Fift h Session, 39th Parliament

OFFICIAL REPORT OF DEBATES OF THE LEGISLATIVE ASSEMBLY

(HANSARD)

Tuesday, February 19, 2013 Aft ernoon Sitting Volume 41, Number 8

THE HONOURABLE , SPEAKER

ISSN 0709-1281 (Print) ISSN 1499-2175 (Online) PROVINCE OF (Entered Confederation July 20, 1871)

LIEUTENANT-GOVERNOR Her Honour the Honourable Judith Guichon, OBC

Fifth Session, 39th Parliament

SPEAKER OF THE LEGISLATIVE ASSEMBLY Honourable Bill Barisoff

EXECUTIVE COUNCIL

Premier and President of the Executive Council ...... Hon. Deputy Premier and Minister of Energy, Mines and Natural Gas and Minister Responsible for Housing ...... Hon. Minister of Aboriginal Relations and Reconciliation ...... Hon. Ida Chong Minister of Advanced Education, Innovation and Technology and Minister Responsible for Multiculturalism ...... Hon. Minister of Agriculture ...... Hon. Minister of Children and Family Development ...... Hon. Minister of Citizens' Services and Open Government ...... Hon. Minister of Community, Sport and Cultural Development ...... Hon. Bill Bennett Minister of Education ...... Hon. Don McRae Minister of Environment ...... Hon. Dr. Minister of Finance ...... Hon. Michael de Jong, QC Minister of Forests, Lands and Natural Resource Operations...... Hon. Steve Th omson Minister of Health ...... Hon. Dr. Margaret MacDiarmid Minister of State for Seniors ...... Hon. Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour ...... Hon. Minister of State for Small Business ...... Hon. Minister of Justice ...... Hon. Minister of Social Development ...... Hon. Dr. Minister of Transportation and Infrastructure ...... Hon.

LEGISLATIVE ASSEMBLY

Leader of the Offi cial Opposition ...... Adrian Dix Deputy Speaker ...... Assistant Deputy Speaker ...... Dawn Black Deputy Chair, Committee of the Whole ...... Clerk of the Legislative Assembly ...... Craig James Deputy Clerk and Clerk of Committees ...... Kate Ryan-Lloyd Sessional Law Clerk ...... Roderick MacArthur, QC Clerk Consultant ...... E. George MacMinn, OBC, QC Sergeant-at-Arms ...... Gary Lenz ALPHABETICAL LIST OF MEMBERS LIST OF MEMBERS BY RIDING

Abbott, George (BC Liberal) ...... Shuswap Abbotsford-Mission ...... Austin, Robin (NDP) ...... Skeena Abbotsford South ...... Bains, Harry (NDP) ...... Surrey-Newton Abbotsford West ...... Hon. Michael de Jong, QC Barisoff , Hon. Bill (BC Liberal) ...... Penticton Alberni–Pacifi c Rim ...... Scott Fraser Barnett, Donna (BC Liberal) ...... Cariboo-Chilcotin Boundary-Similkameen ...... John Slater Bell, Hon. Pat (BC Liberal) ...... Prince George–Mackenzie Burnaby–Deer Lake ...... Kathy Corrigan Bennett, Hon. Bill (BC Liberal) ...... Kootenay East Burnaby-Edmonds ...... Raj Chouhan Black, Dawn (NDP) ...... New Westminster Burnaby-Lougheed ...... Harry Bloy Bloy, Harry (BC Liberal) ...... Burnaby-Lougheed Burnaby North ...... Richard T. Lee Bond, Hon. Shirley (BC Liberal) ...... Prince George–Valemount Cariboo-Chilcotin ...... Brar, Jagrup (NDP) ...... Surrey-Fleetwood Cariboo North ...... Bob Simpson Cadieux, Hon. Stephanie (BC Liberal) ...... Surrey-Panorama Chilliwack ...... Cantelon, Ron (BC Liberal) ...... Parksville-Qualicum Chilliwack-Hope ...... Gwen O'Mahony Chandra Herbert, Spencer (NDP) ...... Vancouver–West End Columbia River–Revelstoke ...... Norm Macdonald Chong, Hon. Ida (BC Liberal) ...... Oak Bay–Gordon Head Comox Valley...... Hon. Don McRae Chouhan, Raj (NDP) ...... Burnaby-Edmonds Coquitlam–Burke Mountain ...... Douglas Horne Clark, Hon. Christy (BC Liberal) ...... Vancouver–Point Grey Coquitlam-Maillardville...... Diane Th orne Coell, Murray (BC Liberal) ...... Saanich North and the Islands Cowichan Valley ...... Bill Routley Coleman, Hon. Rich (BC Liberal) ...... Fort Langley–Aldergrove Delta North ...... Guy Gentner Conroy, Katrine (NDP) ...... Kootenay West Delta South ...... Vicki Huntington Coons, Gary (NDP) ...... North Coast Esquimalt–Royal Roads ...... Maurine Karagianis Corrigan, Kathy (NDP) ...... Burnaby–Deer Lake Fort Langley–Aldergrove ...... Hon. Rich Coleman Dalton, Marc (BC Liberal) ...... Maple Ridge–Mission Fraser-Nicola...... Harry Lali de Jong, Hon. Michael, QC (BC Liberal) ...... Abbotsford West Juan de Fuca ...... John Horgan Dix, Adrian (NDP) ...... Vancouver-Kingsway Kamloops–North Th ompson ...... Hon. Dr. Terry Lake Donaldson, Doug (NDP) ...... Stikine Kamloops–South Th ompson ...... Elmore, Mable (NDP) ...... Vancouver-Kensington Kelowna–Lake Country ...... Hon. Norm Letnick Falcon, Kevin (BC Liberal) ...... Surrey-Cloverdale Kelowna-Mission ...... Hon. Steve Th omson Farnworth, Mike (NDP) ...... Port Coquitlam Kootenay East ...... Hon. Bill Bennett Fleming, Rob (NDP) ...... Victoria–Swan Lake Kootenay West ...... Katrine Conroy Foster, Eric (BC Liberal) ...... Vernon-Monashee Langley...... Hon. Mary Polak Fraser, Scott (NDP) ...... Alberni–Pacifi c Rim Maple Ridge–Mission ...... Marc Dalton Gentner, Guy (NDP) ...... Delta North Maple Ridge–Pitt Meadows ...... Michael Sather Hammell, Sue (NDP) ...... Surrey–Green Timbers Nanaimo ...... Leonard Krog Hansen, Colin (BC Liberal) ...... Vancouver-Quilchena Nanaimo–North Cowichan ...... Doug Routley Hawes, Randy (BC Liberal) ...... Abbotsford-Mission Nechako Lakes ...... Hayer, Dave S. (BC Liberal) ...... Surrey-Tynehead Nelson-Creston ...... Michelle Mungall Heed, Kash (BC Liberal) ...... Vancouver-Fraserview New Westminster ...... Dawn Black Hogg, Gordon (BC Liberal) ...... Surrey–White Rock North Coast...... Gary Coons Horgan, John (NDP) ...... Juan de Fuca North Island ...... Horne, Douglas (BC Liberal) ...... Coquitlam–Burke Mountain North Vancouver–Lonsdale ...... Hon. Naomi Yamamoto Howard, Rob (BC Liberal) ...... Richmond Centre North Vancouver–Seymour ...... Jane Th ornthwaite Huntington, Vicki (Ind.) ...... Delta South Oak Bay–Gordon Head ...... Hon. Ida Chong James, Carole (NDP) ...... Victoria–Beacon Hill Parksville-Qualicum ...... Karagianis, Maurine (NDP) ...... Esquimalt–Royal Roads Peace River North ...... Krog, Leonard (NDP) ...... Nanaimo Peace River South ...... Krueger, Kevin (BC Liberal) ...... Kamloops–South Th ompson Penticton...... Hon. Bill Barisoff Kwan, Jenny Wai Ching (NDP) ...... Vancouver–Mount Pleasant Port Coquitlam ...... Mike Farnworth Lake, Hon. Dr. Terry (BC Liberal) ...... Kamloops–North Th ompson Port Moody–Coquitlam ...... Joe Trasolini Lali, Harry (NDP) ...... Fraser-Nicola Powell River–Sunshine Coast ...... Nicholas Simons Lee, Richard T. (BC Liberal) ...... Burnaby North Prince George–Mackenzie ...... Hon. Pat Bell Lekstrom, Blair (BC Liberal) ...... Peace River South Prince George–Valemount ...... Hon. Shirley Bond Les, John (BC Liberal) ...... Chilliwack Richmond Centre ...... Rob Howard Letnick, Hon. Norm (BC Liberal) ...... Kelowna–Lake Country Richmond East ...... Linda Reid MacDiarmid, Hon. Dr. Margaret (BC Liberal) ...... Vancouver-Fairview Richmond-Steveston ...... Hon. John Yap Macdonald, Norm (NDP) ...... Columbia River–Revelstoke Saanich North and the Islands ...... McIntyre, Joan (BC Liberal) ...... West Vancouver–Sea to Sky Saanich South ...... Lana Popham McNeil, Mary (BC Liberal) ...... Vancouver–False Creek Shuswap ...... George Abbott McRae, Hon. Don (BC Liberal) ...... Comox Valley Skeena ...... Robin Austin Mungall, Michelle (NDP) ...... Nelson-Creston Stikine ...... Doug Donaldson O'Mahony, Gwen (NDP) ...... Chilliwack-Hope Surrey-Cloverdale ...... Pimm, Pat (BC Liberal) ...... Peace River North Surrey-Fleetwood ...... Jagrup Brar Polak, Hon. Mary (BC Liberal) ...... Langley Surrey–Green Timbers ...... Sue Hammell Popham, Lana (NDP) ...... Saanich South Surrey-Newton ...... Harry Bains Ralston, Bruce (NDP) ...... Surrey-Whalley Surrey-Panorama ...... Hon. Stephanie Cadieux Reid, Linda (BC Liberal) ...... Richmond East Surrey-Tynehead ...... Dave S. Hayer Routley, Bill (NDP) ...... Cowichan Valley Surrey-Whalley...... Bruce Ralston Routley, Doug (NDP) ...... Nanaimo–North Cowichan Surrey–White Rock ...... Gordon Hogg Rustad, John (BC Liberal) ...... Nechako Lakes Vancouver-Fairview ...... Hon. Dr. Margaret MacDiarmid Sather, Michael (NDP) ...... Maple Ridge–Pitt Meadows Vancouver–False Creek ...... Mary McNeil Simons, Nicholas (NDP) ...... Powell River–Sunshine Coast Vancouver-Fraserview ...... Simpson, Bob (Ind.) ...... Cariboo North Vancouver-Hastings ...... Shane Simpson Simpson, Shane (NDP) ...... Vancouver-Hastings Vancouver-Kensington ...... Mable Elmore Slater, John (Ind.) ...... Boundary-Similkameen Vancouver-Kingsway...... Adrian Dix Stewart, Hon. Ben (BC Liberal) ...... Westside-Kelowna Vancouver-Langara ...... Hon. Dr. Moira Stilwell Stilwell, Hon. Dr. Moira (BC Liberal) ...... Vancouver-Langara Vancouver–Mount Pleasant ...... Jenny Wai Ching Kwan Sultan, Hon. Ralph (BC Liberal) ...... West Vancouver–Capilano Vancouver–Point Grey ...... Hon. Christy Clark Th omson, Hon. Steve (BC Liberal) ...... Kelowna-Mission Vancouver-Quilchena ...... Th orne, Diane (NDP) ...... Coquitlam-Maillardville Vancouver–West End ...... Spencer Chandra Herbert Th ornthwaite, Jane (BC Liberal) ...... North Vancouver–Seymour Vernon-Monashee ...... Eric Foster Trasolini, Joe (NDP)...... Port Moody–Coquitlam Victoria–Beacon Hill ...... Carole James Trevena, Claire (NDP) ...... North Island Victoria–Swan Lake...... Rob Fleming van Dongen, John (Ind.)...... Abbotsford South West Vancouver–Capilano ...... Hon. Ralph Sultan Yamamoto, Hon. Naomi (BC Liberal) ...... North Vancouver–Lonsdale West Vancouver–Sea to Sky ...... Joan McIntyre Yap, Hon. John (BC Liberal) ...... Richmond-Steveston Westside-Kelowna ...... Hon. Ben Stewart

Party Standings: BC Liberal 45; New Democratic 36; Independent 4

CONTENTS

Tuesday, February 19, 2013 Aft ernoon Sitting

Page

Routine Business

Introductions by Members ...... 12905

Statements (Standing Order 25B) ...... 12905 Medical residents D. Routley Akbal Mund E. Foster Sport fi shing R. Fleming Heritage conservation M. McNeil Youth skills training initiative in Prince Rupert G. Coons Williams Lake fundraising run for B.C. Children's Hospital D. Barnett

Oral Questions ...... 12907 Electricity rates and B.C. Hydro management J. Horgan Hon. R. Coleman Jumbo Glacier resort municipality M. Mungall Hon. B. Bennett N. Macdonald PavCo response to information requests from media D. Routley Hon. R. Coleman S. Chandra Herbert Environmental review of Enbridge oil pipeline proposal R. Fleming Hon. T. Lake Flood protection in Swansea Point area K. Corrigan Hon. M. Polak

Point of Privilege (Reservation of Right) ...... 12912 Hon. T. Lake

Orders of the Day

Presentation of Estimates ...... 12912

Budget Debate ...... 12912 Hon. M. de Jong B. Ralston

Introduction and First Reading of Bills ...... 12921 Bill 9 — Budget Measures Implementation Act, 2013 Hon. M. de Jong

Tabling Documents ...... 12921 Budget and Fiscal Plan 2013/14–2015/16 Government's service plans and strategic plan

12905

TUESDAY, FEBRUARY 19, 2013 19th century from brief and less formal programs for ex- tra training in a special area of interest. Th e House met at 1:36 p.m. Residencies have long been associated with long hours and minimal breaks. Almost an endurance test, they [Mr. Speaker in the chair.] serve to guarantee the commitment of a student to the practice of medicine. Th ey were almost a hazing in the Routine Business extreme demands they placed on residents. Th ankfully, for residents and patients alike, residencies have evolved. Introductions by Members Th ey still place a high burden of performance and dedi- cation on residents, but conditions now serve to opti- Mr. Speaker: Hon. Members, considering the number mize training and service quality. Much of that in B.C. of guests we have here today, if everybody was to intro- has been achieved by the Professional Association of duce their guests we'd be here for some time, so on be- Residents of British Columbia, which began as the half of all the members, I'd like to welcome everybody Society of Medical Residents and Interns of Vancouver. here for budget day. I'm sure it's going to be an interest- In 1969 the Professional Association of Residents of ing time. Welcome. British Columbia began working for improved condi- We're going to make one exception because the mem- tions for residents. In a complex and rapidly evolving ber for Vancouver-Hastings said his life depended on it. modern medical system, residents continue to pro- vide fl exible, dedicated and excellent service to British S. Simpson: Th ank you, hon. Speaker. I wouldn't say Columbians. that. Th ere are all these wonderful people here today, and I'm glad that they're all here to visit with us, but I really AKBAL MUND wanted today to wish my wife a happy birthday. I hope the House would do that too, because she's in Vancouver E. Foster: Every year cities and towns across B.C. nom- and I'm here. Happy birthday, Cate. inate and recognize individuals for great contributions to their communities. Vernon is no diff erent. Th is year Mr. Speaker: I was just checking to see if there were Vernon's Citizen of the Year is Akbal Mund. Akbal moved any other wives that are having their birthdays — or any to Vernon from New Westminster in 1993 and has been other spouses, I should say, that are having their birth- a positive impact on our community ever since. days. As one of the founders of Wendy's Dreamlift Day, Akbal and his team from Wendy's have raised over $1 Statements million to send children with life-threatening illnesses (Standing Order 25B) and signifi cant disabilities to Disneyland. As president of the 2012 Winter Games in greater Vernon, Akbal assem- MEDICAL RESIDENTS bled and led a team of like-minded individuals to host the most successful B.C. Winter Games ever. D. Routley: I rise today to celebrate Resident Aware- [1340] ness Day. Residency is a stage of graduate medical train- A few more of the many organizations that Akbal ing. A resident is a person who has received a medical has been involved with: Vernon Soccer Association, degree and practises medicine under the supervision of president; Funtastic Sports Society, director; North fully licensed physicians. In B.C. there are 1,100 residents Okanagan Sports Council, president; and, also, fi nding in our hospitals and clinics. the time to coach youth soccer. Akbal continues to make Residents are front-line health workers, often the an impact throughout the community, whether organiz- fi rst contact for patients and families seeking care, and ing a soccer dance, fundraising for local aspiring athletes are available 24 hours a day. They play a vital teach- or volunteering for a fundraising walk. Akbal is leading ing role, educating medical students and patients alike by example and off ering a willing hand for the betterment through their practical work. A successful residency of our community. leads to eligibility for certifi cation of the Royal College It would appear that Akbal's main focus is on sport, of Physicians and Surgeons of Canada or the College of and he certainly has dedicated a great deal of his time Family Physicians of Canada. to sport, especially youth sport. But as folks around Whereas medical school teaches physicians a broad Vernon will tell you, if there is a fundraiser for a non- range of medical knowledge, basic clinical skills and lim- profi t or a charity or any other event to help the com- ited experience practising medicine, medical residency munity, you will fi nd Akbal, his wife, Tania, and their gives in-depth training within a specifi c branch of medi- two girls, Montana and Kennedy, front and centre giv- cine. Residencies as an opportunity for advanced train- ing their support. ing in a medical or surgical speciality evolved in the late I've known Akbal and Tania for several years, and on 12906 British Columbia Debates Tuesday, February 19, 2013

behalf of everyone in my riding, I want to thank them Many families and residents throughout B.C. still live for all they do for the community. I'd like the House to in homes that their grandparents and great-grandparents off er Akbal congratulations on a well-deserved honour. built, and they have a strong sense of family pride that dates back hundreds of years. SPORT FISHING The character and warmth of historic homes and neighbourhoods enhance a community's attractiveness R. Fleming: As we head into May, all of us here are and livability with their vintage styles and wonderful getting excited about the critical choice facing British landscapes. Th ey create a positive sense of well-being Columbians. Will I be going saltwater fi shing or fresh- and enjoyment in communities throughout the province. water fi shing? Fishing season is just around the corner, B.C.'s historic places help residents and visitors appre- and hundreds of thousands of anglers from across British ciate and understand the province's heritage. Th ey pro- Columbia will soon be heading out to their favourite vide a physical connection to our past that current and lakes, rivers and coastal fi shing spots in their quest to future generations can enjoy. land a big fi sh. B.C.'s register of historic places has over 3,500 listings, We oft en forget about the impact sport fi shing has on and there are thousands more yet to be registered. Th ese our economy. According to a recent report by B.C. Stats, places have been identifi ed as important contributors to the economic contribution of sport fi shing in B.C. is val- their communities, giving residents a sense of pride and ued at $326 million, or half of the GDP produced by all connection to their local heritage. B.C. commercial fi sheries, fi sh processing and aquacul- Recently, to further ensure that our historic places re- ture. Sport fi shing sustains 8,400 jobs, or 60 percent of the main dynamic parts of our communities, government fi shing employment in the province, and $936 million in announced the release of Heritage Strategy for B.C., a annual revenues. It does all this while taking a tiny por- plan that outlines the province's future goals for heritage tion of the annual catch — which measures the saying, as conservation — funding to Heritage B.C. to transform its it goes, that that's why they call it fi shing and not catching. business model to strengthen the organization's ability to It must also be recognized that the small businesses deliver heritage planning and training services to local that support and supply anglers are fi nding new ways communities, and the appointment of Heritage B.C. as to be sustainable and to increase employment in our the fund adviser to the heritage legacy fund. coastal communities. I want to mention a few examples [1345] here today. Th ese initiatives go a long way to maintain the pres- Good Hope Cannery and Duncanby Lodge in Rivers ence of heritage buildings and historic sites in our local Inlet. Th e operators there are actively encouraging an- communities. Heritage Week is about keeping our his- glers to catch and release trophy-sized Wannock River toric values alive and vibrant in our communities. salmon in an eff ort to steward this genetically unique salmon run for future generations. YOUTH SKILLS TRAINING INITIATIVE West Coast Resorts fishing lodge, which was pur- IN PRINCE RUPERT chased last year by the Haida people so that they could increase the Haida's involvement in sport fi shing and of- G. Coons: Today in northern B.C. too many of our fer new cultural experiences to anglers. youth must move away from their families and commun- Langara Fishing Adventures and the West Coast ities to pursue skills training and upgrading. With the Fishing Club. Over the past 15 years these businesses many new projects that are proposed in the North Coast have collected $1.3 million for local salmon habitat res- constituency and beyond, we must ensure that our youth toration from donations from anglers. can take advantage of these opportunities. Th anks to the Th ere are many more inspiring examples of business- hard work of many community partners, more youth are es and anglers showing leadership in this sector. As we now able to do just that. head into the spring, I know all members of this House In Prince Rupert a unique partnership has developed will want to wish B.C. anglers good luck and tight lines between school district 52, Northwest Community and appreciate that they continue to make B.C. one of the College and Ridley Terminals to off er two new training world's premiere sport fi shing locations. programs. A millwright foundations program and an industrial electrical foundations program will now be HERITAGE CONSERVATION available to senior high school students in the upcom- ing school year. M. McNeil: Th is week is Heritage Week, with a theme Th e local Northwest Community College will provide of "Good Neighbours: Heritage Homes and Neighbour- instructors, while the school district will contribute class- hoods." Th e importance of historic homes and estab- room space and workshops. Th e fi ve-year coastal path- lished neighbourhoods to our communities is a theme ways partnership will provide an investment of $350,000 many people can relate to. toward delivering skills training specifi cally targeting the Tuesday, February 19, 2013 British Columbia Debates 12907

needs of the region, with $150,000 being committed by Oral Questions Ridley Terminals. High school students will receive early exposure to ELECTRICITY RATES AND training and employment opportunities with local indus- B.C. HYDRO MANAGEMENT tries. Ridley Terminals, through corporate aff airs man- ager Michelle Bryant, will help fund new equipment for J. Horgan: So $59 billion in contractual obligations these programs and solicit other industry partners for to independent power producers, $14 billion in debt, $4 further funding. billion in deferral accounts and 5,200 gigawatt hours of Th is partnership perfectly brings together our two energy we don't need in the coming fi scal year. Yesterday educational institutions with a major industry, allowing the Energy Minister thought that this was all a waste of our youth the opportunity to develop their skills right at time and felt that we should go back to the 1960s. He went right by the 1990s. I'm sure that shocked the day- home, alleviating the fallacy for temporary foreign work- lights out of the Jobs Minister. He went straight back fi ve ers. Th is is where their talents and passion are required. decades. Our youth are needed to build the region, to support the [1350] current economic growth and contribute to their com- In light of the people that have assembled with us to- munity well-being. Th is is a great example of what we can day — the business community and others from around do when we build local partnerships that create pathways British Columbia — perhaps the minister will stand up to success for youth in our communities. and focus on 2013. He'll focus on today and give the op- position and the people of B.C. an answer to how you WILLIAMS LAKE FUNDRAISING RUN FOR propose to deal with the absolute disaster that is B.C. B.C. CHILDREN'S HOSPITAL Hydro on the Liberal watch.

D. Barnett: On June 30, 2012, I met the most amaz- Hon. R. Coleman: All I did yesterday was remind the ing and inspiring group of young people and their par- member that the NDP in 1962 actually believed the two- ents, Kids Running for Kids, a group of 70 Williams Lake river policy was a political hoax because we'd never need kids running to raise money from Williams Lake to B.C. electricity in B.C. to ever use the power from the dams. Children's Hospital. Some of the kids' families have used It's an inconvenient fact for the member opposite. the B.C. Children's Hospital. It's also an inconvenient fact for the member oppos- Isabelle was born 14 weeks premature. Logan was born ite that he doesn't want to actually recognize that power with a cleft palate and a foot deformity. Marcus required prices can move up and down depending on activity in tubes to improve his hearing. Some of these marvellous the marketplace and also relative to where the U.S. econ- kids live with chronic conditions or are aware of others omy will be in a year from now, two years from now, fi ve who require regular visits to B.C. Children's Hospital. years from now. Th ey are grateful for this great facility and decided they It's also an inconvenient fact that he evidently doesn't wanted to help other kids. like wind power, doesn't like bioenergy — which could With the help and guidance of their families and the actually off set diesel in small communities, where they're organizational skills of Rya Enns, this group raised ap- paying way more for diesel power, and actually clean up proximately $100,000 through raffl es, dinners, dances, the environment. Actually, back in the 1960s — the reason I said it for the garage sales, donations from friends and community, and member opposite yesterday was…. In actual fact, if you other fundraising activities. look over the long period of time of power, I believe, at Kids Running for Kids travelled from Williams Lake the end of the day, that the IPP power contracts we have to B.C. Children's Hospital, leaving June 30 and arriv- in place will pay for themselves. ing July 7 at the B.C. Children's Hospital. Th ey travelled through communities in British Columbia who wel- Mr. Speaker: Th e member has a supplemental. comed them with barbecues and hospitality. Upon arriv- al July 7 at the B.C. Children's Hospital, this great group J. Horgan: If we could harness the wind that just came was welcomed by the wonderful staff of B.C. Children's out of the minister for a cheap price, we might be a bit Hospital and the Hon. Moira Stilwell. These young further ahead. people have made us in the Cariboo proud. I know, with inspirations like this, the future of our province will be Interjections. in good hands. Mr. Speaker: Members. Mr. Speaker: I'll remind members that you can't use members' names in the House. J. Horgan: For the record, I was three years old in 1962. 12908 British Columbia Debates Tuesday, February 19, 2013

I wasn't concerned about energy policy at that time. I directed — directed — to purchase power at above $125 wish…. Certainly, members on this side of the House a megawatt hour going forward 20, 30, 40 years, and in and British Columbians from every corner of this prov- one instance, a 60-year contract. ince want to know what the minister's going to do to- [1355] day, in 2013. As much as the minister would like to go back to the What are you going to do today, Minister, about 5,200 1960s — a kinder, gentler time for him, perhaps — let's gigawatt hours of power that we paid four times the mar- focus on today. If you generate electricity, you have to ket rate for? What are you going to do about the deferral move it. We have 5,200 gigawatt hours more than we accounts? What are you going to do about the unfunded need, we are trying to sell it into a market that's at about liabilities? 35 bucks, and we paid $125. How does that make sense Yesterday I asked the minister about forecasts, and he to anyone in British Columbia, beyond the Minister of said the following: "First of all, they've got a crystal ball, Energy? and they can predict hydro rates going forward into the future." Hon. R. Coleman: Let's do a little trip down mem- Well, guess who else has a crystal ball. Th e people at ory lane for the behalf of the opposition. First of all, B.C. Hydro. Every year for the past ten years in their ser- you voted against the carbon tax because you don't like vice plan they've been projecting out rate increases that things that are good for the environment. Th en you voted they're going to have to have to meet the obligations that against the cap-and-trade and its enabling legislation. you have put upon them. For example, in last year's ser- Th en you called for a moratorium on clean, independ- vice plan, 17.4 percent rate increases over the next three ent power, which includes wind power, bioenergy power, years. opportunities for First Nations and jobs and investment Is that the minister's solution — putting more on the in their communities. One minute you're for Site C. Th e backs of British Columbians to pay for your folly at B.C. next minute you're jumping off the fence and then back Hydro? to Site C. On top of that, even yesterday aft ernoon the mem- Hon. R. Coleman: When anybody opens a question bers of this House actually stood up and unanimously with an insult, it usually means they don't have a lot to voted for a change in park boundaries. You know why, bring to the debate. Th e fact of the matter is that in 2005- Mr. Speaker? In that park boundary amendment was a 2006 the power prices in North America were spiking off change so that we can actually fi x the John Hart dam in the track. Matter of fact, the spot market went up to as Campbell River, a $1.2 billion investment that should much as $750 a megawatt hour. have been made decades ago. It was never made by the Today the member actually stated…. Well, every com- NDP, and we're making it. ment he ever makes is in and around the issue on what the spot market might be today. But where's the market JUMBO GLACIER RESORT MUNICIPALITY going to be two, three, four or fi ve years from now? We also have the ability to manage power because we M. Mungall: After 20 years of consistent local op- have this great asset — which the NDP opposed in 1962 position to Jumbo Glacier resort, this government has — called the two-river strategy, with the dams, that ac- ignored all democratic principles, created a municipal- tually allows us to trade power and manage it on behalf ity and appointed a mayor and council without a single of British Columbians. At the same time, this year alone resident. Its sole purpose: forcing a mega-resort on the we'll make $200 million with Powerex, trading in power, region. in spite of the fact that we do have some IPP power that Both the UBCM and the Association of Kootenay and today may be a little high for the market but in the future Boundary Local Governments opposed this fantasy town, will be worth the money. and yesterday the West Kootenay EcoSociety fi led a judi- cial review on the constitutionality of this municipality. Mr. Speaker: Th e member has a further supplemental. Th is is now the second judicial review fi led against the Liberal government's underhanded way of forcing this J. Horgan: I'm not sure at what point in the past dec- resort on Kootenay residents. ade energy prices spiked to $700 a megawatt hour. I anx- Will the minister admit that he has utterly failed in iously await the documentation to back up the hyperbole hearing the will of Kootenay residents and ignored from the minister on the other side. democratic principles? What I know is what B.C. Hydro puts in their fore- casts. What I know is what the Minister of Finance puts Hon. B. Bennett: I need to correct the member, with in his material assumptions going forward. At no time all due respect. Th e regional district of East Kootenay — in the past fi ve years has the price of energy gone above that's the local government that is responsible for this $50 a megawatt hour. Despite that, B.C. Hydro has been area — actually passed a resolution asking the province Tuesday, February 19, 2013 British Columbia Debates 12909

to create a mountain resort municipality. Th is project has been in the pipeline for 22 years. It's Creating a municipal structure for a large project like gone through the Social Credit government and been this is not unique in British Columbia. Th ere is a history. encouraged. It's gone through an NDP government and Tumbler Ridge was created that way. Th ere was actually been encouraged by two Premiers, and it's gone through a mayor appointed for Tumbler Ridge long before there 12 years of B.C. Liberal government and fi nally got its were residents there. Th ere are at least a dozen commun- environmental certifi cate, got its master development ities in our history that have been created around either agreement and got fi nal approval. mines or hydroelectric developments, all for the same This is going to mean hundreds of jobs for the reason: to create jobs, to add to the province's economic Columbia Valley and $450 million in development. viability and to help the regions in which these projects take place. N. Macdonald: Th e fi rst meeting of the appointed I think it's interesting, hon. Speaker. Th is is a perfect council of the Jumbo municipality was greeted with a way to characterize the opposition compared to this side demonstration against a land giveaway that has absolute- of the House. We actually believe in socially responsible, ly no evidence of local support and no democratic basis. environmentally responsible economic development, Th e minister talks about a massive investment but neg- and they don't. lects to mention that there is actually no investor. Th ere is no investor. Th e money the minister is spending is Interjections. public money. Th e land that is being given away is pub- lic land, and the benefi ts are entirely to be enjoyed by a Mr. Speaker: Members. Members. small group of B.C. Liberal insiders and donors. Th e member has a supplemental. [1400] Interjections. M. Mungall: Jumbo's unelected council is not having N. Macdonald: Th at's the truth. its meeting in Jumbo today. You can't blame the roads How can the minister possibly justify this waste of tax- not being plowed, because there are no roads. Th ere is no payer dollars and this giveaway to B.C. Liberal insiders? electricity, no buildings, no garbage pickup, no phones, no chairs. There is no "there" there. There are more Hon. B. Bennett: I've been waiting for a long time people living on Gilligan's Island than there are in Jumbo. to ask the member: what does he have against jobs for his constituents? I don't get it. Th e Columbia Valley has Interjections. struggled for the last number of years, and this is an op- M. Mungall: It looks like they want to go for a three- portunity to develop an iconic all-season resort. Th ere hour tour. will be nothing like this in North America. Th ere is noth- ing like this in North America. Interjections. Five glaciers. When you go up the gondola to the top of Jumbo Mountain and look down into Lake of the Mr. Speaker: Members. Hanging Glacier…. I guarantee you, hon. Speaker, that Continue, Member. people are going to come from around the world. Th is is going to help lay a foundation for the growth of our tour- M. Mungall: Not only are they not meeting in Jumbo, ism industry here in British Columbia. It's going to create but they're not meeting in Invermere, the closest com- jobs in that member's riding, and he opposes it. munity to this imaginary town, because that community is adamantly opposed to this mega-resort. Will the min- Mr. Speaker: Th e member has a supplemental. ister just admit that his peculiar obsession with Jumbo Glacier resort fl ies in the face of democracy? N. Macdonald: Th ere is not one building in that mu- nicipality. Th ere is not one paved road. Th ere is not…. Hon. B. Bennett: Hon. Speaker, it's true. I do have an obsession. My obsession for the last 12 years has been to Interjections. work my tail off to make sure that the people in my re- gion of East Kootenay have a better life, that they have Mr. Speaker: Members. more opportunities. Th at's my obsession, and I'm not [1405] going to apologize for it. I'm really curious now to know what the Gilligan's Island mode of economic develop- N. Macdonald: Th ere is not one human resident. ment is all about, so maybe the member will be able to explain that later. Interjections. 12910 British Columbia Debates Tuesday, February 19, 2013

Mr. Speaker: Member, take your seat for a second, PavCo. But the members opposite and the members of please. this House should know that he has 89 percent of all the Continue, Member. requests of information and privacy at PavCo. It's a large volume of work, so they were fi nally to the point where N. Macdonald: Th ere is not one building in that mu- some of it became ridiculously frivolous in their minds. nicipality. Th ere is not one paved road. Th ere is not one Th ey asked and they have gone forward to ask the com- human resident, and that is not likely to change at any missioner for an opinion. time because there is no investor. What we see is that the B.C. Liberals have handed over Mr. Speaker: Th e member has a supplemental. control of 6,000 hectares of public land to a small group of B.C. Liberals and insiders. Th ey are the only ones that D. Routley: It's about the public interest, an uncom- will possibly benefi t from this. Local residents in the fortable fact for the government. It was through these Ktunaxa are absolutely clear that they are opposed to this claims to freedom of information that the public found land giveaway. With no investors other than the taxpay- out about PavCo's hundreds of millions of dollars of ers of B.C., what is the government doing proceeding overspending. It was only through these requests that with this waste of taxpayers' money? the public knew this. Does the minister responsible for PavCo stand by the Hon. B. Bennett: Well, two things. First of all, there position that asking about massive cost overruns is frivo- are two First Nations in the area. One is opposed, and I've lous or vexatious? always been very respectful of that fact and continue to [1410] have a very positive relationship with the Ktunaxa. Th e other First Nation is the Shuswap band, and they are vo- Hon. R. Coleman: Mr. Speaker, through to the mem- ciferously in favour of this project. In fact, I've already ber opposite: fi rst of all, Member, the fi rst thing you'd signed an economic benefi ts agreement with the propon- like to do yourselves is try and get your numbers straight ent, and they want to get on with it. when you're actually making public comments. I've heard What really is troubling is that the project has actually your members talk about the $100 million fi gure quoted gone through every single stage that any project in the for the roof for B.C. Place under PavCo's chair back in province can possibly go through. It went through those 2008. Th e member doesn't actually want to tell the rest stages through three diff erent government administra- of the story, which was about a pillow roof to replace tions — the Social Credit, the NDP and the B.C. Liberals. exactly the same roof as was there before — not a sig- Th ey earned an environmental certifi cate, which has 200 nifi cant investment to actually redo the entire stadium, conditions on it. Th at's how tough it was for them to earn which this was. an environmental certifi cate — 200 conditions that the PavCo announced the fi nal approved budget of $563 proponent will have to meet in building this resort. million for B.C. Place revitalization in October 2009. Aft er 22 years of this process this member wants gov- Th ey did it for $514 million, well under budget, hon. ernment to just say: "Oh jeez, sorry. We changed our Member. On top of that…. mind." No, aft er 22 years. If they're elected, that's what they'd do. Th at's what they did in the 1990s, and that's Interjections. what they will do again. Hon. R. Coleman: I know you don't like these conven- PAVCO RESPONSE TO ient facts. Your way of going about this, hon. Members is INFORMATION REQUESTS FROM MEDIA you would have torn it down. You would have spent over $1 billion to build a new stadium rather than spending D. Routley: Th e Premier has made claims to open $514 million for the jobs, opportunities and economic government being one of her top three priorities, even growth that it brings with a world-class stadium. It is now telling the media that information belongs to the pub- one of the top three stadiums in all of North America for lic. Yet on Friday we learned that investigative journalist about a third of the cost. Bob Mackin received a letter from PavCo telling him they have applied under the Freedom of Information Act to S. Chandra Herbert: Th is is about freedom of infor- bar him from "frivolous and vexatious" claims to infor- mation. Th is is about giving journalists access to infor- mation. Does the Premier agree with this outrageous act mation they need to do their jobs. I know the minister by PavCo to silence one of its chief critics? wants to focus on sports stadiums, but we're talking about work that the media needs done so that they can support Hon. R. Coleman: Th e individual that the member our democracy. refers to has been making and has received some infor- Under the Liberals, PavCo has had a history of mismanage- mation with regards to information and privacy from ment — fi ve times over budget, the Telus naming debacle, Tuesday, February 19, 2013 British Columbia Debates 12911

PavCo's fl oatplane fi asco, PavCo's botched casino deal, the Hon. R. Coleman: In section 43 of the act the in- convention centre going massively over budget. Th e list goes dependent offi cer of the Legislature can be asked to give on and on. an opinion with regard to FOI requests in consideration Th e Premier claimed that open government was one of of the limitation of volume and what is being asked for. her top priorities. Will she stand today and demonstrate Eighty-nine percent of all the requests at PavCo coming that she actually puts action behind her words and tell from one source? PavCo to stop trying to ban the media from doing their job? Well, let me say this to you, hon. Member. I will not stand in this House and let you impugn the reputation Hon. R. Coleman: No sooner do I draw the parallel of a friend of mine who I think has given a ton to pub- that members opposite, not having the facts and putting lic life in this province and who is a great chair of PavCo. them out there…. Th e member opposite gets up and says the wrong fact. He says it's fi ve times over budget. It's Interjections. not. Th at was about a diff erent roof and a diff erent time. Frankly, if you asked anybody about what you should do Mr. Speaker: Members. with B.C. Place, including your constituents, they would tell you that you should modernize it, that you should do ENVIRONMENTAL REVIEW OF something about it, and please don't put the same kind of ENBRIDGE OIL PIPELINE PROPOSAL roof on it because it's too tough to get displays in and out. It actually loses days of rent because of the fact you can't R. Fleming: Th ree years ago this government signed move things in and out, the way it was before. You wouldn't a deal that outsourced final decision-making power have had the Whitecaps, hon. Member, in that stadium at to Ottawa over the Enbridge northern gateway. With all if you hadn't done what you did to the roof. fi rm public opposition and a looming election, the B.C. What we did is actually looked at a stadium and said Liberals are suddenly aware of the gaping holes in our that here are the options. One, we just put a roof on it coastal oil spill regime and are trying to get out in front — spend $100 million and still have the unperforming of something that they're well behind. Th e stakes are in- building we had in the past. Two, we could tear it down, credibly high for British Columbia, but this government remediate the soil underneath it, spend a few hundred has made our province a bystander in all of this. million dollars on that and probably spend a billion- My question is to the Minister of Environment. Will he something to build a new building. serve notice, and will he opt out of the equivalency agree- Or you could modernize the building, invest the ment and commit to having a made-in-British-Columbia money for $514 million, well under the budget for the environmental review so that our province can fi nally building, and come out with a world-class stadium that make its own determination on whether the Enbridge ranks up in the top two in North America — one of them northern gateway is good for the province or bad for the being Dallas Stadium, which is worth somewhere around province and unacceptable? $1.5 billion — and get it for $514 million. Hon. T. Lake: While I was in Prince Rupert for a day Mr. Speaker: Th e member has a supplemental. and a half at the northern gateway hearings, representing and meeting with our team that was representing the S. Chandra Herbert: Once again the minister dodges people of British Columbia so well at those hearings, the the question. Once again the Premier declines to stand member opposite was there for about one hour — an hour. up for open government. Last November the Premier ap- It's interesting that the NDP's position on northern pointed chair of PavCo. Recently she gateway is no, without any process whatsoever. But in- appointed Peter Fassbender candidate for the Liberal terestingly enough, a very similar proposal from Kinder Party. Now PavCo…. [Applause.] Morgan…. Well, they're not quite sure about that. Th ey're not quite sure. Th e position of the NDP is absolutely in- Interjections. consistent, although what we have heard so far is that they will decide before any process what's in and what's S. Chandra Herbert: Oh yes, that's right. Bring it on. out in the province of British Columbia. Th at is going to And now, hon. Speaker, the entire Liberal caucus ap- chase investors to anywhere else but this province if that plauds for a man who chairs an organization that's trying NDP party were to be in government in the province. to ban the media from doing their job. Will the Premier stand in this House and tell her FLOOD PROTECTION IN PavCo chair, tell her recently appointed candidate to stop SWANSEA POINT AREA trying to ban investigative journalists from doing their job? Will she stand? K. Corrigan: Last year the community of Swansea [1415] Point near Sicamous was devastated by a water-and- 12912 British Columbia Debates Tuesday, February 19, 2013

debris fl ow in Hummingbird Creek. Th ere was millions Mr. Speaker: Th e member reserves his right. of dollars of damage, and the creek is now full of debris. Th e residents have pleaded over and over again with the Orders of the Day government for help, but it has failed to take meaning- ful action. Hon. M. de Jong: Mr. Speaker, I move that this House I visited Swansea Point this month and saw the exten- at its next sitting resolve itself for this session into a sive damage and met with people who are literally afraid committee to consider the supply to be granted to Her for their lives. I know the minister is going to stand up Majesty. and talk about a very recent change of heart that seems to coincide with media scrutiny and community anger Motion approved. about this. Th ey're going to send in a digger. The government's own briefing notes indicate that Presentation of Estimates band-aid remedial work is completely inadequate. It reads that "this work is modest in scope compared to the ESTIMATES OF SUMS REQUIRED more extensive work that previous studies have prescribed FOR THE SERVICE OF THE PROVINCE in order to minimize the fl ood risk on Hummingbird Creek," reports that recommend measures like replacing Hon. M. de Jong presented a message from Her the culvert or building a bridge. Th e province has done Honour the Lieutenant-Governor: Estimates of Sums nothing substantive, and the people are afraid that the Required for the Service of the Province for the fi scal coming thaw is going to again result in devastation to year ending March 31, 2014, and a supplement to the es- timates for the fi scal year ending March 31, 2014, recom- their community. mending the same to the Legislative Assembly. Th is is a case of way too little, way too late. To the min- ister: why has the government refused to do the work that Hon. M. de Jong moved that the said message and needs to be done in order to protect the property and en- the estimates accompanying the same be referred to the sure the safety of the people of Swansea Point? Committee of Supply. Hon. M. Polak: I myself have also visited the area only Motion approved. recently, just a couple of weeks ago. No question that there was tremendous devastation for that community Hon. M. de Jong: I move, seconded by the hon. and for the homeowners and business owners in the area. Premier of British Columbia, that the Speaker do now But the member, quite frankly, is wrong. leave the chair for the House to go into Committee of [1420] Supply. Right now we are underway with a project that will be completed before the spring freshet. In fact, we're al- Budget Debate ways willing to work with communities to see if there is more we can do. Hon. M. de Jong: For almost a century and a half this In 2004, recognizing that there was potential for deb- Legislative Assembly has served British Columbians by ris collection, we off ered $4 million to build a bridge, a performing two functions fundamental to our parlia- debris trap — all the types of things that the member is mentary democracy. First is the passage of laws by which pointing out with respect to the studies. But as a result we seek to establish a civil society based upon the rule of of a referendum in the community, the levy was not ap- law, where all citizens may expect to be treated equitably proved. We are still working with the community, and we and justly no matter who they are. Secondly, Members will do whatever we can to ensure that that community of this Legislative Assembly, through debate and discus- is safe from further debris collection and the kind of ca- sion, authorize the executive branch, on behalf of the lamity that resulted. Crown, to collect and spend the public's money. We call it the budget. [End of question period.] Today begins the budget or, as we now refer to it, a three-year fi scal planning process made more interest- Point of Privilege ing, admittedly, by virtue of the fact that before the full (Reservation of Right) budget process is complete, British Columbians will have a direct opportunity to express their views in that great Hon. T. Lake: Mr. Speaker, I'd like to reserve my right democratic shareholders meeting scheduled for May. to raise a point of privilege over comments made yester- Building the plan hasn't been easy. We have worked day by the member for Surrey-Whalley during my re- for many months to fi nd the right balance of measures to marks on Bill 5. support our economic recovery, to maintain support for Tuesday, February 19, 2013 British Columbia Debates 12913

the services people rely on every day, to respect the basic in what is to follow is going to be disappointed. principle that government should not spend more of the Starting today, British Columbians will once again taxpayers' money than it receives from the taxpayers. be able to look at their children and grandchildren and Getting things right has meant a lot of tough decisions, know that the services we rely upon today are being paid but this is not the time to turn our backs on the disci- for us today. Today I am presenting what we promised pline that has helped us through the worst of the eco- to the people of British Columbia and what they have nomic downturn. Let's not forget the global recession worked hard to achieve, a balanced budget. In fact, we'll that began in '08-09 with probably the biggest economic have a modest surplus. and fi nancial shock — I hope the biggest fi nancial shock Th at doesn't mean, though, that everything from here — we'll see in our lifetimes, and jurisdictions everywhere on out is going to be easy, but it does provide the fi rm are struggling to recover. footing and the opportunity that we need to continue in- The U.S. peers nervously across the chasm of a fis- vesting in core programs and services. With this budget cal cliff . Much of Europe languishes in recession. Even we are moving forward to increase revenues by growing China, with its fast-growing middle class, saw its eco- our economy and creating jobs, to keep spending aff ord- nomic growth in 2012 decline to its lowest level since able and to work in partnership with families for the most the turn of the millennium. Economists use words like important investment of all — investing in the future of "weak," "muddled" and "anemic" to describe the inter- our children. national recovery. I say plainly that I recognize that given the timing of [1425] this particular budget, there will be some skepticism We're not immune in B.C. We sell our goods on the — certainly amongst members opposite and perhaps global market. We can't control international prices. Th at members of the public — about whether this is in fact a leaves us vulnerable on the revenue side of the ledger and balanced budget. So let's confront that question head-on. demands extreme caution as we plan our budgets for the Is the budget really balanced? year ahead. The answer lies in the analysis of two parts of the When prices for resources such as coal and natural budget — the revenue side and the expenditure side. gas are down, as they are at the moment, our provin- Both must be credible; both must withstand scrutiny. I cial treasury takes a hit. But that doesn't mean that we believe they are, and I believe they will. as a government are going to renege on our longstand- Over the term of our three-year fiscal plan, rev- ing commitment to sound fi scal management. On the enues are projected to grow by an average of 3 percent. contrary, in an environment of ongoing global volatility, Spending is projected to grow at roughly half that rate an environment of continuing uncertainty, we are more by an average of 1.5 percent per year. As diffi cult as it is determined than ever to hold the line on government not to spend all of the modest additional revenues we spending and to honour our commitment to the people anticipate receiving, that is the only formula, the only of British Columbia that we will not spend more of their approach, by which a defi cit can be eliminated on a sus- money than government receives. tainable basis. To be sure, we could take a diff erent approach. We do [1430] actually have the option of continuing to operate in a Th e end result, factoring in all of the other pieces of defi cit position for years to come, which is precisely what the budget, will be surpluses of $197 million in '13-14, a lot of other governments are doing. If we chose to, we $211 million the following year and $460 million in the could even roll out big new spending programs. Th at's third year. Th at is the bottom line, our fi scal plan at its not uncommon in election years. And there's always highest level. pressure on government from many fronts to increase Now I'll turn to how we'd like to achieve it, starting spending in a long list of areas, to try and please as many with our work on the revenue side. At this time last year of the voters as possible. the government had forecast a defi cit of just under $1 bil- I'll tell you right now that we're not going to do that. lion for 2012-13. Th e fact is, as members know, that with Why? Well, I guess, lots of reasons why. But as my par- declining revenues, the forecast for the defi cit went up at ents used to tell me with that measure of common sense one point as high as $1.5 billion. Today, in the third quar- derived from their agrarian roots: "Because, Son, we can't ter report, the defi cit for '12-13 is estimated to be $1.2 aff ord it right now." billion. Th at's a big gap to fi ll, and as I've said, it won't be Increasing spending across the board in excess of the easy. But with the plan I'm presenting today, taking the money taxpayers can send to government today is plainly fi nal step towards eliminating the defi cit is achievable. and simply the wrong choice not just today but for the We expect gradual improvements in commodity prices future of our province and for those generations yet to and markets for some of our key exports over the next come. We will not spend money that we don't have. We few years, including lumber and electricity. Th at will will not leave a legacy of needless debt. To do so would be, contribute to modest economic growth of 1.6 percent frankly, irresponsible. Anyone looking for that approach in 2013, 2.2 percent the following year and projected 2.5 12914 British Columbia Debates Tuesday, February 19, 2013

percent in 2015. Th ese numbers are lower than the out- so long to keep taxes low, B.C. is still very competitive. look provided by the B.C. Economic Forecast Council. Its Even with the change taking place in April, the general 14 members, including some of the most respected in- corporate income tax rate will still be 33 percent lower dependent economists in Canada, meet with government than it was in 2001. It will also remain amongst the low- every year before the budget to give us their best advice. est in the country. Th is year, for the fi rst time, the council meeting was We'll also see a revenue improvement from adjust- open to the media. Th ey shared their advice and analysis ments to the industrial property school-tax credit, which essentially in public, ensuring transparency in that part was introduced in response to the recession to help em- of the process. Happily, even some members of the op- ployers sustain their operations. position were present. For major industries, including sawmills, pulp mills Along with a more conservative forecast for economic and mines, the credit will remain unchanged, but we are growth, we have built two additional layers of prudence beginning to scale it back for the light industry class. Th e into the budget. First, we've included a forecast allow- value of the credit for those properties will decline from ance of $200 million in '13-14, $225 million in the fol- 60 percent to 30 percent in 2013 and fall to zero in 2014. lowing year and $325 million in the third year to guard Th e fi nal change on the business side involves natur- against revenue volatility. Secondly, the fi scal plan in- al gas wells that qualify for the deep-well royalty credit cludes contingencies of $225 million each year to help program. We're adjusting the royalty structure and intro- manage unexpected pressures and fund priority initia- ducing a minimum amount so that revenues fl ow into tives that may arise. provincial coff ers sooner. Total revenues expected from To further underscore our commitment to transpar- these measures over the three-year life of the fi scal plan ency, we engaged Dr. Tim O'Neill, a respected independ- equal about $900 million. ent economist, to review, evaluate and report on all of the Th ose extra dollars from business and industry will Ministry of Finance's economic and revenue projections. go a long way towards meeting our targets, but with this He's now completed his work. As members know, he re- budget we are also asking those individuals who have a leased a report to the public yesterday. In that report he little more to contribute a little more. Starting in January confi rmed that our processes, methodologies, assump- 2013 we will enact a temporary two-year increase in the tions and forecasts are legitimate to the extent that pro- personal income tax rate on income above $150,000 a jections about the future can be legitimate. year. Th e rate will increase by 2.1 percent to 16.8 per- Here's what he said: "Th e general observation to be cent, from 14.7 percent, for 2014 and 2015 only. Even made about the assumptions that underpin the revenue with this increase, B.C.'s top marginal tax rate will still forecasts is that they incorporate, for the most part, a rea- be very competitive. sonable amount of prudence, especially given the degree Secondly, to help sustain our health care system, MSP of uncertainty that still surrounds the economic outlook premiums will increase by about 4 percent effective not only for B.C. but for North America and Europe and January 1, 2014, and we are increasing taxes on tobacco indeed the global economy." by $2 a carton eff ective October 1. But here's the off er. Dr. O'Neill had a concern. Given the volatility around Smokers who object to paying more have time to quit, natural gas pricing, he has suggested that instead of ac- and according to the surveys, seven out of ten smokers cepting the average of 24 private sector forecasts, he's want to quit. recommended that we plan on the basis of the lower-end We've already got the lowest smoking rates in Canada forecasts and assume prices for natural gas in the $1.80- — below 15 percent. But smokers, if they choose, can join to-$1.90 range. Th at's what we've done. over 100,000 people and sign up for B.C.'s smoking ces- So we're confi dent that revenues will grow modestly. sation program, which is designed to help people achieve We're projecting growth of 4.6 percent in '13-14, 1.3 per- their objective of quitting. If only half those people man- cent the following year and 3.1 percent in '15-16. But that age to stay tobacco-free, the payoff for their health, the alone is not and will not be enough to meet our balanced- health of their families and the health care system itself budget targets. Th erefore, we're asking business to help, is well worth the investment. consistent with a plan we put forward a year ago. With these tax changes, B.C. will be another step closer In Budget 2012 the government signalled that one to balancing the budget. We will close the rest of the gap of the options being considered to achieve a balanced with proceeds from the sale of surplus assets, consistent budget was to increase the general corporation income with the plan we announced in Budget 2012. tax rate by 1 percentage point. Today I can confi rm that Th ere are about 100 surplus properties and assets, and will happen. In fact, it will happen earlier than planned. we're continuing a process to turn them into economic Th e rate will rise to 11 percent eff ective April 1, 2013. generators, providing amenities such as housing, health [1435] care and long-term residential care on what are now, for Th e small business corporate income tax rate will re- the most part, vacant or underutilized lands. main unchanged, and because we've worked so hard for We have sales agreements in process or negotiation Tuesday, February 19, 2013 British Columbia Debates 12915

underway on 16 properties, including a vacant lot near of $20 million from ministries. From 2013 onward we the Victoria General Hospital, a large surplus parcel on expect ministry savings of $15 million and a further $20 Tranquille Road in Kamloops, a former school board of- million in savings from Crown corporations. fi ce in Surrey, a surplus parcel near the Mission Memorial With those effi ciencies and by banking that money, we Hospital, a former health care facility in Vancouver's can aff ord to maintain core services. We will continue to Grandview-Woodlands neighbourhood and a vacant see modest increases in a few important areas, including property in Surrey originally purchased for a hospital health care and education, the two most important public expansion that has now taken place at Surrey Memorial. services British Columbians rely upon. Health care has Based on 2013 assessments and market appraisals, historically accounted for the largest share of the budget, those 16 properties will provide an estimated return of and I don't think that's likely to change anytime soon. $260 million. A further 65 properties are being prepared I'd like to take a moment and look at where we are and for market. In total, we expect the sale of surplus assets how we're doing as a province in the measures that matter will deliver a net gain over the fi rst two years of the fi scal most. We have the longest life expectancy in Canada. If we plan of approximately $625 million. were a country, we'd be second only to Japan in terms of With tax changes, economic growth and surplus asset life expectancy. We have the best survival rate for heart dis- sales, annual revenues will grow to $46.4 billion by the ease in Canada, the lowest incidence of cancer and, among fi nal year of the fi scal plan. Th at is the story on the rev- those who do get cancer, the very best survival rates. enue side. We have amongst the healthiest people and the best Now let's turn to the other side of the equation, the health care anywhere in the world, but it comes at a cost, spending side. Th e watchword here is discipline as we and that cost is increasing. It has not recently in B.C., and pursue the appropriate balance between providing public it will not rise at the rate we are seeing in other jurisdic- services and keeping those services aff ordable. tions, but we will be spending more. [1440] Over the three-year term of the fi scal plan the Ministry Between 2005 and 2008, when the global and prov- of Health will receive a total of $2.4 billion in additional incial economies were strong, government spending spending. Th at's a lot of money. But to put it in perspec- was growing by approximately 6 percent year. Aft er the tive, the average annual increase in health spending is worldwide recession hit, we had to scale that back be- projected to be 2.6 percent, signifi cantly lower than the cause we all know what happens when you spend more 6 to 8 percent growth we saw before the recession. money than you make. Th at's why we've worked so hard, We're slowing the rate of spending growth by continu- especially since the recession, to keep provincial spend- ing to drive improvements and seek out effi ciencies in ing in check. health care delivery. For example, in the past year alone Public sector unions have played a role, and I want to we've introduced a new screening program for colorectal take the opportunity to publicly acknowledge the hard cancer that people can complete at home without costly work, good faith and creativity of all the parties involved hospital visits or equipment. We've given nurse practi- in public sector bargaining. Th e vast majority of unions tioners a wider scope of practice so that hospital patients in the 2010 round of contract talks accepted two-year can be admitted and discharged a lot more effi ciently. agreements with net zero wage increases. We've announced a new regulation to reduce the price of Now, had we ignored the economic reality and agreed generic drugs, saving families and the government sig- to modest annual raises of even 2 percent under the 2010 nifi cant amounts of money. net zero mandate without off setting wages, we could be Th ese are just a few examples of how we're trying to facing more than $4.3 billion in additional debt by 2016. make dollars go further. Admittedly, this is in stark con- In the coming year alone we would have needed to fi nd trast to those who simply advocate elevating British another $790 million more to support those wage in- Columbia to the highest per-capita health spending in creases. Quite frankly, I don't see how there would have the country. Today, despite resisting the call from some been any way that we'd be talking about a balanced quarters to be the biggest spenders in the country, and budget today. thanks to innovation and hard work from dedicated pro- Under the current 2012 cooperative gains mandate, we fessionals, our key health outcomes — the most import- have reached agreements with about two-thirds of the ant measures — rank amongst the highest in the world. public sector workers. Many are receiving modest wage [1445] hikes, but these are funded entirely by savings from effi - British Columbians also enjoy one of the world's best ciencies, with no new taxpayer dollars. public education systems. Th rough our new education Along with continuing discipline on wages, we've fro- plan, we're working to ensure that students are prepared zen salaries for all senior managers. We're aggressively to achieve and succeed in our rapidly changing world. To auditing commercial Crowns, and we continue to cut support that continuing transformation, we're investing discretionary spending in areas such as travel and ad- $210 million over three years to support the learning ministration. In 2012 those measures resulted in savings improvement fund. 12916 British Columbia Debates Tuesday, February 19, 2013

Since its inception one year ago the fund has provid- U.S. We were vulnerable. Any suggestion that we could ed extra support to virtually every public school in the reduce our trade dependency on the U.S. was met with province, with approximately 500 more teachers hired great skepticism, but we've done it. Trade to the U.S. now at a cost of $37 million; $17.3 million devoted to special accounts for 45 percent of our exports — important, to education, increasing hours of work for more than 7,400 be sure — but Asia now purchases 41 percent of our ex- existing assistants and placing more than 400 new teacher ported goods. Exports to China were up nearly 20 per- assistants in schools; and $1.8 million devoted to profes- cent in 2012, and while the share of B.C. exports going sional development. We'll contribute $60 million to the to India is small today, it has increased by nearly 60 per- fund in the coming year, increasing to $75 million in each cent last year alone. of the two following years. We look forward to seeing We are succeeding in diversifying our markets. We're those dollars translate into better outcomes for students. accomplishing this by working in partnership with We are also investing $1 million to help ensure that business and strategically investing some public dollars. students have access to the healthy foods they need for Whether it's Dream Home Canada in Shanghai or a stra- optimal growth and development. We have supported tegic marketing initiative with Th e Times of India Group, the school fruit and vegetable nutrition program since its we are carving out a presence and gaining new footholds inception as a pilot project in 2005. It now provides fresh in new markets for British Columbia. produce to hundreds of thousands of students in 1,400 [1450] schools, helping students get a taste for healthy eating We're opening up new opportunities for forest prod- while connecting them to the B.C. farms that put food ucts, agrifoods, metals and minerals and, in the near fu- on our tables. Now, with additional funding, we're ex- ture, natural gas. Right now we can only sell natural gas panding the program through a new partnership with the to the U.S., but with the demand and growth across the B.C. Dairy Association, providing local milk to schools Pacifi c Rim, that's a huge incentive for us to move for- around the province. ward aggressively to develop liquefi ed natural gas, using Along with higher funding for health and education, our twin advantages of a plentiful natural resource and we're providing over the next three years $60 million to strategic location as Canada's Pacifi c province, making continue the 2010 sports and arts legacy program, which it possible to ship our product to those more lucrative provides more opportunities for youth participation; $52 overseas markets. million to maintain front-line RCMP services, includ- Th at won’t happen overnight, but we have made sig- ing offi cers hired to combat organized crime and gang nifi cant progress in the year since our LNG vision was activity; $18 million for the recently announced creative articulated. Industry has responded with approximately futures initiative, to help increase youth participation in $4 billion in natural gas–related commitments in 2012, the arts; $13 million to support the renewal of single- including a plan by Shell to build LNG Canada with joint room-occupancy hotels, providing a better quality of life venture partners, a partnership between Spectra Energy for some of our most disadvantaged citizens; and $5 mil- and the BG Group; a plan by Petronas, an experienced lion to enhance problem gambling treatment, counselling LNG operator, to establish the Pacifi c Northwest LNG and prevention services. facility; and Chevron Canada's purchase of an operating While it's not an exhaustive list, I expect that some interest in the Kitimat LNG plant. In the construction sectors — like the fi lm industry, who were looking for phase alone, these projects represent real jobs for B.C. specifi c initiatives — will feel overlooked. In recogniz- families, real investments in B.C. worth billions of dol- ing the challenges that they and others face, I want to lars and, ultimately, real revenue to government for de- emphasize that our ability to do more in the future is ployment on behalf of British Columbians. enhanced signifi cantly with a robust, growing economy We're also moving forward with our eff ort to provide and a balanced fi scal plan. We look forward to working more effi cient permitting for water, land and mining ex- with them in the future. ploration so that projects can get off the ground faster while In addition, we will continue making targeted invest- protecting the environment and requirements for First ments to support economic growth through a number Nations consultations. Th at work is paying off . For example, of initiatives, including the B.C. jobs plan. As members mineral exploration spending increased nearly 50 percent know, the plan is a long-term initiative to make the most in 2012, and we want to keep the momentum going. of B.C.'s strategic advantages, and one key pillar is to We'll also provide nearly $4 million to the Agricultural open and expand new markets for our products. Some Land Commission to speed up application reviews, sup- people still believe that we can wall ourselves off from port boundary reviews and work with local governments the world, that we can somehow survive in an insulated to encourage farming. B.C.-only scenario. It's just not true. Speaking of farming, agriculture is integral to our Market diversifi cation is absolutely essential to main- quality of life and to the social and economic fabric taining, let alone improving, our standard of living. In of B.C. communities. With that in mind, in last year's 2001, 70 percent of our exports went to one market, the budget, Budget 2012, we announced one-time support Tuesday, February 19, 2013 British Columbia Debates 12917

for the province's greenhouse growers. Th ey face a dis- at colleges and institutes throughout B.C., and we are tinct challenge in relation to the carbon tax — the fact putting $6.3 million towards the new North Kamloops that carbon dioxide is essential for plant growth. To help Secondary trades and technology centre of excellence. them thrive in a highly competitive market, we intro- Along with building our capacity for training, these duced a measure to off set their carbon tax costs for one new capital investments will generate new economic ac- year. Since that time, we have completed a comprehensive tivity in almost every region of the province. review of the tax, and today we are announcing ongoing In total, we will be making $10.4 billion worth of carbon tax relief for B.C.'s commercial greenhouse vege- taxpayer-supported capital investments over the next three table and fl ower growers. years. Th at includes continuing investments in more than A new grant will provide relief for 80 percent of their $3 billion worth of transportation projects with more than carbon tax costs on certain fuels used for their green- $800 million earmarked for public transit, $100 million house operations. We also intend to provide an exemp- for the Cariboo connector, $95 million for the Okanagan tion for farmers on the carbon tax they pay on coloured Valley corridor, $92 million for the roadbuilding portion motor fuel, matching the current motor fuel tax exemp- of the mountain pine beetle strategy, $30 million for the tions, in recognition of the strong importance we all gateway program to keep our trade with Asia fl owing, and attach to maintaining a strong, competitive domestic $9 million for cycling infrastructure. agrifood sector. In the health care sector we're investing $2.3 billion Our review determined that, in general, the carbon tax in capital projects, including the redevelopment of B.C. at current rates does not appear to have a signifi cant im- Children's and Women's Hospital in Vancouver, a new pact on B.C.'s overall economic performance. However, Surrey Memorial Hospital emergency department and specifi c sectors involved in things like refi ning processes critical care tower, a new Interior heart and surgical cen- and cement production continue to have concerns about tre in Kelowna, the replacement and expansion of north their relative competitiveness. We will continue to work Island hospitals, the redevelopment at East Kootenay with them to fi nd balanced, aff ordable solutions to their Hospital in Cranbrook, the replacement of Lakes District challenges while remaining mindful that because it is Hospital in Burns Lake, the replacement of Queen revenue-neutral, the carbon tax helps us to keep other Charlotte–Haida Gwaii Hospital. taxes low. We will invest $1.5 billion in capital projects for the In fact, since its inception in 2008, the carbon tax has education sector, including new or replacement schools raised a total of $3.7 billion, all of which has been re- in Langford, Oliver, Chilliwack, Coquitlam, and a seismic invested into tax reductions for businesses, individuals upgrade at Wellington Secondary in Nanaimo. and families. Importantly, even with these new investments, debt Th is is an exciting time for British Columbia. We're will remain aff ordable. Debt growth will slow as we re- on the brink of a resource development boom, with the turn to a balanced budget, and the ratio of taxpayer- potential to breathe new life into dozens of communities. supported debt to GDP, a key measure of aff ordability, [1455] will peak, as we projected in last year's budget, at 18.3 Right now across B.C. we have approximately $80 billion percent in 2014-2015. Then it will begin to decline. worth of major projects underway. Th ese are happening Because our revenues will outpace spending, we will have across a whole range of economic sectors from shipbuild- an opportunity, once we're into those surplus budgets, to ing to natural gas, mining to manufacturing, transporta- do a little more to keep life aff ordable for B.C. families. tion to commercial and residential development. Let's talk about that for a moment, because that's the Decades ago, in far more troubling times, a great whole reason that we're so intent on balancing the budget statesman said: "Give us the tools, and we shall fi nish the and building the economy. Together they provide the job." Today the tools we require to support this growth strong foundation families and businesses need to pros- are skills and training. per in the years ahead. For example, our prudent fi scal Accordingly, we are adding signifi cantly to our skills- management continues to earn us a rare triple-A credit training infrastructure, helping ensure that British rating, the highest rating available. Columbians can be fi rst in line for the jobs of the fu- Now, I realize most people don't sit around the kitchen ture. For example, we are investing $29 million for two table and worry about the province's credit rating. Th ey new trades-training buildings and facility upgrades at do worry, however, when more and more of their tax dol- Camosun College in Victoria, $28 million to expand and lars are spent on servicing debt. Our hard-earned triple- improve trades-training facilities at Okanagan College A credit rating has saved taxpayers millions of dollars in in Kelowna, $12 million towards a new building for the debt-servicing costs, allowing us to put those dollars into Chip and Shannon Wilson School of Design at Kwantlen vital public services. Polytechnic University in Richmond to introduce new With Budget 2012 we introduced three new measures programming in technical apparel design. Another $17 to help keep life aff ordable for families, the fi rst-time million is targeted to new skills-training equipment new-home buyers bonus, the seniors home-renovation 12918 British Columbia Debates Tuesday, February 19, 2013

tax credit and the children's fi tness and arts tax credits. province. Today for each of those children, that amount [1500] has grown to about $1,200. It's time to unleash the full Since Budget 2012 we have also improved income and force of that savings potential by forging a partnership disability assistance to help vulnerable individuals and with parents and families. families attain better fi nancial outcomes, to help people Eff ective immediately, every family with a child under with disabilities lead more independent lives and to help seven who meets some basic residency rules will qual- people capable of work avoid the cycle of income assist- ify for a one-time B.C. training and education savings ance dependence. grant. Once the child turns six and enters an elementary We're continuing to work on poverty reduction strat- school program, we will transfer $1,200 to the family to egies, beginning with pilots in seven communities help with the costs of studies or skills training aft er high recommended by local leaders. We launched a new em- school. ployment program to help more British Columbians All you'll need to qualify for the $1,200 grant is to have fi nd and keep the jobs they need to support themselves a registered education savings plan in place before your and their families. With today's budget, we are building child's seventh birthday. If you already have one, great. on that with a number of targeted measures to make life If not, the sooner you set one up, the sooner savings can more aff ordable for families. begin to accumulate. Families won't be required to put First, we'll continue to provide tax credits benefi ting in their own contributions to get the B.C. grant, but we seniors and children. We are investing over the next three certainly encourage them to do so, because RESPs har- years approximately $81 million for the seniors home- ness the power of interest over time, allowing your invest- renovation tax credit and $27 million for the children's ments to grow tax-free until your son or daughter starts fi tness and arts tax credits. Th e fi rst-time new-home buy- a post-secondary program. ers bonus, which remains in eff ect until March 31, is on Th e new B.C. training and education savings grant will track to help more than 1,000 individuals and families give your child a boost, and families with a registered aff ord a new home. savings plan can also qualify for signifi cant additional With this budget we're taking further steps to help federal grants. owners when their costs can be highest, by providing the [1505] option of property tax deferral to a wider range of fam- Even with a modest family contribution of $10 a ilies. Seniors in the province have had this option since month, a child who's starting school this September 1974. It lets them defer their property taxes until their could have over $4,000 in their RESP by the time they home is sold so that they can keep a little more of their graduate from high school — enough to get a good start income every year. in any post-secondary program, whether it's vocational In 2010 we expanded this option to include families skills, college or university. At $50 a month, for families supporting children under the age of 18. Today I can that can do that, the equivalent amount would be $12,000. confi rm that we are also including families supporting We have to stop thinking of education as just K to 12. their children attending an educational institution and By 2020 almost 80 percent of new job openings will de- those supporting adult sons and daughters who have mand at least some post-secondary training, and that disabilities. proportion is growing all the time. We need to accept and We're also making a small but signifi cant change to plan for that reality. While we do not support the concept the legislation governing the property transfer tax, which of free tuition, we do agree that government has a role has aff ected some families unfairly. Th at legislation will alongside families in removing fi nancial impediments to be amended to clarify its intent so the tax will generally higher education and skills training. not apply to family farms passed from one generation Th at's why in 2012 we introduced changes to help low- to the next. income students and their families. We estimate that I want to speak for just a moment about the power of presently the province will pay down just under $1 mil- savings. Saving is about prioritizing for the future. It's lion in student loan principal for up to 17,000 students by hard to save. I fi nd it hard to save. Th ere always seems the end of this year and forgo about $4 million in interest to be a more immediate need. It's virtually impossible to payments. In the coming year, some 20,000 students will save if you're spending more than you make. All of this benefi t as we pay down about $2 million in principal and is true for families, and it's also true for government. But $4.5 million in interest on student loans. by taking some modest steps today to save and plan for Th at will make life a little more aff ordable. Now with the the future, we can have a dramatic positive impact on the B.C. training and education savings grant, higher education most important investment of all — caring for children and skills training for the children of today — the students and improving their future prospects. of tomorrow — will be more accessible than ever before. In 2007, when admittedly, times were a little better, What about the shorter term? Th at's a question many the government started saving. Since January 1, 2007, we parents may be asking. Saving for the future is an excel- have been investing $1,000 for every child born in the lent idea, but what about the more immediate challenges? Tuesday, February 19, 2013 British Columbia Debates 12919

With this budget we're setting out a plan to address those balanced budget wouldn't leave a lot of room for massive as well. widespread spending announcements. As I draw my re- As our economy picks up steam, as we continue to reap marks to a close, members will, I hope, at a minimum, the rewards of prudent fi scal management, we will be accept the veracity of that statement. able to invest an additional $76 million over three years What we've done today is lay out a modest, responsible to improve families' access to quality early learning and and achievable plan to guide B.C. through the next two child care supports. Of that total, $32 million will sup- years of continuing global economic uncertainty with a port the creation of new child care spaces, $37 million is balanced budget, aff ordable spending and, as the econ- targeted to improving the quality of child care and early omy strengthens, some new supports to help make life learning services and another $7 million will be invested more aff ordable for families. to improve coordination of early childhood development It may not be your classic pre-election budget. Would programs and child care services. it just be easier to run a defi cit? Absolutely. When it Th ese investments build on the $1 billion a year the comes to exercising spending discipline, as most parents province currently spends on early learning, childhood can attest, it's not saying yes that's diffi cult. It's saying no. development and child care services and the $129 million It's always possible to put off those diffi cult decisions. It's invested annually in full-day kindergarten. always possible to say: "Oh well, we'll balance the budget In addition, we are investing $146 million in a new next year or tomorrow." Th e problem is that too oft en for provincial tax credit, starting in 2015. Th e new B.C. ear- too many governments, tomorrow never comes. ly childhood tax benefi t will provide up to $660 a year Ever since this government fi rst came to offi ce, we've for children in British Columbia under the age of six to focused on delivering sound fi scal management. In 2002 help families with the cost of their care. Approximately when we tabled our fi rst full budget, we were facing a 180,000 families will be eligible to receive the benefi t. structural defi cit of over $4 billion. We worked hard to Most will receive the full amount, while those with family turn that around, and we succeeded. By 2005 the budget incomes between $100,000 and $150,000 a year will re- was balanced, and we kept it balanced. In fact, we re- ceive a partial benefi t. Th at will help them pay for child corded record surpluses until we were hit by the impact care or any of the other expenses that come with the ter- of what's now being called the Great Recession. ritory when you're raising a young family. We went into defi cit in 2009 because given what was The third initiative to help keep life affordable for happening around us in the world, it was better than the families isn't, strictly speaking, a budget measure, and it alternatives. Instead of making massive program cuts or doesn't appear in the budget bill. But it is important, be- implementing big tax hikes, we spent some money to help cause it will help a lot of families save for the future, and people through the worst of the recession. Th at was the right saving isn't just for six-year-olds. choice. It wasn't a happy choice, but it was the right choice. Some individuals are fortunate to have good pension We knew it wouldn't be easy to get back to surplus plans, but those who are self-employed or work for small budgets, but we committed then, just as we did with our businesses don't have access to the same opportunities. In fi rst full budget in 2002, to do the necessary work to get fact, it's estimated that just one of every three B.C. work- our fi nancial house in order. And just as we did in 2005, ers belongs to a registered workplace pension plan. we stand today on the brink of delivering a series of back- It's diffi cult to save for retirement on your own, es- to-back surplus budgets. Th at will give our province an pecially when you're raising a family. Too oft en parents edge — an edge in attracting new investment in a still are forced to choose between the needs of today and the uncertain global economy. needs of tomorrow. We intend to give those families a We can look forward to a future of growth, opportun- break. During this session we will introduce measures ity and prosperity. It will be a future where parents have that will make it easier for working families to save for re- more support to care for their children; where the educa- tirement and provide an additional optional safety net for tion system is able to prepare them for the jobs and the those who cannot currently access group pension plans. challenges that lie ahead for all of us; where every child We've worked with the federal government, and we'll will have the opportunity to graduate from high school create a mechanism by which thousands more British with money in the bank for further education or skills Columbians will have the opportunity to pool their re- training; and as the economy continues growing stronger, tirement savings with a regulated pension program and a future where our young people have more options and benefi t from economies of scale closer to those sustaining more opportunities than ever before to build their lives large-scale pension plans. We'll provide the House with and careers and families right here in B.C. details in the coming weeks. It's one more way we're Th at's the future we're working towards, and that fu- working with the people of B.C. to build a strong, secure ture now includes balanced budgets. Starting today, as future for the province. British Columbians travel to other parts of Canada, they [1510] will be able to say with pride: "I come from B.C., where I cautioned at the outset that achieving our goal of a the government doesn't spend more money than I send 12920 British Columbia Debates Tuesday, February 19, 2013

it, where the government doesn't burden future genera- by the B.C. Liberals, "creates the appearance of profi tabil- tions with the costs of programs being delivered today." ity where none actually exists." I think I've sat here for at least 19 budgets over the Further, given the fantasy future conjured up in last years, and I've heard them characterized in a variety of week's throne speech, it is worth noting that at the front ways: prudent or reckless, frugal or extravagant. In pre- of the budget document the Deputy Minister of Finance senting this one to the House for its consideration, I ob- cautions that "the fi scal plan assumes no explicit econom- serve, with a modest measure of pride, that it is, in every ic activity or incremental resource revenue from liquefi ed sense of the word, balanced. natural gas development in the province." Th e budget identifi es close to $1.1 billion in savings B. Ralston: Today's budget comes at a critical time for over three years. Th ere is little evidence to suggest that British Columbians. International, economic and demo- this is a realistic estimate. Th e B.C. Liberals seem to be graphic indicators tell us that we face challenging times underestimating health care expenditures as well. Th is ahead. It's time for government to off er realistic analysis year the government is posting the lowest rate of annual and practical solutions. Unfortunately, that is not what health spending increases in the last ten years. Last year's we see in Budget 2013. health budget projected that health expenditures would Today we have a budget that refl ects the priorities of a increase by $605 million for 2013-14, but the documents government heading into an election instead of meeting project $370 million, $235 million less. While some sav- the needs of British Columbians. Whether it is claim- ings may well be achievable, this magnitude of savings is ing revenue that we will never see or underestimating optimistic, to say the least. expenditures, this budget is just one more addition to Investment in justice is being reduced at a time when this government's credibility gap. While real British we know our legal system and court services are facing Columbians struggle to fi nd skills training, get a job or incredible pressures. At a time when the province is fa- take care of loved ones, today's budget off ers little right cing a forestry crisis, instead of investing in our land base, now when it is needed. this Liberal government is cutting the budget for forest [1515] health. While this government claims they're investing in We have seen this before. Th e 2009 pre-election budget future mining and natural gas development, funding for also committed to numbers that had little to do with real- the ministries that support these areas is being reduced. ity, and the most signifi cant piece, the harmonized sales We also see no credible plan or funding to address timely tax, was not even mentioned. In the last pre-election permitting for the resource sector and to avoid a repeat budget, the 2009 budget, the Finance Minister predicted of the backlog mess created by the Liberals. a defi cit of $495 million and a return to a balanced budget Th e education learning improvement fund, created in by 2012. We know, in fact, that the 2009 defi cit was four response to past unconstitutional laws passed by the B.C. times that at almost $2 million, and we have continued Liberal majority here in the Legislature, is inadequate to to see defi cits ever since. Th e projected defi cit for the meet the challenges facing students in our classrooms. 2013 year, ending March 31, next month, is $1.2 billion. We know that 80 percent of the jobs of the future will re- Th is year the government unrealistically claims that quire some form of post-secondary education or train- the budget they have just presented to the House will gen- ing. Despite this, the B.C. Liberals' 2013 budget cuts erate a surplus. Once again, we see unrealistic plans to sell post-secondary education yet again. Th is budget pre- off valuable land and assets. Th e government is booking dicts a reduction in the number of student spaces in col- $475 million in sales for the coming year — this despite leges and universities, less money for student assistance the fact that selling a major property can be a complicat- and less support for advanced education. And we see no ed and lengthy process and many properties will require new investment in apprenticeship and industry training. the government to consult with First Nations about each Th ere's also little to address student debt — this in property intended for sale. a province where students graduate with an average Respected former TD Bank chief economist Don of $27,000 in debt, the highest debt load west of the Drummond, in a report for the Ontario government, ad- Maritimes. Th ere's also nothing new in the budget to dressed the issue of asset sales. Mr. Drummond advised: support our creative and innovative sectors such as fi lm, "In budget planning, do not count chickens before they television, digital media, life sciences and high-tech. are hatched. If assets are to be sold, never incorporate We are disappointed to see that there's nothing in this any revenue from such planned sales into a budget be- budget that will address climate change. Th e fact that the fore the fact." carbon tax revenues will continue to be recycled through Again, the government intends to collect a dividend tax reductions and not used to fund any emission reduc- on dubious B.C. Hydro profi ts. As the Auditor General tion is a lost opportunity. says, the massive debt facing Hydro as the result of de- [1520] ferral accounts makes this questionable. He says that the Th is budget comes aft er months of taxpayer-funded practice of deferring expenses into the future, defended partisan ads that attempt to assure British Columbians Tuesday, February 19, 2013 British Columbia Debates 12921

that all is well. We know that those ads, part of a so- education institution or is disabled. called facts campaign, are designed to help decrease the Th e Land Tax Deferment Act is also amended to allow government's self-admitted credibility gap — millions certain partial disposals of property without triggering of dollars wasted. Today's budget will only increase that the end of the tax deferment agreement and, therefore, credibility gap. the requirement to repay previously deferred taxes. Th is New Democrats believe that British Columbia has a amendment is eff ective on royal assent. bright future, and we have not given up on that future. Th e Home Owner Grant Act is amended to ensure that We want to build upon our incredible diversity — cultur- homeowners who are issued a notice of disentitlement on al, entrepreneurial and geographic. We treasure our nat- or aft er January 1, 2011, may receive the benefi t of the ural environment, which does not have to be sacrifi ced in grant despite having claimed it on the wrong property. order to build a strong economy. We will support British Th e Property Transfer Tax Act is amended to expand Columbians who need the opportunities to get the skills the exemption for transfers of family farms on the death to participate in our economy. of the owner, to ensure transfers to family members are Today's budget has made it clear that it's time for a exempt, as intended. change. I'll have more to say about the budget tomor- Th e Hydro and Power Authority Act is amended to au- row. In the meantime, I move adjournment of the debate. thorize B.C. Hydro to pay grants in lieu of property tax to taxing treaty First Nations that host B.C. Hydro facilities. B. Ralston moved adjournment of debate. B.C. Hydro currently pays grants to local governments and makes payments to non-treaty First Nations but does Motion approved. not pay grants to taxing treaty First Nations. Finally, Bill 9 amends the Forest Act to enhance the Introduction and act's revenue audit compliance provisions. First Reading of Bills I move that Bill 9 be placed on orders of the day for second reading at the next sitting of the House aft er today. BILL 9 — BUDGET MEASURES IMPLEMENTATION ACT, 2013 Bill 9, Budget Measures Implementation Act, 2013, introduced, read a fi rst time and ordered to be placed on Hon. M. de Jong presented a message from Her orders of the day for second reading at the next sitting of Honour the Lieutenant-Governor: a bill intituled Budget the House aft er today. Measures Implementation Act, 2013. Tabling Documents Hon. M. de Jong: Mr. Speaker, I move fi rst reading of Bill 9, Budget Measures Implementation Act, 2013. Hon. M. de Jong: I have the pleasure to rise to table the Budget and Fiscal Plan 2013/14–2015/16, which fulfi ls Motion approved. the requirements of section 7 of the Budget Transparency and Accountability Act. I also table, on behalf of the Hon. M. de Jong: Bill 9 amends seven statutes to im- ministers responsible, the government's overall strategic plement many of the legislative amendments necessary plan and service plans, as required under the Budget to give eff ect to Budget 2013. Transparency and Accountability Act. Th e Income Tax Act is amended to increase the general Th e service plan documents are presented in two bind- corporate income tax rate to 11 percent, eff ective April 1, ers. Th e fi rst binder contains service plans for the Offi ce 2013, and to establish a new temporary top personal in- of the Premier and 16 ministries. Th e second binder con- come tax bracket with a rate of 16.8 percent for income tains service plans for 30 Crown corporations. The over $150,000. Th e new personal income tax rate and second binder includes a list of organizations that are ex- bracket are eff ective January 1, 2014, and will apply for empted from the service plan requirements under sec- the 2014 and 2015 tax years only. tion 13 of the Budget Transparency and Accountability Th e Tobacco Tax Act is amended to increase the tax Act. rate by $2 per carton of 200 cigarettes and translates into one cent per gram of fi ne-cut tobacco, eff ective October Hon. M. de Jong moved adjournment of the House. 1, 2013. Th e Land Tax Deferment Act is amended on the later Motion approved. of March 19, 2013, and royal assent, to expand the prop- erty tax deferment program for families with children. Mr. Speaker: Th is House stands adjourned until 1:30 Th e expansion will allow eligible homeowners who fi - tomorrow aft ernoon. nancially support a dependent child of any age to defer their property taxes if the child is either enrolled in an Th e House adjourned at 3:25 p.m.

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