BC Today – Daily Report December 6, 2019

Quotation of the day

“This is, at the end of the day, the largest middle-class tax cut in B.C. history.”

Premier says the NDP government’s elimination of Medical Services Plan (MSP) ​ ​ premiums is a net tax cut of $800 million for British Columbians. ​

Today in B.C.

On the schedule The house is adjourned for the Christmas break. MLAs will return to the legislature on February 11, 2020, for the speech from the throne.

Premier and finance minister celebrate end of MSP premiums, rebuff criticisms of employer health tax

British Columbians will receive their final Medical Services Plan (MSP) premium bill this month. The premiums will be fully eliminated effective January 1, 2020 — after being halved this year ​ ​ — and replaced by the NDP government’s employer health tax (EHT).

The move is expected to save families up to $900 per year, based on this year’s premiums, while individuals will save around $450. Eliminating the “regressive” premiums was an early focus for the NDP government as it sought to improve affordability — the main plank in its 2017 election campaign.

“I'm very proud to say January 1 is coming up and there will be no more medical service premium in this province, the last province left in the country to take this on,” Finance Minister said Thursday. ​

“This is, at the end of the day, the largest middle-class tax cut in B.C. history,” Premier John ​ Horgan said of the premium’s elimination. ​

Budget 2019 anticipated $1.2 billion in MSP premium revenue and $1.9 billion from the EHT.

Critics say the NDP has merely shifted the tax burden from families to employers, but the premier rejects the idea that the shift is unfair.

“Eighty-five per cent of small businesses in do not pay the EHT,” Horgan told reporters. The EHT only applies to businesses with a payroll of $500,000 or more within B.C.

He described MSP premiums as “a tithe to the government” and noted that the premiums were not specifically marked for health-care costs, and were just funnelled into general revenue.

“Every other jurisdiction in Canada has found a way to progressively collect revenues to provide services for people, we’re following suit,” he added. “This is not extraordinary and it's a small, small sliver of the business community that's been asked to help us meet our costs, help us meet the needs of the community. I think that's fair and equitable.”

“We have to remember that many large companies were paying medical service premiums for their employees,” James chimed in. “So yes, they'll be playing the employer health tax, but in fact, they won't be paying the medical service premiums.”

The tax has two tiers: businesses with a payroll over $1.5 million, which account for five per cent of companies paying the EHT, will pay 1.95 per cent on their total payroll — the lowest rate ​ among provinces with a payroll tax. ​

Businesses with a payroll between $500,000 and $1.5 million pay 2.95 per cent — but only on the portion of their payroll over $500,000.

The government’s implementation of the tax has also been criticized. This year, individuals and businesses that covered employee MSP paid reduced premiums, but employers also had to pay the EHT — “double-dipping” by the government.

“There's no question there was a transition,” James said. “Transition money was to pay for the MSP disappearing on January 1, to ensure that we could manage the budget, balance the budget and continue to invest in other programs and services ... and healthcare.”

Today’s events

December 6 at 8:15 a.m. — Victoria ​ Finance Minister Carole James will host the annual meeting with Economic Forecast Council at ​ ​ the Convention Centre to discuss the province's economic and fiscal outlook ahead of the government’s 2020 budget, which is scheduled to be released on February 18, 2020. James will hold a media availability at 11:30 a.m.

December 6 at 9:30 a.m. — Surrey ​ NDP MLA (Surrey—Panorama) will join students, educators, school district staff ​ ​ and community members to celebrate the opening of new classrooms at Panorama Park Elementary School.

December 6 at 9:30 a.m. — Kelowna ​ Children and Family Development Minister will visit the University Children's ​ ​ Learning Centre.

December 6 at 10 a.m. — Courtenay ​ Education Minister , Indigenous Relations and Reconciliation Minister Scott ​ ​ ​ Fraser, who represents the Mid Island—Pacific Rim riding, and NDP MLA Ronna-Rae Leonard ​ ​ (Courtenay—Comox) will visit Lake Trail Middle School.

December 6 at 12 p.m. — Maple Ridge ​ Advanced Education, Skills and Training Minister will announce employment ​ ​ skills training programs for people aged 55 and older and celebrate the upcoming graduation of a Douglas College training class at the WorkBC Centre.

December 6 at 1:30 p.m. — Vancouver ​ Tourism, Arts and Culture Minister and Social Development and Poverty Reduction ​ ​ Minister will be joined by Marsha Walden, president and CEO of Destination ​ ​ ​ ​ BC, at the Vancouver Aquarium to detail progress made on making B.C. travel experiences accessible to people of all abilities.

December 6 at 2:30 p.m. — Hornby Island ​

Education Minister Rob Fleming, Indigenous Relations and Reconciliation Minister Scott ​ ​ ​ Fraser, who represents the Mid Island—Pacific Rim riding, and NDP MLA Ronna-Rae Leonard ​ ​ (Courtenay—Comox) will attend a community celebration in support of students at Hornby Island Community Hall.

December 6 at 5 p.m. — Victoria ​ Premier John Horgan and , parliamentary secretary for gender equity, will join ​ ​ ​ ​ invited guests and members of the public for a candlelight memorial at the legislature in honour of the 30th Anniversary of the Montreal massacre at École Polytechnique and National Day of Remembrance and Action on Violence Against Women.

December 6 at 6:30 p.m. — Surrey ​ NDP MLA (Surrey—Green Timbers) will host a party fundraiser at Royal King ​ ​ Palace.

Topics of conversation

● Prime Minister Justin Trudeau’s throne speech contained no mention of the “west,” “oil,” ​ ​ ​ ​ ​ “pipelines,” “carbon tax,” or “energy” — save for a reference to energy efficient homes — but it does call for “unity” and include a mention of a “price on pollution.” ○ The speech’s most pipeline-friendly remark was a pledge to “work just as hard to get Canadian resources to new markets” as it does on fighting climate change, and an offer of “unwavering support to the hardworking women and men in Canada’s natural resources sectors, many of whom have faced tough times recently.”

● The speech shows Ottawa is ready to invest in regional transit, according to the Metro Vancouver Mayors’ Council. The proof? A clause that states “regional needs and differences really matter.” ○ “With record-setting growth in transit ridership and a supportive provincial government ready to invest, Metro Vancouver is unique in Canada in terms of being primed for renewed federal investment in transit,” said New Westminster Mayor and council chair Jonathan Cote said. “We look forward to working with ​ ​ federal leaders to identify immediate investments that can be included in this government’s first budget in early 2020.” ○ According to Cote, Metro Vancouver put federal transit funding to work “faster than any other region in the country” during the Trudeau government’s first term and still can’t keep up with growing demand. The council wants a federal commitment to formalize a permanent transit fund, create an electric bus fleet conversion fund, and complete the final phase of Translink’s 10-Year Vision. ​ ​

● Charges have been laid against a Prince George man who was part of a road blockade ​ ​ on Wet’suwet’en territory in January. Participants resisted the RCMP’s enforcement of

an interim injunction related to the Coastal GasLink pipeline. Joseph Choken has been ​ ​ charged with assaulting a peace officer and “wilfully resisting or obstructing” a peace ​ officer. The RCMP told CBC Choken is alleged to have “attempted to push an officer from a box he was standing on, and other officers while they were attempting to use a ladder to cross a barricade erected on a one-lane bridge.”

● How clean is B.C.’s power? Probably not as clean as many of us think, according to ​ reporting from The Narwhal. Last year, the province imported more power than it ​ ​ exported due to the fact that Powerex, BC Hydro’s corporate subsidiary, is mandated to make money by selling power generated within the province when electricity prices are high and import when prices are low. In 2018, power was purchased from 12 U.S. states, many of which primarily generate electricity via coal- and gas-fired power plants resulting in more emissions than B.C.’s own primarily hydro-generated power. ○ Still, Clean Energy Canada deputy director Dan Woynillowicz says “the odds ​ ​ ​ are high” that B.C.’s power exports are still helping displace dirtier power sources.

● Al Jazeera and the Pulitzer Centre partnered to put together an interactive article ​ ​ covering the history of Indigenous opposition to the Trans Mountain pipeline expansion. Nations Divided: Mapping Canada’s Pipeline Battle includes perspectives from “ ​ ​ Indigenous land defenders, community leaders, legal experts and proponents of the project along the pipeline route.”

● B.C. Jobs, Trade and Technology Minister ’s meeting with Alberta ​ ​ Economic Development, Trade and Tourism Minister Tanya Fir was a positive one. “It ​ ​ ​ ​ was a great opportunity to have what I hope will be many conversations about our provinces’ many shared priorities and future opportunities,” Ralston said in a statement to BC Today. Among other topics, the ministers discussed ways to “streamline ​ ​ regulations to ensure small businesses have every opportunity to succeed” in both provinces. ○ “British Columbia has long been of the view that provinces must work to eliminate impediments to trade, investment and labour mobility in Canada,” Ralston said. “Both our jurisdictions have been working to reduce domestic trade barriers. B.C. already demonstrates a high level of ambition in the Canadian Free Trade Agreement and still has fewer exceptions than most other jurisdictions.”

News briefs - Governmental

BC Coroners Service The number of fatal illicit drug overdoses in B.C. is down significantly so far this year, but fatal overdoses remain the leading cause of unnatural death in the province, accounting for more fatalities than homicides, suicides and car accidents combined.

In October 2019, 69 people died of suspected illicit drug overdoses — a 42 per cent decrease ​ ​ over October 2018 and the lowest overdose death toll for October since 2015. Sixty-two of the recorded deaths involved fentanyl.

October’s numbers continue the downward trend of overdose fatalities in 2019 — so far, every month this year has seen fewer illicit drug-related fatalities than corresponding months in the previous two years. Since the province declared a public health emergency in 2016 in response to the overdose crisis, more than 4,500 British Columbians have died of illicit drug overdoses.

Chief coroner Lisa Lapointe called the decrease in fatalities “a promising trend” but noted that ​ ​ the number of non-fatal overdoses has not seen a similar drop.

“We know from our partners in health care that the number of non-fatal drug toxicity events remains high," said Lapointe. "The drug supply in our province is unpredictable and perilous, ​ ​ and the long-term impacts of drug toxicity can be severe ... we need to continue to keep our focus on this crisis of unsafe supply and continue to explore meaningful measures to reduce the risks for all British Columbians.”

Despite the death toll, the NDP government has not heeded calls from Lapointe and other health officials to move towards further drug decriminalization.

From January to October 2019, paramedics responded to more than 20,000 overdose calls around the province — an average of 64 per day. Based on data from BC Emergency Health Services, when paramedics respond to a potential overdose, the patient has a 99 per cent chance of survival.

Fentanyl continues to be the substance most often detected in fatal overdose cases — so far this year, the substance has been associated with 85 per cent of fatal overdoses. In 2012, fentanyl was found in just five per cent of cases.

Ministry of Finance New employment agreements have now been ratified by unions representing all of B.C.’s K-12 support staff and the relevant school districts, according to the finance ministry. ​ ​

All agreements are retroactive to July 1, 2019, and cover three years with general wage increases of two per cent in each year. Individual unions and districts also negotiated additional ​ local funds that will result in “tangible improvements to service delivery.”

Approximately 230,000 public sector employees are now covered by tentative or ratified agreements, per the ministry.

Funding announcements

● The newly announced CleanBC Industry Fund will invest carbon tax revenues of $12.5 ​ ​ ​ ​ million into 16 projects throughout B.C. this year, and additional contributions from industry will raise the total fund value to more than $55 million. One of the beneficiary projects is Harmac Pacific’s pulp mill in Nanaimo where new electrocoagulation ​ ​ technology will improve the waste-treatment process and reduce the use of natural gas to power the on-site biomass boiler. ○ Eligible projects must have emissions over 10,000 tonnes of carbon dioxide equivalent (CO2e) per year and be a reporting facility under the Greenhouse Gas ​ Industrial Reporting and Control Act. ​ ○ Projects approved for funding so far are expected to reduce approximately 700,000 tonnes of CO2e over the next decade — about the same as taking 250,000 cars off the road for a year. Additional projects will be announced in early 2020.

● Over the next three years, the province plans to pour an additional $4.93 million into ​ ​ gang prevention and awareness training programs in Campbell River, Chilliwack, Courtenay and Hope. The funding is on top of the $1.12 million earmarked for the Erase (expect respect and a safe education) school-based gang and gun violence prevention program earlier this year and will expand the program outside of the 12 communities in which it is currently available.

Lobbyist registrations If you are looking for further information on any lobbying registry, it is all public and easily searchable here. ​ ​

Consultants who registered as lobbyists from November 29, 2019 – December 21, 2019

● Doug Williams, Cortex Consultants Inc. ​ ​ o Clients: Mosaic Forest Management Corporation ​

● Matt Williamson, Global Public Affairs ​ ​ o Clients: Imperial Oil Limited, Innovative Medicines Canada ​

● Bradley Lavigne, David Bieber, Counsel Public Affairs Inc. ​ ​ ​ ​ ​ o Clients: Shopper Drug Mart ​

● Thomas Giraud, 1192233 BC Limited ​ ​ o Clients: North Coal Limited ​

● Bruce Young, Earnscliffe Strategy Group ​ ​ o Clients: Shaw Communications ​

● David Cunningham, Graphite Public Affairs ​ ​ o Clients: McKesson Canada Corporation ​

● David Cunningham, Michael Cunningham, Graphite Public Affairs ​ ​ ​ ​ o Clients: Canadian Association for Pharmacy Distribution Management ​

● Chrisitan von Donat, Impact Public Affairs ​ ​ o Clients: Canadian Society for Medical Laboratory Science ​

● Bill Tieleman, West Star Communications ​ ​ o Clients: Royal Bank of Canada - BC Region ​

Organizations that registered in-house lobbyists from November 29, 2019 – December 5, 2019

● Parkland Refining (BC) Ltd. ● Union of BC Performers/ACTRA ● ESIT Advanced Solutions Inc. ● Pacific Canbriam Energy Limited ● FPInnovations ● Motorcycle and Moped Industry Council/Canadian Off Highway Vehicle Distributors Council ● TELUS Corporation