying into this story. It’s more than a story now, though. Deeply embedded in the fabric of our socioeconomic systems in North America, housing construction, real estate value and mortgage lending are economic indicators that are the engine of North American global dominance. So we are reminded. Families living together — that’s uncivilized. It’s what humans did in the darker ages of human development, before we were enlightened and empowered with a sense of toxic individualism.

We confront the deeply established stigma against inter­generational living. For example, the middle-aged man living in his parents’ basement is mocked as a sign of incompetent parenting, a failure to fully realize an individual’s potential and even go so far in our culture as them being an early warning sign of a threat or danger in the community.

Of course, this isn’t true, but in order for us to have as many people as possible participating in the housing market, these cultural narratives shaped our behaviour, our expectations, our actions.

If we dig deeper into the impact of these little mantras that we tell ourselves, the tentacles of toxic individualism slide into the cracks and undermine the social and cultural structures that have appeared solid for decades. As the children’s pursuit to live their best life forces them to move further and further away from the parents, estranging grandchildren and grandparents, and as the aunties and uncles, the cousin siblings, the niece and nephew relationships grew more distant for the first time in millennia, the family unit was shattered.

The result is a century-old experiment that we are failing to critically analyze and learn from because we’re hoisted by our own petard. We’ve been so convinced that the sacred unit is the individual, when for all but a century of human existence, the sacred unit has been the family, and for good reason.

This government celebrates the billions of dollars that they’re pouring into a child care program. This government also defends the billions of dollars spent on elder care, long-term facilities where our seniors can spend the final days of their lives living away from their loved ones with other old people.

In order not to disrupt the economic systems that depend on this toxic individualism I’m talking about, parents are forced to farm the development of our children out to whoever we can arrange to do it — often not the parents’ first or second choice. It’s often a desperate dash to find anyone who can do it so there can be a second salary to cover the shareholder expectations set up by the exuberant CEO’s promise of infinitely increasing corporate profits.

We are warehousing the care of our elders to facilities run by foreign for-profit enterprises more interested in pumping their annual returns to their shareholders than delivering the contracted care they committed to.

[2:10 p.m.]

Our elders are left lonely, medicated and forgotten, many of them, because of a heartless economic system that forces the offspring to work endlessly to placate envy, keeping up with the Joneses, yet another of the North American references to a cultural notion that is used to keep individuals moving in a prescribed direction.

What would our ancestors say about us farming out the raising of our children and the warehousing of our elders? Before having our children, Emily and I never raised children. We had no idea what we were doing. But I know two people who did, and Emily knows two people who did. Those four people know eight people who raised children before them.

Whenever my children are having a hard time and I don’t have the answers, I bring in the Elders. Not only do they share the wisdom of years’ experience, but they also bring a calming warmth, a strength that is only accumulated through time.

And it’s not a one-way street. When my parents are having a tough time, when they’re tired and lonely, when their body hurts and they feel the wear of decades on their bones and muscles — why, bring in the children. Not only do they have the innocence of youth, but they also bring a bright energy, an endless supply of joyful fuel that is only accessible by the unjaded, unblemished spirit of a child.

It’s not just the vertical relationships we’ve broken, but we’ve detached the horizontal ones as well. Where I come from, there’s a mysticism about big auntie energy and not just in W̱SÁNEĆ territory. The magic of big auntie energy is embraced by my cousins and nations clear across Turtle Island and in Indigenous communities across the earth.

Big auntie energy ain’t no joke. They don’t even have to be your auntie to deliver big auntie energy. They are people in the generation ahead of you that you can rely on when your own parents are not reliable. When our children need to escape their intense and unrelenting parents, they go over to their aunties’ house. Joanie and Heather see the child needs support, put aside whatever they’re doing and just loves the child.

I feel the same responsibility to show love for my nieces and nephews, to support them in their development, to nurture them into adulthood. The emotion that I’m feeling today is the same emotion that I felt when I wrote this. I’m overwhelmed by the beauty of the social strength that exists in these relationships.

I yearn for a society that is founded on this compassionate interconnectedness, where we are connected to those ahead of us and those behind us, where we are connected to those beside us — multidimensional familial community connections.

The philosophy of toxic individualism has broken that. It has feasted on what my maternal grandfather called human nature. Grandda was a deeply religious man, and we all knew what he meant when he would go off about human nature and all the traits that may help us achieve our best selves but may not result in the betterment or the advancement of the group, however defined. And they’re named.

This toxic individualism has stolen our belonging. Who are you? Where do you come from? Not just the passport you carry but who are you? Who are the people that you come from? What is your story?

With increased globalization and the fragmentation of the village around the child, including the land question in Canada and North America, a cultural wave of 21st-century settlerism has emerged. What are the social implications of losing belonging? I think we’re seeing it and feeling it in our society today. We have a different relationship to the place we are if we do not feel like we belong there.

ZIȻOT, my paternal grandmother, gave me this teaching. This visit with her was a pivot point in my life. I’ve talked about it. I was on a dark path. Looking up from her knitting needles, ZIȻOT gave me a job. She talked about all the people, the W̱ENITEM, people who are not from here, that have moved into W̱SÁNEĆ. She talked about how that was the future of our territory.

She encouraged me to share a message to all the people who have come to W̱SÁNEĆ, who’ve set down roots going back to the first settlers, who’ve taken refuge from an atrocity in their own territory, or people who have just retired here from Alberta or Ontario.

[2:15 p.m.]

ZIȻOT wanted me to encourage you to love this place like you belong here.

XÁLS, the transformer creator of the W̱SÁNEĆ, created a worldview that honours multidimensional connections, relationships between the animate and the inanimate, the smallest creature to the largest mountain. And with each transformation, QEN,T TŦEN SĆÁLEĆE — you look after your relatives.

In a law intrinsic in each and every relationship, from all angles, a responsibility for each to look after their relatives, an agreement that your relatives share the same responsibility to look after you — the principle that is at the centre of the culture that makes food both freely accessible and the reason why you can accumulate great wealth and prestige.

If you are in W̱SÁNEĆ, then belong here in W̱SÁ­NEĆ. Fight for it. Be good stewards of it, as if it’s the place you belong. That’s the instruction of my grandmother ZIȻOT.

I have got to thinking about the impact of settlerism, as I will call it here. Clumsily, I’ll define it as a guilt-driven unwillingness to belong to the place you are, resulting in good ally-ship but void of the purpose and responsibility to actually submerge yourself into the social fabric of the community that has accepted you.

I’ll just leave a few questions here. What is the long-term implication of self-imposed settlerism rather than receiving the permission to belong? How are the current trends negatively affecting our ability to effectively build resilient communities?

Most of my grandfather’s grandchildren followed his advice, except for his status Indian grandchildren. More on that in the section to come. But honestly, though, has nobody ever stopped to ask what might happen if we leave food and housing security to markets that never account for the natural limitations of the planet?

At the core of our real estate market is this implicit expectation of infinite growth. But how is that possible? Most boomer and Gen X’ers have the future well-being fully invested in their real estate, just as successive governments — the people in these chambers — encouraged them to do. They did exactly what they were asked to do, and there is a generational assumption that the value of that investment is going to go up.

In the last 30 years, we have been accelerating towards a socioeconomic collapse. The very housing system we deliberately created, supported by the Canada Mortgage and Housing Corp., the system that was constructed to create immense wealth, paradoxically, is now creating poverty.

As fewer and fewer British Columbians are able to access stable, reliable, affordable housing in a community of their choice, or even the community of their birth, they’re forced to make decisions that benefit their individual situation in the short term but may be detrimental to a healthy, balanced society in the long term.

People suffering from housing insecurity, people that can’t afford their food, have to get a second or third job to pay the bills. They have little time to volunteer with their local community group. They’re less likely to be able to go to school and improve intellectually. They might choose to not have children.

People who are suffering from insecure food and shelter are more likely to suffer from deteriorating mental and physical health, constantly stressed out in search of a place to sleep, a bit of food to satiate hunger. We can see what the deterioration leads to already taking shape on the streets of our privileged and wealthy communities.

As people fight to secure their food and shelter, they become desperate. Perhaps their medication to dull the pain of some of their deeply buried trauma or burden of unmet cultural expectations becomes an addiction, and their numbers increase, overwhelming the social safety net. It becomes frayed, and more frequently people slip through. Public security erodes.

[2:20 p.m.]

It used to just be in the Downtown Eastside, in Vancouver. The numbers of vulnerable people marginalized by a socioeconomic system that cannot deliver the promise of infinite growth are flooding to towns and villages across British Columbia, seeking some supper and a safe place to sleep. Our housing system that produced generational wealth for some is now creating poverty.

It’s because the people in this chamber are unwilling to address the reality that the socioeconomic system that is determining production and distribution of basic needs like food and shelter is not designed to ensure everybody has food and shelter.

Individual wealth creation has become more important than the health and well-being of our communities, yet recent polling results are clear. The top priorities of the public are the cost of living and public safety and security.

Are we supposed to collectively pretend that the two are not inextricably linked so as to not impede on all the potential locked away in individual pursuits? This government is not prepared or well enough equipped to transform our socioeconomic system.

At what point does culture regulate this, evolving a social stigma against someone who squeezes every ounce of value out of their real estate? When will we elevate the person who sells for below current market rate, choosing to sacrifice a little for the good of the community?

In all the cataloguing of the issues I’m doing here today, I cannot skip an opportunity to drag our public health care system into this speech. The deterioration of our health care system should be of no surprise to anyone. It was never sustainable, and rather than allowing our leaders to dig into the system and fix it, we enshrined it and worshipped it. Those who designed it were pure in spirit.

Nevertheless, the politically acceptable action was to spend more money on a tool designed to serve a different purpose. The system they designed was the best one they could negotiate at the time, not the best possible design.

If we want to see further proof that our economic system is suffering multifunction failure, housing and food insecurity are symptoms to start with. Look next at the health care system that is designed to treat sickness, not promote wellness.

Poorly oriented, the health care system is left to carry the burden as best it can — pressure building on the social determinants of health overwhelming the physical infrastructure and human resource capacity that cannot keep up. Doctors and nurses come to my office exasperated because they are seeing patients with late-stage disease because of a lack of intervention by effective primary care. Remember Laozi’s proverb: “Treat a problem while it is still small.”

Acute care facilities, hospital emergency departments are understaffed and temporarily closing. The downstream impact of addressing sickness: hospital beds filled with people with hypertension and other conditions better treated in community because they have nowhere else to go.

The Health Minister is all too happy to celebrate spending $8.4 billion to get worse results and to maintain a health care system oriented to sickness when it should be focused on promoting wellness. Physical health is declining. Mental health is deteriorating. Depression and anxiety disorders drive marginalized and vulnerable people onto the streets. Self-medicated addiction, mental illness, brain injuries are all supercharged by poverty and a lack of secure shelter and food.

All things are connected, yet 13,000 individuals, each with a critical role in the fabric of our society, have perished from toxic, illicit drugs because of a cold socioeconomic system that blames them for failing to succeed better.

We are seeing the poverty that our socioeconomic systems are producing. We know there is a widening gap between those fortunate enough to be well leveraged in their investments, those who won the real estate lottery and those who weren’t able to pull their socks up high enough.

[2:25 p.m.]

In Canada, we know what happens once housing creates and perpetuates poverty. It’s not theoretical in Canada. I witnessed this firsthand growing up. If you grew up here, then you did too. You might not have seen it, but it does not mean that it has not been there in plain sight.

Our government has been experimenting with housing poverty for more than a century. Canada has been nurturing poverty through inadequate housing on Indian reserves delivered by the Department of Indian Affairs through the powers they gave themselves in the Indian Act to provide cover for the other system they created to generate unimaginable wealth on unsurrendered territories.

[Mr. Speaker in the chair.]

Mr. Speaker: Thank you, Member. Are you finished, Member? Reserve your place. We will adjourn the debate, then we’ll get back to it right after we get a report from the committee.

A. Olsen: I’ll reserve my place and adjourn the debate.

A. Olsen moved adjournment of debate.

Motion approved.

Report and
Third Reading of Bills

BILL 40 — SCHOOL AMENDMENT ACT, 2023

Bill 40, School Amendment Act, 2023, reported complete without amendment, read a third time and passed.

Hon. D. Coulter: I call Committee of the Whole on Bill 39, Zero-Emission Vehicles Amendment Act, 2023 in Section C, the Birch Room.

I call continued debate on second reading of Bill 44, Housing Statutes (Residential Development) Amendment Act, 2023.

Second Reading of Bills

BILL 44 — HOUSING STATUTES
(RESIDENTIAL DEVELOPMENT)
AMENDMENT ACT, 2023

(continued)

A. Olsen: That is the despicable reality of our country. It’s probably why, in recent years, we have seen Canada’s international reputation tarnish.

[J. Tegart in the chair.]

Despite Pierre’s assertion, I argue that the diminishment of our role in geopolitical affairs has less to do with our Prime Minister and more to do with the exposure of our history and about the way we handle our internal affairs.

That’s one of the reasons why I find the debate that’s happening politically, federally, right now so disingenuous. Two systems, side by side, in communities across the country. It’s our blemish. Where the federal government created personal financing mechanisms, initiatives to spur construction and building standards on the municipal side of the road, none of those policies were afforded Indians on the Indian reserve side of the road.

We’ve seen the awful outcomes of this terrible experiment. Historically, when societies did see it, it was fashionable to complain that the Indigenous people couldn’t look after themselves or do better with all the government handouts. “Look at how they take care of their houses,” they’d say. “Look at all their missing and murdered women,” they’d say. “Look at all their children in the child welfare system,” they’d say. Each is the result of a symmetrical assault on Indigenous people to cover for the lie.

The reality is Indigenous people have experienced more than a century of a totally preventable systemic housing fiasco, the demoralizing impacts and effects of a system that continues to plague us to this day. We struggle every day to make the best with what we’ve got.

Every day Canadians have failed to see the deplorable housing conditions on reserves and have explained them away as a poverty issue alone, as a First Nations issue. Both are blamed for the housing. But as the powerful work my mother, Sylvia Olsen, did in her doctoral studies, digging deep into the history of our heart-wrenching political and bureaucratic housing history in this country…. We’ve been wrong. Poor people don’t make bad housing. First Nations people don’t make bad housing. The inexcusable housing conditions in First Nations is a housing issue.

[2:30 p.m.]

Ineffective housing systems, bad housing policy creates housing insecurity, inadequacy and unaffordability, which in turn makes poor and demoralized people. Canadians, British Columbians, would do well to take the current national housing affordability crisis seriously. When housing starts making poverty, things get out of hand quickly.

[S. Chandra Herbert in the chair.]

Deputy Speaker: Member, may I seek leave to make an introduction? Thank you.

Introductions by Members

Deputy Speaker: I just wanted to welcome Ghizaal Haress, Afghanistan’s first ombudsperson, to the House. She did incredible work in the country of Afghanistan. I was honoured to be able to meet with her and for her to share her work with us and in this chamber. Please, would everyone make her welcome.

I really appreciate that, Member. Thank you.

Debate Continued

A. Olsen: We’ve seen what happens in our society when a gap forms and widens on the socioeconomic strata between impoverished people and the wealthy. We know it is better to have a more diversified strata with a clear path of mobility for people. With a greater distance between the layers, there’s less mobility, more capital for those that already have, more demoralization for those that don’t. That is the toxic stew simmering in our province today.

When my parents moved back to Tsartlip, the housing policy of the day meant that my parents would have to have 100 percent of the money needed to build or purchase a house. Who else in our society in the early 1970s needed 100 percent of the money to create their forever home for their family?

My dad made too much money to get support to build a house on reserve, and there were no mortgages for Indians on Indian reserves at the time, because all that land was owned by the minister that was responsible for us. There were no building standards for what was built. Housing was distinctly not a commodity like it was on the other side of the road.

The House they brought me home to in 1976 was a double-wide trailer that was the result of a loan from my maternal great-grandfather. That’s it. Indians either had to be impoverished, independently wealthy or have a well-enough-to-do auntie or uncle to get a house in their community.

As my mother, Sylvia Olsen, asserts in her dissertation, housing on Indian reserves in Canada was designed to create poverty. The federal government deliberately delivered one failed housing policy after another. Now, why would they do that? I’ve alluded to it earlier. It was to cover for the lie. Politicians in British Columbia and Canada regularly trumpet, on behalf of the public, rule of law rhetoric, at the same time as promoting systems that grow tremendous wealth on vast tracts of land that were never ceded or surrendered.

Indeed, when ministers of this government, members from all parts of this chamber, acknowledge the Indigenous territories that we live and work in, the honour that we feel when we signal our virtue with words and when the Housing Minister tables legislation like Bill 44, perpetuating the zoning and land use system that dispossessed Indigenous peoples from their lands illegally, subdividing and zoning the lands and distributing them to settlers, who were previously starved and violently displaced from their own homelands, you can imagine that there’s a sour taste.

I’ve raised this issue with the Minister of Indigenous Relations and Reconciliation. I reminded him that the resource of our territory is no longer fibre from trees or nutrients from fish, minerals from the earth or even much food from the land. The resource in W̱SÁNEĆ is real estate.

[2:35 p.m.]

The land he lives on, the lands that surround these legislative precincts, is unceded and unsurrendered. That is the central lie I keep referring to. The promise governments make to all the individuals is made with land of questionable ownership by our own laws.

In 1975, a packet of documents was published, curiously titled Papers Connected With the Indian Land Question. Do you think the question was answered? Did our legislative ancestors do us a favour and answer the question they were asking in 1875? Even then, even in 1875, it was a land question. It’s a sleazy bit of history, really. You can imagine someone holding the packet of documents, handing it over, kind of one eye closed and a little bit of hesitation on their breath: “Well, you know, it’s not exactly legal, but it’s good enough. We got what we wanted, right?”

James Douglas was a Hudson’s Bay Co. man, HBC chief factor. First, Douglas was a corporate man; then he was governor. Some folks have bristled at my characterization of this province as a resource colony — when I draw comparisons to the level of corporate reach into our legislative and political affairs, when I complain that our current government is being represented on political panels by corporate lobbyists, when I complain about how the government has been captured by industry. It has, because that’s how it was set up.

In 1849, Britain gave title of Vancouver Island to Hudson’s Bay Co. for a decade. There was a condition: promote colonization of the territories. It’s sleazy, because James Douglas knew, when he was standing on PKOLS with my ancestors, that all he needed to do was buy himself enough time. With the W̱SÁNEĆ increasingly anxious about en­croaching settlement, ironically irritated by tree-cutting and by the murder of one of our messengers, Douglas needed time. The settlers were on their way, and in the next 30 years, they would flood into this region.

When Douglas made the agreement with my ancestors to share the land — to share the land — it gave him the space that he needed to fulfil the requirements of the corporate agreement he had with Britain. Former Premier, now Ambassador, Horgan spoke clearly of his belief in Indigenous sovereignty. He talked about rights and title confidently, like he knew what he was talking about.

I reminded the minister that one way sovereign people recognize claim to land is through the right to tax. Since it was never surrendered, I asked the minister why the W̱SÁNEĆ would not be able to recover some of their sovereignty through the collection of revenue from the trade of the most valuable resource in our territory: real estate. Why can’t the W̱SÁNEĆ collect a portion of the real estate transfer tax?

The minister is a lawyer. He knows it is a reasonable request. He fails to recognize the elegantly simple solution that I offer him and the Finance Minister. If not just a basic recognition of humanity, it is a powerful act of reconciliation: the ability to capture a portion of the wealth-generating capacity of the lands of our unceded and unsurrendered territories. Until then, the minister must feel some responsibility for knowingly perpetuating the lie that there is no unanswered question over these immediately surrounding lands — and indeed, most of British Columbia — not just for the sake of closure.

It wasn’t until 2008 that I and my relatives were able to borrow money for housing on our Indian reserve — 2008. That’s quite a head start that this government gave their settler relatives. Centuries-old, outdated ideas, rooted in our government, inform our systems. They are designed, nurtured and fiercely protected by growing administrative bureaucracies. They convinced those people, elected to these democratic institutions, that the only answer is to continue to perpetuate another lie: infinite growth on legally surrendered land.

[2:40 p.m.]

All the political leaders across the country right now seem to agree on one thing, from Pierre Poilievre, Justin Trudeau, Premier Doug Ford to our Premier. They answer the question of how to fix the housing affordability crisis in the same way: build more supply. All we need to do to lower prices of housing is to build more supply than demand. In reality, we’ve not even come close to doing that. So we’ve fallen behind.

Additionally, we expect hundreds of thousands of people to migrate and immigrate to British Columbia each year, adding to the demand of our insufficient housing supply. The way our local governments have been set up to deliver land use planning and zoning, a negative incentive existed for mayors and councillors who are mostly property owners and historically elected only by property owners.

It’s not in the interest of the people who currently own property and want the value of it to increase for there to be more supply than demand. In a profit-driven real estate system overtly driven by greed, why would the owners of a commodity want to devalue it?

People flock to public hearings at town halls to argue against increased density because it will change the form and character of the neighbourhood they were promised when they bought their property there. This past year people in a neighbourhood in Vancouver wrote to complain about a child care facility because they didn’t like the sound of children.

My friend Central Saanich councillor Bob Thompson has a copy of one of the oldest maps of the Saanich Peninsula. It has no lines drawn on it. There are forests and wetlands, watersheds and prairie. It is the land before the first surveyor’s chain began slicing and dicing it into ever-diminishing sizes. The diminishing returns, fracking — each time a section is split, more value is unlocked.

The first settlers arrived to their large farms — Thomson, Verdier, Stelly, their names also memorialized on the neighbourhood streets. You can visit the Saanich Pioneer Society Museum in Saanichton to glimpse back in time just 175 years ago.

In the decades that followed, community development patterns continued to be governed by zoning systems, shaped by governance systems that featured public hearings in front of locally elected officials who were responsible for managing the fence lines between one individual property owner’s rights and interests and their neighbour’s rights and interests.

The system we have was not designed to create housing security operating from a central philosophy that housing is a human right. Up until now, our housing system has been maintained by managing scarcity. A confluence of factors include a decade of skyrocketing property values, high inflation, increasing interest rates. It has squeezed housing affordability in previously unimaginable ways to the point that people who own property argue that opening the taps and creating more supply is necessary, obviously unconcerned that the conditions will diminish their property value too much.

Bill 44 is a remarkable piece of legislation because it fundamentally rewrites the underlying principles of our historic land use planning and development systems. The zoning creates wealth, and it protects the wealth. Just as individual lots have increased in value dramatically, Bill 44 has the potential of multiplying the wealth of those fortunate enough to own those little pieces of land by allowing three or four or six times the density.

While the Housing Minister will be remembered for generating tremendous wealth, he will also be recognized for creating a wider gap between those who have and those who don’t. It’s unlikely that this government is going to hear many complaints from property owners. The vast majority have just received a massive windfall. And by the provincial government circumventing the local government hearing process, the requirements of local governments to bring their zoning bylaws into compliance, there will be little point to complaining anyway.

[2:45 p.m.]

But the scale and scope of the lack of housing affordability for both home ownership and rentals likely won’t be met by this initiative either. So the minister goes ahead and transfers huge wealth to property owners.

The fact that the situation has become so desperate that it is not possible for government to flood the market with more supply than is needed to actually drive these prices down, matched with hyper-inflated cost and high interest rates…. I’m concerned that despite what this legislation is designed to make you feel as a British Columbian, the system will still be effectively managing scarcity. Does this government have any intention to create as much abundance as it needs to drive the real estate market prices down?

When the Minister of Housing was on CBC Victoria with Gregor Craigie, he was asked about emergency shelters — extreme weather warming centres. Gregor asked him several times whether the provincial government would fund these initiatives. The minister kept deflecting back to the key message provided him: “The approach of the ministry is to move away from the shelter model to focus on long-term housing.” No matter how many times Gregor asked, the minister reframed the short-term question and offered a long-term solution.

However, the minister knows that the number of stable, supported and affordable housing units he is delivering is far from sufficient, and obviously, they won’t be available tonight and tomorrow night as the temperature plummets or in a few weeks when another atmospheric river flows over town, as was the compassionate spirit of Gregor’s questioning.

Stemming from our long pursuit of the average person to achieve property ownership, the classist struggle and stigma of the non-property owner — as I previously mentioned, renters — have found themselves on a lower rung of the societal hierarchy in North American culture. When I was elected to Central Saanich council, there was a rule that landlords had to live on the property they were renting. When this issue came up, I was shocked by some of the comments about the potential for the neighbourhood to fall into disrepair, apparently, because of the renters.

Now we expect people to pay 50, 60, 70 percent of their income to rent a home. Over the past 15 years as housing prices steadily climbed, people who could qualify for a mortgage were encouraged to make it affordable by buying a place with a secondary suite so the renter could help the owner pay and afford their debt.

Renters hear their landlords openly talk about how their tenants can’t be trusted, insinuate that they’re terrible peo­ple and that they need to have the power to be able to evict them much easier, all of which has a terrible impact on the psychological well-being of renters, who are constantly living in fear that their housing is unstable.

Now, I know there is some exaggeration in what I’m saying. The vast majority of these relationships, as I learned in that rental housing task force I was on, are good and stable. However, we only hear about the edge cases — the cases of bad tenants and bad landlords. As a result, we need to have the right-sized context for this discourse. Our constant cultural undermining of the renter is one of the destabilizing forces among many in our society today.

The amount of rent people pay is not attached to the amount that they can afford to pay or based on the median salary of the area or based on the fair price that allows them to maintain a balanced life. The amount of rent they pay is the amount the market determines. So people…. Well, they take what they can get where they can get it, and then they scramble. Scramble is not a sustainable lifestyle. People grow exhausted. Burn out. Stress out. They get mad. Society meets wrath.

This is the cycle for those who are born in the unfortunate generations, the people who look at housing and participating in the real estate market as a sci-fi fantasy. The ones the boomers and the Gen X’ers are convinced are unmotivated sloths, people who don’t want to work with the same ethic that they have, people who are choosing not to pick up their socks like we once did to get ourselves ahead. Never mind the reality that these generations cannot save for a down payment for a mortgage because they’re locked into paying their landlord’s debt.

[2:50 p.m.]

It’s clearly inappropriate to suggest the landlord subsidize their tenant, so there are very, very few options here. If you get into the rent trap cycle, there are very few outs. There is minimal mobility from being a renter to being a property owner in the current real estate market.

Let’s be honest. With the volume of supply and the chronological distribution of this new supply that Bill 44 purports to create, paralleled with increasing immigration, renters will still be renters, locked into endlessly paying someone else’s mortgage and hearing how terrible and incompetent they are.

It’s important to ground this discussion in the reality and the acknowledgment that we’ve been building an extraordinary number of commodified units of housing stock in the last 15 years. Obviously not enough to meet demand. Or maybe just not enough of the correct form of housing as a result of a number of factors, including immigration.

Our villages, cities, towns, metropolitan areas have all grown immensely. Construction has been booming, but not all those new units of housing have become homes. At the same time, the new construction was marketed as an investment vehicle, fully turning homes into economic units. This is evident in our vernacular. Whenever we talk about a housing unit, we are talking about an economic unit, not necessarily a home.

That is why the minister can talk about the number of units, behind the ribbons he and his colleagues cut in front of the cameras, snapping up these visual artifacts that represent marginal, even laughable, progress. Ultimately, those can be detached from the problem because he’s operating in an economic sphere of commodified housing units and not from the principle that housing is a human right.

He doesn’t need to know how many unhoused and housing-insecure people he’s targeting to support. He just needs to have the number of units he’s responsible for building close at hand so he can repeat it, ad nauseam, to demonstrate government is doing something.

With construction booming and trades looking for a workforce who can afford to live in a high-cost region, it’s unclear how the minister and this government intend on building all the necessary supply — the pan-political promise, the silver bullet to solve this housing affordability crisis. Who is going to build the magic supply?

A little detour. When politicians offer supply as the solution to the crisis, they’re often talking about building new supply. They want to build their way out of it. However, we’ve been building housing stock for decades. How much of the current housing stock is underutilized? We can’t accurately answer that question, but anecdotally, there are many single-family homes in my communities with one or two people living in houses with many more bedrooms and baths than they need.

This is another difficult discussion that I’m venturing into here, because private property rights are a sacred cow. Identifying this as a potential solution is probably going to be seen as controversial. But why hasn’t government created a program to incentivize single people and couples who are oversized to downsize?

The vacancy taxes are an example of the government using a penalty to encourage some investors to either rent their unit or sell it so it can become somebody’s home. What if the provincial government offered a grant to cover the moving and storage of excess possessions? What if they offered a substantial tax incentive to those who entered the program to right-size their housing in an effort to free up some of those empty bedrooms, either for someone to rent or for the family who needs space for their growing children?

Another idea that I’ve proposed to the minister, if that one is venturing into too much discomfort, is to abandon the notion that B.C. Housing needs to only purpose-build the solutions. Why not have a program that purchases larger homes, larger buildings on the market, and transforms them into multi-home buildings — rental buildings managed by a non-profit housing manager, cooperatives, co-living, strata buildings with their own governance structure?

None of these ideas have found any fertile soil within the ministry, yet they’re all potential solutions that pro­vide housing much more quickly than B.C. Housing has been delivering.

Now back to construction. Just another idea to address the minister’s insistence that the housing affordability crisis will be solved by supply alone. Why not invest in developing modular building systems?

[2:55 p.m.]

Our current construction industry is inefficient. It promotes inefficiency. Trades cannot find employees for the current volume of construction that is needed, never mind the massive increase envisioned by the minister. Construction site management requires an orchestration of trades who drive from job to job across town.

The stigma against modular construction is another one of those strictly classist cultural artifacts. Look down your nose at the people in the trailer park.

Imagine the efficiency, speed and lean manufacturing we could achieve constructing components of buildings in modular climate-controlled factories adjacent to the construction site, modules then transported to the site and assembled like Lego. With modern technology, we could build attractive high-quality product quickly, drastically limiting waste. It’s good enough for the LNG Canada project supported by this government. Why not support it for our housing systems?

We hear the stories regularly. Approved projects are not getting out of the ground. The cost of construction, even after approval, is too high. High costs to borrow construction capital. Building materials have become more expensive. Developers and trades assume more risk building the new supply. All factors that are included in the final market cost of the real estate product.

The financial landscape is challenging the modern homeowner and homebuilder with super-inflated property values, building costs and higher interest rates. As fixed-term mortgages come due and existing homeowners are facing down dramatically inflated mortgage payments, with the majority of those payments going directly to the interest, paying down very little of the principle, marginal homeowners become more housing insecure.

The water is slowly rising. In the next 18 to 24 months, we will see them increasingly unstable as well, with more of them drowning as a result of the economic system that is predicated on maintaining the value of a commodified housing unit rather than the value of well-housed, secure people.

Now, you might wonder at what point I will get to the legislation in front of us. Good fortune to those who wait or to those that are locked in House duty, whichever it might be, as they look at their watches for their escape.

In passing new laws and soon-to-follow regulations on short-term vacation rentals, this government has shown a willingness to experience some political discomfort around housing. They demonstrated this in 2018, when they passed the speculation and vacancy tax. Unlike some I’ve witnessed, this B.C. NDP government was unflinching when they passed that tax.

Bill 44, as best we can see, removes single-family zoning and allows three, four or six densities on a lot and potentially manifests billions of dollars of real estate wealth for those who already benefited from being born at the right time and further widens the gap between those who hold real estate and those who do not.

It dramatically increases the potential impact on outdated, underscoped, unfunded physical infrastructure lia­bilities in every community of over 5,000 people in British Columbia. It removes the ability for local governments to capture critical revenue needed to pay for infrastructure upgrades that are limitations on the scale of approved densification.

Note that there’s another bill for another time. We’ll see how that delivers on that point.

It replaces one-off public hearings with the requirement for more detailed housing needs assessments and frequent community planning engagement processes. It allows secondary suites and suites and accessory dwellings in every community in the province. But it does nothing to require affordability or increased incentives for non-profit, cooperative, co-housing and other rate-controlled housing options.

When I was a councillor in the district of Central Saanich, my job, for my first term, 2008 to 2011, was chair of the water and wastewater committee. This was where I met former North Saanich mayor Geoff Orr and how I was introduced to the physical limitations of our infrastructure.

The infinite growth model needs to have access to an infinite amount of capital to build and maintain all the structural and mechanical resources necessary so that when little Susie turns on the tap and when little Johnny flushes the toilet, the expected happens.

[3:00 p.m.]

The infrastructure built over the last 100 years has done pretty good, but a lot of it is getting old and nearing its end of life. Much of it is undersized. Think culverts meet atmospheric river. The Minister of Transportation remembers what happened then. None of it had an investment program for replacement, nor did we consider applying an inflationary factor in the accounting to accommodate the reality that a new bridge today does not cost the same as the one that it is replacing.

I run into this every day in my constituency office, with respect to B.C. Ferries. I fight hard to make sure that B.C. Ferries supports the beautiful communities and needs of my constituents, and the drive-on experience that I had when I was a kid — when my dad and I would go over to the Pacific Coliseum and watch our hometown boy, Russ Courtnall, play for our beloved Toronto Maple Leafs.

The marine highway system we expect, based on our past experience, has changed. Standards, costs and labour markets are just some of the reasons why the system that we’ve come to expect to deliver in a certain way is no longer able to meet those expectations. This government expects the infrastructure — which, we have known for decades, will be insufficient — to suddenly and magically become sufficient.

Earlier, I shared a pivotal moment in my life, sitting on my seatless couch, my grandmother’s couch. There’s another such moment when I sat in the chair in Gary Nason’s office. He was the chief administrator in the district of Central Saanich, and I was a four- or five-month-old councillor, eager to do all the things. I had a big learning curve, as a kid who grew up on the other side of the line — the side without zoning, planning and development, public hearings, development cost charges, land taxes, mill rates and constituents.

Gary was patient, and he was a great leader and teacher, as was the mayor at the time, Jack Mar. Gary spent time with me to show how the federal and provincial conditional granting systems worked — or didn’t, depending on where you were located. On the federal-provincial side of the equation, they got to collect a vast majority of the wealth from a seemingly limitless tax potential and then distribute it based on their own politically driven priority.

One year we were looking for funds for a fire hall, but Christy Clark was funding park benches. We borrowed the money for the fire hall, and we applied for a grant for the park benches. On the municipal side of the relationship, you just take what you’re given. Even though politically, mayors and councillors are closest to the public, and much of their work is driven from grassroots community advocacy, it’s beneficial if their priorities align with the federal-provincial priority. How else are MPs and MLAs going to cut ribbons?

Sitting in that chair in Gary’s office that day, I realized my path was to the provincial government. Ottawa is too far from W̱SÁNEĆ. At the 2009 Association of Vancouver Island and Coastal Communities, I stood and asked the then Leader of the Official Opposition, B.C. NDP leader Carole James, if she formed government one day, would she fix the broken fiscal system supporting our local governments? She said no, she would not.

When Premier Gordon Campbell took the stage the next day, I asked him if he would change the framework that funds municipalities and regional districts so they were not perpetually chasing funds for critical infrastructure investments. He said, no, he would not. They both kept their promise.

In 2010, I was part of the conversations at the Union of B.C. Municipalities that produced important advice on how the provincial government could secure the fiscal futures for local governments. Thirteen years later, that project is still incomplete, and our infrastructure continues to decay. From the multi-billion-dollar surplus found by the Finance Minister prior to Budget 2023, the Minister of Municipal Affairs announced a $1 billion fund and a new distribution formula, which mostly worked.

[3:05 p.m.]

The exception is to help people who live in electoral areas. Particularly in my riding, the ones in Saanich North and the Islands, on the southern Gulf Islands and Salt Spring Island, were not treated equally to their urban cousins. I shared this with the minister. I shared this with the Minister of Housing. I shared this with this government. Nothing changed.

This program is a hopeful start, but it could run for the next 100 years, and it would still fail to meet the need of local governments, never mind the added pressure that Bill 44 will create.

Going back to Central Saanich and the conditional grants, this is how absurd the current system is. The federal government creates a fund matched and administered by the province. Central Saanich has a critical sewer pump, desperately needing replacement — a high-pressure system, densely populated neighbourhood, adjacent to a sen­sitive ecosystem. They applied and are denied. They applied again and were denied again.

Look, if the government’s model is to borrow for this replacement, then it won’t be long before the community has reached its borrowing capacity, and that will be well before there is suitable infrastructure across the municipality. Overlay this with the pressure Bill 44 puts on that sewer pump. It’s a single-family home neighbourhood, 8,000- to 14,000-square-foot lots, big lots.

None of what Bill 44 has considered was considered when the neighbourhood was originally developed. It was designed for single-family homes. The underground and aboveground infrastructure was not scoped for a 400 percent increase in density, and now the provincial government has unilaterally stated that the neighbourhood can load an extra 400 percent more density there without planning.

Ad hoc, top-down decision-making, designing the future of a place without the context of the place. That’s the reason why it leaves the taste in my mouth that this makes more sense as a real estate investment play than it does making healthy community development. And that is not assuming that the system that we currently have is achieving healthy community development, because it’s not. Not necessarily, I should say.

As I mentioned, the health care system can barely deliver substandard care now, never mind piling 400 percent more people into the same space. The schools in those neighbourhoods are currently running at 95 to 98 percent efficiency. That’s almost the perfect number. That means they’re being funded, and they’re not overcrowded. The buildings are aging, but the condition of the buildings is still good.

This is not the case everywhere in every community across the province. The health care systems and education systems are not funded or flexible enough to handle this scale of change. What is most disturbing is there doesn’t appear to be any inkling that this government has any intention of thinking about the planning that is needed to support local governments in making these investments in their infrastructure.

As a passing comment in the Housing Minister’s briefing material for Bill 44, they celebrate the $1 billion building communities fund and pretend like it will be enough to placate the needs of our local government colleagues. It also mentions a $51 million promise that was made at the UBCM this year.

Both of these numbers are remarkably low compared to the well-known infrastructure needs of our communities. The fact that we have not got a system that was designed to support the renewal of our infrastructure. We just had a history of building it and then pretending like it was going to last forever.

Well, a lot of that infrastructure is coming to the end of its life. That’s why earlier this year, I called on the province to commit to make this building communities fund an annual payment, $1 billion a year, at least until the new fiscal foundation is created to support the growth of our communities as it was envisioned here.

I can’t think of a better way to actually put the onus on the provincial government to do the necessary work and to commit to the necessary work to opening up the resources so our communities can actually support the burden that this provincial government is downloading onto them.

[3:10 p.m.]

So how does Bill 44 impact my communities in Saanich North and the Islands? I’ll separate them into three distinct categories: the Saanich Peninsula, Salt Spring Island and the southern Gulf Islands.

The communities on the Saanich Peninsula are the classic definition of urban sprawl, single-family homes, from modest to massive, on large, unserviced lots. The primary challenge I have heard about this change to zoning is the range of issues I raised just previously about the capacity of the urban infrastructure to support the increased density.

I have long recognized that our land settlement pattern through the 1960s to the 1980s, when most of the neighbourhoods on the Saanich Peninsula were developed, was inefficient. The vast majority of the housing stock built on these massive lots is large, single-family homes built parallel to the road, directly in the middle of the lot, with 4,000 to 6,000 square feet of lawn in the front- and backyards. The value of those properties has increased from about $100,000 when they were brand-new to around $1 million today.

The shoreline on the Saanich Inlet, Satellite Channel around Roberts Bay in Sidney–North Saanich represents some of the most expensive real estate in British Columbia — not old-money Victoria, like Oak Bay, but deep pockets, nonetheless. Many of those houses — not all, many of them — are part-time residences, real estate investments, some project real estate, people building a dream home to sell to someone else to live in.

While Central Saanich and North Saanich have had modest growth. Sidney’s commercial area has seen a boom in condo development. My office is in one of those buildings, all of which have been — except the one that I’m in, actually — market product. They provide a little case study, for the Housing Minister, of what happens when property is redeveloped based on a philosophy that if you build more supply, you automatically get lower prices in a market that doesn’t restrict who can enter it or artificially cap the price.

Hundreds of new units have been added to the housing market, and as you guessed, the vast majority of them have been at current market value. The aging affordable housing it replaces is gone, and the people that lived in those spaces have been displaced.

I’ve been around local government on the Saanich Peninsula for 15 years. I’m not the rookie councillor anymore. I know the state of our infrastructure; I know the state of the reserve funds. With hundreds of millions of dollars to repair and upgrade the infrastructure, I know that without the capacity to raise those funds through development cost charges, which are usually applied at rezonings, or a fund — reliable, from the provincial and federal governments — to support the infrastructure, Bill 44 is little more than a government appearing to do something.

On Salt Spring, things get more complicated. I know the Premier and his Housing Minister know this, because they’ve been involved in several meetings where the problems and the challenges have been described with clarity. Salt Spring has more than 12,000 full-time residents. It’s the largest unincorporated community in the province, managed by federal, provincial and two local government bodies. The CRD provides the services. The Islands Trust, which operates on a preserve-and-protect mandate, does the land use planning. It is somewhere between the 25th- and 30th-largest community in the province. There are about 200 municipalities in the province.

Historically, land use zoning on the island created mas­sive, multi-acre lots, serviced by a patchwork of locally run improvement districts that manage local water and sewer, or the properties were individually serviced by wells and septic tanks. The roads are owned and managed — with all due respect to the Minister of Transportation — somewhat poorly by the province. B.C. Ferries provides the transportation connections to the rest of British Columbia.

[3:15 p.m.]

Salt Spring finds itself in a rurban purgatory in British Columbia. It is considered rural when it needs to be urban, and it is considered urban when it needs to be considered rural. Its connection to the capital regional district is both beneficial and a drawback, and its inclusion into the Islands Trust wraps it in an argument that is grounded in a legislative policy designed to address problems of 50 years ago, not the problems of today.

That is not the dog whistle that people on both sides of this deeply entrenched battle between growth and no growth may think that it is. It’s not. There’s no such thing as infinite growth. Salt Spring Island is an island and has real limitations on the number of people that it can carry.

Again, with unlimited money, energy and ambition, we could build unlimited water desalinization plants, waste­water treatment facilities and new pipes everywhere to accommodate infinite growth. However, as the Premier and the Ministers of Housing, Transportation, Health, Mental Health and Addictions, Education, Public Safety and Finance have all made clear to us, there’s not an infinite supply of cash for Salt Spring. There’s not even a modest amount of money, nor a desire to create land use and community planning that could facilitate it.

Instead, we have B.C. Housing fluttering around the island, claiming that they are going to purpose-deliver 24 or so modular units of supported housing, and somehow that will create housing stability for the thousands of people who are currently housing-insecure — trades and other working professionals, front-line workers that are needed for the basic functioning of a community. They even suggested that since they were building these supported units, the emergency shelter was no longer needed.

We fought back and let them know that the need is so much greater than their paltry offerings that they announced nearly two years ago and have yet to even break ground on. Just as we warned, B.C. Housing has run into the wall of bureaucracy and the real physical limitations, including purchasing modular units that were not suitable and had to be renovated. This project has ground to a halt. Now people have just turned the site into a campground.

I facilitated dozens of meetings with the Housing Minister, the Premier, local elected officials and B.C. Housing officials to plead with them to take a different approach with Salt Spring Island. I pled with the Health Minister and the Mental Health and Addictions Minister for them to spend some of the billions they brag about spending in these portfolios. Each of them shrug and tell me there’s nothing they can do.

Perhaps it’s time for this government to have their words reflect the body language and just admit to the people of Salt Spring Island that the bureaucratic administration that is being managed here is so broken that there’s nothing that can be done for this community. I don’t believe it, but we need to start to see real action. My local government colleagues are exasperated. They need this government’s support, not the understanding and well-wishing.

On the outer Gulf Islands — Pender, Mayne, Galiano, Saturna, Sidney, Piers — 60 of them, each of these communities face similar issues as Salt Spring but each to their own contextualized extent. All of the issues I’ve raised regarding Salt Spring exist on the other islands. The challenge they face with building four to six units of affordable housing is inexplicable: hundreds of hours of volunteer time, like Sisyphus endlessly pushing the boulder up the mountain, each obstacle navigated re­vealing another obstacle.

I only separate the southern Gulf Islands from Salt Spring because the scale and scope of the challenges they face are dramatically different. The call to the provincial government remains the same.

We can celebrate opening a child care facility on Mayne Island together — I know that members of this government leaned heavily into that one — but if there’s no housing for early childhood educators, if there is no housing for teachers in the public school and no action is taken to address the systems that continue to fail those communities, then what progress has been made?

[3:20 p.m.]

Bill 44 does nothing to create or incentivize the construction of affordable, rate-controlled, non-profit, co­operative and co-housing options that would allow more upward potential for people in the rental cycle.

In the second reading speech made by the minister in support of Bill 44, there was only a passing reference to affordable housing that may be possible if someone chooses to build it, an admission that this exercise is an exercise in market housing. It does not qualify any of the wealth that can be extracted from turning a $1 million home into three, four or six $1 million homes. It doesn’t say: “Look, if you’re going to take this golden handshake from the Housing Minister, then you have to produce a percentage of units that are below market value.” It doesn’t do that.

Every single unit of housing created through Bill 44, with the exception of the few that choose to build below market, will go into the real estate market with the assumption that we will get a different outcome than the one that we’ve been getting since social stability became the sacrificial lamb for the housing market. It’s remarkable.

I have a constituent who read Les Leyne’s article quoting me talking about decommodifying housing and remarked that I sounded socialist. Another person suggested to me that I wasn’t compassionate enough about the effort and hard work they’ve invested into buying their home. I’m sorry that our society hasn’t got over the fears of socialism. It’s a long history, but in the end, it’s the constructs of capitalists protecting their individual interests.

We’ve seen a rise of ill-informed memes that have clearly found a home at social media university where the curriculum clearly fails to accurately define socialism and communism and Marxism. This speech is not about socialism. It’s about reimagining an interconnected world where we look at each other and we agree that it is better for all of us if each of us is securely housed.

Decommodifying housing is not about destroying peo­ple and their economic security. It is the opposite. It’s about rebalancing markets so they serve, not dominate, the humans and human societies that constructed them.

It made little sense for us to strip the natural resources that sustain life on planet Earth, and it makes even less sense for us to defend socioeconomic systems that do the same thing to our communities and our societies. But that’s exactly what we’ve done.

I think we need to recognize the damage that toxic levels of individualism have done to our communities, to our planet, to our quality of life. People are struggling to keep up — keep up with the demanding expectations, keep up with the bills, keep up with the Joneses, struggling to have good food energizing them, sturdy shelter over their head.

Housing and food are human rights. It’s what a compassionate and just society promises to their people. And if that doesn’t motivate you, well, worry not because it’s also good economics. The instability created by food and shelter insecurity, by the housing system designed to create wealth now creating poverty, is going to be far more costly for us all.

We need to have the difficult and uncomfortable dialogue about resetting our expectations from the returns on our real estate investment. We need to destigmatize renters as second-class citizens. There needs to be a massive re­alignment so that rent and mortgage payments, property value, are aligned with what people who live and work in the community can afford to pay without bankrupting them, without limiting their decisions about post-secondary education and their desire to start a family.

This topic is hugely toxic because there are so many hopes, dreams and promises, expectations and wealth attributed to it.

[3:25 p.m.]

But government needs to get creative about how we can recognize some of that wealth that people have built over the decades in other ways, through other means, just like the W̱SÁNEĆ people did by having free food but food with value, not stigmatize or leave people behind who weren’t born at the perfect time.

HÍSW̱ḴE SIÁM.

A. Walker: I appreciate the opportunity to be able to speak to Bill 44, which represents some of the most significant changes that we’ve seen in the way housing is regulated in this province, probably since the Agricultural Land Commission was brought in in 1973.

I’ve shared stories in this House before about some of the challenges that renters in our community face, whether that’s seniors who are living in their cars, relying on the pool to get cleaned up, relying on where they park to ensure that they’re safe, or whether that’s people who are working, sometimes two people in a household working jobs and living in trailers and campgrounds just trying to get by, not getting ahead. The housing challenges in our provinces are real.

I say this without irony, but when you talk to a parent who lives in a school bus who is raising a child to go to school that isn’t able to every day make sure that that child has lunch, a lot of this comes back to housing and security. For those that are in campgrounds…. In many ways, they’re the lucky ones.

The housing challenges have meant that homelessness in Oceanside has increased by 20 percent in the last two years. It is very timely to mention that we don’t have a cold weather shelter in Parksville or Qualicum Beach, so those folks that are unhoused right now are going to look for a dark and cold and wet winter ahead.

I appreciate the impetus for amending the way housing works in British Columbia. I think, fundamentally, the intentions of this act I agree with. The idea that local governments have to plan for not five years’ worth of growth, but 20 years’ worth of growth — there’s tremendous value in that to ensure that official community plans align with the housing needs of our communities and to focus the community building exercise around official community plans instead of individual spot zoning.

There are some significant values to that, but the challenge is that there are lots of pieces in this bill that I think communities like Parksville-Qualicum will have some real challenges with. In our community, most people live in single family homes, so this will disproportionately impact communities like French Creek more than other parts of the province.

I’m just going to quickly run through the bill here and what some of the changes will mean in our community. The first one that jumps out is the limitation on local governments to be able to rely on previous protections when it comes to enabling this new small-scale multifamily housing. That means in a single family lot, we can now expect to see three or four or six or more homes, depending on what the regulation states.

Previously, prior to this bill, local governments, when they were adopting zoning, could rely on some protections that would limit growth, limit density and limit investment into housing in areas where the protection of the natural environment, it’s ecosystems and biodiversity were important. That’s incredibly important in my community. Englishman River and the corridor that’s there is relied on not just for the fish and all the aquatic habitat, but that’s where we get our water.

The city of Parksville has been working very carefully over the years with the regional district of Nanaimo, with Land Trust of B.C. and B.C. Parks Foundation and all these great organizations to preserve this land.

But once this bill passes, local government will not be able to say no to the density in these areas based on the protection of the natural environment. That will mean that it will lock these areas in to higher densities, and it will drive up value of this land, making it very difficult to renature these areas for the future.

There are regions — and I’ll focus on Qualicum Beach, because it’s my home — where there are protections in place that limit development in hazardous conditions. What that means in Qualicum Beach is we have this sand bank that runs along the highway that, in the event of an earthquake, would pose significant challenges, not just to the people on the highway below, but those that live above, so restrictions exist right now within the development permit areas that restrict density and restrict growth in areas that could potentially be a hazardous condition.

Once this bill is brought into effect, local governments will no longer be able to say: “No, that’s not where we want to see development.” The same thing takes into account floodplains.

[3:30 p.m.]

The development in a floodplain…. Once it is built, it is very expensive to then relocate those people. The ability for local governments to restrict density in those areas is gone. The protection for farming is no longer permitted. The protection of a revitalization area with a commercial intent is no longer permitted. The protections of former character covenants…. Of course, we can recognize that does drive up the cost of housing.

In communities like Qualicum Beach, which have spent generations and invested heavily in the character of our village neighbourhood, there is a desire to be able to maintain that.

I find it shocking that even the ability to promote energy conservation, water conservation and to reduce greenhouse gas emissions are not things that can be considered by local government, once this act comes into effect, when it comes to these new, small-scale, multifamily housing units.

The other challenge is when it comes to heritage properties. Again, they — local governments, our town councils, our city councils — will have much less power to protect the historical buildings in our communities when those could be used for housing.

The next item that jumps out to me is: when you have an official community plan that designates an area for density, or just an area for development, if the application is in line with the official community plan, the local government is no longer allowed to hold a public hearing.

On the surface, that’s probably not a bad thing. I mean, we really want to focus a lot of our planning processes into the official community plan and take away from the spot, one-off public hearings, where neighbours come in and talk about traffic and parking and some of the things that we hear when we’re on councils. The challenge with eliminating the need for public hearings for rezoning for anything that aligns with the official community plan is it has the risk of dramatically politicizing the official community plan process.

We do not want to be in a situation where communities are really underestimating the development that they would see in a downtown area, where we want to see development, just because they lose control over that type of development. That is a concern I have, but I think it can be moderated through policy.

The official community plans that communities have will now be required to anticipate the housing needs in our communities. That is an incredibly useful thing. Reflecting on members who have served on town councils, who have taken the time to go through the planning process, we want to make sure that these official community plans…. They are long; sometimes they’re 300 or 400 pages long.

They should talk about the growth, that they can anticipate where that growth will be and what that will look like. This bill will require that every five years, the housing needs assessment will be received by council, and within a year of that, that councils then go through the official community planning process again.

I think that makes sense, the idea that the official community plan is aligned with the housing needs assessment. But the challenge is: when you look at a bill like this, where everything is mandated as opposed to encouraged, where we’re really using the stick on something like this, it runs the risks of unintended consequences that can’t be foreseen.

A perfect example is chatting with a mayor — I won’t say which community in my constituency — when this was introduced. He said: “You know, we’re going to make sure the council changes our growth containment boundary to align with our downtown core, so none of these rules apply.” When you have rules or laws that mandate local government do something, you run the risk that…. These are creative people that will find ways around it that will have a detrimental impact on creating more housing that we desperately need.

[J. Tegart in the chair.]

The act states that these new rules will come into effect June of next year, which will likely mean anything between now and June of next year will be put on hold. There’s a tremendous potential for up-zoning and more return on investment. So there’s a chance that we will actually see a reduction in development over the next little while, while the regulation is being developed and until this act comes into effect.

One of the things that’s interesting in the way this is written is if you have an existing single-family lot, if there’s a house that doesn’t have a suite in it, councils have to accept that. If there is an additional building, councils have to accept that there could be a suite in that.

The process right now, if somebody wants to put a suite in their yard…. In Qualicum Beach, in Parksville, these are encouraged right now. It goes through a public engagement process, where the neighbours can talk about the impact of having a two-storey suite in their backyard that overlooks the neighbouring yards, and it becomes a more collaborative process.

[3:35 p.m.]

When you require that local governments have to ac­cept these things, there will be unintended consequences in communities that will create animosity between neighbours.

There’s a provision in here that the maximum units, if you are near a bus stop, is more than the minimum. So we’ve heard the minister refer to the minimum new single-family zone to be three or maybe four units. I’m not sure. Regulation will make that clear. And near a bus stop, it will be six or more units.

In a community like mine, where the bus stops change, it creates an interesting situation where you could have a lot that has six units on it that is all of a sudden legally non-conforming as these bus routes change. I would hate to see…. As this act states so many times that things “must” be done instead of “may,” I would really hate to see communities come together to try to have less bus stops to try to ensure that there isn’t density that comes into their neighbourhoods. And that’s a significant risk.

When we have rules that mandate local governments do something, and those governments represent a community that doesn’t want to see these things, they will get creative, and it will have impacts on our communities.

Now, these rules won’t affect every single-family lot. There are some carve-outs here. Land that is already protected under the Heritage Conservation Act…. Those will not be applied here. What I find interesting is the heritage designation process. If your property has been designated by a local government before the act comes into effect, it’s fine, but you won’t be able to protect those properties after the date.

There’s also a requirement that for this to come into effect, you have to be connected to a water and a sewer system operated by a local government. It doesn’t have to say that that water system has enough water to serve the neighbours. It just has to be connected.

It also doesn’t apply to lots that are more than one acre, and we’ve heard that, through regulation, there will be additional changes that will come from this. It provides government with the ability to define what an urban containment boundary is. It allows government to define regulations around what bus stops could be and the sighting and the size and the dimension and location of the housing units.

Basically, the things that matter to people in my community…. You know, what’s the setback? What’s the maximum coverage on a lot? What are the height restrictions? These will be set through regulation later, which creates some challenges.

This act is going to be coming into effect June of next year. If these regulations were a little bit more thought through, we would be able to start that zoning process in our communities to see the types of housing that this government wants to see. But by having all of this in regulation that comes in after the fact, we’re going to see a lag between when the act is coming into effect and when some of these housing units will come through.

The zoning bylaws are also changed in the sense that local government has to accept these numbers of units in these single-family lots. They have no choice. They must. But it also changes the Local Government Act to require that councils accept all zonings that meet the permitted use and density within the official community plan.

It would be interesting to see what that looks like in practice, but it could very dramatically change not just the process for what is approved, but as I said before, when you go through the official community planning process, local governments may be downzoning things just to ensure that they are not going to see the types of development in their community that would happen without their control.

The provision that has come up in question period is the parking provision. So if you live near a bus stop, local governments will no longer have the ability to require off-street parking. I think, in most circumstances, that’s probably reasonable. We want to ensure that people get out of their cars and create less car-dependent communities. I see that as a plus.

The challenge is, again, that local governments are not allowed anymore to even have a conversation about what that off-street parking looks like. We want to encourage people to take a bus. But if you create a neighbourhood where the density is so much that people can’t park in their own communities, it makes it very difficult to raise a family in a community where you have to walk several blocks every time you hop in your car.

Qualicum Beach…. Much like many other communities in this province, they’re car-dependent communities, and that could create some challenges for folks.

There are some additional powers that have been granted to the minister. I won’t go through these. The act is important in the sense that it’s creating an opportunity for housing, but a lot of these powers are going to be coming through regulation.

[3:40 p.m.]

If a rezoning is taking too long, as far as the small, multifamily sites or even in general, it provides power to the government to step in, to mandate local governments to move forward with that zoning. Oddly enough, that power is no longer applicable after 2031. I’m not sure what happens after that point, but maybe that’s the end of our housing crisis. It provides for additional powers here and then goes through the Vancouver Charter.

In our communities, the challenge with this upzoning is that it doesn’t take into account the strain on our infrastructure. We know that this will impact communities like Parksville, Qualicum Beach and French Creek more so than other communities, because this is how our communities were built. They were not planned for four units on every lot in these subdivisions, which means we don’t have the water infrastructure. We don’t have the sewer infrastructure. To require this on government without really planning it through is going to have some significant unintended consequences to the ratepayers.

To dramatically upsize the water service or the sewer service in a community that’s already established is a very expensive undertaking, and it will refocus government from focusing on their downtowns, where we want this development, into these other, more car-dependent communities, which I’m not sure is really what the goal of this act is.

Local governments know best about their own communities, and they are the ones that are able to listen to the needs of their community. In French Creek, for example, we don’t have the water units for any new developments, full stop, regardless of these new rules. If somebody wanted to subdivide a lot and put a new home in, there is not enough water in French Creek for that. We’ve seen the water aquifer go down substantially, both in quantity and quality. To force local governments to rezone these properties to allow for four or more units in a community that doesn’t have access to the water is incredibly shortsighted. If you have a house that when you turn on the tap, water doesn’t come out, that is not a home.

When we look at the wastewater treatment plant, there’s a $123 million investment that’s going to be required for that wastewater treatment plant. When the Minister of Municipal Affairs did her tour on the Island, announcing different investments in the areas, the regional district of Nanaimo was overlooked. This is a significant investment that is going to be required in order to see more homes built in our community. It is just not acceptable to leave that to local government. So $123 million for a community as small as ours is a significant burden, and it’s holding back development.

The other challenges are not just…. When we talk about infrastructure, it’s not just water and sewer. We have infrastructure like the hospital in Nanaimo. We have seen some investment from this government, and I appreciate that: the new high acuity unit, the new intensive care unit. But that’s six net new beds.

If we dramatically increase the population in the cities of Nanaimo and Parksville and French Creek and Qualicum Beach, we’re going to need to see more investment in our hospital. Local government has stepped up. They have the ability to pay for a patient tower and a catheterization lab. But the province isn’t coming to the table to do their 60 percent of this investment.

When I was on council, we always heard about downloading. I thought: “This is great. Local government is in a position to be able to best represent its community, tax directly and be more responsive.” But when you have a provincial government that is forcing local government to build more homes, but doesn’t come to the table for the wastewater treatment plant and doesn’t come to the table for the hospital, it’s putting an unfair burden on communities like Parksville and Qualicum Beach.

That also extends beyond just health care. It’s getting into transportation. Traffic is something we all live with. On our island, for whatever reason, we don’t have interchanges at many of our major intersections on our highway. The more we build up, the more that pressure is going to be felt.

I think there are some misconceptions, as well, when we talk about increasing density, that that’s going to necessarily lead to more affordable options. We have two communities in the constituency side by side, Qualicum Beach and Parksville. Parksville has been growing at a fairly good clip. We’ve seen apartment buildings go up quite dramatically. Qualicum Beach has been pretty quiet.

Even with that dramatic growth, we haven’t seen the cost of rent go down. In fact, the average cost of rent with this development has gone up. My concern, as we look to increase housing density, is that if our goal is to increase affordability, this may not get us to where we need to go.

[3:45 p.m.]

Of course, there are the environmental concerns. People move to Qualicum Beach, and they move to Parksville, because they want to live in a community that is in nature. If we increase the parcel coverage dramatically, we’re going to see the deforestation of our communities. We’re going to see a lack of tree canopy, which, again, creates some challenges for our environments, whether it’s Englishman River or elsewhere.

It’s not just about habitat. These natural assets are absolutely integral to ensuring that our stormwater is able to repenetrate into our aquifer, which we rely on for our drinking water. So when we talk about environmental impacts, it’s not just that we don’t want to see change. It will have a dramatic impact on our ability to be able to provide water to our community.

I’m going to go through some of my notes here. I see I’m running out of time.

I think it’s important that when we talk about our housing changes, that we talk about some of the alternatives that we could be doing in our province. When we focus on densifying suburban regions, which is what this act does, it takes the planning energy away from the downtown cores, which is where we want to see that density. It’s where we want to see that investment.

In our community, I can just imagine, once this takes effect, the impact it will have on our planning department, neighbour against neighbour, asking: “What is allowed? Why can they do this? How do we stop it?” Our planning departments are only so large, and if they can’t focus their energies on our nodal communities, we will not see the growth where we want it, and that means that we will not see the vibrancy of our downtowns.

These are where people go for experiences. We go to cafes, we go to bookstores, pubs. It’s about bringing people together. If we’re forcing more people to live in more suburban areas, all we’re doing is relying on our cars. That’s not the future that I think that this government, and it’s certainly not the future that I want to see in our province.

When we look on Vancouver Island, we have a lack of Crown land, which is a challenge when we want to look at provincial investment into public housing. But we still have a corridor that runs the length of the Island. The Island Corridor Foundation currently owns it. It’s being broken up, and that rail corridor could dramatically link our nodal communities together in a way that creates communities that are interconnected, that don’t rely on cars, that can see density go up in places that people would accept them.

I would certainly hope that, as we see other housing bills move forward and other investments into housing on the Island, this government looks at that that corridor as not only for movement of goods but the movement of people, so that we can build communities that don’t rely on the automobile.

As I mentioned, in this province, 93 percent of the land is owned by us: taxpayers, people in the province, yet I haven’t seen an initiative for a new community in our province since the failed attempt just on the Malahat there. This is a tremendous opportunity for the province to really show leadership in housing. We want to see walkable communities. We want to see communities that people can use active transportation, communities where we have 30 percent of the land dedicated to nature.

We can do that from scratch. We have parts of Vancouver Island, parts of the valley that are owned by the prov­ince that really wouldn’t even require significant investment from the province. It’s just a matter of granting developers the right to develop communities in participation with First Nations with a clear vision of what we want the future of British Columbia to look like.

I think downloading the density into suburban areas, onto local government is…. I mean, that’s one way of building more homes, but I would much rather see purpose-built communities that people from around the world would look at and say: “That is the future of housing, and that’s what we want to see in our own community.”

The member for Saanich North and the Islands mentioned the idea of prefabricated homes. We see in California and Washington State some companies that have set up very impressive, premanufactured home opportunities where they can, in a factory setting, build a four-, five-, six-storey apartment building, flatpack it, ship it to a site, and, in less than a week, have an entire apartment building built.

If B.C. Housing used an initiative like that where they prebought 10,000 units and then asked local governments where they want them, I can assure you that there will be communities that say, “Yes, please. Right here.” The province can get that money back.

It’s not like we’re talking about massive amounts of money that will be invested and not recuperated, but we could set up a structure where that money is then brought back into government and government is made whole so we could see housing built quicker, more cheaply, with quality homes that people could move in in a very quick way.

There are some great programs that exist right now through B.C. Housing. HousingHub is a good program. The challenge is that it hasn’t really kept up with the rates of inflation and some of the challenges that developers are facing.

[3:50 p.m.]

I would hope, as we discuss Bill 44 and the massive densification of our suburbs, government would also look at some of the programs that already exist in our own province that aren’t really working to their maximum potential.

When B.C. Housing does commit to make a presenta­tion to a local council, as we saw in Parksville recently, I hope they would show up. Local governments want to work with government. They want to work with B.C. Housing. They want to address the needs in our community.

We saw recently that the city of Parksville invited B.C. Housing to come and answer questions. “Where is it that we are going in our community?” “How are we going to address the need?” With ten minutes of notice, B.C. Housing said: “We’re just not going to be able to make this meeting today.”

It’s about working together. This need is significant, and we will not get there alone.

The last item I want to quickly mention is the first-time-homebuyers grant. We talk about the ability to dramatically densify our suburban areas. But when you’re a first-time homebuyer and you look at that cap…. It says $500,000 is the limit, and you will not be eligible for the grant otherwise. Even with laneway suites, if we set them up as stratas, in our community, you’re still looking at a half a million dollars. I would hope the government would look at this first-time-homebuyers grant as an opportunity, adjust the levels and ensure that we can get first-time homebuyers into homes.

I just want to reiterate that I fully recognize that we’re in a housing crisis. We see not just seniors. We see everybody struggling with this. Families are having a hard time paying their mortgage or paying their rent and looking after other bills. As we hear from the opposition all the time, B.C. is now the most expensive jurisdiction in all of North America. That’s not something to be proud of.

While this will increase the number of housing units in some of our communities, it doesn’t address the core issue, which is that housing is just completely unaffordable for many people in our communities. As the member for Saanich North and the Islands mentioned, this is a windfall for those that own homes. For those who don’t own homes, it may not provide that avenue to get into home ownership.

We need to ensure that there’s business certainty. It’s not local governments that build housing. It’s not the province that builds housing. It’s builders that build housing. And when the rules change or when there are proposed rules and the regulation is not made public and there are things that are said in public that maybe are different than what’s in the act, it creates uncertainty.

We want to see builders build in our province. We want to make sure that the rules don’t change, that they know what to expect and that they will lead this process and get us to where we need to go.

Up until this point, this government has listened to the UBCM. We are at a higher level than the local governments, but the fact is that we’ve got 161 municipalities and 27 regional districts.

When you talk to the elected officials that are in these governments…. They know what they’re doing. They lis­ten to their community. They’re responsive. They’re responsible to their community. They’ve got great ideas. We want to make sure that as new housing bills come forward, their voices are part of this process, because we’re not going to get through this alone.

We want to ensure this is a collaborative effort. All levels of government, whether it’s local government, provincial, federal, First Nations…. Even with the school boards, there are opportunities there for housing on school grounds.

We want to make sure that we do this collaboratively. We need to work together, we need to listen to each other, and we need to show deliverable action so that people in our province can see that we’re going in the right direction.

B. Stewart: It’s a pleasure and an honour to stand in this House, again just talking about Bill 44, the Housing Statutes Amendment Act.

Thinking about some of the other speakers that I’ve heard here today, I have to say that it was something for me…. I think about the drastic, dramatic change that this Bill 44 brings into the House.

Quite a lot of years ago, I used to sit on the Advisory Planning Commission for the regional district in Kelowna. I remember the rules. I think it was bylaw 871, if I’m not mistaken. It had all the rules about heights and variances and things like that. My goodness, we had a lot of challenges with people that always wanted to creep and do other things like that.

This bill is so broad in terms of what its mandate is and what it’s doing. I can’t help but think about the fact….

Everybody in British Columbia is talking about housing. It’s kind of like affordability…. Housing doesn’t have any affordability. Why has that happened?

[3:55 p.m.]

I look at what the government is proposing with Bill 44. One of the things that I think…. What has happened here is…. Government’s reaction has been in the wrong direction, in my opinion. The reaction has been to try and control it through B.C. Housing, government entities, rules.

I know I’ve spoken a lot about…. Bring out the playbook instead of the rulebook. I think that in this situation here, this bill, given the way that it’s written and the fact that when it comes out…. It is going to so dramatically change things with local government that it’s going to create a lot of problems. I mean, the problems I can just envision, in terms of how cities are going to deal with things like infrastructure.

I couldn’t help but think about, years ago, when I joined my father. We were planting vineyards. His planting regime was 495 plants per acre. Of course, today we’re planting over 2,050 vines per acre. When we do that difference…. It didn’t get there all at one time. It involves a lot of planning and research that goes into that.

What does that actually mean? I’m thinking about the infrastructure that’s in communities, which is already built for a certain amount of density, and what that is.

Now, I know that there’s $51 million being talked about and being proposed for infrastructure. I don’t think that the government has a number on that. I think that number is very light, and I think that communities are going to be faced with simple things.

I mean, if you know a little bit about pipes…. They have a certain amount of flow, based on pressure, that they can carry, whether it’s a two-, four-, six- or eight-inch pipe. Under pressure, they can deliver so much water. But over time or over the length, there’s a friction loss that occurs so that water and things that are under pressure diminish over time, and that has to be taken out.

I don’t see any suggestion that there’s going to be a comprehensive review of some of these issues that communities are going to be faced with. In time, I’m sure that their engineering departments will collaborate with their planning departments, and they’re going to come up with this. I mean, they’re already talking about — they know at a high level — really what the cost is going to be.

Take sewer. I mean, in front of my house, just in the last couple of weeks, I’ve had the streets torn up. Actually, it has been longer than that. It has been since the start of September. They’re putting in a new storm sewer. I mean, the size of the pipe went from a measly 12-inch, whatever that is in millimetres — probably about 200 millimetres — up to a 900 millimetre pipe. It’s a huge pipe. It costs a lot. It takes an awful lot of…. You know, forget about the disruption but just the cost of changing that infrastructure and planning it out.

What I really wonder when I look at this is…. I think that this is the type of thing…. You’ve sat down. You’ve figured out: “If we increase the density, we’re going to get housing.” The consequence of making those types of rules, in terms of local government, is going to be not only immense, but it’s going to be untenable.

I look at some of the things that I mentioned — the planting density and things like that. When you lay out a community…. I mean, these communities, the Vancouver Charter and other communities, have been around for well over 100 and some years. Even Kelowna was incorporated in 1905. They’ve been built with the premise…. As they expanded and grew, they had to upgrade the infrastructure. They move out, and they have different pathways, etc.

We’re talking about something that’s being downloaded on top of all of these communities that now fit into this criteria. They are going to have to accept this. I think it’s about 60 communities. It’s an overnight transformation that is going to be put in front of city planning departments, engineering departments. They’re not going to know what to do. The fact that even the responsible cities have said: “Let’s build a zone over here where we’re going to encourage this type of high density….”

I know, in the city of Kelowna recently, we talked about the short-term rental market, and there were whole areas set aside specifically for that particular focus. But in this particular case, it’s not. It’s generalized by saying that if you have a single-family lot zoned R1 or R2, it’s going to be upzoned immediately. How is the city…? How is any council or city or planning department expected to deal with it? There’s no capacity.

[4:00 p.m.]

The other thing about this is…. When I look at the problem…. I think we’ve tried to regulate our way out of this by creating rules. We should be doing the opposite. What we should be doing is finding ways for those…. I’m not going to call them the word that’s often used. But the property development companies that actually have the capacity know how to deal with this, how to build something affordably. And the fact that they get an opportunity to focus in….

Maybe the cities are forced into identifying areas in the city where this is going to occur so it makes sense. Yet actually, one of the things that is in here is about increased densification around transit-orientated communities. That’s quite different in Vancouver than it is in Kelowna or West Kelowna, where we have a limited amount of transit and infrequency of transit.

If you’re expecting people in downtown West Kelowna all of a sudden to be able to hop on the bus and be able to get out to shopping centres or where their kids are going to school and stuff like that, the things that they like to do — go to the arena, play hockey, gymnastics for the ones that like that type of activity — it’s not very practical in communities such as the Central Okanagan and many communities here in the Lower Mainland.

We’re surrounded by the ALR. We’ve got ALR chunks all over the place, acres and acres. That was kind of mentioned by one of the speakers. I think it was the member for Saanich North and the Islands, and he’s talking about the fact that this is that big a change, that it’s that magnitude, and it is.

I can assure you that the ALR was a surprise to many, and it’s taken…. Now since it’s been in for about 50 years, the situation is that there’s no going back and taking out…. Originally, there was an appeal process that has essentially been ended by this government in terms of how much you can build on agricultural land, whether you can have a second residence. It’s limited to local government, the province and First Nations being able to make application to look at changes in the land reserve.

But I can look at the city of Kelowna. You can drive down through areas that are very built up, close to shopping and the highway transportation system, and there are huge swaths of agricultural land that are not going to be developed. I know the land commission, and I don’t disagree with that.

However, I think the idea of putting the pressure, just because Springfield Road in Kelowna happens to be a bus route and it’s close to these other things, that people can function in our community and get around…. It’s built up of neighbourhoods to adjust and adapt to the land commission.

I can remember former mayor Jim Stuart in Kelowna pushing hard to get Benvoulin Road upgraded from two lanes to four lanes because of the neighbourhoods and the connectivity and the fact that it went through agricultural land — let alone the permitting process to do that, but let alone building out the infrastructure.

We’ve just gone through a massive expenditure in an area where we farm in Kelowna. It was over $90 million for the city to put in a split water system to separate agricultural water from domestic users because it’s in a farm area. Some of the land was excluded under the land commission, and people have built houses there. The bottom line was that they were finding water was expensive to treat, so what they wanted to do is to put the domestic users on a system that is treated and agricultural users, like ourselves, on untreated water. That’s fine. But it cost $90 million.

Where’s the $51 million going to go? That was one portion of the city of Kelowna. It doesn’t include Black Mountain irrigation, Glenmore or the other small ones like the Rutland water utilities and stuff like that. There are, I’m sure, literally hundreds, if not thousands, of examples where this is going to occur across the province.

When I read through and I think about all the attempts at what this bill is trying to do, it’s attempting to fix something that hasn’t been able to be fixed in the past. Actually, I don’t recall the consultation going on with communities about how this is going to happen. Maybe it’s assumed that we can turn Vancouver into Hong Kong overnight with the density of that magnitude.

Having lived for 3½ years in Beijing and travelled extensively in these large cities….I heard the member for Parksville-Qualicum talk about the treeless kind of environment that we might be leaning towards. I can assure you that in China, they had a different plan.

[4:05 p.m.]

There are not many birds, or none at all, and of course, there are no trees downtown. The fact is that you end up with these concrete jungles. They do have parklands and stuff like that, but the reality is that it takes away from the character that the people, these communities that have been there for generations, have built up.

What we’re talking about is taking away the fact that there wouldn’t be any public meetings, the fact that the zoning would be automatic, etc. I know that this bill is not expected to come into play until after the next election, but one of the things we’re really needing to do is to make certain that there is some middle ground on this. This is a sledgehammer trying to be used to fix something that just needs some common sense.

The other thing is that when I think about this…. Okay, we’re talking about the commitment to build 114,000 new homes. That was the commitment of the government when they got elected in 2017. I think the number is about 15 percent of those 114 that are actually built. It’s a far cry from what…. You know, aspirational goals are fine, but if you don’t have a plan — I mean a plan to actually get there, meaning you start on that first day — what are you going to do, to do that?

What are the capacity gaps? Is it the land? Is it a case that the zoning is wrong? Where do you need to do it? I know that we need housing all over the place, but what are we doing to try to break down that barrier so that we can get somewhere closer to those 114,000? I see that now it’s up to 130,000 and a different date.

At the end of the day, I still go back to the planning. You know, we farm roughly 450 acres, and at a very intensive density, but it’s taken decades and years to build that out: land preparation, making certain that the water systems are there. In the last water system upgrade, because of the magnitude of the field, we spent probably close to $350,000 just to filter the water so that we’d have enough water of a good quality that would not plug up the emitters on drip irrigation.

I mean, it takes planning, whether it’s levelling, laying it out or having enough supplies, the posts, the plants, etc. Many of those things are coming in from offshore.

When we do that with the housing market, do we have the developers? Do we have the contractors that can lay in the pipe, to do the servicing, the updates and stuff like that? I think the problem is that what this legislation, Bill 44, doesn’t address is: how do communities transition to where they can increase density? What communities are doing a good job?

I know that the mayor of Burnaby was in the news this morning talking about it. They’re frustrated because they thought they were doing all the right things, building highrises, etc. Of course, there are sections and swaths of their city that still are one-zoned, and Burnaby has been around for a long time, outside the city of Vancouver. At the end of the day, what’s the gold standard? Or who’s got even a silver — or whatever the standards are — and says you need to be more like Burnaby or somebody else like that?

I think that what is, sadly, lacking here is that…. Okay, if we find a way to upzone, where’s the capacity? In the development community, we already have problems. I know the Minister of Transportation is in the House here. He and I have spoken in estimates about this. How is it that the Ministry of Transportation and a couple of other ministries are part of the problem in developing within 800 metres of the centre line? Essentially, it’s taking up to two years to get developments approved in that.

What I’m saying is that the province has to be part of the solution on all of these fronts. They can’t just kind of arbitrarily put that in and then expect that these things can happen, even the good developments that you want. I think that that’s an important part of what we need to talk about.

I’m worried about the fact that the effect of what we’re doing here is not going to get the outcome that people are really looking for. I mean, we’d like to have more affordable rentals. We’d like to have more housing. We’d like to have it in all the different areas where people can expect to be able to buy. We’ve chosen, intentionally, to add improvements in climate protection and the built environment. I know the built environment is a big part of CO2 emissions, about insulation and those things.

[4:10 p.m.]

The building code has moved to a step system. It’s moved up so quickly that it’s added over $50,000 per unit, in today’s costs, whether it’s glazing or some of the other things. I’m not certain it should have been done. Is the system for Fort St. John or Fort Nelson the same as the one on the Sunshine Coast or in the place of Vancouver? There are climatic zones in this province. I think that’s one of the things we’re missing.

In this particular bill, Bill 44, it talks about building…. We’re going to create 130,000 homes over the next ten years. It doesn’t actually tell you how, other than the zoning part of it. By contrast, CMHC says that we actually need to build 610,000. Well, the population of British Columbia will be well over six million by that point.

We’re going to have to think about where all the population is going to go. Do we want to have, the way I described, a highly dense community or city like Hong Kong or some of the other cities? I mean, there are lots of them — Kuala Lumpur, Singapore. I have spent a fair amount of time in all of those cities. The reality is that they’re all very different, and a lot of them do have differences you can actually see. Is that what we want for the Lower Mainland, built around the ALR and stuff like that? I think we have to look at this.

Where’s the infrastructure to supply this or to backstop this with transit? I mean, I know transit-oriented development is desired. It’s Bill 16, I think, earlier in this session that we passed…. The idea was that we were going to make that a priority so the Ministry of Transportation could easily make that happen. I totally agree. I don’t think that there’s a problem there.

However, the transportation links…. I know we’ve announced, or the government’s announced, the Surrey-Langley SkyTrain extension. But what about the other communities that are…? Every day on Highway 1 heading out to Abbotsford, Chilliwack, Langley, it’s gridlock. The reality is that if we want to absorb the 610,000 extra homes, we’re going to actually have to do something more in transportation. It’s going to take a huge amount of planning and infrastructure to do this.

We do need to work as more of one entity working on this, but we can’t work where we’ve got the GVRD pitting against each community, the 31 or 33 different jurisdictions that are in there. The situation is we have to be able to make certain that we can get to a place where the services are there.

I know that the government probably isn’t particularly proud of the highest rents in North America. But on top of that, we also have…. Well, the highest rents in North America. A townhouse is up 33 percent, just in terms of costs; and a single-family home, approaching $2 million.

The targets are only about 75 percent of the real need, according to CMHC guidelines. Robert Berry, for the pro-density group Homes for Living, said in the Vancouver Sun that the NDP is taking the politically convenient route with moderate targets that don’t solve the core issue. Brendon Ogmundson, the chief economist for the B.C. Real Estate Association, notes that if targets are met, they fall short of what’s needed for affordability. These are a couple of experts. Certainly, I know Brendon Ogmundson myself, and I know that he’s not throwing these words around.

The reality is that we have to really come together if we want to find a long-term solution in this that’s going to make a difference in terms of availability, affordability and to make certain the communities don’t become completely destroyed by the fact that we’ve put in some convenient tool that the government’s using as a hammer, as I said, or a sledgehammer, to making these things happen, in terms of getting the building done.

Too often I hear from the government that the development community is evil in some way. There are good and bad people in the world, and I think we heard that on Bill 42 the other day. As a matter of fact, it was brought up again today — about the renters that are maybe bad renters. Well, there are bad landlords too, and we acknowledge that in between. In development, there are people that…. Clearly, there needs to be rules and guidelines to keep them in line.

[4:15 p.m.]

On the other hand, we’re never going to get to where we need to get to unless we can make certain that we bring along the best developers, encourage them, provide incentives and being able to work together to do that. They are trying, but once we get going on this, where is the provincial government, in terms of helping bring in the people that can do the plumbing or the earthworks or the other things like that? We have a role to play in this in terms of attracting the people that can actually physically do the work. We can’t build all of these homes without the people that are here — carpenters.

I know that there’s a whole business about legislation about fast-tracking and doing that, but I do think that there is the minimum standards when it comes to these things. We have to make certain that we have journeymen in all the different professions to make certain that the housing is safe, and not just taking somebody that says: “Oh yeah. I was an electrician back where I came from.” There is probably an expectation under CSA that our standards are going to be met.

Recently Metro Vancouver announced that it was going to triple development cost charges on new housing, adding up to $25,000 to the cost of a new home. I think that that’s unprecedented. I know they face cost pressures, but we have to be more innovative in terms of what local government is doing in getting to the end result, which is actually faster approvals and making certain that everybody knows what the rules are.

One of the things that I was most impressed by at UBCM was a seminar I attended with the city of Kelowna, the city of Vancouver and Microsoft. It talked about the fact that they wanted to see what they could do about improving the processing of building permits, so they took all the building permits they had and they said: “Okay, let’s see what we can do in 24 hours with all of the applications we have.” They made a list of not exceptions, but they said if it meets these criteria and it’s zoned properly or whatever, we’re going to improve them.

They were amazed at how much they could actually clear of a backlog by doing that, but then they said: “Well, what do you think we could do in 24 seconds?” They went ahead, and they started working on a process that is actually implemented right now, today, where you can scan the documents, fill out the applications online, and if you have everything, you’re actually going to get your permit right away. They’re taking this software, and they’re going to share this with every municipality in British Columbia sometime before the end of 2023.

Not every community is ready to go with that type of approach. However, it gives them the technology and the ability to improve processing times. Why can’t we use that in other areas? Why can’t we look at the way that what makes us take so long to get certain things done or whatever? What are the ways that we could innovate? Those are the types of things I think with the local communities that we should be working on.

Bill 44 brings in the sledgehammers I talked about before, saying we’re going to impose this on you. I hap­pened to look. I think it’s 142 units per hectare they’re talking about under that. Well, just looking at some of the cities that are out there, they’re far below that. I know the city of Kelowna is at 17 units per hectare.

Well, they could do better, but the reality is that they have devoted an awful lot of time to concentrating development in the downtown core, where they do have transit walkability, and what they’re trying to do is make it in a logical manner, moving out from the centre of the city.

I think that when it comes to the other things that we want to do, we need to still attract people to our communities. We don’t have the workers now. What’s it going to be like in five or ten years if we can’t resolve this housing thing? It’s not going to get cheaper by just being able to increase density. We have to have all hands on deck — the developers, the people that are doing the building, the people that want to live there and are going to get paid a living wage to work there but can afford what it is that we’re offering.

One of the things about the details in this particular legislation, Bill 44…. Obviously, there’s a lot of vagueness about what it is that is in the legislation. Most of it or…. Moreover, there are large portions of this legislation that won’t come into effect until after the next election. So what does that mean?

[4:20 p.m.]

It means that, really, we can say that we’re doing something, but we haven’t actually delivered on it. I think that after this amount of time — and by the time the next election rolls around, the government will have been in place for eight years — I would assume that it would be reasonable to think that the government should have been able to make progress, not just legislative progress but being able to really deal with the elephant in the room.

The interim housing needs report doesn’t need to be completed until after the next election in December of 2024. The OCP plans don’t need to be redesigned until December of 2025. I guess when I read that, I’m kind of thinking that we’re going to be stuck in this rut, if you want to call it, for at least another year and a half, maybe even longer. We don’t even know how we’re going to fix this in terms of the magnitude of all the infrastructure that this is going to impose on communities.

Let’s talk a little bit about taxes and the cost. Over the last seven years…. I know that the government doesn’t like to hear this, but there have been 29 new and increased taxes that have been added. Some of the taxes, like the speculation tax, were supposed to create and free up more housing, etc.

What really has happened is that the situation is that the speculation tax did…. It targeted those people. But things that have really added to the cost of buildings, etc.… I know that there is a large debate on MSP, which was in place, was about to be reduced by half, but the situation is it’s been replaced by the employer health tax.

What about the employees that have now five paid sick days? They’ve also got minimum wage that’s gone up. I’m not saying that that shouldn’t be happening, but these are government-imposed costs that have been put onto the construction industry and the building community and the people that are putting in the pipes in the ground, etc. Frankly, if you want to know why things aren’t affordable, you’ve got to look in our own backyard, and that’s some of the things that we’ve already made.

I call it a massive amount of new taxes and stuff like that. It’s not just taxes. It’s about the fact that goods and services…. We talked about fuel costs and things like that, but the carbon tax has more than doubled in the last seven years. That’s a tax, and that adds to the cost of getting concrete or building materials or any of the…. Even the smart builders that use prefabricated buildings and stuff like that have to add that cost to what they’re building.

I think that what we need is more competition, and that’s what we’re going to be advocating for. I know that as we move towards, inevitably, another election, we’re going to have a plan that’s going to be exciting. It’s going to talk about green urban density over unmanaged sprawl.

Our record speaks for itself in terms of the fact that these housing problems don’t happen overnight. They take time to develop. But what’s happened is that we need to get back to where we have an environment where people want to do the things that they need to do, and incentify. We need councils to do that. We need smart, thoughtful legislation that’s going to help make certain that these things are going to take place over the next few years.

We’re not going to solve the problem in the next ten years. There’s no single solution that’s going to solve these problems.

Thanks very much. I look forward to committee de­bate on Bill 44, finding out all the solutions to the questions that I still have.

C. Oakes: It truly is my pleasure to rise today to speak to Bill 44. I think all members in this Legislature want to find solutions for housing, for people across British Columbia.

I think what you will hear today, at least certainly from our side, is a thorough review of the consequences of legislation, such as Bill 44, being brought forward, that is in fact creating a level of uncertainty in British Columbia, that is causing a loss of competitiveness in British Columbia and ultimately is having a significant impact on people, on housing, on services, on the labour force in British Columbia.

[4:25 p.m.]

Look. There are many members in this House who proudly served on their local governments. I can share with you that I had the great privilege to serve on city council in Quesnel for two terms. I also had the privilege to serve on the North Central Local Government Association, and later I had the privilege to serve as the minister responsible for local government.

So some of what I bring to this conversation today is perhaps a little bit of a reflection on some of the experiences that I had through those multiple privileged opportunities I had to serve but also just a review of the disconnects in this legislation.

The first, which I’m going to identify as one of the most significant barriers to outcomes by the NDP government, is the operational silos that we continue to see in multiple pieces of legislation, regulation and policies that come forward in this House. This understanding, or lack of understanding, of the various complex legislative frameworks that exist in multiple ministries and how they should be connecting or ensuring that there at least is some oversight in this….

I will start with my greatest surprise, which is the lack of understanding of how local governments work and the legislative frameworks that govern local governments. The policy that’s brought forward in this legislation — not only is it, in essence, a downloading on local governments…. I encourage all local governments in British Columbia to pay attention to this piece of legislation and future pieces of legislation because it’s going to have unintended consequences in your community. But just the framework or disconnect that this government doesn’t understand….

In the press release to this legislation, it talks about two particular acts. It talks about the Vancouver Charter and the Local Government Act. But it fails to even recognize the Community Charter.

To the government, just a reminder that the Community Charter provides the statutory framework for all municipalities except Vancouver. So here you have brought forward legislation…. So am I to understand that under the Community Charter, all municipalities are actually outside the scope of this legislation that has been brought forward?

Municipalities, when you’re looking at the densification, have a significant role and opportunity to play on that. I know that for many members who have sat in local government, one of your first briefings you get, that policy manual you receive when you are newly elected, is about the roles and authorities you serve as elected officials and as local governments — your responsibility.

One of the changes that came in place, at least during the time I was in local government, is around the local government capital assets framework, and particularly looking at the community life-cycle infrastructure costing responsibilities and fiscal demands that local governments need to review. So community life-cycle infrastructure costing helps local governments estimate the entire life-cycle costs of infrastructure such as water, sewer, transportation; for different land use patterns — for example, compact versus low-density development.

New development and land use planning decisions require careful consideration, as they affect the scale, scope and type of infrastructure needs. The full financial impact of these decisions will influence the long-term community sustainability and resilience. The community life-cycle infrastructure costing tool can help local governments better understand the long-term cost implications of these land use decisions.

[4:30 p.m.]

So local governments have been utilizing these tools, but now, all of a sudden, you have a piece of legislation that’s coming forward that changes all of the predetermined work that has been completed by local governments to build business cases for the development of more compact, complete, connected and centred communities. They have been doing that, and the tool fosters integrated, informed decision-making, with the potential to deliver more cost-effective and resilient land use decisions.

Today’s legislation — I am curious around how the com­munity lifestyle infrastructure costing will be im­pacted.

Then we move into the other aspect of local government, which is the mechanics of asset management. The asset management policy is the foundational piece of local government’s approach to asset management. It is always desirable for a local government’s operation to be guided by consistent, applied policy and documented procedures.

Well, this legislation, all of a sudden, says, “Okay, we’re going to throw that out the window,” but I don’t know, around the policies, if you actually can, with what is being brought forward today. The asset management policy sets out direction and guidance for staff undertaking asset management across the organization in a systemic and coordinated way, and in a manner that supports the local government’s goals and objectives.

There is an asset management strategy that summarizes the local government’s asset management plan to provide an overall corporate view of longer-term financial requirements: adhere to a risk-based approach, where critical assets are prioritized; consider the costs and benefits over each asset’s life cycle and strive for financial sustainability; include an appropriate level of stakeholder engagement, including potential users; outline a set of objectives and key performance indicators related to maximizing asset benefits and information management; and identify functional and conditional requirements for assets and to be reviewed regularly.

An asset management plan is an activity plan that in­forms the local government’s financial plan. It defines the activities required for a particular significant asset or asset group, maintenance, refurbishment and ultimate replacement, and identifies the associated costs. These asset management plans are routinely updated through ongoing condition monitoring and should become increasingly accurate over time.

Well, you just took all of that and created significant uncertainty and lack of clarity for local governments across this province. Major capital asset groups include transportation, drinking water, sanitary sewers, stormwater, buildings, parks, vehicles and equipment. An asset management program is an ongoing process that a local government uses to identify asset needs, such as maintenance, rehabilitation, replacement and financing, based on updated inspections and condition assessments at specified intervals. Such a program is generally led by a local government’s engineering program.

The financial sustainability of local governments is driven around this asset management plan, but now we have a piece of legislation that is…. I’m not sure how they’re going to be incorporating the work that has been done in the past, because all of a sudden….

I could be wrong, but when you’re increasing the den­sity in communities where you may have an asset management framework in a local government that sets forth, “This is what we have for the needs for water, sewage, storm drains, all of that infrastructure, and now we are densifying through a piece of legislation that doesn’t have any correlation or connection to frameworks that are required by local government,” that is going to be a significant challenge. I’m not even sure of the legalities of how that will actually be considered.

We talk about local governments, and we talk about the infrastructure requirements that local governments are required…. There is significant work that local governments do to make sure that they’re meeting their responsibilities that are set out in the Community Charter, the Local Government Act and the Vancouver Charter.

The next piece goes to: why is this government not taking a far more proactive approach on actually fighting for British Columbia at the federal level?

[4:35 p.m.]

I went back through my notes from my time in local government. Then when I served as the minister for local government, in 2013, we went to Ottawa, and we got $2.37 billion for the Build Canada fund. That was specifically designed understanding that if you want housing in communities, you needed to make sure that you have all of the infrastructure I just mentioned in communities.

It’s one thing for the provincial government to say, “Look, we’re going to build housing,” but when there is a disconnect in understanding that there is going to be required funding to make sure infrastructure is in place, that’s a huge disconnect.

If all of a sudden now that conversation is being said, “Okay, local governments, we’re going to download this on to you, and you can work with the building community to come up and recover those costs,” I can understand why we’ve seen a significant reluctance of capital coming into this province, of investment coming into this province, because of this level of uncertainty and basic lack of understanding on how local governments actually work.

I went online prior to standing up today to actually look at…. If I’m a local government, and I go on to…. There is the website that we used to have where you can access gas tax funding for local infrastructure projects. And guess what. There’s nothing open right now.

So here we have a piece of legislation that is before the House that’s going to have significant consequences on local government, and lo and behold, if you go on to the website to find out if there is any financial support for local governments to move this forward, there’s not. So I can understand why local governments who are tuned in to this piece of legislation are incredibly concerned about this.

Look, there is only one taxpayer. Whether it’s the federal government, the provincial government or the local government, we all have to collaborate and work together to make our communities the best that they can be and ensure that we have services such as running water, sewage, storm drains, all of those things that are required in communities.

The fact that there is…. I don’t know if it’s hubris. I don’t even know what to say when repeatedly in this House we have a government that likes to hold everyone else to account for what is happening in communities. They download, but they’re not there to collaborate. They’re not there to help actually solve the problem.

We’re tired of rhetoric. We’re tired of not having outcomes. Quite frankly, I’m tired of the fact that there is no housing for people in British Columbia because of the policies, the decisions, the uncertainty that this government is delivering. We can do better. We have to do better.

I have a few solutions that I would like to present today before this Legislative Assembly. Look, I have heard multiple times in this House…. In fact, I heard today members of the NDP who talked about: “Well, what did you do?” So I mentioned the fact, in 2013, as a new minister for local government, we went to Ottawa and made sure that we got $2.37 billion to help support infrastructure in British Columbia. Part of that was $148.5 million in clean water and wastewater fund that enabled local governments to build infrastructure necessary to ensure British Columbians have reliable access to clean water.

We also looked at the cumulative effects framework and included policies, procedures and tools to improve the asset and management of cumulative effects in decisions related to local governments.

[4:40 p.m.]

We looked at how we could create a more accessible action plan. We had Accessibility 2024, a ten-year action plan to make B.C., the most progressive jurisdiction in Canada for people with disabilities. We made sure that as we were building our communities and our housing strategies, we had a plan that encompassed everything from how you look at building the community…. Where’s the labour force to make sure that that building happens, to make sure that the types of communities that you are building are inclusive and accessible?

Let’s talk about the other challenge that this NDP government has not quite attuned to understand what is going on, on the ground. That is about our workforce challenges.

There are decisions that this government makes, and yes, every government makes priorities to understand the investments that are needed to have results. Well, I am proud to stand in this House and talk about a five-year B.C. jobs plan that clearly connected all pieces to how you grow the economy, to make sure you are connecting it with investing in people and getting them the skills that they need but understanding that part of that jobs plan is investing in communities, making sure you’re building out communities, making sure you’re investing, as I said, in water and transportation infrastructure and making sure that you don’t leave people behind.

I look at our communities right now in British Columbia, and, boy, do I see a lot of people left behind. I cannot believe we are living in a province where the outcomes are so incredibly poor. Go to any one of our communities and look at what’s happening right now. While the government likes to blame every other person, they need to look at the mirror. They need to understand that the policies and the regulations that they’re putting in place are leading to the consequences that we’re seeing right now in our communities.

I stand before this House because there are definitive things that this government can do to make sure that the services that people require in our communities are there.

Let’s start talking about skilled-trades seats across this province. This government likes to talk about the investments that they’re making. But let’s actually look at the seat counts. Let’s actually have a clear picture of how many new seats are actually out there right now for the skilled labour force.

You know what, in my community, one of the most successful programs we had was? It was called the Shoulder Tappers program, and it was a program designed to go into elementary and high schools to talk about the incredible opportunities that there are in the skilled labour fields, whether it’s construction, whether it’s electrician, whether it’s automotive — you name it. The NDP government cancelled this program. They cancelled programs that made sure that our kids understood the incredible opportunities there were to be a skilled labourer in this province.

So it should come as no surprise now that after two terms, we don’t have the people to actually build the houses that we need. It’s great to bring in legislation that continues to confuse and to create uncertainty. But have a look at the fact that there were things that this government cancelled, that we are seeing, today, have real consequences in the fact that we do not have the skilled labour workforce to build the housing, the density that is required.

There are a few programs that this government could certainly bring back. And how about growing the seats in communities right across this province? Why not start looking at our rural colleges?

Do you know, in other jurisdictions in the east, that they’re investing in rural colleges? They understand that the challenges that rural colleges and post-secondary institutions are facing right now….

[4:45 p.m.]

Inflationary costs are very real, and what has happened from an operational perspective…. Post-secondary campuses, specifically in rural communities, are having to reduce a lot of these programs that have significant costs to them.

So it should come as no surprise that if it takes six years to complete your carpentry program, a lot of those people decide that, “You know what? I can’t wait six years to get the college credits needed or the skills credits needed to complete that,” so they’ll make a different decision. That is certainly something that this government could look at.

Another thing I was proud we did to help support communities that were facing those significant growth opportunities was the Northwest Readiness program. I was proud of that program, because you know what we understood? We understood that local governments required capacity and that when you’re looking at the type of growth that is happening in some of these communities, often, whether it’s the planner department, the engineering department, look….

In a lot of these communities, those services are…. It’s pretty hard to find, especially in some of our more north­ern communities. You know what we said? We partnered with the University of Northern British Columbia, the planning school, and said, “Look, we are going to invest in making sure those students — that we connect them up to these local governments where that capacity was needed, and we’re going to invest and grow that program.”

Every time this NDP government stands up and blames municipalities, I think of that program. I think: why has this government not considered for a moment that perhaps if they invested in, I don’t know, additional seats and some of the planning schools in this province, provide incentives for those planners to go into local governments…? That would be one way to streamline and actually see results in our communities. It was something that worked.

I can share with members of this Legislature that those members that went through that planning program in UNBC are now some of our CAOs — some of our leaders in many of our municipalities in this province. It worked. So instead of pointing the finger and blaming people, start looking at solutions. A good place to start looking at solutions is looking at some of the incredible opportunities we have in our post-secondary sector across this province.

I hope that this legislation will be bold. I hope that this will look at some of the incredible projects that I’ve had the ability to review, such as Vancouver Community College, a pretty significant opportunity for this government to look at how you can have densification near transit lines. I encourage this government. That would be great. That would be something really positive to look at.

I hope that if my comments today have any takeaway, please look at the plan that the Vancouver Community College has put forward, because I think it’s a solid one. I think you should talk to UBC, and I think you should talk about the transportation options. I think that there are some really good opportunities there around densification and looking at how that whole region and how campuses can be these incredible communities. I encourage the government to go back out and talk to these post-secondary institutions.

I’m asking this government to stand up for British Columbians. Stand up. Go to Ottawa. The last Build Canada negotiations, the bilateral agreement, was done in 2013. I had the privilege to be a part of that. It was a ten-year plan. Guess what. Where is the next Build Canada plan? Where is the next plan to make sure local governments have access that they need to actually build that incredibly critical infrastructure?

[4:50 p.m.]

Sometimes the decisions around infrastructure development and local governments are difficult, because one size does not fit all. I can share with members of this House how difficult it is, as a small community, to come up with the necessary funds that they require to put in critically important wastewater, wells and drinking water.

I just heard that Prince Rupert is on a boil-water advisory. I’m pretty sure I heard some victory laps from the government on how well they’re doing up in that area. Why are they on a boil-water advisory? I can go across this province, talk about the communities, the local governments that I met, and create the list of the structural challenges that are needed.

I guess, as I close my comments, the other challenging piece of this legislation is that it talks about the requirement to look 20 years out. I am a supporter of long-term planning. I think that’s critically important for us, but from an asset management perspective and from the frameworks, the bylaws…. I just had a brief look at the municipal requirements and bylaws, the requirements even around the Supreme Court hearings, the practical aspects and responsibilities that local governments have.

I’m not sure how a piece of legislation comes forward and says, “We want your 20-year plan,” when even the accountability framework — where I started my speech today, or my discussion — talked about five years. In the official community plans and the asset management plans, they’re all in five-year cycles. All of a sudden, this is a provincial government that says: “Well, you need to plan for 20 years.”

Who knows what that’s going to look like? Who knows — when you look at the investment, the reinvestment, the asset-management piece of all of that — how a local government now gets downloaded, with limited capacity? Quite frankly, there aren’t enough planners in this province to even help local governments get to what this legislation is meant to do.

How are they going to move this piece of legislation forward? Planning capacity, engineering capacity, is a significant challenge across this province. There has been no movement from this government to address that.

It’s one thing to bring this type of legislation forward; it’s another thing to make sure that you’ve done the cross-ministry review. Clearly, that has not happened, understanding the responsibilities in the local government ministry. I know that there are a few other ministers who’ve had the local government file in this House and know the realities, the consequences and the legislation that this piece of legislation is now going to supersede, if it even can.

Local governments are critically important in this prov­ince. I think this government needs to listen to them and understand the consequences of the decisions that they’re making. As well-intended as this legislation may be, the consequences of what they are bringing forward are going to create continued uncertainty and are going to have impacts opposite to what they’re trying to achieve.

J. Sturdy: I am pleased to rise today to speak to and participate in this important debate. It truly is one of the most important debates in British Columbia today. The housing issue intrudes on virtually every conversation that you have, be it around the dining room table, at the campfire or in any of the meetings that many of us have on a daily or weekly basis.

[4:55 p.m.]

Just last week, I met with all three of the librarians in the Sea to Sky, talking about the future of libraries in our society and our region, identifying major issues, challenges and opportunities.

Of the issues, affordability was the dominant one, be it fuel prices, lack of transit or food costs. Ultimately, housing was the number one issue: the cost of housing, the cost of rent, the cost of development, and implications for staffing the library — specifically the examples of recruitment that have gone sideways. Recruit them, and they come in, they start, they work for a bit, and then they’re just forced to leave. Then libraries or businesses have to recruit again — lost opportunity, costs to businesses and costs to libraries.

It’s interesting to see what those impacts of housing are on the visits to libraries as well — increasingly, people spending all day in the library because they’re living in their car and it’s a warm, clean place. They’re running their businesses out of there, to some degree. They may be getting more privacy, ironically enough, in a library than they get in their own home or the place that they live. With multiple people living in a room, you’re lucky to have a room to yourself in the Sea to Sky, and you’re paying $1,500 for that privilege, for a room.

Zooming, for example, is really interesting. This is something that libraries are increasingly having to manage. They have to account for people who are holding Zoom meetings or business meetings in libraries, in coffee shops or in public spaces. They need to be able to facilitate that. This speaks directly to how desperately housing is needed.

Housing is top of mind for every British Columbian, and we need to ensure that we’re making the right deci­sions for those that are living here now and, truly importantly, for those who will be living here in the future.

Everyone in this chamber knows that we need to build more housing, but after seven years and a couple of elections, this government has repeatedly failed to do so. This province needs a better housing plan than what the NDP is offering. After multiple terms, multiple years and multiple promises of 114,000 government-built homes, 15 percent of those homes are all we have open today — a shocking lack of results. I think that amounts to about 17,000 units out of a promised 114,000. Pathetic, I would say, but that’s not new.

The price of housing is higher than we have ever seen. Whether you’re a renter, an owner, a senior or a young person, right now too many British Columbians are struggling under the weight of steadily increasing costs. After seven, going on eight, years, the government hasn’t been able to take action that’s effective, and it doesn’t take responsibility — in fact, it frequently deflects.

B.C. now has the worst housing affordability in North America. Rent now costs over $3,000 a month for a one-bedroom apartment in Vancouver. The price of a Surrey townhome tripled from $300,000 in 2012 to close to $1 million today.

The government is claiming that Bill 44 will help build 130,000 homes over the next ten years. Over eight years, the result was 17,000 homes, of their 114,000-home promise. So the idea that we’ll build 130,000 homes over the next ten years is stretching credulity.

[5:00 p.m.]

CMHC is suggesting that we need to build over 600,000 housing units, by 2030 here in B.C., to restore affordable housing. Certainly, I can believe that, in working through my own assessment on this. Considering that the federal government is suggesting they’ll be bringing in half a million people per year….

This is sort of my back-of-the-envelope calculation. So half a million people per year — B.C. is likely to see a third of them, which is about 165,000. Stats Canada suggests we’re seeing about 9,000 births here in B.C. — a quarter or 35,000 to 40,000 new British Columbians born in the province each year. So it’s, essentially, over 200,000 new residents of this province. If you divide that by three people per house, about 65,000 to 67,000 units a year will be needed just to keep up.

[S. Chandra Herbert in the chair.]

Now, that doesn’t deal with the people who are currently underhoused. And in the best year ever, we saw just over 47,000 units built. So at best, we’re about 20,000 units a year short in terms of supply — 20,000 units a year short, just to keep up. Again, that’s not really dealing with the underhoused.

Given that interest rates are where they are and housing starts are dropping and quickly, we’re in quite a difficult cycle right now, and it’s certainly not looking at all positive. B.C. has the highest rents in Canada and the worst housing affordability in North America. The ownership of a townhouse is up 33 percent to $1 million; a single family home, approaching $2 million. These housing targets that have been set in this bill will really only achieve, or are set to achieve, about 60 percent of need.

Some comments that have been published just in the last few days about this legislation are that it’s a politically convenient route with moderate targets that don’t solve the core issue. Or the chief economist for the B.C. Real Estate Association notes that even if targets are met, they fall short of what’s needed to achieve affordability. I don’t think there’s much question about that.

As part of this legislation, the DCCs, or the development cost charges, will be expanded to include other costs that local government is required to deal with in development scenarios. Then the community amenity charge process — which has always been a bit suspect, as time has gone on, as it gives local governments a chance to extract additional funds out of development — will, I understand, be formalized and incorporated and tied together with DCCs so that there is not a chance to overcharge.

I think, ultimately, it’s a good initiative. The CAC amendments will certainly be, I think, supported by the building community. But does this, and how does this, affect affordability? It certainly doesn’t, or it’s unlikely that it will, contribute to making housing less costly, which has got to be our objective here, nor does an increasing reliance or advancement or embracing of increasing building step codes.

[5:05 p.m.]

Ultimately, the implementation of step codes for new buildings is going to add significantly to the cost of a home, due to the complexity of these new buildings — these high-tech mechanical systems, ultra-high-performance types of technologies, building insulation, new requirements to make building much more complicated — and will increase the capital cost of these buildings.

This is a real challenge in many respects. There are two choices you have. You can have a higher capital cost and a lower operating cost in the long run, when it comes to energy, or you can go with a lower capital cost and a higher operating cost. A higher capital cost just means a higher barrier to entry. It’s a choice, and it’s a choice that is increasingly being taken away from people.

It also is difficult to imagine that any individual will ever be able to build their own home, as we make housing increasingly complicated. Historically, this is how many people built equity. The new building requirements are very complex, and they really prohibit the homebuilder from being able to enter into the market and take advantage of their own sweat equity.

I don’t know if it’s…. Clearly, GHGs are one of the things we’re trying to limit. I think there are ways we can do that. Clean electricity certainly can serve our purpose there. But increasing step code requirements are putting housing out of the reach of many.

You know, I have to admit a certain self-interest here in that I built my own house. I built it well, but it’s not a complicated house. It’s electricity and an efficient wood stove in rural B.C., no new added carbon. It’s a low-impact house; it’s low-tech materials. It was very inexpensive, but in the future won’t likely be possible.

Another piece I was hoping we were going to see some change on was an opportunity for inexpensive and innovative solutions like tiny homes and an allowance for tiny homes. We were hoping to see them incorporated into an upgraded building code, and that hasn’t been seen and doesn’t look likely to be seen in the short term. This, again, gives access to housing in a very affordable way.

Some of the consequences of housing affordability or lack thereof: despite the 35,000 to 40,000 children born in British Columbia annually, birth rates are at a 15-year low of kids born in B.C. In part, certainly, it’s around housing affordability or being underhoused. It’s a real concern for residents around the province. It’s a real concern for residents of the Sea to Sky because the dream of homeownership is fading fast.

Having children in a one-bedroom is not really reasonable, and to think it is, is really out of touch. The cost of kids — I think as we all know, or many of us know — is already astronomical, and then having kids in a small apartment is virtually impossible.

It’s a conversation in my house. I have two daughters, both live in small units, in their early 20s. The opportunity to have kids is affected by…. The decision to have kids, perhaps more accurately, is affected by housing, by where they live and the housing costs being increasingly out of reach.

[5:10 p.m.]

In terms of the specifics of the bill, largely, it is an en­abling bill. Certainly, this is a pretty standard procedure, again and again and again, we see from this government, a bill that enables them to provide the details later. This is a major gap, because we have no ability as a Legislature, as a democratic institution, to explore the details and the specifics of a bill.

Nearly all the details on this legislation, how this legislation is going to be implemented, are supposedly going to be contained in a policy manual, which will be published sometime early next year, with any luck. This missing policy manual is said to include important information, which is information like the practical details on things like setbacks and height restrictions and parking — although some of the parking issues have been covered, or at least there’s an expectation that they’ll be waived — and lot coverage.

These are details that developers and communities in my region have certainly asked me about, and I wasn’t able to answer. These are important details and details where the rubber truly hits the road, and this is what communities need to see. This lack of detail makes this bill little more than campaign literature — empty an­nouncement, no details, no tracking and, if history is any indicator, poor results.

Some of the details that are important to communities in the Sea to Sky, like Whistler, are these types of issues, be it parking or other restrictions. There’s an approach that could…. In fact, this bill in many ways could fundamentally destroy what Whistler is. Whistler meets the criteria. It’s over 5,000 people. I think it’s about 12,000 or 13,000 people. All the subdivisions in the community are in the urban containment boundary. Most lots are larger than 280 square metres. But what differentiates Whistler is a building cap, a desire to not see sprawl, a desire to contain development into the community.

They have about 63,000 bed units. They do have nightly rentals. Incidentally, the Airbnb, or the nightly rental legislation that we dealt with the other day, isn’t applicable in resort communities like Whistler. They do allow nightly rentals in certain zones, but many are single-family lots in Whistler — fee simple lots, increasingly owned as second homes. Unfortunately, residents are increasingly priced out of the market.

Now, I see that this is a…. It seems like it’s something of a contradiction, but for the last 30 years, Whistler’s had an employee housing policy objective. The goal was to house 70 percent of the employees that work in the community in the community. Frankly, they have been successful. I think the number is closer to 80 percent, so 80 percent of the people who live there work there.

Over time, this has been successful, through the Whistler Housing Authority, where there’s a limited number of employee-restricted ownership options. Then there’s an ever-increasing number of employee-restricted rental options. Then there’s the Whistler Valley Housing Society, which is beginning to deal with social housing.

However, because of the limited number of fee simple, unrestricted properties that are increasing in value, because this is a basic supply-and-demand issue, it is a long-range concern.

I’ll certainly acknowledge that in a globally attractive community, a single family…. For example, today I had a quick look online. A single-family lot, a house in Whistler, is…. I mean, an old Gothic in Emerald is worth $3.3 million; a lot in the subdivision of Alpine is $1.9 million.

The minimum house you could find in Whistler is about a million and a half. Heck, a parking spot I saw for sale in the village was $189,000. These are pretty incredible numbers, but this is a unique community and a global resort.

[5:15 p.m.]

What happens if this legislation is imposed on Whistler? Well, it could be incredibly and unbelievably im­pactful on this community. The bed cap would essentially be gone. We could see a quadrupling, or doubling, certainly, of the population.

The building lot price may potentially come down, but builders will certainly be salivating at the opportunity. With no speculation or vacancy tax or foreign buyer tax in Whistler, the builder could take a 10,000-square-foot lot for $2 million and put four houses on it at $2 million each. I’m sure that would not make the place more affordable, but it would have some really significant unintended consequences.

As Dan Wilson of the Whistler Centre for Sustainability said to me…. I thought this was quite interesting. He said:

“I’m quite concerned with the cookie-cutter approach being suggested and recognize that this will do very little for affordable housing in Whistler. Instead, this policy may be one of the greatest development giveaways in Whistler’s history and undermines most options to create affordable housing from infill with the condition for affordable housing.

“As proposed, the legislation will only result in significantly more vacation homes and add to peak visitation in Whistler with­out fixing the affordable housing situation and employee shortage.

“As you know, the development pressure and cost of housing in Whistler is some of the highest in the province, and Whistler needs additional tools, not this policy as suggested, to find solutions.”

Honestly, I find it hard to disagree with that. In the case of Whistler, certainly, I couldn’t agree more.

So Pemberton and Mount Currie aren’t affected, as they don’t meet the population criteria. Squamish will be impacted. But they have been focusing on increasing density for several years now, actually more than that. If you’ve visited Squamish lately, certainly you’ll see that that’s true.

But there are consequences of some of these pre-designations, and we’ve seen this in Squamish in the way of OCPs that have been pre-designated and have unintended consequences.

For example, around the downtown of Squamish, there’s an older neighbourhood there with older houses. But it’s designated through the OCP for higher density.

Interestingly, B.C. Assessment, rather than looking at zoning as an assessed value, looks at OCPs now as an assessed value. So B.C. Assessment, based on OCP designations, not zoning, are pushing up B.C. Assessment evaluations. Long-time residents are getting property taxed out of the residence because instead of being taxed as a single-family home, they’re being taxed for the potential of having a multi-storey building.

It’s actually having the net effect of having residents who have lived there for a long time being forced out and being bought out by developers. This could proliferate without amendments to B.C. Assessment’s mandate. I’m sure this is not the intention, but it could be a consequence as increased densities are designated in OCPs.

Parking is another issue that can be a real concern. I certainly get the Vancouver and CRD focus on this issue. But there needs to be some understanding that parking…. We understand that parking, or lack of it, has been a tool for local governments to limit density. But we also need to recognize that not all communities are created equal.

In snow country, street parking is already at a premium. Often it’s limited to one side of the street or the other in the winter. Without those limits, snow clearing would be almost impossible. Already, there are massive piles of snow and buried cars and fire hydrants that need to be constantly dug out. Significant density increases without accounting for parking is frankly unworkable, specifically in snow country.

[5:20 p.m.]

What about servicing and infrastructure? The mention of $51 million for updating plans…. I’m not sure that that’s enough, but it will certainly be welcome. But servicing costs for increased density will be in the billions. Where is that coming from? All communities in the Sea to Sky are already pushing the limits of their capacity.

Sewage plant upgrades are pricey, as this House knows. I mean, I think if we look at the North Shore sewage treatment plant as an example, which is quite an example…. I think it originally was budgeted at about three-quarters of a billion dollars. Now it’s pushing, I think, closer to a billion and a half, maybe more, and still not close to being finished.

What about potable water? Increasingly a challenge. I think of the ongoing stage 4 water shortage, or maybe it’s even stage 5, on the Sunshine Coast with really no end in sight. Yet more density will be coming to Sechelt and Gibsons at the very least, with not enough water.

Transportation. My colleague from West Vancouver–​Capilano was spot-on. Upper Levels is regularly backed up for kilometre after kilometre. Second Narrows Iron Workers Memorial is getting an upgrade. Interestingly, it’s an upgrade to the foundations of the bridge as an anti-collision matter for shipping so that a ship doesn’t take out the bridge by mistake. But the capacity….

Think about this. The capacity off the North Shore has not changed in 60 years. The Lions Gate Bridge was built in the ’30s; the Second Narrows in, I guess, the early ’60s, late ’50s. The capacity hasn’t changed in decades and decades.

An Upper Levels transportation assessment was done a couple of years ago and came up with a couple of ideas. The big one was to put the buses onto the shoulders of the highway. Well, that was it. That was the big idea. Hard to believe, but there it is. Of course, you’d need a new, expanded crossing of the Cap River, but that didn’t make the list.

What we need on the North Shore before we see any significant or additional increase in density on the North Shore is some sort of commitment to rapid transit over Burrard Inlet. I think, at this point, we’re expecting to see that not before 2050.

Then, of course, regional transit in the Sea to Sky — it’s certainly my favourite topic — connecting Mount Currie with Pemberton, Whistler with Squamish, with Britannia Beach, Furry Creek, Lions Bay and into Vancouver. We have an MOU with local governments and First Nations. We have a funding formula, but there’s resistance in this government and no funding increase to B.C. Transit.

A regional transit commitment is truly what’s needed, especially for communities like the Sea to Sky, which are dependent on a single road. There is no workaround. There’s no alternative route. There’s just one road. I think we all understand more density means more congestion, which means more transit. This government has demonstrated little interest in improving transit in the Sea to Sky, and it’s hard to imagine how these communities can succeed without a willing provincial transit partner.

In conclusion, we all know and believe there’s a need for more housing. Population growth and house and rent price escalations demonstrate that in abundance. Having the highest house prices in North America is no point of pride. Having rents that impoverish people must end.

We need density. We need infrastructure. We need im­proved transportation networks, and what we have here, unfortunately, is a shell of a plan — few details, lots of rhetoric, a delegation to secrecy through orders-in-council and an intention to kick the can down the road for a couple of years. The housing report will be coming in 14 or 16 months after the next election cycle and updated OCPs in a couple of years from now. This is an empty promise.

So many questions for the committee stage. Unfortunately, I have little hope that they will be answered. “It will come in regulation,” I’m sure we’ll hear. It will be the consistent response. But we shall see, and I’m not optimistic that we’ll see any real solutions here.

On a final note, I hope to see that if this is a signature piece of legislation, government will determine that it’s worth speaking to.

R. Parmar: The member from Sea to Sky asked, and I’m pleased to stand up and talk about Bill 44, an incredibly important piece of legislation brought forward by our government. I would say that this is the type of legislation that got me involved in politics.

[5:25 p.m.]

This is the type of legislation that talks about the need of a generational issue impacting people in Langford–Juan de Fuca, people all across British Columbia and, in fact, people all across Canada. I think that’s why this legislation and much of what has been introduced by the Premier and the Minister of Housing this fall and certainly work that’s been ongoing since we formed government in 2017 is being looked at across the entire country as a model of the direction we need to head in.

There are a lot of places that I want to go in regard to why I support Bill 44, this legislation. A lot of the stories that that come to mind are those that that come from door-knocking, whether that was during my by-election campaign or just this past weekend, when I was door-knocking in the Sooke Lake manufactured home park in Langford — a place where I’ve been door-knocking for well over 15 years, talking predominantly to seniors but also those that are low-income individuals who are literally living paycheque by paycheque, trying to make ends meet, pay their rent and live their life.

When I had an opportunity to talk to them about this legislation, short-term rentals and all of those other pieces, they were pleased. They were pleased to see a government taking action. They’re pleased to see a government that is taking action and that has put the priority and focus on them. That’s the key piece here.

We often hear members from the other side talk about the urgency and talk about the actions that need to be taken, but when we introduce legislation — this legislation doesn’t come as a surprise; the Minister of Housing has been talking about it for quite some time — unfortunately, from what it sounds like, they’re not going to be supporting it. You know, they may have a different direction.

The member for Kelowna-Mission talked about them releasing their own plan. Well, I certainly look forward to seeing that because, in the past, when you go back to 2012, the Leader of the Opposition was a minister back then. He was the Minister of Finance.

According to CHMC housing numbers for rental units, the B.C. United built just over 2,500 units of rental housing. In 2017 — we can kind of split that one, because we formed government halfway through 2017 — we built about 9,400 units, and in 2021, we built 13,000 units. There’s clearly a discrepancy between what they accomplished and what we’ve been able to accomplish just in our short time as government.

In regard to this legislation, I just want to first talk about Langford, one of the fastest-growing communities in the entire province and, I think, a community that welcomes this type of legislation. I want to give kudos to the former mayor, Stew Young, who has been a leader in this province, a leader in this country, on building housing. He has removed red tape. He has removed the ability for people to slow down housing development.

I often joke about the fact that when people first asked my family why we moved to Langford, people used to laugh at us. Now I say: “Who’s laughing?” It is a beautiful community, and I want to give Stew a lot of credit for what he was able to accomplish in regard to upzoning back when this wasn’t a conversation, when we weren’t having conversations around upzoning and finding ways to be able to streamline processes.

I know the new mayor, whom I’ve had some conversations with, and his council are also going to be focused on this. He sees, and his council does, too, the need to continue to build more housing. Again, Langford, I think, has been the provincial model.

I think if you’d asked the Premier, the Minister of Housing or others, Langford would be one of those ones that you would look to as a jurisdiction that has done its part but still has more to do in terms of building housing of all types. Certainly, in the conversations that I’ve had with people on the doorstep — in Langford, in particular, over the last number of days — they’re excited about it.

I was just on Strathmore Road, on Thursday night, door-knocking and talking to folks who have bigger lots and who now have the luxury of not having to go through a fulsome rezoning process to potentially look at upzoning their units — the fact that they could, potentially, now look at quickly building a garden suite or a laneway home.

[5:30 p.m.]

For the seniors I had conversations with, it allows them to be able to age in place, certainly, with costs going up. It’s also an opportunity for a lot of young families to look at what’s ahead for them in, again, what is the most beautiful community in the province.

As I say that, I have no disrespect to the other incredible communities I represent, one of which is Sooke. Sooke is an incredibly beautiful community that’s growing at a very similar pace to Langford.

I’ve certainly, since becoming the MLA for Langford–​Juan de Fuca, had a lot of conversations with small-scale developers, and in particular builders. I want to give a shout-out to the Sooke Builders Association, who’ve taken much of their time being able to bring me up to speed on the issues that they’re facing with municipal permitting processes and also just with the ability to speed up development. They certainly shared with me their frustrations with permitting, whether that was municipal or provincial.

I’m proud of the work, on this side, that we’ve done in regards to streamlining those permitting processes, in particular, the work led by the Minister of Housing, the Premier and the Minister of Water, Land and Resource Stewardship to be able to kind of create this model that allows them to streamline permitting applications, which is good news for these builders, because they’re simply trying to build homes.

When they saw this legislation, they saw an opportunity not to have to go through unnecessary rezone hearings and, in fact, now have the ability to be able to speed things up and start developing and start building homes for people. Because that’s what they got involved in. That’s why they got involved in building homes. Certainly, in the challenging times we live in, profitability is a key piece to them. They’re not doing this for charity.

But I think the key piece that they were looking for was speed and synergy and the ability to be able to help create more supply here in Sooke, and I think that’s a good thing. I think I’m looking forward to having conversations with the mayor and council in Sooke, as well, in regard to the need to be able to speed things up, and I hope that they welcome this legislation as well.

I’ve also had conversations with Al Wickheim, who’s the regional director for the Juan de Fuca electoral area. He has the gift of a lifetime to be able to represent East Sooke, Otter Point, Shirley, Jordan River, all the way out to Port Renfrew, rural communities that have certainly been impacted by the housing crisis and the housing challenge.

The amount of conversations I have with people from the Lower Mainland, Surrey, Vancouver, Richmond, possibly even into the Fraser Valley that are moving to the Island and in particular to the Juan de Fuca electoral area, buying larger lots, one to two acres, who now have the ability to be able to upzone and potentially look at multiple families living on one site — again, being able to do so because the Juan de Fuca electoral area’s population is over 5,000. So they’ll be a part of this.

When I’ve had conversations with Al about the direction that our government has been heading with the introduction of Bill 44 and other pieces of legislation, he sees the value and the ability for us to work together on creating more housing, but he also reminds me about the need for services. We have a lot of conversations about water out in the Juan de Fuca electoral area and the need to ensure that we’re having conversations that allow us to be able to find that balance.

But one of the things that I’m particularly proud of is the record that our government has had in investing in Langford–Juan de Fuca. When we talk about housing and the need to build more housing, certainly in Langford–Juan de Fuca, and in particular in Langford and Sooke, we’ve done a great job of that.

We’ve just recently opened…. We had the Minister of State for Infrastructure out in Sooke not too long ago where we announced the completion of a $120 million highway expansion along Highway 14. That has been well received by the people in Sooke who are commuting day in and day out to get to work, to drop their kids off at soccer practice, and all the other things that families in Sooke do.

I often talk about the fact that we’ve invested over 2,600 new seats in our schools, the largest expansion of public education in the Sooke school district’s history. We’ve invested, just last week, in 400 seats, an expansion to Ruth King Elementary, an expansion to David Cameron.

In particular, why I’m excited about that investment in what really is the downtown core of Langford along Goldstream Avenue and Veterans Memorial is the fact that we’re seeing a lot of density along the corridor.

[5:35 p.m.]

We’ve got the 95 bus — the RapidBus. My thanks to the Minister of Transportation for bringing that on. That RapidBus is leaving Langford and heading here, just outside the Legislature, and vice versa almost every 15 minutes from dawn till dusk. That’s good news for people in my community.

Just a few short weeks ago, we had another investment announcement where the feds and the province were coming together to announce a significant announcement to be able to create HOV lanes along the Old Island Highway, again, a really important transportation corridor in our community that allows us to be able to ensure that people are moving quickly.

I often talk to people and encourage them to use the 95 bus, but I know that they’ve expressed the fact that, while they welcome it, sometimes it can be challenging that the bus is in the same lane as the other cars. I know that the Minister of Transportation and others in our government are working on making sure that we’re expanding HOV lanes across the province.

One thousand units of affordable housing is a key piece. I had an opportunity to get a sneak peek at affordable housing units that are going to be opening up in Sooke. In fact, this fall/winter period is going to be one of the largest expansions of affordable housing in the district of Sooke’s history. We have an incredibly important project on Charters Road, 75 units, and another 180 along Sooke and Drennan.

Of course, we have the Hope Centre, which was owned by M’akola Housing, an incredibly great partner that we have across the province that’s building hundreds if not thousands of units across the province but is also doing a lot of work in Langford–Juan de Fuca.

Again, Kevin Albers from M’akola is probably one of the best in the business at what he does in terms of building housing, and his entire team, in fact. So I’m pretty thankful to him and his team for the work they do.

When I talk about this sort of legislation being brought forward to speed things up, he certainly welcomes it in the conversations we had and, in fact, says this will allow him and many other business developers — again, the Sooke Builders Association, the West Shore Developers Association — to be able to continue moving forward with the building of affordable housing units.

Health care is obviously a big piece when I have conversations with people about the need for more housing. We need to ensure that we have the health care supports there. That’s why I’m proud of the work that our government did to be able to open up an urgent and primary care centre in Langford and the fact that we are now investing in a community health centre in Sooke that’s underway.

These are all really important investments that our government is making in the community that I have the honour of representing in this place. I’m really thankful for that. Much of that credit goes to my predecessor who did this work to ensure that we have the services to be able to help and sustain housing development. That’s why this legislation is so important to ensure that we can have more housing but also supports and services.

I’m really appreciative of that. I know that we’ve got a lot more to do in regards to that. We have, I would say, in the last 100 days that I’ve had the honour of being the MLA for Langford–Juan de Fuca, made some pretty significant announcements along that.

But I take offence to the comments made by the member for Kamloops–North Thompson when he said: “The member from Langford can crow about the results in the Langford area. I look forward to seeing what type of capital spending he has now that the Premier doesn’t live in Langford. After the abuse that we saw over the last six years of prioritization in Langford, he’s got a rude political awakening coming.”

I would say that comment he made in the House yesterday is a slap in the face to the voters of Langford–Juan de Fuca and absolutely unacceptable. The people of Langford–Juan de Fuca have been building housing, and they have got a lot more housing on the way.

For the member across the way to say they don’t deserve 2,600 school seats, don’t deserve a new urgent and primary care centre, don’t deserve a new community health centre in Sooke, that the $120 million investment that we made in partnership with local and federal government in the expansion of the Sooke highway, the fact that we four-laned much of Highway 1….

We’ve made investments on the Malahat and a whole host of other things. For him to say that was six years of prioritization in Langford and abuse that we saw over the last six years…. I hope he knows that whoever is going to be the next candidate in my riding is going to have to wear those words next time.

[5:40 p.m.]

If the member for Kamloops–North Thompson has an opportunity to come to Langford, I certainly welcome it. I’d certainly offer a tour to him so that he understands those investments were necessary. We had a period in time, 16 years, when those investments were not being made. In fact, I got involved in politics to fight for new schools because of the fact that we couldn’t get schools built.

This legislation is good news for builders. It’s good news for, I think, local governments that now have the ability to be able to have strong conversations, whether it’s ensuring that they’re looking at their OCPs and renewing them or ensuring that they’re doing their housing needs reports.

I’ve had an opportunity to have conversations with two of the bigger mayors in my communities, Langford and Sooke, about updating those documents regularly and ensuring that we’re working together on the need to be able to advocate to the other levels of government to make those investments in affordable housing. We need all types of housing in all of our communities across the province.

Also, make sure that when we’re looking at the ability to speed things up…. I represent the Highlands. I don’t want to forget about the Highlands. In the district of Highlands, they still haven’t legalized secondary suites. With this legislation, when it passes, we will.

I have conversations with the mayor of Highlands — I always say the Highlands; I don’t know why; it’s hard to get that one out of my head — about the need to ensure that we’re working together. Certainly, I think probably he and much of his council are going to be helpful in terms of working, in regards to this piece of legislation, and ensuring…. Many of the secondary suites that are illegal in Highlands are now going to be in a process to be legalized.

Again, Budget 2023, the Homes for People strategy. This piece of legislation is about investing in people. I get the sense that the member for Surrey–White Rock might be the next speaker up. I’m looking forward to hearing from him and other members on the other side of the House about what is so evil about this legislation and why they’re standing away from more housing being built.

I had an opportunity to listen to a podcast, the Rob Shaw podcast, over the weekend. Kudos to Rob. I know that the Minister of State for Infrastructure is a fan. One of the political pundits on the podcast, when they were talking about this legislation, said…. Her name is Allie Blades. I think she has a challenging role in trying to represent the perspectives of the right, of the United and the Conservatives. I don’t envy her position.

Allie said: “We first heard about this in April. The NDP government teased the idea and said it was coming this fall. Here it is. It’s happening. You won’t hear any opposition from me on this one. We talk about housing and affordability being a big problem. This is an aggressive way that the NDP have approached this when it comes to the overall change of what the Lower Mainland potentially could look like. Listen, I know that change is hard, but homelessness is even harder, guys.”

She goes on to say: “I think the B.C. United have talked about this. Pierre Poilievre has talked about this too. Create different zoning near transit stations. And this is exactly it. I think we’re all on board.”

I don’t know if she got the message that you guys are not supporting this legislation. But I hope you do.

Deputy Speaker: Through the Chair.

R. Parmar: I know that there will be opportunities during committee stage to talk about the important pieces within the legislation. It’s a large piece of legislation. Certainly, on behalf of the people of Langford–Juan de Fuca, this legislation means more homes for people and an ability to speed things up.

I want to thank the builders in my community for the work they’re doing, and I want to thank the mayors and councillors and our regional director for the work that they’re doing to speed up housing development and also to advocate for the necessary investments their communities need to thrive. I’ll certainly be there working shoulder to shoulder with them to ensure that we get those necessary investments.

I’ll conclude my remarks there by saying that Bill 44 is a piece of legislation that I’m really proud to be able to stand in this House and support. I think it’s going to be a piece of legislation that years from now we look at that is hopefully going to ensure that jurisdictions all across Canada and North America make the necessary investments and make the necessary changes to ensure that we have more homes for people.

Thanks very much for the opportunity, on behalf of Langford–Juan de Fuca, to be able to stand in this House and support this very important piece of legislation.

[5:45 p.m.]

T. Halford: I always find…. I’m in this place to speak to legislation. It is a great opportunity, and it is an absolute privilege. I’m sure we all share that in this House.

When I first started in October of 2020, I would say the majority of files that came into my office were health care related. I would say now that the overwhelming majority of files that come into my office are housing related.

In fact, in White Rock, we enjoy a population that is…. There’s a large senior base there for housing. It has also been a challenge too. A majority of those seniors are on fixed incomes, and a lot of them have faced challenges in terms of making ends meet for rent, the mortgage payments, obviously, with the rising cost of groceries and other things that we continue to see.

When we’re talking about the importance of housing and what goes with it, specifically with this legislation…. When you look at the area of…. I’ll talk about White Rock in a second, but I’ll focus on Surrey.

We talk about some visions. In Surrey, I think we’ve seen some growth, a lot of growth, in a good way. If I look at the revitalment of Surrey centre…. If you look at where the new city hall is…. It’s not new anymore, but it’s new over the last decade. If you look at the growth that has happened there and the development that has happened there and the businesses that have happened there along the SkyTrain route…. I think that people would look at that vision and say that has been positive.

Surrey, as I said, is growing exponentially. In my area, where we call home, we have seen growth, and we have seen some challenges. I think they’re challenges that can be dealt with.

If you look at housing in my area, in South Surrey, I’d say there are probably about 1,000 more detached homes. If you go close to the truck crossing just off of 0 Avenue, what I hear is that one of the major challenges is that when we’re doing important development, that development needs to be done in that area. It’s good development with good family homes.

There’s no transit there. There’s no public transit. You actually have to cross; you have to walk down 8th, which you wouldn’t want to do. You have to cross Highway 99; you have to cross King George. The nearest transit stop is at what we call the old Pink Palace. I don’t know what it is now. I think the Hilton bought it. We call it the Pink Pal­ace. That, for our community, is the nearest public transit.

That area has been growing for ten to 12 years. We look at the fact that when kids are trying to get to school, get to their jobs.... There are new Canadians that live there. We have no access to public transit whatsoever.

If we talk about areas in terms of Crescent Beach or Ocean Park, along that area…. You look at the increased traffic there, and you look at the decreased public transit.

Like I said, there’s a lot of seniors in my riding that rely on public transit. Part of the frustration they’ve had, with coming back from COVID, is that the system isn’t what they need it to be.

We talk about the transportation challenges. I’m going to talk about the education challenges in a minute.

I’ve always said…. We enjoy the fact that we have a lot of people in this House that have served at various levels of government, whether it’s federally…. I think the previous speaker before me served on the school board.

[5:50 p.m.]

We’ve had elected councillors and elected mayors that have come to this place and that still currently serve in this place. I think that’s a good thing. I think that shows…. I will say I think municipal government is probably the hardest, most challenging level of government. I’d say I think part of the issue is that, for instance….

I’ll use White Rock, for example. We had, I guess, a previous government that ran on an anti-development campaign — so, anti-development, no more development in White Rock. Part of the challenge for that was that developers just said: “Okay. We’re done in White Rock. We’ll take our investments elsewhere.” So when we look at some of the projects that came forth, a lot of them were rentals, and they didn’t get done.

I think that’s probably a frustration a lot of people in this House…. It doesn’t matter what side they’re on, they feel that. When you have good projects that are put forward, that are necessary projects and for whatever reason, they don’t go forward…. And you know the community, the growth, that they absolutely need it…. I think that’s a challenge.

We had one project in White Rock. It was meant for affordable housing. It was meant for affordable rentals. The developer had taken it every step of the way. Then, for no rhyme or reason, it was tossed. You start again, and you start again, and you start again. We saw that for four years.

I think part of the challenge is now, when you look at South Surrey, White Rock, and you look at the issue in terms of trying to get people to come back and actually invest and build? I’ll tell you, I’ve had more developers, more frustrated residents, in terms of not being able to know where the goalposts are. I think that’s a challenge we’ve all faced in this House. I know I’ve faced it, and it’s very frustrating, especially when we see some of the challenges we are seeing here today.

I spoke on the fact that we have a situation where the homeless population in my community has grown exponentially, right? The previous speaker talked about that. Right now we don’t have a warming shelter. We don’t have an overnight shelter. We’ve got bus stops. We’ve got an abandoned movie theatre that people are sleeping in. That’s the reality. That story I think is probably familiar with a lot of people in this House, and we see it every day.

I was lucky to be part of rally to highlight the importance of homelessness in our community. I’m going to get to the bill. It is part of this. The challenge was that these people didn’t necessarily always want to be in a shelter. They wanted to be able to have a home. I think that when we see a continuous overpromise and underdeliver on housing from this government, whether you’re a renter, an owner, a senior or young person, the challenge is that the price of housing has never been higher.

You know, we now look at costs over $3,000 a month for a one-bedroom apartment in Vancouver. We look at the fact that a Surrey townhouse in 2012 was $300,000. Now it’s over $900,000. And we hear that….

[5:55 p.m.]

I think the government said this bill will help build…. I think the figure is 130,000 homes over the next ten years. We hear from the Canada Mortgage and Housing Corp. that says we actually need over 600,000 additional housing units by 2030 to get to a place where affordability may or may not be, but hopefully, in reach.

We’re talking about a government that is saying in ten years, and we’re talking about CMHC that is saying this needs to be accomplished in seven. And by the way, it’s not 130,000 homes. It’s actually 610,000. We have a problem there, right? We have an issue.

The fact is we look at the increased cost to housing and the challenges that brings, and we look at the backlogs, the delays, the regulations. We see the issues — we’ve talked about them — regarding the residential tenancy branch.

The implementation of a step code for new buildings is going to add up to $50,000 per home due to the requirement for advanced mechanical systems and ultra-performance windows. Who’s that passed on to?

We talk about the development approvals process. We see a backlog. We see a massive backlog right now in the Ministry of Transportation for a development within 800 metres of a provincial road — lack of authority. The ministry did create latecomer agreements, and we see a bottleneck in terms of government being able to at least play their part when it comes to making sure that they aren’t part of the problem.

You know, we see the issue in terms of the importance of density. I think we all agree. And I think people have discussed in this bill the importance of density, the importance of having transit wrapped around that density, the importance of having support. In my riding, it’s the Peace Arch Hospital. The development now around that area of Peace Arch Hospital….

There’s been development, mainly on the Surrey side. I guess now there’s starting to be a little bit of development on the White Rock side. But if you look at the people that are coming in, a lot of them are young families. Part of the challenge there is that at least myself and my colleague from Surrey South have had to stand outside and actually protest the closure of a maternity ward.

When we’re talking about the importance of development, which we all understand is essential to what we’re doing, we need to make sure that we have the proper support in place to carry that out. When we talk about the added costs that this government does by adding additional building costs, whether it’s delays, lack of permitting and the backlogs that we see there, we see it’s a major challenge. And we have an issue.

Whether it’s Metro Vancouver’s plan to more than triple fees on new housing…. That’s what makes housing unaffordable. We need to make sure that we are…. Density, I think, is absolutely critical. I think density around major transportation corridors is absolutely critical. But I think we also have to look at the gaps that we have existing as well.

I’ve talked about transportation, talked about health care. We talk about the importance and the growth of Surrey when it comes to education. We talk about some of those areas. When you have, coming in now, young families…. We’ve highlighted in this House the issue of portables. Well, some of those portables right now don’t have heat.

[6:00 p.m.]

This is a piece of legislation that I know at least one government member has got up and passionately spoken to and strongly advocated for his community, which is completely great. I think we should be doing that. But in our community, when we see the challenge that we’re seeing with portables, the fact that they have been doubled, the fact that there have been kids in those portables with little heat, no heat, I think we see some significant challenges.

With that, I’m going to take my seat, and I look forward to future government speakers on this bill as well.

E. Sturko: It is an honour, and I’m pleased to be able to stand up to participate in this important debate on Bill 44.

Housing is one of the most critical files that we deal with in our constituency offices. The member for Surrey–White Rock is correct that we’re seeing more and more people coming because they’re struggling with affordability, with the ability even to find any sort of housing regardless of where it is, in Surrey or other communities.

I wanted to start off, actually, by talking about an experience I had. I’m going to show my age, probably. When I graduated high school in the early nineties, I went on a student exchange. I went to Germany, and I spent a year there. I guess — oh my gosh — that’s like 30 years ago or whatever now.

Even 30 years ago, when you look at what places in Europe, countries like Germany, had in terms of housing and the density that they have in Europe…. It’s not uncommon to see the type of development that has people living in multiple combined dwellings, or they have a lot of townhouses, row housing. A lot of it has been there for hundreds of years, really charming.

But one of the things that they have that we don’t have is that they have in Germany…. It’s called Straßenbahn. They have a street train. Their infrastructure that they have for transportation is amazing. You can get on a train and go from one side of a major city all the way to the other side very easily. They also have a lot of, I guess, interprovincial trains, a lot of abilities so that people can even go into work in different cities and jurisdictions just by riding the rails. It’s a sophisticated system.

Then, of course, everybody also knows about the autobahn, which is a really amazing highway system. I had the opportunity to also go to school there as a foreign exchange student. I got to experience a different school system as well.

The reason why I wanted to bring this up is that it really reminded me, as I reflected on Bill 44…. I started thinking about the things that are important when we’re dealing with things like extreme density, like what they have in Europe. What we’re experiencing now, here in British Columbia, particularly in the Lower Mainland region, is the importance of having that infrastructure, particularly when it comes to education and particularly when it comes to transportation.

Just on the education side, as the Education critic, I can tell you that there have been a lot of things that have been of particular concern. They really are very intricately connected to the housing situation that we have. This year, in Surrey alone, I know that they planned for, I think, 1,500 new students to enter the district. They got well over 3,000 students, so more than double what was anticipated.

They’ve had to add so many portables at this time that they didn’t even have enough crew members or people on staff to be able to hook up the heating. So starting in mid-September, I actually started receiving phone calls, letters, emails from parents all across Surrey who are talking about the fact that not only are their kids in portables, which this government had made an election promise that they would actually eliminate…. We know that that’s not the case, nor was it probably ever a realistic promise.

Nevertheless, like many NDP promises, everything promised, nothing gained, terrible results. Now we have students not only in portables, but unheated portables, ones that aren’t even connected. So now kids are wearing mittens in classrooms.

[6:05 p.m.]

I’m not making this up. I’m not trying to be dramatic. I literally have people writing to my constituency, telling me that their kids had to wear mittens in their classroom in British Columbia, where we’re probably one of the, arguably, richest provinces in the country. Yet we don’t even have the heating hooked up in the portables.

We’ve also…. Someone sent me a picture of what is, I hope, one of the very few, hopefully last…. It’s a portable washroom that’s been brought in. I have a lot of concerns. Actually, I wrote to the school district. I have questions about the portable washrooms, about safety, our kids having to go out and use the washroom by themselves. Are these left open so that any member of the public can go inside, and are kids being supervised when they’re in there?

How this relates, really, to Bill 44 is we’re talking about increasing density. For some communities in British Columbia, and I would say Surrey definitely is one of those, the density that we are experiencing with the newcomers coming, who we openly welcome, we are not in any way, shape or form able to keep up with the infrastructure needed to support those individuals. There’s not nearly enough development happening in schools, not nearly enough coordination among the ministries that are supposed to be making sure that the infrastructure is keeping up.

An example of that, of how the infrastructure is not keeping up, is this government made the announcement of the Langley-Surrey SkyTrain, which, of course, has been something that people, I think particularly in Langley and in Fleetwood and in the Green Timbers area, have been hoping for a long time to see.

But if they had done some coordination and started looking at a big picture scenario instead of piecemealing their legislation and their announcements like they always do, they might have parcelled off some land already for schools to make sure that we wouldn’t have to have, for example, in Surrey, things like proposals for double-decker portables coming to our most densified and crowded areas.

Introducing legislation that will create even more density in areas where we are experiencing situations where we are literally bursting at the seams…. I don’t know how much more our education system, in some of these most-crowded districts, how much more they can take, particularly with the schools when we’re talking about the ever-increasing amount of portables that we’re having, the hookups for those portables. I’ve been told that if we end up getting these monstrosities known as the double-decker portables, they actually need an increased amount of concrete under them to support the weight.

I wanted to mention too, just on the record, that the washroom portables they brought in have stairs. There are no ramps. They’re not accessible. How will we accommodate accessibility so that everyone who has a right to learn can be comfortable in the classroom when we’re having double-decker portables? All these costs are saddled, actually, on the operating budget of the school district.

So when legislation like Bill 44 is brought forward, there should also be concurrent announcements and legislation and planning about how the infrastructure is going to keep up with that, because the school district cannot, on its own, keep up with the influx of individuals who are coming in, looking for a better life, looking to join the awesome community that Surrey really is. We need to be able to have places to accommodate them, their families and their children without putting them in a freezing cold portable.

One of the other things I mentioned about my amazing year-long experience in Germany was about the transportation. It is another bee in the bonnet of my constituents, talking about, even in an area as new as ours is…. South Surrey has developed a lot over the last 20 years, I would say. Especially in the last decade, there’s been a lot of development, new townhomes, but we really don’t have access to things like the SkyTrain. It would have been amazing. Anybody who has to travel on Highway 99 will know, if they have to go through the Massey Tunnel, what a nightmare that is.

[6:10 p.m.]

Again, it’s an example, I would say, of a lack of forward thinking by this government and not keeping up with the infrastructure needed to really support a piece of legislation like Bill 44.

Before this government came into power, we had a plan to build an amazing bridge, the Massey bridge, which would have accommodated multiple lanes of traffic, pedestrians. And it was going to be ready to accommodate SkyTrain between South Surrey and Bridgeport. The current government scrapped that plan, wasting $100 million of taxpayer money for a tunnel that still hasn’t received any environmental approval, probably will never get built and won’t be able to accommodate the SkyTrain.

One of the things that drive me insane when I hear mem­bers opposite sometimes talking about this whole reason why it’s okay that we’re going to have less parking spaces for people…. We’re going to have more density. But hey, don’t worry, because around places that have SkyTrain, it’s going to be all right. Your life is going to be cool because you can just jump on that SkyTrain.

But if you live in South Surrey or White Rock, I guess that’s not including you. We don’t have it. And in fact, this government made sure that we wouldn’t have it by eliminating the Massey bridge that would have accommodated the SkyTrain. Now they are putting forward legislation, with one of the cruxes of their arguments being that everybody is going to be jumping on things like SkyTrain, and they nixed SkyTrain to one of the fastest-developing communities in Surrey, which is the fastest-developing community in British Columbia. It’s madness.

I heard members opposite also talking about health care. And I have to tell you that south of the Fraser — not just in Surrey but other south-of-the-Fraser communities — we are bursting at the seams, like all other hospitals, but particularly when it comes to dealing with cardiac issues.

I know that the minister, who is nodding and catching my attention…. They have made some commitments to go forward with that, and it’s appreciated. But the speed at which this government is delivering those services versus the speed at which they move their gums to make a promise about those — there’s a vast difference between those things.

We’ve been hearing for years, under this government, that we would have the new hospital in Cloverdale. You know what? In the first several years of those announcements, there wasn’t even anything in the budget.

Interjection.

E. Sturko: “Only five years,” the member says. Only five years, everybody. It’s okay. Only five years.

The Chair: I’m not sure how this relates to the bill. If we could bring comments back to the bill, that would be appreciated.

E. Sturko: Yes, it’s related to the bill. We are talking about infrastructure. Thank you, hon. Chair. Because when it comes to building density, like it is spoken about and legislated towards in Bill 44, having a hospital up and running is an….

Interjections.

The Chair: Members, one member has the floor.

E. Sturko: Thank you, hon. Chair. I can tell that the members opposite are very sensitive about their failures on the Cloverdale hospital. Well, you know what? It’s been years. People are waiting, and still we’re talking about one of the most expensive projects in the history of our health care system here, with some of the fewest beds, with no plan for human resources.

Essentially, from what the health care doctors and nurses and people that are working in the Fraser Health system have told me, they actually don’t like this plan for the Cloverdale hospital. But you know what? We’re already going into it. Apparently, they have broken ground on it. And you know what? Let’s get it built. But unfortunately, now it’s not only years behind schedule, but it’s also $1 billion over budget.

One billion. I never in my life would have thought that if someone said: “Yeah, it’s a few more million dollars, you know, changing designs….” But $1 billion over budget on something that’s not built, not even one bit. Bill 44 is densifying our communities. It’s going to be bringing more demands on the infrastructure that’s there, including health care. And we have, in my community, a hospital that’s supposedly underway years behind schedule and already, under this government, $1 billion over budget. It’s hard to believe.

[6:15 p.m.]

One of the worst parts, I would say, about this lack of planning and this inability of this government to follow through on promises made and actually deliver those results is that it just downloads the pressure onto municipalities. What we end up seeing is that they’re constantly creating new legislation to put pressure on municipalities but without providing the funding and infrastructure that are required to get these projects done.

I don’t understand how this government expects cities to function when they are constantly putting more and more pressure on them to provide for services and community that they simply haven’t built up enough infrastructure to support.

We already see it. I can tell you that I already see it in the neighbourhood that I live in, because I live in one of these townhousey areas that has the shopping, has very little green space, to be honest. Each person gets a tiny two-foot square of what’s considered a courtyard.

But what we do get instead of a yard are sump pump and drainage problems, because there are so many — a huge confluence of townhouses, apartment buildings and multifamily dwellings in the same area with not the appropriate amount of infrastructure for sewer, water and drainage. Then we end up having to pay out of our extra fees and stuff that we pay for our condo association, to pay for all the problems that we have with sump pumps and drainage.

These are things that I would honestly anticipate seeing as a result of poor planning, frankly, on the part of this government — bringing forward legislation to increase density without simultaneously increasing access to funding and helping communities plan for the increased stress on their infrastructure.

The member for Surrey–White Rock talked about tran­sit, and that was one of the biggest things when I was campaigning over a year ago, and I would go door to door and talk to people, particularly people that live in the little Douglas crossing area, which is close to 0 Avenue. If they wanted to take the bus, they have to walk a minimum of 30 minutes, if you live near 0 Avenue, to get to the first bus stop.

I heard a member in here the other day talking about: what if a mom has a hockey bag and her kids? “Oh, they’ll take the SkyTrain.” It became a ridiculous conversation. But I think people do want to take transit. I think that they do want to have options, but that’s nearly impossible if you’re trying to, let’s say, push a stroller, take your toddler to Timbits hockey. You have a giant hockey bag, and you’re walking half an hour to a bus stop? Come on.

This is the kind of failure to plan. This is the kind of thing that does not account for the density that’s growing, particularly in places like South Surrey.

I think, definitely when we’re looking at Bill 44, I want to be clear that I’m not against density. I’m not against building up. I live in a townhome complex. I love it. I’ve actually got great neighbours. I think that it builds a good sense of community to have a lot of different families around.

What I am against is building and not supporting peo­ple with transit, with different opportunities for transportation, with making sure that there is accessible parking, to make sure that they have access to other kinds of amenities, to make sure that their kids can go to school even if they have to go in a portable, heaven forbid, because this government didn’t follow through on its promise to eliminate portables. Hopefully, it’ll have heating, because there literally are, right now, portables in Surrey that don’t have heating.

Don’t shake your head. It’s a true story. The teachers of the Surrey Teachers Association brought it forward to the public. I’m grateful for that, because it helps get information out about just how dire the situation is in our community.

Of course, we welcome…. In Surrey, I am really proud that we are one of the most diverse communities in the province. We as a community have welcomed more refu­gees than any other place in British Columbia. We have a tremendous community of newcomers and people born in Canada and abroad, and we’re very proud of that.

We welcome people, but we want to welcome them to a place where they will be comfortable. Their kids can go to school. They have access to transit so that they can get to work. Maybe they are going to be coming here to study.

[6:20 p.m.]

[Mr. Speaker in the chair.]

Certainly we want to make sure that they have access to health care and not just that a person will be waiting and waiting on a wait-list to try to get into a different health authority when they need to visit a cath lab but that they’ll actually be able to visit a facility in Surrey and that those promises will actually be fulfilled — not just empty promises but actually delivering results, because unfortunately, the delivery of results is something that’s been pretty scarce, I have to say, from this government.

Whether you’re a renter, an owner, a senior or a young person, the price of housing is higher than it has ever been. Right now there are too many British Columbians struggling under the weight of the steadily increasing costs. This is a result of the NDP’s inability to build more housing. B.C. has the worst housing affordability in North America, and this is all on Premier Eby’s watch.

Sorry, I withdraw that. It’s the Premier’s watch.

Right now it costs $3,000 monthly in Vancouver for a one-bedroom. Can you imagine $3,000 for a one-bedroom apartment? A Surrey townhouse that used to be $300,000 now costs over $900,000. But I think this is wrong, because the majority of townhouses are now over $1 million in Surrey.

By contrast, what we’re seeing is that the Canada…. Sorry. Rather, this government claims that Bill 44 is going to help build 130,000 homes over the next ten years. But by contrast, the Canada Mortgage and Housing Corp. says that we need to build 610,000 additional housing units by 2030 to restore affordable housing. Of course, this plan falls well short of that. The NDP’s housing targets are set at only 75 percent of the real need, and that is well below the federal CMHC guidelines to restore affordability.

Noting the time, hon. Speaker, could I reserve my place and conclude this debate?

E. Sturko moved adjournment of debate.

Motion approved.

Reporting of Bills

BILL 38 — INTERNATIONAL CREDENTIALS
RECOGNITION ACT

Bill 38, International Credentials Recognition Act, reported complete with amendment, to be considered at the next sitting of the House after today.

Committee of Supply (Section C), having reported progress, was granted leave to sit again.

Hon. R. Kahlon moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 1:30 p.m. tomorrow.

The House adjourned at 6:23 p.m.


PROCEEDINGS IN THE
DOUGLAS FIR ROOM

Committee of the Whole House

BILL 38 — INTERNATIONAL CREDENTIALS
RECOGNITION ACT

(continued)

The House in Committee of the Whole (Section A) on Bill 38; J. Sims in the chair.

The committee met at 1:35 p.m.

The Chair: I call Committee of the Whole on Bill 38, International Credentials Recognition Act, to order.

Clause 13 approved.

On clause 14.

The Chair: Member for Shuswap.

G. Kyllo: Thank you very much, hon. Chair. I welcome you to the chair.

Just before the break, we were having some very lengthy discussion with respect to the consistency and the opportunity for internationally trained professionals, when they approach their various regulators, the 18 which are covered under this particular bill, to have confidence that the process, the bylaws and the policies that are put in place will not be changed subsequent to the making an application.

I was trying to seek a bit of clarification or a commitment that it would be the expectation of the minister, and subsequently of the superintendent, that individuals making their initial application for recognition of foreign-held credentials not be subject to changes with respect to the policies and bylaws.

The minister indicated that within the provisions of the act, there are references to best practice in certain things, but I certainly didn’t feel the minister providing any direct commitment to what, I think, most internationally trained professionals would see as a fair process.

If I’m making an application on today’s date, the regulator will establish what the policies and bylaws are by which I will be required to meet a set amount of criteria in order to obtain recognition of my foreign credential. I do not believe that it would be fair or just for those individuals, necessarily, to be subject to further consequential changes of those bylaws or procedures.

Is there any further commentary the minister might pro­vide, to ensure that those internationally trained professionals, who have foregone knowledge and some confidence in the process by which they enter, won’t, on making application for recognition of their foreign credentials, be subject to further changes that may only delay the recognition of those credentials, to obtain the licence or regulatory authority to practise in British Columbia? This is largely what this bill set out to achieve.

Hon. A. Mercier: This question has been asked and answered. I will briefly reiterate that regulatory authorities are bound by the process and the principles of administrative fairness and procedural justice under our law. I need to act in accordance with that as it relates to their processes.

I would add a note of caution, as well, that it is conceivable that you would have a professional regulatory body change bylaws or process that in fact remove further barriers and further expedite the process. I’m sure the member is not suggesting that in a situation like that, people who are already in the applicant process wouldn’t benefit from those changes.

[1:40 p.m.]

There’s a lot of different variation among the 18 different professional regulators, but I think the core point here is that they need to act in accordance with administrative fairness and procedural justice, and they need to exercise their bylaws through the application process with that in mind, which I’m sure they’ll do.

G. Kyllo: Certainly, I was not in any way, shape or form suggesting that any consequential improvements to the process would be potentially problematic for the applicant. I don’t think any applicant would be expressing concern about unfairness if the process is actually improved.

The concern is that although the superintendent certainly has oversight, there’s nothing that would restrict a regulatory authority to change the bylaws or policies, which could have a negative implication on the time frame by which an internationally trained professional could have their credentials recognized here in British Columbia. It is that specific concern that I’m trying to address, and I appreciate that the language may not be set out specifically in the bill.

But I do recognize that some of the conversation and the inquiry that we’re having here today will help to inform both the superintendent and even the courts, should there be challenges with respect to the implementation or the application of this legislation.

Certainly, just trying to get a bit better understanding and commitment from the minister on the minister’s commitment to ensuring that in all instances, efforts are undertaken to expedite and to increase the confidence an applicant may have when they approach their regulatory authority for recognition of their foreign credentials.

Hon. A. Mercier: So that question has been asked and answered, which is that the process occurs within the context of Canadian administrative law and the need to be fair in terms of the administration of the regulatory procedures.

Clause 13 approved.

On clause 14.

G. Kyllo: Might the minister be able to explain what is meant by the phrase “a reasonable time” in section 14(a) of this act?

[1:45 p.m.]

Hon. A. Mercier: This is one of the things that I heard about probably the most in speaking with internationally trained professionals, which is the amount of time that is lost in processing time for applications.

The term “reasonable time” is used here in order to denote flexibility as between the regulators. Remember, we have 18 regulators in 29 professions, all of which are different and have different assessment processes. What we want to do is set a standard. So we use the term “reasonable,” which is very well-worn in Canadian and British Columbian law and the law of this Legislature, to set a standard but also to retain that flexibility.

Now, that being said, what this provision also allows us to do is to prescribe regulations for maximum processing timelines, which it is our intention to do. We’ve begun that engagement with regulatory bodies, and we’ll continue that. Our intention is to have that regulation in place for enforcement of the act.

G. Kyllo: I note that there is a lack of a reference in the definition section to a reasonable time. Can the minister maybe comment?

I appreciate that what might seem reasonable for a regulator may be different from the perception of what would be reasonable from an applicant. I also appreciate that different regulators may have different determinations for what would be reasonable. I think a large part of the purpose of the legislation is to provide clarity so that an applicant that holds a foreign professional credential will have some confidence when they enter this system and make their application that there would be some semblance of an understanding of the timeline, whether that be two weeks, two months, two years.

I would also venture to guess that the qualification is a different applicant. There may be some applicants…. If they meet and satisfy all requirements, a reasonable timeline may be only a couple of weeks. An individual that may have some missing pieces: that application process could span months or, I think, as the minister had indicated, in some instances the span of years.

I think there’s certainly an opportunity to provide more clarity around what is deemed, from the minister’s perspective, a reasonable time. The legislation before us is really silent. It fails to actually identify even any set parameters, whether it be two weeks or two years, as I’ve set out.

[1:50 p.m.]

Hon. A. Mercier: Well, I would disagree that the act is silent in terms of limitations on timely determinations. “Reasonable” is an objective standard. It’s well-worn by case law. The reason that we’ve employed that term and preserved the power to set maximum standards by regulation and are doing further engagement is because of the diversity among the regulated professions.

I’ve talked a little bit in this House about Engineers and Geoscientists of B.C., EGBC. EGBC is a profession that has thousands of international applicants. It also has a staff and members of the profession that are very highly engaged in volunteering time to help with that process. So it’s in a different world of capacity than some smaller regulators that might have significantly less applicants but that cause a higher strain on their administrative ability.

What we want to do when we set a standard is make sure that that standard is achievable by the regulator and that we hit that optimal standard, which is why we’re doing engagement with the regulatory authorities on what those limitations for timely determinations, in their context, look like.

That work is being done. It’s not concluded yet. It will allow us to come forward with regulation, so that when this is enforced, the regulators know the maximum processing standard that they have to meet. Across Canada, provinces vary on what that standard is. In Ontario, for instance, it’s six months.

What we need to do is look at where the capacity of the regulators is and what makes sense, given how diverse they are, rather than set a standard in the legislation that is a catch-all and that doesn’t account for differences in capacity, differences in regulatory context as well.

G. Kyllo: The minister brings up an interesting point about regulator capacity, which I think initially sounds incredibly concerning.

If a regulator does not have the sophistication or the internal staff levels to deal with and address a significant number of applicants, is the minister somehow suggesting that the regulator will be able to make the argument back to the superintendent: “We just don’t have enough staff to process all of these. Therefore, we need a longer time to process and make a final determination”? Now, I know that’s not exactly what the minister said, but it certainly is what I believe would lead from the comment that the minister had shared.

If the internal capacity of the regulator will be part of the conversation, which will provide the superintendent, I guess, advice with respect to determining what may be reasonable for that specific regulator, that’s incredibly concerning. That will not provide any confidence to applicants or in any way, shape or form put additional pressure on the regulator to staff up, per se, in order to meet those increasing applications that may be forthcoming.

[1:55 p.m.]

Hon. A. Mercier: This is about making sure it’s a balance. It’s about making sure the process is as fast as it can possibly be for international applicants while still balancing the public interest and the duties and responsibilities the regulated profession has throughout its licensure process.

We want things to be able to be as fast as possible through the processing, which is why we are doing the work right now through the credential improvement branch within the ministry and through the OSPG. We are doing the work to engage with the regulated professions on what realistic maximum timelines are, so that we can expedite this. It’s critically important.

Where there are capacity issues — because yes, not every regulator is the same — we are here to help with that. Government is here to help with that. That is the role of the superintendent as well — to have that ongoing relationship with the regulators and to help them leverage best practices, leverage funds like the credential assessment improvement fund and leverage the talents of the office itself to maximize the processes to meet those standards. But we need to hit maximum processing standards which, for those professions, are achievable.

G. Kyllo: I appreciate the challenge that the minister and, I think, even staff may have had in trying to determine what would be a reasonable amount of time.

The minister, in his response, had indicated staffing levels within a regulatory authority will be taken into consideration in determining what would be a reasonable time for the processing and the determination of the recognition of foreign credentials. At the outset of our debate, I’ve continually brought up the challenge and I think maybe the lack of rigour that has been put around understanding what the magnitude of the problem is.

A regulator that may only see two applications a month or 24 in a year may require a set of staff in order to, as the minister has indicated, in a reasonable amount of time, process and make a determination. Once a maximum is set…. I don’t know; maybe the minister might be able to share when he determines when that maximum time frame will be established. Once that maximum timeline is established, if it is based, indeed, on two applications a month or 24 in a year, with a set complement of staff in a regulatory authority….

What happens if suddenly there are seven or eight applications a month, a fourfold increase in the number of applications? Is it then going to be upon the obligation of the regulator to staff up to meet and ensure that they have necessary staff to achieve a determination within a set maximum amount of time that the minister is suggesting?

Without an understanding of how many people are coming in the front door, it is impossible for a regulator to determine how, and the staffing level that is required in order to make an appropriate determination in what will be a set maximum amount of time.

[2:00 p.m.]

I’m certainly not trying to be cute, but I think there are some big holes with respect to the process. I think regulators will also be incredibly concerned if they are going to be at the receiving end of a maximum time frame to make a determination. They may lack sufficient staff resources to ensure that the applicant has all of their information reviewed and has provided all that information.

Well, I don’t know if we’re going to actually end up with the positive outcome, which is more credentials recognized and professionals being able to work here. If there’s a maximum time frame that is established and the regulator does not have sufficient resources, well, they’ll just make a determination, which is no. That will set, likely, a whole other set of circumstances into play, which we’ll get to in a minute.

With respect to the establishment of a maximum time frame, the minister has indicated that will be, in part, in consultation with determination of the capacity of the office. Will that also take into consideration the average expected number of applicants and the complexity? I think we all know that every applicant will not take the same amount of processing time.

I’m just trying to better understand how this maximum will be determined and how regulators will understand how this maximum time frame will be established? Is it going to take into consideration the applicants that are currently coming in the door, the complexity of those applications?

Will the superintendent proactively extend the time frame, the maximum time frame, should there be a significant increase in the number of applicants seeking to have their international credentials recognized here in B.C.?

Hon. A. Mercier: Thank you to the member. I think, largely, the member has answered his question through his question, with his illustrations, which is that sometimes circumstances change. It is important that we have an objective standard, reasonable timelines in a reasonable time in the legislation so that we have the flexibility to deal with changed circumstances.

The member has given one illustration example. It could easily go the other way as well. It could be that, over a period of time, the advice comes from the superintendent’s office that a regulator could actually be meeting a much quicker timeline than they are. We may want to change those timelines to reflect that. The regulation-making power allows us to do that. It also allows us to set classes of regulators for timelines so that we can more appropriately adapt to that environment.

But the purpose of keeping the objective standard of reasonable in the legislation is so that we have the flexibility to deal with the situation on the ground which can very well reflect changed circumstances over time.

G. Kyllo: I appreciate the minister providing that clarification. I would agree that all applications are probably not equal or require an equivalent amount of processing time.

[2:05 p.m.]

What I’m hearing is the minister would suggest the opportunity for different classes of applications. So potentially an applicant that maybe meets all of the requirements may be expedited, and an individual applicant that may not necessarily achieve all of the requirements of the regulator at the outset may take more processing time to provide that applicant the opportunity, the time, to actually submit further information to further support their application.

Hon. A. Mercier: So the regulation allows for different classifications of regulators and regulatory authorities, not of applicants, and the timelines apply to complete applications from the internationally trained applicant.

G. Kyllo: I appreciate the minister clarifying that.

Would the minister agree that applications that are presented to a regulator for evaluation for making a final determination — that they’re not all created equal, and some applications may be easier and simpler and take less administrative time to process than others?

Hon. A. Mercier: Not every application is going to be created equal in terms of the variety of factors within it. Managing the process of the applications is rightfully the job of the regulatory authorities.

They’ll have to do it within the context and the rules set forward by this act, and the superintendent’s office will be there working with the regulators on these matters, and also through a lot of the other provisions that we’ve already canvassed, monitoring for systemic issues and patterns for systemic issues, which can then be addressed if they do present themselves.

G. Kyllo: I have, in my relatively short career as an MLA, been on the receiving end of many complaints from constituents that have been faced with making applications for everything from maybe a subdivision approval to a lease renewal.

[2:10 p.m.]

It has been pretty clear — whether it’s municipal government, the Ministry of Transportation, which has subdivision approval responsibility for rural British Columbians, or even within the Ministry of Forests for tenure applications — that the clock does not start counting until all of the information and requirements are furnished.

Can the minister provide any confirmation to this House: at what point in time will the regulator be required to start the clock?

I’m just thinking of an applicant that may be applying to have their international professional credentials recognized here in British Columbia, maybe from Australia. They make an initial application. As a process, that application is reviewed. There’s a determination that additional information is required, which may take a period of months. I’m just wondering. At what point in time will the minister and the superintendent start the clock, so to speak, as far as determining what that time frame is? I think that’s incredibly important.

I have spoken to individuals — probably not much unlike the minister has, driving cabs or otherwise — that say: “I’m a doctor from Bangladesh, and I’m having trouble getting my credentials recognized here.” On further inquiring, “Did you ever satisfy all of the requirements for a proper assessment?” the answer quite often is no. I’m certainly not saying that is always the case, but I think it is important that there be a clear understanding of when the clock will start, as far as determining what that maximum time frame might be.

Hon. A. Mercier: Subsection 14(a) spells it out: “…within a reasonable time after receiving a complete application from an internationally trained applicant.”

G. Kyllo: I appreciate the minister for pointing that out.

What efforts were undertaken, either by the minister directly or by staff, with respect to the consultative process in reaching out to different regulatory authorities to determine what the time frame has been for them to make a final determination on an application, once they have satisfied all of the requirements, as the minister has just referenced?

Hon. A. Mercier: That work in engaging with the regulators has started with the engagement on the draft guidelines and standards. That was canvassed during that process, and it continues now as the engagement on regulation, under this section for maximum processing timelines, is being put together.

[2:15 p.m.]

G. Kyllo: Is the minister confirming he has no knowledge of the minimum, maximum or average time frame for a regulator to make a final determination in advance of tabling this legislation?

Hon. A. Mercier: This is a point that we have canvassed at length previously during this debate. There is great diversity, among the regulatory authorities that will be under this act, in who measures, in what they’re measuring and in the comparability of what they’re measuring.

The frustration, I think, that a lot of folks feel as to opaqueness of regulatory processes partly stems from a lack of eyes on the problem. It is exactly why we need this act. It is exactly why we need the office of the superintendent, and we need the provisions here so that we can do that work and establish it.

G. Kyllo: I certainly appreciate the consultation process and the work that was undertaken in order to produce the report, What We Heard: Public Engagement. There were many, I believe, even thousands of submissions.

Was there any effort undertaken by the minister or minister’s staff to determine that the concerns that were raised were related to how long it takes a regulator to make a decision once they’ve been furnished with all of the information? In the example that I provided, I certainly believe that a large majority of complaints come from individuals who were not able to fully satisfy the requirements. There are some pieces of this legislation that do address it — with respect to language comprehension, as an example.

However, to say that because somebody complained about the length of the process…. Those need to be separated from those that have actually satisfied the requirement. It would be unfair to characterize the regulators as the problem if we haven’t first identified the magnitude of the problem, if the regulators have not been engaged in providing that raw data. We all have heard the terms: “If you can’t measure it, you can’t manage it; data drives decisions.” There is an absence of data.

If the concern is that applicants had come forward to have their credentials recognized, if they’re having a prolonged amount of time to satisfy the requirements of the regulator as far as furnishing that information, well, that problem does not lie with the regulator. There may be opportunities for the minister, through work with educational institutions and otherwise, to assist those people, but that’s not the regulator’s problem.

If, indeed, the data has suggested that the regulator has applicants that have furnished all the information, and the regulator is sitting on their hands for years, well, that might lead to a different conclusion. It does not appear the minister or the minister’s office or staff have undertaken that work. If they have undertaken or developed that work, we certainly aren’t seeing it here.

Unless we can see the magnitude of the problem clearly articulated, I don’t see how this legislation is going to lead to an improved outcome.

[2:20 p.m.]

The minister seems reticent to put those measurements in place so that we can actually measure the success of the organization. The minister has shared that in the case of the maximum timeline, well, that’ll be subjective. It will be subject to the different classification of the regulator. It will be subject to the amount of staff that they potentially may have.

The minister has shared that in the case of the maximum timeline, well, that’ll be subjective. It’ll be subjective to the different classification of the regulator. It’ll be subject to the amount of staff that they potentially may have.

The minister references the term “as fast as possible.” That could also mean many things. Does that mean that regulators should deny vacation time or demand overtime so we can do it as fast as possible? These things are all very subjective.

I would suggest that the regulators, currently, are probably doing their best, once they have all the necessary information, to process the applications. But it’s not going to be the same. Every application will have different complexities and may take a different timeline.

If the minister somehow thinks that the superintendent establishing and drawing a line in the sand that, “This will be the date by which a determination is made….” I do not see how that is going to actually result in an increased rate or a reduced amount of time for applicants to actually be processed.

Back to, specifically, this clause. “Reasonable,” I guess, from what we can see, has a huge variation. It could probably be everything from two months to two years. If the minister believes that a reasonable time frame is something less than two years, I certainly would appreciate hearing that directly from him here today.

The Chair: Member, through the Chair, please.

Hon. A. Mercier: Thank you, Madam Chair.

Through the Chair to the member, I would say that the position that the member is forwarding is, in a sense, nonsensical. On the one hand, he’s saying that government ought to be spending more time working with the regulators and being sensitive to their regulatory environment, to a basket of issues that in some instances, are outside of their locus of control. On the other hand, he says that we shouldn’t be working with the regulators to set flexible requirements on an objective standard so we actually have achievable requirements we can meet.

[2:25 p.m.]

I mean, that is the heart of the issue here, which is that we need to have the best possible set of timelines. That is what we’re talking about here right now, which is setting timelines for timely determinations.

This can’t be read in isolation from the rest of the act, the purposes of the act, and the different powers and limitations set out within the act. It is an important piece of it. And the goal of the work is underway right now to set those reasonable timelines, through regulation under this section.

It’s an incredibly important part of what needs to happen. It’s by no means all of what needs to happen. And I would just say it. I would repeat that for all of the reasons that the member has laid out and keeps coming back to canvassing the point about data, that is exactly why we need this legislation. We need to have this ability to be able to set those standards and to do that data collection so we can get a good, systemic view of the process across the board so that we can then go and look for further efficiencies.

G. Kyllo: I certainly don’t believe that the minister has demonstrated that the regulators, the existing processes that they’re undertaking and the time frames by which they are utilizing in order to make a final determination are any different from what the minister is proposing.

The minister is proposing that staff capacities will take be taken into consideration and has indicated that the classification of the different professions will be taken into consideration. The minister can’t share with this House what “reasonable” actually would look like. So with all due respect, I fail to see how the outcome of this will be necessarily any different than the outcomes that are already existing.

If the minister and his staff have undertaken that work and actually asked the regulators to provide timelines on how much time it takes to recognize the credentials of an international professional…. Once all the information is submitted and they clearly have all of the information in order to make a determination, we don’t even know what that number is, because I don’t know that the regulators have been asked.

If they have been asked, the information certainly hasn’t been forthcoming. If we determine…. If the minister has done the work, I certainly hope that he’ll share with this committee and with the general public. But if the maximum time frame currently for an individual who submits all of their required information is nine months, well, so be it. It’s nine months.

But we don’t know what it is, and the minister can’t say that this legislation will provide any kind of a time frame that’s anything less than what the regulator may be already utilizing. So I’m incredibly, I guess, just frustrated and fail to see how what’s set out here is going to actually result in any improvement. The minister has been reticent or reluctant to actually agree to the collection of the necessary data so we can see that there’s been a net improvement. How will we know, a year or two from now, whether we’ve actually seen any net benefit?

With respect to section 14, the minister has shared some of the information that will be utilized in order to determine that maximum time frame. Does the minister also determine, through this legislation and work in consultation with the superintendent, to put a requirement of an average processing time for applications that have submitted all of the appropriate information?

[2:30 p.m.]

Hon. A. Mercier: I know he’s thoroughly read the what-we-heard report multiple times. As we went through the engagements, we asked internationally trained professionals to describe to us their experience with the process and their experience with timelines.

The difference between how internationally trained professionals experience timelines and the way domestically trained professionals experience timelines was very, very stark, in my view. It speaks to the need for this legislation. I’m not going to now, through this response, go back and re-canvass the days we’ve spent talking about the need for data requirements and the work that we’re doing there and that we’re going to be doing on that.

Suffice to say that, as far as the member asking about average timelines, that is something that will be collected through the annual report process for the regulators that, I’m sure we will talk about in a later provision, stipulates that.

I go back to the point about internationally trained professionals and the way that the timeline is experienced and the way that they told us they experience time barriers and process delays and to not lose sight that it’s the internationally trained professional here that we’re trying to improve the process for. A part of that is giving the certainty and clarity for them of the expectations around the timeline.

Having a maximum processing timeline for a complete application does that, as opposed to an average processing timeline requirement for an application, which I think would be experienced in a very nebulous way for an internationally trained professional trying to figure out what does that mean for them.

So having a maximum processing timeline is an important tool. But make no mistake, the effect of this legislation is going to be that we are able to track and to ascertain what the average processing timelines are.

G. Kyllo: With respect to the consultation that was undertaken with the regulators, was any information or data obtained with respect to the administrative time that might be undertaken by an office in reviewing an application?

Let’s cast aside all of the communication there may be with an applicant to get all the information in. Once all of the information is furnished to a regulator, does the minister have any semblance of the administrative time, whether that be eight hours, 16 hours, 50 hours to actually process an application and get to the point where they can make that final determination? Does the minister have a sense of the amount of time?

I appreciate there could be a wide range, but was that information sought from the regulators, and does the ministry and their staff have a good understanding of the administrative time for processing applications?

[2:35 p.m.]

Hon. A. Mercier: As I responded previously, we have begun that work with the process in reaching out to regulators around the draft guidelines, and we’re continuing that work now on the engagement leading to a regulation setting of those timelines.

G. Kyllo: It’s important to note this bill has been drafted without a clear understanding of how much administrative time an office may actually undertake in even reviewing an application, which I believe is unfortunate. I’m almost finished my inquiry on this particular section.

The minister had offered up, with respect to the maximum timeline, and gave reference to another jurisdiction, maybe another province, another regulator that has established a maximum timeline of six months. Would the minister agree that a processing timeline of two years would be grossly unfair and unjust?

Hon. A. Mercier: The work on setting the maximum timelines is happening right now with the regulatory auth­orities. I’m not going to….

My point of view and what I’ve said has been clear. I’ve stated multiple times for the member. I do not believe the processing timeline should take one minute longer than it needs to take. In order to ascertain what that is across the particular regulatory authorities, we need to do the work with those regulatory authorities, which we are doing appropriately and in time with where we need to be for enforcement of this act.

I’m not going to speculate on timelines for any given regulatory authority while we’re working hand in hand with those regulatory authorities, to come to that conclusion in doing that work. That is a conversation that is happening and ongoing, but it should not take one minute longer than it needs to take.

G. Kyllo: Look. The maximum timeline is largely what this is all about. The purpose of the legislation is to ensure that applicants are going to have a timely processing of their applications and find out what that determination is.

[2:40 p.m.]

I appreciate there would be a different timeline maybe for an engineer rather than a veterinarian. Those are very different and distinct, and I appreciate that the regulators will have a duty and a responsibility to ensure public safety and animal health and welfare and all those sort of things in their determination. But surely, once all the information is furnished to the regulator, there must be some understanding of the administrative processing time. Then, also, what would be reasonable?

If the minister doesn’t feel comfortable in saying that the maximum timeline should be something two years or less, would the minister be willing to agree that it should be three years or less?

Hon. A. Mercier: The member has asked me the same question with a slight variation, so the answer remains the same, except I will say that I don’t agree with the characterization of this legislation as merely being about timelines.

Yes, timelines are an important part of dealing with the range of issues faced by internationally trained professionals. But what this is about is making sure the international credential assessment process is fair, transparent, expeditious and efficient, which is what this legislation does through a whole series of different measures, including the removal of Canadian work experience requirements, including limitations on unnecessary language testing and expiry dates for language tests.

The timelines are an aspect of it. We’re doing that work. We’re doing the work right now with regulators and preparing regulation, and there will be maximum timelines set.

G. Kyllo: Well, it’s indeed, I think, unfortunate that the minister doesn’t feel confident. I’m assuming that international applicants who may be making application may be concerned that the minister doesn’t feel that three years less a day is a reasonable amount of time for their application to be processed.

Look, the minister volunteered six months. I think that there has been a lack of rigour around the amount of administration time in order to make a decision. I shared, previously, an example of an internationally trained iron worker that may be in Ireland that has the requirement of additional costs associated with only being able to take their qualification test on Canadian soil. The costs associated with that and efforts that government can undertake in order to improve that and reduce that cost burden — that’s directly under the auspices of the minister. We haven’t seen that movement.

Although it’s not related directly to this, I think this does speak to government wanting to reach in and tell other regulators how they should conduct their affairs — what’s reasonable or what’s not reasonable — without necessarily obtaining the necessary data.

If we don’t know…. Ministry staff have not clearly understood what the administrative time is for a regulator to process an application — has no idea or is certainly unwilling to share how many applications they process on a monthly basis — and has no ability to even demonstrate for this committee what the average or the maximum timelines are and then is also further unwilling to commit to a maximum timeline of even three years.

As an example, I can share that a community I represent, Salmon Arm, has been looking for a lease renewal on a waterfront park so they can do some significant improvements. They’ve been waiting for three years.

[2:45 p.m.]

I’ve been told, under good counsel, that the administrative processing time for a lease renewal is eight hours — eight hours administration time. This community has been waiting three years and has been told that now it will be a further year.

Now, this is something that government has direct control over. To expect a community to wait four years for a determination on a lease renewal application that’s eight hours of administration…. Yet this government and this minister, with all due respect, is choosing to reach in to a regulator without actually undertaking the significant work to determine what the magnitude of the problem is.

This particular section clearly sets out the requirement for a regulator to make a determination. I’m assuming that determination could either be positive, in which case they’re going to grant credentials, or it could be a negative determination, which would be: “No, you do not satisfy the requirement.”

In the case of the regulator maybe having a timeline placed upon them that is unachievable for them to fully vet the application and information in order to come to the determination of a positive outcome and facing a deadline that’s going to be imposed by the superintendent in order to meet and satisfy that requirement…. Should that regulator have to make a decision hastily, because they may not have fully vetted that application, and make a negative determination, what is the opportunity and the obligation for that applicant?

Is there an opportunity for them to appeal? Is there an opportunity for them to have to reapply? What plight would that applicant be in, in the case that a regulator has a self-imposed deadline put upon them by the superintendent? Should they make a negative determination, what avenues does the applicant have to reapply or to seek an appeal or an extension?

[2:50 p.m.]

Hon. A. Mercier: I think what the member has done is…. He has illustrated pretty clearly exactly why we need to work with the regulators on setting timelines that are achievable and maximum processing timelines that are achievable. Every professional regulatory authority I’ve engaged with throughout this process and the team has engaged with throughout this process takes their job and their role incredibly seriously. So working with them to make sure we get to achievable timelines, where they are able to weigh and adjudicate applications appropriately, is important.

I would say on the question of internal processes for an applicant who is denied…. I mean, the reality is…. With any application process, there will be people that need it and people that don’t. That process has to be weighed by the regulator as part of them looking at the substantive competencies that are required. There is a diversity of regulators with a diversity of statutes, rules and procedures that will have different processes for denied applicants. Those go back to the general processes of those regulators.

One thing that this act does is ensure that those processes are made transparent and known to the internationally trained professionals through publication on the website.

G. Kyllo: The minister, in a previous response, I believe, indicated that it would be the expectation that those maximum timelines would be set in the summer of 2024. Can the minister confirm that there will be maximum timelines established for all of the 18 regulators, covering all 29 professions, that are covered under this act?

[2:55 p.m.]

Hon. A. Mercier: Yes.

G. Kyllo: With respect to this specific section on…. When it states “timely determinations”…. Under section (b), it states…. Maybe I’ll start by stating that section 14 says: “A regulatory authority must make a determination in an international credential assessment process.” So (a) we’ve canvassed quite extensively. And (b): “no later than within the period prescribed by the minister, if any.”

Can the minister provide some clarity on the addition of those two last words, “if any”? It certainly would seem that there may be a determination…. Maybe a timeline would not be established, a maximum timeline for a set profession or a regulatory body.

If that is not the case, I wonder if the legislation should potentially be amended so that the minister and the ministry’s office would be compelled to establish a maximum timeline for all, as the minister has alluded to in his previous response.

Hon. A. Mercier: The “if any” at the end of 14(b) is a convention of statutory drafting. It’s conceivable that the act could operate without those timelines set by regulation. That is not our intention. Our intention is to have the regulation prepared and in place for when the act comes into enforcement.

G. Kyllo: That’s, I certainly believe, incredibly concerning. If the minister has indicated…. It is certainly the intention of the minister that maximum timelines will be employed for all of the 18 regulators, covering 29 professions, by the summer of next year, but the legislation actually sets out a carve-out which does not compel, in any way, the minister to even establish timelines.

It’s quite conceivable that either the minister…. A position could change. The direction from cabinet could change. It could be pushed back from a regulator, and we could be sitting here next summer with, potentially, no maximum timelines established.

That is what the legislation actually provides for. If that is indeed the case…. Although it provides, I guess, the opportunity for establishing, there’s nothing that actually compels the minister to make that determination.

[3:00 p.m.]

Much of our conversation and dialogue has led to…. I believe even some of the responses from the minister have indicated that it would be the superintendent that would make that determination, yet the legislation states it would be the minister that makes the determination.

Can the minister confirm who will actually make the ultimate determination? Will it indeed be the superintendent, or will it be the minister?

[R. Leonard in the chair.]

Hon. A. Mercier: The superintendent would make an assessment of what is a reasonable time, looking at the process. But the regulation as to the maximum processing time is set by regulation, by the minister. I can assure the member that work is ongoing now. That engagement is happening now, and those regulations will be ready for enforcement of the act in summer of 2024.

G. Kyllo: The minister has indicated that this is a long-standing problem. I know it’s something that has been on my radar for a while now. I appreciate that we’re near six years into the current term of this government to bring forward this legislation.

There’s an understanding that the regulations are underway and being developed and, as the minister has indicated, it’s certainly his intention to see that the maximum timeline would be in play by next summer, which I assume would indicate that the regulations will be completed sometime this spring.

Can the minister confirm that the regulations will actually be in effect and that internationally trained professionals that are seeking to have their credentials recognized in B.C. will see the regulation in play and activated by summer of 2024?

Hon. A. Mercier: Yes, that’s the intention.

G. Kyllo: I appreciate the response from the minister. The minister carefully, I guess cautiously, indicated the intention, and I appreciate that.

Can the minister identify any issues or concerns that may arise that might not allow the minister to follow through with his intention?

Hon. A. Mercier: The intention is to have…. The work is underway. The work is happening, underway and, I’m advised by the team, on schedule to be done for September 2024, with enforcement.

The member has asked me to identify circumstances outside of government’s control that may interfere with that work. I’m incredibly hesitant to speculate on improbable events, particularly after having lived through a global pandemic that disrupted the modern functioning of society to a degree that I don’t think anyone was prepared for or thought would happen.

There’s always a possibility that something highly im­probable occurs, but all things being equal, the work is underway. The work is happening according to pace, and the regulations will be ready in summer of 2024.

G. Kyllo: My inquiry was not about things outside of government’s control. My inquiry was anything that may be within government’s control.

Is there anything that is under government’s control that the minister believes could negatively impact the ability of the regulations to be in play and of internationally trained professionals to have confidence that the regulations that the minister and his team will be developing will be in play for summer of 2024?

Hon. A. Mercier: No.

[3:05 p.m.]

G. Kyllo: Just one further point of clarification on clause 14(b), the reference that I read into the record earlier about “no later than within the period prescribed by the minister, if any.” Can the minister provide a definition of what is determined or what the minister references when the legislation states “period prescribed”?

Hon. A. Mercier: The amount of time prescribed by regulation.

Clause 14 approved.

On clause 15.

G. Kyllo: Can the minister state how the superintendent will confirm the determination regarding an internationally trained applicant will be achieved?

Hon. A. Mercier: In answer to the member’s question, a determination is a defined term in the beginning of the act, which stems to when a regulatory authority makes a decision to grant or not grant a certification or if a certification is granted, whether or not to impose limitations on that.

G. Kyllo: I appreciate the response from the minister. What I’m trying to seek to obtain is that it’s been identified that once all of the information from an applicant is received, that is when the clock would start to tick. We haven’t made any determinations on how the superintendent would know when that particular applicant has satisfied the application requirements, in which case, the clock would start.

[3:10 p.m.]

Then further to that would be: when a determination is made, how will the superintendent also be notified and when the determination is made? Is there a requirement of the regulator to provide real-time notification to the superintendent, both at the outset…?

An applicant has satisfied all of the requirements, we will then notify the superintendent that applicant A has met all of the requirements and that his or her review process is underway. Subsequent to that, when they make a determination, will there be any requirement for the regulator to provide real-time notification to the superintendent’s office with respect to what that timeline is?

Just trying to understand the mechanics of this. Or will it be up to the regulator to put an annual report out at the end of the year and then the superintendent will have to maneuver through that to find out if they were on target or off target? I’m just trying to better understand the mechanics.

I would suggest that there would likely be — and this may be part of the development of — the regulation that there would be a requirement for regulators within maybe a ten-day period of time, once an application has satisfied all the requirements, that there’s a notification, and likewise when a determination is made.

I’m just hoping the minister can provide some clarification on how the superintendent will be aware of both the start and finish line of those application reviews.

Hon. A. Mercier: Ultimately, this provision is about fairness for the internationally trained applicants — certainty and clarity.

I can appreciate where the member is coming from, but it would be administratively unfeasible to deluge the superintendent with notices of every determination or communication of a determination that’s made in a process. The superintendent does have a wide range of powers, and we’ve canvassed them throughout this debate, in terms of monitoring the regulatory authorities, not the least of which are the annual reports.

There are also complaints driven by individual applicants that can raise it with the superintendent, as well as both the inspection and audit powers of the superintendent, which we’ll get to, I’m sure, in debate.

This is about setting out certainty and clarity so that the process is fair and transparent for the applicant, which is why it also includes a provision that the determination, once it’s made, be communicated with reasons and in writing for the applicant.

G. Kyllo: If I’m understanding the minister’s response correctly, there will be no real-time reporting or advisement to the superintendent on the number of applications that are coming in the door, how many applications they have actually achieved, all of the requisite information for them to actually undertake an evaluation.

[3:15 p.m.]

There will be no reporting out on whether the regulator has actually achieved to issue or make a determination within the maximum period, other than the review of an annual report, 12 or 14 or 16 months down the road.

It would seem to me that if it was the purview of the superintendent to have an ability to actually manage the process, I would certainly suggest the minister or the superintendent and his staff would want to have a good understanding of if the applications are increasing for a set regulatory authority or if they’re declining, and how many applications have actually satisfied the requirement, in order to in any way, shape or form have a bit of predetermination on what the workload might be. As the minister has previously indicated, the workflow or the workload of the office and their staffing complement will have an impact on timelines.

If I can understand the minister correctly, or if I have understood him correctly, to have a look at a fixed timeline being put in place as early as this summer, which will take into consideration, as the minister has indicated, the staffing complement of the office, the number of applicants….

If there’s no monitoring of that process throughout the year and the regulator gets to the end of the year and finds out that for 50 percent of their applicants the determinations were not made within the requisite period — and their argument or excuse is, “Well, we had twice as many applicants as we anticipated, and we didn’t have the ability to onboard enough staff” — then what is the sense of having a finite maximum timeline unless it’s being managed in some form other than just a review process once a year?

Hon. A. Mercier: I’ll say a few things, and I answered this, for the most part, in my previous response.

The superintendent will get the information, but they won’t get it hourly. We want the regulators to be focused on processing applications, not on sending notifications continuously to the superintendent. It is a manageable group of regulatory authorities with a team already in place at the ministry that has good working relationships with them.

I would think that if a regulator was struggling, and they knew they were struggling because they did have an uptick, there’s no reason to suggest they wouldn’t be proactive on that as they went about doing their work and preparing their data, which they have to do anyway.

That work is all going to happen. It’s all going to be done, but it’s not going to be done every hour or every day. The value in that…. There’s more harm in that than value.

I think this sets out the appropriate timeline. But just with the point here that we’re really talking about section 15, communication and determinations. This clause, and what we’re talking about, allows for communication of those determinations within a set period of time, which gives some certainty and fairness for the international applicants.

G. Kyllo: I would suggest, actually, that the opposite is true. The applicant, in submitting their information to a regulator for determination, at the outset may understand that the maximum timeline that might be determined and established and communicated to the regulator…. Let’s assume it’s 12 months.

So the applicant submits their information to the regulator, has confidence that the timeline that’s set out…. Let’s just arbitrarily assume it’s 12 months. They are assuming that they’re going to have a firm decision or determination by the office within 24 months. The regulator has the ability of putting additional conditions on that applicant, which could change things.

In addition, the number of applications coming into the regulator, as well as the staffing complement, could pro­vide justification for the regulator to go back to the superintendent and say: “Look, we’ve got five times as many applications as we initially anticipated. We can’t staff up sufficiently. The timeline that is determined at 12 months is no longer sufficient. It needs to be 18.”

[3:20 p.m.]

Where is the confidence and the surety to the applicant, who was told and had assurance that the maximum timeline was 12 months, when conditions outside of their control, and certainly outside of the control of the regulator, as far as an increased number of applicants, and even maybe staff changes or challenges within the staff in that organization will only allow the superintendent to make a determination as much as a year later that, jeez, you know, you’ve got way more applicants than you intended. The 12-month timeline is probably unachievable. We’re just going to extend it to 18 months.

So I do not see the certainty that the minister is trying to provide with respect to the legislation when there is such a lack of effort that has been undertaken to clearly articulate and determine the magnitude of the challenge of the problem.

The average number of applicants that each regulator is receiving, the minimum or maximum timelines — what would be a reasonable number? But the minister won’t even commit to indicating that three years is the maximum outside timeline it could be. For all we know, it could be something more than that.

I do not see how there’s going to be any certainty pro­vided to the applicant. The real-time reporting or some way for the superintendent to even measure or track the number of applicants coming in — it seems to not exist.

I hope the minister can provide some confidence or confirmation that that, indeed, will be part of the regulation and that will be part of the work. Fair enough. Maybe it doesn’t have to be in real-time, maybe not every day. Maybe it’s monthly, or maybe it’s quarterly.

Certainly, reviewing the number of applicants and the pass or fail or the ability of the regulator to meet that maximum timeline…. Reporting on that once a year is grossly inadequate if we want to have any opportunity to actually learn from this exercise and be able to provide the encouragement to the different regulators to on-board additional staff or other changes that are necessary to provide a consistent timeline for those internationally trained professionals looking to have their credentials recognized here in B.C.

Hon. A. Mercier: Those questions have been asked and answered through the debate here. I’m just wondering if the member has any questions about communication and determinations under clause 15.

G. Kyllo: Absolutely.

Can the minister explain how the determination of 14 days was determined to be an appropriate timeline for a regulatory authority to provide determination to the internationally trained applicant?

Hon. A. Mercier: Once a determination has been made on an application, the regulator will know what that deci­sion is and why they made the decision. So this is a period of time in order for them to, effectively, write a letter detailing their reasons.

We looked at other statutes when we did that jurisdictional scan that we canvassed earlier. I’ll give an example. I mean, it’s a pretty standard and non-controversial amount of time to make sure that that happens.

[3:25 p.m.]

Alberta has ten business days, which is the same as 14 calendar days — two weeks.

Clause 15 approved.

On clause 16.

G. Kyllo: Can the minister explain what is meant by the phrase “prescribed requirement” in section 16(b) of this act? I guess, further to that, if I may, if the minister could provide an example.

Hon. A. Mercier: What this section does is it prohibits the Canadian work experience requirement. The member is quite right in pointing out that 16(b) is leaving room for this government and for subsequent governments to prescribe another prohibition.

I mean, we’ve talked before and at length about the change in, kind of, the regulatory landscape and the need to keep up with changing social facts in society. What this does is it makes sure that this government and any subsequent governments preserve a power to add prohibitions, should there be some ill in the process that that government identifies as being rising to the level of requiring a prohibition.

It’s hard to come up with an example right now because everything that we went through in engagement, where it suitably rose to that level, we made sure to include in the legislation. But that’s not to say that the international credential assessment process may not evolve in a way that doesn’t create other issues or other unfair and unnecessary barriers for internationally trained professionals. We need to make sure that government has the ability to address that.

G. Kyllo: If I go back to earlier sections of the bill…. The minister, through much of his commentary, has indicated the, I guess, necessity and the responsibility of the regulator to ensure public safety. I do know that with some regulatory authorities and some professions, actual Canadian work experience is incredibly important in order to have evidence and, I guess, to provide confidence to the regulator that an internationally trained professional actually clearly understands their scope of work and their profession in the Canadian context.

This specific regulation clearly sets out…. It’s a reverse onus, where the regulator is no longer allowed to place Canadian work experience as a condition of employment. I’m quite certain that many regulators have that in play for a specific reason, to ensure that different professionals have a good understanding of their profession as it applies in the Canadian context. So I’ll certainly have some additional questions about that, about the process that might be available to seek an exemption where that responsibility lies.

With specific reference to any prescribed requirements, it certainly appears, and the minister has indicated, that this opens the door for the government to provide further exemptions.

[3:30 p.m.]

We think of a veterinarian as an example. I think for a veterinarian that comes out of graduate school, there’s a requirement, a requisite for work experience — I’m not sure; they might call it an internship or otherwise — as part of the requirement in order to satisfy the regulatory authority and to be able to prove up their ability to actually perform the profession.

My nervousness with this particular clause is that that may open the door for this government or future governments to continue to utilize this legislation without the scrutiny of the House to make further changes, to further diminish the ability of the regulator to put specific work experience requirements or otherwise on those professions by which they ultimately have responsibility and liability associated with.

I’m very uncomfortable with this clause. I’m not sure if the minister can share any other information as far as other safeguards that may be in play. I’m always nervous when there’s too much left up to regulation, because regulation can be undertaken through an order-in-council without any scrutiny of this House.

I believe that something as important as the work experience of internationally trained professionals, that the regulators should have more confidence that if there’s going to be any further erosion — and I’ll suggest it’s an erosion; the minister may have a different interpretation — of their ability to require specific work experience, that any of those future changes should be subject and left to changes in legislation to ensure that there’s full scrutiny of that and that those undertakings are not done simply around the cabinet table.

I hope the minister might be able to…. Maybe there’s other information that he has at his fingertips that he can actually share with us to give us a bit more confidence that the regulators should have confidence there’s nothing else that could be undertaken through regulation that would negatively impact their ability to have ultimate authority over the issuance of credential recognition for internationally trained professionals.

Hon. A. Mercier: I appreciate the member’s comments, and I’ll say a few things.

First off, Canadian work experience requirements are something we heard about, and that I heard about personally, across the board during the engagement process, not just from internationally trained professionals, but from professional regulatory authorities as well, many of whom told me frankly that those work experience requirements are actually used as a proxy because they’re not, in fact, measuring competencies or skills or doing competency assessments or skills.

There are, in fact, many regulators that are working to move away from those Canadian work experience requirements because, effectively, what they’re doing is a yardstick to measure something they’re not actually measuring, which is the competency in skills. What we want as government is for regulators to move towards those competency and skill assessments.

[3:35 p.m.]

Now, I know the member’s point was about regulation and about the importance of legislative scrutiny and debate, like we’re having now, clause by clause, in, I think, a very thorough way, which is helpful for posterity and for the regulatory community, among others.

It’s obviously incredibly important, which is why when we drafted this legislation, we endeavored, wherever possible, to ensure that prohibitions and standards were in the body of the legislation itself and that where there is regulatory authority, it is there to deal with changing social facts and to provide flexibility, like we talked about previously, with timelines for complex situations and, as well, potential changing facts on the ground.

What this particular regulatory power does under 16(b) is, like I said, that it allows government, this government or a future government, to create a prohibition on professional regulators for the process. I said, when I answered the question previously, it’s difficult to think of an example of that because using this regulatory power is not something that this government is contemplating. It is not something that we are doing engagement on or working on. We have no intention right now of bringing regulation forward under that.

In the interest of transparency, I can say that, because we endeavored…. During the drafting, where we had areas where we wanted to make substantial progress, like the Canadian work experience requirement itself or like the prohibitions around the use of language tests, we put those directly into the legislation so that this scrutiny could happen.

G. Kyllo: I appreciate the response from the minister. On face value, this legislation actually diminishes the ability of a regulator to have a specific requirement on internationally trained professionals seeking to have their credentials recognized in B.C. As I mentioned in my last question, it’s a reverse onus.

The legislation, on face value, takes away the ability of the regulator to have a Canadian work experience requirement. And as much as there may be very common similarities, maybe between Canada and the United States just as an easy example, when you look at engineering, the differences between maybe the Canadian context, the North American context and a country like Nepal or other countries would be very stark and very different. So the Canadian work context, I think, is incredibly important.

Now, I appreciate that there is the opportunity set out in this legislation for the regulator to seek an exemption. But the legislation is silent or doesn’t provide any detail on what that time frame looks like.

What does the application look like? If a regulator is seeking exemption from this particular piece of legislation, how quickly do they have to respond? Are they subject to the superintendent just saying no, or will, in all instances where the regulator can present a logical argument on the value of Canadian work experience in order to ensure that those internationally trained professionals meet the high standard of the regulator…?

Does the regulator have the ability of advancing that argument and having confidence that the superintendent or the minister doesn’t just simply choose to deny it? I think the challenge would be, for a majority of regulators, that they will continue to see that the Canadian work experience requirement is significantly important.

If it indeed is the determination of the superintendent to, in all cases, not want to weigh in or negatively impact the ability of the regulator to put that as a condition and choose to go in a different direction and say, “Well, fair enough. You made a good argument, but we feel it’s too negatively impacting the ability of internationally trained professionals to have their credentials recognized. You’ve asked for an exemption, but we’re denying it,” that’s a very slippery slope.

[3:40 p.m.]

Now, I don’t want to second-guess the minister’s re­sponse. Can the minister provide any confirmation that in the case of a regulatory body seeking the exemption…? Will that exemption request be accepted, or will the superintendent or minister potentially deny that request?

Hon. A. Mercier: In answer to the member’s question, I’ll just reiterate some comments I’ve made previously about Canadian work experience.

[3:45 p.m.]

I don’t think I heard about anything as much as I heard about the Canadian work experience requirements, the catch-22 that so many international applicants are put in for that, which is really stark when you contrast it with a lot of the rationale I got for Canadian work experience requirements. It is in many cases, I was told, a stand-in or a proxy to measure other competencies that are not, in fact, being measured.

It’s our view — it’s the view of the government — that the regulatory authorities ought to be properly engaged in that competency and skills assessment. Obviously, that is a very important objective in order to meet public safety and the objectives of professional regulation. For instance, we have regulators like the association of science technicians and technologists that have recently, in September, moved away from Canadian work experience requirements and into competency-based assessments. But that was something I heard across the board from regulators as well.

In answer to the member’s question, it is a reverse onus, absolutely. The Canadian work experience requirement is an unfair and unnecessary barrier. However, it is important to acknowledge that where it is justified, because competency and skills couldn’t be measured another way, it may be the best possible yardstick. That is why we’ve set up a process through sections 21 and 24 for regulators to make an application to the superintendent for an exemption to that requirement.

We’ve also set up a process through sections 49 and 53 — and we can canvass those sections when we get there — for reconsideration of the superintendent’s decision, out of an abundance of caution, approaching this prohibition.

I should say that section 69 of the act sets out a delay in the implementation of the Canadian work experience requirements, six months from the enforcement of the act, which allows time for these exemptions to be adjudicated should exemption applications be made by the regulators.

The member asked — I’m not sure if this is what he was asking — could I make a determination on, or could I state, whether or not an application would be accepted? I can’t state whether or not an application could be accepted or would be accepted by the superintendent because that would be to undercut the superintendent’s role of adjudicating that application for an exemption. It’s a very serious and professional process that also has a layer of oversight through a reconsideration of the decision.

I would suggest that this is a very important part of the act, section 16, the prohibition on Canadian work experience, and that for many, many internationally trained professionals, it is a nightmare to go through that process to find an internationally trained professional to take them on. Many can’t find someone or end up leaving their profession and doing other work.

To hear that laid in contrast to regulators saying, candidly, “Yeah, really we’re just doing this because we’re not measuring, and we’re not assessing competency” — that’s a problem. So this rightly sets that onus up, and it rightly gives a tool to the regulators to come, based on reasons, to ask for an exemption and then to adjudicate that exemption.

G. Kyllo: With respect to section 16, the minister indicated that…. What I heard or I believe I heard is that if a regulator requests or makes an application for an exemption….

[3:50 p.m.]

I don’t think I heard about what that process looks like yet. I’m sure that the minister can provide that information. But if a regulator seeks the exemption, the superintendent will have the ability of either accepting or denying that application. Can the minister confirm?

Hon. A. Mercier: Yes, the power would rest with the superintendent on the application and then also pursuant to a reconsideration process, which we can canvass when we get to sections 49 to 53.

G. Kyllo: In that determination, how will the superintendent weigh public safety and the value of that Canadian work experience with the responsibility and, I think, a legal obligation of the regulator to ensure public safety in the context of issuance of a specific professional credential recognition?

Hon. A. Mercier: I realize there are a lot of interconnected pieces here. Getting ahead to section 23 of the act, 23(1)(b) mandates government to create criteria through regulation for the superintendent to balance in adjudicating the exemption applications.

Those criteria right now are being worked on in engagement with the regulatory authorities themselves to ensure that the concerns and considerations that the member has raised in terms of public safety are at the forefront of the balancing and decision-making that the superintendent does coming to a determination on an exemption application.

Clauses 16 and 17 approved.

On clause 18.

G. Kyllo: I’m skipping over lots of questions, but on this particular section with respect to the fee schedule, can the minister explain who will determine whether the fee or class of fees that are imposed on an applicant that is internationally trained are for the same or substantially the same purpose as an applicant that is not internationally trained?

I’m just trying to get a better understanding of how that determination will be made.

[3:55 p.m.]

Hon. A. Mercier: The process would be that the fees would be published by the regulators in the act, and the act sets that out. If they are different, that will be apparent on its face.

Then the superintendent and their office would be able to then engage with the regulator and make a determination on that.

I would just request a brief recess, if we may.

The Chair: I call a recess for ten minutes, and we will return at 4:07. Actually, let’s make it eight minutes, and see you come back at 4:05.

The committee recessed from 3:57 p.m. to 4:06 p.m.

[R. Leonard in the chair.]

The Chair: Members, I call the committee back to order.

Clause 18 approved.

On clause 19.

G. Kyllo: Can the minister provide any confirmation when the obligations for the regulatory authorities to make information available regarding the international credential assessment process…? At what point in time will they need to make that available on their website?

I believe, in one of the previous clauses, the minister may have alluded to summer of 2024. But just for the record, can the minister confirm: when will the regulatory authorities be required to make all of the appropriate necessary information available regarding their policies, procedures and other information set out in this legislation? When will they be required to make it available on their website?

Hon. A. Mercier: In answer to the member’s question, he would be correct — summer 2024, with the enforcement of the act.

G. Kyllo: And when that information is made available…. I think we have yet to fully determine the extent of all of the detailed information that would be made available. Is the minister able to share…? Will things like average or usual processing times be made available? Would there be any requirement for any real-time reporting on the number of applicants that a regulatory body may have before them for review at any given time?

Just trying to get a bit of a sense of how much information will be required. Or is that yet to be determined through regulation?

[4:10 p.m.]

Hon. A. Mercier: I’m not going to go back and canvass the point about real-time reporting. I think we’ve gone over that pretty substantially at this juncture.

In section 19…. There is a comprehensive list, in the legislation itself, of a whole variety of types of information that this would be applicable to, including the length of time it takes to make a determination in the international credential assessment process.

It also contains, in 19(2)(l), a provision that allows the minister to prescribe additional information through regulation. I think we talked about this a few days ago, earlier in this debate — the state of play with existing regulatory authorities now. They’re all coming from different levels of preparedness or sophistication in terms of collecting data, and the data that the ones who collect data do collect may not be comparable between them.

This is about benchmarking and setting a requirement that everyone can meet, all the regulatory authorities can meet, that brings them to a certain standard. Once we’re there — that data is being collected, and we are in that habit or pattern — there is the ability, then, for myself, or whoever the minister is, to go and prescribe additional data as well.

There needs to be a recognition here that this is work that wasn’t done for decades, and as we’ve started doing with the office of the superintendent of professional governance for a subset of regulatory authorities more broadly, but that this legislation will bring into place. So it’s about creating that baseline. There is, then, the ability to go and be more discrete afterwards.

G. Kyllo: Thank you very much to the minister. I appreciate that the information will be made available by the summer of 2024.

What is the obligation or expectation, either of the superintendent or the minister, with respect to any incremental changes? Policies or bylaws are updated or amended. Fee schedules are updated or amended. Even some of the certification requirements may be adjusted by the regulator.

I’m just wondering. Can the minister indicate what the expectation will be as far as making sure that the information on that public-facing website is updated regularly?

I think the question will come back to an international applicant that is looking at the website for advice or direction on how they might seek to have their international credentials recognized in B.C. If there are any changes that are affected on the ground within the regulatory body, is there an obligation…? What is the expectation, I guess, or obligation on the regulator to update that? Must the website be updated on the date that the change comes into effect? Is there a lag period? Can they just look to updating their website annually?

I’m just trying to get an understanding of what the expectation is of either the minister or the superintendent.

[4:15 p.m.]

Hon. A. Mercier: The intention of this is to increase transparency for internationally trained professionals so that they know what the rules they have to meet are. The intention here is that the information is up to date by the time any changes come into force with bylaws.

G. Kyllo: Just to be clear, if a regulator makes any subsequent changes to policy or bylaws…. Before those bylaws or policies can come into effect, they must be first, or at the same time, published and updated on their website. I just want to confirm that I’ve heard the minister correctly.

Hon. A. Mercier: The intention is that it’s done simultaneously. When the bylaw or policy comes into effect, it must be updated on the website.

The rationale for that is, like I said, transparency and fairness and to think of things from an applicant’s perspective. When they’re putting their application together, they ought to be able to go on to the website and get the valid and current bylaws and policies so that they can put their application together properly. They know what standards and rules they have to meet.

G. Kyllo: With respect to any updates the regulator may undertake and with respect to the bylaws or policies, is there an obligation or a requirement for proper document control?

The reason I ask that is if an applicant goes and looks at the bylaws and takes them at face value, how will that applicant know, if they go back to the website a month or two or three months later, if there have been any updates? How would an applicant be alerted to the fact of any change?

Typically, with a lot of document control, there will be a revision number associated with that bylaw. If there’s any subsequent change, there’s actually a requirement to note that. On such and such a day — let’s say October 2024 — bylaw XYZ was updated to reflect this specific change, and this is a new bylaw.

I’m just wondering if there’s any expectation or obligation so that the regulators have some form of document control. Most importantly, it’s to ensure that the applicant, when they go back to that website, would have any indication of any subsequent changes.

Further to that is…. When a regulator makes those changes…. Is there an obligation on the regulator to notify all applicants that are in the queue of those prospective changes, or is the obligation left with the applicant to continually monitor the website for any potential changes that may impact their application status?

[4:20 p.m.]

Hon. A. Mercier: I think the member, in terms of version control of bylaws and making sure that bylaws are up to date, raises a valid point. That’s a good example of the need for best practices and also of the role that the superintendent of international credential recognition can play in helping craft and ensure those best practices with regulatory authorities.

This is part of why in the draft guidelines — and in the document that I provided to the member a few days ago — the proposed standards include language about organizing online resources. That is something that the superintendent can work with regulators on, should it prove to be an issue or a complication.

It’s important to acknowledge, when it comes to the bylaw or policy processes of the variety of regulators, that there’s a variety of legal statutes or enactments delegating authority to them and that set out different processes, obligations and accountabilities they have to meet around things like their bylaws and policies. It would be inappropriate for us or for this act to then go weigh into that or to weigh into matters that are appropriately the regulatory authorities’.

For instance, there are many regulatory authorities that already, as a matter of course, because of various obligations, inform members of the profession and applicants about any changes to their regulatory standards. It would be inappropriate for us to weigh too deeply into that in legislation, but it is absolutely a best practice. We will have the superintendent to help work through and share those best practices, I think, for the reasons mentioned by the member.

[4:25 p.m.]

G. Kyllo: With respect to the timing, if a regulatory body were to undertake changes to their bylaws or policy, what would be the expectation level as to the time by which they’d make that information available? Also, maybe subsequent to that, would the original bylaws have to be maintained and still be forward-facing to the public, and then the new bylaw? What would be the expectation as far as drawing, to an applicant’s attention, any changes?

This is where I think some of the challenges are. The minister has shared with this House that the regulator will have the ultimate ability of changing their policies and bylaws. Fair enough. I certainly appreciate that they may have different processes they need to go through to do that.

Should they choose to make those changes, it’s imperatively important that applicants that have entered the process on a set date will be able to know and see, hopefully in real time, if there are changes that might impact the status or the terms by which their application is reviewed.

The other part of my question: will there be an obliga­tion or expectation of the regulator? If they’re making changes that in any way, shape or form affect the application review process of applicants that are already on­boarded, will there be an obligation, an expectation, that the regulators notify those applicants of those changes? Or will it be left to the applicant to figure that out on their own by regularly monitoring their websites?

Hon. A. Mercier: I understand the member’s concern for transparency for international applicants, which is part of the whole thrust of this bill, as well as of the draft guidelines. I would caution against getting into a situation of legislating every page of a website. There’s a certain amount of flexibility here, which I think is practical. There is a mandate through this provision to post, to their website, the bylaws and policies as they come into force and become valid.

I would say about the application process — in the example the member raised, for an international applicant — that I would go back to a previous response I gave to that same concern: regulatory authorities have an obligation to administer their bylaws, procedures and policies in accordance with principles of natural justice and procedural fairness. That is a very powerful protection for those who are subject to those policies, procedures and bylaws. That’s something that, I believe, regulatory authorities take very seriously.

G. Kyllo: With respect to any amendments or changes that a regulatory authority may undertake with respect to their bylaws and policies, is there an obligation or expectation for that information to be provided, not just onto the website but to the superintendent, either electronically or brought to their attention, so they’re aware of those incremental changes that may take place?

[4:30 p.m.]

Hon. A. Mercier: The member is asking a question about timely communications and bylaws and policies to international applicants who are in the process. This question has been asked and answered several times under the debate under clause 13.

G. Kyllo: This inquiry actually is not to the international applicant. This is so that the superintendent is actually aware. The reason I’m asking the question is: will it be up to the superintendent and his staff to conveniently and regularly monitor websites to see if there are any changes to bylaws or policies? Or will the regulators, if they’re making a change to their bylaws or policy, be required to notify the superintendent of the change?

Now, those changes, although they’re outside of the control…. At least the superintendent would be aware of those changes, because in the absence of any direct communication to the superintendent, I can just imagine staff might be having to review 18 different websites on a weekly basis to look for changes.

How would they even know that an update was pro­vided, if there’s not a requirement for the current bylaws and procedures to be dated and maybe even maintained on a website? With the new bylaws provided, how will anybody be able to tell or determine what the previous bylaws were or where those changes were made? I think it’s absolutely a valid question.

The main purpose of the bill is to provide consistency, so those internationally trained professionals, when they enter the application process with a regulator, will be able to see at the front end, with some consistency, what that application process will look like, largely captured by the bylaws and policies. If there are any subsequent changes to those, I think it’s not only just important for the applicant to see it but also for the superintendent to be made aware of any of those changes.

I hope the minister might be able to maybe provide his view on the necessity of the superintendent being advised of any changes that would potentially have impacts or implications to the recognition of internationally trained professionals.

Hon. A. Mercier: To the member’s point, this question, as well, in terms of communication of changes in bylaws to the office of the superintendent, has been asked and answered during the debate on clause 13. I’ll say, as I did then, that this goes to the question of the relationship between the superintendent and their office and the regulatory authorities.

I can assure the member — we’re talking about a set number of regulatory authorities here — that the team within the ministry, both in the office of the superintendent of professional governance and the credentials recognition improvement branch, have developed, throughout this process, throughout the process of the engagement, the legislative drafting and now the engagement on regulation and draft guidelines, a very strong, collaborative working relationship with the regulatory authorities.

The Chair: Member, just noting that…. I guess the question is: can you provide a new line of questioning, given that this response, that this line has been…?

G. Kyllo: Yes, thank you, hon. Chair. I appreciate that the minister has provided a consistent response. But I do believe it important to make the point, maybe multiple times, that for an applicant that is seeking to have their international professional credentials recognized and who makes that application to a regulator….

If there are any subsequent changes to the rules, the bylaws or policies by which the regulator makes the determination, it would only seem realistic and fair that the applicant is notified and made aware of any of those subsequent changes and that to expect either an applicant or even the superintendent to only be made aware by reviewing a website and then to try and determine and compare two documents to look for changes, because the minister has not yet even acknowledged the fact that any changes should be highlighted or notified or brought to the attention of the general public….

[4:35 p.m.]

Document A is posted summer of 2024. An amended version of that is posted two months later. How would anybody be aware there were any subsequent changes? There’s no document control required. There’ll be no provisional requirement for the regulator to determine or even advise the public that the bylaw that an individual may be looking at in October is anything different than what might have been there in July or August. This whole piece of transparency and providing certainty to the applicants is front and centre to the legislation that’s before us.

If the minister is able to provide some comfort, maybe, to this committee that the superintendent will, as part of best practices, be giving consideration to that, take this point into consideration to ensure both the public and the superintendent have confidence in the information that’s being provided and to be able to easily identify any subsequent changes, I think I’d be satisfied with that. But the minister, to this point, has basically just said: “It’ll be what it is. It’ll be posted on the website, and let’s move on.”

This is a very important point, so I hope the minister might be able to provide maybe a bit more reassurance to this committee that as part of that best practices review, something as important and inherent as document control would form part of those best practices.

[4:40 p.m.]

Hon. A. Mercier: I think that this now, at this point, has been fairly well canvassed. Not everything that’s good in the world happens as a consequence of regulation or legislation. There are many tools in the toolbox to work with regulators to meet these standards, and there are many regulators that, by virtue of their own policies and bylaws and their own home statutes and other legal obligations that are on them, have a practice of notifying or an obligation to notify the profession when there are changes that are made.

This goes fundamentally to a question of trust in the relationship of the office of the superintendent of international credential recognition and the regulatory authorities to carry out their obligations in good faith and not purposely mislead the public or applicants or seek to bury information. I mean, I don’t think that the regulators won’t act in good faith on these, particularly where the team has been engaged with the regulatory authorities now for some period of time and is actively engaging with them on these questions.

I furnished, for the member, the draft guidelines. These are draft guidelines and are being engaged on and may be changed as a consequence of that engagement, but that themselves talk about best practices for the online presence of the regulator and those pieces. I think this is pretty clear and pretty straightforward.

I would say again that for international applicants that are going through the international credential assessment process, the regulator has an obligation in Canadian law, which the regulators are very aware of and is very strong, to conduct themselves in a manner that is procedurally fair to the applicants as they go through that process. I think those protections are there.

G. Kyllo: On section 19(e), the clause indicates and states specifically or relates to “information about the length of time that it usually takes for a determination to be made in an international credential assessment process.”

Can the minister identify or provide a definition for “usually”? Is that an average, or is that a weighted average? What would be the determination of “usually,” and how would the superintendent, in any way, shape or form, determine the accuracy of the information that the regulator might report out as the usual amount of time for the determination of an international professional seeking to have their credentials recognized in B.C.?

[4:45 p.m. - 4:50 p.m.]

Hon. A. Mercier: The member raises a question that in some sense is, I think, pretty interesting. Why use, in 19(2)(e), the term “usually” as opposed to, say, “average”? I can confirm for the member that “average” was contemplated at one point during the drafting process. There are good reasons not to use the term “average,” and that mostly has to do with the complexity of measuring a process that can take a variety of forms across 18 different regulators in different periods of time.

So to use “average” would involve potentially very overly prescriptive legislation to resolve ambiguities around that, such as what calendar window are you looking at? If you have a process that begins in 2022 and takes 18 months, and you have different processes beginning at different times, it becomes difficult to take a snapshot.

That’s one example of many complexities. So the word “usually” is used instead to give regulators and the superintendent the latitude to look at the usual determination under normal circumstances as opposed to prescribing rigid conditions that aren’t practicable.

This also reflects that the regulators, as we’ve discussed and canvassed now quite in depth, are at different starting points in terms of data collection. One would expect as their data capacity matures throughout this process, and we have everyone on the same standard for collecting data, that there will be a convergence in terms of their ability to provide more meaningful stats.

G. Kyllo: So it sounds that it’s more gut than science. You know, a weighted average, I think, would probably achieve maybe what the minister is referring to in the definition of “usually.”

How will the superintendent or the minister have every confidence that the reported timeline that is set out or provided by the regulator meeting the requirement of “usually” in any way, shape or form is accurate?

Without the reporting of real data on the number of applicants that have been received by the regulator, with­out clear reporting on the number of applications that have actually satisfied all of the obligations — and the regulator is actually under review — without determining the start date or the closing date, if there’s no reporting on all of that information, I guess we’ll just have to take it at the regulator’s word that the reporting on “usually” is accurate.

I see no other ability for the superintendent or the minister, for that matter, to determine that the information — as far as “usually” — is correct and accurate and can be in any way measured as far as future performance improvements or degradation thereof when it comes to applicants that are looking at applying to have their international credentials recognized here in B.C.

I would assume, although “usually” as a number that the minister has alluded to and set forth in this legislation…. I do believe that it would be very valuable for applicants to understand: “What’s the shortest time frame that I might be able to deal with, if I can satisfy all of the requirements? What’s the longest period of time?”

Then maybe a mean average or usual might be something that is reported out. But I see nothing in this legislation that in any way, shape or form provides the superintendent any ability to question or to scrutinize the authenticity of a number that would be represented as the number of months it would be “usually” anticipated in order to have their credentials recognized.

So it seems a bit nebulous. Maybe the minister can clarify if there’s any additional requirements for reporting of information that would provide some confidence to the superintendent that the number reported on the website is indeed accurately reflective of the time it takes for the issuance of internationally trained professionals — for their credential recognition.

[4:55 p.m.]

Hon. A. Mercier: Well, I certainly hope the member isn’t suggesting the regulators will deliberately play games with data in order to obfuscate results in any type of a test. I’m not suggesting he says that, but I just want to be clear that that is not the understanding we’re operating under and that we had when we put the legislation together. We’ve been working very closely with the regulators.

This provision, in particular (e) in interaction with 19(2)(f), means that the timeliness standards for determinations that we canvassed previously in clause 14 will be a yardstick that’s used to measure the determinations and the success around that. I think that this provision does a good job of setting standards to make sure that the process is transparent for internationally trained professionals.

It’s also something that then, through the operation of the act and the iterative interaction of the superintendent of international credential recognition with the regulatory authorities going over the years and through the process, means we can strive towards increasingly better standards.

G. Kyllo: We’ve gone at great length, or I’ve certainly gone at great length, talking about the necessity of tracking data so that we can better understand any improvements or degradation to the timelines for the international applicants to have their credentials recognized in British Columbia.

[M. Dykeman in the chair.]

I have provided previously to the table a copy of an amendment that I propose with respect to section 19(2)(e). I have provided a copy to the minister in advance, so I won’t read it in its entirety. The substantive impact of this regulation would require and provide the opportunity for regulators to provide better tracking of data, which would, I certainly believe, provide the superintendent and the minister a better ability to track the performance of the regulatory bodies.

The proposed amendment on clause 19(2)(e) reads:

[CLAUSE 19, by adding the underlined text as shown:

Publication of information by regulatory authorities

19 (1) A regulatory authority must make information about its international credential assessment process available to the public on a website maintained by or on behalf of the regulatory authority.

(2) The information made available under subsection (1) must include all of the following:

(a) bylaws or policies required under section 13 [bylaws and policies];

(b) certification requirements for each regulated profession in respect of which this Act applies to the regulatory authority;

(c) for each regulated profession in respect of which this Act applies to the regulatory authority, information about the following, if applicable:

(i) alternative means of meeting any of the certification requirements;

(ii) the criteria used to assess whether the alternative means have been met;

(d) information about any requirement in the regulatory authority’s international credential assessment process for an internationally trained applicant to be assessed by a third party, and, if there is such a requirement, information about the third party;

(e) information about the length of time that it usually takes for a determination to be made in an international credential assessment process, including comparisons to each of the previous five years that outline the shortest timeframe, the longest timeline and the mean average;

(f) if applicable, the period prescribed under section 14 (b) [timely determinations];

(g) whether an appeal or review process exists in respect of determinations in the international credential assessment process, and if so, what the process is;

(h) information about application fees, certification fees or similar fees that are imposed on internationally trained applicants for certification and on applicants for certifications who are not internationally trained applicants;

(i) information about the process by which an internationally trained applicant may request information from a regulatory authority about the internationally trained applicant’s application for certification;

(j) if applicable to the regulatory authority, information in relation to decisions about exemptions made under section 21 [superintendent’s power to grant, amend or revoke exemption];

(k) if applicable to the regulatory authority, a directive of the Lieutenant Governor in Council or a directive of the superintendent;

(l) any information prescribed by the minister.]

I move that amendment.

The Chair: Members, we have an amendment to clause 19(2)(e). It’s in order, and we can circulate copies to all members.

Minister, on the amendment.

On the amendment.

[5:00 p.m.]

Hon. A. Mercier: This amendment…. I’ve said previously that the point here, in terms of this provision and in the act itself, is to make sure that we’re creating obligations for regulatory authorities in order to be fair, efficient and transparent. And that at the same time, we’re balancing that out against their ability to do their job.

What we want is we want regulators to do their job assessing the applications of international applicants and not spending all of their time on internal processes when we’ve got an office of the superintendent of professional governance that is able to set standards and is able to do that work through all of the means and abilities that we’ve canvassed in the House.

I think that this amendment isn’t one that I agree with, for all the reasons I’ve mentioned.

Amendment negatived.

Clause 19 approved.

On clause 20.

The Chair: Recognizing the member for Shuswap.

I sure picked the perfect time to walk in here.

We’re going on here. Over to you.

G. Kyllo: Hon. Chair, you’ve done a masterful job. Not the outcome that we were hoping for, but….

With respect to section 20, can the minister just confirm whether the original reports that are annually submitted to the regulatory authorities to the superintendent under section 20(2) of the act will be made publicly available?

Hon. A. Mercier: This is something we canvassed at length previously. There is an obligation on the regulatory authorities to do their own reports that they make public on their front-facing websites.

Under 20(2), the reports they’re submitting to the superintendent of international credential recognition are for the purpose of informing the annual report of the superintendent of international credential recognition. So it is that annual report that is the outcome of that process that will be made public.

G. Kyllo: I just want to confirm. Will those reports, both the public-facing one the regulatory body posts on their website and the report that’s submitted to the superintendent, are those one and the same, or may those reports be different?

Hon. A. Mercier: I apologize to the member. I actually misspoke there. There’s not a positive requirement by this act on the individual regulatory authorities to do their own annual reports.

[5:05 p.m.]

However, there is the positive requirement under section 19 to post publicly all of the data, which is fairly comprehensive from 2(a) to (k) and potentially (l).

The provision for the annual report in section 20 is the report to the superintendent for the purpose of…. You can think of it as the raw data for the superintendent’s annual report. That is not something that has to be made public, although a huge variety of information is on the individual regulator’s website through the operation of section 19 and transparency.

I would just add that this is a conversation we’ve already canvassed in the discussion of clause 10.

G. Kyllo: If the information, the annual report, is being provided to the superintendent, can the minister share or provide any reasons on why that same report would not be made available to the public?

Hon. A. Mercier: The member will recall our discussion in, I believe, clause 10 on the operation of the Freedom of Information and Protection of Privacy Act.

This is another layer of protection, in terms of personal privacy, so that nothing is inadvertently divulged around the international credential assessment process, given the data that the superintendent is going to be collecting — divulged inadvertently to the public.

You could think of an example where you may incidentally divulge personal information merely by the number of applicants going through the process.

G. Kyllo: I appreciate the minister’s response. I fail to understand how the concern of…. If the regulators are required to provide specific information, largely as set out in this legislation, to the superintendent for review, if that information is being divulged to the superintendent, and this is really about transparency and ensuring that both applicants and the general public have a good understanding of the work and the efforts that the regulators are undertaking, I see no reason why there would be concern about freedom of information.

Certainly, that is something that could be reviewed by the regulators or even, potentially, by the superintendent’s office to raise any concerns around any violations of FOIPPA.

But if that truly is the only reason why the information is not going to be made available to the public, I just hope the minister might be able to clarify with a bit more certainty on why that concern would be there and why the concern on a FOIPPA concern supersedes the requirement and the opportunity for the general public to have a clear understanding of what’s actually happening.

[5:10 p.m.]

Hon. A. Mercier: In answer to the member’s question, first I’d like to say that what this legislation is going to do in its totality is make accessible a public understanding of the international credential assessment process across British Columbia in a way that has never happened before in this province. It’s going to be a considerable sea change from business as usual in terms of what’s going on with international credential assessment. I think that’s something the member, myself and everyone in the House can agree is a positive thing.

For internationally trained professionals or any professionals that I’ve talked to, what they do for a living and what they’ve trained to do is who they are. It cuts immediately to the heart of who most folks are as human beings. It’s incredibly personal.

The superintendent…. The regulatory authorities have a profound power over those individuals, over all regulated professionals. The superintendent is also imbued with a lot of authority and power here, and it’s important that we use that in a judicious way so as to protect the personal privacy and integrity of individuals.

Collecting this data and the process to collect the data for the annual report, like I said, is going to be transformational in a lot of senses, and for all the reasons the member has raised previously about why we need to collect data. But making sure that we take a judicious eye to that is incredibly important and runs throughout the legislation, from the cautions in clause 10 about privacy straight through to the confidentiality provisions around the superintendent in clause 54.

[5:15 p.m.]

The member asked for an example. I’ll illustrate a potential example. It is feasible or possible that you have a regulator that has a few dozen international applicants a year. We haven’t yet prescribed what the data points are going to be, exactly, that we’re asking them to collect, because we are engaging on that with the regulators right now. So it would be premature to jump the gun on that.

But, for instance, it is conceivable that we ask about things like age, like gender, like country of origin. If you have a regulator that has a few dozen international applicants, and you could very easily tell, through the data…. If you have only one female applicant of African origin and that individual has been declined, it’s very conceivable that you functionally make that public through the disclosure.

Having that extra layer of protection to have the superintendent there to collate and collect that is incredibly important. It is something that I think is right and is, I think, frankly, something that we’re going to benefit from as a society.

Clause 20 approved.

On clause 21.

Hon. A. Mercier: I’d like to move an amendment that I’ve circulated with the Clerk.

I would say that I’m indebted to the member for raising this issue with me. The amendment as circulated is an amendment to clause 21, which deletes the reference in 21(b) to 16(2)(b) — as has been correctly pointed out, there is no 16(2)(b), but there is a 16(b) — and substitutes that with 16(b).

[CLAUSE 21, by deleting the text shown as struck out and adding the underlined text as shown:

Superintendent’s power to grant, amend or revoke exemption

21 (1) The superintendent may, on application, grant an exemption to a regulatory authority in respect of the following prohibited requirements:

(a) a Canadian work experience requirement;

(b) a requirement prescribed under section 16 (2) (b) 16 (b) [prohibited requirements respecting Canadian work experience and prescribed matters].

(2) The superintendent may, on application or on the superintendent’s own initiative, amend or revoke an exemption if the superintendent is satisfied that one or more of the following applies:

(a) new information has become available that was not available at the time the exemption was granted;

(b) there is a change in circumstances that affects whether an exemption should be continued.]

On the amendment.

G. Kyllo: I just wanted to thank my research officer Parnian Taheri, who actually brought this to my attention. I brought it forward as a table amendment earlier today to the attention of the Clerk, who provided, conveniently, a copy to the minister. I certainly appreciate the opportunity and the work that my research officer has done to alert me to this error within this piece of legislation.

The Chair: Members, I’ll just restate that the amendment is to clause 21(1)(b).

Amendment approved.

On clause 21 as amended.

G. Kyllo: In a previous clause, we did actually speak to the opportunity for a regulatory body to actually seek an exemption with a specific reference to, I believe, clause 16. In any event, can the minister set out what that application process specifically will be for the regulatory body to seek that exemption from clause 16?

Then subsequent to that, should it be the determination of the superintendent not to grant that exemption if there is an opportunity for an appeal process for the regulator?

[5:20 p.m.]

Hon. A. Mercier: For the member, the process…. I can talk a bit about the intention behind the process, because part of it will deal with prescribed regulation on criteria that we’ve had a brief discussion on in the discussion on clause 16, prospectively.

The exemption process is governed by clause 21 through to clause 24. What clause 22 does is stipulate the form that the application for the exemption has to be in, which is in writing and including required information, etc.

So 23(1)(b) sets out an obligation for the Lieutenant-Governor-in-Council to prescribe criteria for the superintendent — because it will be the superintendent that makes the determination on an exemption application — to make that adjudication. As I’ve mentioned, this is work that is being engaged on currently with the regulators, grounded in the principles of balancing the principles of professional regulation, which, as the member rightly pointed out and has pointed out several times in this debate, include things like the safety of the public. But also looking towards….

We’re engaging on the criteria, and there will be set criteria that come out of that engagement and regulation. In balancing those regulatory objectives, there’s also a practical underpinning to it. I think a good way to think of it, for the member, is really as a functional question of whether or not the competency or skills that the Canadian work experience requirement is substituting or acting as a signal for can be measured a different way. So balancing those objectives and balancing the practicality of a different method of measuring it.

There will be, under section 69, which is a transitional provision, six months after the act comes into enforcement, that the prohibition on Canadian work experience comes into enforcement, which gives time for the regulatory authorities that wish to seek an exemption to make their exemption applications and for it to be adjudicated. Subsequent to that, under sections 49 to 53, there is a reconsideration process for a decision of the superintendent as well.

[5:25 p.m.]

Clause 21 as amended approved.

Clauses 22 to 24 inclusive approved.

On clause 25.

G. Kyllo: Can the minister elaborate on the procedure regarding an audit under section 25 of this act, with a specific reference to what would prompt the superintendent to conduct an audit under section 25?

Hon. A. Mercier: Under clause 25, the superintendent has the authority to conduct an audit. It really spells out in the act about general procedural matters, systemic procedural matters, which really may be something that flow from the data or from the reporting over time as well as the guidelines.

Under section…. This doesn’t operate like the Canadian work experience exemption. This doesn’t operate in isolation. It kind of triggers a whole passage of things through the subsequent clauses.

[5:30 p.m.]

The outcome of one of those audits may very well be a determination by the superintendent to issue new specific guidelines as a consequence of that.

If the superintendent still isn’t satisfied those guidelines are being considered, there is, then, the ability to prescribe that as a matter for inspection under section 27, which brings in some more serious escalation powers, although I would say that to go down that route would require a pretty significant bad actor. In fairness to the regulatory authorities, I have a hard time seeing it get that far down the road.

I think the question the member was asking, in practical terms, is: when the rubber meets the road, on the ground, what will trigger an audit? Under what circumstances would the superintendent, he or she, do an audit of a regulatory authority?

There are really two baskets you could put that under: proactive audits or responsive ones. It may be that the superintendent makes a determination that they’re proactively going to audit all regulators, across the board, under their authority on a particular matter to get an environmental scan of where the regulators stand, who’s doing well, who’s not, etc., and who needs extra help. Or they could be responsive. They could be targeted audits that come out of very specific complaints or of signals we get through the data through the annual reports.

G. Kyllo: The minister referenced, in his response, proactive audits. I think we can all appreciate that any organization undertaking an audit…. It takes considerable time and energies. It would surprise me that the minister would indicate that the superintendent may want to undertake proactive audits.

If the opportunity for the proper reporting of information is there…. Really, the only metric, for the most part, that’s being reported out is the usual time frame.

I can only imagine that if an organization, in year 1, says that the usual time frame is 12 months…. In a subsequent year, maybe it’s now…. The usual time frame is 14 months. You might be able to make the determination that there has been, maybe, some deterioration in the time frame. If that’s not taking into consideration the number of applicants and staff resources and all the rest, the wrong conclusion could be quite easily made.

I think regulators would be very interested in having a better understanding of under what conditions they may be subject to an audit. It would have a considerable administrative expense for their organization.

I just wonder if the minister might be able to provide a bit more clarity on what might prompt the superintendent to undertake a proactive audit.

[5:35 p.m.]

Hon. A. Mercier: In answer to the member’s question, this is a pretty well-established best practice among fair registration acts across the country. The relevant comparable bodies in provinces like Ontario or Manitoba or Nova Scotia regularly conduct performance audits proactively on regulators under their jurisdiction to ensure compliance.

The superintendent of professional governance has conducted a number of performance audits, which are publicly available on the OSPG’s website, of regulators under their jurisdiction and has the experience of doing those audits in a collaborative, considerate way. It’s not unlike, in a sense, an audit from the Auditor General. I mean, there are always efficiencies that could be found. There’s always something that could be learned.

There is a huge benefit in terms of the relationship and having the superintendent, as well, understand how the regulators work, having that insight, and how they work on a given matter that may be under the consideration of an audit.

I should say, for the regulators’ understanding, that any audits would be narrow in scope. They wouldn’t come in and be broad organizational audits. I mean, it would be limited and targeted towards whichever matter, under the act, the superintendent is looking for an environmental scan of.

Now, that being said, there’s also, like I said…. In fairness to the member…. The member’s question was about proactive audits. I think I’ve covered and canvassed that.

There also are reactive or targeted audits, which I think everyone pretty clearly understands, right? If you see smoke, you need to go check and see if there’s fire. I think that these are good standard practices that have worked very efficaciously in other jurisdictions.

Clauses 25 to 27 inclusive approved.

On clause 28.

G. Kyllo: Can the minister provide or state what measures are in place to protect individuals that are compelled to provide evidence and disclose information to the superintendent during an inspection?

[5:40 p.m.]

Hon. A. Mercier: For the member, this is another ex­ample of where the well-trod principles of the province of administrative law apply — in terms of the obligation of the superintendent, in this instance, to act in a procedurally fair and just manner — and come into play.

That is a whole body of law about making sure that the powers of administrative decision-makers like the superintendent are restrained properly to their proper person and process and that the individual in question is treated fairly. All those protections are there and available.

G. Kyllo: Just as a bit of clarity, would those protections that the minister has cited on the record apply to all individuals, whether they be under a regulatory body administrated under schedules 1, 2 or 3?

Hon. A. Mercier: For clarity, this is to go back to the beginning of the debate. We had a discussion about the rationale for the different schedules.

These powers relate to schedules 1 and 2 but not schedule 3. The power of inspection is not applicable to regulators under section 3 of the act.

G. Kyllo: Well, my initial question was with respect to section 28, on efforts that would be undertaken to protect individuals compelled to provide evidence and disclose information to the superintendent during an inspection. I would assume that those protections would be similar, regardless of what regulatory body you may or may not work under or for.

I know there’s a further reference specific to these schedules in a subsequent section, section 45, which we’re not on yet, but I’m just wondering why it is that individuals working under any of the regulatory bodies that are under schedule 3 would not have the same protection as those working under schedules 1 or 2.

Hon. A. Mercier: Thank you to the member. The reason is that section 28 deals with the power to compel persons to give evidence and to order disclosure in an evidentiary process in an inspection for the purpose of inspection under section 27.

[5:45 p.m.]

The language of section 27 limits that inspection to schedules 1 and 2. So for all the regulatory authorities that are germane to this section and that it is applicable to, yes, that body of law applies. But because it’s not applicable to section 3, it’s not a consideration.

G. Kyllo: Thank you for that clarification, which then leads to the question: why would the superintendent not be provided the opportunity to provide audits for those regulatory bodies under schedule 3?

Hon. A. Mercier: For clarity, under section 25, the superintendent of international credential recognition can audit regulatory authorities across the three schedules. For the limitation on the inspections being to schedules 1 and 2, that goes back to the rationale for having the different schedules in the first place.

If the member will recall, schedule 3 comprises, with an exception that I’ll mention here, regulatory authorities that are under the direct control of government. If there is an issue raised by an audit, through the lines of responsibility to ministers and to cabinet, rectifying that is under the control of government, in a way that it’s not with self-regulated professions.

The caveat or exception is that the Law Society and notaries public are also included in schedule 3. Their inclusion there is a recognition of the principle of the independence of the bar and in deference to the rule of law, which is a unique consideration. It’s really a question of the application of the various powers.

Clauses 28 to 41 inclusive approved.

On clause 42.

G. Kyllo: Might the minister be able to explain what is meant by the phrase “exercise of reasonable diligence” under section 42 of the act and provide some examples?

[5:50 p.m.]

Hon. A. Mercier: This is a fairly common provision across a variety of statutes. Section 42(2) makes a reference to section 48, which has to do with furnishing false information.

What the exercise of reasonable diligence means here is that if the individual who has given false information has done the minimum amount of diligence or fact-checking that a reasonable person would be assumed to have done…. If that had been done and they still weren’t able to ascertain that it was false information, then they haven’t committed an offence of providing false information.

Clauses 42 to 78 inclusive approved.

Schedules 1 to 3 inclusive approved.

Title approved.

The Chair: Thank you, Members. That was wonderful.

I just wanted to see if either the minister or the member would like to make some final comments.

Seeing none from the minister, Member, do you have any last comments you’d like to make before we have the minister move the motion?

G. Kyllo: Thank you very much, hon. Chair. Certainly, I appreciate the responses from the minister and the support of his team. I know that it was quite a lengthy debate and lots of information shared.

I still have some reservations about the outcome and the measurabilities, or the lack thereof, and reporting out. But I certainly do applaud the efforts and the recognition that I think many of our internationally trained foreign professionals have, and anything that can be done to help them in obtaining the ability to perform their professions here in British Columbia is certainly valid, and I’m fully supportive of that.

Hon. A. Mercier: Likewise, I would thank the member for the respectful tone and inquisitive nature of the debate that I think has ultimately been very helpful throughout this process. Just note that this bill represents a sea change in the whole manner of which international credential assessment is done in British Columbia, and it’s going to improve a lot of lives.

With that, I move that the committee rise and report the bill complete with amendment.

Motion approved.

The committee rose at 5:55 p.m.


PROCEEDINGS IN THE
BIRCH ROOM

Committee of the Whole House

BILL 40 — SCHOOL AMENDMENT ACT, 2023

(continued)

The House in Committee of the Whole (Section C) on Bill 40; K. Greene in the chair.

The committee met at 1:41 p.m.

On clause 4 (continued).

The Chair: Good afternoon, Members. I call Committee of the Whole on Bill 40, School Amendment Act, to order. We are on clause 4.

Hon. R. Singh: Just before the recess, the member had asked a question. I want to reiterate that self-determination is at the heart of reconciliation, and it is not my job nor anyone’s in the ministries to tell a nation what they can comment on and that there should be a list of certain topics only.

This legislation moves away from the existing colonial framework. The current system continues to fail Indigenous learners, and we must do better. That’s what the whole purpose of this legislation is.

It seems to me that the member is looking for assurances on what, when and how IECs will examine certain topics. I want to make clear that that very approach of being prescriptive is just more of the same. And what we have heard clearly from First Nations is that they want more authority in decision-making to improve outcomes for Indigenous learners.

These Indigenous education councils shift the power to the First Nations and Indigenous partners at the table, and the focus of the work as directed by First Nations has been on student learning and improved academic outcomes. Anything that is impacting Indigenous student learning could be raised at the local Indigenous councils, including capital.

Each First Nation comes with their own set of needs, priorities and interests. The changes being proposed are designed to be broad and flexible to respond to each First Nation’s priorities. The priorities will be specific to that school community, the local contacts, the relationships. The direction of the rights holders and Indigenous partners will guide the path forward. What we are doing with this legislation is taking a hard look at inequities and committing to Indigenous people across the province that we will do this work together.

M. Lee: I appreciate the minister’s response.

I certainly recognize that the path we’ve been on since 2019 with the passage of DRIPA has been very much about creating, not just the alignment of laws with UNDRIP, as required under section 3 of DRIPA itself, but the legislative space. We saw that with the Indigenous self-governance and care-of-children bill that came forward a year ago. We saw that with the emergency management disaster recovery bill that we just dealt with, with the member for Cariboo-Chilcotin. We’re seeing it with this Bill 40 as well.

[1:45 p.m.]

The concern I’m raising, though, is not about suggesting in any sense that we are guiding or limiting what a First Nation member of the Indigenous education council can consider. The minister is saying that is not limited in any way.

Under sub 87.001(1)(b), when it says, “advising on grants provided under this Act in relation to Indigenous students,” that includes capital grants.

I’ve said to the minister my concern. In 87.002, there’s specific reference to a section of the School Act, 106.4, which deals with targeted grants. My reading of 106.4 deals with operational grants.

I invited the minister to take us to the specific provisions under the School Act that would deal with capital grants. I would still invite her to take me to those sections. I’m asking for clarification and confirmation from the minister that the language, as she suggested in her previous response, under sub 87.001(1)(b), applies to capital grants.

I’m looking for the term “capital grants” in the School Act in effect. It is drawn into sub (b) of this provision because the minister is suggesting that this sub (b) provision includes capital grants. For example…. I invite the minister to correct me. I’m not the critic and shadow minister for Education.

I’m asking the minister…. We’re dealing with Indigenous education councils. When I look, with a quick read, at the School Act, division 6 deals with capital plans and money bylaws. It could be that I’m in the wrong division of the act. When I quickly look for the word “capital,” that’s the section it appears in.

I will say again. In my comments yesterday, at the end of the day…. I certainly have an interest, as the member for Vancouver-Langara, in other sections of the School Act. I see in division 6, “School property,” “Acquisition and disposal of land and improvements.” I won’t go there. I will just go back to again capital expenditures for the purpose of Indigenous education councils.

Where are capital grants? What section is capital grants dealt with in the School Act?

[1:50 p.m.]

Hon. R. Singh: This would cover any grant under the School Act, primarily found under division 3.

M. Lee: I look at division 3, payment of grants, and I see, for example, “Special purpose grants.” Under sub 115(2): “If the minister considers that a capital project should include accommodation for a provincial resource program or any other special program or activity designated by the minister, the minister may pay all or part of the capital costs of that capital project.”

When I look at division 3, “Grants,” I believe that’s the only section, on a quick read, that deals with capital. Oh, I would say 115.1: “The minister may pay to a board an annual facility grant to be used for annual facility projects.” That may also be….

And then of course 116, “…the minister must pay all expenditures incurred,” but that’s not a grant. I think we’re back to two types of grants, special purpose grants and annual facility grants that might involve some capital component.

So the minister is saying that, by virtue of sub (b) in this clause 4, that special purpose grants and annual facility grants are included as part of what an Indigenous education council could advise on. Is that correct?

Hon. R. Singh: Yes.

M. Lee: I think we’ve gotten the response and the clarification that I was looking for now that we’re in the right sections of the School Act. Thanks for that.

Again, the reason why I’m asking these questions next is because unlike operating grants under 106.4 and what is referred to as a targeted grant, by general reference, the minister is acknowledging covering special purpose grants and annual facility grants under sub (b). When I look at the wording of those provisions, section 115 and 115.1, it just invites the following questions.

If the minister considers that a capital project should include accommodation for a provincial resource program…. In the context of an Indigenous education council or another special program or activity designated by the minister, how will that apply to what an Indigenous education council can turn their minds to provide advice on?

When we’re talking about special programs or activities, can the minister give an example as to the types of advice the minister would be looking for? What types of advice does the minister contemplate would be provided to an education board to deal with these types of projects? Presumably, this may be the case where they’re only advising on grants that the board actually receives.

[1:55 p.m.]

Is it the case that Indigenous education councils can actually make requests for these funds, so all we are talking about is that the boards themselves need to be advised by these Indigenous education councils on the grants that are provided? How does an Indigenous education council actually trigger any access to these grants, if at all?

Hon. R. Singh: As I’ve said before, the focus of this legislation and the Indigenous education councils is the learning outcomes of the Indigenous students. The advice that the Indigenous education councils will be doing…. Even on the grants, it would be on the grants that are meant for the Indigenous students and that will improve the learning outcomes.

I’m sure the member opposite agrees with me, and we have talked about this — the systemic barriers, the systemic gaps that the Indigenous students have faced for generations. That’s what this legislation, and especially the role of the IECs, would be, looking at those student outcomes and how those can be improved.

M. Lee: I appreciate the minister’s response, which is consistent with her earlier responses, of course.

Perhaps just in the context of this provision and on the topic of grants, could the minister, though, give us some examples as to how special purpose grants or annual facility grants might be advised upon by Indigenous education councils, given the nature of these types of grants?

[2:00 p.m.]

Hon. R. Singh: In the special purpose grants, we can…. An example could be the feeding futures grant, like $214 million has been allocated for three years. The boards of education can consult with the Indigenous education council, especially on the culturally appropriate foods.

Another example which I can think of is the mental health in schools, the grants related to that.

M. Lee: Recognizing the time that we have left here, I’m just going to move on to a few more questions on this clause.

The section under sub 87.002(b) uses the words: “after the grant is spent, approve the board’s report, if any, on the grant’s spending.”

There are a couple of questions that arise from that. In terms of expenditures by the board of target grants, when it says the words “if any,” who decides whether there’s a requirement to provide a report? That is, the board of education needs to provide a report on the expenditure of a grant. Who makes the decision as to whether a report is necessary to be provided?

Hon. R. Singh: Currently the only targeted funding is the Indigenous target funds, where I do require annual reporting.

M. Lee: I’m just trying to square the minister’s response against the wording in the act, though. The minister is suggesting that she will require a report. Is that correct? In that case, why are the words “if any” here?

[2:05 p.m.]

Hon. R. Singh: It is optional to ask for any extra reports. At this time, as I said before, the only annual reporting that is required is for the Indigenous target funds.

M. Lee: I’m still not understanding the response.

This provision, though, is coming into the School Act, and it relates to Indigenous students. So when the minister says it’s the only type of report that is required…. Well, the language of the act is saying it’s targeted grants related to Indigenous students.

I don’t see, given the minister’s response twice now, where the option is here for the board to actually file a report. All the reports that we’re talking about here…. It does say “after the grant is spent.” I presume, of course, that means after the grant that’s referred to in 87.002, the targeted grant that’s relating to Indigenous students.

I’m not seeing where the optionality is here for the school board not to file a report, based on the minister’s response. If that’s the case, shouldn’t the words “if any” be struck?

Hon. R. Singh: Presently there’s only one target funding, which is for the Indigenous student learning, for which the reporting is required.

The reason we have that language is for future purposes. In future, if any other targeted funding is created, then there’s the flexibility and option for the minister, at that time, to require reporting or not. It is for the future. It is flexibility for the future, any future targeted grants.

M. Lee: I think I’m starting to understand what the minister is presenting here.

Just to clarify, then, what the minister is conveying is…. Currently there is a specific type of targeted grant for Indigenous students. Perhaps the minister could just, again…. I think she probably said it, but I didn’t quite catch it. What is that type of targeted grant for Indigenous students currently that is being provided?

The minister, then, is suggesting that, in the future, there may be other types of targeted grants for Indigenous students which are different from the current type of targeted grant for Indigenous students. Therefore, the minister and the ministry want to maintain the flexibility for other types of targeted grants for Indigenous students.

I just want the minister to confirm that my understanding is correct. If that’s the case, could she just please again identify what the name of the current targeted grant for Indigenous students is?

[2:10 p.m.]

Hon. R. Singh: Currently there is only one targeted grant for Indigenous students, which is the targeted Indigenous education funding.

M. Lee: In terms of the approval by the Indigenous council, the expectation, of course, is that the Indigenous educational council will approve the report that the board files in respect of the Indigenous engagement grant, the targeted grant currently. If the Indigenous education council does not approve the report, what happens then?

Hon. R. Singh: The purpose of the Indigenous education councils…. There should be an alignment between the IECs and the board of education on how the board of education spends the targeted funds. The report is based on how the funds were used.

[2:15 p.m.]

If the report is not approved by the IEC, the ministry will be following up with the board to find out the reasons that that report was not approved by the IEC.

Clauses 4 to 10 inclusive approved.

Title approved.

Hon. R. Singh: I move that the committee rise and report the bill complete without amendment.

Motion approved.

The committee rose at 2:16 p.m.

Committee of the Whole House

BILL 39 — ZERO-EMISSION VEHICLES
AMENDMENT ACT, 2023

The House in Committee of the Whole (Section C) on Bill 39; K. Greene in the chair.

The committee met at 2:28 p.m.

On clause 1.

The Chair: Good afternoon, Members. I call Committee of the Whole on Bill 39, Zero-Emission Vehicles Amendment Act, 2023, to order.

R. Merrifield: I’m going to defer the introduction and opening statements to my colleague for Kootenay East.

T. Shypitka: Thank you to the minister and her colleagues for giving us some time here today on Bill 39, Zero-Emission Vehicles Amendment Act.

Now, this bill is going to be…. It’s not too overly complicated. It’s not overly long. But there are some fundamental principles in here that we’ll be canvassing to get some clarity on, here in committee stage.

I think, generally speaking, what this bill reflects is targets and achievable goals. Those achievable goals have to be responsible, and they have to reflect the actual outcomes that we can all be proud of.

Nobody on this side — on the opposition side, anyways — opposes setting targets to do what we can to lower our emissions, but they have to be achievable, and they have to be recognized that way.

[2:30 p.m.]

Going from there, I’d like to turn it over to the member from Kelowna West. Sorry, Kelowna…. Oh man, I’m going get this one wrong here. I can’t remember now. From Kelowna, to start off with her general questions.

The Chair: Recognizing the member for Kelowna-Mission.

R. Merrifield: Thank you so much, Chair. Kelowna-Mission. Kelowna-Mission. Chair, if you could just say it a few more times, then maybe my colleague will get it.

I will just echo the sentiments of my colleague from Kootenay East. Obviously, we are all about responsibility and stewardship and the environment, but we also want to hold that intention with our economy, with the cost of living that our citizens are facing today and what the acceleration of these time frames mean to us. I’m very excited that we can get into the meat of this bill.

I will start off with a question just on the consultation that was performed. The minister had indicated that these amendments were informed by extensive consultation. Can the minister please provide details on who was consulted in the preparation of the amendments and the acceleration of these time frames?

Hon. J. Osborne: Welcome to everybody. Thank you for your interest in Bill 39.

Just before I get going, I would like to introduce the staff that I have with me here today. We’ve got Nat Gosman. He’s the acting assistant deputy minister for the energy decarbonization division. Christina Ianniciello is the acting executive director for the clean transportation branch. And with me, as well, is Tamara Garriock. She is the senior policy adviser in the clean transportation branch as well. They’ll be supporting me throughout this committee stage.

Thanks to the member for the question around consultation. I’ll give her a general answer, and then she might have some more specifics that she’d like to follow up with.

But I can tell her the consultation has included a ZEV Act and regulation formal review intentions paper that went out to stakeholders for comment during the summer of 2022.

There was a webinar for vehicle suppliers. There were individual meetings with technical stakeholders that were held upon their request, and we engaged with First Nations through a CleanBC Roadmap to 2030 Indigenous engagement process.

The input that was received from all of these processes, through all of the consultation processes, has really helped to inform the final proposed amendments in the act.

I’ll leave it at that and see if the member has any follow-up.

R. Merrifield: From what the minister heard in the consultations, which amendments in the bill generated the most concern?

[2:35 p.m.]

Hon. J. Osborne: Thank you to the member for the question.

I think it’s fair to say, amongst all of the amendments that are being proposed in Bill 39, that the one that generated the most conversation and concern was the target for 2030. This was feedback that was provided both ways. Both concern that we weren’t moving fast enough and needed to bring the target to 100 percent by 2030 but also the reverse — that people were concerned about reaching the 2030 target.

That was the single amendment that generated the most feedback.

R. Merrifield: Thank you, Minister, for the answer to the question.

I can understand the concern for 2030. I mean, it’s a very quick amount of time for a turnaround. I know that six years feels like a lifetime, but it is quite quick to turn around production and supply chains, etc. What was the response to those concerns?

[2:40 p.m.]

Hon. J. Osborne: Since the 2019 ZEV Act was first brought into place, we’ve had a continued commitment to a program and infrastructure development. This includes regular reviews of the ZEV act. In fact, this is the first formal review that has taken place, and it has led us to today to propose these amendments.

We all also set up the zero-emission vehicles advisory council. This is a group of people that will be helping government staff to continue to assess the market and provide input into ZEV policies. We’ll be receiving regular information, as well, from suppliers as we move forward.

R. Merrifield: The minister’s answer was a little bit concerning, I guess. I’ve got some of the responses that came out of the request on the paper and a quote from BCBC that talks about that the expected negative economic impact is currently substantial and widespread.

I’ve got another letter here from Honda Canada. The added cost could result in higher prices for vehicles, for consumers, reduce dealer profitability and have a spillover effect on employees and other local businesses. It could also include a reduction in vehicle offerings and have leakage of sales to neighbouring jurisdictions.

Perhaps the minister could respond. This committee that is looking at this: how will they respond if these negative consequences actually occur?

[2:45 p.m.]

Hon. J. Osborne: I appreciate the perspective the member opposite is coming from, and I note those were two particular responses that she read into the record there.

I think it’s important for us also to go back to first principles and why the ZEV Act exists in the first place. I know that back in 2019, when the act first came in, there was skepticism about whether we would be able to achieve these targets. It absolutely is about finding the right balance so we can achieve the market transformation that we’re looking for, drive down the greenhouse gas emissions from the transportation sector here in British Columbia, and help people make healthier and ultimately more affordable choices in the way they choose to drive.

This is a growth market. I think it’s important to note that we greatly exceeded our expectations for meeting that first target. We beat it by four years, in fact. So the economy-wide transformation that’s taking place…. We’ve invested, as a government, into skills development around EV technicians, for example, invested across the supply chain.

To date, the B.C. ZEV sector is delivering a significant number of jobs and economic opportunities in the prov­ince. That includes an estimated 274 companies and organizations that are involved in all aspects of the EV sector, over 11,000 people in total employment in the sector, $1.15 billion in total contribution to the provincial GDP and over $2 billion in total economic output.

The role of the ZEV advisory council will, of course, be to provide timely information and be a place for government to be able to hear that in a timely way. The member, I think, is concerned about making sure that government is responsive to the outcomes that we see. That’s absolutely the intention of the regular reviews — and of the council to be there to provide advice to government.

R. Merrifield: Thank you, Minister.

Although the minister didn’t seem to really answer my question, which was: what happens if it is more expensive? What happens if we’re not able to meet the targets? What will the response of this committee be at that point with respect to any negative aspects of this bill?

[2:50 p.m.]

Hon. J. Osborne: I think it’s important to note that the amendments being proposed come from extensive evidence-based policy development and that there are monthly, quarterly and annual reviews of the market that take place. There is the ZEV Advisory Council, which can also provide feedback to government. The targets being proposed in this legislation take new intelligence from the market and build off some of the trends and the forecasted trends that we’re seeing.

We’re certainly not alone in this in British Columbia. We’re seeing this in Quebec, California and the federal government with their ZEV targets as well. While we are certainly not expecting the outcomes that the member describes — for example, that cars would become more expensive over time — we do have the processes in place to be able to respond to that, should that come. That could include, for example, adjusting the targets if it were necessary.

Just to reiterate, to date, that’s the opposite of what we have seen in this evidence-based policy work. It’s the substance behind the amendments that are coming forward today.

R. Merrifield: The minister referenced 11,000 jobs in this sector. I remember reading that on the original press release as well. Could the minister describe where those 11,000 jobs are, perhaps even giving me a detailed breakdown of where they’re located, and also if they are new and related specifically to ZEV vehicles or simply related to zero emissions in general.

[2:55 p.m.]

Hon. J. Osborne: The 11,000 jobs are spread across the ZEV supply chain. This includes research and development, parts, infrastructure, some vehicle development, battery recycling, EV technicians and at post-secondary institutions that are teaching EV technicians, for example. The majority of these jobs are in the Lower Mainland, but they do exist in other places in British Columbia, and 4,500 of these jobs are new since 2015.

We will follow up with the member after. We can provide as much detailed data as we have on the composition of those 11,000 jobs, as she asked.

R. Merrifield: Thank you, Minister. I would be interested.

Here are some other questions that I have. If these could be answered in that same brief that’s supplied, that would be great.

I’d love to know the breakdown of private sector versus public sector jobs. I’d love to know if these are new jobs. I’d love to know which sectors these jobs exist in, whether it’s manufacturing, service or supply, etc.

[F. Donnelly in the chair.]

We have a mechanic who has been fixing ICE vehicles for his or her entire life. They get the training to work on ZEVs, as is desperately needed. I know the Tesla mechanic comes into town once a month, and it’s a rush for all the Teslas in Kelowna. My concern is that that’s considered part of those new jobs, even though he or she was simply trained and received new training. I do want to see a breakdown of all the different jobs and where they’re created, etc.

My next question is back to the whole affordability aspect of this. It is the amount of subsidy that’s currently on ZEVs today. Has the use of the subsidy since implementing means-testing decreased at all?

[3:00 p.m. - 3:05 p.m.]

[F. Donnelly in the chair.]

Hon. J. Osborne: Welcome to the chair, Chair.

The Chair: Thank you.

Hon. J. Osborne: The member has asked for some information around the provision of incentives or rebates, as they’re also called.

I just want to cite a few figures that come from the Zero-Emission Vehicle Update 2022, which is available online through the CleanBC website, on passenger vehicle re­bates. I won’t go into all of this detail. It does provide a bar chart breakdown of the difference between battery EVs and plug-in hybrid EVs, etc.

In 2018, it was as low as 6,257 incentives, climbing, in 2019, to 14,489, down, in 2020 — COVID had a big im­pact — to 8,615, back up, in 2021, to 18,534 and then down, in 2022, to 9,693. There was a blip in there because of Tesla and the decisions they made around the pricing of their vehicles that made them ineligible for incentives. Then they changed the pricing, and it was eligible again. It’s a little tricky to read into the data sometimes.

It was in August 2022 that we made a significant change. The incentives do not come from taxpayer money anymore. They are actually provided through B.C. Hydro’s sale of low-carbon fuel standard credits. This is a big shift in terms of being able to provide incentives based on the sale of those credits.

Overall, I think the success that we’re seeing, in terms of the program design, is because we are…. We’re seeing the success. We’re seeing that incentives are going to those people who need them most, yet we’re still seeing really strong growth in the ZEV market.

R. Merrifield: I wasn’t totally clear on the minister’s answer there.

I recognize the change in funding. Great. That’s superb. I’m actually asking about the number…. After the means-testing was done, did the number of rebates go down?

Hon. J. Osborne: We’ll have to get the specific numbers to the member after today, if she’s all right with that. I can say that it is trending higher, but I can’t give her specific numbers right now.

R. Merrifield: Okay, thanks. That would be great. We will get those two different pieces of information after the fact.

Obviously, there’s going to be an S-curve adaptation. Those that have the most means are going to be able to adapt the most quickly and take advantage of rebates, obviously.

I like means-testing. I appreciate that that was done. My concern is that EVs still remain fairly out of the price range of most individuals.

The minister has already indicated that this acceleration of the time frame is going to make us healthier and make living less expensive. Obviously, I don’t believe that. I don’t believe that this is going to, actually, make it less expensive.

I believe that the social pressures, as well as the social conscience that most individuals have, see people moving to electric vehicles or ZEVs. This acceleration is going to artificially put pressure where…. I would query. Do we even need the pressure?

On the healthier side, I’m going to go on to a different line of questioning. As government pushes the adoption of more electric vehicles on to British Columbians…. How does the province account for the carbon footprint of each electric vehicle and where it’s produced?

[3:10 p.m.]

Hon. J. Osborne: Thanks for the question. I think it’s a good question, because I think there’s a lot of different information floating out there.

It’s important to look to properly conducted environmental life-cycle assessments of these vehicles and understand what the lifetime emissions are.

I want to speak to three particular studies. First of all, a recent environmental life-cycle assessment that was commissioned by the Fraser Basin Council here in British Columbia factors in the emissions that are associated with the vehicle manufacturing and not just the operation of the vehicle. It concluded that an EV charged in British Columbia breaks even — or pays off its environmental burden, if you will — within 30,000 kilometres of driving and that any distance driven, then, beyond 30,000 kilometres would be a carbon negative.

There’s a study from the International Council on Clean Transportation that found that the life-cycle emissions of a new battery-electric vehicle are lower than a comparable gas car by around 60 to 69 percent in the U.S. and Europe and 37 to 45 percent in China. Now, that depends largely on the emissions intensity of the electricity that’s being used to charge the vehicle. If you have dirtier electricity, if you will, then you’re not going to have the same savings in terms of emissions. But still, the point is that they’re lower than a comparable gas car.

Then a study from Ford Motors and the University of Michigan, finding that most passenger electric vehicles have approximately 64 percent lower life-cycle emissions than gas vehicles, on average, across the U.S.

I think it’s also important to note that there is a significant push to continue to reduce emissions associated with the manufacturing of EVs. We’re seeing that in a number of different automakers, like Tesla and Ford and General Motors, who are investing in battery materials recycling. They’re already preferentially buying materials from mines and manufacturers that have low-carbon footprints. So I think we can expect to see that life-cycle intensity come down.

R. Merrifield: Is the life cycle then…? Because we don’t produce any electric vehicles here in B.C., is the life cycle somewhat shifted? Are we downloading some of our emissions to other jurisdictions and just keeping the electric vehicle–positive aspect — i.e., we burn very clean electricity for British Columbia — and artificially lowering our emissions?

Hon. J. Osborne: No, that’s not my understanding, how the member described that. The life-cycle assessment takes into account the emissions created through manufacturing, no matter where the car parts or the car itself was manufactured. It is truly the life cycle, regardless of where it was built in the world.

R. Merrifield: I think the minister might have misunderstood me.

In the Roadmap to 2030, emissions are only counted in the area of production, not the area of consumption, by global standards.

I understand the life cycle of a vehicle. If we were to do all of the mining and all of the manufacturing and run the car for 30,000 kilometres, then we would have the full picture. Because by what the minister just said, we actually, for the first 30,000 kilometres of any vehicle, would see an actual increase on our emissions. But we don’t have to count the emissions created in the creation of the vehicle.

[3:15 p.m.]

So we are artificially downloading the emissions of the creation onto the jurisdictions in which they are produced, while we are trying to lower our emissions by the Road­map 2030 with a purchase of the electric vehicle and then running it on clean electricity, which lowers our overall emissions, while letting another jurisdiction deal with the emissions created by the actual vehicle. Is that clearer?

Hon. J. Osborne: Let me give this another shot.

I think we’re clear. The life-cycle assessment shows that of a ZEV car or an ICE car, the ZEV car is the better choice regardless of where the car is manufactured. The life-cycle emissions from the car anywhere in the world — it’s a better choice.

CleanBC, of course, is about emissions here in British Columbia. A ZEV car or an ICE car manufactured elsewhere, those jurisdictions will have to account for the emissions and the manufacturing of that car. We don’t build cars here in B.C. The cars come to B.C., and we drive them. What’s happening in a ZEV, of course, is we’re avoiding the use of gasoline. We’re avoiding the emissions that would be associated with that. That’s counted here in British Columbia because we’ve avoided that.

That really means that we’re better off on a global basis, because we’re avoiding those emissions. That really is our contribution, not only to reducing emissions here in British Columbia but also around the world.

R. Merrifield: Thank you, Minister, for the answer.

However, if we had to actually count the production of the ZEV in our overall emissions, the 8.6 megatonnes of CO2e would arguably not reduce to the same extent as what we get to do based on how global emissions are calculated, in that we don’t have to account for the production of the vehicle. We only have to account for the gas or the electricity that gets burned, which is why China’s emissions are only 30 percent less. They, obviously, have coal-burned electricity.

To speak a little bit more to this, I’m going to turn it over to my colleague from Kootenay East.

[3:20 p.m.]

T. Shypitka: Thank you to the member for Kelowna-Mission for letting me slip in here for a second.

We’re talking about carbon intensities and, I guess, the crossover on where ZEVs are in relation to ICE vehicles.

Volvo did a report on just that, and they found that there was a crossover. There are a lot of variables, but anywhere from 60K to 100K on the travelling distance of a ZEV would be where the net gain would be as far as carbon emissions would go, meaning that to make this ZEV vehicle, it includes a lot of mining. There’s actually a shortage of lithium right now in the world. And lithium is a main component for ZEV vehicles, electric vehicles, and also with hydrogen cell vehicles as well.

Lithium production is a fairly intensive process. I’m not sure if the minister knows how lithium is produced, but essentially, it’s a brine that comes from underground that’s pumped up and put into pools. These are evaporation-type pools, and they’re mixed with a sodium and lime mixture. Through a process of evaporation over a couple of years, 18 months to 24 months, to be exact, the lithium starts to form into a….

They can make it into a powder. They dry the brine as it evaporates. It turns into a gray powder. Then they put it into these one-tonne sacks, and then from there they put it into another mixture of lime and sodium. That involves another mining process, because limestone is the derivative of the lime product that’s put into the lithium powder. And then it’s produced there into the metal that we know as lithium.

You can find lithium in hard forms, generally speaking, in Chile, where they produce, I think, the most lithium, and parts of Africa, but it also incorporates bad labour practices, not good human rights standards in some of those countries when they do some of this mining.

I think this is what the member for Kelowna-Mission was getting at. Right now, in fear of a lithium shortage in the world…. Some experts say that we’re going to have a real problem by 2025. That’s not too far from now, and we’re amping up some of these targets. Has the minister considered some of those emissions that will be brought on by ramping up programs such as the one proposed right now?

[3:25 p.m.]

Hon. J. Osborne: Thank you to the member for the question and the lithium lesson.

I appreciate that mining is needed for materials in batteries and in all kinds of car components, whether they are ZEVs or ICE cars. I think the member is asking some good questions about the consideration of the different practices and technologies that are used to get these minerals and metals that are needed to construct these cars.

I think it’s important to talk about the importance of battery recycling and the research and development that’s going into technologies to improve and change batteries, for example. I would point out that the International Council on Clean Transportation is estimating that battery recycling can actually reduce the need for new mining by 20 percent by 2040 and 40 percent by 2050 globally.

Again, the fact that battery technologies are changing…. They are changing towards ones that are less mineral-intensive. They rely on cheaper or more readily available raw materials, things like solid state batteries and iron phosphate batteries.

A company in China, for example, BYD, is the second-largest EV manufacturer and also supplies other carmakers with their battery technologies. They’ve recently announced changes to produce batteries without items like cobalt or nickel or manganese.

Here in British Columbia, of course, we’re very fortunate. We have a company, Retriev Technologies, that’s based in Trail. They’re really a leader in this space for lithium battery recycling specifically. They really are a pioneer in end-of-life battery management.

Again, important concerns. I think these always have to be taken into account in the choices that we make overall. Looking at these things, looking at life-cycle emissions and looking at the reduction in the use of fossil fuels all contributes towards meeting our climate action targets. That’s what we want to be able to do.

T. Shypitka: Thank you to the minister for the answer.

I did mention the Volvo report. I’m not sure if the minister has read that. It shows EVs having a crossover point probably somewhere between 60,000 and 100,000 Ks of operation. Any time you run a ZEV after 60K, it becomes better overall for the environment, as far as greenhouse gas emissions are concerned.

I understand technologies are ramping up. The minister mentioned a couple of strategies on recycling battery technologies that are coming out. Some of these targets are to reduce mining by 20 percent. I think she said by 2040 and 2050. We’re talking about targets now of 2030.

This is, essentially, the whole essence of the bill. Are we putting the cart in front of the horse? We want to do the responsible thing. I don’t think anybody in this room disagrees with that. But sometimes when you force the issue too hard, it becomes…. Unintended consequences can come from that. We’ve heard from many….

The minister mentioned that there was a fairly active engagement and consultation process that went on. I would like to know specifically what First Nations. I’d specifically like to know what industries.

We’ve heard already from the member for Kelowna-Mission, who highlighted Honda Canada, with their concerns, and BCBC, with their concerns.

The minister said that some groups — let me see where the quote was — weren’t being aggressive fast enough. I’d like to know the name of that group and what research they did on it.

I guess the main question here is: what does the B.C. government know that the Canadian government doesn’t know? The minister mentioned the government of Can­ada, with their ZEV targets. They are reasonable. They did very extensive consultation.

[3:30 p.m.]

They had targets set for 20 percent by 2026, 60 percent by 2030 and 100 percent by 2035, which is a little bit more in line with exactly what industry is telling us, exactly what BCBC is telling us.

What does the government of B.C. know that the Canadian government doesn’t?

[3:35 p.m.]

Hon. J. Osborne: With respect to the member’s question about First Nations engagement, I can tell him we distributed the information around engagement to approximately 1,200 contacts, through the CleanBC process. There were over 100 First Nation attendees at the webinar. I cannot tell the member today exactly which nations they all came from.

The member also had questions about federal targets. It’s important to understand that, of course, the Canadian targets apply across the country. They average out the entire country, if you will, but they depend on the different targets within provinces which have them. The federal targets embed the B.C. and Quebec’s targets, and they assume we will be meeting ours. Our officials have worked very closely together on this. It’s not done in isolation of each other.

Again, I think it’s important to point out that we are ahead of the curve here in B.C. We’re four years ahead of where we should be with the current targets that we have. We have such strong market growth here. We want to continue to satisfy that market growth and to be able to supply ZEVs to those people who want to purchase them.

Having targets that send those signals to suppliers, and having the framework that the legislation establishes, are how we’re doing it. We know that British Columbia — and Quebec obviously, too, with their strong targets — will be getting the supply that is out there, to satisfy the incredible growth that we’re seeing here in British Columbia.

T. Shypitka: I’ll ask one more question. Then I’ll turn it over to the member for Kelowna-Mission.

I was interested in hearing the minister’s response. I couldn’t really understand what she was talking about, that our targets are embedded into the federal plan. I’m not too sure if I heard that right. I’m not even sure what that means.

From what I understand, with this legislation we are upping the ante. The minister says that we’re ahead of the curve. That’s great, and I’m happy for it, but we didn’t need legislation to do that if we’re ahead of the curve. The market does take care of itself. People do find their way to the common ground. We don’t need legislation that may upset that balance.

We’re trying to come with a reasonable solution here. Our party has heard, from many that are affected by this legislation, that this could do that. It could upset the balance of what the market can provide to what legislation dictates. We’re trying to find that middle ground.

I think the Canadian government, as I said before is, has done extensive work. I would argue it was more laborious and involved than what the B.C. government did, but maybe the minister can challenge me on that. I know the emission reduction plan the Canadian government put out had consultation with industry, such as B.C. is doing.

It just seems that there are two different levels of the bar here. We’re trying to figure out why, and why B.C. has to jump to the front, getting ahead of the curve too much, perhaps.

The minister said there was First Nations consultation, that 1,200 contacts were sent out and that 100 attendees made the consultation. I’m not too sure what 100 attendees means, as far as how many governments were represented. Maybe the minister could explain the break of those 100 attendees that were part of this consultation paper. How many First Nations governments would those 100 attendees include?

Hon. J. Osborne: There were a number of areas there in the member’s statement, and then the question.

To the question, I did explain in my last answer that there were over 100 attendees at the webinar, but I do not have the names of the First Nations at my fingertips. I cannot answer his question on that.

I want to return to the embedding in Canada’s targets. Canada, comprising ten provinces and three territories, is going to look at Canadians living in all those jurisdictions and at the adoption of zero-emission vehicles.

[3:40 p.m.]

Their targets are going to be based on all those people, but they’re necessarily going to be, effectively, built up of how much ZEV purchasing is going on in each of those ten provinces and three territories, so embedding in the targets means as just a part of the national average, if you will. Again, because Quebec and British Columbia have the most aggressive sales targets, we necessarily kind of take up the lion’s share, if you will, of those targets across Canada.

We are responding to the market demand. I mean, the member is right. There’s a strong market demand for ZEVs. I would perhaps disagree with him and say that it is in part because we have the Zero-Emission Vehicles Act that was brought in in 2019 and established the framework, set the targets, sent the signals to the suppliers about bringing those cars into British Columbia. We knew that people wanted to do that.

Again, as I’ve said a couple of times before, this is part of the CleanBC plan. It is part of our plan to reduce emissions overall in British Columbia and an important part of the mode shift and the changes that are going on in the transportation sector overall.

R. Merrifield: It’s interesting. The minister talks about how these targets will actually give us more share of the ZEVs. In the different car companies that reached out and contacted us, not one disagrees with the Canadian guide­lines. They make reference to the fact that being out of step with the rest of Canada actually disadvantages B.C. and will do things like result in higher prices for British Columbians. If you can’t meet the targets, you have to buy those credits from other companies.

I can imagine that Tesla was probably one of the big cheerleaders on this particular bill, simply because it will probably net result them billions of dollars in the sale of their particular credits.

The minister talked about the different evolution of technologies, and I would agree wholeheartedly. I think we’re starting to see a real acceleration of technologies in the renewables and in ZEVs.

That, actually, is the argument to wait. In business, early adapters will take the greatest risks and greatest costs to get there, whereas those that actually keep pace with the evolution of technology had the greatest efficiency and the greatest cost savings, because the technology had already been created. The minister is actually proving our case for us, as it were, in that acceleration of these time frames is detrimental in how this will affect British Columbians.

My next question is actually on the impact of lithium production — not just on the environment, which I believe my colleague has canvassed already, but also on human rights. We in B.C. don’t just want to be environmentally sustainable but also socially sustainable. My question to the minister is: how does the government account for the impact on human rights of lithium production around the world?

[3:45 p.m.]

Hon. J. Osborne: Thank you to the member for the question. Of course, it’s a serious one.

I think it’s fair to say that British Columbians are deeply concerned about the source of many materials in our lives and where they come from and understanding that responsible practices, both socially responsible as well as environmentally responsible, are used in the production of those materials.

With respect to lithium or respect to battery technologies and the materials used in batteries overall, this is very much a conversation that’s happening at the international level, of course. The International Zero-Emission Vehicle Alliance, for example, is one place that is doing that.

I read before around some of the automakers that are making decisions to change the way they build cars and build batteries. For example, Tesla has announced that they’ll be moving away from batteries that contain cobalt, in part because of concerns around the practices of mining cobalt.

This is the kind of socially responsible behaviour we want to see and we want to see more of here in British Columbia, as well, which again is why battery recycling is so important. Knowing that we have a lithium-recycling, battery-recycling operation in Trail is important, so we can provide British Columbians with the confidence in where these materials are coming to.

I hope that, in part, answers the member’s questions, and I thank her for it.

R. Merrifield: Thank you, Minister, for the answer there.

Let me go back to the role of the advisory council, be­cause I don’t have a scope of what they actually look over. Will the advisory council be meeting regularly? Will they be reporting? And will they be reporting out not just on the economic effect, the environmental effect, but also on the social issues that we’ve just canvassed?

[3:50 p.m.]

Hon. J. Osborne: The key role of the zero-emission advisory council is really to take stock of the market and to look at barriers and opportunities to provide advice to government and other folks in industry that are at the table. They’re providing intelligence. They’re providing input on where the market is at, for example.

The ZEV advisory council has not, to date, taken a deep dive into social issues, for example. That doesn’t mean to say that they could not.

With respect to emissions and reporting out on that…. Of course, emissions in the transportation sector are tracked, and they’re reported through the climate change accountability report, which is produced by government.

Another statutory obligation of government is to produce a ZEV market update annually. That provides information on jobs, car sales, market trends, program participation rates and things like that.

P. Milobar: Just a quick question for the minister.

When I was reading through the bill…. Perhaps you can point me to it. These are some of the overarching questions we’re at right now.

[3:55 p.m.]

When the first bill came forward…. I seem to recall that B.C., with this legislation, would actually still enable and allow used-car sales and lease return sales of ICE vehicles. So we’re not actually preventing someone from going out and buying a truck or a car that burns fossil fuel. It just has to be used or a lease return. It could be brought in from Alberta or Saskatchewan or across from Washington state and get certified for Canadian use.

It seems to me that hasn’t been addressed with this bill. In fact, ICE vehicles will still be readily available in B.C. So the theory around trying to have people not drive an ICE vehicle won’t actually be addressed with this. We just don’t want them…. The government is saying they don’t want people to be able to drive a brand-new ICE vehicle. They have to buy a lease return or a used vehicle.

Can the minister point to where that has been addressed in this bill? Or is it still the case that, in fact, ICE vehicles of all ages will still be available for sale on car lots? They just won’t have been able to have originated as a brand-new sale in B.C. It will all have to be used vehicles that are for sale in B.C.

[4:00 p.m.]

The Chair: Member for Kootenay East, I do see your hand is up. We’ll recognize you once the minister has had a chance to respond.

Hon. J. Osborne: With respect to the member’s question, really the only changes in these amendments are the targets themselves. It’s not changing lease returns or used vehicles.

It’s focused on new ZEV supply and setting the targets for that — attracting new ZEV supply to British Columbia. That’s the way that ZEV mandates are constructed around North America, for example.

Over time, new ICE cars are displaced, and over time, used ZEVs also make their way into the marketplace, which will help to lower the cost for some people to get into a ZEV. It’s this way, this time, where that market transformation is achieved.

T. Shypitka: I don’t have the luxury of seeing my colleagues. I don’t know if my colleague from Kamloops North wants to follow up with that or not.

The Chair: He is okay. He is ceding the floor to you.

T. Shypitka: Okay, great. Well, thanks a lot.

The minister just said something interesting on what she responded to the member from Kamloops North in that, with the introduction of used ZEVs coming online soon, it may make it more affordable for some people — I think the quote was “some people to get into.” Can she tell me what people she would refer to?

Hon. J. Osborne: British Columbians who wish to buy a zero-emission vehicle.

The Chair: Member for Kootenay East, do you have a follow-up? Go ahead.

T. Shypitka: Okay. Was there any reference, perhaps, to those that can’t afford one? I’d imagine that’s what she’s probably getting at. I’ll ask her again then.

Was the comment more in reference to those that can’t afford a new vehicle?

Hon. J. Osborne: Yes. I think it’s fair to say, and I think we all understand, there are some British Columbians who cannot, today, afford the price of a brand-new zero-emission vehicle even with the incentive.

Part of the market transformation that we’re trying to achieve is attracting new ZEVs. We know that in time, the cost of a ZEV is going to come down. Our government is providing incentives for people to bring down that upfront cost.

I have gone into some detail today about the life-cycle assessment of zero-emission vehicles and how they produce less emissions over the lifetime. The same is true for their cost — that over the lifetime of the vehicle, taking into account the cost of operating and maintenance, including the capital outlay of a new car, it is cheaper. But over time, as we see more used ZEVs come into the market, that will open up opportunities for people who today — in 2023, for example — cannot currently afford the cost of a new vehicle.

I think we’ve seen a…. There’s a range of different makes and models of zero-emission cars out there, just as there is with internal combustion engine cars. We see that response from British Columbians, that some people are looking for different features in a car.

Increasingly, we’re seeing, with those record rates of adoption in ZEVs in British Columbia, that people are looking to make that switch. We’re going to continue to do everything that we can to help make it easier for people to do that. These amendments to the Zero-Emission Vehicles Act are a part of that.

The Chair: Member for Kootenay East, your hand is still up. I’m assuming you have a follow-up.

T. Shypitka: You bet, Chair. Thanks a lot.

I’m going to go off to something I asked earlier, on consultation with First Nations.

The minister said there were 1,200 contacts but only 100 online. I’m just wondering what kind of consultation that included. Was it just a basic online forum for people to address their concerns with this proposed bill? Can the minister tell me: was there any…? Was the draft of this bill sent to all First Nations in the province of British Columbia first?

[4:05 p.m.]

Hon. J. Osborne: I’m going to just describe again the First Nations engagement to make sure that I’m being perfectly clear. The engagement that was undertaken was part of the CleanBC engagement.

I did refer to a webinar, and I did refer to 100 people, but I want to be clear that the webinar itself probably had about 70 people attending. There was a physical engagement, as well, that had about 40 people, in fact, attending. So that’s the 100 there.

The draft of the bill was not distributed to every First Nation in British Columbia. The intentions paper was shared with the First Nations Energy and Mining Council. We did not receive any specific feedback from them on it.

As part of this engagement, though, with Indigenous nations and Indigenous people, one of the things we heard was their strong support and encouragement to keep the plug-in hybrid electric vehicle as an option in the regulation — as it currently is, and it will remain — because of the concerns for nations, particularly living in more rural and remote communities. I think that’s a concern that’s shared across parts of rural British Columbia, certainly.

So the plug-in hybrid electric vehicle remains eligible as a zero-emission vehicle under the regulation.

T. Shypitka: I’m a little…. Obviously, my fellow colleague from Vancouver-Langara would be interested in hearing this. I’m just kind of acting on his behalf, to some degree, and all British Columbians, I would think.

[4:10 p.m.]

Under DRIPA, there is a duty to consult, for sure. When I see 70 on a webinar, 30 physical…. The draft of the bill wasn’t circulated to any First Nation, although the intentions paper was.

Can the minister give me a list of the First Nations consulted and the dates that those consultations happened?

Hon. J. Osborne: No. I’m not able to provide that information to the member today, but I will go back with my staff and provide all of the information that we can on the First Nations engagement. Thanks for the question.

T. Shypitka: Okay. The minister also noted on PEVs some First Nations were concerned on that end of it to keep that going.

Can she give me the list of those First Nations and when those consultations happened?

Hon. J. Osborne: That was feedback that was provided as part of the webinar and the in-person engagement. So no, I don’t have a detailed record of which individuals or which First Nations said that. But I am describing generally the feedback that we did receive.

R. Merrifield: The minister, in her second reading comments, said: “These amendments will increase the supply of zero-emission cars and light trucks to British Columbia, reducing waiting times for British Columbians to get into ZEVs and encouraging automakers to make ZEVs more affordable and accessible for British Columbians.”

Could the minister just tell us specifically how ZEVs will become cheaper for British Columbians?

[4:15 p.m.]

Hon. J. Osborne: The ZEV mandates send signals to automakers that British Columbia is moving this way, moving towards zero-emission vehicles. In response to global mandates — obviously, not just British Columbia but Quebec, California, Europe, other places — they respond through production and manufacturing to be able to provide price points that respond to that consumer demand. Really, this is a global trend we are seeing towards price parity with internal combustion engines.

The ZEV standards here in British Columbia — what they do is ensure that those vehicles are available to British Columbians. Today there are 40 different EV models that are available in B.C. that are below the average price of a passenger vehicle.

I think Tesla is a good example of an auto manufacturer that has produced more of their lower-end vehicles because they’re responding to consumer demand. In fact, they’ve even dropped prices over the last year. Chevy has announced that they are coming out with a new version of the Bolt, for example — again, responding to that consumer demand and bringing price points down.

Taken all together, this is what is driving the lower costs that will be available as production increases, supply increases. And we want to make sure that those are available here in British Columbia for us to be able to take advantage of.

T. Shypitka: I feel like there’s a game of ping-pong going on here. Apologies to the minister because we go from one brain to another.

I just wanted to follow up one last time on the First Nation piece. I’m not getting a good sense of true consultation here. But maybe the minister can help me out a little bit and tell me what articles of UNDRIP they were focused on when drafting this bill to ensure there was alignment with UNDRIP.

[4:20 p.m.]

Hon. J. Osborne: Thank you to the member for the question. In terms of obligations arising from DRIPA or UNDRIP, the proposed regulatory amendments did not explicitly trigger obligations under section 3 of the act. But as a matter of best practice, we engaged on this as a matter of policy. I have described already the avenues we used to undertake that engagement, so I’ll just leave that at that.

R. Merrifield: I’m going to go back to the question that I just asked, and then the minister answered. The minister said that by putting this legislation and accelerating the timelines, it’s going to send signals to the car manufacturers and then proceeded to give two examples of car manufacturers who were introducing new models.

I’m sure that the minister has read the news over the course of the last two or three months in which Honda, GM, Ford and Toyota all announced that they were slowing down in their production and that they were pulling back globally, however, but still slowing back. Even Tesla, their shares plummeted 9 percent over the last Q3 earnings in which they missed both their top line and their bottom line. And Musk is actually quoted as saying that they’re trying desperately to make their product more affordable, which seems to indicate that this is actually an expensive time to buy an EV.

At a time when people and British Columbians are having a difficult time making ends meet, whether they pay for food or rent or to get their kids to soccer, this seems like an unusually strange time to accelerate a timeline. While I won’t go into the economics of this, I do think that….

The minister referred earlier to a question saying that we’re taking a greater percentage from other provinces. Well, we all breathe the same air, so just taking from other provinces so that we meet our targets doesn’t really…. I mean, while we can pat ourselves on the back, it doesn’t really do anything to change global emissions. We have to give the car manufacturers time.

With that, I would just ask the minister…. While she did acknowledge how we were going to get more ZEVs, which I disagree with…. I think that car manufacturers are slowing down. I think that even Honda has stated that they’re going to have to be buying credits from Tesla, which will increase the cost of Honda vehicles.

Could the minister tell us specifically how ZEVs will become cheaper for British Columbians with this legislation? Not with technology, because obviously technology is great. This legislation accelerates the demand for ZEVs. How will this actually accelerate and make it more affordable?

[4:25 p.m.]

Hon. J. Osborne: Thank you to the member for the question again.

I did go through an explanation about how the mandates work in terms of showing those strong market signals that automakers need to see that they can respond to and ensuring that B.C. has a secure supply of ZEVs coming here so that we can satisfy the demand that we’re seeing. And the member is asking: how does that specifically drive prices down?

I think it’s important to point out…. I know she used a couple of examples of automakers who have stated they’re going to be slowing down production. We know automaker production plans fluctuate. We also know overall the trend remains that automakers are moving towards ZEVs. That’s why the legislation is crafted in a way that creates a lot of flexibility and compliance pathways for automakers to be able to realize this here in British Columbia.

The amendments ramping up to the 2035 requirement, that takes place over a ten-year period. The high ZEV sales that we have already seen here in B.C. — we are four years ahead of where we would be otherwise — have resulted in banked credits, for example, which are going to be able to help smooth things out for some of those automakers.

But also our program staff have spoken directly to Tesla, and they have assured us that vehicle production continues to ramp up and it’s on pace, that the plans they have for additional vehicle models remain and that they will have strong deliveries in B.C. this year and, going forward, they’re very committed to serving British Columbia with as many ZEVs as possible because of the incredible demand for electric vehicles here in B.C.

[4:30 p.m.]

I think the point is that there is that ebb and flow. It’s important not to focus just on one quarter or half-year of what’s taking place out in the market but that we have the flexibility, designed through the legislation and expressly through the regulation, to enable that.

By sending those signals, by increasing the supply and by meeting this global trend that we’re seeing towards ZEVs, British Columbians have increased access to different models and makes of zero-emission vehicles. Over time, the displacement occurs, and people are able to access them at the price points that they can afford.

Of course, in the meantime, as this transformation is taking place, we’re going to continue to support people and, particularly, as the member has already commented on, the lower- and moderate-income families, to have those income-tested rebates available for people to help make the switch.

R. Merrifield: Thank you, Minister, for the answer to the question.

B.C. has 10 percent of all car sales in Canada, never mind North America. We are such a small amount that I think it’s rather presumptuous that car manufacturers, on a global scale — especially since we have no manufacturing facilities here in B.C. — are actually going to be swayed by these types of legislation.

I think we’re all in agreement on the federal legislation, the federal targets. I don’t think there has been push-back against those. It’s this unnecessary acceleration that really puts B.C. way in front of where the manufacturers are, of where the global targets are, of where Canada is as a whole. This is where I have grave concern.

I’ll give the minister yet another example. Right now, if you were living in Prince George or Kelowna, you would have to drive to Vancouver to buy a Tesla. You would have to drive to the Lower Mainland to get one of the vehicles that we’re talking about here. How fast do you get a Tesla dealership in all these different places?

It doesn’t make sense, from an economics perspective, to say that this infrastructure is going to make cars less expensive by being an outlier and a leader in this area.

I’ll go on to a different topic: the power requirements. How will the power requirements be facilitated to supply electricity for these EVs?

[4:35 p.m.]

Hon. J. Osborne: Thanks for the question around how we’re planning for the power that’ll be required. I can tell the member that B.C. Hydro has been planning for this increased rate of adoption of electric vehicles for years and will be able to meet the demand.

Large utilities like B.C. Hydro are required, of course, to engage in planning processes at regular intervals. That’s to ensure that they have sufficient electrical energy to provide for all of the needs that British Columbians have and that they’re able to meet the forecast demand.

In their IRP update, B.C. Hydro forecasted the potential growth in electricity demand to support our CleanBC targets and. specifically, the targets that we have for zero-emission vehicles as well. That will include the growth that is to come.

In addition, the IRP update proposes a mix of some near-term actions and potential resources to allow better load distribution and better accommodation of the de­mand. This includes actions like shifting EV charging outside of system peak periods.

There’s a voluntary time-of-use rate application before the B.C. Utilities Commission right now, for example. If an EV owner used this, they would save money by charging their vehicle at night. This is just one of the ways that B.C. Hydro is planning to accommodate this EV growth.

The point is that they’ve been planning for it for years, and they’ve got that taken into account and well in hand.

R. Merrifield: In the new IPP call for power that’s out right now, is that part of the plan that is not just specific to ZEVs but to the whole net-zero plan and electrification plans of the province?

Hon. J. Osborne: Yes, in essence, that’s true. In the IRP update, B.C. Hydro has provided a reference case that looks at, again, the CleanBC targets and the accelerated actions that British Columbians are taking in switching their home heating or switching their cars, for example, as well as the interest that industry has in lowering their emissions by electrifying facilities like mines.

All put together, we’re looking towards 2028, towards the end of the decade, when an additional 3,000 megawatts of power will be required. Working towards this spring 2024 call for power will help to meet that demand. I’m excited to see how that moves forward.

R. Merrifield: For these power projects, what is the completion date?

Hon. J. Osborne: Sorry, Chair. Could the member just say exactly what she is referring to?

R. Merrifield: On the IPP call for power that has gone out and will be coming in this spring, what is the completion date required for those projects?

Hon. J. Osborne: Right now, B.C. Hydro is focused on the engagement with industry and with First Nations in designing the call for power. They’ll be looking at a range of actions that they’ll need to take, everything from Indigenous ownership and participation in these projects to setting a minimum size, for example.

I can’t give the member specifics on exactly when each power project would need to be finished. We don’t know the details of which projects are going to come forward, but generally speaking, I can say what B.C. Hydro is doing is looking to acquire about 3,000 megawatts of clean electricity by the end of the decade, 2028 to 2030.

R. Merrifield: This bill actually accelerates the time frame of 100 percent ZEV sales. Why wouldn’t we get those two time frames to come together to make sure that we have enough power and that we haven’t put legislation in place that requires ZEVs without having the necessary infrastructure and electricity supplied?

[4:40 p.m.]

Hon. J. Osborne: Again, the way that the legislation is designed to ramp up the adoption of electric vehicles, understanding that’s going to call on more power that’s required, is part of the planning process and taken into account in B.C. Hydro’s planning processes. B.C. Hydro is looking at a mix of near-term actions, other potential resources to be able to supply that.

But I take the member’s point clearly. Power needs to be supplied in time for massive electrification across British Columbia, and certainly not just in electric vehicles, as I know the member understands.

I don’t think it’s about specifically matching up timelines for EV targets and for B.C. Hydro’s call for power. Overall, it is to say that moving forward in the decades to come, knowing that there will be power and that the proper planning is taking place so that we’ll be able to meet those needs of British Columbians with our clean electricity.

R. Merrifield: What is the cost of these additional pow­er projects, and how will this be compensated?

Hon. J. Osborne: I can’t give the member a specific an­swer to that because, of course, the call for power hasn’t happened yet, and we haven’t seen any bids come in. Again, we’re in the design phase right now of that call. It is an open, competitive call, so that price exploration will take place through the call.

It is important to note, I think, that the price of renewables like wind and solar is coming down. I know we’ll see that reflected in the responses that come to B.C. Hydro through the call for power.

R. Merrifield: Thank you, Minister.

Again, the minister is proving somewhat of the point. We don’t have the actual costs yet on these power projects that are required to meet the electrification goals. So an acceleration of these goals seems somewhat premature, in that we don’t know or understand what happens if these power projects are astronomically expensive.

We’ve already gone down this train of needing to have the electricity. What happens if we would have been better served by electrifying all of our homes instead of all of our cars? Especially the light duty, which isn’t the largest emitter, and heavy duty, but we’ll get into that later.

There are so many unknowns. As the minister aptly pointed out, the costs are coming down, but they’re not down yet. We don’t have the innovation and technology to actually deliver the most affordable electricity possible. We have seen escalations on costs of projects, i.e., Site C, where it ballooned over 2½ times what it was originally intended.

In these cases, why would we rush on one particular aspect that people literally demand and need in order to get around in their daily lives and really hamstrung them in terms of making their ends meet with more expensive vehicles, more expensive electricity, or ones we don’t even have an answer for yet because the technology isn’t there and the costs are not known? Why do we need to escalate further?

I’ll turn my questions over to the member for Kootenay East after that.

Hon. J. Osborne: Thank you, Member. I think we might be straying a little bit away from the intent of the bill here.

[4:45 p.m.]

Really, once again this is about B.C. Hydro and the planning processes, the projections and the load demand forecast that B.C. Hydro uses through their integrated resource planning process. It’s a complex and comprehensive process that’s designed to give us the information we need to best be able to match the acquisition of new clean electricity through things like the call for power coming in spring 2024 with what British Columbians need to use.

Once again, the member makes the point that people are making that switch to electric vehicles, and that will increase the demand on electricity. But we’re also seeing the demand coming from industry, which is why, for example, B.C. Hydro put out an expression-of-interest process recently to look at the northwest corner of British Columbia and what industry is saying that they need to electrify.

Businesses, people, industry are telling us over and over and over that they want to be part of the climate solutions. They want to electrify their operations. We’re seeing, for example, that Artemis Blackwater Mine will be the lowest-emissions gold mine in Canada, certainly, maybe in the world, because of the electrification of their processes at the mine site.

So understanding what that demand is, is really important to be able to properly plan moving forward in the future. It doesn’t, perhaps, give the member the specifics that she’s looking for, and perhaps it’s a topic we can canvass later in another venue about the specifics of how B.C. Hydro undertakes that work.

The Chair: We are straying a little from the bill. How­ever, that is the practice, to allow some leeway at the beginning of a bill. So I’ll just remind members if they can relate it to the bill, that would be most appreciated.

T. Shypitka: Thanks, Chair, for the guidance on where we’re heading with some of these questions. I think they are exactly legitimate questions because this bill, Bill 39 that’s in front of us, has a lot of ramifications, not only just to the consumer but also to the ratepayer. So that’s what the member for Kelowna-Mission was talking about, and that’s on the ratepayer portion of it, and the infrastructure that’s needed to support the ambitious goals that this bill is setting forward.

When the IRP came out in 2020, I believe it was, it showed a surplus of power. Amazingly enough, about four or five months ago that’s been reversed, and now there’s a call for power. But it’s also the placement of power and how we get power to where it needs to go.

It’s one thing to say we’ve got power. Through the standing offer program that was cancelled and then maybe this new call for power through IPPs, we will see some more power come to the grid that will support these ambitious goals. But those are unknowns. And as the member for Kelowna-Mission stated, that’s exactly the intent of this bill. There are a lot of unknowns with this bill.

So the placement of power. When we’re talking about remote communities, plug-in power…. Some of those First Nations that were giving their concerns in the northern part of Vancouver Island…. They need that infrastructure in place.

And let’s be honest. Let’s be frank here. Some of these projects that get put forward now take years if not decades to get put through. This doesn’t happen overnight.

We’ve got this intention coming forward in 2024 on the call for power. Then it goes out to tender. Then it gets placed. Then you have to set up energy purchasing agreements with IPPs. And this is coming from a government that chastised those IPPs, saying that the energy purchasing agreements were too lucrative. So to meet our goals, if we’re putting the cart in front of the horse with what Bill 39 puts out, we may be selling our soul with some of these EPAs just to reach our goals that’s legislated now.

It’s very much part of what this bill is all about. It’s the unintended consequences. I said that at the very beginning of this committee stage, the unintended consequences, and there is a ripple effect that goes through many things.

I’m thinking about the energy purchasing agreements, and that’s going to cause some hassles there too. I’m kind of wondering where I should go, because I don’t want to take it too much away from the context of the bill. I might leave it there.

[4:50 p.m.]

Does the minister understand that the call for power doesn’t just automatically light a switch and bring us the necessary power to the grid overnight? That’s why we’re saying we need to be more realistic on our targets that we set with this bill. Going to 90 percent by 2030, in my opinion and many others’…. The government of Canada has even said 60 percent would be more realistic. Industry said 60 percent. Consumer groups, such as BCBC, have said 60 percent. It’s almost unanimous.

But the minister seems to always bring out two jurisdictions in North America, Quebec and California, and forgets the other 95 percent of jurisdictions around North America.

Are we putting in the cart in front of the horse with infrastructure? How do we place the power for remote communities that need to be on the grid to support these targets?

I guess that would be the question. How is the infrastructure going to roll out to respond to remote communities?

[4:55 p.m.]

Hon. J. Osborne: The question was around support for remote communities in terms of infrastructure. I’m just going to keep it high level. The member can ask for more details if he likes.

Around both support in terms of electricity generation and enabling and helping remote communities — Indigenous communities particularly, for example, through the remote community energy strategy, which really supports Indigenous communities with energy planning, with energy efficiency, with renewable energy projects, capacity-building, all of that — there is $140 million that went to the New Relationship Trust, to the B.C. Indigenous clean energy initiative.

I’ve spoken about the B.C. Hydro call for power in 2024. But the purpose of these funds is to support Indigenous communities and smaller-scale electricity generation projects. It’s not, of course, just about generating electricity and having that infrastructure and those electrons available to remote communities. It’s about working with those communities and all British Columbians.

If we’re going to decarbonize, then we need to be able to look at energy efficiency, look at load management, look at those short-term actions and resources that I was speaking to with respect to B.C. Hydro’s planning.

In addition, if, on the infrastructure side…. We haven’t gone here yet, so maybe I’ll open it up around the infrastructure that’s required to support people to charge their vehicles. Of course, that’s an important part of owning and operating your electric vehicle.

B.C.’s electric highway is about 72 percent complete now. There is a commitment for this to be complete in 2024. The idea here is to enable people living in all parts of British Columbia to be able to drive their EVs on every highway and major road.

We’re working with utilities, with other levels of government. We’re working with industry to meet this roadmap goal of having 10,000 public charging stations across B.C. by 2030 but first completing the electric highway. To do that, we’re prioritizing the deployment of chargers into Indigenous communities and on those stretches of more remote and rural highways where charging stations are not currently available.

Hopefully, that describes a number of the supports tow­ards the infrastructure that we know is required in remote communities.

T. Shypitka: Just as a side note, the electric highway…. I believe it was the Highway 3 mayors that got the first part of that electric highway going in B.C. I could be wrong, but I believe it was the Highway 3 mayors — that runs through my riding — that got the initiative started a few years back. So just a little hats-off to them.

To put it in perspective, I think the minister mentioned something about capacity that B.C. Hydro is looking at now, 3,000 megawatts. That’s pretty substantial. When you think about a project like Site C, the capacity for Site C is just over 1,000 megawatts. The entire grid, I believe, that Hydro produces every year…. Their capacity is about 18,000 megawatts, so 3,000 megawatts represents about a 17 to 20 percent, somewhere around there, increase that B.C. Hydro now needs to produce. Like I said before, that doesn’t happen overnight. Site C — how long did that take to produce 1,100 megawatts?

When we talk about independent power producers, we are not talking about ma-and-pa run-of-river shops that are going to be plugging into the grid. We’re talking some fairly substantial power that’s going to be required to fill these. We haven’t even talked about hydrogen fuel cells yet, as far as ZEVs are concerned. To produce hydrogen and hydrogen cells is vastly energy intensive.

These are exactly the points I made to not only this minister but ministers before — that the capacity that we’re going to need to conform to these aspirational goals…. We’ve got to take…. I mean, we’re doing good. The minister said that. We’re leading the way. We’re ahead of the curve. I just don’t understand why we’re pushing it past the point of being sustainable for us here in B.C.

[5:00 p.m.]

Not to mention those new-car sales dealers that are going to have to deal with market leakage going to Alberta. I live right on the boundary of Alberta and B.C., and I can almost guarantee, dollars to doughnuts, that when some of these targets and some of the choice that the minister keeps talking about become more selective…. It’s not the brand of cars anymore; it’s the types of cars that you have to sell now. It’s probably going to leak to Alberta. I’m going to take a guess. I hope not.

With the goals…. With what the IRP is saying about 3,000 megawatts of capacity…. Can the minister give me a timeline on when we could get those 3,000 megawatts online?

Hon. J. Osborne: First of all, I think it’s fantastic that the member is so proud of the work that his constituents, his local governments and people in the Kootenays have done in building the electric highway. I agree fully with him. Hats off to them for the work they’ve done. They’ve been really visionary, and I think they’ve pushed other parts of British Columbia to be able to do the same.

[H. Yao in the chair.]

I think the member probably can understand. That sense of pride he feels in what his constituents have been able to achieve is something that British Columbians feel about our climate action plan and the accomplishments that we’ve had in seeing some of the highest record rates in the adoption of zero-emission vehicles here in B.C. We really want to be able to build off of that.

The member has asked a question about the timing, again, of the 3,000 megawatts. I’ll just provide the same answer that I did before, which is that B.C. Hydro, through its updated IRP, has forecast that the 3,000 megawatts of energy should come online by the end of this decade. The call for power, which will be issued in spring 2024…. It is looking towards that 2028, 2029, 2030 timeline for that power to come on.

R. Merrifield: What we are canvassing right now, be­tween my colleague and myself, is just, actually, the cost of vehicles and how they’ll go up with the acceleration of the timeline in this bill and the cost of the infrastructure that’s required. As the minister aptly pointed out, there’s a lot of electrification needs. It’s not just in the ZEVs. It’s also within industry. It’s also within our housing and other aspects of our living and our emissions.

I think it’s an interesting case study, which was done by Fortis, on the electrification needs of the city of Kelowna, just the actual square footprint of the city. It goes through and talks through the electrification needs all the way to 2050, 2040 and 2030.

The results of the Kelowna electrification case study showed that at 100 percent of electrification, at peak de­mand…. In 2040, it would more than triple, from 472 megawatts to 1,429 megawatts, resulting in a high-level estimate of between $2.6 billion and $3.4 billion in capital expenditures on the electric distribution and transmission system.

That’s just on 1,429 megawatts. If we’re looking at 3,000 megawatts and what would be required in terms of the capital costs…. We’re looking at an exorbitant amount of dollars spent. Obviously, dollars over time is a little bit easier for the taxpayer than dollars all at once, as it were.

If we use that as an example of what would be required in terms of infrastructure upgrades, etc.… Could the minister give a broad range of what the expectation is in terms of the infrastructure costs to accelerate the electrification of vehicles?

[5:05 p.m. - 5:10 p.m.]

The Chair: Recognizing the Minister of Energy, Mines and Low Carbon Innovation.

Hon. J. Osborne: Thank you, Chair. Welcome to the chair.

To the member’s question around costs….

First, actually, before I get into that, I want to correct myself. I think in our discussion about megawatts and about energy and capacity, we’re getting some things mixed up. Certainly, I did get mixed up in saying the call for power was 3,000 megawatts. What I should have said is gigawatt-hours. It’s a measure of energy. I want to be clear on that.

Back to costs. I’m going to start higher level, again, with B.C. Hydro’s IRP, their integrated resource plan, a planning process, really, to plan for the lowest cost resources to meet the forecasted demand. That contains a cost curve for different resource options. Of course, first focusing on demand-side measures like energy efficiency measures, energy efficiency — the cheapest energy we use is the energy we never use — and moving into supply-side options.

I’d just make the note, again, about the cost of that supply — like renewables, like solar and wind — and how those costs are coming down.

For the sixth year in a row, B.C. Hydro has capped their rates below the cumulative price of inflation. I think that’s important to point out. We need low-cost options to meet the increased demand that we’re going to be seeing. We know that British Columbians are looking for cost savings. We talk a lot about affordability in the House, of course, for very good reason.

In this move towards more zero-emission vehicles…. Of course, the avoided costs of maintenance and the avoided costs of gasoline are all things that contribute to a net benefit for British Columbians.

Just out of interest, the member might be interested to know that in Quebec, where there are…. There is a similar energy mix and cost of energy as British Columbia. They’ve looked at their zero-emission vehicle targets and estimated a net benefit, between 2025 and 2035, to the Québécois people of $7 billion.

The point being, taken all together…. This is a reduced cost for British Columbians and something we know is incredibly important.

R. Merrifield: That was a little bit of strange math there.

I would agree that the least expensive electricity is the electricity we don’t use, but we’re talking about accelerating the time frame and adding more electric vehicles. We’re not talking about the electricity that we don’t use. We’re talking about the electricity that we do use.

We are going to need more power. That has been established. It seems to be a surprise to B.C. Hydro, but it has been established that we are going to need more power, a considerable amount more power. Most of the experts agree on that.

The minister has just used a calculation based on the overall usage. Car and Driver actually put out a study back in 2022 that asserted that if you include…. If you added the cost of depreciation to both ICE and ZEVs, ZEVs are actually far more expensive than the price of an ICE vehicle. So I would disagree a little bit that you could just add back all of the saved oil and gas that you’d be paying for.

The other thing that I think we need to be very cautious of is…. As there is more demand for something that is in short supply like electricity, the cost goes up. Having lived in southern California, having lived in California for many, many years, I can tell you. The price of electricity is very expensive in California. When they have gone to accelerated time frames, they’ve experienced things like brownouts because they don’t have enough electricity yet for all of the electrification goals to lower those emissions.

I think it’s a little bit…. I mean, maybe just…. I won’t even say “naive.” But to say that we’re actually going to be saving money and that we’re going to have billions of dollars in savings, I think, is simply not correct information.

I’m going to move now into just talking about some of the rebates. I do see, in the interest of time…. I could spend so much time on all of this information, in terms of the electrification goals.

What data does the minister have that shows the percentage of ZEV owners across various income levels? Specifically, does the minister have data that shows the percentage of ZEV owners with a household income of $80,000 or less? Are there certain thresholds that have been monitored?

[5:15 p.m.]

Hon. J. Osborne: We don’t have the specific data that the member is seeking today at our fingertips, but we will get it to her.

Of course, we have the data since we began income testing for the incentives. But we’re going to have to follow up with her on the specifics.

R. Merrifield: Thank you, Minister.

Is it possible for the minister to provide the different aspects of the income testing and the rebates that were achieved at each of the different levels?

The minister indicated that she had the information based on the means testing that was done and the different rebates that were offered at different levels of income. Is that possible to actually get?

Hon. J. Osborne: If I understand correctly, I’ll just read this. The rebates that are based on income right now, of course, are based on a sliding scale. Individuals with incomes less than $80,000 can receive the full rebate amount up to $4,000. Individuals with incomes between $80,000 and $100,000 are eligible for rebates ranging from $500 to $2,000 depending on the income level and the vehicle type. I don’t have those income levels or vehicle types here with me.

Individuals, of course, who have an income of more than $100,000 are not eligible to receive the rebates.

We’ll get the data that we have, and we’ll be able to provide that to the member.

R. Merrifield: Thank you. That was exactly what I was asking for. Just the data that is available — if you could provide that for me, that would be great.

Does the minister have information on the inventory and what inventory will be available to British Columbians in the specific categories?

[5:20 p.m.]

Hon. J. Osborne: With respect to inventories, inventories are actually business confidential, so we don’t get or have that information. But because an annual report is produced with makes and models that are sold, that is available for anybody. It’s available publicly.

I’ll also note that we do have third-party forecasts for sales, and that’s for ICE and for ZEV sales, which a person can purchase. But the province has a data licence with that, so it’s not something that’s publicly available from the province.

R. Merrifield: Will the government continue to add a rebate or offer a rebate?

Hon. J. Osborne: The rebates or incentives are absolutely fundamental to achieving the market transformation that we seek in building market share and enabling compliance for automakers and suppliers. There are no plans at this time to change or eliminate the rebates.

I will add, again, although I said previously that the incentives are offered through B.C. Hydro sales of low-carbon fuel standard credits, these are not incentives that are being provided by taxpayer dollars, but instead through the sale of LCFS credits.

R. Merrifield: For this transformation…. I’m going to go through some numbers, and I’ll try and be as specific as I possibly can.

Currently there are 3.7 million vehicles that are regis­tered in B.C. We’re looking at 200,000 new ones, if I just go rough numbers. I mean, it kind of fluctuates a little bit — 194,000, 192,000, 203,000 — but let’s just call it 200,000 a year of new vehicles.

We’re looking to accelerate the timelines, so that we get 200,000 per year of 100 percent ZEVs. Really, if you look at 200,000 of 3.7 million to fully electrify the light-duty vehicle fleet, we’re looking at 18.5 years, if you go new vehicles, new vehicles.

[5:25 p.m.]

Now that’s a gross oversimplification that I recognize, because there are going to be used ones and for sale. But I am also assuming that we save all 100 percent of those ZEVs and don’t need anything new. So we’re looking at 18.5 years to get to that 100 percent goal.

The minister has just confirmed that there are no plans to eliminate the rebates. If we look at 200,000 ZEVs and if we assume that maybe 80 percent of them are not within the 1 percent of British Columbians who make more than $100,000, you’re looking, at on average, let’s call it $3,000 per vehicle on that, so by my estimations, at 200,000, it is about $600 million per year.

Is that what the minister is estimating it’s going to cost B.C. Hydro every single year to offer the rebates for 200,000 vehicles on an accelerated time frame for 18.5 years?

Hon. J. Osborne: As I said before, the rebates, the incentives, the income qualified incentives are fundamental to achieving this market transformation. We are seeing continued growth there. The percentage of total vehicles out on the road, of course, is very, very low right now. We’re working to change that, and this act is an important part of it.

As in any market transformation exercise, at some point price parity will be reached between ZEVs and ICE vehicles, and that’s the time to pull back or ask yourself if incentives are really required at that point. Typically, they are not. Fine-tuning a program over time…. Of course, this is going to be the purview of future governments. There’s an election or two between now and 2035, certainly.

With respect to the member’s math, I don’t think that’s accurate. Certainly, it’s not the intention to provide incentives through or past 2035. I won’t accept the math, perhaps. I will say again that there are no plans right now as we are in this market transformation exercise. We have not yet achieved price parity.

It’s very important for British Columbians who want to make the switch, who can do it, to have the support to do so. So we’re going to continue with the rebates for the foreseeable future.

[5:30 p.m.]

R. Merrifield: Well, I’m very glad to hear that the minister has acknowledged that ZEVs actually cost more, that that’s why there is a rebate in place, which is why we’ve been advocating to not accelerate those timelines until that parity is reached, until we can actually see that ZEVs are no longer more expensive.

I’ll also draw the minister’s attention to the fact that the NDP pretty much admitted that ZEVs are more expensive when they raised the luxury tax threshold from $55,000 to $75,000 on ZEVs. Obviously, they didn’t want to charge a luxury tax on an item…. They’re still charging it for ICE vehicles, but we won’t even talk about that. We won’t get into that.

Even if I take the minister’s rebuttal on the cost of this and only go to 2035, when we reach 100 percent…. Let’s hope that we hit parity at that point. With the acceleration of this timeline and with the continual offering of a rebate, are we saying that by 2035, we’ll have only reached one third of the vehicles that are on the road at that time?

I’ll use a third of my numbers and say that to address a third of the light-duty vehicles, of 8.6 megatonnes of emissions every year, we’re going to basically spend $720 million per megatonne in rebates.

This does not include infrastructure costs to actually get to those electrification goals. This does not include the cost of electricity and what that’s going to move to or get to. It does not include the actual cost of an electric vehicle or the differential on the cost of an electric vehicle, because they are more expensive than ICE vehicles.

With all due respect, I’m going to ask the minister again: how does the minister believe that this bill will actually result in less expensive vehicles for British Columbians?

Hon. J. Osborne: Chair, I’m actually going to implore you to maybe examine the relevance of this line of questioning and ask how it relates specifically to the legislation that’s before us.

I really do want to answer questions about the bill, and I just would appreciate some guidance for all of us.

The Chair: Thank you, Minister, for the reminder.

I do want to remind all members that we are on clause 1 on Bill 39, and we ask all members to keep the questions relevant to the bill, please. Thank you.

R. Merrifield: Absolutely. This is entirely relevant to this bill. We are talking about a bill that is accelerating the time frames of electric vehicles. My question is: why? Why would we accelerate the timeline of the vehicles?

This whole bill…. What it does is accelerate the timelines. The minister in her second reading, which I believe was really relevant to the bill, said that “it is going to make ZEVs more affordable and accessible for all British Columbians.” I’ve just canvassed, through the course of the data and information that’s available to us, exactly how many costs it will take to come up with these electrification goals in the bill.

Again, how does the minister believe that acceleration of the timelines in the bill will actually result in more, and I quote the minister again, “accessible and affordable ZEVs for all British Columbians”?

Hon. J. Osborne: Well, the member and I may disagree on the math.

I’ll just go back to an answer I provided before, around how ZEV mandates provide signals to automakers that B.C. is moving in the direction of zero-emission vehicles.

Why are we doing this? We’re doing this because we are committed to meeting our climate action targets. We’re committed to decarbonizing the province’s transportation sector, through ZEVs and through GHG emission standards, through purchase incentives, through investments in charging infrastructure.

Increasing the choice and access for British Columbians to these cars, while supporting the clean transportation industry with better coordination and infrastructure and in research and economic development and training, is an important goal for this government.

[5:35 p.m.]

Again, the ZEV mandate sends signals to automakers that B.C. is moving in this direction. It is a global trend. In response to those global mandates, manufacturers are responding through their production of these vehicles to be able to provide price points in response to consumers and what consumers are asking for. We have cited a few examples, I think, both the member and I, around different automakers and what they’re doing to respond to those price points.

We know that this is the way the global auto industry is moving, and we want to capture that and be a part of it to meet those climate action goals. We want to make sure that those cars are delivered here to British Columbia, so to do that we use ZEV mandates.

Again, there are over 40 vehicles that are available, different models that are available to people right now. The member is absolutely correct. I certainly would never deny that there’s not price parity yet. There’s a difference between the cost of a ZEV and an ICE car. And that’s why using the income-tested means to provide incentives for people is an important part of the market transformation that we’re trying to achieve.

Prices, given the fluctuation, and we have talked about fluctuation in the auto industry as well, are coming down, and parity is expected by the end of the decade. This is really important work that we’re doing. I’m really proud of the government’s record in setting up these standards and being proud that we are one of the leaders in North America. I don’t think that’s anything to be sorry for or to shy away from.

We know that British Columbians want to drive less-polluting vehicles. They are showing us with record rates of adoption that over one in five cars being purchased today are zero-emission vehicles. So that’s the response British Columbians are expecting of us.

We’ve planned for these targets. We’ve canvassed a number of subjects around meeting the electrical demand for that, meeting the infrastructure demand for that. I continue to be here to answer your questions on the bill.

R. Merrifield: Thank you to the minister for the answer to the question.

I think that that was maybe a more direct answer in that it’s based on emissions lowering, which we’ve also canvassed in terms of…. We’re downloading the production of the vehicle to someone else. They can count those targets and those emissions, and we’ll just benefit from the running of the vehicle, which is, I would argue, maybe not the best, but that’s neither here nor there. It’s an ideology, and it’s a purpose in terms of lowering emissions.

My curiosity comes around how much this is going to cost. How much is it going to cost a very burdened British Columbian? While I also laud all of those who have adapted and have gone out and bought electric vehicles, I would argue that the vast majority of those that I see on the street today are expensive vehicles and are probably owned by those that are wealthy enough to be able to afford them. When I think about the young professional starting out or some of the workers that I have on job sites or the single mom, they’re not able to afford those.

When I think about those that live in rural and remote communities, when I think about some of the different communities that I’ve travelled to around British Columbia, they’re powering their electric vehicle chargers and that infrastructure that we canvassed already and that we will continue to canvass throughout this bill with diesel. We don’t have it available to us yet.

This acceleration of time frame in this bill seems somewhat, I would say, premature. I don’t think that British Columbians right now, being the most expensive jurisdiction in all of Canada, can afford for us to be a leader in this particular way, all agreeing on the targets that were already set in the 2019 bill.

This acceleration is a further burden that does not help the cost of living and will actually burden us, my fear is, beyond the point of wanting those emissions lowered.

I’m going to turn it over to my colleague from Kootenay East, who has a question here.

[5:40 p.m.]

T. Shypitka: Thank you, once again, to the minister for answering these questions. They’re important ones. Cost is, obviously, an important question.

I will stick to what the minister wants to answer, and that’s on the income-tested means. I believe, with new ZEV sales…. The minister can confirm this. It’s a $4,000 rebate if you make under $80,000. It’s a $2,000 rebate between $80,000 and $90,000, and it’s a $1,000 rebate between $90,000 and $100,000.

Now, there are, obviously, some federal rebates they can apply for as well. But as far as British Columbia is concerned, and the minister, through her ministry, those are the rebates available for new car sales, I believe. Can she confirm that?

Hon. J. Osborne: Yes.

T. Shypitka: The minister gave a quick yes. That’s great.

It’s just on the individual, not the family. I’m concerned a little bit. My thinking is this. For the individual that wants to go buy a vehicle and makes $80,000 a year, they can get $4,000. But for the family, where one of the spouses or one of the caregivers stays at home…. The one spouse is out earning the dollars for the family of four. We know daycare comes at a premium these days and is not always there. The one spouse will look after the children, while the main financial provider is out there. He makes, maybe, $101,000. He doesn’t get any rebate.

Can the minister square that circle on how this is fair for families with one income earner? They may be at a disadvantage to a single person that has no dependents and makes considerably less.

[5:45 p.m.]

The Chair: Minister, before you answer your questions, I would like to remind the members that while it has been the practice to allow leeway on clause 1 to ask a broad range of questions, the member may want to consider if some of the questions may be better suited for later clauses.

I just want to put the reminder out there.

Hon. J. Osborne: Thank you, Chair. Thanks for the reminder there.

I think I see where the member for Kootenay East is going. I want to answer the question, maybe more generally, to say that designing any income-tested rebate program needs to be done carefully and needs to consider a number of factors in setting the income levels, for example, and the impacts on people and on families.

The member raises some interesting cases. It’s important to minimize the risk of somebody gaming the system, if you will, or unfairly receiving more rebate than they should.

The program has been in the market for one year now. So it is appropriate, of course, to review the program, and we’ll take an evidence-based approach to doing that, to being able to examine and modify the program as needed.

If the member wants to provide more feedback based on cases he knows, I’d be very happy to receive that.

T. Shypitka: Thank you to the minister.

Well, it’s a little concerning because these are the thoughts that need to be put in place when legislation comes out and bills like this are presented.

It’s not inconceivable for a large family, when we’re talking about getting a new family wagon to put the kids in, that those large families usually have a care provider. One of the spouses is usually at home with the children of large families, and the new vehicle is what you need to ensure the safety of those children.

I know that when me and my wife got an SUV…. We drove a beater around for quite a few years until we got our kids, and then we called them “precious cargo.” That was our term we used, and that was the rationale we used to get a newer vehicle.

We knew that, especially living where we live, the rural roads aren’t quite as dependable as they may be on the Lower Mainland, with snow and ice conditions and mountain ranges that we have to go through every day. When we talk about rebates and how they affect the affordability of families, large families, you would think that the rebates would identify with that, that it would be based on the family income or not.

It appears with this legislation, the rebates that we see associated with ZEVs aren’t addressing those concerns with larger families. I guess the question to the minister is: does she feel that that needs to be addressed?

Hon. J. Osborne: Thank you to the member for the question. I just want to note the bill is not addressing rebates. The bill addresses the ZEV targets, and the rebate and the design of the incentive program is separate policy undertaken by government.

[5:50 p.m.]

As I said, it’s important to be sensitive to a number of different parameters, and I think the member is raising several of those, and designing a rebate program to be fair and effective. To that end, of course, as I said, we take an evidence-based approach to examining the results of the program and ensuring that it’s resulting in those intended outcomes that we have. That’s work that we’ll do.

I thank the member for his concerns.

R. Merrifield: Thank you to the minister.

In clause 1, what’s the significance of amending the definition of “consumer sale”?

Hon. J. Osborne: Section 1. The purpose of this legislative change is to repeal and replace the definition of “consumer sale” and “supplier” and to add new definitions for “forecast report,” “new” and “supply” in section 1 of the act.

The amendments to section 1, these definitions, are necessary to align with the amendments that are proposed to part 3 of the act to transition from issuing debits and credits on consumer sales of vehicles to determining debits, based on the supply of vehicles for consumer sale, and then determining ZEV credits, based on the supply and registration of the vehicle in B.C.

There are a few other things in there. That’s not what the member touched on, so I won’t go any further.

R. Merrifield: The consumer sale is to actually shift what is specified as…. Are we changing the actual credits and the actual definition of what is considered a sale or just to whom it’s being sold?

[5:55 p.m.]

Hon. J. Osborne: This is how the compliance requirement is calculated. Currently that is on the sale of the vehicle to the customer.

Some of the feedback we received from industry is that calculating that on the wholesale sale is less burdensome. It’s easier to do. It’s easier for reporting and planning. The intent, of course, remains the same. This is a shift that is based on feedback from industry. That’s around determining debits.

The other part of this is determining credits and shifting to basing that on the supply and registration of a vehicle in B.C. It’s not just a vehicle that is sold in B.C., but it is registered in B.C. That’s to ensure that the benefit of this remains in British Columbia.

A car isn’t brought into British Columbia from somewhere else and then exported or driven across the border. Another jurisdiction gets the benefit of the lower emissions, but British Columbia does not.

R. Merrifield: Okay. I’m just trying to clarify. Forgive me for being daft. I guess it’s the end of the day.

The consumer sale is now the sale to the lot or once the car is sold to the wholesaler or the dealership. That’s for the debit. The credit is upon registration in B.C. Okay. I’m seeing a nod. Just for the record, the minister is nodding.

Okay. How would that then…? Is there a possibility of a dealer or, let’s say, a manufacturer, potentially, loading the lot right before their year-end cutoff in an effort to try and make sure that they have enough vehicles on the lot but not actually, then, achieving the end sale, just loading the lot full?

Hon. J. Osborne: Interesting question. The answer is no. The reason is….

The dealer will only get the credit once the car is supplied and registered. It has to be sold and registered. You might load the lot and have the car sitting there, but you do not get the credit until you actually have the vehicle sold and registered here in British Columbia.

R. Merrifield: Okay. Thank you for that clarification.

What’s the purpose of the debit?

[6:00 p.m.]

Hon. J. Osborne: Okay, let’s see how well I can explain this. I appreciate that the whole framework and the compliance framework and debits and credits are…. It took me a while to wrap my head around it too.

The debits — think of that as the compliance requirement. It is the obligation to meet the targets. As each car is sold and registered in British Columbia, a credit is issued. At the end of a compliance period, the credits are measured against the debits, and then we’ll see where…. If you’ve sold more cars than you needed to, then you have an abundance of credits. If you’ve sold less cars than you should have, then you’ll be in a deficit or have debits. I hope that helps.

R. Merrifield: No, not so much. Okay, the debits, then, are all of the cars coming onto the lot, whether they’re ICE or ZEV, or are just the ZEV vehicles? The credits I understand as, like, where it’s registered as the sale. That’s where the credit happens. But the credits won’t exceed the debits because the debits are the total that was delivered to the lot. Wouldn’t the debits and the credits…? Aren’t they supposed to match?

If they are supposed to match, then what happens if suddenly a dealership is left with a ton of debits — i.e., they have received them on the lot but nobody is buying them, which is through no fault of their own? Perhaps they were just going through a dry spell, or we’re in an economic recession so people are not buying vehicles to the same extent. Suddenly the credit wouldn’t be a testament of their performance but rather simply a symptom of the market.

[6:05 p.m.]

Hon. J. Osborne: I’m going to try this again. I think we have to get away from thinking about the car lot. Let’s think about the supplier, like Ford, Tesla, GM or VW, whoever it is — the suppliers.

Each of these suppliers has a compliance requirement. This is also set out in regulation, not actually in the act, but the debits are the compliance ratio multiplied by the total number of vehicles sold, ICE plus ZEV, resulting in a proportion that are the debits. Then each time a vehicle — a Ford, a VW or a Tesla — is sold and registered in British Columbia, a credit is issued.

Then at the end of the compliance period for those different suppliers, we’ll compare the credits versus the debits. Is that better?

T. Shypitka: Thanks for this. This is the part of the bill I was looking forward to the most — not. Anyways, it is an interesting conversation. Let me get this straight. The member for Kelowna-Mission suggested that — how am I going to put this now? — at the end of the compliance period, when you marry the debits and the credits, the number of vehicles that were brought in under a compliance ratio to the dealership — those are debited to the account.

When those are registered and sold, they’re credited, and they essentially neutralize each other, one for one. What would happen, as the member said, if the dealer brought in 100 vehicles at the end of the compliance period? He would have a large debit to his compliance report. He doesn’t have time to sell those vehicles, to get the credit portion to make him compliant.

Is this supposed to be…? It’s not a perfect solution, but then of course when he goes into the next compliance period, he has a surplus of vehicles that he doesn’t have to bring in. So those credits will give him more credits than what he brought in.

I don’t know if the minister is understanding what I’m saying here, but it’s kind of a give-and-take situation, in between compliance periods, to what you have, what you sell, and what you brought in. Is that close to what I’m understanding?

[6:10 p.m.]

Hon. J. Osborne: Yes, it is getting late in the day. It makes it harder to explain the technical background behind this.

To the member for Kootenay East, no, not exactly.

Let’s move away from dealers. Dealers are not regulated; this is about suppliers. We’ll use Ford as an example. Ford wants to bring in a certain number of internal combustion–engine vehicles into British Columbia. The total number of vehicles that Ford brings in — ZEVs and ICE — multiplied by the compliance ratio determines the amount of debits. As those ZEVs are sold and registered, the credits are applied against the debits.

If Ford brings in extra ZEVs and they do happen to end up sitting on lots, that’s great. That’s great for British Columbians, because then the car is there and ready, and people can buy it right away. It doesn’t play a factor into the way that the compliance ratios work, and the debit-and-credit system, as to whether there’s a preload each year of cars available on lots. That’s not part of the legislation and the regulation.

R. Merrifield: I am understanding the whole concept of wholesale. Thanks for drawing attention to the actual manufacturers — Honda or Ford. We’re looking at every­thing that Honda or Ford brings in for a full year, multiplying it by the compliance ratio. Then when it gets registered, that is the credit that gets issued back.

There is a way, though, that car manufacturers might attempt to meet their targets and, in doing so, might actually do what happened during COVID: there weren’t enough cars supplied and cars overall. There was the chip shortage, there just were not enough cars available, and what happened was that the prices escalated.

In an attempt to still make money, the car manufacturers — not the dealers themselves, but the car manufacturers — with very short supply, ended up increasing the value of all of the vehicles that were sold. We saw a very steep escalation in the price of vehicles that were sold. If they are not able to meet their compliance targets, and if they see that they’re not making it, they could hold back on shipping vehicles altogether.

Let’s use Toyota as an example. If Toyota decides, “We’re not meeting our compliance. In order to meet our compliance, for November and December, we’re not shipping out any new vehicles,” that ratio gets applied to a smaller number of total vehicles. This makes their sales of ZEVs still good, percentage-wise, but in the absolute, not able to supply to the market.

Is this a concern for the minister — a shrinking supply overall, because there aren’t enough vehicles to meet the demand or the ratio?

[6:15 p.m.]

Hon. J. Osborne: Thank you to the member for the question.

I’ll say that this is not a significant concern right now. Because we are so far ahead of our targets, manufacturers and suppliers are sitting on a bank of credits, effectively. This is a positive thing for them. Should supply chains impact their ability to bring cars into British Columbia, they don’t need to worry so much, because they’ve got a bit of a buffer built in there with that supply chain bank.

Will they try to, overall, reduce their liability to meeting our targets? I would ask: what is in it for them, in terms of the profitability of their company? If one manufacturer has decided that they’re not able to meet the ZEV targets, and they decided that as a result of that, they’re going to bring fewer cars into British Columbia, there are many other manufacturers that are increasing their supply into British Columbia.

That’s part of the flexibility of this system. Manufacturers can purchase credits from each other, if one is doing better than the other, for example. There are a number of compliance pathways. Perhaps that’s something we will get into tomorrow as we continue to go through the clauses of the bill.

With that, Chair, I move that the committee rise, report progress and ask leave to sit again.

Motion approved.

The committee rose at 6:19 p.m.