B.C. Today – Daily Report June 28, 2019

Publisher’s note: The next edition of BC Today will arrive in your inbox after the Canada Day long weekend on Wednesday, July 3.

Quotation of the day

“I came here with considerable referee experience in my life and I didn’t have to use any of it.”

Despite anticipating a contentious Western Premiers’ Conference, Manitoba Premier Brian ​ Pallister says B.C. Premier and Premier Jason Kenney participated in ​ ​ ​ ​ ​ candid and “very effective” discussions during the interprovincial summit in Edmonton ​ ​ yesterday.

Today in B.C.

The House is adjourned for the summer recess.

Fireworks fail to materialize at Western Premiers’ Conference, despite ongoing legal proceedings between B.C. and Alberta

This year’s Western Premiers’ Conference in Edmonton was a surprisingly tame affair, despite much speculation that long-running tensions between B.C. and Alberta would ignite when premiers John Horgan and Jason Kenney met face-to-face for the first time. ​ ​ ​ ​

The leaders of Canada’s four western-most provinces and all three territories discussed mental ​ health and addictions issues, Arctic sovereignty, permafrost and forest fires, and labour mobility and inter-provincial trade. As a result of the annual meeting, the premiers committed to putting forward a signed communique recognizing professional credentials between the provinces and territories, and bringing it to the Council of the Federation next month.

Horgan bowed out of the press conference that capped the meeting early in order to catch a flight back to Victoria but said he and Kenney had “robust discussions” about the interests of their respective provinces.

“We have worked, I believe, very cooperatively as a group, and I think Premier Kenney and I are off on the right foot,” Horgan told reporters.

For his part, Kenney said Horgan now has “a full understanding” of Alberta’s position on its oil exports and the Trans Mountain pipeline expansion.

“I made it clear to Premier Horgan that if we see from any province, obstruction of the movement of our products … in a way that we think violates the constitution, we will take action to defend our vital economic interests,” Kenney said. “I hope it doesn’t come to that, and I believe we’ve begun a productive, professional and respectful relationship so we can discuss these issues with a clear understanding of our mutual goals.”

Horgan played down the tensions between the neighbouring provinces, characterizing B.C.’s legal challenges relating to the Trans Mountain pipeline as attempts to clarify the province’s powers.

“It’s not been about and Alberta — I’ve been steadfast on that for the past two years,” he said. “It’s been about the federal government asserting jurisdiction that I believe is at a minimum shared if not, in some instances, exclusively provincial.”

“We have not been dragging our feet on this,” Horgan added of B.C.’s handling of permits related to the Trans Mountain expansion. “Rule of law is paramount in Canada and that’s why we have been proceeding through the courts, sometimes successfully, sometimes unsuccessfully.”

One thing both Horgan and Kenney solidly agree on: B.C.’s reference case regarding the province’s power over heavy oil shipments across its borders should have gone straight to the

Supreme Court of Canada, where it was recently submitted for consideration after B.C.’s own appeal court rejected it.

Alberta’s Court of Queen’s Bench is set to begin hearing B.C.’s challenge to Alberta’s “turn-off-the-taps” law today.

“I hope we are successful,” Horgan said of the case, where the province will argue Alberta’s law intends to punish B.C. for supposedly holding up TMX.

Manitoba Premier Brian Pallister said he was pleasantly surprised by the cordiality between ​ ​ Horgan and Kenney.

“I think it says a lot about the quality of leadership in these two provinces beside me,” he said. “Both these gentlemen and all the premiers at this table are deeply committed to this country and demonstrated it in the candour and the very effective discussions that we shared over the last number of hours together.”

Finance Minister unfazed by slow cannabis sales but says B.C. municipalities should brace for meagre revenue-sharing

So much for B.C.’s bud-loving reputation. The province’s monthly cannabis sales have yet to break $3 million since Statistics Canada began publishing provincial cannabis sales data in ​ ​ December 2018, making it the lowest legal cannabis seller of any province save Prince Edward Island.

Despite sluggish sales, Finance Minister remains optimistic the province will see ​ ​ more profitability “a year or two” down the road.

“I think there are people who thought that B.C. would be at the top of the leaderboard when it came to revenue [from cannabis], but I think the other reality is, because we’ve had an underground market in British Columbia for a long period of time, it is taking time to make sure that we get everyone in to the legal process and that they go through the process of registering,” James told BC Today. ​ ​

In Budget 2019, the province reduced its expectations for cannabis-related revenues — from ​ ​ $50 million projected in the previous budget for the 2018-19 fiscal year to less than $17 million.

“It was not surprising to us that you weren’t seeing huge dollars come in. We were very conservative in our estimates [and] what we’ve seen, in fact, is even a bit less,” James said. “We expect that you’ll see a shift in that as you see more retail open.”

Some retailers interested in entering the legal cannabis market are holding off until cannabis edibles become available, according to the finance minister, something Ottawa has tabled for December.

B.C. has yet to hash out how it will share cannabis-related revenues with local governments.

“I know that the municipalities are very keen to talk about revenue sharing — that’s a big area that they are eager to talk about,” James acknowledged. “There isn’t revenue right now because, when you take the revenue coming in and take the costs off, we haven’t reached a point to be able to have revenue to share yet, but I think we’ll be there.”

The province has been in discussions with a working group from the Union of B.C. Municipalities around which levels of government are incurring costs related to cannabis legalization — including policing, licensing and bylaw enforcement — in order to come up with a fair revenue-sharing formula.

“We are taking our time to make sure we are doing this right,” James said.

Today’s events

June 28 at 9 a.m. – Esquimalt ​ Premier John Horgan will be joined by , parliamentary secretary for sport and ​ ​ ​ ​ multiculturalism, as well as Indigenous athletes and community leaders for a funding announcement at the Songhees Wellness Centre.

June 28 at 9 a.m. – ​ Citizens' Services Minister will be joined by NDP MLA (Burnaby ​ ​ ​ ​ North) at the B.C. Institute of Technology for an announcement about provincial action to address climate change.

June 28 at 11 a.m. – Victoria ​ Lieutenant Governor Janet Austin and Premier John Horgan will present 15 influential B.C. ​ ​ ​ ​ ​ leaders “who have served with distinction and excelled in fields of endeavour benefiting the ​ people of British Columbia and elsewhere” with the Order of British Columbia, the province’s highest honour, in a ceremony at Government House.

June 28 at 11 a.m. – ​ Health Minister and Education Minister will provide an update from ​ ​ ​ ​ the B.C. government’s Vancouver cabinet office on the province’s ongoing efforts to increase immunization rates and protect children against disease outbreaks.

June 28 at 1 p.m. – Surrey ​ Attorney General and Citizens' Services Minister Jinny Sims will host a tour of the ​ ​ ​ ​ newly renovated Surrey Courthouse.

June 28 at 1:15 p.m. – Victoria ​ Premier John Horgan, Chief Robert Joseph of Ditidaht First Nation, Chief Jeff Jones of ​ ​ ​ ​ ​ ​ Pacheedaht First Nation, and Liberal MP John Aldag, (Cloverdale—Langley City) will sign an ​ ​ agreement to advance treaty negotiations. The signatories will be joined by Elders and members of Pacheedaht and Ditidaht , representatives of the Government of Canada and Parks Canada, and B.C. Indigenous Relations and Reconciliation Minister Scott ​ Fraser. ​

June 28 at 3 p.m. – Courtenay ​ Green Party MLA (Saanich North and the Islands) will host an informal roundtable ​ ​ event at the Comox Valley Chamber of Commerce. Olsen will then attend a beer and burgers event, beginning at 6:30 p.m. at the Cornerstone Tap House.

Weekend events

June 29 at 9:30 a.m. – Campbell River ​ Green Party MLA Adam Olsen (Saanich North and the Islands) will host a town hall event in ​ ​ Spirit Square alongside Mark de Bruijn, the ’s North Island—Powell ​ ​ River candidate in the upcoming federal election.

June 29 at 6:30 p.m. – Victoria ​ The Green Party’s Oak Bay—Gordon Head riding association will hold its “Summer Suds at the ​ Moon in June” fundraiser at the Moon Under Water Brewpub.

July 1 at 12 p.m. – Victoria ​ Canada Day celebrations will take place on the lawn of the B.C. Legislature.

July 2 at 4 p.m. – Revelstoke ​ Liberal MLA (Columbia River—Revelstoke) and the Liberal Party’s Columbia ​ ​ River—Revelstoke riding association will hold a free barbecue at the Bernacki residence with Liberal Party Leader as a special guest. ​ ​

Topics of conversation

● Mayors in municipalities affected by the NDP government’s speculation tax can expect to receive an invitation to meet with Finance Minister Carole James and discuss the ​ ​ impact of the tax on their communities early next month. The province plans to share its data on the tax with local government representatives toward the end of the summer — early September, James suggested, to give her ministry time to compile the information. The first instalment of the new tax was due from eligible property owners this month. ○ The meeting will be the first opportunity for mayors who oppose the speculation tax to express their discontent to the finance minister since the levy went into effect at the beginning of this year.

● Liberal mental health and addictions critic Jane Thornthwaite is pleased with the ​ ​ government’s Pathway to Hope mental health strategy — partly because it “builds on the ​ work done by the previous B.C. Liberal government” — but the North ​ Vancouver—Seymour MLA’s tepid endorsement comes with caveats. “While we ​ welcome the government’s vision to improve mental health and addiction services in British Columbia, this plan still ignores many of the immediate steps necessary to help save youth today,” Thornthwaite said in a statement, noting that her private member’s bill M207, Safe Care Act, remains on the order paper. ​ ○ The bill, which Thornthwaite has twice introduced, would help parents get children at risk of overdose into treatment programs.

● After six months of slippage, confidence among B.C. business owners is on the rebound, according to the Canadian Federation of Independent Business’ monthly Business ​ Barometer. Business owner confidence “showed a marginal 0.7 point increase in June,” ​ ​ according to the monthly survey, rising to 53.8 points — still well below the Canadian average of 61.5 points.

● Most provinces saw revenues from cannabis sales increase in April, but the amount of dried cannabis sitting in Canadian production and retail warehouses also increased — to 31,880 kilograms, a 3.5 per cent increase over March. When unfinished cannabis inventory is included, that figure rises to 215,665 kilograms, according to BNN ​ ​ ​ Bloomberg News. That’s more than 24 times the volume of cannabis sold Canada-wide ​ in April. ○ Cannabis analysts from BMO Capital Markets have already warned that much of Canada’s current cannabis inventory could wind up worthless and result in ​ ​ write-downs by the industry.

News briefs - Governmental

Ministry of Citizens’ Services Citizens’ Services Minister Jinny Sims was in Prince George yesterday to unveil the ​ ​ Government Buildings Program — part of the NDP government’s CleanBC strategy. ​ ​

A $58-million investment over the next five years will transform the energy footprints of courthouses, correctional centres, warehouses and ministry offices by boosting energy efficiency, using innovative designs and installing renewable building energy systems.

Over the longer term, the program aims to increase the energy efficiency of the province’s public buildings by 80 per cent by 2050 by conducting energy-efficient retrofits, installing EV charging stations and building all new government buildings using green design and innovative ​ technologies.

The program will also focus on making buildings more resilient to climate change — including increased risk of flooding and high wind events — by relocating and reinforcing equipment and installing more HVAC systems and exterior drainage.

Sims made the announcement at the City of Prince George’s Downtown Renewable Energy System, which uses biomass to heat 10 local buildings.

The city government has already documented more than $100,000 worth savings from natural gas and carbon offsets after having just two of its buildings connected to the system, according to Mayor Lyn Hall. Prince George local courthouse has reduced its greenhouse gas emissions ​ ​ by 30 per cent after connecting to the biomass system in 2018.

Funding announcements

● The Ministry of Education is investing $77.1 million to seismically upgrade Victoria ​ ​ High School. The School District will contribute $2.6 million to the ​ ​ upgrade project, which will include a 200-seat expansion at the century-old school as well as a neighbourhood learning centre to house local child care programs. Construction will begin in August 2020 and is expected to be complete in time for the 2022 school year. ○ The $79.7-million project budget includes the cost of renovating the SJ Willis Education Centre to accommodate students from Victoria High during the renovations, as well as other Victoria school district students affected by future seismic upgrade projects.

● A joint investment by B.C. Housing and the City of Port Moody will build The Springs, ​ ​ ​ ​ ​ ​ a 55-unit affordable rental housing development on the former site of St. Andrews’s ​ ​ United Church. The provincial contribution of $9.5 million will cover capital funding and construction financing costs; the site, valued at $4.5 million, was provided by the United ​ Church of Canada. Through its Port Moody Affordable Housing Reserve, the city is ​ ​ ​ contributing $528,000. The Springs will feature a mix of units — from studios up to three-bedrooms — geared toward low to moderate-income individuals and families. The housing portion will be operated by Catalyst Community Development and St. ​ ​ ​ Andrew's Port Moody Housing. Construction is underway and the building is expected ​ to be complete by summer 2021. ○ The site will also include space for a redeveloped church and the new Tri-Cities ​ Children's Centre, operated by Kinsight and Share Family & Community ​ ​ ​ ​ Services Society, which will offer services and programming for families of ​ ​ ​ children with developmental delays and disabilities.

● The Ministry of Social Development and Poverty Reduction is providing ​ ​ ​ Communication Assistance for Youth and Adults (CAYA) with $9.5 million over the ​ next three years to help the organization update aging equipment and client systems, ​ ​ and continue helping people with severe communication disabilities live as independently as possible.

Lobbyist registrations

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

Consultants who registered as lobbyists from June 21, 2019 – June 27, 2019

● Erin Beattie, Global Public Affairs ​ o Clients: Amazon Web Services ​

● Nicole Brassard, Global Public Affairs ​ o Clients: Vancouver Airport Authority ​

● Matt Williamson, Global Public Affairs ​ o Clients: Canadian Energy Pipeline Association ​

● Jeremy Bruce, Summa Strategies ​ o Clients: Clear Seas Centre for Responsible Marine Shipping ​

● Mark Jiles, Bluestone Government Relations ​ o Clients: British Columbia Seniors Living Association; Prosthetics and ​ Orthotics Association of British Columbia

● Rob Nagai, Bluestone Government Relations ​ o Clients: Prosthetics and Orthotics Association of British Columbia ​ (POABC)

● Dustin Alvarez, Zayge Klein, Strategies North Advisory Inc ​ o Clients: Williams Lake Indian Band ​

● John Frederick Moonen, John Moonen & Associates Ltd. ​ o Clients: HARBO Technologies Ltd. ​

● Dennis Burnside, Capital Hill Group ​

o Clients: The District of Mission ​

● Mike Alvan Bailey, Western Policy Consultants Inc. ​ o Clients: KTL Transport Inc. ​

Organizations that registered in-house lobbyists from June 21, 2019 – June 27, 2019 ● Amgen Canada Inc. ● Canadian Generic Pharmaceutical Association (CGPA) ● BC Poverty Reduction Coalition ● Siemens Healthcare Limited ● BC Agriculture Council ● BC Alliance for Healthy Living Society ● Rick Hansen Institute ● Accenture Inc. ● VeloMetro Mobility Inc. ● CropLife Canada ● Insurance Bureau of Canada ● Medtronic Canada ULC