Fifth Session, 42nd Parliament (2024)

OFFICIAL REPORT
OF DEBATES

(HANSARD)

Tuesday, April 30, 2024

Afternoon Sitting

Issue No. 424

ISSN 1499-2175

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


CONTENTS

Routine Business

Tributes

Hon. S. Malcolmson

Introductions by Members

Orders of the Day

Committee of Supply

Hon. R. Kahlon

K. Kirkpatrick

T. Halford

Report and Third Reading of Bills

Committee of Supply

K. Kirkpatrick

Hon. R. Kahlon

A. Olsen

A. Walker

Report and Third Reading of Bills

Proceedings in the Douglas Fir Room

Committee of the Whole House

C. Oakes

Hon. L. Beare

M. Lee

Hon. N. Sharma

S. Robinson

Proceedings in the Birch Room

Committee of Supply

A. Walker

Hon. J. Osborne

S. Furstenau

Hon. K. Conroy

P. Milobar

D. Clovechok


TUESDAY, APRIL 30, 2024

The House met at 1:32 p.m.

[Mr. Speaker in the chair.]

Routine Business

Tributes

MICHAEL LUNN AND FRED McEACHERN

Hon. S. Malcolmson: Today in Nanaimo is Red Shirt Day. It’s the ten-year anniversary of a terrible and tragic workplace shooting at the Western Forest Products mill. Two men lost their lives, leaving two families devastated.

Please join me in thinking of Michael Lunn and Fred McEachern and, also, their union brothers and sisters, the United Steelworkers, who are mourning today and thinking of the terrible day ten years ago.

Introductions by Members

A. Walker: Today is the birthday of a constituent of mine, Mr. Robert Filmer. He was one of the youngest councillors to be elected in this province and most certainly the youngest in Qualicum Beach.

I’m thinking of him today on his birthday because the town of Qualicum, under his leadership, put in a rainbow crosswalk. It was a big day for our community. However, over the last week, we’ve seen two alleged incidents where someone has dumped chicken manure on that crosswalk. That is not something I stand for, nor anyone in this House.

I do want to wish him a very happy birthday.

Orders of the Day

Hon. R. Kahlon: In the main chamber here, I call Committee of Supply for the Ministry of Housing.

In the Douglas Fir Committee Room, I call Committee of the Whole for Bill 20, First Nations Mandated Post-Secondary Institutes Act.

In the Birch Committee Room, I call Committee of Supply for the Ministry of Energy, Mines and Low Carbon Innovation, followed by the Ministry of Finance.

Committee of Supply

ESTIMATES: MINISTRY OF HOUSING

(continued)

The House in Committee of Supply (Section B); J. Tegart in the chair.

The committee met at 1:35 p.m.

The Chair: I’ll call the committee to order. We are dealing with the estimates for the Ministry of Housing.

On Vote 33: ministry operations, $1,033,255,000 (continued).

Hon. R. Kahlon: I want to start by just sharing with the member. The member asked me a question last time. We were discussing estimates around the rental protection fund. It was a question that was a little bit towards the Ministry of Finance, but I committed that I would try to get an answer.

When we discussed the rental protection fund, in particular, the question was around the impact for the property transfer tax and how much would be coming back to the province and not available for acquisitions.

The team did have a chance to connect with the RPF and can share the following. Of the 27 properties currently approved for acquisition, 24 of them are exempt from the property transfer tax. This exemption resulted in savings of $13.8 million in property transfer tax. Yeah, I believe that’s what the member’s question was.

K. Kirkpatrick: Thank you to the minister, and thank you to the staff for that follow-up. It’s much appreciated.

Lots to cover in a little bit of time here. You’ll be happy to know I don’t have a headache today, so we are going to go…. I’m going to be much tougher than I was last week.

There was a modelling report that was released in December of 2023. It was written by my friends at the Sauder School at UBC and Terra Housing. It was a modelling report. I’ve got a couple questions with respect to that.

It did show the housing prices set to rise and housing starts reducing over time. That was through the Finance Ministry projections as well. The modelling report’s mid-line estimate for how many new homes in the next five years, out of the 250,000 that have been talked about, is 49,000. That means that 80 percent of the 254,000 homes won’t be completed until after 2028, which is the end of the NDP’s ten-year housing plan.

Specific questions: can the minister confirm that the purported reduction in housing prices is only a reduction in future increases and not a decrease in prices overall?

[1:40 p.m.]

Hon. R. Kahlon: The team is just pulling the stuff from the report. They’ll be doing that, and we can canvass the report at greater length over time.

I will share with the member that the report did say that it would lead to from 216,000 to 293,000 additional net new housing units for British Columbia over the next ten years.

The report did highlight that without the important interventions, the prices for housing would continue to go up, given that we have more people than housing available. The report also did highlight that with these measures, with the increase in housing supply, prices would stabilize for rents, and prices would stabilize for the ability for people to buy homes.

K. Kirkpatrick: Thank you to the minister.

May I clarify with the minister the beginning of what the minister said. Does the minister need time to pull that report so that I can continue to ask questions on it? Should I move to another part, and come back to that report? Would that be the preference of the minister? Okay.

If the Chair can indulge for a moment, I just need to reorganize here for a moment.

Hon. R. Kahlon: Yeah, that would be greatly appreciated. That way, the team that’s working on that can cue up. If the member has the general frame of which topics we want to discuss, then we can just have everybody prepare accordingly. I know that these things move, and that’s fine. But any insight on that would be, I think, helpful for the limited time we have.

K. Kirkpatrick: Thank you to the minister.

o

It’s a pretty key document, in terms of the implementation and the impact of legislation that has been coming down the road. There’ll be a number of things: the ACC impact, land lift costs. There are a few key pieces in there. I hope that is directive enough.

If I might, Chair, I will then move to asking some questions specifically about the main estimates documents. I will start with this. There has been a dramatic reduction of over $20 million in the housing and land use policy piece of the budget. It’s the largest cut in the ministry’s budget this year.

If I can ask the minister: how would he plan to ensure that affordability and availability of housing will move forward without these critical funds? Isn’t this move counterproductive to addressing the housing crisis?

Introductions by Members

Hon. R. Kahlon: I want to start by welcoming students from Pacific Christian School, I believe, that are here today.

I see head nods. I want to welcome them to the chamber. There are 20 grade 10 students that are here.

[1:45 p.m.]

I want to welcome you to the chamber today on behalf of my colleague the MLA for Saanich South. She’s not here right now. We’re debating the housing estimates, the Ministry of Housing, and we’re having an exchange about all the things related to housing in the province.

Welcome. I hope you enjoy the proceedings.

Debate Continued

Hon. R. Kahlon: On the question, it’s actually not a decrease. What’s happened is that we had some dollars for DAPR, the development approval process review, and we moved that sooner. The dollars got out quicker than they were. It’s not a massive….

I’ll read this: “The $20.123 million funding decrease is primarily a result of accelerated payments in fiscal ’23-24 for development approval process review funding.”

K. Kirkpatrick: Thank you for the answer. I have to ponder that for a moment to see where to go from that answer. I may come back for some clarification.

The ministry’s budget reflects a substantial $7.5 million increase in salary and benefits. How does the ministry justify such a significant increase in administrative costs? Doesn’t this again show a misalignment of priorities during a housing affordability crisis?

Hon. R. Kahlon: The number referred to by the member is broken down in different initiatives that we committed to as part of our Homes for People plan. Some of these things were in contingencies before, and now they’ve just been put into the budget.

For short-term rentals, it’s $1.7 million. We’ve launched a new digital permitting tool. We haven’t launched it, but we will be launching it soon, and $1.3 million is for the team that’s working on that. We’ve got housing innovation resources, strategy, governments and accountability, housing supply. We’ve got different pieces of the housing strategy that are now coming into the base budget when most of those were in contingencies previously.

K. Kirkpatrick: Thank you to the minister.

I’m really interested in the housing innovations division. There is a $2 million estimate provided for that, maintained into the next year. Can the minister describe what kinds of innovative solutions the ministry is expecting to be funded?

[1:50 p.m.]

Hon. R. Kahlon: That team is doing exciting work. First, they’re working on digital permitting.

I can share with the member that the digital permitting team is working on a new digital building permit tool which will enable community proponents to submit building permits digitally so that there could be automatic code compliance checks on the building code side and will also do a complete check for completion of applications to ensure that it meets the local government’s needs. That work is happening right now.

We think that’s going to have significant impact in communities, and we want to expand that over the years. It’s starting as a basic tool. We have signalled that we will digitize the building code to PDF initially, but we are moving to BIM-enabled over time so that an application that is created in BIM, in a digital model, will be able to be submitted in a digital format and be automatically checked for code compliance. That’s where that team is heading, and we’re working with 14 communities on that.

Then the team is also working on opportunities for modular going forward. In particular, they’re also working on mass timber and advancing mass timber use in B.C.

K. Kirkpatrick: Thank you to the minister for that answer.

The digital building permits part of that is being funded under the $7.5 million increase in benefits. Another piece is coming out of the housing innovations division. I understand the minister said they’re working with 14 commun­ities. Is the digital building permits technology something that’s expected to be rolled out and then customized to municipalities across B.C. once it’s finalized?

Hon. R. Kahlon: It’s a front-facing tool that will be rolled out initially with the communities that have agreed to pilot with it. More details will come soon. If it is successful, I suspect that communities around the province would be wanting to be part of it, but there’s work for us still to do on that.

K. Kirkpatrick: Thank you to the minister. I’m very interested in that. I think that is certainly the way of the future.

Can I ask then, with the $2 million for the housing innovations division and the various things going on there, how will the investment directly impact the housing market, and what measures is the ministry putting in place to determine the effectiveness of the new projects that the innovation fund is funding?

Hon. R. Kahlon: I can’t give the full impact at this point, other than to say that the team is working. We have a working group: UDI, ULI, local government representation, architects, engineers and the Building Officials Association. We’ve got a whole table of professionals who work in this space that are at the table helping design and guide it.

We have got the folks at Digital on it. We have got folks from B.C. Tech on it. Really, pretty much everybody that touches that type of work is at the table helping guide the process.

There’s a lot of excitement about the potential around this. This may be a surprise, but the federal government is interested in something that B.C. is doing. They’re interested in this initiative in particular. The reason why everyone is excited is because they see the potential impact this could make, to address both time and uncertainty.

[1:55 p.m.]

Also, there is potential in the future for this tool to have the ability for information-sharing between different entities, different authorities. That is an important piece, I think, for us. That is, again, future work.

I can share with the member kind of where we’re at now. We think that this team will have major impact, whether it’s on the digital permitting side or on work they’re doing around the building code on mass timber. It’s a small but mighty team. I think, as the member has highlighted, that this is the future, and the team is leading that work.

K. Kirkpatrick: Thank you to the minister.

Back on the digital permitting, which I think is quite interesting, certainly this is a good idea. What I have found with this government is that sometimes the execution on things doesn’t go quite as smoothly as initially intended. Can the minister explain when this project will be completed?

Hon. R. Kahlon: We will have to disagree on the characterization of the work. I would highlight that almost every single initiative that we have brought forward when it comes to housing is being adopted across the country. We are leading the way when it comes to new policy, new tools, new technologies. I’m really proud of the folks sitting around me, because they’re leading this work across the country.

There’s no end goal, necessarily, of this work. Digitizing our processes is ongoing. So I can’t put an end date. I can say that in the coming months, we’ll have phase 1 of the digital tool made available to the public, to homebuilders. Part of the work, the scope of the work, is: what would phase 1 look like? This is what we’re in now.

Then, with that advisory group, we’re talking about what phase 2 looks like, what phase 3 looks like. It will be multiple years to roll out this work. I know I’ve met with housing advocates, homebuilding organizations, from Ontario, that are trying to get the Ontario government to do this work. We’re hoping that we can set a model which then can be taken across the country.

K. Kirkpatrick: Thank you to the minister.

I’ll move on, but just two things. I know we’re making statements here prior to answering questions. I may disagree with the minister that the plans and the work that are being done on housing are being adopted across the country.

I think there certainly is a curiosity as to how things are rolling out here. I am concerned — with such a significant investment, such as software, in the development of what could potentially be a real game-changer, in a significant, complicated project — that there’s not a specific scope in timelines for when it’s going to be completed and how that work is going to be done.

A question to the minister, again on the financials. The strategic governance and accountability allocation sees a significant rise of $536,000. Can you explain the necessity behind this increase? How does bolstering governance and accountability translate into tangible benefits to those who are struggling with housing?

Hon. R. Kahlon: I think the member and I can probably agree that governance and accountability are critically im­portant. That’s the process we’re going through right now. I can share with the member that this team works with the FPT tables. This is one of its responsibilities.

[2:00 p.m.]

There are a lot of initiatives that we’re doing that now require us to work better, in better collaboration, with the federal government, whether that’s BC Builds, or their version, Canada Builds, or whether this is…. Now some of the conversations they’re having are around infrastructure, housing targets, all these things. That’s partly the work this team is doing.

Also, a new Indigenous unit that we’ve started there…. More Indigenous communities are very active in construction and projects. We see a need for a team to be able to support that work, to support communities, but also support housing across the province. It’s actually a modest amount, considering the work that the team is doing.

K. Kirkpatrick: Thank you to the minister.

I’m going to talk a bit about the cost pressure grants and some of the issues happening with construction overspends on projects. The cost of construction has gone up significantly under this government, and the government had to expend $154 million on overbudgeting housing projects, and that’s nearly $4 million per project. I have about three pages’ worth of projects here that have overruns.

We have seen the cost of construction soar, leading to that $154 million in cost pressure grants being poured into the over-budget housing projects. How does the minister justify nearly $4 million per project in overruns to taxpayers who are already burdened with some of the highest cost-of-living increases we’ve ever had?

Hon. R. Kahlon: The member referred to this government, but I think the member can easily say governments across North America, across the world are dealing with global inflation. Certainly, in Canada, my counterparts across the country are seeing cost pressures on housing, infrastructure, all types of projects. And that’s no different than the private sector. There are a lot of projects that are private sector projects that are dealing with major cost pressures.

What I would say is that there is a deficit of affordable housing. There is, we believe, decades of underinvestment in affordable housing. And when you have projects that are going, it’s vitally important that they get built, because they’re supporting some of the most vulnerable people in our community. We acknowledge that there are cost pressures on housing, on infrastructure, across the board, across Canada. What we’re doing here is we’re stepping up to deal with it.

We also are looking at supporting federal government projects. The federal government, at one point, decided that they were going to go directly to local governments to support housing projects. Some of those projects had cost overruns and stalled those projects. We’ve been trying to find ways to ensure that even those types of housing units continue to get built, because we know what it means for people in our communities.

K. Kirkpatrick: Thank you to the minister.

It’s easy to say that everybody else is having the same problem, and everybody else is having the same results, but that is not necessarily true. When there are anticipated cost overruns, when you’re managing a project, you have to make decisions along the way that are going to make that project affordable. The ability to simply write a cheque at the end of the day and not actually be really managing the budgets on these projects and making decisions to manage those costs is concerning.

I know my colleague from Kamloops last week was asking the minister about a B.C. Housing project that had been purchased. Money hadn’t gone into it to make sure that…. I shouldn’t say that money hadn’t gone into it. There was no thought to maybe turn off the water during the winter so all the pipes didn’t burst. You’ve got a building sitting there empty that should have people in it. So it’s hard to take the explanation for the cost overruns on “it’s just something that happens,” because we know that bad management is certainly a contributor to those cost overruns.

Given the table from the B.C. Housing FOI that we re­ceived, indicating numerous projects across various communities, it’s clear that the cost overruns are widespread. So realizing now that this is happening, what specific measures is the ministry taking to ensure more accurate budget forecasting and control over public funds?

[2:05 p.m.]

Hon. R. Kahlon: I think it is true and fair to say that cost pressures are being felt across the country. I know this because I talk to colleagues across the country. We’re talking about our not-for-profit partners, who are the ones who are dealing with these cost pressures. No one is trying to make extra money here. These are real cost pressures — because of global inflation, interest rates — that are being felt.

I think the member knows that it’s the same with our local government partners. It’s the same with the federal government. It’s the same with our private sector partners. All of them are facing real cost pressures that are putting challenges on their projects.

We’re doing an analysis to ensure that it’s real cost pressures, tying it to things that are actually impacting the housing to be built. The accountability measures are in place to do that. In the end, it’s vitally important that when a community knows there are 40 units of housing coming in their community, we find a way to make sure those 40 get built so people can get indoors.

K. Kirkpatrick: Thank you to the minister.

There is considerable financial impact when budgets, obviously, are overrun. I’m curious about the accountability measures within B.C. Housing. What kind of oversight is there to make sure that these budgets are being managed as best as they can be?

I’ll take what the minister says. I mean, I know we’re in a high inflationary period of time. There are cost pressures, but we have to manage those cost pressures. Again, I’ll…. You know, the Kamloops reference…. There’s money being spent on things where you’re not actually getting benefit, and those are taxpayer dollars being spent.

What accountability mechanisms are in place when projects exceed their budget forecasts? Is there a risk of systemic inefficiency within the current approach to housing development?

Hon. R. Kahlon: The accountability measures that are in place…. All related cost overruns for new projects get verified through a third-party cost consultant. If the variance is above 10 percent, it automatically has to go back to the board. If there’s a variance of over 15 percent, it has to come to the province as well.

K. Kirkpatrick: Thank you to the minister.

Who is the third-party cost consultant?

Hon. R. Kahlon: There are many consultants out there. An example would be Altus. Altus is a well-known company that does this work. But there are many that B.C. Housing works with.

K. Kirkpatrick: Thank you to the minister.

May I ask the minister if we can now move back to the December 7 modelling report? Okay. I’ll start questions on that. Let me just see. Did I ask a question on this, or did we stop before I started? Yeah. Okay.

Is the information in the modelling report baked into the ministry’s budget? Does it inform the housing starts and the supply projections?

[2:10 p.m.]

Hon. R. Kahlon: The report was a third party doing an economic analysis of the impacts of the legislation that we brought forward. The data has been shared with the Ministry of Finance. It has been shared with our local government partners. It may guide communities in some of their decision-making. It was important to see the impacts, potentially, of the work. That’s why they were consulted to provide us this information.

K. Kirkpatrick: Thank you to the minister.

The question was based on the data that’s in this report. These are people that this government relies heavily on for data that is meant to inform policy decisions.

Was the data in that report considered in the government’s budget in terms of estimates on housing starts and supply projections?

Hon. R. Kahlon: The data that’s presented reinforces that the legislation we brought in was important to address the challenge we have. I would not say it was used for creating the B.C. Housing Ministry’s budget. The projections are for private sector, mostly, housing that’s going to be built. We, obviously, use the data internally. We use the data for what could possibly happen, but it did not impact the size of our housing budget in the ministry.

K. Kirkpatrick: Thank you to the minister.

I’m sure that the minister and the ministry are alive to some of the comments and analysis of policies that this government has brought in and the view that there will be negligible impacts in many areas from the legislation that is being brought in.

How does government respond to concerns that the majority of the new homes which are promised under the current plan won’t be available until after the end of the NDP’s ten-year housing plan in 2028? I know that the minister said these homes will be ready in ten years. The date I’m referencing is actually the end of the NDP’s ten-year housing plan, and the majority of these homes won’t yet be completed.

Hon. R. Kahlon: There are a few things. The projections from this third party are in addition to the targets that we had set. It’s in addition to the targets that we had set. That’s the first important thing.

The member refers to studies that show that the policies we’ve brought forward won’t have a big impact. I’m happy to talk about those studies that the member is referring to. I can’t point to specifically which policy the member is referring to.

K. Kirkpatrick: Thank you to the minister. This is just, again, from the research that was done out of UBC and Terra. The modelling report suggests that the new amenity cost charges could actually significantly and negatively impact housing growth, particularly in Vancouver.

[2:15 p.m.]

Why, then, is the NDP allowing Metro Vancouver to triple the taxes on new housing in the region?

Hon. R. Kahlon: I think the member’s question is conflating two different issues into one. Amenity cost charges are an important tool because not only do we want housing, but we also want to ensure we have viable, livable communities that have amenities. I don’t know if that’s a position of the official opposition, not to support amenities in our communities.

The tool, as we debated at great lengths, comes with checks and balances for local governments. They have to clearly put in their bylaws what amenities they’re prioritizing, what part of their community. It comes with some certainty on costs. It comes with some requirements to have analysis done on the impacts it would have for housing.

I think that it’s important that communities be able to build those amenities, and that’s what the amenity cost charge is: moving away from a model of negotiations or discussions that are not in the public to a very transparent public form of funding critically important amenities.

We believe we can have both. We believe we can have housing but also ensure that local governments have dollars to build important amenities to support growth in communities.

K. Kirkpatrick: Thank you to the minister.

Well, it was quite the leap to suppose that by my asking about the negative impact of amenity cost charges, there was any suggestion whatsoever that the official opposition doesn’t believe in community amenities. I mean, livability is foundational in terms of the housing plan that we’re talking about on this side of the House.

The question is that this is modelling that is done that is showing that the introduction and the use of amenity cost charges could significantly, negatively impact housing growth. May I ask what the minister has as a response to that?

Hon. R. Kahlon: It would help us, in this exchange, if the member were able to point to a page number on the report or what section the member’s referring to when referring to amenity cost charges.

K. Kirkpatrick: Thank you to the minister. I appreciate that. I’ve got page numbers on some of these, but I’m sure that my folks behind the computer here will provide a page number in a moment that I can share with you.

I will move on to the next question then. Can the minister elaborate on the modelling report’s caution about the potential for rezoning to mainly benefit the incumbent property owners?

[2:20 p.m.]

Hon. R. Kahlon: I was trying to find where the member is referring to in the question, and I can’t find the reference. I will say that to suggest that the impacts or the effects of this legislation won’t have impacts on people that are renters or others in the housing market is incorrect.

If the member is referring to the report, on page 17, it says: “The primary effect of small-scale, multi-unit and TOA legislation on renters is to reduce rents by existing rental homes through supply effects.” It also says: “We show that in most cases, new higher-density housing would be built closer to city centres, with potential benefits in reducing commuting, congestion and associated carbon emissions.”

Throughout the report, it talks about the impact of the changes and what that means to communities. So let’s say I respectfully disagree with the member’s characterization of what the report says.

K. Kirkpatrick: Thank you to the minister.

To go back to the amenity cost charges, although I won’t debate those again, there is a table entitled “Impact of ACC charges on TOA development,” and that’s located on page 126. That is where it shows that there could well be a negative impact on housing starts because of the ACCs.

I’m going to, if the minister is okay, move along with similar questioning, but we don’t need to necessarily connect it directly to the report. Though I will provide, when I have those details, what pages and what areas in the report we’re referencing.

As when the member of the Third Party and myself were talking about some of this new legislation and asking the minister questions as we went through, there was a concern about wealth inequalities from Bill 44 and the value uplift in properties. That is supported in the modelling report.

Does the minister, at this point, in hindsight, or with information that’s coming in…? Could he respond to concerns that gains from rezoning would exacerbate wealth inequalities?

Hon. R. Kahlon: This is like déjà vu of the fall session. The member for Parksville-Qualicum is laughing because we spent hours talking about these topics, and the information was in front of us when we had that conversation.

The housing system we have right now is not working. Income inequality and the spread between those who have and those who do not is growing with the system, prior to any changes. It’s happening. Those that have access to housing, homes, multiple homes have greater wealth than those that don’t have access to it. The reforms are about increasing the housing supply, in­creasing the ability for people to get into the market in housing that is affordable to them.

[2:25 p.m.]

I spent, I think, five or six hours talking about this topic. I’m happy, for the last four or whatever hours we have, to continue to talk about the legislation in the fall, but I think that time might be better used for us to spend on the estimates at hand.

K. Kirkpatrick: Thank you to the minister.

With respect, we may have been talking about things, but in the interim period of time, this report has come out, and there has been other information that supports what some of our concerns were.

There is also, in this report, a recommendation for value capture mechanisms to tax the land lift in these properties. Coun. Christine Boyle has advocated for a land value capture tax to deal with this.

Has the minister had any communications with Councillor Boyle regarding this type of tax?

Hon. R. Kahlon: I have not, and I’m not aware of any conversations happening around this.

K. Kirkpatrick: Thank you to the minister.

Because there seems to be a disconnect between the ministry and the information I’ve got with respect to the modelling, I’m going to move on to some other topics at this point.

Surprise, surprise. I am going to ask the minister about compensation for homelessness costs. This is starting with the invoice from the city of Victoria to the ministry. They have decided to invoice the province for $100,000 to cover the operational costs of Our Place’s storage facility and community centre.

I’ve got a couple quotes here from a few different mayors.

Marianne Alto in Victoria: “This council has done yeoman’s work well above its usual capacity…in stepping into spaces that have been traditional responsibilities of the provincial and sometimes the federal governments.”

Mayor Leonard Krog from Nanaimo: “Should local residents taxpayers be paying for what’s essentially the delivery of medical services?”

Again, UBCM president Trish Mandewo: “We are footing the bill, and it’s getting increasingly difficult for local governments to balance the budgets. This issue is not going away.”

A question to the minister. Will the Minister of Housing be paying the invoice submitted by the city of Victoria? Is that a yes or a no?

Hon. R. Kahlon: If the member has the invoice, I’d like to see it. We’re not aware of any invoice that the city of Victoria has shared with us.

I will say that in this case, the city of Victoria made a decision in 2018 to provide funding for an initiative. The province wasn’t consulted. They made that decision, and they’ve been funding it for six years. I am not aware of any invoice that has been sent to us. If the member has information about that invoice, I’m happy to see it.

Beyond that, I can say that we have been working with communities, providing an unprecedented amount of investments and funding for these measures in particular. I’ll highlight a couple.

Just today I met with the councillors and staff from Prince George, where we are bringing online 100 affordable housing units, supportive housing units to get vulnerable people out of encampments and into homes.

Crab Park — I mentioned that. We had over 100 people at Crab Park. We’ve been working, building relationships, getting people into housing. We have 16 people, and our goal is to get them into housing. It’s the same story in Nanaimo.

Just in Abbotsford, on Friday: 221 housing units that we’re funding in Abbotsford. Lonzo park site is opening this week. We’ve got people moving in. We identified new shelter locations. The list goes on, and it’s important work.

I’m keen to work with our local government partners to support the efforts that they’re making. I think all the mayors you’ve mentioned — Mayor Alto, Mayor Krog, Mayor Yu in Prince George, Mayor Siemens in Abbotsford — will tell you that the historic amount of dollars we’re investing is needed, and we’ve been doing it in partnership with them.

[2:30 p.m.]

K. Kirkpatrick: Thank you to the minister.

I don’t think there’s any debate that these investments are important and that we need to provide shelter housing in these communities.

The concern from these municipalities is that it does put additional pressure and additional costs because of the nature of the housing that’s going into the communities, and that is pushed down to the municipalities to have to pay. Whatever has happened with Victoria covering costs in the past, the issue is today and how those increased costs are being managed.

Given the city of Victoria’s recent action to invoice the province…. I appreciate that the minister has said he has not seen that invoice yet. But he has certainly heard about that invoice in the media, and we are certainly aware that that invoice is coming. So given the recent action of the city, what is the Ministry of Housing’s stance on such claims from local governments that these costs are now being downloaded to them that should traditionally have been the cost borne by the province?

Hon. R. Kahlon: I would say that dealing with homelessness is a real challenge. I appreciate the pressures that local governments face, the province faces, the federal government faces, First Nations communities face. But I want to make sure that it’s on the record that this discussion of local governments not believing the province is funding enough is not something that’s new to our government now.

[S. Chandra Herbert in the chair.]

If you go back to Hansard to 2002, 2004, 2008, you will hear the same conversation happening. Whether it’s infrastructure or whether it’s other matters, local governments are always making the case that the province and the federal government provide more dollars. All for good reasons, all for good causes.

My goal in our ministry is to work with our partners to address the challenges around housing. My door is always open to mayors. I spoke to Mayor Krog just a couple of weeks ago. We’re making some real good progress when it comes to getting vulnerable people off streets and into housing. Mayor Alto, similarly. Mayor Siemens — I met with him on Friday. The list goes on.

Again, we can go into this “the local government’s wanting more dollars” question, but it is something that is, I think, a historic piece that local governments have raised that we’re going to have to just work together on.

K. Kirkpatrick: Just so the minister is aware, and whoever has sent this to me, Victoria has actually sent the invoice. I’m not sure why the minister has not seen that invoice, but it has been sent, unless I am being given wrong information.

I hear what the minister is saying with respect to the kinds of requests for municipalities that have been historical in terms of asking for increased supports. But we are talking about issues that are traditionally, and should be, covered by the province, which are unique to the times that we are in today.

Additional homelessness, public disorder, decriminalization, conversion of motels into supportive housing units: all of these things actually add to the burden of a municipality in terms of the costs they have to pay. The costs are related primarily in terms of homelessness and shelters that the municipalities are flagging and that the city is talking about.

Again, what does the minister have to say to those municipalities on those specific issues that are unique today that are causing financial hardship? There’s only so much that a municipality can do, only so many tools that it has in order to be able to balance its budget.

Hon. R. Kahlon: I have knowledge that homelessness is a challenge. I think it’s two things. I think it’s important to acknowledge that homelessness didn’t just start. We’ve had a homelessness challenge for a long time.

We went at great lengths when we were discussing homelessness when the previous government was on this side, on the government side, and were dealing with homeless encampments in the city of Victoria and communities across the province. Those were real challenges that communities have been dealing with for a long time.

Again, for the city of Victoria, I’m not aware of any invoice. But again, if a local government comes forward with some information, and they want to have a conversation, we can certainly have that.

[2:35 p.m.]

I think it’s important for the record to note that Victoria decided they were going to fund this in 2018, six years ago. It wasn’t a conversation with the province. They decided they wanted to do it. Then for them to turn around and say: “We want you to pay for it now.” I think if there’s true collaboration, we should be working together on that. And that’s my expectation with all communities that we work with in the province.

K. Kirkpatrick: Thank you to the minister. I think that we’re talking about two different things in terms of what the city of Victoria has agreed to fund previously and the nature of their request today. But as the minister has not seen the invoice or the correspondence from the city of Victoria, I’ll move on, although to note that this is an issue that is not just city of Victoria. I believe other invoices will be in the mail to this ministry in the future.

UBCM has been here recently, advocating for some of the key issues that municipalities have. With respect to housing, there were several requests of this minister. As we’ve seen in the last few years, there’s been a lot of conversation about what’s happening with B.C. Housing. So one of the questions that UBCM had was: how does this government intend to improve B.C. Housing operations that will minimize delays in affordable housing projects?

Hon. R. Kahlon: I would first start by saying that there are a lot of improvements happening at B.C. Housing. I’m not saying that because the CEO is behind me, but I am saying that because the CEO is behind me. He’s been doing a fantastic job in his role in making the changes that I think are necessary at B.C. Housing.

When it comes to projects, I think there’s always a desire for projects to move faster. Sometimes it’s procurement challenges. Sometimes it’s challenges related to local governments and their permitting and change of use and additional requirements that get put on in the last minute. I’ve seen it all. It’s a combination. Sometimes we can do better; sometimes local governments can do better. We are committed to continue to work with them, especially in this time.

It’s one conversation to say we have limited funding for housing, and because there’s limited funding the issues are limited, and the scale is limited. But we are investing in dollars that we have not seen in B.C. when it comes to social housing or affordable housing. With that increased capacity, it puts pressure on local governments. It puts pressure on us. So we continue to work through that.

I met with the UBCM and the executive members that were here. We talked about a whole host of topics that get raised about housing. Then I mentioned the projects that are happening in communities that have opened, that are opening right now. There is generally a real excitement.

I think from a UBCM perspective…. Certainly what I heard from them is that they are pleased to finally see the investments that are needed. They would always like to see more. The other topics we discussed around infrastructure and all those pieces, I think those are things we have to work together on as we go forward.

K. Kirkpatrick: I’m not sure that I would describe the reaction to much of the changes in housing policy as being pleased. I know that there are a lot of concerns that municipalities have.

I’m going to ask a couple more questions on B.C. Housing, very mindful that Vincent is sitting in the House here. There have consistently been concerns from housing providers that the bureaucracy at B.C. Housing is challenging. The turnaround times are challenging. It’s very difficult to get an invoice approved or to get something that’s rela­tively critical so that you can move on and a housing provider can pay for something.

After everything that happened with Atira and B.C. Housing, and I know there have been changes, there is a recognition of an inefficiency in the processes at B.C. Housing. Can I ask what has been done to review that? Are there recommendations just in terms of increasing the efficiency of how the organization works?

[2:40 p.m.]

Hon. R. Kahlon: There’s been a lot of work happening around streamlining processes between the requirements from treasury, from B.C. Housing, from our not-for-profit partners. We’re also doing a lot of work with our not-for-profit partners. I think that there are ways for that interaction between our not-for-profits and B.C. Housing to be much more efficient. We’re looking at digital tools to make sure that information can be going back and forth, so it’s less labour-intensive. There are efficiencies, definitely, that we can achieve, but that work is actually happening right now.

My team, B.C. Housing meet with CEOs from not-for-profits. There’s a bit of a working group, and those are places where all these discussions are happening right now.

K. Kirkpatrick: Thank you to the minister.

Are contract renewals with the housing providers being done in a timely manner, or are they actually exceeding the dates when the initial contracts are expiring?

Hon. R. Kahlon: Thanks to the member for the question.

I think it’s important to note first that there’s never a gap in service. If an operating agreement hasn’t been renewed, the service continues, and there are provisions built into the operating agreement for that.

There is work to do there. We are doing a lot of work in that space. It’s an important conversation we’re having with our not-for-profit partners. How do we streamline? How do we find efficiencies? How do we do this in a better way? The working group I mentioned to the member is a place where these conversations are happening.

K. Kirkpatrick: Thank you to the minister for the answer.

The concern I have heard is that there are often services being provided prior to even having a contract in place with B.C. Housing. That happens…. The most obvious examples, I think, or the easiest examples are winter shelter and some of those things that seem to be left to the last minute to be able to develop and sign contracts with the housing providers.

What I would like to do now…. I’m going to move on to some different questioning, but I am going to turn the floor over to my colleague from Surrey–White Rock for some questions.

T. Halford: I thank the minister and his staff, and I do thank my colleague from West Vancouver–Capilano for giving me this important time here on the Housing estimates.

[2:45 p.m.]

The minister and I have canvassed this in the chamber, I think, definitely outside, regarding the warming shelters in White Rock. Specifically, this winter, obviously, we saw record temperatures, at least where I am, of freezing.

White Rock itself is a fairly small community, with just over 20,000 individuals. But also, in terms of our population that’s unhoused, a lot of those individuals come from Surrey as well, or other parts of the province. But White Rock has been on the hook — specifically, we’ll talk about this year — for the warming shelter, where they approved, through council, $360,000 to fund it.

I’ll be honest; it was kind of done at the last minute, because they were trying to get support. It’s a much smaller tax base. They did have a request in for emergency B.C. or $75,000 last season. They can only apply for those funds if the temperature drops below zero. But now with their tax base to absorb that and not have any support, where they’re having to house people from other municipalities….

I know the minister was on record with CBC, following the mayor’s comments, that he would look into ways that he could assist White Rock in terms of their funding.

White Rock has a bill here for a substantial amount of money. They stepped up, and they did the right thing. And we always want to make sure….

I’ll keep in mind that that warming shelter was only in place until 10 p.m. Okay? So after 10 p.m., these people had to leave. Where did they go? A lot of them went behind the movie theatres, the Rialto. A lot of them slept in alleyways, businesses, abandoned homes.

So my question to the minister is, one, is he still willing to help White Rock with the bill that they have for the previous winter? Also, two, how do we find a way where we can actually get people that aren’t getting put back onto our streets when it is the coldest? After 10 p.m., it’s much colder than it is at four o’clock when they’re checking into the shelter.

Hon. R. Kahlon: Thanks to the member. The member has spoken to me about this topic.

I think it’s important to note that my comments on radio were about a conversation with the city about a permanent shelter. My comment was that if the city can help us find a location for a shelter, where people can be in­doors, they have a place to sleep at nighttime, that is a conversation we’re willing to happen.

I don’t think at any point I said that we would fund a new operation that they started without talking to us about what that looks like. If White Rock is interested in having something that is available for people for overnight sheltering, not just day space but overnight sheltering, we’re keen to have that conversation.

The Chair: I had a brief request for a five…. I had a request for a biology break, but I’m going to go back to the member from White Rock, and then we will take that break, so they can get those questions done.

T. Halford: Biology breaks are important, so I will be brief.

Anyways, I want to thank the minister for that answer, but my point is this, and I’ll ask the minister this question: did the minister, or through the ministry, have conversations with the city of White Rock and with the city of Surrey specific to funding a warming shelter or an overnight shelter in the either White Rock area or South Surrey area prior to council approving this $360,000 which had the warming centre in operation from November 20 to March 15?

We, in my area, have relied primarily on faith-based communities to do this housing. I know that this has been a very important topic for those, to make sure that we have something.

Then my second question would be: is the minister in talks with just White Rock proper in terms of finding a permanent facility for daytime and overnight? Is that just White Rock, or are those conversations also including Surrey, specifically in the region of South Surrey?

Hon. R. Kahlon: There may have been conversations with B.C. Housing staff, in the local staff, with White Rock. I’ll get that information. I’ll read into the record for the member once we reach the person that’s the lead on that.

[2:50 p.m.]

I will say to the member that B.C. Housing doesn’t fund warming centres. If there is a request for funding for when the temperatures rise, it’s done through EMCR.

I can say that there were lots of conversations with the city of Surrey around supportive housing and shelters. I know that for a fact. We’ll just have to verify what conversations have happened with White Rock.

Again, communities coming forward and saying, “Hey, we have a location; we want to put a shelter in place,” is music to my ears. Those are really difficult conversations to happen in communities.

I do appreciate the member’s understanding and agreement that there’s a need for this type of housing in communities. I will get that information for the member and read it into the record so that he has it.

The Chair: Thank you, Members. I’ll ask that we take a recess for ten minutes. That means be back here at three o’clock so we can get going at three. A request to all members. Thank you.

The committee recessed from 2:51 p.m. to 2:59 p.m.

[S. Chandra Herbert in the chair.]

The Chair: All right, Members. It’s just about three o’clock. I’d like to start things early, if I can.

We are here with the committee for the Ministry of Housing estimates.

First, I recognize the member for Coquitlam-Maillardville.

S. Robinson: I seek leave to make an introduction.

Leave granted.

The Chair: Please proceed.

Introductions by Members

S. Robinson: Up in the gallery today, we have several guests. Leo Facio is here joining us. He’s a city councillor from the burgeoning town of Harrison Hot Springs. He is a former mayor. He has been a really good friend of mine. A lovely gentleman. He’s no longer the mayor. He’s now a city councillor.

He is here with his family: Alja Facio, Matthew Facio, Danica Facio, Caleb Facio and Mikayla Facio.

[3:00 p.m.]

This is their first trip to the Legislature. I’ve taken them on a bit of a tour. I think some of the highlights for them, besides the library and this lovely chamber…. I think it was meeting Keith Baldrey out in the hallway.

Can everyone please welcome the Facio family to the House.

The Chair: Welcome to anyone else as well.

Welcome to the Facio family.

Hon. R. Kahlon: On a good day, it’s nice to see Keith Baldrey in the hallway. On a bad day, it’s probably not as nice for us to see him in the hallway.

I’m glad you got a chance to have a tour and see the library. The library is my favourite spot.

Nice to see you again. Thank you for being here.

Debate Continued

Hon. R. Kahlon: My colleague from White Rock, the MLA from White Rock, asked a question prior to the break. Our team has connected with White Rock. They have connected with the staff.

Now, the challenge they found, in the conversation, was the location. Location was the big challenge. There was, I guess, a round table with B.C. Housing and others in the community that existed to talk about how to address this challenge. There was a leadership change, and under the new leadership, there isn’t that table yet. I think there might be value in bringing that table together again to talk about how we address these challenging issues.

I’m certainly hoping my friend from across the way sees this comment and maybe reaches out to me. We can figure out how to start that process again.

With that, I’ll pass it back to the member.

K. Kirkpatrick: On behalf of the member for Surrey–​White Rock, I thank the minister for that answer.

I’d like to talk about the impact of some of the policies that have come in, in the last few years, in terms of how they’re impacting the work that we’re doing with real estate today. The homebuyer rescission period, HBRP, was brought in with a goal of cooling the market and dealing with the multiple offer issues. Has the ministry gone back and reviewed if that tool has been successful in doing what it was intended to do?

Hon. R. Kahlon: I appreciate that we’re talking housing. This is a piece that was the Ministry of Finance. Those estimates are coming up in the other chamber. This question may be better suited there.

K. Kirkpatrick: Thank you to the minister. I appreciate the response that this is a Ministry of Finance question.

It certainly has an impact on housing. It’s got to be connected to housing plans and policies and behavioural modification, which is being attempted with this kind of work.

Has the minister…? Who would be monitoring whether this tool is actually working? Is that something that someone in Housing looks at, or is that something that somebody in the Ministry of Finance would look at?

Hon. R. Kahlon: Yes. This is, again, the Ministry of Finance.

The challenge we have is they’re in estimates right now in another chamber. I wouldn’t be able to get any information from the Ministry of Finance. But it is something that is better suited to ask the Minister of Finance.

K. Kirkpatrick: I agree with the minister. The challenge is the Ministry of Finance is in estimates in a different room, and I’m not able to ask that question right now. I am certainly hoping I will be able to do that. I do think there are some challenges with the implementation of that.

Another question on behalf of BCREA and, I believe, on behalf of most British Columbians who are dealing with the housing market right now. There has been an escalation of policies and legislation. There’s a lot going on in British Columbia right now with respect to housing and changes in housing. BCREA has been asking this government for a permanent provincial housing round table.

I would like to ask the minister: is that something that’s being considered, and if not, why not?

Hon. R. Kahlon: I’ll give the member the same answer that I gave BCREA when they were all here, at their conference, in front of all their members. We value the input that they could provide to this conversation. In fact, we have BCREA sitting at various tables on various topics. But when it comes to housing, limiting the conversation to one table is a real challenge.

[3:05 p.m.]

We have a lot of local governments. We have different bodies representing local governments. We have BCREA. We have engineers. We have architects. We have commun­ity planners. We have the Urban Development Institute, the UDI. The list is actually quite large. There are local organizations in each community.

My message to BCREA is that, yes, we should all get together and have conversations about how we move housing together. But to limit it to one table becomes challenging. It’s hard to have one table where you can be productive to have the conversation, but at the same time, who doesn’t get a chance to come on the table is a challenge.

Again, I think they have good input. They have actually shared a lot of input, and I know from my last meeting with them that they’re big fans of the reforms we’re bringing forward. We’ll continue to work with them and all the other partners in the housing space.

K. Kirkpatrick: Thank you to the minister. With all due respect, I think saying “big fans” might be a bit of an overstep in terms of their reaction to some of this housing legislation.

If I might just clarify as well. What they’re asking for is not simply a BCREA ability to meet with government and have input into policy and legislation. They’re asking federal, provincial, municipal, regional, Indigenous governance authorities, market and non-market developers, builders, real estate professionals, civil society organizations.

I mean, there are a lot of people that need to be at the table, and then there is ability to have subcommittees or different groups that can look at something in a more specific area. It is something that I know has been asked of the minister, and I reiterate that I think that’s important.

I’m going to move on to something else, which I think is actually an example of perhaps not getting enough feedback, clarification and consultation when coming out with legislation. I have a couple of things I’d like to address, as tomorrow is May 1. We know what happens on May 1. It’s when the STR bill, Bill 35, comes into effect in terms of limiting short-term rentals.

We did a lot of work on Resort Drive in Parksville and in Qualicum. That was, admittedly by this government, an oversight in terms of looking at the impact on a particular community with the overreach of this STR legislation and the impact that it would have had on Parksville. I know that Parksville appreciates that the minister heard and has addressed this issue. Now, he could not have not heard this because of the 100 people that came into the Legislature and the introduction of the amendment of this act by B.C. United.

But I have another example that I would like to share and would ask if the minister could explain why this particular project and property would be included in the STR ban. This is a resort community called Aqua resort. It’s a 300-plus unit, 380-degree waterfront, multiphase, concrete highrise. It is in the process of being developed. Presales have been made. It’s on the shore of Lake Okanagan’s Lower Mission resort drive.

It was purpose-built for short-term rentals, distinct in every way from its zoning. So it’s got commercial zoning, its OCP designation, waterfront and hotel tourism–specific districts next to hotels — a hotel on each side of it. It has a private boat launch, state-of-the-art indoor boat club with crane-assisted rack storage and boat valet service, waterfront boardwalk with beach and waterfront restaurant, multiple swimming pools, spas, hot tubs, concierge, central air conditioning, yoga studio, golf simulator, fire pits and more hotel-style amenities.

To me and to anyone that would look at this, it’s clear that this is a resort community. This was built as a resort community. The people who have done the presales and purchased in here paid for something that they believed was legal and was within the OCP. Can the minister please explain to me and to the owners in Aqua resort why this would be considered under the short-term rental legislation?

[3:10 p.m.]

Hon. R. Kahlon: It sounds amazing, but your description, I think, has put it out of my price range. I can pretty much guarantee.

I would say that, first off, I would strongly disagree with the characterization from my friend across the way. At no point did I say it was incorrect or an oversight. From day one, we said that strata hotels would be able to continue to operate. But because of the complexity of strata hotels, given the complexity of the different economic models that all of them operate on, we wanted to have the time to bring that in. We said we would bring that in through regulation, and that’s exactly what we did.

I want to recognize the member for Parksville-Qual­icum because he also brought lots of different types of scenarios to us, which helped inform the policy.

To the specific property, the member knows that we’ve laid out clearly what is required for new strata hotels to be considered strata hotels. That’s laid out clearly. If the member doesn’t have the three different definitions of that, I can certainly share that with the member. Anyone that wants to come into this space needs to ensure that they’ve got that.

If they’ve got a concierge, that’s one important step. One of the items is “staffed at the front desk.” It sounds like they’ve got that.

One or more employees or contractors that provide housekeeping services for overnight accommodation. It sounds, from the description…. You had me sold. It does sound like that’s there.

A platform providing platform services available exclusively for the owners offering short-term rentals of the property. Those are important pieces that they have to have in order to be considered a strata hotel.

K. Kirkpatrick: Thank you to the minister.

Can I clarify that the significant difference between whether this is ex­empted from the legislation or not would be whether there is one central management company that is managing the short-term rentals, as opposed to individual owners who are managing those rentals on their own?

Hon. R. Kahlon: I’ll read this into the record. “Before December 8, 2023, accommodation was provided in a manner similar to the hotel and motel — a staffed front desk on site, one or more contractors that provide housekeeping services for the overnight accommodation, a platform providing platform services available exclusively for the use of owners offering short-term rentals of the property.”

These are the elements that have to be in place for anything that’s coming in the future.

K. Kirkpatrick: Thank you to the minister.

Can I clarify, then, that the property had to be operating prior to December 28, 2023? That is my understanding of what the minister has just said.

[3:15 p.m.]

Hon. R. Kahlon: I wanted to make sure I had the right language here. I think it’s important to note that this is all on the website already, available to the public. If the member would like it to be in writing, I can get that in writing for the member as well.

The following services have to be provided that are similar to a hotel or motel. They have to have a staffed front desk on site. One or more employees or contrac­tors are providing housekeeping services. Overnight accommodation, a dedicated online reservation platform and the strata lot and the property are not able to be used as a principal residence by anyone due to legal use restriction, including zoning, rental management agreement between a manager and an owner of a strata lot, and then a restrictive covenant or a covenant under section 219 of the Land Title Act.

K. Kirkpatrick: Thank you to the minister. That opens up some opportunities, maybe, here.

If I could clarify. I didn’t understand when I heard…. Maybe I didn’t hear that date, and I heard something else. But the date of May 28, 2023 — was that something in there as a requirement for something to have been operating already, or did I take that out of context?

Hon. R. Kahlon: The description I’ve laid out is going forward. The description that I’ve laid out is for strata hotels that want to come online in the future. They have to have those requirements they must follow. Again, I can get this in writing for the member. The information is on the website for everyone right now.

K. Kirkpatrick: I was just confused about that date, so I’ll look on the website to find the date.

My concern here is that we’ve got a building that isn’t operating yet. It’s still under construction. I would like to read a paragraph to the minister. This is from a real estate development professional who is in Kelowna: “I am not aware of any similar punitive change to a development, completed or under construction, in the history of the province of British Columbia where the intended use for a purpose-built, OCP-designated, neighbourhood-planned, zoning-applicable project has been stripped of its permissible use rights without grandfathering or compensation.”

[3:20 p.m.]

Now, when this legislation was being drafted, can I under­stand, please, from the minister why, at the very least, those units who were legally operating designated short-term rentals were not grandfathered?

Hon. R. Kahlon: The information we’ve laid out on the website makes it clear, for these proponents, what they need to do to ensure they can operate like a strata hotel. Certainly, the member verified two of the three things in the description of the amazingness of this new property.

The third is that it seems reasonable for them, as a site that wants to operate as a strata hotel, to follow, so we made the information available for them. I appreciate it. It may mean that some units may not be as easily sold by this salesperson. That could come as a challenge; I appreciate that.

We wanted to make sure that the rules were clear, in that people that were coming forward in the future would know how they could operate in a strata hotel. It does mean they can. It just may mean they perhaps won’t be able to sell the units as expensively as they wanted, or maybe they have a smaller pool of people that are interested in buying.

Those things I can’t control, but I can control the fact that this is important work that we did, in partnership with a lot of folks, to make sure that strata hotels that are operating like hotels can continue to do that and that those that want to come in the future can operate this way as well.

K. Kirkpatrick: Thank you to the minister.

This is cold comfort for a lot of people, people who are owners in the Janion, for example. I’m still really struggling with how we can look at a building like the Janion…. It is sold as strata units, zoned specifically as tourism short-term rental, legally operating commercial licences, owned by those individual strata owners. Why are we making this distinction, between the Janion and what the minister is now describing as strata hotels, in the ability to operate?

I don’t understand why the good people who own in a building like the Janion — who were operating legally, who purchased on the absolute understanding that it was zoned appropriately, and who were following the rules, without any expectation that these types of short-term rentals would be caught up in Bill 35 — had the rug pulled out from under them.

Hon. R. Kahlon: This is a conversation we’ve had at great lengths. Again, I’ll say that I appreciate that investors have bought homes and want to use them for short-term rentals. What we’re saying is that when you’re losing the percentage of homes towards short-term rentals, it’s putting a huge strain on families and people in our communities. People are not able to access housing. We’ve seen studies that show rents have gone up because of this.

We can spend the next four hours going on with this, but we’ve canvassed this multiple times. Those are housing units that we believe should be made available for people, either for long-term rental or, in some cases — if a person says, “I don’t want to be doing long-term rental” — then sold.

We have seen both. We have seen people sell the units. We have also seen that people say: “You know what? I’m just going to put it on the long-term market.”

This is the reason why we’re going in this direction. It’s a balanced approach that ensures that we can have short-term rentals available in communities to support tourism but also that we can prioritize these complete homes and make them available for people who are struggling for housing in our communities.

[3:25 p.m.]

K. Kirkpatrick: Thank you to the minister.

I feel that when I ask these questions and the minister says that we’ve canvassed this already, that is disingenuous. We have not even begun to have these conversations. Every time I ask a question about this, the minister dictates what to me sounds like a press release. That is the answer we get over and over.

The minister knows — I think this entire House knows, as I break into tears in here from time to time — that I take people’s issues, concerns and impacts to their lives very seriously. I would hope that the minister and this ministry would as well.

There are terrible consequences to people who have purchased these units. They are incorrectly painted with a brush, from the other side of the House, that these are evil investors. This government has destroyed people financially and emotionally because of Bill 35 applying to these units that it simply would not apply to. The minister can say over and over that this is needed for short-term housing. This is a limited number of units. These are not these investor-owned condos that were built for people to live in.

The people that are being impacted and hurt in these legal short-term rentals agree with the majority of Bill 35. They agree with it. They are saying: “Yes, we need to put some guardrails on here. We need to make sure that there are not…. Those units in condominiums that were meant for people to live in, to rent in and to buy — they should not have short-term rentals in them.”

That is not what this is. The minister is not hearing that. He’s not listening to people, and he is not reacting to the actual, real-life impacts to people. To say that we have canvassed this…. We have not even begun to canvass this. It’s important today, because tomorrow is May 1. This is going to have, and already has had, unbelievably negative impact on British Columbians.

I would just like to…. If the Chair will indulge me for a moment, I have got a couple of quotes and some information on the people and their families that have invested in the Janion and these other legally operating short-term-rental buildings.

Here’s one headed “Pension plan gone wrong”: “I have been in a state of shock and under extreme stress since the announcement of this legislation. My financial well-being has just evaporated. Sixteen years ago my partner and I, professional musicians with two young children, realized we needed to get serious about our financial planning in order to make sure we could provide for ourselves and never be a burden to our children, while we were able to pursue our musical careers.”

Now I will jump to the end, but after they have lived frugally — never going out to restaurants, never getting babysitters, never having a new car — they were able to come up with a down payment to make an investment in a hotel-zoned condo in Victoria. This ends with: “I’m now 62, still self-employed, having pivoted career-wise a few times to pay the bills. I am very tired of the years of hustling and working extremely long hours. I was planning to retire in three years, but now I can’t.”

That is the evil investor that this government is going after, but that is only one.

A young family with a new baby:

“You mischaracterize who short-term-rental owners are. We’re not wealthy people from out of town. We’re not corporations. I’m from greater Victoria, born in ’86, starting out in elementary school in Sidney, working hard. I have a Hungarian grandfather who left Romania in the ’50s when his property was expropriated.

“Please understand that most short-term-rental owners have been messaging you that they believe in 95 percent of Bill 35. I’m sending you a photo of my family. We’re not privileged out-of-town investor speculators that you imagine. We are collateral damage to this legislation.”

I’m going to just do one more here, a senior with a disability. This is part of a transcript from a call.

“I apologize. I own in the Astoria, but I’m legally blind, so it’s hard for me to participate in this call. This situation shouldn’t have anything to do with Airbnbs. This is strictly about the provincial government breaking a law that has been in place since my parents were children in Vancouver.

[3:30 p.m.]

“The government told us we could do things the right way, the legal way, to have vacation rentals. It was expensive for us to do this, expensive to buy into these buildings, costly for our taxes, but we are not lawbreakers. We did what the government told us was the proper thing to do. Many seniors, like ourselves, will be facing bankruptcy, as we have to sell at a loss. If we’re lucky, we’ll be left with a few dollars in the bank.”

[J. Tegart in the chair.]

So when this minister says that all of these investors are taking these suites out of the market, I would like him to please speak directly to the people that I have just read this from, to the other people who have been financially devastated by Bill 35, so unfairly pushed on people without consultation, without the ability to grandfather and without any heart from this government hearing and understanding what you have done to British Columbians.

Hon. R. Kahlon: I’ll say a couple things here.

We have canvassed this at great lengths. The member may feel like we need to do more, and that’s okay. This is the member’s time. I have no problem talking about this further.

I think what the member doesn’t often talk about in this place is the people in our communities who are struggling for that housing, who need that housing. We’re not saying to these folks that you have to sell. We’re saying: “You can rent it. You can rent it in the market.” In fact, the majority of the sales that have happened in these buildings have been sold at a profit — some, considerable profits. That’s for those who sell it. I know many folks that are actually renting these buildings.

What we’re saying is we need housing for long-term renters in our communities. I appreciate these are challenging topics to discuss. But I have to say to the member that we are seeing record numbers of investors buying homes and then putting them into the short-term rental space while we have families who are struggling in our communities.

Now, the member talked about Victoria. I grew up in this town, born and raised here. My dad was involved in the tourism community when he was alive. Drove a taxi. My mom owned a restaurant in town. I understand tourism is important in this community. I get it. Grew up here.

But when I have friends I grew up with who can’t live in our community anymore and can’t raise their kids in our communities because we’re losing more and more housing stock towards people wanting to buy investment properties for short-term rentals, it puts a real strain on our community. I appreciate the member is passionate about it. I’m passionate from a different perspective, which is the people who really need to access this housing.

The member read some stories. I’ve got stories of people who, now, have actually got into housing that were short-term rentals. A woman in Vancouver reached out to me, who now not only has a home for her family but is running a daycare out of it. We have so many examples of people who are like: “We actually have access to housing now, which we didn’t have access to.”

Our goal with this is to ensure that we have housing available for people, housing units that were meant for housing available for people. And when they’re operating like strata hotels, then they’re able to do that. That’s the differentiation that we made with this legislation.

K. Kirkpatrick: Thank you to the minister.

The minister said that housing that was meant for housing is being used for housing. The point of what I was saying is that these were never meant for housing. These were never built for housing. They were built…. And the minister knows this.

To tell us that these people have actually been able to sell for a profit…. We know that the market value of those strata hotels, although, that’s not how you refer to them…. Those strata-specific buildings for short-term rentals…. Their market value dropped 30 percent overnight with no warning for those people. So other than the Premier of British Columbia actually being able to make a profit from selling a short-term rental unit, other British Columbians have not.

The minister talks about families who are struggling financially. You have created 600 families who are now struggling financially with this bill. The minister is not hearing me and is comparing apples to oranges. The woman who has found a place in Vancouver where she can now have a child care facility — fabulous. That doesn’t sound to me like it was a 250-square-foot, purpose-built, short-term rental that she has moved into.

[3:35 p.m.]

I would ask that the minister continue or begin to give consideration for, at the least, providing grandfathering for these people.

I understand — and I know it’s before the courts, so the minister will not speak about this — there is a group of people who have found themselves in this position where they are being devastated and have now brought a lawsuit forward to the province of British Columbia, asking for this to be paused and ultimately asking for compensation. That’s what this government has done.

Are we…? Okay. Well, I can move on to a whole other section. Or it looks like you need to read something.

Hon. R. Kahlon: I’ll just reply. The member knows that I can’t talk about anything that’s in front of the courts. One case was brought forward, and it was thrown out. There’s one in front of the courts right now, and I can’t comment on that.

Now, hon. Chair, I move that the committee rise, report progress and ask leave to sit again.

Motion approved.

The committee rose at 3:36 p.m.

The House resumed; the Speaker in the chair.

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

Report and
Third Reading of Bills

BILL 20 — FIRST NATIONS MANDATED
POST-SECONDARY INSTITUTES ACT

Bill 20, First Nations Mandated Post-Secondary Institutes Act, reported complete without amendment, read a third time and passed.

Hon. R. Kahlon: In the main chamber, I call Committee of Supply for Ministry of Housing.

In the Douglas Fir Committee Room, I call Committee of the Whole for Bill 22, Safe Access to Schools Act.

Committee of Supply

ESTIMATES: MINISTRY OF HOUSING

(continued)

The House in Committee of Supply (Section B); J. Tegart in the chair.

The committee met at 3:38 p.m.

The Chair: I’ll call the committee to order.

On Vote 33: ministry operations, $1,033,255,000 (continued).

K. Kirkpatrick: I’m going to move on from Bill 35, because my blood pressure is hard to manage. I am going to ask a final…. This is a favour — actually not a favour but a question to the minister.

If I can have somebody from the Aqua resort in Kelowna reach out to somebody in the ministry…. I understand the information is on the website. I think there are some unique issues with respect to this particular project. If I might ask that you can, perhaps later, provide me with a contact, and we can have these folks connect, because maybe there is a solution that we can find for them, which I think everybody would be better off with.

Hon. R. Kahlon: Yes, certainly. Right after we rise today, we’ll get you information and then make that contact.

K. Kirkpatrick: Thank you very much to the minister.

I’m going to ask some questions now with respect to the seniors advocate, seniors housing and SAFER. We know, according to the seniors advocates, that seniors are being left behind in British Columbia. Housing is unaffordable for them. They’re being impacted even more than general British Columbians.

[3:40 p.m.]

Wait-lists have grown, and SAFER isn’t reflecting the cost of living. Even with the increase of $110 per month which was recently provided, it just simply isn’t enough in order to be able to help seniors truly live with dignity and live safely.

Questions with respect to this. When will the minister share the outcome of the NDP’s review of the SAFER program?

Hon. R. Kahlon: I think the announcement was well received, but there’s always more that needs to be done. I can share with the member the changes.

We increased the income limit for eligibility for SAFER from $33,000 to $37,240. So more seniors are now eligible. We increased the minimum benefit from $25 to $50 a month or $600 a year. We established the ability to revise the rent ceiling annually. Obviously, we’ve also, as part of it, launched a public awareness campaign so people are aware that this financial support is available to them.

This is what was highlighted to us as an important step. I appreciate the member’s point that more is always needed to support our seniors.

K. Kirkpatrick: Thank you to the minister.

Rents have gone up $500 a month, at least, for most of these seniors. In doing an analysis of what was required, and I appreciate the minister has said that there have been changes, why is the SAFER subsidy increase only a fifth of that in the long term?

Hon. R. Kahlon: I appreciate the member’s point. We can always do more to support seniors.

What we’re saying here is…. These changes are significant. We made a significant increase to this program in 2018. We increased the budget by 48 percent. Now we’re taking another step to advance this, not only to ensure that seniors that currently are in the system get supports.

That number the member refers to is an average. Those that have lower incomes get more, and of course, those that have higher incomes get a little bit less. But it does make a significant impact. Not only that, we’re also including…. Just under 5,000 more people that didn’t get access to supports before are getting access to this.

We’re going to continue to monitor this as we go forward, continue to meet with the seniors advocate and continue to also build more affordable housing that’s accessible to seniors. We know that’s needed in conjunction with these dollars.

K. Kirkpatrick: Will that one-time payment of $430 through SAFER result in a CRA 2500 slip being issued and having seniors benefits clawed back through other programs like the GST tax credit?

[3:45 p.m.]

Hon. R. Kahlon: Our understanding is no. We always preface that with…. People need to get their own tax ad­vice and should reach out to a professional to get that advice from them.

K. Kirkpatrick: Thank you to the minister.

Reach out to get tax advice. I’m not sure if the minister appreciates who we’re actually speaking with now. Senior citizens, who are on very small incomes, are not going to be reaching out to their tax professionals to get information on this.

Would receiving a SAFER boost reduce eligibility for carbon tax rebates? Government has the ability to make these determinations.

Hon. R. Kahlon: The member is taking me into the Ministry of Finance unwillingly. This is something the Minister of Finance is better situated to answer.

K. Kirkpatrick: It must be nice to be able to say that. “You’ll have to ask somebody else. Even though it’s related to my ministry, you’ll have to ask somebody else.” Okay.

With only 20,000 of the originally targeted 45,000 seniors in the service plan receiving SAFER benefits, can the minister explain the math behind this shortfall, or is this another example of creative accounting?

Hon. R. Kahlon: I think it’s important to remind the member we’re in the estimates for the Ministry of Housing. If there are items that are not in the Ministry of Housing, I have no choice but to refer the member to that. I think the member knows that.

I appreciate that this is an opportunity to try to get digs in. We’re just trying to give answers for things that are within our estimates. If you’re asking about carbon tax, that is something that is done by a different ministry.

Now, the member referred to something. If she can point us to what exactly is referred to in the documents, it would be easier for us to answer the question.

K. Kirkpatrick: I believe that’s 45,000 seniors — this is in the ministry’s service plan — being targeted for the SAFER benefits, whereas only 20,000 have received them.

[3:50 p.m.]

Hon. R. Kahlon: I’ve got in front of me the B.C. Housing service plan. It says for ’23-24, 30,000; for ’24-25, 35,000; for ’25-26, 36,000; and for ’26-27, 38,000. I’m not sure where the member’s number is coming from.

K. Kirkpatrick: Thank you to the minister, and I will have to validate where that number came from and pro­vide that back to you.

I’m going to move on now from questions that I believe will be sent to the Minister of Finance and focus specifically on seniors issues that fall into the Ministry of Housing.

Does the minister believe it is acceptable for seniors to be on wait-lists of over five years for housing?

Hon. R. Kahlon: I think it’s unacceptable that for two decades, we had governments that didn’t want to invest in affordable housing. They decided that they were going to just leave it to the private forces to figure out and that it would just all work out. It’s an unfortunate situation that we’re in. We’re so far behind on investing in affordable housing that we’re trying to make up for lost time.

So yes, every day we get up in our ministry, and we try to figure out how we can get more housing built through affordable housing or not. I can share lots of examples of affordable housing units that we’ve just opened because of our investments and a lot more that are coming through recent CHF announcements.

K. Kirkpatrick: Thank you to the minister.

At some point, I feel I should ask the question as to when the minister will stop blaming policies from previous governments for the inability to actually deal with issues and address issues today. The minister does tend to start many of the answers to my questions with the blame game of almost a decade ago or 20 years ago, even, sometimes.

The question that I asked is: is it acceptable for seniors to be on wait-lists for over five years? Can the minister explain specifically what is being done to target that wait-list for seniors to help make sure that they can get into safe and affordable housing sooner?

Hon. R. Kahlon: I appreciate the member gets sensitive when I talk about the lack of investments in affordable housing over the last two decades, but it’s a fact. The member attends not-for-profit association round tables, attends many events. This is well understood.

It’s always a challenge to say, “How come there’s no affordable housing available for seniors who are on wait-lists?” and then at the same time say, “Well, when we were in government, we didn’t build it.” I have to highlight that point.

[3:55 p.m.]

Now, when it comes to seniors housing, I can tell you that the way you get at it is building it.

In kʷikʷəƛ̓əm, 14 new affordable homes just opened up for First Nations Elders.

In Kaslo, ten opened up for seniors in the community.

In Kelowna, 68 rentals for seniors and people with low and moderate incomes.

In Merritt, 75 new affordable rental apartments for families and seniors.

In Mission, 61 just opened up.

In Nanaimo, 53 just opened up. Another project in Nanaimo, 62. Another project in Nanaimo, 74 units.

I’ve got pages and pages of the units that are opening up from the investments that we’ve directly made since we’ve formed government, and there’s much more to come. In fact, it’s well recognized across Canada that we are investing the most in affordable housing, per capita, from any province in the country. We have the most amount of new units coming online.

We appreciate that there’s much more that needs to be done. We have much more work to do. We are starting at a deficit. All the work we’re doing in our ministry and B.C. Housing is to try to ensure that there’s housing available for people in our communities.

K. Kirkpatrick: Thank you to the minister. I’ll remind the minister that when he references the last two decades, this NDP government has been here for almost one of those decades at this point.

A question. When we’re talking about the five-year waiting list for seniors housing…. Can the minister confirm, actually, what that waiting list is right now for seniors housing and what that was five years ago for seniors housing?

Hon. R. Kahlon: First off, I think it’s important to say that this is a registry for people that need housing. People are placed by need. The teams try to assess who has the greatest needs. We try to get them into the housing as it opens up.

The member asked a pretty detailed question. The team at B.C. Housing is going to try to get that number. We can continue to have conversations, and I’ll put it on the record once I have it.

K. Kirkpatrick: Thank you to the minister. I appreciate that.

Does the minister plan to address what we see as a drastic underutilization of the SAFER program by seniors in rural communities?

[4:00 p.m.]

Hon. R. Kahlon: A couple of things. One, I said earlier, when we announced the additional expansion of the program, that part of the initiatives will be around public awareness, making sure people are aware that this is available to them. That’s important. We also share that information with the seniors advocate. They’ve got regional groups. They’ve got advocates in communities throughout the province. So using those agencies to try to ensure that everyone is aware that they have access to this funding, if they qualify within the brackets of what the program has.

K. Kirkpatrick: Thank you to the minister for that.

A couple questions I’m going to move on to with respect to the upzoning, be it Bill 44, the transit-oriented development. We recently met with a group that, I believe, has been in touch with the ministry called the Tri-Cities Urban Forest Working Group. They’ve raised significant concerns about the loss of urban green space due to the mass upzoning.

Enhancing urban density should be balanced with green infrastructure planning to prevent future heat domes. When you look at the information that they provided us with — and they map it against the heat domes and where the majority of the fatalities and health issues took place — those areas with strong tree canopies were actually the safest place for people to have been.

The concern is that while we aim to create new homes, which we need to do, the legislation seems to lack measures to ensure environmental protections, and this simply raises concerns about sustainable development amidst the climate crisis.

A couple of questions on this: how does the government plan to balance the increased housing density mandated by the need to preserve and expand urban forest cover, especially in light of the exacerbating effects of reduced greenery and urban heat islands?

[4:05 p.m.]

Hon. R. Kahlon: Sorry, we’re just changing staff over.

Staff have just shared with me that they actually met with urban tree canopy groups today, in fact, and it was a good conversation. We shared with them similar answers that I’ve shared here in this place already, which is that we know that green space is incredibly important for communities’ health and for climate resiliency. Part of the work that local governments are doing right now is planning for parks, planning for green spaces.

Of course, we know at the same time that as we increase housing supply, which we desperately need to, doing it in existing developed urban areas is critical to preserving green space overall. So build housing where we’ve already said we’re going to build housing will protect green spaces in other areas.

We did canvass this when the bill was in front of the House here, and we continue to meet with those advocacy groups on this topic.

K. Kirkpatrick: Thank you to the minister. I am glad to hear that the minister has met with this group.

There are a number of communities and organizations that have similar concerns, so there are a few threads that come out of that. I’m going to anticipate the minister’s answer on this, but I will give him the benefit of the doubt that it might be different than it always is.

I recently had a tour around Brentwood. There’s a community group there. I know that their local MLA came and toured around and took a look at their community. I’m not sure if the minister has been in contact with them. I think it’s representative of some challenges and concerns that many communities have.

Burnaby, I think, is again punching above its weight in terms of densification. If you look at the amazing Brentwood Mall and all of the development around there, it’s significant. It’s had significant impact on the community and has been a great provider of additional housing for people within Burnaby.

But if you look at that 400-metre…. You draw that circle around the transit there, and you come across a single-family community with people living in houses built there in 1965. There’s been very little redevelopment in the community. These houses are 900 to 1,200 square feet. They are very modest. It’s a very family-friendly community. The majority of the homes already have secondary suites in them.

There is a concern about livability. I think just having one-size-fits-all legislation, where you’ve got your 400-​metre circle drawn around the SkyTrain station there, can have serious consequences on the livability in communities. And this community is very concerned.

When I have spoken to a number of planners — and I can assure the minister, and he’s probably not surprised, I have been speaking to many planning departments in municipalities around British Columbia — there are a lot of concerns. The one that is not getting spoken about maybe as much, or highlighted as much, is the concern about livability: ground-floor living for people with mobility issues; the fact that it’s much healthier for children to be able to have access to the outside from ground floor.

Then there are communities, like Brentwood and other ones, who really have a character that I think we need to be aware of.

[4:10 p.m.]

We can’t get rid of all of these small, older, single-family communities where we can actually point to other pieces of property and other government-owned property and other places where it makes much more sense to have that density.

In my long ramble, the question really is: can the minister explain to the people in the Brentwood area why they would be included in this 400-metre, transit-oriented development without consideration for the livability and the existing community?

Hon. R. Kahlon: My colleague from Burnaby North has spoken to me about this. We all agree that the livability is important. We talked about ACCs, amenity cost charges, and what that means, what those amenities mean for the community, whether it’s park space or whether it’s community centres, etc., and why it’s important. I think small-scale multi-units help also in communities to build that type of housing.

I think it’s important to note that B.C. United, the B.C. Greens, supported the transit-oriented development legislation with the understanding that we need to build more housing near the billions of dollars that we invest in transit, and understanding that, as our communities grow, people want to live closer to transit because it makes it easier for them. Sometimes people don’t need the cars because they’re able to just commute on transit. So that is a good place to have housing.

I mean, that similar argument can be made pretty much anywhere where there’s transit. I think what’s important for us is: how do we want our communities to grow? Where do we want that housing to be? I think we can all agree that if there’s a place where we should have housing, it’s near transit. That actually enhances the livability of communities.

Now, it’s important to know, for Burnaby…. In Burnaby, the towers they approve are significantly higher than anything that’s in the transit-oriented development policies. Local governments have the ability to go ahead and do that. What we’re saying is we want to see density of housing near transit because we believe that leads to healthier communities, a healthier province.

Burnaby, of course, can go and do much more, which they are in their community.

K. Kirkpatrick: Thank you to the minister. That was the answer I was anticipating.

It is density regardless of impact on community and on livability. That’s what I’m hearing. The minister himself said that Burnaby has gone above and beyond with the work that they’ve done and the towers that they’ve put around the amazing Brentwood Mall. That is the actual name of it, which is why I’m calling it that.

Can there not be consideration given to the fact that there is more density within that 400-metre area than is required? Can we not have some flexibility that communities can have to make rational decisions about what makes sense in a community?

Yes, absolutely, B.C. United supports transit-oriented development. It was part of our housing platform long ago. It’s been something that we’ve been fans of. It makes sense. Everything the minister said with respect to the value of having housing densified around transit zones makes complete sense.

Applying it with a heavy hand without the consideration for the impact on communities feels shortsighted. Yes, we are not going to be living in a single-family world anymore, single-family-lot world anymore, and I understand that.

We also do have to have different types of communities, and we have to value history in certain areas. There are other ways to increase density. In a community like this, fourplexes might make sense. That can be done through a secondary suite and coach houses. I mean, there are different ways for gentle densification rather than to kind of shock a community into having single-family homes and huge highrises in the same community. It’s not good urban planning. It’s not good for the health of the community.

[4:15 p.m.]

An issue that will also occur is you’re going to have conflict in communities. Rather than creating a cohesive community where people can say, “Yeah, I can get on board with this. I’m happy to have these other neighbours in my community and the coach houses,” this is going to cause a lot of stress to people. It’s going to cause the fabric of communities to really be torn.

As I will always say — and I’m constantly misquoted, regardless — we agree that we have to upzone. We agree in the spirit of what is being done, but God help us, can we please have some flexibility and be rational about how we’re applying this legislation?

Hon. R. Kahlon: As I said previously, three major parties in this place supported this transit-oriented development legislation. The Leader of the Opposition has spoken at great lengths about why housing should happen around transit. In fact, other housing was opposed by the opposition, but this one was supported.

I appreciate the member is trying to have the cake and eat it too, to say, “We support transit-oriented development, support this, and we need to do it,” at the same time as saying: “Oh, maybe we shouldn’t do it.” It would be great to hear where the clear position on that is.

The member did talk about history and heritage, and the member knows that there are protections in place for that. There are communities where there’s transit, but there are heritage sites. All those things were built into the legislation. I think it’s important to note that transit-oriented development has been happening over time.

In fact, I was just talking to someone at a not-for-profit who was telling us about how they were landing into Vancouver. They could see the SkyTrain route and see where the housing was being built, by being able to tell where the SkyTrain was and the stations were. That is actually best practice. If you look at planning across the globe and you see housing, when it comes to transit, the best practice is to have housing close to transit.

That’s what we’ve done. We’ve taken best practice and brought this forward, because we know that this is a good place to have housing. It’s going to happen gradually. It’s not going to happen instantly.

People think there are going to be towers everywhere. It’s not going to happen that way. Transit-oriented development happens gradually, but it’s important that we move in that direction so that we have more sustainable growth. We get best use of our infrastructure, and it creates more livable communities for everybody in our communities.

K. Kirkpatrick: That is what I had anticipated, and I just would like to clarify again, because it seems to be an art form on the other side of the House to be able to kind of flip what I said and make it sound like something else.

B.C. United supported transit-oriented development. The majority of how that’s going to work is within regulations. Regulations — you know, how this is working and the details of this — were not put in front of the House. It needs to be done in a rational way.

When the minister talks about transit-oriented development, yes, that is how we should be developing, but there’s also a difference between new development and when you’re going into a community where you have existing development.

The example I’m giving with Brentwood is that that’s an existing community. If you were an urban planner and you were starting with a blank slate, you’re going to say: “Okay, well, we’re going to put transit in here. These are new communities. We’re going to start to build out this way.” But you’re dealing with people who already exist, homes that already exist and communities that already exist. It has to be more sensitive to that.

This government likes to point to anybody who has a single-family home…. I believe most people appreciate they’re very fortunate to have a single-family home. There are many renters that have a single-family home. They’re not bad people because they have this. There need to be different kinds of housing stock, and there needs to be a sensitivity to how we are implementing. This is a really big hammer that is being used.

[4:20 p.m.]

We have to give some voice to the communities. Brentwood is a community where they already had done a lot of work to put restrictive covenants on those lots so that even the homes that are coming in are limited in their size, because they didn’t want a community that was full of big monster homes.

They wanted a community that was more true to the 1960s and those homes that were originally built. They don’t want a bunch of redevelopment, but not for the wrong reasons. It’s not because they don’t want people coming into the community, but because that community has a flavour and style.

It’s hard. I wish I could articulate this in a way that really frames the concerns that people in communities are having: that urban planning needs to look at livability. It needs to look at where the density make the most sense. You can say: “Yes, it makes sense to be around transit-oriented development.” We agree, but there also has to be a reasonable application that has some sensitivity to the way that that community was originally developed.

A question — not to this, we’ll move on — is…. Actually, I will ask. This is related to all of the upzoning. Let’s say that a municipality has an application for a fourplex on a single-family lot, that it’s the appropriate size under this legislation and that the fourplex should be allowed, but the fourplex’s upzoning is denied by the municipality for concerns that it’s too close to a school field, that there’s some issue with trees, or whatever the issue is.

Who is going to be the arbiter of why a municipality can turn down an upzoning application? I understand that government can come in, and they can just approve it if the municipality hasn’t approved it. Who’s the arbiter? What is that mechanism for overriding the decision of a municipality?

Hon. R. Kahlon: I wanted to correct a couple of things.

I don’t recall…. The member can let me know if she’s ever heard me call people who live in single-family homes bad people. I don’t recall anyone on our side of the House ever saying a person who owns a single-family home is a bad person. I want to clarify that on the record.

When we brought the transit-oriented development legislation forward, we said this was what we were expecting within 200 metres, 400 metres, 800 metres, and we had support from all the parties in this place. I want to make sure those two things are on the record.

Now, we’ve switched to the small-scale multi-unit, and I’ll just say that local governments are required to pre-zone the three or four units in their communities. That is expected in June. So it will be clear for people as to what they are able to do on their parcel of land and what they’re not able to do.

K. Kirkpatrick: Forgive me where I’m not understanding this. That was probably not the best example to give.

In an example where a developer, say, wants to upzone to put in whatever the development is that they want to put in, and it fits in with Bill 44, on what basis can a municipality turn down an application?

If I’m understanding this, and the minister can tell me if I’m not understanding this, I believe that the province has the ability to come in and override a decision that the planning department in a municipality has made. Under what circumstances would they be able to override that? Am I correct that they can override that decision?

Hon. R. Kahlon: I’ll just clarify for the member. It’s not a one-by-one case. It’s not going to be like one proponent comes forward with one home and then the province is overriding it. This is around communities doing their zoning planning as one community.

[4:25 p.m.]

We’re not going to be going in one by one. We’re asking communities, by June, to update their zoning bylaws to reflect our legislation and the site standards document. That’s what we’re expecting.

It won’t be us going one by one, overriding across the province. That would be, I think, difficult for anybody that wanted to do that.

K. Kirkpatrick: Targets. I know I asked about targets last week because, of course, it was fresh on the target being introduced to the city of North Vancouver.

Can the minister describe how targets work and interact with Bill 44? I understand that the targets provide different types of housing in terms of what’s affordable, what’s family, what’s not. If I’m incorrect in what those targets set out, the minister can correct me.

How is that not something that should have been addressed by Bill 44? It seems there are a lot of competing requirements for communities, and the targets are just one more layer of something that their planning department has to worry about.

Hon. R. Kahlon: Bill 44 and the targets actually go together. We don’t see them competing. One enables the other one to be done in a more efficient way. I’m not sure where the member is going with it, but we just don’t see them as two competing things. We see them as two things that go together.

K. Kirkpatrick: Thank you to the minister. I’m going to change channels for a few minutes here.

I would like to ask about a specific affordable housing project, the Mission affordable housing project, which was denied funding by this government. The decision to deny this has sparked some criticism from local council members and the project developer.

A question to the Minister of Housing. I don’t know if he needs more information about the specifics. I believe the minister would understand what the specific Mission affordable housing project was. Given the provincial em­phasis on affordable housing, why was the funding application for the Mission affordable housing tower rejected, especially when the project aligns closely with government’s objectives?

Hon. R. Kahlon: We shared this through our MLAs and publicly as well that this project in particular was being built without any government funding. In fact, it was almost complete, and the proponent wanted us to buy that from them. Now, as you can imagine, there are a lot of projects that would just say: “Hey, we’re going to build it. We’re just going to sell it to you, and we’ll try to make some money from it.”

We have to do assessments, just like we do everything else, assessments on affordability of the units compared to what we buy, look at the operating of it. How will we operate that in an efficient way for the partner that will be operating it?

It’s got to go through the same criteria, so we’re not picking and choosing projects. Certainly, I’m not picking and choosing projects at all. It goes through the same criteria as every single other community housing fund project. The assessment is done through B.C. Housing. They share with me the successful proponents. And then we follow up with proponents that weren’t successful if that’s of interest to them.

K. Kirkpatrick: I’m actually going to ask the Chair’s indulgence in a five-minute break.

The Chair: We’ll take a five-minute recess.

The committee recessed from 4:30 p.m. to 4:37 p.m.

[J. Tegart in the chair.]

The Chair: I call the committee back to order.

K. Kirkpatrick: We’re wrapping up here. I’ve just got a couple more housekeeping kind of questions.

For the minister. Government recently announced an increase in the exemption for first-time homebuyers from $500,000 to $835,000. I just wanted to clarify with the minister that, although the exemption has moved from houses that are $500,000 to houses that are $835,000, the exemption is still only on the first $500,000 of the first-time-buyers exemption.

Hon. R. Kahlon: The member asked a specific question. It is Ministry of Finance. I know the member is going to say it’s Housing, but it’s a tax measure, so it’s Ministry of Finance.

[4:40 p.m.]

I can get the member the answer from the Ministry of Finance, in writing. Or the Minister of Finance is in estimates for the next two days, probably until Thursday, so this question can be raised there as well.

K. Kirkpatrick: Thank you to the minister.

I have to assume that the Minister of Finance doesn’t wake up in the morning and go, “I have a great idea for housing,” and come up with that without consultation with the Ministry of Housing. But I guess I will see if I can ask that question directly to the minister.

Here’s a new question, because things are changing quickly out in the world right now. Are tent cities going to continue to qualify as lawful residences for the purpose of the decriminalization revision introduced on Friday?

Hon. R. Kahlon: We’re not consulted on tax measures.

K. Kirkpatrick: That’s really concerning.

Hon. R. Kahlon: Yeah, well, information is always made available through Ministry of Housing, but they don’t inform us of tax measures. This is, I think, the history of all Finance Ministers and every budget as far back as I’m aware of. But that being said, I’m supportive of the measure. I think it’s a good measure to help first-time home buyers.

Now, the member has asked a question. I don’t support or agree with the characterization or the framing of the question. We have seen, coming out of the pandemic, multiple things. We’ve seen people being displaced. We’ve seen mental health challenges. We’ve seen a significant increase in population in Canada, but in British Columbia in particular. The amount of housing has not kept up to that pace.

When there’s a limited housing availability…. What that means is those with means have access to the housing, and it pushes everybody else further into challenging situations. That has led to challenges of homelessness in some communities.

This is not a B.C. thing. This is North America–wide. Every community is dealing with it. You know, meeting with communities through PNWER…. If you look at Seattle; Portland; California; Austin, Texas; New York — everywhere, this is a challenge communities are dealing with.

What we’re doing is taking action to address that. That’s what I was doing with the MOU with the city of Abbotsford on Friday, 221 units. We announced shelter spaces. We announced opening of supportive housing, affordable housing. That’s what we’re doing with the city of Nanaimo, with our MOU there. We just opened up a brand-new supportive housing site.

We’ve got other projects that are in the works, but we’ve committed significant dollars to scale up the capacity so people can get indoors. That’s what I met with Prince George councillors this morning about. We’ve got an encampment there of 30-something, I think 36, people. We’ve got 100 units right now that are coming online. I would say by the end of summer, we’ll have all 100 open. So that means we can get people indoors and not have them in encampments.

Similar discussions in Kamloops, similar discussions, of course, in Vancouver — I’ve shared with the member — around Crab Park, where we had over 100 people at one point. We’ve been able to build the relationships and get people in. I think 16 people are remaining there.

Our team spends a lot of time on dealing with these issues community by community, trying to get housing options available so we can get people indoors.

K. Kirkpatrick: Thank you to the minister.

I would like to extend my appreciation to the minister and to the minister’s staff for the time. I am concluding my questions, and I will be passing it over to the member for Saanich North and the Islands. But I would like to say I appreciate the time.

We don’t agree on certain things. I think we agree on the overriding vision of providing housing for people in British Columbia.

I would like to just leave with the request that this government be open to listening to the true stories of people who are being impacted by housing policy and that one-size-fits-all, or one paintbrush. There are many unique circumstances and issues that should be considered.

And then one final thing is: Go Canucks!

[4:45 p.m.]

Hon. R. Kahlon: I have to note, for the record, the strategic timing of this ending and the “Go Canucks!”

I just want to say that I really respect the member across the way. She comes at this work with all of her heart. Every exchange we’ve had has been a thoughtful one. I think it’s a real shame for that community not to have you as their representative. I want to thank you for the work you’ve done as my critic. You’ve made our team better in the work you’ve done. So thank you as well.

The Chair: Recognizing the House Leader of the Third Party.

A. Olsen: Okay. I agree with your comments, by the way.

I disagree with the comments from the member who spoke before me — or, at least, the hockey team. Anyway, we’ll leave that for another place.

Interjections.

A. Olsen: There have been articles written about it. Yeah. Go for it. Just google it.

Now back to the business here about housing, very im­portant business about housing.

The minister earlier talked about the tree canopy. I’m just wondering if there can be some clarity. This was in a question directed by the official opposition’s Housing critic just around green space being preserved elsewhere. The places where we’ve developed are where the housing is going to go.

While I recognize that densification need happen, there are actions that this government could take and that local governments do take or were able to take previously to be able to protect the urban tree canopy. In fact, there are many initiatives, as the member talked about, and residential neighbourhoods and community groups that work very hard to ensure that there is a tree canopy within their communities.

As we saw in the heat dome…. Indeed, that tree canopy was the only place that many residents were able to get refuge. We don’t have the standards within our building code that require air conditioning in every unit, as an example.

I’m just wondering if the minister can maybe respond to this. It seemed like there was a position taken…. The urban tree canopy is at threat. Basically, it was…. The effort is to preserve green space elsewhere.

I’m wondering if maybe the minister wants to reflect on whether or not there will be any measures put in place, from the densification project last fall, that protect the urban tree canopy in the areas that are already developed, if there are any measures to encourage development to happen adjacent to that tree canopy, etc.

[4:50 p.m.]

Hon. R. Kahlon: I had answered to my critic from the official opposition that the reason why the amenity cost charge is important, the tool, was that it would provide a means for local governments to be able to collect dollars to build parks and to build green space. So that’s what I was referring to in my answer to the member.

Now, there is flexibility in the small-scale, multi-unit legislation for local governments to make some adjustments, but it can’t be unreasonable. We know in some local governments, they want to protect a tree. They want to adjust the setbacks in order to have the housing being built. That flexibility is there, but it can’t be seen as unreasonable in the measures that they’re taking.

A. Olsen: I guess I want to draw the distinction and perhaps my colleague was wanting to draw the distinction between building new parks and planting new trees and the fully old trees, the actual cover that an old tree provides that a young tree won’t be able to provide for at least 60, 70, 80 years, in some cases. The clarity in this…. I appreciate the minister, I think, drawing more clarity in the response, that there is space for trees to be protected as long as it’s not unreasonable. I guess my fear is the default. The default is towards the housing being built on the property.

To what extent can local governments…? I guess a little bit more clarity on how the ministry will see unreasonable behaviour of local governments and just where that line is. I hope the minister accepts that the push here is to really understand, because this tree canopy is critical for the health and well-being of our communities.

[4:55 p.m.]

Hon. R. Kahlon: It’s important. The way the commun­ities go about the work they’re doing is through the site standards document. There’s a lot of attention paid to the site standards document. I can share with the member that we brought in a lot of experts in this space.

In fact, a gentleman, Mark Holland, who is…. He’s won awards. He was named B.C. Planner of the Year. He is a Queen Diamond Jubilee winner because of his work around sustainability and sustainable building. He’s from Vancouver Island University. We brought in professionals like that that helped us create the site standards document so we can address all the nuances that come with planning and ensuring that we have sustainable communities.

The site standards document is the guiding document that we’ve given to communities that has the flexibility in there for them to be able to make the decisions on the ground.

A. Olsen: I appreciate that. I thank the minister for the further information, as we’ve asked these questions. I think it’s important for community groups to understand there are built-in mechanisms that local governments can look at and utilize for a potential threat to the tree canopy.

I’m going to switch gears here a little bit just to real estate investors or real estate investment trusts and, specifically, with respect to what it is that the provincial government is doing to insulate ourselves and our housing from the huge investment power that real estate investment trusts have.

According to data released by the Bank of Canada, investors were responsible for 30 percent of home purchases in the first three months this year, up from 28 percent in the first quarter of last year and 22 percent in the same period of 2020. Investors also acquired 49 percent of condos that have been completed over the past five years. It’s nearly 50 percent, nearly half.

What is the ministry doing to combat investors, specifically the real estate investment trusts, from buying up market housing before first-time homebuyers are able to get their foot the door?

Hon. R. Kahlon: It’s a fantastic topic, an important topic. I’ll start with the rental protection fund. As the member will know, the rental protection fund has started to acquire purpose-built buildings.

In Langley, a few weeks ago, we purchased two purpose-built rental buildings from REITs. What was fascinating in that purchase by the rental protection fund was a conversation that some of the members from the rental protection fund and I were having with the CEO of this major REIT that flew in from Ontario for this. He made it clear that their interest was no longer going to be in buying older buildings in British Columbia.

Now, some would argue it’s because tenants, advocacy groups and others have made it really challenging for them to be able to do what some had been doing, where they were coming in, displacing people. I would also say that, perhaps, the rules that we’ve put in place to ensure that people just can’t be evicted anymore have made it more challenging for that model to work in British Columbia.

What was made clear to us at that point was that they were interested in British Columbia, but it was investing in new purpose-built rentals. So they were shifting their model in British Columbia to building more purpose-built rentals as opposed to getting into the space of older rental buildings.

I would say that better protections for tenants have discouraged that type of investment of buying older buildings, doing some minor fix-ups and displacing people. But also having an entity like the rental protection fund, which is able to go in and purchase these older buildings, has also helped us to be able to retain these units, protect the tenants but also grow the non-market space at the same time.

A. Olsen: I think the experience that we’re seeing, at least in parts of my riding, is that the real estate investment trusts are coming in. They are building new buildings, and they’re being celebrated. The rental units are being celebrated, but they’re also being marketed as luxury rentals.

[5:00 p.m.]

The challenges that have been raised by the Saanich Peninsula Chamber of Commerce, for an example, with respect to workforce housing: those units that are being built on the Saanich Peninsula are not being marketed to the workforce housing needs on the Saanich Peninsula. They’re being marketed to an out-of-province market or a luxury rental market.

We’ve got a scenario where…. It is true that they are also in the building of new buildings. They have bought up, as I pointed out, a huge number of units already and are starting to buy a huge number of condo units as well.

The Perspectives journal: “The fact that investors are buying up such a large share of recently built housing raises serious doubts about the extent to which policies focused on spurring market-rate housing supply can be expected to make that housing ‘attainable.’ In the absence of major policy changes, the evidence suggests much of this housing will ultimately be attained by wealthy Canadians trying to grow portfolios, rather than ordinary Canadians trying to buy a home” — or the real estate in­vestment trusts.

Are there any policy measures, other than the anecdotal evidence that the minister gave, that the government is willing to put into place to ensure that new product that is being built in the market is going to be attainable by people and not by real estate investment trusts?

Hon. R. Kahlon: I can’t speak to the specific project in the member’s riding. I will comment that he lives in one of the more beautiful ridings in the province, if not the country.

It may be that some purpose-built rentals are being built and being marketed as luxury. It’s difficult to control the private sector when they want to build housing and market it to different audiences.

What I would say is…. We do need an increase in purpose-built rentals. It’s not going to be necessarily indivi­duals that are investing in that. It’s going to be either investment companies or not-for-profits.

[S. Chandra Herbert in the chair.]

We believe that we need to grow the non-market space. That’s why we have the rental protection fund to acquire. That’s why we’re making the investments to expand.

BC Builds is part of that solution as well, the ability to use government-owned lands — federal, provincial, local government and First Nations lands — to build housing that targets that middle-income family group that needs that housing. I think the reason why BC Builds has gone from B.C. now across the country…. I’m meeting with Housing Ministers from different provinces in the coming days to talk about how we’re doing it.

Not only do we need to hit that market…. The private sector can’t reach it. Even our not-for-profits struggle without governments being involved. Not only is it im­portant for that reason; it’s also important because with interest rates and global inflation, there are some developments that are not going forward. It’s just a challenging time.

We are able to capture the availability of a labour pool to build these projects. It’s a good opportunity for First Nations and a good opportunity for local government. So that’s another initiative.

If the member is asking if we’re bringing policies to discourage purpose-built rentals from being built by the private sector, we’re not. Purpose-built rentals are purpose-built rentals. We need to increase that supply through­out the region.

That’s why the federal government has taken the steps they’ve taken as well. Removing GST for the next three years. A whole host of measures that they’re making, as well, to encourage that type.

We’re supporting not-for-profits to get in that space. We’re using our resources. We need the private sector to continue to build those purpose-built rentals as well.

A. Olsen: What I’m asking the minister is: what measures are being taken to limit or to contain the financialization of those units by large, powerful investment vehicles that are primarily built for the profiteering off of housing rather than for the affordability of housing? What measures are being taken to contain those large investment vehicles — from their ability to turn housing from a need that people have and availability at an unattainable rate — and to contain the profits of these real estate investment trusts?

[5:05 p.m.]

Hon. R. Kahlon: I’m trying to understand where the member is going with this.

I’ll say that we are trying to encourage both not-for-profits and for-profit homebuilders to build purpose-built rentals. We’re trying to encourage that. Whether it’s an investment company or whether it’s a local investor, we’re trying to encourage purpose-built rentals to be built. We’re not trying to discourage it.

A. Olsen: We’ve heard from people who are in the rental market that the rental market…. The cost of market rent is unsustainable for people.

What is the government doing to address the gap be­tween the incomes that people are making in our communities and the cost of market rent, specifically in Victoria and Vancouver but across the province?

Hon. R. Kahlon: We’re trying to expand non-market housing. We know non-market housing, over time, has shown to be more affordable than for-profit. We’re acquiring buildings that go on sale to shift into the non-market space and protect renters at the same time. We’re trying to increase the availability of housing over time. We’re providing supports to renters. We’re doing a whole host of measures.

We have more people than housing right now. That’s the challenge we’re dealing with.

The debate about private sector purpose-built rentals and not-for-profit…. Which is better is a debate that you can have when you have the luxury of a lot of housing availability. We don’t have a lot of housing availability right now. So we need to encourage the increase in housing supply of purpose-built rentals in communities throughout the province.

A. Olsen: That’s a debate the minister is having with himself. That is not the line of questioning I am having.

I am not having a debate between purpose-built and non-market. I’m asking about how it is that we are dealing with the urgent need that British Columbian renters have, more than 1.5 million renters who are today and tomorrow and at the end of the month dealing with a rental market that is far outpacing the local wages.

I have heard the minister’s responses. The reality is that the gap is today, not sometime in the future.

I was asking what policy measures are being taken. The minister has now mentioned the rental protection fund a couple of times.

There was a building in Sidney that was brought to the minister’s attention last year — deeply affordable rental units. We raised this issue. This building was for sale. The rental protection fund was being announced. It was very exciting that this building could be protected. Now this building has not been.

Why is it that this building, which has been…? If this is the solution, why do we now have a situation where…?

The minister highlights Sidney as being on the list of the next ten communities that are going to have to deliver housing for their residents. It has been brought to the ministry’s attention. Here’s a potential place to save deeply affordable…. There is no place for these residents to go from here. They’re going to be displaced. The building has now been sold. The opportunity was missed.

Here’s the incongruency. The minister responds that the rental protection fund…. Why did the rental protection fund fail the residents, in deeply affordable housing, in Sidney?

Hon. R. Kahlon: I’m sure the member knows this. The rental protection fund is outside of government. I’m sure the member knows this, but if he doesn’t, I’m happy to share that information.

If the member has concerns about why this building wasn’t purchased, he should go to the Aboriginal Housing Management Association, the B.C. Non-Profit Housing Association, the co-op association, who run the rental protection fund, and ask them why that acquisition wasn’t made. We trust our partners in British Columbia. That’s why the entity was created. That’s why we provided them the dollars. He may be able to get a better answer for why it didn’t work in that case through them.

How do we address the challenge? This is the central question that we grapple with. We put measures in place that encourage more housing supply, purpose-built rentals. We know that’s a measure that will help — both not-for-profit or other. Do not put in policies that will discourage it, but put in policies that will encourage more opportunities there.

[5:10 p.m.]

We’ve got caps on rents in British Columbia. We’ve got things like the speculation and vacancy tax. People are investing in homes and leaving them empty. We’re saying: “No, we need that housing back.” We’re taking action when it comes to short-term rentals and saying we need that housing available for renters in British Columbia.

There’s a whole host of measures we’re taking to try to address this challenge, but fundamentally, we have more people than housing available. It’s going to take time, but all the measures we’ve brought forward are to address this very question.

A. Olsen: I appreciate that the fund and the decisions are being made elsewhere. The minister has used the rental protection fund several times now as a way to respond to the issue that we’re facing: deeply unaffordable housing, specifically for certain demographics who simply cannot afford to have their rents go up at all or to be displaced at all.

As I said in my housing speeches earlier in this session, we are facing a large displacement, from the housing policies that have happened. There will be a massive displacement of people who can ill afford to have their rent go up $1. They can’t afford the rent that is existing in their communities today, never mind to be displaced. We have this situation where it feels like the minister wants to have it both ways. He wants to point to the rental protection fund as the solution to protecting the deeply affordable housing.

The market is going to be solving the problem by build­ing more units, but as I pointed out, in my riding — the minister is right; it’s a very nice riding — because we don’t have those projects being built, where there are the non-market solutions that the minister also points to, those deeply affordable units that the rental protection fund would have been primed to save are going to go on the market as market rentals, above the price that people can afford.

The minister wants to have it both ways. He wants to say that the government has put this fund in place to save people from being displaced from their housing, yet when asked the question why it is that this fund failed to do that, it’s now somebody else’s decision point, somebody else’s problem.

In an environment where we’ve got $500 million set aside for the rental protection fund and these massively capitalized real estate investment trusts building luxury market rentals, I’ll agree with the minister. We need market rentals. We need as many rentals as we can — except that the residents in my riding that will be displaced from this have nowhere to go.

Where do they go, Minister?

Hon. R. Kahlon: I don’t understand why the rental protection fund, in the member’s view, can’t be part of the solution. We’re not saying it’s the entirety of the solution, but we’re saying it’s an important part of the solution. If he feels discouraged about it, he should talk to the people who have seen the fund already work, the people that were saved in Coquitlam, the people who were saved in Esquimalt, the women that I was talking to in Langley when their building was saved.

It doesn’t solve the problem of every single renter, but it solves the issues for some that are under distress, and it’s an important fund for that reason. It’s not only we that think it’s a good idea. The federal government just said, “Hey, we like that idea. We’re putting $2 billion towards it as well,” which expands the opportunity for us here in British Columbia.

What we need, along with all the measures that I’ve highlighted, is the increase in non-market housing and the increase in market housing, both at the same time. I’m not entirely sure of what I’m really debating with the member about, because it’s not really clear in his question.

What I thought I heard was: “What measures are you taking to make life easier for renters?” What I’m saying is everything we’ve been doing is about getting more housing available: non-market expansion, supporting private sector housing to be built and protecting older rental stock. There are so many measures.

I appreciate that housing isn’t something that’s a switch, where you can flick the switch, and then it solves itself. It’s something that does take time.

[5:15 p.m.]

We’re putting better protections in for renters: protection around personal-use evictions, protections against renovictions, and just today we announced better protections for those that are in manufactured home parks — all things that were recommended by a rental task force, which the member was part of.

All of these things combined are moving this thing forward, but if the member is asking me if one initiative will solve the entire housing crisis, I’ve said, on many occasions, that one won’t. All of them, together, move us in the direction that we desperately need to go as a province.

A. Olsen: No. I’m not suggesting that one measure is going to solve the problem at all. In fact, I’m arguing the opposite of that.

I asked the minister where the people who are displaced from the deeply affordable housing that will be knocked down…. New buildings will be put up that will end up being either market rental or market purchase. Where will the seniors — who are being displaced from that building, who can barely afford their rent now and who will be now pushed out and displaced from that — go? Where is their next place to find a home that they can…?

I’m just suggesting that the minister has put the rental protection fund…. And I think that actually the federal government invested $2 billion in BC Builds, not the rental protection fund, which I….

But either way, the question remains: where are my constituents who are displaced from the housing market that the minister has been relying heavily on? Where do they go from here?

Hon. R. Kahlon: I just want to clarify that the federal government has also put money towards the rental protection fund, not directly to our fund but to a fund that will support our rental protection fund. It’s also $2 billion.

What I would say to the member is that’s why we’ve opened 137 affordable rentals in Sidney. This is why we’ve opened 132 affordable rental units in Central Saanich. This is why we’re making the investments we’re making, whether it’s through the community housing fund, in which we just announced another round, whether it’s the Indigenous housing fund, which is closing May 15, or providing PDF funding for Indigenous-led projects so that they can do the work in advance.

Again, I feel like we are spinning our wheels here. It’s certainly a challenging time, but that’s why we’re increasing protections for renters through the RTB changes there. That’s why we’re increasing non-market housing — bringing some in, building some up. That’s why we’re encouraging the private sector. Everyone will have a role. The private sector will meet the need for some parts of our population. The not-for-profits, through the funding from B.C. Housing, hit certain demographics. The initiative of BC Builds hits a different demographic. We’re trying to increase housing in all of those markets at the same time.

A. Olsen: We may, in here, be spinning our wheels on these issues. The constituents I’ve talked to that are about to be displaced — their heads are spinning, because they don’t see where they will land. The units that the minister talked about are in no way equal in terms of the cost to live in them. They are far, far higher than the deeply affordable units that people are being displaced from.

To simply say there are affordable units…. We could spend the rest of my time talking about what the government’s definition of affordable is, but the market right now is deeply unaffordable for the vast majority of people who are renting in it or who are trying to purchase in it.

I have to switch gears here, as I’ve only got a couple of minutes left, and just ask some questions about…. I’ve asked the minister in a couple of different ways over the last little bit about what the plan is for the southern Gulf Islands. I’ve talked about workforce housing issues. The Saanich Peninsula Chamber of Commerce has got a fairly robust campaign right now on dealing with the fact that the businesses on the Saanich Peninsula….

[5:20 p.m.]

The volume of housing that’s being built is not, as they put it, meeting the needs of the community that’s there or the immediate needs of the community. To an even, I think, probably more magnified extent, the types of housing that are being made available on the southern Gulf Islands are also having a similar impact on the workforces there.

The minister and I have talked a lot about the Islands Trust Act, a lot about the rural communities. I think that we both understand the deep challenges that are there from a governance perspective, in terms of being able to provide housing for people, but the communities there need to have solutions that fit the community.

How is the minister going to be working to solve…? It’s all scale and scope. It’s a smaller scale on the southern Gulf Islands, but the scope of the problem is magnified because a few people on the southern Gulf Islands is equivalent to many thousands of people in more urban areas.

Part of the challenge is that B.C. Housing and the ministry don’t do small numbers very well. They like to do large numbers. The CRD likes to build large numbers. What is the solution for communities, specifically the southern Gulf Islands but communities like the southern Gulf Islands?

Hon. R. Kahlon: I do appreciate the member coming to me multiple times to talk about the housing challenges in this community. I think we’ve had some good conversations about that, I would say.

Since he’s mentioned all three different parts of his community, I’ll start with the fact that with the recent housing targets announcement, the inclusion of Sidney and North Saanich to be part of that, I think, is important. North Saanich, I would say respectfully, has not allowed enough housing in the community to be part in playing a role to support the challenges we’re dealing with. I’ve said that on multiple occasions.

I’m hoping, through this, that they will understand that they need to support it. Companies like Viking Air and all these companies that are there that pay good-paying jobs…. Even with the good-paying jobs, they can’t attract people because they don’t want to be commuting from Mill Bay or from wherever they have to come from.

It’s a real challenge. I worry that we will lose some very strong companies to other jurisdictions because they don’t have the housing locally to support the workforce that they need. I’m actually really worried about that. I started this conversation with the local chambers when I was the Minister of Jobs, Economic Recovery and Innovation, so it’s timely that it carries over here.

Sidney’s part of that as well, and I am confident that Sidney will continue to play an important role in the housing discussion. The challenges of Salt Spring are real. I will say to the member that I wouldn’t necessarily agree with his characterization that B.C. Housing doesn’t do smaller projects.

[5:25 p.m.]

I was sharing earlier that we just did, I think, ten units in Kaslo. We’ve just opened up 14 in Valemount. It just does vary, community to community. We did Paisley Place, 24 units on Gabriola. Every community….

The Gulf Islands can apply for CHF funding. That is available to them, if partners were able to find a good parcel of land to do that.

The other thing I’ll add is…. If these local governments identify lands that they have and that they want for workforce housing, there is the opportunity with BC Builds for them to come forward. Some good strong local First Nations partners, I think, are a good opportunity as well, through the Indigenous housing fund.

For some community organizations that struggle be­cause they don’t have the resources to do the work to prepare for an application, it’s a good time now to partner with First Nations communities. We provide PDF funding, project development funding for projects if they’re partnering with First Nations or Indigenous partners. You can get money to do the pre-planning work, which enables you to be able to apply for the housing.

We are trying to find creative solutions. I know the member and I have talked about trying to find creative solutions for his community. We’re working on a few other initiatives that I can’t speak about now because we’ve not finalized them yet which will help us get housing into smaller and, maybe, more rural parts of our communities in easier ways.

A. Olsen: The minister is right. We’ve got a 32- or 34-​something unit building at Drake Road on Salt Spring, which is an example of a smaller building.

I do acknowledge there are…. Perhaps I should have characterized it…. There are, especially on Gulf Island communities, unique circumstances that may require B.C. Housing to think outside of what the model is or the formula that B.C. Housing uses in order to determine what a viable project is. What’s a viable project in the capital regional district…. Even though Salt Spring and Mayne and Galiano….

We’ve got a situation on Galiano. We’ve had multiple local community groups working tirelessly to try to get a few units built. They’ve got everything, but now they have to build a road.

The affordability of these projects is very, very challenging. Even as experienced as local community groups get building housing, it’s very, very challenging. They’re not professional developers.

I want to continue to use every space that I have here to acknowledge the challenge that’s faced, even for just a small number of units, on Pender Island, Galiano, Mayne, Saturna, Salt Spring. It means a big deal for the communities in order to be able to get that.

I’ll just ask one final question before I hand it over to my colleague here. It’s around the staffing of buildings.

One of the concerns that I’ve consistently heard was…. The commitment that was made by B.C. Housing and in the contracts to fully staff sites at Kings Lane, for example, and at Prosser Road in Central Saanich…. The level of staffing commitments that were made to the communities…. They were going to be fully staffed 24-7. That’s just simply not the case at those two sites specifically.

Can the minister talk to why it’s acceptable for the ministry to claim that there are going to be fully staffed buildings and then for those buildings to not be staffed to the levels that the ministry made the commitment to?

[5:30 p.m.]

Hon. R. Kahlon: Part of the operating agreement with the not-for-profit partners and the funding that goes to them is with the commitment that they have two staff, two FTEs, 24-7. Usually that’s six to eight staff that they need for that.

If the member is suggesting he has information that our not-for-profit partners in those two sites are not providing that service, then that’s something that we’ll follow up with through B.C. Housing, and I’ll get back to the member on it.

A. Walker: Our city council in Parksville recently had the opportunity to have B.C. Housing present to them. The council asked some really good questions, and one of the questions that was asked was: how many people in Oceanside are on the B.C. Housing wait-list? The council was assured that they would get that back to them in writing, and they have yet to see that.

My first question is: how many people in Oceanside are currently on a wait-list for B.C. Housing housing?

Hon. R. Kahlon: I can commit to the member that I will do my best, through B.C. Housing, to get the member the number. If we wait on that question, the 15 minutes will be up. If I can follow up with the member, I would appreciate that.

A. Walker: Certainly. There are follow-up questions that will come from that, so if it does pop up in the next short while, that would be appreciated.

One of the commitments that B.C. Housing made in 2019, following some court settlement related to a site on Corfield, was that B.C. Housing would lead an initiative to find a place for a shelter in our community. When I was elected in 2020, one of the first things that I got was a phone call saying: “Hey, it’s really cold out, and there’s no plan for a shelter.”

It was unusual to deal with local volunteers and a church and to literally just start phoning B.C. Housing until we got the funding and a shelter opened. The following years, we ran a shelter out of some churches that stepped up. We had one organized shelter, one year, that had some issues in the community.

The question is: what is the plan right now? What plan does B.C. Housing have to provide a shelter service in the Oceanside region, recognizing that last year, we had no shelter and we had to rely on EMCR funding to make sure that people didn’t freeze to death?

Hon. R. Kahlon: The member knows this, but it’s more for the record, which is…. We tried a year and a half ago. We had a site, and the temporary-use permit was denied. I know the challenge, between the two communities, of shelter and where it goes. We’re still committed to try to find a location for that, but I’m not aware of a location that’s been identified yet.

A. Walker: The challenges with the temporary-use permit, I think, was not so much the idea of an emergency shelter. It was to ensure that there was stability for some folks that were previously in another building that had lit on fire. Then they were housed, temporarily, in a community space. Then they were at another, the VIP.

Shifting to similar conversation but for the city of Nanaimo, today we have our cold weather shelter closing. April 30, their contract is closed. Seventeen people that rely on that shelter are today, for the first time, being not welcomed back into that place. These are 17 individuals that do not have tents, do not have other supplies.

[5:35 p.m.]

B.C. Housing has identified that there are other shelters in the community: the New Hope — Salvation Army operates this; Unitarian Shelter; as well as Samaritan Place. But these spaces do not have openings available right now for these 17 individuals. In fact, Unitarian Shelter is actually trying to move some folks along to the Risebridge-operated shelter.

I recognize there have been some significant investments in Nanaimo. It’s very much appreciated. Chatting with the minister, who represents the central downtown core, she always talks about how 1,000 units of affordable housing have been funded. But we’ve got — according to the mayor, according to people downtown, according to the RCMP — more than 1,000 unhoused individuals.

The question is: in light of the fact that we have a desperate need to ensure that people have a safe place to go, will the minister consider looking at extending this shelter that’s closing today to ensure that these 17 individuals, as well as others, have a safe place to stay?

Hon. R. Kahlon: I appreciate the member acknowledging the Unitarian Shelter. That was winter, and it was temporary, but we extended that now to make it year-round.

We just opened up supportive housing last week. I think 51 units. That means that people from the Terminal site can move in, some people from shelter. There’s renovation happening at the Terminal site, almost complete, which will move people from shelters into supportive housing and open up more capacity at the shelter.

We are also in conversations right now with the city of Nanaimo on a couple of important other initiatives to get more housing online, which I believe will relieve a lot of this pressure. But we’re not in a position yet where we can make that public.

A. Walker: I appreciate that. I guess the concern is this shelter that’s closed right now would normally be opening in a couple of hours. There are 17 individuals. They’re not going to be getting into Newcastle or Terminal or any of these other facilities. They are now being added to the populace that is on the street in downtown Nanaimo.

So the question was: will the minister take the action to work with Risebridge to do what they can to keep that shelter open, to ensure that people have a safe place to go at night?

[5:40 p.m.]

Hon. R. Kahlon: The temporary shelter is not a new model. It’s been here for a long time. It’s there for difficult weather conditions.

That being said, part of the recent MOU we signed with the city of Nanaimo was an additional site at 1300 Island Highway South, prefabricated transitional support housing for 50 people. We are just finishing renovations on 50 temporary spaces at the 2050 Terminal site. We just opened, last week, the 51 permanent supportive housing units. We’re moving people from shelters into the supportive housing. That’s the pathway we take. We have a couple of other initiatives that we’re working on with the city of Nanaimo.

We do have what’s called community access tables and a HEARTH team on the ground that are trying to find people places that are more permanent. I won’t be able to get to the team at this moment. Just to say that we know there’s a need in Nanaimo, and we’re dramatically trying to increase both permanent and temporary locations for people to come inside.

A. Walker: Yeah, it’s 250 Terminal.

I guess the challenge is just that some of these sites aren’t open yet. So we’ve got these people that are being kicked out, and I understand that it’s a funding stream that ends at the end of April. It did open late. The challenge is that Unitarian Shelter has actually been referring people to the Risebridge facility, because they have their own challenges within their own facility.

Jumping back to Parksville with the shelter situation there, the minister mentioned that a temporary use permit was denied, recognizing that was a slightly different property. Is there any work happening right now to prepare for this next winter season? And if not, what can be done to bring local governments together, to bring service providers together to try to have one conversation in one place about finding a solution this early in the process?

Hon. R. Kahlon: What I thought I heard — maybe I have selective hearing — was that the member wanted to help bring communities together to identify a permanent shelter spot within the communities. If that’s what the member is offering as something that he would like to advance, then we’ll ensure B.C. Housing is part of that conversation.

A. Walker: That would be appreciated. Whether it’s permanent or temporary, it’s about planning now so that come October we’re not scrambling like we do every year. Of course being an election year, that will create a completely different scramble.

Yeah, we want to make sure that there is some predictability there. It’s not just for those that need the help. We saw that through the emergency shelter earlier this year. We had a senior in there whose electricity had cut out. She had a home, but she lost heating in that home and she needed a place to go. We had Ukrainian refugees that had come and used the emergency shelter.

It’s also for the fact that these service providers, the people doing the work in the community, deserve to know what the plan is. It’s really difficult talking to them about the compassion they have to ensure people have the dignity of having a place to stay and the safety of having a place to stay and having no control over being able to offer that.

[5:45 p.m.]

As we talk about the wait-list for Oceanside, I recognize that number still hasn’t come yet, which is fine. Is this information available publicly? Council has asked B.C. Housing. This was many months ago. They haven’t heard back. Is there some place that local government can understand what the need is in their community so that they can take that accountability?

Whether it’s number of seniors…. As we heard from the member for West Vancouver–Capilano, that number has increased dramatically. I think that local governments, if they had that information, would probably have more ownership in the fact that they need to be a part of leading the solution.

Not just with seniors but just more broadly, the number of people on the B.C. Housing wait-list — how is it that local governments can have access to that information on a regular basis?

Hon. R. Kahlon: The research team at B.C. Housing is actually trying to pull that number for the member right now. If I don’t get it before the end of the day, I’ll definitely try to get the member of the number tomorrow. I’m not entirely sure who committed to council and who didn’t, but we’ll follow up on that and make sure that that number is available.

I can guarantee the member, and the member already knows this, there is a need in the community. The member also knows I was with him in the community celebrating some units being opened up, and there’s a real desire from our side, from B.C. Housing, from the ministry, to find more solutions for affordable housing in his community.

A. Walker: I appreciate that the minister has been very open and accessible with this concern.

The question was: how can local governments have ac­cess to the B.C. Housing wait-list data so that they can make informed decisions?

Hon. R. Kahlon: Right now, when communities ask, we do provide them information for their community. That’s why I’m trying to get the member the number he needs. We do have communities ask, and we share that information. Media ask, and we share that with the media as well.

A. Walker: Is there any consideration for proactively disclosing that on a regular basis?

One of the things, talking to some of the members of Parksville council, is that they didn’t have the number. But they also don’t know what this looks like relative to other similar communities around this province. So, I guess, is there any consideration of making that proactively regularly available to the public?

Hon. R. Kahlon: Through B.C. Housing, through several reports, we share lots of information about needs in communities. We do point-in-time counts.

The federal government has a process now, almost some alignment, but they also share data of needs.

Again, there are a lot of things that we’re trying to get across the line. That is something that maybe we can get to when our websites are updated and everything. Right now, it is, essentially, when media or local governments ask, that we provide that information.

A. Walker: Then, I guess, that’s an opportunity.

The minister mentioned that, I believe, there are intakes right now for the CHF. Is that the case?

Hon. R. Kahlon: The CHF, instead of being one every, say, three years, now we have a call that’s happening almost every year so that communities that are not available for one fund, they can apply for the next. We expect it to be likely very, very early in the new year for the next CHF fund.

The Indigenous housing fund is closing May 15, and that’s open right now.

A. Walker: I’m just looking at the website. The Indigenous housing fund, I think, on the website says it closes a slightly different date. Just pointing back to the website. Yeah, I would certainly encourage the minister, if that data could be released on monthly basis.

The PiT Count is a good reference point to understand those that are homeless, but as the minister knows from his own constituency office, there are many, many more people than the PiT Count represents. We’ve got seniors coming through that are living in their cars that have been missed in the PiT Count. People are living on couches waiting, people who are living very precariously.

To have that data released on a regular basis would provide a benchmark for communities, especially the local elected officials, to not only compare themselves to other communities, but to be able to go to their own community and say, “we are achieving success,” or “we’re going in the wrong direction.”

[5:50 p.m.]

Without that data, relying on local governments to ask for it — and this local government has asked for it, and they haven’t seen it yet — or for the media to make that request, I would certainly encourage the minister, if possible, to take that on. I understand the minister has got lots of other initiatives, and they are very important.

One of the things in my community — I know it’s not all that different in others that rely on the private market for a lot of rental home units — is the challenge when a house is up for sale. We have many homes in our community that are rented, especially to seniors, that have been rented for a long time. These rents are substantially below market rental. There’s no rental protection fund to ensure that these homes remain in the rental market.

When a home like this sells, the tenant, often a senior in my community, comes to my office with an eviction notice, and they have no plan. The challenge is that there is no solution for this other than to put them on the B.C. Housing wait-list. Is there any consideration or any work being done right now to try to protect the existing private market rentals that exist, whether making those public or otherwise, to ensure that we don’t continue to lose private rentals in our communities, whether it’s a home or an apartment?

Hon. R. Kahlon: I know the member’s aware of the rental protection fund for bigger projects, multiple units. At this point, we don’t have a program for an individual home. I understand the challenge the member is raising.

In some, especially smaller, communities, that one home is like the equivalent of a multi-unit building. It is something we are having conversations with the rental protection fund on, how they can have some flexibility for rural communities. It’s not a building with 60 units, because in some communities that just won’t be the case. But in smaller communities, it may be a couple of homes.

That is something that they’re considering, but I can’t give the member any information on something that’s, say, concrete on that yet.

A. Walker: I appreciate that, and I was just hoping, really, to raise that as an issue. It’s troubling, because in communities like Qualicum Beach and Parksville, where we don’t have predominantly apartment-style living, the rental market is these single-family homes.

When the landlord or the property owner has to dispose of that property for whatever reason, it is not being bought by someone else to continue that tenancy. So it creates a situation where we are actively losing, every year, these important rental properties.

As we chat with landlords in our constituency office, one of the things that they continue to raise with me is the challenges with the residential tenancy branch. I recognize there’s been significant investment to streamline that process. Could the minister provide an update as to where we’re at right now as far as streamlining the wait times, how long it takes for these things to be adjudicated and whether the minister is satisfied with the current progress?

Hon. R. Kahlon: I’m very pleased with the reduction in wait times across the board at the RTB. That’s a culmination of additional investments that we’ve made to bring more staff on and also the legislation that passed last fall.

[5:55 p.m.]

This allowed us to build in some efficiencies, oral hearings, and have some adjudication powers between tenants about how bookings happen. I’ve shared publicly some of the data, but since we announced the funding, in November 2022, we’ve seen a 57.4 percent reduction in average wait times for hearings. We’ve seen a significant number delayed.

We have wait times for hearings where unpaid rent was an issue. With a new fast-track process, a 67 percent reduction. At the same time, we are seeing increases in cases. That’s pretty remarkable how much in efficiencies and how much time-saving we’ve got. We still have more work to do. Calls answered within 20 minutes: the service standard is 90 percent. That’s the standard we set, and we’re at 93 percent. We’re above that.

Average wait times to speak to an agent — the service standard that had been set across the province was 12 minutes. We’re at seven minutes and 24 seconds. Number of calls dropped — we’re doing well there. Across the board, hearing times have come down dramatically. We’re at 2.6 weeks for emergency hearings. For regular hearings, we’re at 8.3 weeks; for monetary hearings, 13.6 weeks. The service standard for monetary hearings is 12 weeks, so we’re getting close to that. The standard for regular hearings was six weeks, and we’re at 8.3. So we’re making good improvement there.

Across the board, the times are reducing. We still have more work to do. When somebody’s in distress or dealing with something urgent, it’s never fast enough, but by the investments in the reforms and cutting the red tape, we’ve reduced the time significantly.

A. Walker: I’m not sure if folks are coming in. Just on that same question, the minister mentioned a level of satisfaction with that. Is the minister going to continue to increase pressure and to ensure that those wait times continue to be reduced?

Hon. R. Kahlon: Yes, we have more work to do. The goal isn’t to just get to the standard. I’d like to get below. I’m pushing the team here, but they’re doing great work, I have to say.

I will also share with the member that the number for Parksville is 155, and for Qualicum, it’s 71, on the registry.

A. Walker: One of the other concerns that I often hear from constituents that are on the B.C. Housing wait-list is the fact that they are unable to find housing that allows for a pet. What work is being done right now to ensure that? Whether it’s new construction of B.C. Housing projects or retrofitting existing ones, recognizing that some tenants cannot live on a floor or near a pet, what work is being done to ensure that some of these seniors that are living alone have access to units that allow for pets?

Hon. R. Kahlon: It really varies. It really depends on the provider that’s bringing the application forward. We have some buildings that are coming and that are pet-friendly, and we have some buildings that have some units that are pet-friendly. It is dependent on the provider that’s bringing the application forward.

A. Walker: I guess one of the challenges is that as a landlord, which is what these non-profit providers are, there’s an incentive not to have pets. There’s a risk there. There’s a cost there. The pet deposit often doesn’t cover the cost of remediating a unit if the pet has created some harm.

Is there any pressure that the minister is putting on these operators to try to incentivize them to allow for some units to have pets? The reason I ask is especially for seniors that are living alone — having access to a unit that has a pet space, especially when they have a pet already. We have people coming through our office that are refusing housing and that continue to live in their cars because they don’t want to get rid of their companion animal.

Is there any pressure that is being borne by the ministry on some of these operators — or any incentives, ideally — to try to encourage this type of activity?

Hon. R. Kahlon: I wouldn’t say pressure, but I would say that many of our not-for-profit partners are hearing the same thing the member is.

[6:00 p.m.]

It is something that, I would say, most are considering, because in the end, their goal is to serve the needs of the people in the community. When they hear this, most are very responsive to try to make that happen.

A. Walker: Chair, I know I only have 15 minutes. It feels like the longest 15 minutes. I’m just going to keep going until the minister gives me a nod.

Interjection.

A. Walker: The minister says the nod was a long time ago. I missed the nod; I apologize for that. This will be my last question, I guess.

We were there together when the 87 units in Parksville opened up. That was a great day. The challenge is they had a wait-list of, I believe, 400 people that they were weeding through. As an operator, they do want to serve their clients, but they also have a choice when we have such a massive wait-list. As the minister pointed out, the wait-list in Oceanside, rough math in my head, is around 200 or so.

My last question, I guess. Through some of the housing legislation last fall with the small-scale, multi-family units, we are now seeing local governments move through this rezoning process. The minister is very likely aware that the district of Lantzville is having some hesitancy about going through this process. I recognize the ministry and the province did fund some of the consultation and planning processes.

What advice does the minister have to communities, like the district of Lantzville, which are really facing some challenges from their constituents, from their voters, from their ratepayers, as far as this new change they have to bring in by June?

Hon. R. Kahlon: We are going to have to do a staff change. I’ll do a high-level message for the member, which is, overall, I’m very pleased at where we’re at with communities. We are seeing communities that are moving forward, getting changes done. My community of Delta is heading to fourth reading, which is probably the furthest ahead of any community. Those discussions and conversations are happening, at my doorstep.

I understand that for some local councils that it’s a little bit more challenging than perhaps others, but the legislation is pretty clear. The site standards document is pretty clear, and it’s my expectation that local governments will do what is needed to ensure that those units get built in the community.

I do thank the member for his questions and again thank him for his advocacy and, really, his sharing of information from his community around short-term ren­tals as well. I want to recognize the work he has done there.

Vote 33: ministry operations, $1,033,255,000 — approved.

Hon. R. Kahlon: I move the committee rise, report resolution and completion and ask leave to sit again.

Motion approved.

The committee rose at 6:03 p.m.

The House resumed; the Speaker in the chair.

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

Report and
Third Reading of Bills

BILL 22 — SAFE ACCESS TO SCHOOLS ACT

Bill 22, Safe Access to Schools Act, reported complete without amendment.

The Speaker: When shall the bill be read a third time?

Hon. R. Kahlon: Now, hon. Speaker.

The Speaker: Members, the question is third reading of Bill 22, Safe Access to Schools Act.

Division has been called.

[6:05 p.m. - 6:15 p.m.]

Bill 22, Safe Access to Schools Act, read a third time and passed on the following division:

YEAS — 49

Chandra Herbert

Parmar

A. Singh

Babchuk

Coulter

Lore

Chow

Beare

Kang

Heyman

Osborne

Cullen

Bains

Malcolmson

Bailey

Brar

Russell

Starchuk

Phillip

Yao

Leonard

R. Singh

Whiteside

Farnworth

Kahlon

Eby

Conroy

Sharma

Dix

Fleming

Dean

Rankin

Ralston

Alexis

Sims

Simons

Elmore

Glumac

Routley

Furstenau

D’Eith

Donnelly

Greene

Anderson

Chant

Dykeman

Paddon

Begg

 

Walker

 

NAYS — 23

de Jong

Doerkson

Milobar

Stone

Bond

Ross

Oakes

Bernier

Davies

Banman

Morris

Kyllo

Shypitka

Sturko

Merrifield

Wat

Lee

Kirkpatrick

Stewart

Ashton

Sturdy

Letnick

 

Tegart

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

Hon. R. Kahlon moved adjournment of the House.

Motion approved.

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

The House adjourned at 6:18 p.m.


PROCEEDINGS IN THE
DOUGLAS FIR ROOM

Committee of the Whole House

BILL 20 — FIRST NATIONS MANDATED
POST-SECONDARY INSTITUTES ACT

(continued)

The House in Committee of the Whole (Section A) on Bill 20; H. Yao in the chair.

The committee met at 1:34 p.m.

The Chair: I call Committee of the Whole on Bill 20, titled First Nations Mandated Post-Secondary Institutes Act, to order. We are currently on clause 1.

On clause 1 (continued).

C. Oakes: Just following up on how we were canvassing yesterday. Yesterday we looked at how the reason why NVIT is not included in this bill is because it’s a public post-secondary. So this is a piece of legislation, and the framework sets forward ongoing annual operating funding for private post-secondary institutions?

[1:35 p.m.]

Hon. L. Beare: I see what the member is asking. In essence, yes. But it’s not, really, because they are First Nations–led organizations, so they’re community-established organizations. They’re separate legal entities that report up through Indigenous leadership. Those are the organizations that we are supporting. It’s a different classi­fication from the public institutions, but it’s First Nations–​led institutes.

C. Oakes: In this act and definition one, it talks about the Indigenous governing body that has the same meaning as in the Declaration on the Rights of Indigenous Peoples Act. Through you to the minister, can you define what “First Nations” means in correlation to this act? For example, does that include Métis? What is considered First Nations for the purposes of annual funding?

[1:40 p.m.]

Hon. L. Beare: I’ll answer in two parts. I’ll read the Indigenous governing body piece into the record so that the member has it, and then I’ll follow up with a response.

The purpose of this act and the definition of First Nations mandated institute are very specifically used. The Indigenous governing body is intended to allow flexibility for different Indigenous governance structures that may be providing a mandate to a mandated institute.

Under the Declaration on the Rights of Indigenous Peo­ples Act, this term means an entity that is authorized to act on behalf of Indigenous peoples and that hold rights recognized and affirmed by section 35 of the Constitution Act, 1982.

The definition is important, as section 2 specifies, for the purpose of the act, the mandated institute is an institute “that is mandated, by one or more Indigenous governing bodies acting on behalf of one or more First Nations in B.C.”

What constitutes an entity authorized to act on behalf of Indigenous peoples is a matter of Indigenous self-determination as articulated in the UN declaration, including articles 3, 4 and 5. Such entities could include but are not limited to a band under the Indian Act, a governance society, tribal council or hereditary leadership.

The establishment and the creation of this act is in response to the Declaration Act, and it’s one of the calls. The response to it was to create this act for First Nations as well as Métis. The Métis are looking to stand up and establish a separate institution, separate institutes, similar to what First Nations have done with the institutes that are being contemplated here. They haven’t done that yet, so it’s not part of this act.

We’ll be working with them as they continue down their path. We’re going to work closely with them as they look to stand up similar types of institutes.

C. Oakes: So we’ve got the public post-secondary institution that government is funding. This framework sets forward how we’re going to fund private First Nations, and then we’re going to have a third layer that’s funding Métis. So we’re going to have three levels of where the government will now be funding post-secondary education, as I understand it.

When you look at the…. Maybe go back to the definitions of what a listed mandated institute is. So in the definition, it talks about a list of mandated institutions that must be provided operational funding. In the briefing — thank you very much — it was identified that there are 40 institutions. So I went through the list of the 40. For example, in my area, the Southern Dakelh Nation Alliance, which is working closely to try and do training in my community, is not listed as one of the 40.

On the definitions of listed mandated institutes, who creates the list of what a mandated institute is?

[1:45 p.m.]

Hon. L. Beare: We’re working with First Nations to create the eligibility criteria. That has not been created yet. That is a work of collaboration that we will be doing alongside First Nations to create that eligibility which will determine which institutes get funded.

The list the member is referring to is a list of current First Nations–established institutes we’re aware of thus far. It’s just an awareness list, currently, not a funding list, of the institutes that are currently created, which does not preclude the nations around the member’s community from creating their own or others across the province. There are just 40 we are aware of today.

C. Oakes: Technically, as we are managing expectations, we could potentially have 204 mandated institutes in British Columbia that the government will be providing funding to?

Hon. L. Beare: In the spirit of the member’s question, provided they meet the criteria and meet the threshold that will be created in partnership with First Nations. But I want the member to know that it is extraordinarily unlikely that 204 institutes would pop up. This is years and years of work to get to the 40 that we have now. Many of them are partnerships with four, five, six nations together that have partnered to create these established institutes.

[1:50 p.m.]

Some of the 40 are extremely small institutes and are just very community-based and deliver one program on demand that the community needs or deliver K-to-12 programming. It’s a wide range of services that First Nations–​mandated institutes are providing into the community, and it’s usually in partnership with surrounding nations as well. The 40 we know about now, many of them are small. Many of them only provide a small amount of programming or a K-to-12 program. And many of them work in partnership with nations beside them.

C. Oakes: I’m just trying to flesh out the mandated institute piece a little bit, because the whole bill refers to mandated institutes and how we are going to fund them. I know that so much is going to be done in regulation after. It is a little challenging to bring forward a bill that…. The whole element of this bill is about mandated institutes, and we don’t really understand yet what that framework will be.

I do have to identify that there is some discomfort in the fact that perhaps we should have brought forward in this what a mandated institute is. Because we’re setting forward a framework for ongoing annual operating funding for mandated institutes without actually defining what a mandated institute is. I just want to put that on the record.

Then I guess we’ll move to No. 3, which is the funding commitment.

Clauses 1 and 2 approved.

On clause 3.

C. Oakes: This is about funding commitment now and how the minister will be funding the mandated institutes. We haven’t determined technically what a mandated institute is. But we’re going into that the minister “must fund mandated institutions in accordance with (a) this Act, and (b) an applicable funding agreement under this Act.”

Again, I’m just trying to understand. We have mandated institutes, but we don’t quite know what those institutes are, but this is a bill that says that this is an act that we are going to create funding agreements under this act.

Could the minister define what the funding agreement will be and how you determine what a funding agreement will be if we don’t actually know what the mandated institutes are?

[1:55 p.m.]

Hon. L. Beare: I’m going to take a couple of minutes here and try and lay this out for the member. I very much understand the question and the concern the member raised before it, so I want to help alleviate those concerns and explain for the member as best I can, because it is a bit circular, as the member is saying.

What we’re doing here in the act is giving the ability for the minister to create the list, but we’re not defining yet who’s on the list. I understand why that would be a question from the member, absolutely.

I know the member also knows that in the spirit of re­conciliation and in the co-creation of this bill with First Nations, that spirit continues in creating the list of First Nations–mandated institutes. The criteria isn’t currently set yet, and that’s very deliberate.

That is going to be done in consultation with First Nations. It will be done with FNESC. As the member knows, FNESC is the First Nations Education Steering Committee that has been designated by First Nations leadership as the lead policy and advocacy organization to work with the province and federal governments regarding First Nations education, including kindergarten to grade 12 and post-secondary.

It’ll be done with IAHLA, which is the Indigenous Adult and Higher Learning Association which represents First Nations–mandated institutes and learners at those institutes. The creation of this bill was done in conjunction with them, and the creation of the criteria around what is an eligible institute will also be created with them.

I don’t want to prejudice any conversations that are going to happen later, but I would say, for example, we would be looking at institutions — the scope of programming that they’re offering, that they do provide post-sec and not K to 12 and the number of learners. It’s that kind of criteria that we’ll be looking at, but again, in the spirit of reconciliation, this is the bill that we worked on with First Nations to put forward.

We’ll continue that good work with them after, as we create the list. The power to create the list is given in the bill, as the member just pointed out.

C. Oakes: Will this process be transparent? As we’re going through this process and as the criteria is being defined and the list of mandated institutions is identified, will that information be made public?

[2:00 p.m.]

Hon. L. Beare: A short answer to the member’s question is yes. The list will be made public by the ministerial order, which creates the list, and then the criteria by order will also be made public.

I think where the member is trying to go in this is: how will that process look afterwards, and who will be participating in it? It will be done in conjunction with First Nations in a similar process that we did to create this bill. I don’t want to take up the member’s time. We read into record earlier on in the debate the process we went through in consultation to create the bill, going out to all 204 nations, the First Nations leadership, all those things. That will be recreated, essentially, in creating the list — that same consultation out to community.

Clause 3 approved.

On clause 4.

C. Oakes: This is the clause about ongoing operational funding. This sets forward the path that operational funding must be provided, at least annually, to listed mandated institutes. I certainly understand the need, when you’re developing curriculum and you’re developing programs, to not rely on grants one at a time. It’s very challenging in that environment, so to provide that ongoing year-by-year funding….

How will the operating…? The operating funding we canvassed last week comes out of the Post-Secondary Education budget. How does this funding or the expectation — what is the potential for it to grow, for example?

Say right now there are only ten, but then it grows to 40, but then it potentially grows to 60. This bill sets forward a framework that thou shall fund each year on an annual basis. It’s not just one-off; it creates long-term agreements. What was the analysis done on the ministry’s budget on the potential growth and expectation that could come out of the minister’s budget?

Hon. L. Beare: As we discussed earlier in our debate, there is $6 million in operating funding that comes out of the future-ready within the ministry’s budget, as well as $450,000 for capacity. As we also mentioned earlier, the anticipation is there will be approximately ten institutes that will meet the eligibility criteria that will be co-developed.

Again, I don’t want to presuppose. We have that work to do with First Nations to create that. But with the understanding of the institutes that we do have in that list of 40, it’s somewhere around ten that we anticipate.

[2:05 p.m.]

If there is an increase, if over the next five years we get another two or three that develop and meet that eligibility criteria, we will either have to find money within the ministry’s budget, within the future-ready, or seek additional funding from treasury.

C. Oakes: Right now the public system is based on a funding formula of FTE, so that’s kind of how it’s determined how funding is allocated. How will the ministry determine the operating funding to, say, even the ten? Once you’ve developed curriculum, it’s not like if you all of a sudden have ten right now…. But say there are 15 or 20, those ten are still going to need the same requirements of funds to run their programs.

It’s setting forward expectations. If it’s ongoing, year-by-year funding, operating funding, that this is setting forth, we are actually…. The more you grow, you can’t take that slice of pie and make it smaller, or you wouldn’t be able to run the programs.

There is a funding model for post-secondary. I wonder what the thought is on what that framework of allocation will look like through the ministry.

Hon. L. Beare: In the interim, we’ve done a partnership with IAHLA and with FNESC on looking at the operating costs for the existing institutes and what it is for their institutes for core funding. So it’s going to be that continued work with partners.

To date, it’s approximately $400,000 to $600,000, de­pending on what the institute is doing and a number of pieces. But again, this funding is specifically for core operations. That’s the goal of this funding. The institutes do receive money from other sources such as the federal government for curriculum or for program development. That’s outside of what the goal of this funding is. This is for the core funding of an institute — the lights on.

Clause 4 approved.

On clause 5.

[2:10 p.m.]

C. Oakes: In this clause, we talk about the OIC. The minister talked a little bit about this before, about how the minister, through an OIC, can set forward what the mandated institutions are. I’m just wondering about the reasoning for the selection of the language that was used in this legislative clause, because it talks about it “may, by regulation.” If you weren’t doing it by regulation, listing what the mandated institutions are, how else would that come about?

Hon. L. Beare: The member has been in cabinet, so the member knows that this lays out that the minister may bring to cabinet the recommendation to add additional institutes to the list or the creation of the list. The minister cannot mandate cabinet make a decision. Cabinet will make a decision. The minister brings a recommendation, and the Lieutenant-Governor-in-Council may decide to accept that recommendation.

C. Oakes: Where this is a little bit of a different piece of legislation…. We canvassed yesterday that this is the first time a piece of legislation has been brought forward that talks about mandated funding. And you have another partner, right? You’ve got the Indigenous partnership in this. Having the ambiguity of “may” that normally would just go for a cabinet decision…. You’ve got an additional partner in this, and that’s the First Nations partnership. So walking through the process, could it be with the…?

Because it’s ambiguous and because this isn’t a normal agreement — this is a new form of agreement — wouldn’t it…? Would there be an instance where a First Nation comes forward, and they establish the regulation of what the mandated institute is? It’s left…. This clause is open. It doesn’t clearly define the process, because it’s “may,” and you’re having another partnership, a First Nations partnership, in essence.

Could a First Nation come forward and determine what the criteria for the mandated institution is?

[2:15 p.m.]

Hon. L. Beare: To the member’s question, the short answer is no, that ability does not exist. What it is, is a minister’s recommendation that goes to cabinet, and then it’s up to cabinet to make a decision.

I want to make it very clear in this House and to everyone watching that bringing this bill forward in the manner we did, and in the co-creation and collaboration that we did with First Nations, it’s government’s clear commitment to continue that work with First Nations as we establish criteria, as we create the future pieces of it. That work will continue in any ministerial recommendations to cabinet.

While the minister can’t force cabinet to make decisions, and that’s why the language is the way it is, that commitment to continued reconciliation and work with nations, in the co-creation like we did with this bill, will continue on through those ministerial recommendations to cabinet.

C. Oakes: What isn’t clearly defined in this bill, when we talk about the co-creation with the First Nations, is what the steps are that the First Nations could bring forward if they do not agree with the minister’s direction on what the mandated institutions are.

Hon. L. Beare: Thank you for the question.

Within the bill there is the ability for First Nations to come directly to the minister outside of the work that is being done with FNESC and IAHLA. If for some reason First Nations would like to independently pursue this work, it’s in section 12. It’s the first piece, that the minister may, in consultation and cooperation with First Nations, establish policies and procedures. So there is that independent path that nations may take.

Clause 5 approved.

On clause 6.

C. Oakes: This is around how we fund this part of the bill. It’s about, again, the funding agreement that’s providing operational funding and the decisions.

I understand we don’t have the criteria yet, that that’ll be done in regulation, but what would be an example of some of the criteria that the minister may look at in response to entering into these agreements?

[2:20 p.m.]

Hon. L. Beare: I gave the member some examples earlier. I’m going to repeat them and not expand from that because, again, I don’t want to presume any work that needs to be done in collaboration with First Nations.

We talked about, potentially, the scope of programming, that the institute is clearly delivering post-secondary education, the number of learners, for example. That sets out the eligibility, and then the agreement sets out the mechanism for the funding.

C. Oakes: This also talks about how the minister may remove an institute from a list under the subsection. Could the minister describe how, by order, that the minister may cancel or stop funding a mandated institute?

Hon. L. Beare: It’s clearly outlined under 6(2) that the minister, by order, may remove an institute from the list under subsection (1) if the institute ceases to be a mandated institute, for example, or if the institute withdraws from the funding agreement or that agreement is otherwise terminated.

I know the member is probably expressing concern. What if we…? Say it’s a “number of learners” criteria piece. It’s 100, and an institute drops to 90, for example. What will the ministry do? I assume that’s probably where the member is trying to go. It’s not an automatic removal.

Once an institute has met the eligibility criteria, we will, as a ministry, alongside FNESC and IAHLA, continue to work with institutes where, if they have a dip, for example, in number of students, we can work with them for a year or two. That hasn’t been established. That’s work we will continue to do with First Nations to support these First Nations institutes that have met the criteria, to continue to meet it and receive their ongoing funding.

[2:25 p.m.]

C. Oakes: That wasn’t actually where I was going to go, but I appreciate the information.

Where I was…. The intent where I want to go on this is to put students first. Through everything I have always done in this role, it’s to make sure that, at all times, students are the centre of everything we’re doing to make sure that we’re wrapping them with the supports and making sure that we’re helping them achieve their outcomes and fulfilling their aspirations.

We don’t have, really, the students recognized in this bill. It’s more about the institutions, and it talks about scope of practice. I guess if we were in a situation where, say, quality assurance for students…. They weren’t getting…. Maybe there were safety concerns, or maybe the students weren’t receiving the level of expected education. I guess we’re looking at…. This is unique. I understand. But having just come out of what’s happened on international students, you can understand that we want to make sure protections are in place for students.

How do we know that students are going to be protected with this new piece of legislation?

Hon. L. Beare: I thank the member for the question, and I love the frame. I agree with the member. Absolutely, always, it should be framed in students first — everything we do. I hear the member around the framing of this bill. It’s a very unique bill in the way it’s structured, and I appreciate that.

First Nations mandated institutes are accountable to the First Nations and the communities that created them. So the communities and the students that are within the community…. The First Nations mandated institute is ac­count­able to those nations who created it.

Now that being said, absolutely, I just explained in one of my previous answers there that the ministry will take that same approach. When we’re looking at an institute who is facing challenges, potentially, it will always be student-centric, and the support that the ministry will give in looking at challenges with an institute always comes with that student-led focus.

I thank the member for the question.

C. Oakes: So how would we…? Going back to the student. A student is attending one of the mandated institutes and is confronted with a challenging situation through the post-secondary institution but feels very uncomfortable going, because, again, it could be a small community, and they may feel very uncomfortable bringing forward concerns about safety or education.

Have any checks and balances been set up to provide students with the ability to reach out if they need additional support, if they’re uncomfortable, in their local community, accessing that?

[2:30 p.m. - 2:35 p.m.]

Hon. L. Beare: Thank you to the member for the question.

I understand what the member is asking about in protecting students. Absolutely, we share that commitment.

I think what’s really so unique about this piece of legislation is that it’s in direct response to what Indigenous communities were asking for. It’s in direct response, in fact, to the UN declaration, specifically articles 14.1 and 14.2. Article 14.1: “Indigenous peoples have the right to establish and control their educational systems and institutions providing education in their own language, in a manner appropriate to their cultural methods of teaching and learning.”

So very much this is about reconciliation and about understanding that Indigenous communities have made it clear they are best positioned to provide that education to students and to provide the support for students. That was what was requested by nations, and that’s what’s being given in this legislation.

C. Oakes: I can certainly understand…. I mentioned that I have the privilege of having an Elders working group that I’m very, very grateful for. They talk about the wraparound support and the needs for their students to achieve success. I fully understand that and appreciate that.

Maybe this is a good moment just to get on record…. I probably don’t expect an answer right away, but I just think it’s very important to provide a piece of information. In my community, Lhtako First Nation is one of the seven Dakelh Nations alliance. I’ve talked about them before. They’re doing an amazing job on building capacity up in the community. I have so much respect for the fact that they’re looking at: “Okay, well, we want to have a nurse, and we’re getting training for the social worker,” so that all the wraparound supports….

It’s one thing for us to bring in legislation, to talk about reconciliation. But how do we really ensure that we are building up capacity in our communities? That’s something that I spend a lot of time with our working group thinking about.

For example, the LPN program is critically important in our area, but I just found out that that program is not running in the fall. We’ll talk about that at a future time. I just thought I’d put that in the record so that you know that we can have that conversation.

I guess that aligns with the conversation we had during estimates about that idea of connecting the workforce development agreement funding that comes from the federal government, that comes to the province, to say these are the in-demand professions that are critically important. As we build out community and lift up and grow capacity in all of our communities, that connection with some of the access to federal funding is critically important.

[2:40 p.m.]

Have there been any agreements done, as we’re looking at this piece of legislation, or conversations with the federal government on how we can align some of that federal funding to First Nations that are looking at growing capacity in those in-demand fields such as nursing, education, child care, those critically important professions in our small communities?

We have identified legislation. We have brought forward legislation, but we really need to now direct some re­sources to helping train in-community in order to enact that and provide that self-determination in-community.

Hon. L. Beare: Yes, we do exactly do that, and I thank the member for the question.

We work with ISET when we’re allocating our Indigenous skills training education funding. That’s in partnership with the feds, and we do continue that work and have those conversations exactly around what the member was discussing.

Clause 6 approved.

On clause 7.

C. Oakes: This is about interim capacity funding. It talks about it: “…capacity funding must be provided to a mandated institute that has a funding agreement under this Division.”

Going back to not having clearly defined what a “mandated institute” is, or a “listed mandated institute” versus a “mandated institute,” if somebody doesn’t actually have an agreement, how will they be able to access capacity funding?

Hon. L. Beare: Right here in section 7 is the interim capacity funding, as the member mentioned. This is separate from the ongoing funding. This is very much for institutes that haven’t met that criteria, are not yet eligible for the operational funding that will be allocated, the $6 million. This is the $450,000 that we talked about to build capacity, so institutes that are working towards becoming eligible and are continuing to do that work.

There will be a call-out, as we do with all funding, and institutes and nations will be able to apply to this $450,000 in capacity-building to help their work towards becoming one of the institutes that are funded under the operational grant.

[2:45 p.m.]

C. Oakes: Has there been any discussion of some of the potential types of funding agreements that could be made for building capacity? Was that in any of the conversations?

Hon. L. Beare: Some examples of what has been funded so far would be needs assessments for community or planning work.

Clause 7 approved.

On clause 8.

C. Oakes: I think the next part is important, because it talks about or it directs that the minister, at least annually, must provide mandated institutes, other than the listed mandated institutes….

We probably should have found different language around that. A listed mandated institute, and a mandated institute — it’s a little confusing. If I get them confused, my apologies. Other than the listed mandated…. So mandated institutes, not listed mandated institutes, to submit proposals for capacity funding….

I do agree that one of the things, having been engaged with this sector for a long time, is that trying to find the capacity to write the grants is a significant challenge. I guess the second piece that I also hear is often it’s very difficult to find the person to write the capacity grants in order to access the funds.

Has there been any discussion on the type of support that perhaps the ministry may offer to help support the mandated institutes to actually write capacity grants?

Hon. L. Beare: Support is provided through IAHLA, the umbrella organization. As well, institutes are always able to contact the ministry for guidance as well.

C. Oakes: Going back to my riding, and only because it’s the one I’m obviously most familiar with, across this province and in my area, I’ve got a lot of smaller First Nations Indigenous communities that really would, in a lot of regards, benefit the most from the type of supports that we’re talking about, because they are remote wilderness Indigenous communities that really require the development and support for capacity-building, yet they may be the least connected in to some of these opportunities.

I think the conversations I’ve had with Elders in, say, a community like Lhoosk’uz Dené are between health care and education. Now we’re heading into wildfire season. They’ve got all of these tremendous challenges in the communities. The amount of workload that is happening to find somebody to actually write a capacity-building grant is going to be a significant challenge for some of our smaller First Nations communities.

[2:50 p.m.]

Will there be any outreach done by IAHLA and some of these other organizations to maybe look at…? I get that the minister will put out this call at least once a year, but recognizing that some of the First Nations may not be following what we’re doing as closely, from a day-to-day perspective, I’m wondering how we can — all members of this Legislature — support making sure our First Nations know that there is a call for support for this capacity funding and how we can support them on putting in an application.

Hon. L. Beare: A couple of pieces. My ministry, within it, has an Indigenous policy and engagement branch. We do that outreach, so yes. Actually, it’s built into the legislation we’re looking at as well. The applications are going to be…. The actual application form will be co-developed with First Nations. That’s under section 10 and, as well, 12(e), where it’ll be co-developed to ensure that those traditional barriers that exist within applications won’t be there for a community.

C. Oakes: When we look at partnerships, in so many of our communities, there’s a very strong partnership with our Indigenous communities and our public post-secondary institutions, so campuses across this province, particularly colleges. They also comment on the challenge that sometimes it is for capacity, especially our small rural colleges.

How will the partnership or the…? How will colleges be included as part of this conversation in support of Indigenous First Nations in their communities that the colleges also provide educational opportunities to?

[2:55 p.m.]

Hon. L. Beare: A two-part answer here for the member.

Many institutes do have partnerships with colleges already. It’s really that opportunity to ensure that the education that’s being provided at the First Nations institute ladders into what the colleges are doing so that students can have that seamless transition.

But the second part is that one of the biggest barriers to having more of those partnerships or building more has been funding and institutes not having ongoing operational funding, which gives them therefore the capacity to build those relationships and those partnerships.

So we’re tackling it on twofold.

C. Oakes: We have two incredible First Nations language instructors, Doreen Patrick and Ellie Peters, who have been teaching me Carrier. I’m trying, and they are doing a great job teaching so many people because I do agree that the Indigenous language is critically important around language revitalization, that we’re supporting.

They are working with the University of Northern British Columbia on that training. I know we canvassed the public post-secondary before, and I’m just trying to understand this piece from a capacity-building perspective. Would UNBC be eligible to access capacity funding if it was a program that was designed to provide the Indigenous language program, for example, that Ellie and Doreen provide in our community?

Hon. L. Beare: The short answer is no. UNBC wouldn’t be able to access that. That capacity funding is very much for the First Nations–mandated institutes. But UNBC can access is the Indigenous skills-training education. I’m happy to provide that information for the member. We work directly with UNBC, and we’ll make sure they have that as well.

C. Oakes: Thank you for that because UNBC asked me when I met with them. So that answers that question.

Oh, actually, we can go on to the next one.

Clause 8 approved.

On clause 9.

C. Oakes: This is how the minister makes the decision on who receives the capacity funding. I probably know the answer to this. It’s probably going to be in regulation after. How will the minister decide who actually gets the capacity funding?

[3:00 p.m.]

[R. Leonard in the chair.]

Hon. L. Beare: As we outlined before — that the actual application and the process will be created in conjunction with the First Nations partners who have co-developed this legislation — once that application criteria process evaluation is created, that will come into the ministry and, ultimately, to the minister for final approval on funding allocation to enter into the agreement.

C. Oakes: Will there be…? I guess I’ll probably have to wait. But what happens if the First Nations disagree with the minister’s approval process of who receives the funding? Will there be something built in the regulations to provide First Nations with the authority or the ability to challenge the minister’s decision?

Hon. L. Beare: That will be part of the process that we’re developing with First Nations.

Clause 9 approved.

On clause 10.

C. Oakes: This is about how applications will be made for operating funding. Could the minister provide some insight into the type of information that will be required by the minister in this clause?

Hon. L. Beare: It’s a very similar answer to the other two that we had — that that is being developed with First Nations. I don’t want to predetermine any eligibility requirements to the capacity, but really the goals of ensuring that the applications and proposals are consistent, that all the necessary information is required to determine ineligibility, those would kind of be the pieces, ultimately, we’re looking at and then co-developed with First Nations.

C. Oakes: It does provide quite a bit of power with the minister. I certainly respect and have worked with the minister for many years and know that the minister would be very fair in this process. But what happens in the future if somebody else is in the position? There is really…. Again, that checks-and-balances piece hasn’t been identified yet because I think we’re looking out….

So much of this bill is in regulation. I guess it’s just critically important for me to put on record that accountability piece. Like, how do we ensure that the minister will be accountable and fair in this process?

[3:05 p.m.]

Hon. L. Beare: Again, we will be building that criteria alongside First Nations. There will be those pieces, as we talked about, in a couple different areas around providing funding. What it looks like if a First Nation disagrees with the minister — a decision will be co-developed alongside the First Nations.

What I will say is that essentially, ministries do this on a regular basis, the granting process, and that fairness is built in into the ministries — all the checks and balances, everything outlined by the Auditor General. As the member knows from being a cabinet minister, there are a number of those checks and balances already pre-built into the ministry outside of the legislation.

Clause 10 approved.

On clause 11.

C. Oakes: That gets us to the checks and balances piece. One of the pieces that is guided by public post-secondary is the budget measures and accountability act, which re­quires all institutions to be…. There’s a framework around budget accountability. Could the minister outline what the accountability measures will be around these funding agreements?

Hon. L. Beare: A template for funding agreements will be developed in consultation and cooperation with First Nations and will have a provision for addressing reporting requirements. The reporting is intended to only support administration of funding. For example, to confirm ongoing eligibility and support ministerial accountability, be­cause First Nations-mandated institutes are accountable to their First Nation.

C. Oakes: Just going back to…. It’s the Budget Transparency and Accountability Act. I had the wrong…. I forgot the “transparency” piece. As we’re dealing with public funds, everybody is required to meet that framework. This is a piece of legislation that is talking about taxpayer-funded money.

Will this piece of legislation follow the same requirements as the budgetary accountability and the Budget Transparency and Accountability Act, which is law in B.C.?

Hon. L. Beare: The reporting back is solely for what the member is asking about. That is the purpose of the reporting. It’s specifically outlining the use of funding and confirms ongoing eligibility and supports ministerial accountability.

Clause 11 approved.

On clause 12.

C. Oakes: This moves into the governance process. Of course, post-secondary institutions currently today, both public and private institutions, have a very significant governance framework for protection of both the students and the taxpayer-funded institutions.

[3:10 p.m.]

What will the governance structure look like for this piece of legislation, in partnership with the listed mandated institutions as well as the mandated institutions? Will they have to follow similar governance process as public and private post-secondary institutions?

Hon. L. Beare: These Indigenous institutions are legally established entities already, so they’re either established under the Societies Act or under the corporations act. So that provides the governance structure.

C. Oakes: This is the first piece of legislation that has been brought forward that clearly directs…. Or it’s a new form of directing annual operating funding, taxpayer funding, which normally, under a process of government, has the accountability framework.

Will this piece of legislation also have…? How will the accountability framework work with this piece of legislation, which is required by other pieces of legislation and other bodies, ministerial bodies, that utilize taxpayer funds?

Hon. L. Beare: Government isn’t governing these institutions. They are individual entities. What we’re putting in place through this legislation is around the ability to provide operational funding, as we’ve clearly established through this. So this is consistent with oversight for other similarly established entities.

C. Oakes: This isn’t similar, though, to how we provide funding to other oversight or funding to other post-secondary institutions.

Whether it’s the public post-secondary institutions or the private post-secondary institutions, they are required, around the accountability framework, to provide things such as an annual service plan. Under that annual service plan, they’re required to do planning context, strategic directions, goals, objectives, key criteria, performance measures, performance targets, summary and the financial outlook. So within the post-secondary field, as the minister well knows, there are requirements in both those sectors.

This is a bill around post-secondary institutions. Will the traditional accountability mechanisms and oversight that both public and private post-secondary institutions have to meet that threshold…? Will that same threshold be applied in this piece of legislation?

[3:15 p.m.]

Hon. L. Beare: No. What the member just read out is for public institutions that are within the government public reporting entity. These institutes are independently created and either under the Societies Act or the corporations act and, therefore, not part of the government reporting agency.

What we are doing…. This legislation is creating the ability to fund them on an ongoing basis, but they are not part of the government reporting agency for the governing piece.

As I outlined a minute ago…. As we mentioned earlier, the reporting pieces that are required are for the ministerial accountability around reporting of funding and to ensure that the funds are being used in accordance to the agreement.

C. Oakes: So there is no public reporting mechanism for the funds that will be allocated?

Hon. L. Beare: We just reviewed, under section 11, regarding the requirements around accountability on the funding that would be allocated. So that is the ongoing piece of reporting back into the ministry.

C. Oakes: I think it’s important to look at a number of things. We started the conversation yesterday about first…. NVIT, as an example, were not able to access funding for this, and they’re held to a whole different level of standards.

NVIT, which is a mandated First Nations institution, because it exists in the public system versus the private system, is required under law, under legislation, to meet an incredible amount of threshold. They have to have the accountability framework. They’re under probably the colleges act. So they have to meet the colleges act. They have to do the accountability framework. They have to probably meet quarterly. They have to do quarterly plans. They have to do an annual service plan, and we’ve heard that they’re struggling financially, as so many of the public post-secondary institutions are.

Now we’re setting up another piece of legislation that is funding a whole other set of post-secondary institutions that don’t have to meet the same levels or same threshold or accountability mechanisms.

How does this put, for example, a public institution such as NVIT that does tremendous work…? Doesn’t it put them at a disadvantage? Are we not creating a bill that puts a public post-secondary institution, the mandated First Nations institution, at a disadvantage by this very bill?

[3:20 p.m.]

Hon. L. Beare: Not at all. NVIT receives core funding through the College and Institute Act, as we established yesterday, and as a public, they are subject, as all our publics are, to the specific accountabilities and reporting that are laid out in the colleges and the universities acts around government reporting entities.

As private First Nations–led institutions, the First Nations–​mandated institutions are either independent societies or corporations, however it is they are set up, and they’re accountable to those acts, the societies and corporations acts. Ultimately, they’re accountable to the First Nations communities who created them. That is where the accountability is for these institutions.

As the member and I canvassed just in the previous section, around the funding, the institutes are accountable around their funding agreements to the ministry and to myself to ensure that the ongoing funding is used to support that ongoing eligibility and to support any ministerial accountability I have for reporting on that funding.

C. Oakes: I’m still trying to wrap my head around the fact that…. Again, what would prevent NVIT saying, “Actually we’re probably better off”? If you go for, under this bill, this funding pocket, you don’t have to do the same level of work as you do under the public sector. So you’re setting up two complete systems of post-secondary education that….

As a First Nations body under the public sector, you have to do X, Y, Z. You have this whole list of accountability, framework agreements and service plans. So NVIT has to do all of this list of checks and balances, but we’re bringing forward a bill that now, if you go in the private sector, you don’t have to meet the same level of accountability, service plans, agreements, and that financial accountability doesn’t exist under this piece of legislation. So there’s a disadvantage for….

So NVIT, in the public sector, is now disadvantaged by this bill, which is the private sector, but you don’t have the same accountability framework requirements under that. It’s two different systems with two different accountability mechanisms. Doesn’t it put the public sector at a disadvantage?

[3:25 p.m.]

Hon. L. Beare: Simply, no, I don’t agree with the member’s premise. These are, completely, two different types of educational institutes. NVIT worked really hard in 1995 to become a public institute and everything that’s associated around it. The size and the scope and the difference within a public institution is entirely not comparable to when we’re discussing First Nations–mandated institutes that are community created and led by First Nations. We’re talking about entirely two different types of institutions on the scope and scale.

Obviously, public colleges and universities, being part of the government reporting entity, have a whole different size and scope of scale on reporting. As community created private entities, First Nations–mandated institutes are dealing with an entirely different subset of pieces, whether it be the governance through the societies or corporations act, the accountability back to the community and any funding agreement that I’ve made with them.

C. Oakes: For protection of workers, will there be any kind of collective agreements for the people working in these institutions?

Hon. L. Beare: That’s up to First Nations.

C. Oakes: Thank you very much. But the minister does have a responsibility. All of this comes down to, basi­cally…. We canvassed that earlier in the bill about the responsibility of the minister.

So how is the minister ensuring that…? We don’t have a framework in here that protects students, and it now sounds like there isn’t a framework within this piece of legislation that protects workers. How are workers and students to be protected when it ultimately is under the minister’s…? All of this is around the minister’s responsibility through earlier sections of this bill.

Hon. L. Beare: As we canvassed earlier, what’s absolutely amazing about this piece of legislation is that it was co-created with Indigenous peoples, with First Nations communities, and is a direct response to the calls to action in the Declaration Act, specifically Declaration Act, 14, 1: “Indigenous peoples have the right to establish and control their educational systems and institutions providing education in their own languages, in a manner appropriate to their cultural methods of teaching and learning.”

This is reconciliation — exactly what’s happening right here on the page and exactly the work that we’ve been doing with institutions. They’ve made it very clear that they want to be…. They have the right and want to be in control of their own education systems. This is the act that allows them to do that.

Clause 12 approved.

On clause 13.

C. Oakes: Could the minister describe what the Offence Act is? I’m not actually familiar with that.

Hon. L. Beare: Nowhere in this legislation do we outline any offences, any penalties or any requirements that would be considered under the Offence Act. So that’s why it’s here.

C. Oakes: My question was that I don’t know what the Offence Act is. If the minister could kindly provide me…. I’ve never…. I wasn’t familiar with that act.

[3:30 p.m.]

Hon. L. Beare: I am very aware that the member is really good at her Google skills, as she outlined in estimates debate. The member is really good at pulling up things that I don’t know.

For both of us on this one, this act is a general application that deals with the prosecution of provincial offences.

Clause 13 approved.

On clause 14.

C. Oakes: As we come to the close of this bill, perhaps the minister could walk us through the timeline of what we’re looking at to bring this force into regulation. What will that look like?

Hon. L. Beare: We anticipate that the legislation will come into force in early 2025, if not sooner, if not before. There’s a lot of collaborative work to be done before then on defining the processes that the member and I talked about as we canvassed this legislation. We want to do that work in a good way with our partners and make sure that those procedures are in place to support these Indigenous institutes and make sure that those processes are in place.

C. Oakes: I guess, in closing, I just want to, first, thank the staff for the work that they’ve done on this. I really appreciate it. I think it is really important that we look at ways to build capacity in our Aboriginal communities.

Something I’ve been very passionate about is how we look at breaking down barriers. I truly hope that this is a piece of how we can break down barriers. I would just ask as we move forward in this process if you would keep us informed so that we can help get that information out into our communities. It doesn’t matter what side of the aisle we sit on. We all want good things for our communities and for Indigenous and First Nations communities.

With that, I have no further questions.

Clause 14 approved.

Title approved.

Hon. L. Beare: I move that the committee rise and report the bill complete without amendment.

Motion approved.

The committee rose at 3:33 p.m.

Committee of the Whole House

BILL 22 — SAFE ACCESS TO SCHOOLS ACT

(continued)

The House in Committee of the Whole (Section B) on Bill 22; R. Leonard in the chair.

The committee met at 3:50 p.m.

The Chair: Good afternoon, Members. I call Committee of the Whole on Bill 22, Safe Access to Schools Act, to order. We are on clause 1.

On clause 1 (continued).

M. Lee: We were having this discussion about multi-use buildings and, because extracurricular activities are not covered in the definition of “school,” whether, when we’re dealing with part of a facility that is operated by an education authority….

Coming back to the definition of school, when we say “a facility operated by an education authority,” would that include a community centre or a synagogue or a place of worship where a school is operating either in terms of an extracurricular activity or a playing field where we know that students are going to play sports, go to track and field? Is that place, which is not a facility, covered in terms of ensuring that students, young people are protected against disruptive protests for extracurricular activities?

Hon. N. Sharma: The answer is it depends. The construction of the act is that under the definition of school, it says the facility must be operated by an educational authority. So if it’s operated by an educational authority, including the list of independent school authorities that we mentioned last time, which could be religious school authorities… If the facility is operated by that educational authority, then it would apply under these protections.

M. Lee: Right. The Attorney General is indicating that, of course, if an education authority includes an independent school authority and that independent school authority was a….

We talked about the B.C. Muslim Association, for example. If they were recognized as an independent school authority, then if they were operating that mosque which educational programs were conducted out of, then they’re in part a facility that would be, for the purpose of clause 4(2), when we get there, a multi-use building where we have an education program.

I will acknowledge that that’s the Attorney General’s response in terms of how that might work and that mechanism. It does depend on the circumstance, as the Attorney General says. If I have that wrong, if I don’t have that as the correct understanding of what the Attorney General has indicated over successive answers, then she can correct me — if there’s any clarification she feels necessary on that.

It does leave me with the other aspect of school, which is that it doesn’t include, as defined in clause 1, extracurricular activity. So when we’re just talking even about how the definition of school is utilized in subclause 4(2), relating to a multi-use building, it doesn’t actually include extracurricular activities, which is my point that I’ve been trying to make and the concern that I’ve been trying to raise. So I would like again to give the opportunity to the Attorney General to address that concern.

[3:55 p.m.]

Hon. N. Sharma: To answer the question, we need to look broader than section 4.

Section 4 is specifically concerned with the kind of parcel and geographic location of the access zone, whereas I think the member’s question is related to whether it covers extracurricular activities. And that is more considered in the bill in other sections when it talks about the timing of the access zones and where that would be in place and that it could be outside of the hours of school for extracurricular school activities.

M. Lee: Okay, so I take from the Attorney General’s response that there is no further clarification necessary about the characterization of activities through an independent school authority in a school. There is an opportunity, depending on the circumstances, depending on whether that particular community organization or religious organization is viewed to be or referred to as an independent school authority.

I also acknowledge the Attorney General’s response in terms of clause 5 of the bill. So with that, I have no further questions on clause 1, but I do also recognize that with the Attorney General’s recognition, she has been given the flexibility to speak to other clauses in this bill, including clauses 2, 4 and 5. We’ve had a fairly fulsome discussion, but we will still look at those clauses, of course, as we go past clause 1 at this stage.

I would just say that we have attempted here, on behalf of the official opposition, to expand the scope of the bill to include faith-based gathering places and ethno-cultural community spaces. We have talked about essential infrastructure. Those have been not provided or enabled or allowed to move forward by way of amendment. We have talked about some of the considerations around how this bill, through definition, will be applicable to various activities, including extracurricular activities, activities of students off and outside of schools, whether they’re in a multi-use building or not.

The Attorney General has given some responses to try and clarify how the bill might be applied. But I do think there’s still some latitude or some question marks relating to the definitions in this particular clause.

With that, unless there are any further questions from any of my other colleagues on clause 1, we will stand down on clause 1 and look forward to the further discussion on clause 2.

Clause 1 approved.

On clause 2.

M. Lee: On clause 2, just to see that we’ve got the five elements of clause 2 in respect of…. In terms of disrupting an extracurricular school activity… Just to ask the question in this context, where we’re looking at a person must not, in an access zone for a school, disrupt the provision of an extracurricular school activity…. Is the Attorney General then comfortable that that is appropriately addressed by clause 5 of the bill in terms that would…?

In clause 5 of the bill, and here now, we’re talking about where access is protected. This is the area where in clause 2(1)(b), we see the words “extracurricular school activity,” which has been a focus for the member for Coquitlam-Maillardville and myself in the context of all of the conversations we’ve been having debate-wise on clause 1.

Clause 5, as the Attorney General referred to earlier about extracurricular activities, is really about when an access zone is in effect. That’s literally the heading.

[4:00 p.m.]

Again, I would say, as I have tried to identify with the definition of school, which is limited to only an education program, that there’s still a gap in this bill. There’s still a gap to cover extracurricular school activities. And even though the Attorney General will point to clause 5, that’s a scheduling aspect. That’s not actually relating to ensuring that the access zone covers extracurricular school activities in the course of 4(2), multi-use buildings.

I appreciate that clause 2, which we’re debating now, does refer to extracurricular school activities. But clause 4(2) does not. We will talk about that again if we get the opportunity, time permitting.

Again, to the Attorney General, on the extracurricular school activity for an access zone: where is that protection actually set out, that an access zone would apply to extracurricular school activities?

[4:05 p.m.]

Hon. N. Sharma: To explain to everybody, I’m going to break it down one more time in terms of how the operation of this act applies, and it has complexity because of the wide range of natures of educational authorities out there operating schools.

First of all, the definition of “school.” We talked about it in my last answer. It’s a facility or part of a facility that’s operated by an education authority, and we went into some detail about how education authority could be an independent school authority, which includes religious organizations. It could be operated out of a religious facility.

Once you’ve defined “school” with the legal constructs that get us there, you set up an access zone that’s the…. And there are two ways. One is if it’s a multi-use building, which is set out section 4, and one way is that if it’s not a multi-use building, you set out that parcel of land for the school and the 20 metres around it.

Now you’ve set that out as your access zone. The next step, then, is the timing of protection and the activities that are protected. So the timing is pretty clear. That access zone is protected from 7 a.m. to 6 p.m. So if it’s an extracurricular school activity that takes place between those hours, then you can see that it’s automatically under the protection of that access zone.

The extension also exists by including extracurricular school activities, and that is in section 5, I believe, that says…. You know, there are going to be instances where there could be an extracurricular school activity that’s outside of those hours of seven to six that are automatically under that access zone, and in those circumstances, we wanted to make it clear in the bill that those activities are also protected. It could be a Saturday or could be another time, but if it’s on what’s defined as that school, then extracurricular school activities are also protected.

M. Lee: I know that the Attorney General has referred again to clause 5. We will get to clause 5, certainly, but I appreciate the opportunity to just, again, clarify, though, that what the Attorney General is referring to is still when the access zone is in effect for the following times. That is the further lead-in language to the two provisions that the Attorney General spoke to.

Again, I do not see the actual protection other than reference in clause 2 to extracurricular activities. This is something that we will continue to pick up in the subsequent discussions relating to clause 4 and clause 5. But I just wanted to note that I have a different view from what the Attorney General indicated in respect of what clause 5 actually does in respect to prohibiting or protecting students in extracurricular spaces. That is just referring to time, not the actual protection itself.

I will just register that and turn that over to my colleague the member for Coquitlam-Maillardville.

S. Robinson: I find it really helpful when reading a bill like this that has many complexities to use examples that help us understand how this can be used as a tool, as the Attorney has reiterated over and over again.

I’m thinking about a track meet, for example, an extracurricular activity. I’m thinking about, in fact, a private member’s bill that came forward today that got shut down around who is considered what gender. I’m thinking about what’s happened in real life, where protests can manifest at the municipal track and field facility. So it’s not a school, but it is definitely a school curriculum, because it’s a competition between athletes in different schools.

[4:10 p.m.]

I’m wondering if the Attorney General…. I know what the intent is of this bill. I fully understand the intent. I just want to make sure that I understand how this tool would be used in order to protect those children that we know are vulnerable, that we know can be at risk.

This isn’t about the content. I don’t want to get distracted by the content, but any kind of protest can happen at a municipal site that is not a school but that is supported and recognized as a school activity, an extracurricular activity.

Hon. N. Sharma: In the scenario described by the member…. I think we talked about it at length last time in the debate. You have to understand the right tool for the right situation. We all want to protect kids in all scenarios, but every tool is not going to be available or constitutionally available in every situation.

The way we designed the access zone to balance constitutional right and freedom of expression with the protection of kids was very carefully throughout it. So it’s temporal. It’s geographical. There’s certainty in the hours. The legislation has a sunset clause.

You can’t design a tool that is a regulation that sets up an access zone that is for something that happens once a year at a municipal track meet. There are pretty clear reasons for that. There’s lack of certainty for people knowing when or when they wouldn’t…. By just showing up at that track field, they wouldn’t be able to exercise their constitutional rights of political expression.

There would be tons of other legal issues just even using this tool by regulation for something that happens you don’t know when and you don’t know for how long, at different amounts of times, on other lands.

Not to say there aren’t other protections that may be available for that group, as described by the member, that would be about protective measures for that very in-time, in-place track meet that is described on municipal grounds. But this tool is very specifically designed for schools and constructed in such a way as to be a measure that is pretty extraordinary as a legal tool to balance constitutional rights appropriately.

S. Robinson: If I’m to understand…. I keep coming back to the explanatory note, because I think it’s the place where it helps anyone understand the intent. I want to suggest that the explanatory note isn’t as clear as the member just suggested, because part of what I’m reading is that there’s appetite in this legislation to protect schools, not necessarily children.

If we’re really committed to protecting children, then I would think that a tool that protects children would be about…. The focus would be where the children might congregate, might participate. But the way I am reading this, it’s about the physical buildings of schools.

You might have just a handful of people at a school, a handful of students and staff that might be on site, and they get protected by this tool. The bulk of the student population and the teachers and the staff might be elsewhere, but they won’t get the same protection because it really is about schools and not as much about the people that are in the schools. I just want to make sure I’m understanding that distinction.

[4:15 p.m.]

Hon. N. Sharma: This is very much about protecting people. I just want to point out in the explanatory notes it’s very clear, our intention in the construction of the bill. It says that this bill protects access to schools. We heard from staff. We heard from parents. We heard from students that were experiencing the distress of disruption in activities on their school grounds.

I answered in detail previously, and I won’t repeat my­self, the distinction between the right tool at the right occasion and that you can’t create an access zone that just follows around a group of people wherever they go out into the world. That’s not how balancing political expression or political rights works, and that wouldn’t stand up in court.

What you can do is establish in certain extraordinary circumstances, and we would say balancing the protection of kids and parents and teachers and their access to education is that circumstance, that you can create an access zone in a geographical area that is balanced and restricted appropriately to design that.

Our intention is, and it states it in the explanatory note, to protect access to schools.

S. Robinson: Just going back to the explanatory note, which, as the Attorney General says, does say access to schools. It also says: “Prohibiting protests and other conduct in those zones that impedes access, disrupts the provision of educational programs or extracurricular school activities….” I would argue that it disrupts the provision of some educational programs or extracurricular school activities.

In the note, it implies that all of these activities would be protected. And that’s, I guess, where I’m trying to understand that it can’t be used to protect all of these activities, given that all of these activities don’t necessarily happen in the school proper. They can happen in other parts of our communities. I’m wondering if the Attorney General can just sort of explain how she makes that distinction.

Hon. N. Sharma: I’m happy to answer, briefly, again. Chair, I take your guidance, but I believe I’ve answered this question in many different ways about how the construct of the bill focuses on a school and defines a school in various different ways to include independent schools and other school authorities or educational authorities. And then it seeks to protect the educational programs and extracurricular school activities and providing safe access to schools, which is inherent throughout this legislation.

S. Robinson: In this section, access protected, it’s the first place where we come to this idea of how “a person must not, in an access zone for a school…disrupt the provision of an educational program or extracurricular school activity.”

Extracurricular school activity is not in the definitions, and the Attorney just said that an extracurricular school activity that’s a one-time would not be considered a regular thing. Yet you can have a one-time school play, for ex­ample, that happens after school that happens three days in May. I’m thinking about the high school in my community. That isn’t a predicted time, because that only happens once at the end of the school.

[4:20 p.m.]

I’m just trying to understand: what’s the definition of extracurricular activity? Is it an ongoing weekly thing? Does it just happen once in a while? I just want to make sure that I understand, as we talk about extracurricular school activities, what the public can expect from having a tool like this.

Hon. N. Sharma: Extracurricular school activities could include things like sports team practices, musical theatre productions, dances. It wouldn’t include the use necessarily by other community groups of the school area, as it’s meant to be focused on the students and the kids that are in that school or in that access zone. Those are some examples.

S. Robinson: Is there a particular reason why extracurricular school activity wasn’t listed in the definitions section?

Hon. N. Sharma: I believe I answered this one previously. This particular bill is not…. It’s a time-limited, temporal, extraordinary measure. So the construction of this didn’t want to complicate by adding or subtracting definitions that didn’t exist already in the tons of legislation that deal with schools in our province. As extracurricular school activity is not defined in any other statute, we didn’t want to define it in a way that might affect other legislation, given that this is a time-limited statute.

Extracurricular school activity was important to put in there, particularly because once you establish an access zone around that school, we wanted to make it clear that outside of the times of seven to six, there may be activities that are school activities, but they are extracurricular school activities, that we would seek to protect if those kids are in that access zone. That was the reason of putting that in there.

Obviously when you make a regulation, or when you go to the point of making those regulations, you can then have the information before you about what the specifics are about the area that you are protecting and know a little bit more about how to apply it to that fact scenario.

M. Lee: Just on clause 2. The Attorney General has been referencing the requirement that is on government, certainly, as the courts have seen, to demonstrate a pressing and substantial objective, minimum impairment of this legislative tool, this instrument that Bill 22 represents, and some level of proportionality, consideration, as spelled out in decisions like the Oakes decision.

I would ask the Attorney General…. When I look at the statements that have been made by the Premier relating to this bill, as well, referring to the learnings or at least the understanding of…. Certainly during the pandemic, where hospitals and health care workers were targets of anti-vaccine protests, there obviously was a previous bill or act in place to address that concern. The Premier has referred to schools increasingly becoming the target, and we’re taking similar action to ensure classrooms are safe for kids.

Another way of just understanding the government’s approach to this bill, other than the response the Attorney General has given, again, relating to extracurricular activities, is that even the Premier in his public statements around this bill and this action refers to classrooms.

[4:25 p.m.]

I wonder, first of all…. I am sure the Attorney General, through the Ministry of the Attorney General, has done the appropriate analysis to ensure that this, from the government’s perspective, meets the requirements, when we’re talking about restricting freedom of expression or other Charter rights, that it is pressing and substantial, that it’s a minimum impairment, and the instrument itself is proportional in the response.

In that respect, is that the reason why this bill is characterized or framed in such a narrow way, without clarity around extracurricular activities as well, and that the activity would be there by way of regulation? Is this what the government’s position is?

Hon. N. Sharma: I gave an answer previously of why we didn’t set out a definition of extracurricular school activities. I just wanted to say that I think it’s best understood reading everything, all the sections, kind of together, and understanding the construct of the bill.

If we think of section 2 being what’s prohibited, that would be the behaviours that are prohibited in an access zone. Section 4 is setting out the where: where is the access zone, including in multi-use buildings? And section 5 sets out the time periods. The time periods are where you have the extracurricular school activities, to make it clear that if extracurricular school activities are happening in that access zone, that the time period includes those times of when the access zone is in place.

The Chair: If members could just help the Chair see the connection to clause 2 as opposed to 4 or 5 — like, jumping around. If you could just help me understand how the questions are relating to clause 2. I’m just feeling like that might help us get through this a little better than jumping back and forth.

M. Lee: I believe the Attorney General actually, in re­sponse to our question on clause 2, referred to the other clauses. The reason for that is because, as the Attorney General said, the access protected under clause 2 is around these sorts of activities in the access zones set out for the school. She did bypass clause 3, which I do want to speak to, which is the establishment of the access zones by the Lieutenant-Governor-in-Council after this bill comes into place.

The Attorney General went on to say what is included in the access zone. That is certainly the subject matter that we’ve been discussing under clauses 1 and 2, in respect of the nature of what is covered here — that it is not just an educational program, but it ought to be an extracurricular activity, even though it’s not defined under the bill. And also that clause 5 deals with the access zone in terms of the time for which the activity is to be protected at schools.

[4:30 p.m.]

Again, emphasis is on “at the school,” as opposed to in a multi-use building, which could include another site or another facility outside of the school location. So that’s the reason why, Madam Chair, the Attorney General, I believe, in response to our questions, is referring to other clauses of the bill.

In respect of the Attorney General’s response to my question, I again would say that in respect of clause 2 and what is covered here, there seems to be some degree of focus that is narrow. I have heard the Attorney General in a variety of ways, through the course of this bill debate and committee review, give indication as to why it is the government’s position, despite all of the other considerations and concerns that we see in other locations, including on university campuses that my colleague will speak to in a moment again….

This is just another set of examples of…. Are we sure that this government is taking every opportunity to protect our young people, our children, those who are seeking education and extracurricular activities in the way they need to be and being protected in those activities? Again, I will at this point invite the member from Coquitlam-Maillardville to ask further questions relating to the coverage of clause 2.

S. Robinson: In clause 2(1)(e), it lists: “Subject to this section, a person must not, in an access zone for a school, intimidate or attempt to intimidate a person or otherwise do or say anything that could reasonably be expected to cause concern for a person’s physical or a mental safety.” This clause speaks to the ways in which the assessment is made about whether or not to invoke this tool. Is that an accurate reading that I have on this?

Hon. N. Sharma: The way that the legal tool would be employed is not that that section the member mentioned would invoke the tool; it would be that a regulation has established an access zone around that area and that school ground in the 20 metres — or if it’s a multi-use, in the way of section 4 — and that these behaviours are then prohibited from happening in that access zone.

S. Robinson: Thank you. That’s helpful. So why would these behaviours be a problem?

Hon. N. Sharma: I think the member would agree that the types of disruptions we’ve seen on school grounds are a problem, so the purpose of this legislation is to protect kids when they’re accessing a school and an educational program on their school grounds from this type of behaviour. We heard it from parents, we heard it from teachers, and we heard it from students that this was necessary.

S. Robinson: I agree with the Attorney that these are problematic behaviours. They are harmful to people. They are harmful to children. Intimidation and tactics used to make people have cause for concern for their physical and mental safety, I think, is the key here, that those are the elements that are harmful to people and particularly to children.

The Attorney had talked on Thursday about a list of tools, different tools for different things, and she had read into the record training for people, education, a racist hotline, police training, and wrote to the federal minister around some of these behaviours that are harmful to people. That’s great, but I’m curious around these other tools.

[4:35 p.m.]

To date, has the government used any of these other tools where there have been existing activities like this that intimidate or attempt to intimidate a person or otherwise say or do anything that could reasonably be expected to cause concern for a person’s physical or mental safety? Whether it’s at schools or at post-secondary institutions or in our public realm, has government made use of any of these other tools that she talks about?

Hon. N. Sharma: It would take me a long time to list all the different tools and ways that government has when it comes to stepping in, particularly when it comes to kids. I think the section, the member says, where there’s a cause for concern for physical or mental safety….

We have a ministry called the Ministry of Children and Family Development and child protection that deals with many tools that step in on the front end when it comes to mental health supports for kids, like the Foundries that are being expanded.

On the criminal justice side, there would be many tools also in that system that would step in or protect, or there would be Criminal Code violations that are related to something that could impact somebody’s mental health and physical or mental safety that would kick in, in that scenario.

We would have police enforcement under Public Safety that would have many tools to step in related to that in a very broad way.

So I guess it would be hard to answer the member’s question without spending a long time listing and understanding all the ways that government steps in, in scenarios like this — all the legal tools that are there.

But what I will say is that this bill is specifically designed for, as I mentioned before, educational programs on school grounds and disruption of behaviour that we want to prevent in that environment.

S. Robinson: Perhaps I should have been more specific in my question.

In the last six months, there have been regular protests every week. In numerous communities, there are pro­tests where children gather, particularly Jewish children. There is tremendous fear for their safety, not just in school, but in their synagogues, in their community centre, on campuses.

We have seen Jewish children — and I’m going to call them children, because they are, in fact, children — being absolutely intimidated, where there is cause for concern for their personal, physical and mental safety. It is well-documented. It has been pursued many times with various administrators at our institutions.

[4:40 p.m.]

There is a long list of these very acts that the Attorney General and government believe should be stopped, that people shouldn’t feel intimidated or afraid for their safety in their spaces, particularly their educational spaces.

While the Attorney General has mentioned there are numerous tools, I can say quite comfortably that none of those have been used. Perhaps police have been called, but there are numerous examples where police actually don’t really take any action. They just wait and monitor while people — Jewish people, typically — are feeling intimidated and threatened. Their physical safety, their emotional and spiritual well-being is compromised.

I’m wondering if the Attorney might have some…. I mean, in this bill, it’s talking about the value to protect access for children so that they aren’t harmed by these actions that are happening fairly regularly. I’m wondering if she has some thoughts about perhaps where this bill might fall short and what else government ought to be contemplating in order to ensure that regardless of where children congregate, they are entitled to the same protections.

Hon. N. Sharma: I think that everybody in government and in society acknowledges that there are communities out there that are experiencing a very difficult time — the rise of antisemitism, the rise of hate. I just met with Muslim leaders the other day that were speaking about the challenges that they’re facing, when it comes particularly to women that are walking around wearing a hijab and the hate that they face on the street.

I think I went over it in quite some detail, about the different actions we’re taking to step up all of our tools in response to hate and in response to the community’s need for government assistance with that. This bill, in particular, is focused on schools and children and keeping children safe and protected from the type of thing that we’ve talked about at length already. So based on this particular bill, we thought it was necessary that we use extraordinary measures to make sure kids that are accessing school and school activities are protected.

M. Lee: I just wanted to respond to the Attorney General’s statement there. This has been a running concern for some time, and certainly, I also had the opportunity, with the Leader of the Official Opposition, the House Leader and other members of our B.C. United official opposition caucus to meet with Muslim community leaders this week as well, as we have done in other instances, and continue to hear from those leaders, as concerned parents, about what their children are facing, whether it’s at university, at SFU….

We heard from a young SFU student leader, who of course says that many of the identity targeting for young Muslim people or young Jewish students, as well, on other university campuses like UBC or at Langara College…. They’re all facing the same thing. So what the member for Coquitlam-Maillardville, as a former Minister of Post-Secondary Education up until March 2 or a date before that….

Interjection.

[4:45 p.m.]

M. Lee: Okay. There are other dates before that — true. There are many, many things that have happened there. February, some date in February, I had the understanding of that. So I do think….

We’ve already had successive rounds about the need to expand the protections under this bill. We’ve heard the Attorney General on the limitations of this bill and what the focus of this current government is, despite all of the challenges we see on the streets, in community centres, on university and college campuses.

I will go on, just because of the time that we have left on this bill. I would say to you, Madam Chair, that that is all the questions we have on clause 2. We’ll now move to clause 3 when the committee’s ready.

Clause 2 approved.

On clause 3.

M. Lee: On clause 3, this is the actual provision of the bill that establishes access zones. That’s what the title says for clause 3. We’ve been through the limitations around the definitions, the applications — the limitations of those applications for the types of access that will be protected in terms of the sites and activities. Extracurricular activities we’ve talked about at length as well.

Now, in terms of whatever we’re left with under what’s covered under Bill 22…. Despite what’s already covered in the School Act — as the member for Surrey South and myself have said in second reading, the protections that are already available to law enforcement that could be utilized — we have this provision in clause 3 that says: “The Lieutenant Governor in Council may, by regulation, establish access zones for a school or class of schools.”

The Attorney General has made reference, in committee stage, about the way that might be done, by way of regu­lation, that it might be done on a case-by-case basis. Some of the questions that we’ve been asking about — well, how will this apply? — and giving examples and working through these examples…. The Attorney General has, I believe, although she can clarify this, referred to this provision.

I would ask the Attorney General: why is it that when we’re talking about protecting safe access to schools, we’re going to do this after the fact by a Lieutenant-Governor-in-Council, that we’re not actually doing it on enactment of this bill? We’re actually going to do it in a way that it’ll be up to the Lieutenant-Governor-in-Council to figure out, in terms of establishing an access zone for a school or a class of schools.

[4:50 p.m.]

Hon. N. Sharma: There are a few layers of answers to this question. The first is kind of the general construct and concept of this bill that we’ve talked about, about the balancing act that we have to always employ when we’re balancing constitutional rights like freedom of expression with protection of a vulnerable group. That was part of the consideration in the idea of having a regulation.

First of all, by enacting this bill and moving this forward in this way, we are sending a strong signal to disrupt a pattern of behaviour that we are seeing on schools in British Columbia. So it sends a strong signal in and of itself that we are bringing this bill forward, that we are condemning the type of behaviour and hopefully disrupting the pattern of conduct.

Then the third answer to this is that regulations are more flexible than legislation. In order to enact a regula­tion, we wouldn’t have to pass legislation and, in the instance where we’re not sitting, bring back the House to do that. We could do it in a more responsive way than that, through regulation.

M. Lee: I appreciate the response from the Attorney General.

I just worked through her response of the three components. Certainly, I acknowledge the balance. That was the previous discussion that we had around clause 2, the reference to the Oakes test — pressing, substantial, minimal impairment, proportionality. Considerations around that the Attorney General has alluded to, and again when she says balance, so acknowledging that. But I would have thought, on that point, that the legislative framework that this government is bringing forward….

Presumably, again, the government is satisfied through the Ministry of the Attorney General that they are meeting that test. Otherwise, they wouldn’t introduce legislative framework to do what the Attorney General says, by way of clause 3, will be by regulation after this bill is enacted, on what could be a case-by-case basis. It’s not really well defined. Again, the Attorney General has said in a variety of ways, in response to some of the examples that we’ve raised here at committee, that we’ll figure that out. We will address that. That’s the reason why we’re going to do it by regulation.

First of all, I would like the Attorney General to confirm, though, that the bill itself meets the test from a constitutional law perspective in terms of infringing on a Charter right. That’s the first point.

The second point is, in terms of sending the signal…. Maybe what we can do, actually…. Why don’t we not do a three-part question. Let’s just break it down. That’s my first question on the Attorney General’s first response, so let’s just hear the answer to this question first.

Hon. N. Sharma: As chief legal officer of the province, my role is to make sure that the legislation that we bring forward in the House abides by the constitution.

M. Lee: The legislation itself, the bill itself, entitled the Safe Access to Schools Act, of course…. Otherwise, why are we here? We wouldn’t be debating a bill that the government had a different view on. So I appreciate that confirmation from the Attorney General.

[4:55 p.m.]

Moving to her second point, that this will be a signal to disrupt the pattern of behaviour, words to that effect that the Attorney General just indicated. On the second point, what kind of signal does this really send? It’s a signal that is….

Well, we have a bill that is entitled Safe Access to Schools Act. The Premier has referred to it. But what really is there in protecting vulnerable children in school, educational programs, extracurricular activities? Even the use of the term “early learning programs,” which is something that we have spent some time on in clause 1…. But just by reference, that is a term that’s defined under the School Act too. What about children who are in preschool, before K to 12?

Again, many of the spaces that we’ve been talking about — community centres, other faith-based gathering places or ethnocultural community places, facilities — also have places for early childhood learning. That’s not covered. It’s not covered specifically here.

So now we’re left with both a narrowly defined bill with narrow application that the government has not broadly worked through, in terms of the amendments that we proposed, but also now we have this mechanism that will say: “Well, we’ll figure it out after the bill is in place.” What kind of signal does that send?

Does that mean that the disruptive behaviour that the government is trying to address can occur at a school? In the midst of that disruptive activity, the government has not yet designated an access zone around that school. When will the government determine when to establish an access zone? My reading of this bill, in 3(1), says, well, by Lieutenant-Governor-in-Council, after the fact.

How does the government then send the signal that it’s going to be saying to protesters who are targeting a particular school, a particular class of schools…? I’d like to ask the Attorney General as well about what she means in this language by “class of schools.”

Again, I struggle with the response that this will send a signal to disruptive actors in communities who want to prey on vulnerable commun­ities, their children, in these spaces that we’re trying to put access zones around, when this is being done by regulation after the fact — after the fact that there might be a protest that has occurred on the school grounds. Can the Attorney General please address how this sends that signal when it’s being done by regulation after the bill is enacted?

Hon. N. Sharma: I guess I will start by disagreeing respectfully with the member on the signal it sends. I don’t know of a time in the history of the province where the Legislature and the government have seen fit to protect kids in this way.

[5:00 p.m.]

This is not only a very clear signal that government is poised to use this power to make sure that kids can access school grounds without intimidation or harassment or without the kind of behaviours that would be banned in this access zone. It’s a very clear signal to that. So I just want to say…

Interjections.

The Chair: Members.

Hon. N. Sharma: …if there is an example of when this type of response to protecting kids has been used before, somebody can tell me because I don’t know of any. The Lieutenant-Governor, in section 3…. It lists what they would have regard for in the making of the regulation…

Interjections.

The Chair: Members, if you keep your conversations down so we can hear the minister speaking.

Hon. N. Sharma: …including education, the importance of health, safety and well-being and the things that have regard for with the regulation.

I think to the first point, the reason that I and our legal team believe this act is constitutional, and we stand behind it, is because of the various balancing acts that show up throughout each section and the powers and how they’re exercised and how they’re thought of. It’s the content, really, that puts it on that right side of the balancing.

M. Lee: To finish off the three-part response from the Attorney General previously, when we’re talking about flexibility by way of regulation…. The Attorney General referred to it again just now. Can the Attorney General just please describe the process for which a regulation would be brought forward? Who will initiate the identification of a school to establish an access zone around? Can the Attorney General also clarify: what does the bill mean when we talk about class of schools? What types of classes of schools are we referring to when that use of that term is used in 3(1)?

Hon. N. Sharma: Having answered the question…. The regulation power is designed to be flexible, and it would authorize approaches to establishing access zones that include one or a combination of activating access zones for all K-to-12 schools, while exempting one or more individual schools based on important considerations like partnerships between an education authority and a First Nation in respect of a specific school, separately activating zones for different school districts, separately activating zones for different groups of independent schools, separately activating zones for individual schools, separately activating zones for one or more schools operated by First Nations.

This regulatory power is intended to be exercised after consultation at the request of the First Nation. We have a good team at the Ministry of Education and school boards that are constantly in communication and talking about what’s happening on the ground and what issues are and community organizations can come to us and we could design protections. Again, we talked about the powers of the act in terms of what what’s looked at and what the access zones are.

M. Lee: Well, in review of the exchanges I’ve been having with the Attorney General…. In consideration of the exchanges we’ve been having about the nature of the limited scope of this bill and recognizing the Attorney General has confirmed it meets the balancing test in terms of the infringement on the Charter rights and the legislative framework itself, at this time, I’d like to propose and move a motion to provide for the establishment of these access zones directly within the nature of this clause 3 of the bill.

[5:05 p.m.]

[CLAUSE 3, by striking out and adding the following underlined text:

Establishment of access zones

3 (1) The Lieutenant Governor in Council may, by regulation, establish access zones for a school or class of schools. For the purpose of protecting access to a school, an access zone is established to provide unimpeded and uninterrupted access to an early learning program, as defined in the School Act, an educational program or an extra curricular activity at a school to ensure:

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council is to have regard to

(a) the importance of the education, health, safety and well-being of the students attending the school,; and

(b) the importance of the health, safety and well-being of persons providing educational programs and extracurricular school activities at the school., and

(c) the need to protect access to schools.]

On the amendment.

M. Lee: We’ve heard from the Attorney General to confirm that the bill itself, the legislative framework, meets the test on the infringement on the Charter of Rights, including freedom of expression. If that’s the case, then to ensure that this is the signal, to disruptive protesters and other groups in society in our province of British Columbia, who are preying on vulnerable children and young people in our schools, as defined under this act…. We’ve been to parents to try, in how we extend that definition and what it applies to….

Even working with the current definition of “school” as reflected in this amendment, what we’re asking for — the reason for this amendment being made, which I’m making on behalf of the B.C. United official opposition — is that we make the application of this act around establishment of access zones with the passage of this bill when it comes into effect, and not done in stages over the course of time, depending on the nature of the class of school.

I would say that the language that is there under subclause 3(1) right now is language that is already addressed. We know and support the education, health, safety and well-being of students attending the school. We understand that is important. That language really does nothing. I don’t know what determination…. Are we saying that there are situations where the education, health, safety and well-being of students attending the school are not important, or are less important? Does that vary over the course of time? I wouldn’t think so.

I’m not sure what flexibility the Lieutenant-Governor-in-Council needs to have to determine and consider the importance of the education, health, safety and well-being of students attending the school.

Secondly, with the importance of the health, safety and well-being of persons providing educational programs and extracurricular activities at the school, again, I would have thought that not only are we concerned about the students attending the school but, of course, about the health, safety and well-being of the persons providing the educational programs or extracurricular school activities themselves.

These particular factors the Attorney General named and that would be considered by the Lieutenant-Governor-in-Council by way of regulation, to me, clearly, are factors that are known today to be important. That’s the whole reason why this government has brought forward the Safe Access to Schools Act. The explanatory note itself underlines the concerns that are being addressed.

In sub (2), I don’t see the reason why the Lieutenant-Governor-in-Council needs to balance these various fac­tors. We know today, in the course of our committee debate and our second reading debate, the importance of protecting students in schools. We know that there are measures under the existing School Act that do that.

Those measures in the School Act don’t say we’re going to do it by Lieutenant-Governor-in-Council. They are specific provisions that already address disruptive activity in schools under the School Act today. It’s fully in force. It’s not by determination by a government some other time in the future. We already have provisions in the School Act that speak to that.

[5:10 p.m.]

The member for Surrey South, as the shadow minister for Education, and I myself have spoken to that on second reading. That’s clear. We also know from the member for Surrey South — the Attorney General did also refer to this — that law enforcement, the police, have the measures to step in when and if they’re called to deal with disruptive activity in a school or around a school. So clearly, those tools are available. They’re not by regulation.

Today the signal this government wants to send is already there. We just need to make reference to it. Maybe some of these disruptive protestors are dialling in right now and watching this committee debate to figure out what they’re going to do, their next move, who they’re going to threaten in the future.

I’d say to you today, if you’re…. You know, you should know that the challenge and the instruments are there. To the member for Coquitlam-Maillardville’s point, are they being utilized? Are these tools actually being utilized?

We didn’t really see the evidence from the Attorney General, but in any event, what I’m proposing on behalf of the B.C. United official opposition is if this government is so concerned about establishing access zones, they should do that by the passage of this bill. They shouldn’t do it in a delayed way, on a case-by-case basis, school by school, class of school by class of school.

I would have thought that First Nations, independent schools, as well as public schools…. The types of classes of schools all have the same considerations. They all have the same understanding and appreciation for the importance of the education, health, safety and well-being of students attending the school. There should be, I wouldn’t have thought, recognizing the distinct nature of nations….

Even recognizing that whether we’re talking about Métis people, under Métis Nation B.C., or we’re talking about First Nations, or we’re talking about treaty nations, modern treaty nations, the Haida Nation, we’re all talking about the same considerations for the protection of our children in school spaces. So I don’t see the distinction that this government seems to be making amongst those classes of schools, which is only, I think, utilized in this clause.

Class of school — I don’t think we’ve seen in the bill, to date, the use of the term “class of school.” So this government now is preserving, in some way, some other opportunity to deal with not only a school, on a school-by-school basis, but now class of school. It hasn’t really added much clarity to that. I think we’d like to understand from government, again, about that.

That’s the reason why, on behalf of the B.C. United opposition, we know that even recognizing the existing tools in the School Act that are available to law enforcement and police, in respective school places from K to 12, which is what the focus of this bill is, the limited focus that it is…. At least, at a minimum, I would have thought that government would put in place the establishment of access zones with the enactment of this bill and not in a delayed fashion, on a case-by-case basis, school by school, by way of regulation. If they truly want to protect kids and children, vulnerable people, including those who are providing the educational programs — the teachers, the others, instructors, all of the volunteers….

I mean, I question whether…. I presume that would cover volunteers who are providing extracurricular activities? The volunteer coaches, the chaperones on extracurricular activities…. We haven’t even gotten to that part of it, but I presume that’s what this means. That protection needs to be put in place with the enactment of this bill. That’s the reason why we’ve moved this amendment.

The Chair: Thank you, Member. The amendment has been distributed, and it is in order, so recognizing the Attorney General to respond.

Hon. N. Sharma: I appreciate the intent of the member’s amendment, but for a list of reasons, it would be problematic, not only to our ability to respond to the complex needs of the school system, but it would actually not make sense in the sense of the construction of the rest of the bill. I’ll go through the reasons now.

There is a need for regulatory-making power in this bill, and that is because of the complexity of our school system and the different educational authorities that exist.

[5:15 p.m.]

I will give one example: UNDRIP. We have made a commitment to First Nations and their schools to consult before any implementation of an access zone. The amendment on its face would put it in right away, so it would run afoul of that.

It also would mean that we would have an access zone in place over the summer, which is also not only not necessary, but would…. Remember, I said everything that we have in here is a balancing act between political expression and the access zone. So not only would there be no need in the summertime, as kids are not there, you would question whether or not it was an overreach of government to set up an access zone in the summertime.

It would mean that the access zones were immediately in place till 2026, because that’s the automatic expiry this bill, which may or may not be on the right side of our balancing act that we’re striking, but also you would wonder if it would be a temporal overreach of the powers of this bill.

I also gave, very specifically, to the member’s first question, a list of different ways you could design the regulation that is responsive to the different classes of schools. I will note in particular, independent schools. And independent schools are often, in their discussions with government, asserting their independence over their ability to conduct their educational programming and authority. That would have to be a consideration of government as they talk about an access zone and when it’s put in place, when they’re making that decision as cabinet.

For, I think, other reasons, including the complexity of the school system — I could go through each educational authority and talk about the particular complexity of each of them — it was decided in the construction of this bill that a regulatory power that responded to the needs of the various school systems and actors and access zones would be the better solution and the better tool for implementing the access zone.

For those reasons, I can’t support the amendment.

The Chair: Are there any other speakers for a first time to speak to this amendment?

Seeing none, I recognize the member for Vancouver-Langara for closing remarks.

M. Lee: Thank you, Madam Chair. Just to have the opportunity, thank you, to respond to the Attorney General’s response.

Certainly, as the shadow minister responsible for Indigenous Relations and Reconciliation, I obviously appreciate the commitments under, for example, section 3 of the Declaration on the Rights of Indigenous Peoples Act. That does raise the question though, in view of the Attorney General’s response, as to the nature of consultation that has been done to date on this legislative framework.

Again, I would ask the Attorney General to confirm what that extent and scope has been with First Nations. On every single piece of legislation that the government introduces since November of 2019, when we get the opportunity to do so, we’ve been asking that question. So I’m happy to ask that question here, since the Attorney General raised it.

If there’s further consultation to be made, I would have thought that because of the legislative framework that’s being put in place, that it is giving this government the tools to do this by regulation…. The legislative framework itself would have already gone to consultation with First Nations to ensure that this bill, this legislative framework, is in alignment with UNDRIP. That’s the first point.

In terms of the second point around the temporal nature of timing, again, this instrument, this legislative framework is being put into place. It’s the same concern. If there’s a concern about the fact…. Well, I would say this: is the Attorney General suggesting, then, that the government is going to delay implementation of the protection, the establishment of access zones for a time period which is less than two years?

[5:20 p.m.]

If the concern is, by way of clause 9 of this bill, that this will sunset, that the bill itself will no longer have any force in effect after some date in 2026, that the act itself will be repealed on July 1, 2026…. Is the government saying, then, that they’re going to delay the actual implementation of these access zones? That that’s the flexibility that this government wants? That there’s some concern to make sure that the temporal nature of this provision of this restriction on freedom of expression and charter rights is only going to be a shorter period of time?

Well, then say so. This is a legislative framework. If the government is concerned that this is an overreach, in some way, even though I did ask the question before…. The Attorney General confirmed at least twice that she’s satisfied that this does not breach, and it does meet the test.

Therefore, if there’s a shorter time that would make the government more comfortable, then they should amend clause 9 and make it for a shorter period of time, if that’s what they are talking about. At least by virtue of this amendment that we’re proposing, give the effect to this protection with the enactment of this bill.

Don’t delay, then. It’s limited in scope to begin with. Even with the protection that the government feels is necessary to set the signal to those disruptive actors in our society, for a civil society, let’s give that signal. What kind of signal is this? We’re going to delay.

In terms of the FISA, in terms of the associations that represent independent schools, I understand and appreciate that they want to also be consulted, but again, I would have expected, for this legislative framework to be put in place, that they would have had that level of consultation already.

On that point, can the Attorney General confirm there has been, and can she confirm and describe the nature and the scope of the consultation in respect of this bill as well?

I think the last point was around the nature and the complexity of the design of the bill. It’s not our bill. Government had done the work. They brought this forward. They want to provide some sort of signal. We think it’s a pretty weak signal without making this provision establishing these zones with the enactment of the bill, not doing it by delay. That’s the purpose of the amendment.

Despite the complexities, what’s the purpose then? We understand there are different forms of schools, but I think with the amendment, the commonality, the recognition…. That’s still there. It was there on the existing clause. It’s still there. The language that we’re using in our amendment only reflects the language that has been used throughout this bill. It recognizes the importance of access zones to be established, to provide unimpeded, uninterrupted access to programs.

I have put in early learning programs, and I will acknowledge that, because I think it needs to be there. Beyond that, it does reflect the focus around educational programs and extracurricular activities at a school. I’m not even getting back into the multi-use-building consideration.

That’s the reason why I’m proposing this amendment. I would urge all members of the committee to vote in favour of this reasonable amendment.

The Chair: All right, everyone. Seeing no further speakers….

Interjection.

The Chair: Does the Attorney General wish to respond?

[5:25 p.m.]

Hon. N. Sharma: Just to respond to the question about consultation. I think that’s an important one, and then I think I have responded to the rest of the concerns.

As is our usual practice, we sent out notice to the 204 rights holders, FNESC, which is the First Nations Education Steering Committee, and treaty Nations along with other Indigenous representative groups. So they know about that.

The commitment is exactly what is in the regulatory power. It’s that before we enact an access zone, we will consult with them, which is the need for the regulation.

The Chair: Okay, seeing no further speakers, those in favour of the amendment?

Division has been called.

[5:30 p.m. - 5:35 p.m.]

The Chair: Before putting the question, I remind all members that only the members of Section A or their duly appointed substitutes are authorized to vote. The question is the amendment of clause 3.

Amendment negatived on the following division:

YEAS — 3

Sturko

Lee

Ashton

NAYS — 8

Parmar

Beare

Bains

Whiteside

Sharma

Sims

Simons

 

Begg

Clause 3 approved.

On clause 4.

M. Lee: We’ve talked about, at length….

Hon. N. Sharma: Chair, my team is not in yet. I wonder if you could….

The Chair: Oh, we’ll just take a moment.

[R. Parmar in the chair.]

M. Lee: We have had quite a bit of discussion about clause 4 when we were looking at clause 1 and some of clause 2. I would just ask, as we’re addressing this consideration again…. We’ve had the discussion, just to register this discussion, around extracurricular activities. The use of the term “school” does not include extracurricular activities.

Now that we’re in the same clause 4, I would ask the Attorney General to again clarify how extracurricular activities are covered under clause 4.

[5:40 p.m.]

Hon. N. Sharma: This is the section of the bill that’s the where, and then section 5 is the when.

The reason that extracurricular school activities is not included in the actual section 4 is that it’s not needed to be included there, because it’s covered in other areas. That’s the where, and then it defines what the access zone is. Section 5 is the when, and it makes sure that if it’s an extracurricular school activity outside of the time periods of the access zone from 7 to 6, that it’s covered.

Clause 4 approved.

On clause 5.

M. Lee: I wanted to come back to this, as well, in terms of clause 5. We are now back into the when, as the Attorney General has indicated.

The Attorney General, in reference to my proposed amendment to clause 3, made certain comments relating to summer, that the application of the amendment, which has not been passed, relating to putting in place the establishment of access zones with the enactment of this bill…. One of the concerns around that, among the others that the Attorney General indicated, would be that it would extend the coverage of the bill to summer.

I have two questions. In 5(a), what does holiday include? Does holiday not include summer? If it does include summer, then my point would be then, of course, the bill doesn’t apply to summertime, because that’s a holiday for students, commonly known as that.

Even if it doesn’t apply, because it’s a holiday, and the Attorney General actually agrees that her previous response isn’t correct as it relates to my proposed amendment on clause 3, what about summer school? There are still students who do attend summer school. So what happens then? Is that meaning, then, that this bill does not apply to summer school at schools where there is summer programming, where students are taking courses, particularly in high school?

Again I would ask the question both ways: whether summer is a holiday, and if summer is a holiday, what about summer school?

Hon. N. Sharma: The member’s question really underlines why we need the regulatory-making power. I’ll just explain, first, that the word holiday is defined as holiday, which is defined in the Interpretation Act. So it doesn’t cover summer through that definition.

To the member’s question, there is…. I know it’s in a different section, but it will help answer. Under section 8(3), the regulatory power says any regulation “is repealed at the end of the school year in which is it is made.” So the regulation is timebound to the school year.

Then thirdly, it’s precisely the reason that we would need a regulatory-making power. If there was summer school, then cabinet could enact a regulation that would cover the summer school in that particular time for that school, if that’s needed.

M. Lee: In terms of the extracurricular school activity that is provided at the school, does that cover, for example, activities that would include parent-advisory-committee-type activities?

[5:45 p.m.]

Hon. N. Sharma: The first answer is yes, if it is within that time period of 7 to 6. Oftentimes meetings occur during that time period, and that’s protected in the access zone. Parent-teacher conferences also would be in the construction of it and the discussion here. And extracurricular school activity also would be protected if it’s outside of those time periods.

Clauses 5 to 7 inclusive approved.

On clause 8.

[5:50 p.m.]

M. Lee: I would just say again that the other point that I didn’t get the full opportunity to cover or address in the debate around clause 3, the amendment I proposed and tabled, is the reference to the complexity involved. When you look at the provisions in clause 8, it does provide for further reg-making powers. That’s what this provision does.

If there’s a determination that the act doesn’t apply or ought not to apply, we have, for example, sub 8(2)(d), “pro­viding that section 4 (1) or (2)….” This determines what is included in an access zone, in relation to a school or class of schools, and specifying different areas. That does give some flexibility in what the Attorney General was referring to earlier.

Even when we’re talking about time, there’s clause (e), “providing that section 5 does not apply in relation to a school or class of schools and specifying different times.” Again, 8(3) deals with the regulation of the section or section 3, which “may be different for different schools or activities or classes of schools, activities or persons.”

I’m just going to note here, and I do appreciate that we did already have the full debate on the tabled amendment, for those who are still watching this rigorous review of Bill 22, that there is flexibility, which the Attorney General had earlier indicated is necessary, as a reason why she was not supporting the amendment on the establishment of access zones today. I do think that the regulation-making power itself does speak to that.

Clause 8 approved.

On clause 9.

M. Lee: Just to finish off this bill, I would just again note that it is time-limited. We’ve heard from the Attorney General. during the course of this debate. as to why the balancing of the temporal nature of the application of this bill is necessary.

If I had the avenue and the opportunity, I would have tested that further, but I don’t believe, in view of the Attorney General’s responses, that she would be seeing, as a friendly amendment for consideration, any relief from the time restriction on the application of this bill. Again, if we’re truly trying to protect children in schools, we need to protect them, and it shouldn’t be limited in time. I will just leave that there on this particular clause.

Clauses 9 and 10 approved.

Title approved.

Hon. N. Sharma: Before we leave, I just want to thank my great team for the work that they’ve done, Kiersten and Darin, and for sitting with me through this committee stage. I really appreciate your support and your help in all the work on putting this together. Congratulations to you.

I move that the committee rise and report the bill complete without amendment.

Motion approved.

The committee rose at 5:53 p.m.


PROCEEDINGS IN THE
BIRCH ROOM

Committee of Supply

ESTIMATES: MINISTRY OF ENERGY,
MINES AND LOW CARBON INNOVATION

(continued)

The House in Committee of Supply (Section C); S. Chant in the chair.

The committee met at 1:35 p.m.

The Chair: Good afternoon, Members. I call Committee of Supply, Section C, to order. We are here to consider the Ministry of Energy, Mines and Low Carbon Innovation estimates.

On Vote 23: ministry operations, $121,111,000 (continued).

A. Walker: I want to continue a brief question from where we were yesterday with discussion of the order-in-council that was discussed. The question to the minister was regarding what the requirements will be for this energy planning. The minister stated that the intent was to focus only on EV charging. I recognize this was signed by the Ministry of Housing, so there’s a bit of an overlap here.

Looking at the actual order-in-council itself, it says that the content of the report “must include the following….” Included in there is the list of electrical demands, “including, without limitation…heating, cooling, ventilation and lighting systems,” but also a requirement that they have a plan to anticipate decarbonizing these energy sources.

The question to the minister is this. This plan that these stratas all across British Columbia are required to complete…. At some point, will the ministry, whether it’s Housing or Energy, Mines and Low Carbon Innovation or some other ministry…? Will stratas be required to act on this to ensure that the electrical capacity for all of the individual units are brought up to this plan? And if so, will government be providing any supports to strata councils that will likely be facing significant financial burdens for these decisions?

[1:40 p.m.]

Hon. J. Osborne: Thank you to the member for the question, and yeah, picking up off of the conversation that we had yesterday afternoon.

The member is absolutely right that the regulation, which is under the Ministry of Housing…. While the in­tent is around EV charging, it does require, in the electrical planning report, to take a look at other electric load — all electric load, in fact — and steps, if any, that a strata could take to increase its energy efficiency.

This is information that’s valuable for the strata to make informed decisions about changes or upgrades that they may wish to make, and there are a number of programs that government provides that will support stratas in doing this. Just two examples: the better buildings program for whole building heat pump upgrades, or the home and workplace charger rebate program, which requires an electrical capacity report. This electrical planning report forms part of that work, so it opens the doors, if you will, to access rebates and financial supports for those kinds of projects.

The member asked specifically: will they be required to act? I can’t answer for another ministry or for a future government but just to say that right now the requirement is to have the electricity planning report and to help stratas make good decisions.

A. Walker: I guess the challenge is stratas are supposed to have reserve accounts to account for future expenditures that will be required. This requirement to have this planning document, I agree, is important.

I think that stratas…. And not all stratas are the same. The stratas that I went to last weekend, and others that are showing up in my calendar, look like regular communities. They’re single-family, detached homes, but they happen to be in a strata community. The idea of having to upgrade the load to an existing neighbourhood with direct buried cable with low amperage panels on each site could be a significant expense.

What I’m hearing from the minister is that the planning process is important. Stratas should have this in place. But there is no plan at this point to require they move through that decarbonization plan. Unless there’s any change there, that’s fine.

I’m going to shift to B.C. Hydro, the 20 percent of the power that was imported last summer. I think I have one more question here, so maybe I’ll jumble a few together.

Looking at the snowpack across the province, I’m sort of grateful in my community to see Mount Arrowsmith have a little bit more snow on it. I know the minister. as she drives over the hump, will see that.

What are the projections for this current year as far as snowpack and impacts on our electrical generating capacity? The electricity that was imported last year — was there a requirement that that electricity be zero-carbon electricity, and if not, how much emissions would have been not recorded in British Columbia but from other jurisdictions related to that electricity?

[1:45 p.m.]

Hon. J. Osborne: Thanks again to the member for the questions.

I want to go back to the electrical planning report for one moment and clarify that it’s not a decarbonization report. It’s more about electrical efficiency and not about decarbonization so much.

The other thing I wanted to clarify, as well, is that the regulation is intended for multi-unit residential buildings. I think the member was talking about bare land stratas, maybe, when he was referring to single-family homes on streets. I’m not entirely sure. We could follow up, or he could follow up with my office, to get a bit more clarification on what he meant there.

[1:50 p.m.]

With respect to snowpack and projections for snow­pack and electricity imports, the B.C. river forecast centre, as of April 1: snowpack in B.C. is 63 percent for this time of year, which, as all of us know, is low — in fact, the lowest since 1970. At this time last year the snowpack was 88 percent.

Conversely, however, for the biggest reservoirs in British Columbia, the opposite is true, and they are higher than they were this time last year. That’s in part because of the work that B.C. Hydro did importing last year to reserve water in the reservoirs here. The Williston reservoir, for example, is 0.4 metres above the long-term average right now, and the Kinbasket reservoir is 2.3 metres above the long-term average. So customers should feel confident that there is enough power. Hydro, at this point, is forecasting importing less power this season than it did last season.

The member asked around different types of imports and about clean sources. I’m going to take some time to explain the types of imports. There are two main types of imports. The first is from dedicated, clean sources. This includes hydroelectricity that’s returned to Canada by the U.S. under the Columbia River treaty, which is called the Canadian entitlement. Its source is from downstream hydroelectric facilities that benefit from the flow regulation that we provide in Canadian treaty storage reservoirs. For the past five years, the majority of imports were from dedicated clean sources of electricity like that.

The second type of imports are from the wholesale market. That’s referred to as market or unspecified electricity. Market electricity is a blend of all of the resources in the market. Market electricity in western North America continues to trend away from fossil fuels towards cleaner forms of generation, especially as more wind and solar replace retiring coal and natural gas in those jurisdictions.

In recent years, with more renewables like solar, they’ve created periods of short-term oversupply in places like California, where solar generation is highest during the midday hours. That’s the time of day when Powerex, the subsidiary of B.C. Hydro that undertakes this energy trading, importing and exporting activity, generally imports, given that prices are lower.

Just a little more information that I think the member will find informative. There have been media reports that state that 60 percent of power imported into B.C. was generated using fossil fuels, but this is incorrect. Powerex trades electricity throughout the west, but about 90 percent of their U.S. trade is with Washington, Oregon and California, which are states that are rapidly adding renewables like solar and wind. These, like I mentioned, create these frequent periods of acute electricity surplus. So 63 percent of electricity generated in those grids is from non-emitting resources.

I can also tell the member the greenhouse gas intensity of electricity that’s used by B.C. customers is determined by the climate action secretariat, housed in the Ministry of Environment and Climate Change Strategy. The electricity emissions intensity factor, which incorporates data on Powerex’s imports and exports, was reported at 11.3 tonnes of carbon dioxide equivalent per gigawatt hour in 2023. Just to compare 11.3 tonnes, the emissions rate from gas or coal generation is about 500 or 1,000 tonnes of CO2 equivalent per gigawatt hour respectively.

Suffice it to say, I think, that in recent years, the strong government policies on both sides of the border have really resulted in a grid that’s much cleaner than it’s ever been. At least five western states have committed to meeting 100 percent of the electricity load with clean energy by 2050. Others have additional decarbonization programs as well. These are all supported by increasing numbers of clean energy resources that are generated at different times across the western interconnection.

Then lastly, towards drought, yes, 80 percent of our electricity that we used here in British Columbia was generated from our hydroelectric facilities. As I mentioned, B.C. Hydro expects to import less this year. I think it’s fair to point out that we go through cycles, and we have experienced drought in the past. It’s important to understand the impact of one year, but it’s also important to understand how multiple years sequentially are managed to regulate the rates for people so that people aren’t seeing any kind of rate shock, for example.

Even with the historic drought that we’re experiencing right now, B.C. was still a net exporter for the past five years. B.C. Hydro will continue to undertake different steps to manage this, understanding that the need to diversify the grid is also an important factor in the call for power that was just released. Adding more renewables into the grid will help us become more resilient to droughts in the future.

Thank you to the member for the question.

[1:55 p.m.]

A. Walker: In closing, I want to thank the minister and her staff.

I want to clarify that the order-in-council does specifically stipulate, under 5.11(2)(f), “an estimate of the electrical capacity that would be needed to power systems, including heating, cooling and ventilation systems, that are currently powered by an energy source other than electricity.” So the minister stated that this policy was not about decarbonizing. If we are in a province of clean energy, this is, de facto, a policy to decarbonize.

I appreciate I didn’t get a specific number as far as the emissions profile of import electricity, but I can work it backwards from the 11.3 tonnes. I just would encourage the minister, through any dealings, to streamline the development approval process for geothermal, as we heard on the Finance Committee last summer. District energy, as well, was something that came up that was very interesting and, I think, important. And lastly, solar here on southern Vancouver Island — I think there’s tremendous potential there. The feds have stepped up. I think there’s some work happening, but that’s all exciting stuff.

Thank you all very much, and I’ll pass it to the leader of the Green Party.

S. Furstenau: I’m glad to have the opportunity to ask some questions of the minister.

I’m going to start with some questions that were canvassed by my colleague in Agriculture estimates, specifically about the relationship between the B.C. Energy Regulator and the Agricultural Land Commission and the agreement between these two bodies that, according to the Minister of Agriculture, allows “the B.C. Energy Regulator to work efficiently and effectively in its efforts to regulate the oil and gas industry, particularly in the northeast, and to ensure B.C.’s agricultural values are protected.”

My colleague raised a number of questions around potential harms to agricultural land, particularly in the northeast. Those can include harms from oil and gas infrastructure, pipelines. He was up there and heard from farmers about the impacts of flaring. There’s also the use of pretty extraordinary amounts of water for fracking, so the diversion of water, then the use of that water, and the storage of water after fracking, much of this happening on agricultural land.

In his questions back and forth with the Minister of Agriculture, he didn’t get a particularly clear answer about the exact nature of the relationship, but I’ll ask the minister this: is there anything in the mandate of the B.C. Energy Regulator that stipulates that it must take protection of agricultural land and food security into account in its decisions?

[2:00 p.m.]

Hon. J. Osborne: Nice to see the leader of the Green Party. Thanks for being here.

All right, we’re speaking about the delegation agreement that exists between the Agricultural Land Commission and the B.C. Energy Regulator. This has been in existence for over a decade.

The delegation agreement stems from the authorities through the Agricultural Land Commission Act. The commission grants the Energy Regulator the authority to permit non-farm uses and describes the conditions under which that can take place.

In effect, the ALC is setting the rules pursuant to the Agricultural Land Commission Act. The B.C. Energy Regulator…. The agreement requires a rationale, for example, for why a permitted activity or piece of infrastructure…. Why the location is chosen. It stipulates restoration re­quirements so that the land can be returned to farm use after this use. All of this is reported out to the….

The Energy Regulator reports out to the Agricultural Land Commission as part of that agreement. So effectively, any terms under the Agricultural Land Commission Act apply through this delegation of authority in the agreement.

S. Furstenau: Thanks to the minister for that response.

I won’t pursue any more questions on that, but I think there’s an interesting conversation to be had, a policy-level conversation, about whether or not that agreement and the decisions that are being made, particularly in the northeast, are effectively protecting farmland and food security. I think that both my trips and my colleague’s recent trip up to the northeast…. He met with a lot of farmers who were expressing a lot of concerns about the impacts that the oil and gas industry was having on their ability to grow or raise food. I think that this….

The Minister of Agriculture talked about balance. I think food often loses in this conversation, and we’re running out of time to take food security more seriously than we have for a long time. So I’ll just leave it there and move on to some of my other questions, but I appreciate the minister’s response to that.

[2:05 p.m.]

The construction of the Coastal GasLink pipeline, with its many infractions and fines that were levied by the Ministry of Environment, the impacts to wetlands, the impacts to watersheds, to critical areas, very fragile environmental ecosystems, was, unfortunately, an illustration of some of the inadequacies of B.C.’s processes for permitting, for regulating compliance, enforcement and oversight.

In pipeline construction, the proposed Ksi Lisims project would similarly require the construction of the Prince Rupert gas transmission pipeline owned and operated by TC Energy, the same corporation that built the Coastal GasLink pipeline.

How can the minister assure British Columbians that the mistakes that were made in the construction of the Coastal GasLink pipeline won’t be repeated if the Prince Rupert gas transmission pipeline is built?

Hon. J. Osborne: Thanks to the member for the question. I appreciate that and the intention behind it.

First of all, I think the member is aware that TC Energy no longer owns the line. The Prince Rupert gas transmission line, the preferred supply line for the proposed Ksi Lisims LNG project, holds the EA certificate. It has the associated pipeline permits. But back on March 15, the Nisg̱a’a Nation and Western LNG announced that they had purchased the PRGT. The purchase is in process, and we understand that the intention is for Ksi Lisims to construct and operate the pipeline.

I have had the opportunity to meet with the Nisg̱a’a Nation and talk about the project, and I will say I really welcome their involvement, particularly from the sense that they have high standards, which we all should have when it comes to construction of a project or proposed construction of projects like this, and have really emphasized the need for high environmental standards.

[2:10 p.m.]

In the pipeline permits, there’s a number of conditions that will have to be satisfied before the project begins. I will say that a lot has been learned from CGL and from other pipelines as well. I think it’s important to acknowledge that. Although here in British Columbia we do have some of the highest environmental standards in the world….

It’s important, too, to note that the energy regulator is committed to continuous improvement in compliance and enforcement activities and that they work very collaboratively with the environmental assessment office. I know we’ve had exchanges in question period before around this. Strengthening the oversight between the EAO and the energy regulator and other agencies, including provincial ministries, is a really important part of this to make sure that companies and operators are consistently meeting their regulatory obligations.

Oversight of the CGL construction and, if PRGT moves ahead, with PRGT would obviously involve the work of some very highly skilled professionals — engineers and hydrologists and foresters and geologists and lots of “ists” — and also the compliance and enforcement specialists, the officers who do that work as well. I know the member understands this too.

Over the course of CGL’s construction…. There were over 500 field inspections that were carried out on the project. That’s about 120 a year. Like I said, I want to close with the fact that a lot has been learned from that. Those learnings need to be applied and will be applied to any future construction of new pipelines.

S. Furstenau: Thanks to the minister. The pipelines are going to be moving methane gas. In 2021, B.C. committed to cutting methane emissions by 75 percent below 2014 levels by 2030. Can the minister provide an update on progress to reduce methane to date?

Hon. J. Osborne: Thanks again to the member for the question. I’m pleased to give an update on where we’re at with methane emissions.

The most recent provincial inventory, which covers 1990 to 2021, was published in August of 2023. The inven­tory shows B.C. has already achieved its 2025 target to reduce oil and gas methane emissions. The 2021 provincial inventory shows that sectoral methane emissions have de­creased by 47 percent below 2014 levels. More recent data is showing that methane emissions continue to decrease.

The emissions reductions are achieved by a combination of regulations within a suite of other oil and gas policies, a complementary suite of policies, to drive down greenhouse gas emissions and support the near elimination of methane emissions by 2035. I know the member is familiar with the goals before us, the targets before us.

The energy regulator right now is working on amendments to the regulations to contribute to achieving the 2030 and the 2035 emission reduction targets.

S. Furstenau: Research has found that B.C. oil and gas facilities were emitting up to 2.2 times more methane than estimated.

[2:15 p.m.]

Is there large-scale independent monitoring of methane emissions currently, and if not, what progress is the minister making on independent monitoring of methane emissions?

Hon. J. Osborne: Thank you again for the question.

I do have some progress to report. I appreciate the member’s question and where she’s coming from.

Like I said, the 2021 provincial inventory does show progress and shows that sectoral methane emissions have decreased significantly and are continuing to decrease. But collaboration between government and industry and the regulator and non-profits is necessary for us to uphold our commitment to be a global leader in climate action and in methane reduction.

The B.C. oil and gas methane emissions research collaborative, or MERC, as I’ll call it…. I’m sure the member is familiar with it. As she knows, it’s a joint initiative to support our emissions targets and find ways to provide for further reductions.

MERC B.C. works with a group of experts, industry, non-profits, environmental groups to make sure we have as accurate as possible a picture of methane emissions in the oil and gas sector. Some of the funded initiatives MERC has undertaken include research and publication and information-sharing through the collaborative. Also, some ongoing aerial surveys are being done to advance some world-leading research. This is through Carleton University and co-funded with the United Nations environment programme international methane emissions observatory.

A second project is a research project with GHGSat to monitor provincial methane emissions and detect any large methane sources with satellites. It’s a project that’s funded or managed, I should say, by the climate action secretariat here in the province of British Columbia. This project monitored provincial methane concentrations, looking at detecting these large methane sources.

I think the point is well made around…. We need to have a commitment to methane reduction. We have targets. We have the commitment.

We need to fully understand the sources. I think that’s what the member is driving at as well. With that full understanding, we need to tackle it with every tool that we have, including technological tools. That work is important to do with industry, because they have a wide knowledge base there too.

I’ll leave it at that for now and see if the member has a follow-up.

[2:20 p.m.]

S. Furstenau: I appreciate the minister’s information on this and the different organizations that are working on this.

My colleague from Parksville-Qualicum…. The minister was talking about B.C.’s clean energy, building resilience. I agree wholeheartedly on that vision. But currently, under this government, there are up to six proposed LNG facilities in this province. As much as finding ways to reduce emissions of the extraction and movement and the work at the facilities, the reality is adding more fossil fuel facilities, adding more extraction, is adding more emissions.

How does the minister square the very urgent need for B.C. and the world to reduce global emissions? The directives from international organizations like the UN, the International Energy Agency, the WHO on the impacts that fossil fuels are having on our health, on the stability of our climate…. How does the minister square that with going from there having been no LNG facilities when this government came into power in 2017, to there now being, potentially, six?

This is a lot of emissions to be adding. I know all the…. The math looks at where the fuel is burned, and there’s some fancy footwork. But the reality is we are in a place, globally…. The oceans are warmer than they’ve ever been, and 2024 looks to be like a year that’s going to be unlike any other, given where the temperatures are at, both surface and water temperatures.

I went and heard John Vaillant speak the other night. He says we’re in clima incognita. We’re in unknown climate. We can’t predict. Climate scientists, given the data that has emerged in the last couple of years, have come out and said: “Our climate models were too conservative. We have to start again. We didn’t account for the rapid changes that we’re seeing right now.”

I just read the other day: 80 percent of coral is dying or dead in the oceans right now. The impacts of climate change are so significant and so real. We’re bracing for the worst fire season after having had the worst fire season after having had the worst fire season after having had the worst fire season. And in B.C., we are massively, on a scale, expanding oil and gas in this province. We are massively expanding the extraction of methane, of fracking, pipelines, LNG facilities.

How does the minister square this with the reality of where we’re at and the claims of this government that they want to be climate leaders?

[2:25 p.m.]

Hon. J. Osborne: Thank you to the member for the question.

I want to say at the outset that I agree with the member’s concern and characterization of the impacts climate change is having on people and on communities. To talk about the fact that we’re expecting, again, a terrible fire season, and after experiencing the floods, the droughts, the heatwaves that we have, it’s incumbent on all of us to take action.

I am proud of our government’s record and the work that her party and my party did before my time in establishing CleanBC and then continuing to drive down in the policies that that outlines and the work that’s ahead of us.

I also understand the member and I aren’t going to agree on everything, and that’s kind of the point of having these estimates debates to have these kinds of conversations.

We’ve been very clear with the LNG industry about our conditions for LNG proposals in this province, and I know that the member is familiar with them, around jobs and training opportunities for British Columbians, providing a fair return for British Columbia, respecting and partnering with First Nations, providing benefits for communities and also protecting our air, land and water and living up to our climate commitments.

Last March, when we announced the new energy action framework, we took steps that no other jurisdic­tion has taken before in stating that new facilities with a new net-zero industry policy; with an oil and gas cap that has been worked on by my ministry, by the Ministry of Environment and Climate Change; and creating a framework that provides some certainty to industry around their policy, what they can expect from policies here in British Columbia but drawing the bottom lines where they need to be drawn. And one of those is around our commitment to climate.

There are decisions that will be taken by companies after they go through their permitting processes. The member refers to six projects. Some have not even made final investment decisions. Some don’t even have an environmental assessment certificate before them. So they have work to do in order to get to a place where they may make a decision.

The policies — like the new net-zero industry policy, the oil and gas cap — remain as a way of being able to provide that certainty to industry but also to make it very clear where we stand on our climate policies.

I’ll stop there and see if the member wants to follow up. I could add more if she wishes.

S. Furstenau: I think, you know, to put some quantita­tive figures on this. Does the minister have a figure for how many new fracking wells there will be for LNG Canada phase 1? And were we to have the province proceed with, say, these six proposed facilities, some estimate of how many new fracking wells that would take.

[2:30 p.m.]

Hon. J. Osborne: Thank you, again, to the member for the question. It’s actually a very difficult, if not im­possible, question to answer. The reason why, first, is because there are commercial arrangements between producers and LNG facilities that are just that — that are just commercial arrangements that we’re not privy to and I can’t speculate about.

I would also point out that different wells have different amounts of productivity depending on where they’re lo­cated — in the northeast, for example. Again, it would be difficult to speculate as to how many wells are required to provide a facility of a certain size. Some wells drill directionally. You could have up to 36 wells on one pad. There are a number of factors that just make it really difficult to answer the question.

The second piece I want to point out, and I know the member understands, is the majority of the gas that’s produced here in British Columbia is actually exported to the States. Again, those are commercial arrangements. If, in the future, producers make decisions to sell their gas to a different facility or to a different offtaker, that’s, again, a commercial arrangement. We can’t really speculate how that could impact well creation or new wells being established.

S. Furstenau: Thank you to the minister. I want to pursue the fracking question a little bit more, but more from a health point of view.

Last month the Canadian Journal of Public Health published results of more than 50 studies on the health outcomes of people living close to fracking. The results…. I have raised this many times in the past, but this is the latest collection of studies on this. For people living close to fracking sites, it can lead to a higher risk of asthma flares, heart disease, childhood cancers and overall mortality. The study also found an increase in exposure levels was associated with increasing risks of preterm birth, congenital birth defects and childhood leukemia.

The province’s one and only study into the health effects of fracking was completed in 2014. Will the minister urge her government to reexamine the health impacts of fracking? In the meantime, how will the minister ensure that the health of those living near fracking sites, which are often First Nations communities…? How will the minister ensure that their health is not at risk?

[2:35 p.m. - 2:40 p.m.]

Hon. J. Osborne: Thanks again to the member for the question. I just want to say, at the outset, that I take the concerns really seriously. I think that in everything we do, it’s incumbent on us to always be not just protecting the environment but, of course, protecting the health and safety of people and of communities.

I think society, at large, accepts that there are some impacts in this case, but we need to do everything we can to mitigate those impacts, to prevent them from happening in the first place, wherever possible. That’s one of the reasons why having a strong health and safety regulatory framework, or sets of laws and policies, is really important. British Columbia is recognized for having very high health and safety standards, notwithstanding the two particular areas the members raised around flaring and fracking.

I will address first, through the flaring piece and the fact…. Woodfibre is a good example, I think, of a recent LNG facility environmental assessment process, under the auspices of the environmental assessment office, to undertake a comprehensive review process that is designed to examine any potential human health impacts for large projects like Woodfibre.

The requirement upon that facility, for example, was to develop and implement an air quality mitigation and monitoring plan, one that requires regular monitoring and reporting on air quality, and having an adaptive management plan that’s ready to address any negative effects of the project. This was part of Woodfibre’s environmental assessment process, for example, and, I think, an example of how those concerns are taken into account.

On fracking, I think B.C. has strong hydraulic fracturing laws, and these focus on protecting public safety and the environment. The regulatory framework that we have is constantly being reviewed and enhanced, and that’s with new information that arises.

The member spoke about one of the studies. There was another study in 2019 the B.C. Energy Regulator undertook, a scientific review on hydraulic fracturing. That review has formed part of the regulations that are in place to ensure that companies are being very safe and responsible in the practices that they have.

So the energy regulator, I think, like the ministry, like government, is very committed to the work that it’s doing to protect and conserve air quality, natural resources. I’ll just read into the record a little bit an example of some of the work that they do around the well application reviews.

These detailed reviews are undertaken, and they include thorough environmental, First Nation or Indigenous peo­ples’ public safety considerations. They have strict requirements that are enforced for testing and monitoring methane emissions during all phases of the operations and production. That’s to help regulate and limit air discharges to the environment from oil and gas activities.

I won’t go into water, but I can, if the member would like to. But I’ll say that the energy regulator works with the provincial government to ensure that industry is operating safely for residents who are near activities.

Part of that is work that’s done through peer-reviewed research and multi-agency initiatives. There’s the B.C. Oil and Gas Research and Innovation Society, which has an aim to inform environmental, operational, and health and safety practices of oil and gas exploration and improve the condition of those people who are living near activities like that.

Again, I want to thank the member for bringing a really important issue forward and hope that I’ve been able to address some of those concerns.

S. Furstenau: Thank you to the minister.

I’m interested in the air quality monitoring mitigation comments that the minister made. I look forward to kind of monitoring that and seeing how that plays out. I hope that the adaptive management approach to that isn’t adapting to worse air quality than was anticipated but, in fact, insisting that the companies themselves are adapting to ensure that they’re meeting those guidelines. I would hope that there are really concrete consequences should they not be meeting those guidelines.

I think the Woodfibre facility the minister refers to…. There have been concerns raised about impacts to pregnant women, impacts to the health of fetuses and babies, from those air quality concerns that come with these facilities.

[2:45 p.m.]

Another concern, with fracking, is the increase in earthquakes. Fracking quakes in B.C. have increased in the Montney area near Fort St. John over the last two or three years. This includes a recent 4.2 quake that was felt by residents. Another 4.5 magnitude earthquake was caused by fracking in the Peace in early 2023.

Experts suspect the industry-caused tremors will in­crease with the completion of the Kitimat LNG and other projects. A recent study warned: “Currently established monitoring areas in B.C., which are based on past induced seismicity’’ — industry-made quakes occurrences — “may not fully capture all areas where induced seismicity potential exists.”

My question to the minister is: what is the ministry’s plan for addressing these increases in seismic activity as a result of fracking, and are there any securities required by fracking companies to offset the risk to local infrastructure from fracking quakes?

[2:50 p.m.]

Hon. J. Osborne: Apologies for the long pause there. I have a lot of information in front of me. I’m not going to read it all, but I am going to offer to the member to follow up and provide more detailed information on this. I’ll try to keep my answer relatively short.

First of all, yes, I mean, there are seismic events that are caused by human actions, and hydraulic fracturing is certainly one of those. So it’s important that we have a robust monitoring regime for this, but also, I just want to touch a little bit on the regulatory side of things.

I will say that we haven’t seen an increase in earthquake activity year-on-year, and I just want to make that clear, but we have increased the amount of monitoring over time. That has been really important. The B.C. Energy Regulator has a number of strategic partnerships under which they can undertake monitoring. They’ve increased the number of seismic monitoring stations from two to 45 since 2013, and are very committed to this leadership role that they take, in detecting and mitigating induced seismicity that’s associated with oil and gas and with hydraulic fracturing, for example.

One example that I’ll provide is that there are specific monitoring and mitigation areas, for example, where the hydraulic fracturing operations are suspended if a magnitude-3.0-or-above earthquake is detected. Those are important steps to take to prevent the kinds of impacts that the member is talking to.

I’ll also speak briefly to the fact that there is a regulatory framework around this and that, in 2015, amendments were made to the Drilling and Production Regulation that included mitigation measures for this induced seismicity. It requires listing actions that are taken if there’s a seismic event that occurs within a three-kilometre radius of a disposal, injection or fracturing operation, for example.

The member also asked a question around securities or how risks to local infrastructure would be accommodated. There’s no bonding framework for this, but companies are responsible, and they are liable for damage, should it occur.

I think I’ll stop there, but I’d offer that I could follow up with her.

[2:55 p.m.]

S. Furstenau: I am out of our allocated time, but I’m just going to end with one question, not on fracking but on two areas of provincial rebates: one for people being able to bring in heat pumps and the other for electric vehicles.

Does the minister envision there being changes to these rebate programs that will improve access for people to heat pumps, whether they rent or own, live in a house or an apartment as a strata — I know the former member was asking about that — and also looking at extending EV rebates to retrofitted vehicles?

Hon. J. Osborne: Thanks for the opportunity to talk about great programs that government is providing to support people making the switch to clean energy.

The short answer to the member’s question around offers around heat pump rebates and supporting people to do that is yes. We already offer programs, but yes, I’m hoping to have more to say soon about more.

Right now tenants, for example…. I think it’s important to talk about some of the groups that have been a little bit more disadvantaged by current rebate programs. One of those would be tenants living as renters. Tenants are eligible, under the Better Homes program, for heat pump supports. There are incentives that are provided to multi-unit residential buildings for whole-building work on heat pumps. That’s through the Better Buildings program.

[3:00 p.m.]

We’re working with utilities right now on how to help incentivize individual suites within multi-unit residential buildings. That’s an area, I’m particularly happy to say, where I hope I’ll have more to say soon.

I think the vehicle retrofit question is an excellent one. There are two programs right now where those supports are provided. One is through the ministry, my ministry, which supports commercial vehicle conversion through the go electric commercial vehicle pilots program. That’s up to 33 percent of the total cost of conversion.

The Ministry of Transportation and Infrastructure also offers conversion support for medium- and heavy-duty trucks in particular, and this is in partnership with the B.C. Trucking Association. Again, this offers up to 30 percent of the total costs of conversion to electric, up to a total of $10,000.

Thank you very much to the member for great questions today.

S. Furstenau: Thanks to the Chair, and thanks to the minister and her staff. I appreciated having the oppor­tunity to ask these questions.

The Chair: Seeing no further questions, I ask the minister if they would like to make any closing remarks.

Hon. J. Osborne: Thanks very much, Chair. I just want to say thank you to my critic and other members of the other parties for bringing their questions forward, as well as the member for Parksville-Qualicum.

I really want to say a big thank-you to the staff who have been here to support me over the last nine hours or so of estimates.

That’s it. Thanks very much.

The Chair: Thank you, Minister, and thank you to all members.

Seeing no further questions, I will now call the vote.

Vote 23: ministry operations, $121,111,000 — approved.

The Chair: Thank you very much, Members.

The committee will now take a five-minute recess while we prepare for the next ministry.

The committee recessed from 3:01 p.m. to 3:14 p.m.

[N. Simons in the chair.]

ESTIMATES: MINISTRY OF FINANCE

The Chair: Good afternoon, Members. We are here in Section C, Committee of Supply. We are considering the estimates of the Ministry of Finance. We will start with an opening from the Minister of Finance.

On Vote 26: ministry operations, $413,107,000.

Hon. K. Conroy: Before I hand it over to our critic, I wanted to say that due to the fact that the majority of our staff are in my office, the farthest away room you can get from this room, we will be calling people to come and help with answering questions, so there might be a delay sometimes in answering the questions. We hope that people can bear with us. We apologize for that. That’s due to the circumstances around the room and the extensive number of staff that support me in estimates.

[3:15 p.m.]

P. Milobar: I appreciate that, and the extensive number of staff the minister has to help us answer these questions over the next few days. I will give a shout-out to my one researcher and one or two interns that are even farther away in the basement of the building, and now I’ll make it on their bingo card again for referencing them.

I do look forward to the next several days’ worth of questions and answers around the overall budget document. I guess I’ll start off. As the minister knows, we’ll get to the Columbia treaty around four o’clock. I apologize. We were going to lead off with that, but then schedules changed a bit.

Before then, I did want to touch a bit on the credit ratings and the effect they’re having on our debt-servicing costs. In the budget, there are projected borrowing costs, both for this year and for future years. Were those projected costs based on the credit rating that we had before the budget was announced, or did it take into account potential credit downgrades over the three-year fiscal plan?

[3:20 p.m.]

Hon. K. Conroy: Before I start, I’m going to introduce the staff that are here with me now. I have Heather Wood, my deputy minister; Jordan Goss, my associate deputy minister; Amanda Thompson, acting assistant deputy minister for Treasury Board; Fisnik Preniqi, executive director of fiscal planning and estimates.

Just to clarify for the member, changes to the credit rating…. They’re just one of the factors. Credit ratings are one of the factors that affect the debt-servicing costs. More importantly, the interest rates are the economic factor that affects everyone, including our province and other prov­inces right across the country.

P. Milobar: Thank you, all.

I appreciate that, but the credit rating is a factor into the overall debt-servicing costs, especially for the debt the size of the province of British Columbia’s as it’s projected to grow over the next several years.

Again, was there any calculation taken into account, with the dollars that are identified for future borrowing costs…? Did that take into account any potential credit downgrades, or was it predicated simply on the pre-budget credit rating that the province had?

Hon. K. Conroy: No, it was predicated on what was existing at the time when the budget was developed. Since that time, three of the four rating agencies have affirmed our credit rating. In fact, DBRS just affirmed this morning. They confirmed our AA-high credit rating with a stable trend. They highlighted the province’s economic strength and diversity, disciplined management practices and pru­dent fiscal approach. Actually, we’re the only province in Canada that maintains a triple-A credit rating.

P. Milobar: Yeah, with that agency. Standard and Poor’s — I’ll quote from their downgrade:

“We expect that the province’s fiscal performance will materially deteriorate in the next two years. With operating deficits of more than 5 percent of operating revenues and after-capital deficits of about 20 percent of total revenues, B.C.’s budgetary performance will be the weakest of its peers, both domestically and internationally.”

“We could lower the ratings in the next two years if B.C. maintains its current fiscal trajectory, as reflected by operating and sizable after-capital deficits…Lack of a medium- and longer-term view and commitment to ensure fiscal sustainability could also affect the rating.”

[3:25 p.m.]

Moody’s said:

“Material rise in the debt burden weakens debt affordability and reduces fiscal flexibility.”

“The province’s increased spending focus…could result in a sustained debt increase in the absence of significant mitigation efforts.”

“We view these deficits as structural in nature, especially given the lack of clarity by the government on a path back to balance.”

“The rating could be downgraded if the province is unable to meaningfully improve its fiscal trajectory over the next 18 to 24 months, resulting in material deficits.”

These are the comments of rating agencies after seeing the three-year fiscal plan being presented in February.

The minister has indicated that the debt repayment dollar figures in this have not taken into account any credit downgrades. Is the minister saying that based on these two agencies’ comments, no other action has been taken from the government from then till now to try to mitigate or address any of these concerns?

[3:30 p.m.]

Hon. K. Conroy: I would also like to quote from some of the places the member was quoting from. Moody’s, for instance, said: “The province continues to budget using significant contingencies to the projections, which provide a level of shock-absorption capacity.” DBRS, again, said: “The rating confirmations reflect the underlying strength and diversity of the province’s economy and its disciplined management practices and a strong balance sheet.”

I think it’s important to point out to the member that credit ratios are actually an assessment for investors. And investors take into consideration a number of factors when they look at B.C., like our trade ability, a number of other things. They also take into consideration things like our ESG policies. In fact, when we were on our latest investors tour, every one of them talked about our ESG policies and what they meant to them and how positive they are and how it affected how they feel about investing in B.C.

I want the member to know that investors are very interested in investing in B.C. We’ve released a number of bond issues and have had very good response from people right across North America, and we will continue to do that, because we know we’re on the right track, and we know that the investors are very happy with what we’re doing.

P. Milobar: Well, again, the question wasn’t around DBRS. It was around very specific quotes and concerns issued by Standard and Poor’s and Moody’s. The question was: based on those comments, did the government take any action at all to try to adjust anything within their fiscal plan framework? Or did they just simply ignore the concerns by Standard and Poor’s and Moody’s when the credit downgrades happened?

[3:35 p.m.]

Hon. K. Conroy: The province still stands firmly be­hind our budget. We knew that rising debt could attract attention, so it wasn’t unexpected. Over the long term, this is the best path moving forward for the people of the province. I will remind the member we are an economic leader in Canada. We have one of the lowest GDP-to-debt ratios of the provinces, and we actually have the lowest interest bite out of all the provinces. We still continue to have that.

We still have some of the highest credit ratings in Can­ada. Again, we are the only province with a triple-A credit rating. We know that that’s a good thing. The other three of the four agencies gave us a double-A high with stable outlook. I think that’s a recognition of strong credit fundamentals that we continue to enjoy.

This is about putting forward a budget that’s right for people in this province. It’s right to support people in this province, and that’s what we had to do. We take this all into consideration.

Again, credit ratings don’t deliver or direct policy for governments, but we do work with the credit-rating agencies and appreciate their input.

P. Milobar: Well, to be clear, Standard and Poor’s — you are double-A negative with a negative outlook, not a stable outlook.

It’s interesting. I keep asking questions about Standard and Poor’s comments, and the minister goes to a totally different credit-rating agency’s comments or rating. The question has been: has the government taken any actions whatsoever in regard to the comments and the concerns raised? In this case, we’ll stick to Standard and Poor’s.

[3:40 p.m.]

Is the minister saying the government only intends to ever action things that are favourable commentary from credit-rating agencies and just completely ignore negative commentary by credit-rating agencies? What exactly is the plan by this government when they have a significant one of four credit-rating agencies, in this case Standard and Poor’s, with a fairly clear commentary around concerns that they’ve raised?

Is the government saying they are not taking any actions whatsoever to even remotely try to address any of those concerns because it doesn’t fit, I guess, a political narrative that the government wants, so they’ll just choose to ignore Standard and Poor’s commentary?

Hon. K. Conroy: Credit-rating agencies don’t deter­mine government policy. Of course we consider feedback, whether that’s positive or negative. We take all feedback very seriously.

[3:45 p.m.]

I want to remind the member again that credit ratings are just one of the factors that go into developing a budget. There are numerous factors that we have to take into consideration when we’re developing budgets. It’s a part of the process when we are putting the budget into place, and we need to make sure that we take all those factors.

The bottom line is we have to remember we’re developing a budget for the people of British Columbia. We’re developing a budget that’s best going to meet the needs of the people of the province at this time.

P. Milobar: Well, the concerns expressed predominantly summarize up as concerns around no plan by this government to get back out of deficit any time soon. So has there been no change in outlook by the government in terms of these two warnings by credit-rating agencies that if there’s not, basically, a reassessment of the government’s plan to not seek to try to balance a budget any time in the near future, future credit downgrades are likely to occur?

[3:50 p.m.]

Hon. K. Conroy: I’ve had these very discussions with investors that the member is talking about, and I was very clear to say that in principle, we are committed to a path to balance, but not within this fiscal plan, just because it’s really important that we continue to support people in this province.

Under the current climate, with inflation going up, slow growth and a general — it’s globally, but it’s also nationally — economic slowdown, we know that we have to continue to prove we have transparency. Investors wanted to hear that. They wanted me to be very upfront about the direction we were moving in.

I want to remind the member that other provinces, like Quebec and Ontario, and the federal government all have similar deficit growth — in fact, much larger than ours — and no longer have a path to balance either.

P. Milobar: Well, we can also look at other provinces like Saskatchewan and others that have a much different debt profile than ours. Even when they’re in a negative per capita, it’s significantly different than where we’re at, based on the overall budget dollars being expended versus deficit.

Back to the B.C. situation, because that’s where people watching actually live, and this is where we have all tried to run to help govern and question and make a better prov­ince — not Quebec, not Ontario, not Saskatchewan but B.C.

The reason I’m asking these questions is…. I appreciate that a lot goes into the calculations for what the overall debt-servicing cost is, but there is a calculation, and bond ratings actually do factor into that. As the minister has said, it’s a part of it.

The minister has said the numbers in the current fiscal plan do not take into account the possibility of a credit downgrade, yet we now already have one credit downgrade, with another one looming, with Moody’s saying essentially if things don’t change, expect one. The minister has now confirmed they have no plan to change things.

Between February and today, have there been any recalculations moving forward by the ministry on what a realistic new view of borrowing costs are going to be for the taxpayers of British Columbia, based on the fact that the input factor of credit ratings impacting borrowing costs seem to be locked in and inevitable by this government moving forward?

[3:55 p.m.]

Hon. K. Conroy: I want to remind the member that rating agencies, when they look at ratings, do compare other provinces. They do take other provinces into consideration, just so the member knows that.

After the April 8 ratings downgrade from S&P, B.C.’s in­dicative domestic borrowing costs have increased, roughly, about three bonus points. So based on ’24-25 borrowing requirements, the extra interest would be about $7 million a year in a $70 billion or $80 billion budget.

All of these changes…. There are a number of changes that will happen, because budget, things, changes happen, and that will all be reported out in the first quarterly report that has to be done by September 15. It’s not like, as the member inferred, that we are ignoring things. We will be looking at those, at all the changes that come about, be­cause they do, and that will all be reported out in the first quarterly report.

P. Milobar: I’ll come back to this. Unfortunately, I do have a meeting I have to run to for a few minutes. But the member for Columbia River–Revelstoke is our Columbia treaty critic, and he was going to be asking questions today anyway, so he’s going to take over the next section. But just so the minister knows, I’ll come back. I still have a few questions around the ratings and a few others on the debt-servicing when I do come back, just so she knows for her own staff.

The Chair: Member for Columbia River–Revelstoke.

D. Clovechok: Thank you very much, Mr. Chair. It’s always a pleasure to see you. I’d call you Nick, but I can’t. Anyway, it’s always a pleasure to be here.

[4:00 p.m.]

First of all, I want to thank my colleague for the time that we’ve been allotted today, which is short, so we’ll keep introductions short, but we’re able to eke out a….

The Chair: Sorry to interrupt you, Member. They’re changing staff out here, so if we just give you 15 seconds before we ask this question. You can start over, if you feel like.

D. Clovechok: All right. I’ll start all over again. Good to see you, Mr. Chair.

First of all, I want to thank my colleague for the time. Our time is limited today. We were able, I think, to eke out an extra 15 minutes or so, so we’ll get right to it.

Right off the top, I just want to say thanks to the minister. This is truly a file that over the years it’s been a pleasure to work on with the minister. At the heart of all of this are the interests of shared constituents in and out and throughout the basin. It’s certainly one of the most enjoyable roles that I’ve served in, in terms of being in the Legislature.

I want to thank Kathy and Les. I haven’t had as much time to work with Les, but he’s truly a gentleman. Kathy is the consummate professional. She’s just amazing.

You can’t let her retire, Minister, because I don’t know what we’d do without her. I just want to recognize that right from the front.

Also, I want to take a quick minute to recognize the CRT local governments committee as well: Cindy Pearce, who’s the executive director; Linda Worley, who’s the chair; Stan Doehle, who’s the vice-chair; and all of the other board members who sit on that committee. They do really, really good work and have pushed the work of the treaty north of the border further than I think what has certainly been done south of the border. I want to recognize them right on the get-go.

Last year I had the opportunity to ask what the status was for the treaty and if there was an actual date. From the Hansard, I’ll read. “There is no actual date. I know the Americans would like to wrap things up by this summer, but from our perspective, we want to make sure that we have an approval-in-principle that we can take back to the basin…” and say to the residents that this is the direction we’re heading in.

Here we are. Almost a summer has passed, and we’ve still got no agreement-in-principle. The first question I would ask is: what would be the status of the negotiations, and is there any sight on the horizon of an agreement-in-principle?

Hon. K. Conroy: Thank you to the member.

I do want to reiterate what you’ve said, not in detail, but just: yes, Kathy and Les are amazing supports for me from EMLI. We call Kathy our treaty whisperer because of the amazing work she does. Of course, Les is our assistant deputy minister, the work that he does not only on the treaty but with all things Columbia — the trust and the power corp. too.

The member is quite right. The local governments committee has done amazing work. I want to acknowledge them because they have been just incredible with the work they’re doing.

I will say that negotiations are ongoing — I’m not just going to say “ditto” to what I said last year, but virtually, for the most part — but not all the time. We feel that the majority of the outstanding issues have been resolved. We know that we’ll reach an agreement-in-principle when both countries are satisfied that a modernized CRT meets our respective interests.

Again I’ll say that we want to make sure that those interests are in the best interests of the people of the Columbia Basin of British Columbia.

D. Clovechok: Well, thank you for that answer, Minister. The word “satisfied” — you used that word. I’d like to explore that word just a little bit with you, if you don’t mind.

The satisfaction, I think, is probably not jointly shared on behalf of the Americans as compared to Canadians. Maybe you could tell me what the Americans would consider “satisfied.”

[4:05 p.m.]

Hon. K. Conroy: The Americans have three priorities. One of them is rebalancing the Canadian entitlement. The other is flood risk management. Then the third are of course environmental objectives, which are very much, for all of us, something that wasn’t discussed in the ’60s at all. Most of the non-financial issues have been addressed, save for a few that can’t be discussed here.

I think the main sticking point for the U.S. is the offer for compensation — the whole issue around the Canadian entitlement. We’re not going to accept compensation that isn’t fair to…. Gives us our fair share of the benefits of the treaty…. It also has to be reflective of the constraints and impacts of the treaty in B.C. We want to make sure we continue to get the funding that should be coming to us because of what we are providing to the United States.

D. Clovechok: Just around the Canadian entitlement, would it be fair to say that the U.S. is looking to reduce that payment? If so, are we sticking to our guns, so to speak, in terms of keeping the status quo as far as the entitlement payment that we receive?

Hon. K. Conroy: The Canadian entitlement does reduce over time and as demand grows in the U.S., the northwest part of the basin. The U.S. is looking for concessions that I would say are unreasonable. We are sticking to our guns, as the member said.

We do want to make sure that we are sharing in the benefits. But the reality is that we’re going to share in benefits, but we are not going to give up funding or compensation — what is duly ours. We’re going to make sure that we do stick to our guns, that we are going to be properly compensated and that we’re going to make sure that all of the benefits that the U.S. side of the basin gets from the Columbia River treaty, they get, but with the continuation that we get the funding for it.

D. Clovechok: Well, thank you very much, Minister, for that.

Speaking hypothetically of course, if the Americans decided that they did not want to do that, is that a deal-breaker? If they said, “No, we’re not going to give you that money anymore,” then what’s the recourse?

[4:10 p.m.]

Hon. K. Conroy: We still have a treaty, and we both have to abide by it. And we have a right to expect compensation. It might not be what the U.S. wants, but we have a right to expect that compensation in expectation of what we are providing for the U.S.

D. Clovechok: That’s encouraging to hear, Minister. Thankfully, that’s the case.

I think one of the exciting things that I’ve seen, not only as a critic but as MLA for Columbia River–Revelstoke…. The headwaters of the Columbia River are ten minutes from my home. One of the exciting things is that more and more people are taking an interest not only in the CRT but also the CBT and the CPC.

One of the things that I’ve heard over and over again as of late is about Canadian sovereignty and water security. An example that I can give you is that because I live so close to the Columbia River and Columbia Lake, every afternoon during the summer we take our dogs to what we call our dog beach. It’s just an outcrop of gravel, but they have a great time.

Long story short, Minister, is that this past end of August, early September…. I have been in this valley since I’ve been five years old. I have never seen water levels that low in the Columbia River at that particular time. So there is a huge concern of residents, not only in my area but throughout the basin, around water accessibility and water future.

I’m wondering if the minister might be able to talk a little bit about it, because Canada obviously is involved in this. Is Canadian sovereignty over our waters a forefront issue, and is it being discussed?

Hon. K. Conroy: I’m not trying to trump the member, but I’ve been watching the water level since I was four. I remember watching houses being taken away even before the dam was built and it was flooded.

But I will say, speaking on the Arrow Lakes reservoir, it experienced below-average levels in the summer and fall of 2023 and, due to severe drought conditions, some of the worst conditions that we’ve had since 2022. In addition, I know that flows out of the Arrow Lakes reservoir increased in August because we had to meet our requirements to the Columbia River Treaty. We are required to provide a certain volume of water to the U.S. for flood risk management as well as other downstream benefit issues.

[4:15 p.m.]

I will say that local government, stakeholders and residents have really expressed concerns about the impacts of last summer and fall’s really low Arrow Lakes reservoir water levels on industry, recreation, tourism, fish populations and private property.

Concerns have also been raised about Lake Roosevelt, just downstream from Washington state, but also the Kinbasket Reservoir, which is, I believe, in some of the area that the member is talking about, in the East Kootenays. There were some issues around what was happening. I know that especially the Kinbasket Reservoir, just located upstream, was kept at higher levels, while Arrow Lakes reservoir was drafted so low, which created issues in the whole reservoir and the whole region.

We’re well aware of the treaty’s impacts on the reservoirs, and we’re really committed to seeking improvements through ongoing negotiations with the U.S. That’s part of the modernization of the treaty.

I know the primary goal for the Canadian negotiating team is to gain that additional flexibility for how B.C. operates the treaty dams. It’ll allow B.C. to adjust operations to support objectives for the ecosystems like fish spawning, which has been a big issue, Indigenous cultural values, the socioeconomic interests that we always talk about — doing that without approval from the U.S. so that we have some control over our water levels right across the basin.

D. Clovechok: Thank you for that answer, Minister. I’m glad you did bring up the Arrow Lakes issue. It’s certainly something that I know that I’ve been hearing about and my colleague in Kootenay East has been hearing about, and I’m sure you have. Actually, I know you have, because I’ve been following the reports on it.

I guess the question I have on Arrow Lakes is that…. We are bound by treaty. There are X amounts of water that we do have to release. But is the input or, more so, the outtake from Arrow Lakes — is that inside of the treaty negotiations?

Hon. K. Conroy: Yes, Member, it’s part of the flexibility we’re trying to gain for all of our reservoirs and, again, trying to give us more control so that we can make sure that we have the water levels in our parts of the basin that are appropriate.

D. Clovechok: Thank you, Minister.

Would it be safe to say then that the treaty, if you can use seven generations, is looking that far forward? With the drought situation last year and the one that we’re expecting up and coming this year, we’ve got to start thinking about our water generationally, and I’m worried that we’re focused only on today.

Does the treaty itself look at what that water is going to look like, you know, 50 years, 60 years, 70 years from now, and is that part of the negotiation strategy? I don’t know if you can answer strategy or not, but is the future of our water sources on the table?

[4:20 p.m.]

Hon. K. Conroy: I think the U.S. and Canada both agree we have to incorporate and adapt management over the long term to take into account climate change and evolving scientific and Indigenous knowledge and rapidly evolving energy system needs. I think this is good news in a modernizing treaty we’re both on the same wavelength with this.

When the member talks about seven generations, yes, we have to look at the treaty in this way. I mean, when the treaty was developed 60 years ago, I don’t really think…. The only thoughts in those days were power generation and flood control. It wasn’t about thinking how their children’s children were going to be affected by this. I, personally, don’t have that luxury. I’m constantly thinking about how this is going to affect my children and my children’s children, my grandchildren, for years to come, generations to come. We have to think of that.

We see what happened to people in the basin many, many generations ago, who were deeply affected by this, and some of their descendants are still around today who will talk about how they were affected by this. Some of those very people are still around today. So we have to keep that front and centre at all times.

We have to make sure that we are doing this work to ensure that the generations to come won’t be dealing with what we are dealing with now. And these are things that were never discussed in the original treaty back in the ’60s. So this is very important for not only us but also for the Americans.

D. Clovechok: Thank you for that. It’s encouraging, Minister.

I just want to kind of pop back to a question I had a little bit ago — I didn’t get an answer, I just realized; it popped into my brain because I was so encapsulated by what you were saying — about the sovereignty issue. Is that being represented by Canada to the Americans about this, that we are sovereign over these waters — of course, with our First Nations partners?

[4:25 p.m.]

Hon. K. Conroy: We have always retained sovereignty of our water. Any treaty operations have to be agreed on by the province of B.C., and Canada supports us in this. I just want to make sure that the member understands that it’s a treaty between Canada and the U.S. I know the member does. B.C. is very much a part of it. We have a say in it. We can maintain our sovereign rights.

It’s not a treaty between the province of B.C. and the states where the Columbia Basin sits in the United States, very much between Canada and the U.S. But as a province, we have sovereignty over that, and we will always have sovereignty over our domestic water supply. The treaty allows for domestic water use, and that’s something we will never give up.

D. Clovechok: That’s encouraging, then. Thank you, Minister. I do realize this is a national negotiation. Those that came before us had the insight or the foresight to include British Columbia in those proceedings, so that’s good.

I’m very pleased to hear about the sovereignty piece of it, because when you go across the border, it’s not necessarily what I hear people talking about. Interesting, what I do hear people talking about, as I mentioned at the onset of this, is that more and more people are starting to talk about the Columbia River treaty and Columbia Basin Trust. That’s a good thing because people are really starting to pay attention when it comes to water.

We’ve obviously got an election ahead of us in October, but so do the Americans in November. One of the things that is very apparent in U.S. politics is that the Democrats and the Republicans aren’t always online with one another. When you look at the Columbia River treaty, I think it was you last year, Minister, who mentioned that this was a very bipartisan issue federally with the United States.

With that said, if a new president…. Canada’s Prime Minister and President Biden have weighed in on the Columbia River treaty, from what I understand, and are supportive of it. But come the election time, if the agreement-in-principle has not been signed, is this going to represent a problem going forward, with a potential new president and a new administration? What are the contingencies associated with the chance of that happening?

Hon. K. Conroy: Changes of administration won’t affect what happens with the treaty. In fact, it’s interesting to note that the original negotiations actually started in 2018, under former President Trump. So people keep that in mind. What will happen, though, if we don’t arrive at an AIP before the U.S. actually goes to an election is the negotiations will be suspended until the U.S. is ready to return to the table.

In the meantime, the current treaty just continues as it is. The last election, when President Biden was elected, I think we had almost a year, a year and a half — a very long interregnum. From our perspective, we would not have such a long interregnum, but we hope it isn’t that long. If that’s the case, then hopefully, maybe we do have an AIP before that process. But in the interim, the treaty continues as is.

D. Clovechok: Thank you, Minister. I appreciate that.

We canvassed this a little bit last year, and last year at this time, we had no solid answers. But American politics are obviously different than Canadian politics. Much of their legislation is, obviously, ratified through their Senate.

[4:30 p.m.]

As an update, and I asked this question last year, has there been any knowledge shared of whether or not this agreement that would have to be signed, I assume, by the President would be subject to ratification by the American Senate?

Hon. K. Conroy: Yes, I think U.S. politics are a little different, and the final signature will be by the President of the United States and the Prime Minister of Canada. We’ve been told that they will seek the advice and consent from the Senate Foreign Relations Committee, and that would be prior to it going to the White House for final signature.

The member should know this is still a bit of a grey area. This is what we’ve been told, but we still feel it’s a bit of a grey area.

D. Clovechok: Thank you, Minister, for that great answer.

So if it’s a bit of a grey area, one could assume, then, and one should never assume, that in the event that it had to go to the Senate to ratify it, the treaty could be held up in that process. That would be my question.

Hon. K. Conroy: It’s speculative, but it has always been and continues to be a bipartisan issue in the Pacific Northwest. Members of both sides of the Senate are aligned, and we believe this will continue.

D. Clovechok: Well, I really, really appreciate your opti­mism, Minister, because that’s exactly the way it should shift out.

I want to go back. I have a couple quick questions on climate change and what we’re witnessing.

Last year you said that climate change predictions were being integrated within the modelling of the new river treaty. Could you expand a little bit about that, given we’ve been about a year now, on what and how those climate change predictions are being integrated?

[4:35 p.m.]

Hon. K. Conroy: We do have climate change specialists that are integrating two factors of climate change: how it sits into our modelling and to see how it would affect predictions, especially with regard to ecosystems.

Specifically, B.C. Hydro is also working with consortiums of universities in both the U.S. and in B.C. They are looking at longer-term climate models that actually predict that there’d be more precipitation in the Canadian portion of the basin. But it’s more rain and less snow, which is probably good news for people that like more rain but bad news for people that really like the snow. It also gives some issues around snowpack.

That’s what’s being predicted at this time.

D. Clovechok: Well, thank you, Minister. It has certainly started here in the area of the Kootenays where I live. It hasn’t stopped raining in four days. That’s a good thing.

Another question on the treaty that I just want to very quickly move to, the CBT.

I’ve just got a text from my colleague, and it’s time for me to wrap up. I have a million questions, but I can always send them to you in writing. I just wanted to make sure that First Nations partners are still at the table with you, and if the Sinixt Nation is being consulted as well.

[4:40 p.m.]

Hon. K. Conroy: We continue to work with representation from the Ktunaxa, the Secwépemc and the Syilx Okanagan Nations, who assert rights and title in the Columbia Basin.

The Lakes Division of the Confederated Colville Tribes, a successor group to the Sinixt, who have established some rights in Canada, are part of the U.S. negotiation delegation. They are fully engaged in contributing to the future of the modernized treaty through that route.

D. Clovechok: Thank you very much for that, Minister.

If you don’t mind, I’ll shift over to the CBT right now for a quick question. Then I’ll have to concede my time back to the member that is in charge here.

Last year I talked to you about the renewal of the Columbia Basin Trust MOU. It wasn’t there yet. It’s my understanding that the MOU is ready to go and that, virtually, there are no changes to it. I’d just like to see if the minister can confirm that.

Hon. K. Conroy: We’ve been having discussions with the chair and the board members. There has been a review of the MOU. That has now been completed. We are going to keep the existing MOU as written. It will be reviewed in three years.

D. Clovechok: Thank you, Minister, for that. You and I both know how important the CBT is to our region.

The last question that I have around the CBT…. I know that there are board positions that are coming up. One of the questions I’m asked quite a bit is: how do people become board members on the CBT? Maybe you could explain a little bit about how that works and where everybody comes from.

Hon. K. Conroy: The original Columbia Basin Trust Act…. I agree with the member. The Columbia Basin Trust is an amazing body that we are so fortunate to have in the region. They do incredible work. I want to give a shout-out to Johnny Strilaeff and all of his staff and the board who do a really great job of representing the people of the basin on the board.

The representation is made up…. It’s rather unique. It was developed through the original act in the ’90s.

There is one representative from each of the regional districts that are in the basin. The regional districts choose that representative, and the government anoints them, approves them. So there are five there. There’s also one representative from the Ktunaxa Nation who they recommend. Then there are six members who are also appointed by government, with considerable input from local governments, the CBT board, people throughout the basin.

[4:45 p.m.]

If people have an interest, they can actually go to their local regional district. Some of the regional districts actually appoint regional district members who sit on their board, but some regional districts take someone from the community and appoint them to sit on the board. It’s almost like an elected position within their organization.

People can go to their regional district, if they are interested. They can also go on the CABRO website, if they want to express interest. There’s a process that they can apply through that as well.

We make sure that we have a diversity of skills just to make sure that there’s always a good diversity amongst all the board members. We also look at where they’re from geographically so the entire basin is represented. I mean, it does help having regional district people on the board. Then they’re represented from the North, the regional district of Valemount, all the way over to all the other regional districts down to the borders of the basin.

We want to make sure that they’re represented, that the diversity is there and that we have excellent members on the board. Over the many years, well over 25 years, that the trust has been in existence, it has had an amazing group of board members who are very committed to the trust, and all from the basin.

D. Clovechok: Thank you for your time today, Minister.

Thanks again to Kathy and Les and all the other folks that are working on the CRT. It has been my pleasure. This is truly one of the most important files, I think, there is in government.

I look forward to seeing the minister when I’m back in the Legislature very, very soon.

With that, I’ll take my seat and turn it over to the member for Kamloops–North Thompson.

The Chair: Thank you, Member. We look forward to seeing you too.

I now recognize the member for Kamloops–North Thompson.

P. Milobar: Thanks. I’m wanting to check if the minister wants either a break or a staff changeover before I go back to where we were at.

The Chair: All right. Members, we will take a seven-minute recess.

The committee recessed from 4:47 p.m. to 4:53 p.m.

[N. Simons in the chair.]

The Chair: All right. I’ll bring Section C, Committee of Supply, considering the estimates of the Ministry of Finance.

P. Milobar: On the questions that I was asking before we had the Columbia treaty interlude there, the minister had mentioned that our ESG policies are well received around the world. I have no doubt that they likely are.

I found that comment interesting, because the year preceding the minister becoming…. Well, not even the year. Just a few days before the minister became the Finance Minister, when the Economic Forecast Council presented, there was actually a second presentation in the afternoon around ESG, and it was a different set of economists, agencies and groups out there that helped advise the former Finance Minister on ESG and things that were happening within government.

I would note that this year, in December, at the Economic Forecast Council meeting, there was no such presentation. Why has the government stopped having that type of a presentation around ESG as it relates to their budgetary priorities?

[4:55 p.m.]

Hon. K. Conroy: ESG has moved to the Ministry of Jobs, Economic Development and Innovation. With that has moved…. We now have a centre of excellence at JEDI that is supporting businesses and corporations in the province to move forward with ESG.

We continue to report. There was an original report done in 2022 just on what everything the government was doing, and last December we released a data supplement to the original report just updating all of what we were doing, how we were doing it. Investors really wanted to know more so that’s why Finance did a data supplement to the original report. But it’s not gone. We’re haven’t dispersed with it, but it is now housed in the Ministry of JEDI.

P. Milobar: I guess the reason I raised that was because the minister referenced ESG as a strength as it relates to the budget. But as I say, I found it strange that it wasn’t part of the Economic Forecast Council anymore.

Part of the concern that we’ve seen is, with the Economic Forecast Council coming out this year, the ministry seeming to thank their advice in the budget book on page 77, for 2024, but exceeding what the EFC is projecting to be the average. Typically, it’s my understanding that government tends to budget under the average for the B.C. real GDP change. This year it was 0.3 higher which, to those at home might not sound like much, but the difference between 0.5 to 0.8 is quite significant when you look at it in those terms.

[5:00 p.m.]

[M. Dykeman in the chair.]

Why this year of all years did the government decide to ignore the Economic Forecast Council and actually project higher than their average? And can the minister point to the other years that they may have gone higher than the Economic Forecast Council’s average?

Hon. K. Conroy: We are absolutely not ignoring the Economic Forecast Council’s advice. That’s why we’ve published it in our budget, all the things that we do. We value their opinion. The Ministry of Finance forecast for B.C. real GDP growth is within the range of the Economic Forecast Council over the forecast horizon.

EFC members have a fairly wide range of views on the economic outlook, with a wider range from 2025 onwards. I know the member would have realized that when he was sitting in the meeting this year and listened to the varying views.

The ministry is maintaining a generally prudent economic forecast, allowing for flexibility in the economic forecast for B.C. real GDP such that it may or may not be prudent compared to the average of the Economic Forecast Council. This allows for more flexibility in the ministry’s development of the economic forecast to better reflect economic conditions and professional judgment.

It’s not the first time that the Ministry of Finance’s forecast has been above the average of the private sector forecasters. This occurred in the first and second quarterly reports last year and has also occurred in some previous budgets. For example, in some years of the projection horizon in Budget 2022 and Budget 2023, the ministry’s real GDP forecasts were slightly above the private sector forecast.

P. Milobar: I appreciate the minister hasn’t been the minister through the whole time frame of the Economic Forecast Council being in its existence, but certainly, there are a lot of ministry staff here and also watching on various platforms around the province to help feed in answers.

Has it just been under the NDP that we’ve seen the Economic Forecast Council projections be elevated within the framework of the government and the Ministry of Finance budget versus the Economic Forecast Council’s average, or has that been a long-standing tradition for budget-making in B.C.?

[5:05 p.m.]

Hon. K. Conroy: In 2009 and 2011, we matched the Economic Forecast Council. That was in the later years of the five-year economic forecast.

That’s as far back as we have with the data here. We’d have to go back and look to go past 2009. Right now that’s the information that we have here.

P. Milobar: What would have been the ultimate differentiation in the budgets had the government just even done that and held the line at matching the economic forecast average versus exceeding the economic forecast average? What would be the net change to the overall look of the budget in terms of a deficit or surplus?

[5:10 p.m.]

Hon. K. Conroy: On page 57 of the budget and fiscal plan, there’s actually a table that’s published in the plan. It talks about the key fiscal sensibilities when we’re developing the fiscal plan, the risk to the fiscal plan. For instance, in a nominal GDP, a 1 percent risk could result in a $200 to $300 million impact — positive, that one.

The lumber prices. An increase of $50 is $100 million to $125 million. Of course, with the U.S. exchange rate, 1 cent means $25 to $50 million less. So you can look at the sensitivity variables within that chart.

[5:15 p.m.]

Again, it depends on which component is changing, because there’s a number of components of the economic forecast that is involved with this. It’s not just one or two issues; it’s a number of issues. It can be quite complex to determine.

But I just want to point out that our forecast of 0.3 percent points is very modest. That’s 0.3 percent above the Economic Forecast Council. That’s a very modest amount.

P. Milobar: It’s not a regular amount, as we have established. It was either at equal to average, or the only other times in recent history that it’s been above is when the NDP has been in government. From 0.5 to 0.8, the 0.3 is not insignificant if you look at it out of the overall percentage. If it was 0.3 on 2 or 3 percent, that’s one thing. But when you’re talking almost 50 percent over what the Economic Forecast Council was saying, it’s not insignificant.

I guess it all ties together. The questions around debt-servicing, the questions around the credit rating impacting that. The minister may say it’s only $7 million difference. Well, where I come from, we have a massive shortage of daycare, and that would provide about 150 daycare spaces. It would provide probably about 30 to 40 housing units, desperately needed.

There’s a finite number of tax dollars. That is the point. I think that’s kind of the key to what even the rating agencies are trying to basically nudge the government to recognize. It is that there’s a finite number of tax dollars available before you hit a tipping point. You can’t afford to do everything that would like to be done or needs to be done if there’s not some of that fiscal discipline in play.

This budget has also eliminated the economic forecast allowance for the first time, so there’s no real room for error. Why was the economic forecast allowance eliminated?

[5:20 p.m.]

Hon. K. Conroy: I want to point out that I did not say only seven million; I said seven million. In fact, I’m very prudent, as my family would attest to. They actually call me cheap, but I am prudent.

I know we’ve already enhanced the child care and the housing in Kamloops considerably. I know I’ve been at a few of the announcements for child care in Kamloops and have talked to people that have benefited substantially from new child care in the Kamloops area, as well as the housing.

In direct answer to the member’s question about the forecast allowance, we have really focused on strong contingencies this year to manage unknown or emergent costs, including things like wildfires, drought, floods and other emergencies, primarily climate emergencies, which are pretty critical. We’ve all been seeing them over the last few years.

Also, with current global uncertainty and more climate change arriving faster than predicted, the benefit of contingencies is that they can be used to support people. They have some flexibility. By removing the forecast allowance in Budget 2024, we are also presenting an even clearer picture of government’s expectation of this fiscal plan, which I believe is really important.

P. Milobar: There has been a flurry of announcements by the government over the last several weeks, several of which would exceed the $50 million threshold to make it into the budget book. The answer you get back from government is, “Well, it missed the printing deadline,” or “It was announced after things went to the King’s Printer” and things of that nature, which happens every year. I’m not saying that doesn’t happen with the first quarterly update for those projects.

I’m wondering if those projects are all accounted for within the projected capital expenditures in their respective ministries, or if they have already been coming out of contingencies.

[5:25 p.m.]

Hon. K. Conroy: We don’t use contingencies for capital plans. The announcements the member is referring to are accounted for in the ministry’s capital funding costs. It takes significant time to plan, design, consult on and, ultimately, construct a major capital project.

It has been a long-standing government policy that projects are not reported in the budget or quarterly reporting until the Treasury Board has actually approved a business case. We have many projects that are in the planning phase, where business cases are underway. Treasury Board continues to review the business cases when they’re ready. I look forward to our government announcing these projects in the coming weeks and months as they’re ready and as they’re approved.

[5:30 p.m.]

The member is right. Sometimes business cases are delivered and reviewed by Treasury Board on a timeline that just doesn’t align with the publication dates. The public, we know…. We all know that the public expects a proper due diligence process to ensure the projects that we do support have good value and represent our highest priorities. Rushing the planning and using diligence processes for the purpose of meeting budget deadlines — it’s just not a prudent way to manage the capital plan.

We have to make sure that those plans are approved, that they’ve all gone through the due diligence, that they’re the right plans to move forward prior to them actually being approved.

The member is right. They will be announced in Q1, and some of them will be announced sooner than later.

P. Milobar: I’m not suggesting that they shouldn’t have proper planning or anything of that nature. And as I say, I fully understand the timing. But what I’m trying to dig into here is the use of the contingencies, frankly, in an election year. Let’s be honest. That’s where our headspace is at.

Can the minister confirm that it sounds like the process is that the various ministers responsible for their own responsibilities have come forward with a projected list of projects they would like to see advance forward in a capital plan for the year? Those are all ballparked, albeit final business plans and business cases haven’t been fully established yet. I understand that.

It gives that ministry a ballpark of capital that they’re going to need to do X amount of projects in a year. The Minister of Finance would then, obviously, sign off on everything being included in the budget for those cumulative large sum totals.

Is the minister saying that if a minister — we’ll say of Transportation or Education, whichever — has a project that winds up, as they’re going through the business case, looking like it’s going to cost more money than what was originally projected in the capital plan in this budget, they will not have the ability to go into contingency funds and request contingency funds to cover off that difference, and the project will just have to wait until next year’s budget?

[5:35 p.m.]

Hon. K. Conroy: As part of the budgeting process, the ministries are asked to identify any increased costs of projects that they’re currently working on. That’s based upon construction trends. Trends could be increased labour costs, increased supply chain issues, things like that.

To every extent possible, they are accounted for in our budget. If there’s a change to the budget, it’s actually Treasury Board that looks at the changes. They look at it as part of the annual budgeting process. Just to reiterate, we don’t use contingencies. We don’t use contingencies for capital projects.

P. Milobar: So if a project is going over budget, and Treasury Board still wants it to proceed, where do those capital dollars come from then?

Hon. K. Conroy: Generally speaking, where cost overruns occur, they are accounted for in the next budget. Any changes are reported as part of the quarterly report.

P. Milobar: On page 61, the $3.5 billion of general contingencies is only used for programming and delivery of services then. I understand it would be used for things like firefighting and things of that nature, but nothing in regards to new projects, eh?

Hon. K. Conroy: That’s right.

P. Milobar: Then I’m curious why the change in how the contingencies are being identified moving forward. In this year, in the ’24-25, we have general contingencies of $3.5 billion. We have CleanBC at $385 million, nothing in a new category called “priority spending initiatives and caseload pressures,” yet next year money starts to appear there, and then the following year more money appears into that line item. However, general contingencies still has money, and CleanBC still has money.

[5:40 p.m.]

When this was first raised, when it was first pointed out…. The only real description for priority spending initiatives and caseload pressures is the upcoming FIFA World Cup matches in 2026, where costs and plans are still being developed. I recognize there were dollars released today. This isn’t about that.

I’m just wondering why, if there’s a change in how we’re going to be describing contingencies, this year there was no change in dollars being allocated to any of those three areas, yet the subsequent two years, there is. The reason I ask that is because….

It’s interesting, because when we first raised questions around FIFA, pointing out that the only area we can find the contingencies to account for them, the answer back from government was: “Well, no, no, there’s money there for CleanBC.” Well, no, CleanBC has its own $320 million, not the $1 billion identified for priority spending and caseload pressures. Wildfires and floods were also cited, but those would still be in general contingencies, I’m assuming, since they’re in general contingencies this year.

What else, priority spending initiatives and caseload pressures, would qualify? I recognize, again, as the announcement came out today, that it’s not all FIFA dollars.

Can the minister provide a bit of understanding for people to understand what difference…? We need to now call it priority spending and initiatives and caseload pressures. Suddenly caseload pressures appear for the government in ’25-26–’26-27, but apparently we have no caseload pressures in ’24-25, so that doesn’t require any money this year.

The Chair: A reminder to all members of through the Chair, please.

[5:45 p.m.]

Hon. K. Conroy: The chart the member is referring to…. The first year…. That has all been approved as part of this year’s budget. They’ve allocated spending for general contingencies, which actually includes the regular caseload pressures as part of that number there, the general contingencies. That includes the regular caseload pressures.

The priority spending initiatives and caseload pressures the member referred to are actually a placeholder. It’s the third line here. It has been done in other budgets through­out the years. It’s planning for growing needs like population growth, which has been significant in our province, potential compensation costs and things like that. Those are all based on Treasury Board decisions.

It’s important to remember that contingencies are part of government’s regular financial prudence measures that help government manage contingent events and other un­certain costs and pressures as well. Since the pandemic and, actually, recent climate change issues, as well, those emergencies…. The government has added additional prudence to support recovery efforts, especially with the climate emergencies.

Funding also supports our government services, the shared recovery mandate and other new initiatives where cost may vary for demand based on services and implementation timelines. It’s really important for government to plan ahead to address these priorities.

As we’re just beginning the year, we anticipate notional allocations and forecast change throughout the year and, again, contingency spending. It will be disclosed as part of the regular public accounts financial reporting process.

[5:50 p.m.]

P. Milobar: Well, that sounds like new contingency spending in terms of allocations, and then the general contingencies currently drop by almost $2 billion a year. Is the minister expecting next year and the following year to see fewer fires and floods and the types of climate impacts that we typically see general contingencies wind up having to pay out, which are usually the big ticket hits to general contingencies, not smaller, one-off-type incidents?

Hon. K. Conroy: The member should know that in this year’s budget, the 3,500 is also…. We’re using that as recovering from past events such as floods, and we look at what the potential might be moving out.

It’s also important to acknowledge we have increased the base budgets in the Ministry of Forests and the Ministry of Emergency Management, EMCR. We have in­creased the wildfire services by hiring people full-time, year-round to not only do the wildfire fighting during the wildfire season but also to do the wildfire mitigation in the off-season so that we can…. I mean, who best to do that mitigation than firefighters.

Those people are working year-round now, which is something…. I think we will see the benefit of that come to fruition probably even more so in next year’s budget. I mean, we already saw…. Members probably are well aware we saw a significant increase in the number of people who are applying for jobs with the ministry.

[5:55 p.m.]

The number of people that are joining the wildfire boot camp is substantial, people wanting to work for wildfire. It’s a permanent, full-time job, and it’s a good job. They’re doing substantial work in the province to mitigate against wildfire. We want to make sure that that’s acknowledged.

Both those budgets have seen increases, but also, we do have the statutory spending authority under the Wildfire Act and the Emergency and Disaster Management Act, where funds are provided to make sure that they’re paid for, if those emergencies arise. Contingencies are only one way of making sure that we have the funding for that. I want to make sure the member knows that.

Also, as I said, the third line, or the priority spending initiatives and caseload pressures — again, that is a placeholder. That is exactly why we have placeholders: so that if we know we need those additional dollars in year ’25-26 and year ’26-27, we will have them. When you look across the total, they’re fairly equivalent.

We’ve planned for over $10 billion in the fiscal plan, to make sure that we have those contingencies so that we can deal with the caseload pressures, the unexpected costs of climate-related emergencies and, as we said, things like the other issues that could arise. We feel that it’s not a huge difference, but we are taking into consideration all those issues.

P. Milobar: Well, these are questions tied directly to the contingencies as it relates, especially, to fire. The minister mentions a bump to the Ministry of Forests budget around fire. Well, fire preparedness last year was $45.437 million. This year it’s $46.992 million. So it went up not even by the rate of inflation. It was $204.12 million last year for fire management; this year $245 million gross, and $232.736 million with transfers — again, not even really keeping up with inflation, let alone a substantive growth.

I recognize the ability to dip into contingencies helps offset that. But the reality is that it looks like a large portion of what will be actual seasonal fire activity, not year-round, will still have to come out of contingencies. What is the ministry’s expectation of the drawdown of these contingencies for wildfire this year, based on the fact that we’re not actually seeing an increase in fire preparedness or fire management year over year?

[6:00 p.m.]

[The bells were rung.]

The Chair: All right, Members. Noting the hour, and with a division being called in the main chamber, I now ask the minister to please move the vote.

Hon. K. Conroy: I move that the committee rise, report resolution and completion of the Ministry of Energy, Mines and Low Carbon Innovation and report progress on the Ministry of Finance and ask leave to sit again.

The Chair: Members, you’ve heard the question. The question is that the ministry rise, report resolution and completion of the estimates of the Ministry of Energy, Mines and Low Carbon Innovation and report progress on the Ministry of Finance and seek leave to sit again.

Motion approved.

The committee rose at 6:05 p.m.