B.C. Today – Daily Report June 17, 2019

Quotation of the day

“We need and his government to step up and take action — any action — to help our small, forest-dependent towns get through this challenging time.”

Liberal MLA () says the NDP government has not done enough ​ ​ to support forestry-dependent communities, as mills around the province continue to close and curtail production.

Today in B.C.

The House is adjourned for the summer recess.

Committees this week The Select Standing Committee on Finance and Government Services is conducting public ​ consultations on Budget 2020 this week, starting with a session in Prince Rupert at the Highliner ​ Plaza Hotel and Conference Centre at 2 p.m. today. Committee members will also visit Kitimat,

Prince George, Fort St. John and Quesnel before heading back to the Lower Mainland for a consultation in Abbotsford on Thursday.

The consultation period ends on June 28.

Mill closures and curtailments lead to political jousting As announcements of mill closures and curtailments pile up, the opposition B.C. Liberals are calling on the NDP government to slash stumpage rates and reduce the carbon tax for the province’s forestry sector.

“To date, the John Horgan government has thrown up its hands and told forest-dependent ​ ​ communities there is nothing it can do to help them,” Liberal Leader said in ​ ​ a statement, released in tandem with a letter addressed to the last week. “This is failed leadership on the part of John Horgan — plain and simple. Hard-working B.C. families need help and they need it now.”

That help needs to be multi-pronged, according to Wilkinson’s letter, which calls on the NDP government to lobby Ottawa for support for affected workers and “to get B.C. the softwood deal it deserves” with the United States, as well as establish a bi-partisan “forestry competitiveness committee” to look at the long- and short-term issues facing the province’s forestry industry.

Two sawmills in B.C. are set to permanently close this summer while others reduce shifts.

Meanwhile, Chief Shelly Loring, the head of the Simpcw First Nation, said local First Nations ​ ​ were “dismayed” they were not part of the decision-making process ahead of Canfor’s ​ ​ announcement it will close its Vavenby sawmill. Loring said representatives from Simpcw met with Forests Minister earlier in the spring, but those discussions included no ​ ​ mention of the company's plan to sell its forest tenures to Interfor. According to Loring, Simpcw ​ Resources Group Ltd. previously expressed an interest in potentially acquiring at least some of ​ the company’s tenures.

The fate of forestry in B.C. appears grim, and has for decades. The total number of ​ ​ forestry-related jobs in the province has dropped by half over the past 30 years. “It's the chickens coming home to roost … it's a scandalous waste of riches and it's been true for the last 50 years,” former NDP forests minister Bob Williams told CBC News of the current state of ​ ​ B.C. forestry.

Last month, a report commissioned by Woods Markets Group estimated that a dozen B.C. mills ​ ​ ​ ​ could close over the next 10 years. “In the worst-case scenario, 13 mills will close,” Jim Girvan, ​ ​ a professional forester and author of the report, told the Sun. “In the best-case ​ ​ scenario, 26 mills will reduce (one shift each). Either way, the impact on lumber production, residual chip production, the impact on employment is the same.”

In 2010, Girvan predicted that, by 2018, 16 B.C. mills would close due to the impact of the mountain pine beetle. He wasn’t far off: 12 mills have closed and another six have axed shifts due to a lack of fibre.

Another unusually hot and dry summer is expected for B.C. — after two summers of record-setting wildfires — which could worsen the province’s fibre situation.

While in Europe during the first week of June, Horgan touted his government’s efforts to ​ address specific regional challenges in Interior and coastal timber areas. ​ ​ ​ ​ “Experts have known for some time that the beetle kill and the knock-on effect of two horrific fire seasons have put us in a position where our fibre supply is a fraction of what we anticipated it to be even five years ago,” Horgan said. “That means we are going to have to do things differently. Part of the rationale for us bringing forward legislation this spring and working with industry and other leaders is to make sure that we go into the transformation of the Interior forest sector together.”

Ottawa to decide on expansion tomorrow The federal government is expected to release its decision on the future of the Trans Mountain pipeline expansion Tuesday.

The expansion project was first proposed in 2012 and would twin the existing pipeline, which runs from Edmonton to Burnaby, and more than triple its capacity. Ottawa purchased the existing pipeline last spring for $4.5 billion after Kinder Morgan seemed set to walk away from the expansion after years of uncertainty about its fate.

Although the federal government does not intend to permanently operate the pipeline, federal Finance Minister Bill Morneau told BNN Bloomberg there are no immediate plans to find a ​ ​ ​ ​ ​ buyer for it. At least two First Nations coalitions — Project Reconciliation and Iron Coalition — ​ ​ ​ ​ have expressed an interest in buying a majority stake in the pipeline.

Despite Ottawa’s vote of confidence, the Supreme Court of Canada unanimously overturned the federal government’s approval of the project last August. The court found required consultations with First Nations were inadequately conducted and concluded the approval was based on the National Energy Board’s (NEB) review, which failed to take into account the impact increased tanker traffic associated with the project would have on local marine life.

The NEB has subsequently re-reviewed the project and recommended that it proceed, and a new round of consultations with First Nations was conducted under the oversight of former ​ Supreme Court of Canada justice Frank Iacobucci. ​ ​

While close to 50 per cent of Canadians support the TMX expansion, according to polling from ​ ​ Nanos Research for , opponents of the project remain vocal and active, ​ ​ especially in B.C. Last year, Vancouver Mayor Kennedy Stewart — then an NDP MP for ​ ​ Burnaby South — was arrested while protesting the project. David Anderson, a former federal ​ ​ ​ ​ ​ environment minister and Liberal MP, sent letters to six members of Prime Minister Justin ​ Trudeau’s cabinet last week saying Ottawa has failed to make a business case for the ​ ​ ​ expansion.

B.C.’s NDP government promised to use “every tool in the toolbox” to stop the expansion and still has at least one wrench to possibly throw in the works. The province’s reference case — over whether it has the jurisdiction to restrict shipments of heavy oil, including bitumen, across its borders — is set to head to the Supreme Court of Canada, after being unanimously rejected by the B.C. Court of Appeal.

Today’s events

June 17 at 10:30 a.m. – ​ Premier John Horgan will participate in the official opening of École Poirier Elementary School. ​ ​ The premier will not take questions at the event due to time constraints.

June 17 at 11:30 a.m. – Surrey ​ Mental Health and Addictions Minister will be joined by , parliamentary ​ ​ ​ ​ secretary for multiculturalism and sport, and representatives from the South Asian Mental Health Alliance to launch a new mental health program for South Asian youth in B.C. at Tamanawis Secondary School.

June 17 at 1 p.m. – Langford ​ Premier John Horgan and Education Minister will make an announcement ​ ​ ​ ​ benefiting Sooke School District students at the corner of Westshore Parkway and Constellation Avenue.

June 17 at 3:30 p.m. – Surrey ​ Federal Families, Children and Social Development Minister Jean-Yves Duclos, who is also the ​ ​ Minister Responsible for Canada Mortgage and Housing Corporation, will make an announcement related to the First-Time Home Buyer Incentive and the Shared Equity Mortgage Provider Fund at the King George SkyTrain Station.

Upcoming events

June 18 at 6:45 p.m. – Kelowna ​ Ministry of Tourism, Arts and Culture staff will be at the Kelowna Museums Society to solicit public feedback on the planned modernization of the Royal B.C. Museum. ​ ​

June 20 at 7 p.m. – New Westminster ​ Attorney General will be the guest of honour at a B.C. NDP fundraiser at the ​ ​ University of ’s Koerner’s Pub, hosted by Burnaby—Deer Lake MLA Anne ​ Kang. Public Safety Minister and Solicitor General ; Environment and Climate ​ ​ ​ ​ Change Strategy Minister ; Minister of State for Trade ; and ​ ​ ​ ​ Jobs, Trade and Technology Minister will be in attendance, as will musical ​ ​ guests Zachary Gray of The Zolas and Peter Graham-Gaudreau. ​ ​ ​ ​

June 26 at 7 p.m. – Victoria ​

The B.C. Green Party’s Victoria—Beacon Hill riding association will host a community engagement event on “mass and regional transit in the Greater Victoria area” at the Fernwood ​ Community Association.

June 27 at 8:05 a.m. — Edmonton ​ Premier , the incoming chair of the Western Premiers’ Conference, will host ​ ​ premiers from B.C. to Manitoba and all three territories at Government House for the Western Premiers’ Conference.

Topics of conversation

● Premier John Horgan’s “relationship-building visit” to France, the United Kingdom and ​ ​ the Netherlands was a success, according to the premier. “Forming business ​ partnerships will lead to shared prosperity and greater opportunities for people,” he said in a statement after returning to B.C. on June 14. “We are working to open doors for B.C. ​ ​ businesses and if we seize opportunities in trade, energy and clean technology, we can sharpen our global competitiveness and be a positive influence in the world.”

● Eight United States senators from Alaska, Washington, Idaho and Montana wrote a letter ​ ​ to Premier Horgan last week, calling on him to strengthen regulatory oversight of mining operations that impact watersheds shared by the province and their states. “While we appreciate Canada’s engagement to date, we remain concerned about the lack of oversight of Canadian mining projects near multiple transboundary rivers that originate in B.C. and flow into our four U.S. states,” the letter reads.

● Industry groups — especially the oil and gas industry — were responsible for 80 per cent of lobbying for proposed amendments by the Senate to Bill C-69, the Narwhal reports. ​ ​ ​ ​ ​ That is in contrast to 13 per cent of lobbying efforts on the bill done by environmental groups and just four per cent done by one First Nation. The bill, which overhauls the environmental assessment process for infrastructure projects, was sent back to the House of Commons last week after passing in the Senate with 187 amendments. The Liberal-led House concurred in about 100 of those amendments (mostly those proposed by Independent senators) and has sent a motion back to the Senate notifying it of the changes. ○ The current parliamentary session is scheduled to finish this Friday; if the bill is not passed by then, it dies. ○ Federal Finance Minister Bill Morneau said a letter from six conservative ​ ​ provincial and territorial leaders was unhelpful. “I believe it is unhelpful to ​ ​ threaten national unity if your specific Conservative approaches to policy implementation aren’t adopted,” Morneau wrote.

● The Senate passed third reading on Bill C-48, which puts a tanker moratorium off the ​ ​ ​ ​ north coast of B.C., with amendments late last Thursday night.

● The Supreme Court of Canada has declined to hear an appeal of a B.C. Court of Appeal ​ ​ decision to allow Taseko Mine Limited to conduct exploratory drilling around a lake the Tsilhqot'in Nation considers sacred.

● The CEO of Western System Controls Ltd., a unionized construction company with headquarters in Kelowna, says he is considering moving the business out of B.C. as a result of the NDP government’s employer health tax. “After 47 years of doing business in this Province, we are seriously considering a move to another more tax friendly Province that will keep us competitive across Canada in a very tough industry,” wrote Dennis ​ Hostland in a letter addressed to Premier John Horgan, Finance Minister Carole ​ ​ ​ ​ James and Liberal MLA Steve Thomson (Kelowna—Mission). “The latest B.C. ​ ​ ​ Employer Health Tax is more than likely the final nail in the coffin that will lead to our decision to finally make the move out of B.C.” ○ The B.C. Liberal caucus publicized the letter last week, just as the first instalment of the new tax — which shifts the burden for Medical Services Plan premiums from individuals to employers with B.C. payrolls over $500,000 annually — was due.

● The Vancouver Sun published a deep dive into the sale of 164 “surplus” public assets ​ ​ ​ ​ ​ over the past five years under the B.C. Liberal government’s Release of Assets for ​ Economic Generation program.

● The Vancouver Art Gallery was the site of a protest against the province’s Sexual ​ ​ Orientation and Gender Identity policy — known as SOGI 123 — on Saturday. Counterprotestors also showed up and things got heated but not violent, according to the Vancouver Police Department. Morgane Oger, a transgender rights activist ​ ​ and former B.C. NDP candidate, and Laura Lynn Tyler Thompson, who ran ​ ​ unsuccessfully for the People’s Party of Canada in the recent Burnaby South federal byelection, had an animated argument outside the gallery. ○ The goal of SOGI 123 is to help LGBTQ students feel safe and included in schools.

Funding announcements

● The Ministry of Advanced Education, Skills and Training is investing $2.7 million to ​ ​ ​ ​ expand Indigenous teacher education at the Nicola Valley Institute of Technology ​ (NVIT) in response to the Truth and Reconciliation Commission's Call to Action #62, ​ which calls upon governments to fund post-secondary institutions to educate teachers on how to integrate Indigenous knowledge and teaching methods into classrooms. NVIT

will use an additional $730,000 to support two master of education cohorts in partnership with the University of British Columbia. ○ Just over half of the funding is dedicated to spaces to train Indigenous teachers — currently no more than six per cent of B.C.’s education program graduates are Indigenous.

● B.C. Housing has reached a deal to purchase 49 housing units in Kelowna from Culo ​ ​ ​ ​ Development. The McCurdy Road site is currently home to a Knights of Columbus ​ ​ hall, which will be redeveloped starting this summer with completion expected for spring 2021. The new supportive housing development will be run by the Canadian Mental ​ Health Association of Kelowna, which will provide residents with 24/7 services, ​ including referrals to Interior Health’s recovery programs. ○ The Knights of Columbus will receive a new hall and two units in the new development as part of the deal.

● Two new housing developments opened in Terrace last week, adding 97 units to the city’s housing supply. A 52-unit supportive housing development and a 45-unit affordable housing development will both be operated by Ksan Housing Society. The Ministry of ​ ​ ​ Municipal Affairs and Housing provided a total of $18.4 million in capital funding for ​ ​ ​ both projects. The City of Terrace provided the land valued at $220,000 for the modular ​ ​ supportive housing project; the affordable housing development benefits from a $250,000 Affordable Housing Fund grant, municipal waivers in the amount of $178,000 and the land valued at approximately $441,000 provided by the city.

● The Correctional Centre will be replaced to the tune of $157 million, with ​ ​ ​ ​ construction set to begin shortly and completion expected by the spring of 2023. The replacement is expected to create 650 direct and 275 indirect jobs, along with “nearly 100 spinoff jobs associated with spending by those workers,” according to Citizens’ Services Minister . A request for qualifications for the project has been ​ ​ ​ ​ posted on B.C. Bid.

● The Ministry of Social Development and Poverty Reduction has provided the Social ​ ​ ​ Planning and Research Council of British Columbia (SPARC BC) with $6 million to ​ establish a Homelessness Community Action Grant. Over the next three years, local ​ ​ organizations in communities around the province can apply for one-time grants to support projects that build on local resources and knowledge about homelessness and its causes, increase public awareness and support, and respond to gaps in services for people experiencing homelessness.

● Five B.C. companies will share nearly $1.2 million through the Ministry of Energy, ​ Mines and Petroleum Resources’ Advanced Research and Commercialization ​ ​ Program, which aims to boost the competitiveness of the clean energy vehicle sector. ​ ​ ​

○ In the Kootenays, Eagle Graphite will use $290,000 to produce silicon/graphite ​ ​ battery anodes, which result in lighter batteries with a greater range. The goal is to “establish B.C. as a global leader in anode production,” according to the ministry, which expects the project to be completed by 2021. ​ ​ ○ Burnaby’s AVL Fuel Cell Canada will use $147,000 to develop an advanced fuel ​ ​ cell model for research and series development applications in the automotive sector. The project will wrap up by the end of 2021. ​ ​ ○ IRDI Systems in Richmond will use $55,000 to develop a hydrogen fuelling ​ nozzle to enable commercial fuel-cell vehicles to fuel more quickly. The project is ​ ​ expected to be complete by the end of 2019.

● On Father’s Day, the Ministry of Health announced a $1 million investment to support ​ ​ ​ ​ three programs run by the Canadian Men’s Health Foundation: Don't Change Much, ​ ​ ​ ​ You Check and the DUDES Club. ​ ​ ​

Can’t get enough of B.C. politics? Listen to this week’s episode of PolitiCoast on how ​ ​ pharmacare will play in the upcoming federal election.