BC Today – Daily Report February 25, 2020

Quotation of the day

“Let justice be done though the heavens fall.”

Attorney General urges the Commission of Inquiry into Money Laundering in B.C. to ​ ​ be “fearless” as it probes the province’s dirty money problem.

Today in B.C.

On the schedule The house will convene at 10 a.m. for question period.

Monday’s debates and proceedings Two government bills were introduced Monday; both were announced weeks before hitting the ​ order paper.

Attorney General David Eby introduced Bill 9, Evidence Amendment Act, which, if passed, will ​ ​ ​ ​ ​ ​ limit the number of experts and expert witness reports that can be used in automobile injury

claims cases while giving judges the option to allow more. The legislation will also limit the costs lawyers can pass on to their clients.

Municipal Affairs Minister introduced Bill 10, Municipal Affairs and Housing ​ ​ ​ ​ Statutes Amendment Act, which, if passed, will give municipalities the option to pass bylaws to provide property tax exemptions for small businesses, arts and culture organizations, and non-profits in time for the 2020 tax year (more on this below).

The bill also makes changes to the Assessment Act, the Local Government Act, the Community ​ ​ ​ ​ ​ ​ Charter and the Charter. ​ ​ ​

Eby also tabled the Judicial Compensation Commission’s final report. ​ ​

MLAs spent the afternoon debating the budget bill.

At the legislature Monday was Mining Day in B.C. Multiple MLAs welcomed representatives from a variety of mining organizations to the house.

Attorney general calls on Liberals to hand cabinet documents over to money laundering commission Attorney General David Eby hailed the start of the Commission of Inquiry into Money ​ ​ Laundering in B.C. as the beginning of a process that will answer British Columbians’ questions ​ about the proliferation of money laundering in the province.

“British Columbians deserve to know three simple things,” Eby said of the dirty money scandal. “First, how was this problem allowed to grow? … Second, who is doing this? … Finally, how big is this issue? How exactly are money launderers working in our economy and how can we best stop them?”

He called on the commission — dubbed the Cullen commission after B.C. Supreme Court ​ Justice Austin Cullen — to be “fearless” as it probes the issue. ​ ​

“The public and the government need this commission to identify the weeds that are choking beneficial activities in our economy and wreaking havoc in our communities so that they may be routed out,” he said, pointing out that money laundering operations have been linked to the Lower Mainland’s runaway real estate market as well as the overdose crisis.

The attorney general also took the time to castigate members of the previous Liberal government for their “simple and inexplicable failure ... to commit fully and in an unqualified way to the disclosure of all relevant cabinet documents concerning money laundering to the commission.”

Former finance minister has cabinet documents ‘in a binder’ Eby first asked the Liberals to waive cabinet privilege on the documents in the summer of 2018. His request was initially rebuffed, but in January, Liberal Leader agreed to ​ ​ release the documents following a review of some kind. ​

Liberal MLA and former finance minister has been delegated the Liberals’ ​ ​ pointman, according to Eby, tasked with dealing with cabinet documents from the former government that might be relevant to the commission.

“My expectation ... would be that the B.C. Liberals would instruct the public service to disclose — without qualification, without censorship — the entire package of relevant cabinet records,” Eby told reporters. “MLA de Jong is likely to be a significant witness in this proceeding with great personal interest in the outcome — he is in a profound conflict of interest.”

“Why would the public have any confidence that he would release to a public inquiry cabinet documents that could be profoundly damaging to his professional reputation should such documents exist?” the attorney general asked.

De Jong told reporters he has been contacted by the commission and won’t be vetting the documents in any way.

“I expect they would want it all and that's what's going to happen,” he told reporters. “I want them to have the material that they believe is relevant to the work they're doing.”

The commission’s request goes back farther than the previous Liberal administration, according to de Jong, and includes documents related “to the Nanaimo Commonwealth Gaming inquiry … ​ ​ [and the] laundering of gaming proceeds by the NDP.”

“I am mystified as to why the attorney general — having been part of the government that established an independent public inquiry — thinks it's his role to decide what's relevant, thinks it's his role to decide who should be testifying,” de Jong said of Eby’s comments. “I actually have confidence in the commission and am happy to see them do their work.”

While Eby will not direct the commission’s list of witnesses, he told reporters he hopes De Jong, ex-premier and former cabinet minister are interviewed. ​ ​ ​ ​

“They should be glad I'm not the commissioner,” he said.

Property tax exemption bill would provide maximum flexibility and immediate relief: housing minister The NDP government’s legislation to provide relief for small businesses squeezed by sky-rocketing commercial property taxes was designed to provide municipalities with as much

flexibility as possible while providing for a quick rollout, according to Municipal Affairs and Housing Minister Selina Robinson. ​ ​

“Local governments, they know their communities best,” she told reporters following the bill’s introduction. “They're in the best position to know what this problem looks like in their community, whether it affects a narrow group of buildings, or an entire neighbourhood, or properties of a particular type across their whole community.”

Bill 10 is enabling legislation, according to Robinson, giving local governments the option of ​ ​ ​ creating an interim business property tax relief program in time for the 2020 tax year and lasting for a maximum of five years. Commercial Class 5 (Light Industry) and Class 6 (Business and Other) properties will be eligible, provided they have at least one tenant paying at least a portion of the property’s taxes.

The bill does specify several several parameters — mostly focused on ensuring that only ​ ​ properties that have seen a significant spike in land value are covered by the program — that ​ local governments must include in their bylaws, which must be passed by April 22 in order to affect the 2020 tax year.

The NDP government is still working with the Union of B.C. Municipalities (UBCM), local governments and business stakeholders to develop a more permanent solution, Robinson told reporters, although she could not specify when that long-term fix might be released or what options are being discussed.

Robinson was joined by Brian McBay, chair of the City of Vancouver’s Arts and Culture ​ ​ Advisory Committee, who said the city estimates more than 20 cultural spaces and 400 artist spaces in the city were shuttered over the past year.

"Vancouver is being emptied out of music and performing art venues, art galleries and artist studios,” he said. “The cultural sector is in a crisis, and the province's tax measures are the right step toward halting the closure of art spaces that bring joy and humanity to our democracy."

Liberal Municipal Affairs and Housing critic was less impressed by the NDP ​ ​ government’s approach.

“Split assessment was what local governments, businesses, and organizations wanted,” he said, suggesting the bill should have taken action to address skyrocketing property taxes on unused airspace over the heads of small businesses.

Stone maintains his private member’s bill M201, Assessment (Split Assessment Classification) ​ ​ ​ Amendment Act, would do a better job of addressing the commercial property tax issue. ​ ​

According to the housing ministry, Stone’s bill could not be feasibly implemented in time for the ​ 2020 tax year and would have “wide ranging and unknown tax consequences spanning multiple ​ property classes.”

Today’s events

February 25 at 6 p.m. — Kamloops ​ ​ The BC Green Party’s Kamloops riding association will hold its annual general meeting at the Mount Paul Food Centre.

February 25 at 2:30 p.m. — New Westminster ​ ​ The BC Green Party’s New Westminster riding association will hold its annual general meeting at The Carpentry Shop.

Topics of conversation

● Demonstrations in support of the Wet’suwet’en hereditary chiefs who oppose the Coastal GasLink pipeline popped up around B.C. again yesterday after the Ontario Provincial Police arrested members of the Mohawks of the Tyendinaga at a rail blockade in eastern Ontario. ○ Gitxsan Nation members and supporters began blocking CN Rail tracks near ​ ​ New Hazelton again yesterday, less than a week after dismantling their previous blockade. The West Coast Express in the Lower Mainland was forced to cancel ​ service last night due to demonstrators blocking the tracks in Maple Ridge, and ​ Indigenous youth and their supporters took to the legislature steps again ​ ​ yesterday afternoon. ○ Former B.C. Liberal premier Christy Clark weighed in on the resurgence of ​ ​ ​ ​ demonstrations on Global News’ Linda Steele Show. “I think it’s got to stop,” she ​ ​ said of the disruptions.

● Yesterday, Health Minister and provincial health officer Dr. Bonnie Henry ​ ​ ​ confirmed B.C.’s seventh case of COVID-19 — a man in his 40s who was in close ​ contact with the woman who was diagnosed with the virus after returning from Iran last week. Both individuals remain in isolation at home. Meanwhile, the first individual diagnosed with COVID-19 has fully recovered and the other earlier cases remain in their homes and are expected to undergo testing to confirm their recovery soon. ○ B.C. is no longer sending samples to the National Microbiology Lab in Winnipeg to confirm COVID-19 diagnoses since the BC Centre for Disease Control has been “officially authorized” by the national lab. ○ According to the health minister, about 700 people in B.C. have been tested for the virus so far.

● Summerland Seniors Village is the fourth care home to be placed under government ​ management for failing to meet minimum standards of care for its residents. The facility ​ is operated by Retirement Concepts, which was bought by Chinese insurance company Anbang in 2017. Health authorities have stepped in to manage three other B.C. care homes run by Retirement Concepts in recent months. ○ Health Minister Adrian Dix called the company’s pattern of conduct concerning. ​ ​ “It’s obviously an unusual step,” Dix said of the province’s action.

● Clearwater Mayor Merlin Blackwell is out of patience with the province over the ​ ​ ​ ​ prolonged approval process for the transfer of a timber licence between Canfor and Interfor. “You can’t make your bill payments, you can’t make a decision to sell your ​ equipment, you can’t move on when you’re living in limbo,” Blackwell said of the effect of the delayed decision on his community. “I get it, I understand this is a very complex situation ... Hopefully, this gets a fire going.” ○ The transfer was proposed in the spring of 2019, following Canfor’s decision ​ ​ to close its Vavenby sawmill.

● In light of Teck Resources’ decision to withdraw its Frontier mine proposal, the BC Chamber of Commerce is calling on Ottawa to “urgently build” a “framework that ​ ​ reconciles resource development and climate change” in order to preserve economic investments in Canada. ○ “BC workers, consultants and supply chain partners would have benefited from Frontier, to say nothing of the tax revenue lift for infrastructure investments and social services that projects of this magnitude deliver for all Canadians,” chamber president and CEO Val Litwin said in a statement. ​ ​

News briefs - Governmental

Fatal overdoses drop by more than 30 per cent in 2019 ● Last year, the number of fatal overdoses in B.C. decreased by about 36 per cent compared to 2018, according to the BC Coroners Service. It’s the first time the province ​ ​ has seen the yearly fatal overdose rate go down since 2011, and still, 981 people lost their lives — nearly three people per day — and that figure will almost certainly rise as the Coroners Service continues to conduct testing. “Twenty people die in this province every week of drug toxicity,” said chief coroner Lisa Lapointe, noting that “the number of ​ ​ those who died in 2019 is virtually identical to the number who died in 2016” — when B.C. first declared a public health emergency in response to a rising number of overdose deaths. ○ While the number of overdose fatalities has decreased, emergency health services saw a similar amount of non-fatal overdose calls in 2019 as in previous years.

○ Lapointe was joined by provincial health officer Dr. Bonnie Henry and other ​ ​ public health officials in calling for the province to consider decriminalizing drug use and continue to invest in safe supply initiatives and treatment options to turn the tide on the public health emergency. ○ Mental Health and Addictions Minister said the drop in overdose ​ ​ fatalities is “very encouraging.” “Our government is committed now more than ​ ever to keep our foot firmly on the gas, to keep going and keep acting on what the evidence shows us is working,” she said, pointing to the NDP government’s investments in naloxone and additional treatment beds as well as increasing the availability of opioid agonist treatment. ○ Asked whether the B.C. government has been pushing Ottawa to consider decriminalization, Darcy said the feds have been “very clear they have no intention of moving on this issue” so the province has been “pushing the envelope within that federal framework.” The two levels of government will “be announcing greater resources to scale up safer medication assisted treatment for people most at risk of overdose … very soon,” per Darcy.

Question period On Monday, Liberal MLAs grilled the NDP government on its response to issues facing the oil and gas industry — once again taking aim at rookie MLA (North ​ ​ Vancouver—Lonsdale) — and fallout from the recent infrastructure blockades.

Where do you stand, premier? ● Liberal Finance critic asked Premier if his government ​ ​ ​ ​ shares Ma’s reaction to Teck’s decision not to proceed with its Frontier mine in Alberta. “This mine represents over 3,500 person-years of employment in ,” Bond said. “These are well-paying, family-supporting jobs in places like that vanished overnight.” ○ On Sunday, Ma retweeted former premier Christy Clark, who called Teck’s ​ ​ ​ ​ decision “a terrible turning point” for resource development in Canada. “No, this is the turning point we desperately need,” Ma opined.

● In his response, Horgan quoted from Teck CEO Don Lindsay’s “thoughtful letter” on his ​ ​ company’s decision. “I commend Mr. Lindsay for his long-sighted view on Frontier ... and I commend him also for keeping Teck's head office here and the many, many mines that keep people employed right across British Columbia,” he said.

● Bond then brought up Stand.earth — the company is currently looking to hire a senior climate campaigner in B.C. — and Environment and Climate Change Minister George ​ Heyman’s prior meetings with representatives from the organization. “It's his chance ​ today to stand up and unequivocally reject Stand.earth's American-led campaign to stop B.C. energy development,” Bond said.

● “I don't want to miss the opportunity to get up and participate in question period — it's one of the highlights of my day,” Horgan quipped in response. ○ He touted the NDP government’s work with various resource industry stakeholders while putting forward “the most aggressive climate plan in North America.”

Rail blockades impacting agriculture ● Liberal MLA Mike de Jong asked Agriculture Minister about the ​ ​ ​ ​ government’s plans to mitigate the impacts of recent rail blockades on B.C.’s agriculture sector.

● Popham said her ministry has been “in constant contact” with representatives from various agriculture industries in the province. “One conversation that we've been in contact with since the beginning is one of our chicken processors ... we have managed to find an alternative route to get chicken through to customers,” she said. “Those are conversations that we hope we'll have less of in the coming weeks.”

COVID-19: trade issue or health concern? ● When Liberal ICBC critic Jas Johal began his first question by mentioning the novel ​ ​ coronavirus and its impact on the B.C. economy, there was some confusion on the government benches as both Health Minister Adrian Dix and Minister of State for Trade ​ ​ rose to answer. ​ ○ Chow answered, telling Johal the province is working on diversifying its trading partners, but he did not really address the question.

● When Johal tried again, noting the severe impacts the spread of COVID-19 is having on international markets and asking “what specific steps the province has taken ... to ensure that British Columbia is protected from the pending fallout,” Dix rose to answer and extoll the virtue of the province’s public health response to the issue.

Where’s the tech investment? ● Green Party Interim Leader asked Jobs, Economic Development and ​ ​ Competitiveness Minister whether the $700-million tech sector ​ ​ investment noted in the government’s economic framework includes the province’s tax credits for the film industry.

● When Mungall rose to answer — after the premier answered questions from the Liberals directed her way earlier in QP — she was heckled by the Opposition for so long that Speaker Darryl Plecas eventually called for order. “Okay, back to question period,” he ​ ​ said when the house quieted. ○ Mungall professed pride in the province’s film industry tax credit program but did not answer Olsen’s question.

● “I'm troubled by the vagueness of the answer,” Olsen said as he tried again. “The question was provided in advance because we're looking for a very specific answer to this.” ○ Budget 2020 contains $637 million in various tax breaks for the film industry, according to Olsen, who again asked Mungall to confirm if the $700 million in the government’s economic framework includes those credits.

● This time, the Liberal heckling was louder. “Members, if you could at least wait till the minister opens her mouth,” Plecas suggested.

● “It's such an honour just to stand up and get heckled, really, it is,” Mungall said. “To answer the member's question, I want to highlight some of the things that we are doing to support the B.C. tech sector that would be involved in that $700 million.” ○ She did not answer Olsen’s question.