B.C. Today – Daily Report July 20, 2019

Quotation of the day

“There is one thing we all know for certain after watching the ​ spectacle this spring: many of the ’s political opponents don’t care about the facts, they’re just cheering for B.C. to fail.” ​

Despite much hand-wringing by critics this spring, housing starts in B.C. are on the rise and proof of the NDP government’s successful fiscal management, according to Will McMartin — a ​ ​ ​ ​ long-time B.C. political consultant previously affiliated with both the Conservative Party and the Social Credit Party.

Today in B.C.

The House is adjourned for the summer recess.

Committees this week

This is the last week of committee meetings before the summer break.

The Select Standing Committee on Finance and Government Services will meet on Wednesday to continue its in camera deliberations on input received during Budget 2020 consultations.

The Select Standing Committee on Parliamentary Reform, Ethical Conduct, Standing Orders and Private Bills will meet on Thursday for the first time since 2016. The committee is responsible for reviewing private bills and statutes as assigned by the Legislative Assembly, per the Statute Revision Act. ​ ​

On May 30, the assembly referred a revision of Chapter 492 of the Workers Compensation Act ​ ​ ​ to the committee for “review and recommendation” and asked for a report to be presented “as soon as possible” — most likely during the fall session. The committee’s current members are posted online. ​

The next committee meeting, per the parliamentary committees office, will be the Legislative Assembly Management Committee on September 19.

Alberta judge rejects B.C.’s challenge against ‘turn off the taps’ bill, citing lack of standing B.C.’s decision to file a suit against Alberta’s “turn off the taps” law in both provincial and federal court now seems prescient: an Alberta Court of Queen’s Bench judge threw out the provincial case Friday, saying B.C. has no standing to challenge the law in Alberta.

In a 12-page decision, Justice R.J. Hall said his decision does not mean Alberta’s law is ​ ​ protected under the constitution, only that Alberta’s Judicature Act only grants standing to ​ ​ Alberta or Canada attorneys general.

"Neither party could direct me to any cases in which one province has sued another province seeking a declaration of constitutional invalidity of legislation enacted by the defendant province," Hall wrote. "Federal court is the proper forum for this interprovincial dispute."

Attorney General said the province is still waiting to hear whether the federal court ​ ​ will hear its case.

"We ... look forward to the day that this legislation, which is unconstitutional and designed to punish people in B.C., is heard in court," he said, in an email to the Canadian Press. B.C.’s first ​ ​ attempt to challenge the bill was also thrown out by an Alberta judge because the legislation had not then been proclaimed. Alberta Premier Jason Kenney made proclaiming the law, ​ ​ previously Bill 12, one of his first orders of business after being sworn in as premier. ​ ​

In a statement, Alberta Energy Minister Sonya Savage said she was “pleased” with Justice ​ ​ Hall’s decision.

“We will continue to defend Alberta jobs and economic opportunity and look forward to making our case at the federal court,” Savage said.

National Energy Board greenlights Trans Mountain expansion construction There will be no need to rehash decisions or review permits for most sections of the Trans Mountain pipeline expansion ahead of construction, according to the National Energy Board ​ ​ (NEB).

Only areas where “relevant circumstances have materially changed” since last summer, when ​ the Federal Court of Appeal overturned Ottawa’s previous approval of the project, will be reviewed.

Prior to the court ruling, the NEB had approved 73 per cent of the pipeline’s route and 64 of the 98 pre-construction conditions placed on the project had been met.

While most construction orders remain valid, the detailed route for the expansion has not yet been settled. Going forward, Trans Mountain Corp. will be required to issue notices to landowners along the entire route — including those previously notified — and publish notices in local newspapers. The NEB will be responsible for notifying Indigenous groups potentially affected by the detailed route approval process.

Landowners and First Nations with concerns about the expansion route can still file a Statement ​ of Opposition with the NEB, which could trigger a new hearing. ​

While at least one contractor involved in construction has begun hiring workers, the reapproved ​ ​ project still faces legal challenges. Earlier this month, several B.C. First Nations — including the ​ Tsleil-Waututh and Squamish Nations — filed challenges against the project, alleging “multiple ​ ​ significant legal deficiencies” with its reapproval and that consultations with First Nations were inadequate. “Tsleil-Waututh Nation participated in consultation in good faith again, but it was clear that Canada had already made up their mind as the owners of the project,” Chief Leah ​ George-Wilson said. “They repeated many of the same mistakes again, and any changes were ​ window dressing.”

Another challenge was filed by Ecojustice on behalf of the Raincoast Conservation Foundation ​ and the Living Oceans Society in the Federal Court of Appeal. It alleges that Ottawa failed to fulfil its responsibility to protect endangered southern resident killer whales when it reapproved the project.

Today’s events

July 22 at 11 a.m. – Grand Forks ​

Children and Family Development Minister will join the Circle of Indigenous ​ ​ Nations Society and community members at Grand Forks Secondary School for a ceremony to honour the land and give an update on a program that is bringing early learning and child care to Indigenous families throughout B.C.

July 22 at 1:30 p.m. – Surrey ​ Jobs, Trade and Technology Minister , who represents Surrey—Whalley, will join ​ ​ Elders, staff and children at the Awahsuk Aboriginal Headstart Preschool. He will also discuss the Indigenous child care and early learning program.

July 22 at 2 p.m. – Williams Lake ​ Citizens' Services Minister will be joined by Williams Lake Indian Band Chief Willie ​ ​ ​ Sellars and representatives from Telus at the Williams Lake Indian Band office for an ​ announcement regarding Indigenous connectivity.

Upcoming events

July 24 - August 14 The Ministry of Forests, Lands, Natural Resource Operations and Rural Development will hold a series of policy engagement seminars in the Skeena and Cariboo regions to gather input on the ​ ​ Interior Forest Sector Renewal. ​

July 29 at 5:45 p.m. – Kitimat ​ Liberal Party Leader and his caucus will join MLA (Skeena) for ​ ​ ​ ​ “an evening meet and greet with appetizers and a no-host bar” at the Hirsch Creek Golf and ​ Winter Club.

Topics of conversation

● The government’s reported $1.5-billion surplus for the 2018-19 fiscal year should be nearly five times bigger, according to Auditor General Carol Bellringer. The auditor ​ ​ ​ ​ general’s office “continues to differ with government on how it records revenue that it ​ receives primarily from the federal government” in a way that “continues to defy independent accounting standards” by recording revenues over longer periods than are generally accepted. “These revenues have been under-reported and cloud the province's true financial position,” per a release from the auditor general’s office. “As of March 31, 2019, government has deferred $5.7 billion in revenue over the years.” That would bring the surplus for the last fiscal year to $7.2 billion. ○ The way the B.C. government defers revenue “is only appropriate in circumstances where the funding meets the definition of a liability” according to the accounting standards generally used in the public sector in Canada, Bellringer said.

○ This revenue reporting quirk, which has been used since 2011, is the only issue on which Bellringer placed a qualification to the province’s financial statements this year — the eighth consecutive year she has acted as the provincial auditor.

● The NDP government should be spending a chunk of its sizeable surplus to help forestry-dependent communities weather the spate of mill closures and curtailments still mounting across the province, according to B.C. Liberal Forests critic . “I ​ ​ ​ can’t understand why there is still no response from the province and a premier who seems content to just sit by and watch this happen,” Rustad said in response to Canfor’s decision to immediately and indefinitely close its Mackenzie sawmill and reduce shifts at ​ its Isle Pierre sawmill. “The government posted a $1.5 billion surplus yesterday and has the resources and capability to implement a full recovery plan for the forestry sector and yet we see nothing.” ○ Combined, the closure and curtailment are expected to impact about 320 workers. “Mackenzie wears the scars of previous mill closures and deserves the full assistance from government as it weathers storms of another downturn in forestry,” said Liberal MLA , who represents the affected ​ ​ communities.

● Last month, the Canada Mortgage and Housing Corporation reported that annualized housing starts in B.C. could top 62,000 this year, up from an April estimate of 51,000 and February’s estimate of 34,000. In an op-ed for The Tyee, long-time B.C. Conservative ​ ​ ​ ​ and SoCred political consultant Will McMartin marvels that many of the voices that ​ ​ decried the dip in housing starts as proof of impending economic implosion have now ​ fallen silent or are “willfully ignor[ing] B.C.’s upward explosion in construction activity.”

● The Heiltsuk Nation has launched an advertising campaign targeting Kirby Corp. in its ​ ​ home state of Texas over the 2016 fuel spill for which the company was fined a total of $2.9 million by a B.C. court last week. “Does Kirby care?” is the question the print and ​ social media campaign asks. ○ “We both know this sentence does not represent true justice,” Heiltsuk Chief Marilyn Slett wrote in an open letter to the company after the fine was handed ​ down. “True justice would mean paying for an environmental impact assessment, admitting civil liability, and working openly and honestly to address compensation and remediation for the harm caused by the spill.”

● “When will B.C. modernize its mining laws?” asks Kootenai Valley Trout Club president Mike Rooney in an open letter published in the Flathead Beacon. The province is ​ ​ ​ ​ ​ “reaping all the rewards of mining while damaging or threatening downstream U.S. interests,” Rooney says, pointing to Teck Resources’ five mountaintop removal ​ coalmines in B.C., which have polluted the Elk River — a major tributary of the ​ ​ Kootenay/Kootenai River, which flows through Idaho and Montana — with selenium.

○ In June, eight senators — representing the states of Montana, Idaho, Washington and Alaska — sent a letter to Premier , asking him to work with the ​ ​ states and the Canadian government to better protect the environment from the impacts of mining.

News briefs - Governmental

Ministry of Energy, Mines and Petroleum Resources In February, the first phase of the energy ministry’s internal review of B.C. Hydro resulted in a ​ ​ $1.1-billion write-down that closed the Crown corporation’s rate-smoothing regulatory account, ​ as well as a new rate forecast and new oversight powers for the B.C. Utilities Commission (BCUC).

The ministry has now launched the second phase of its review of the provincial utility, this one ​ ​ ​ ​ focused on ensuring B.C. Hydro can fulfill its part in meeting CleanBC’s electrification and ​ emission reduction targets.

Over the next few months, the ministry will work with “energy industry experts with extensive experience in North American utility operation, regulation and electricity markets,” alongside B.C. Hydro and the Ministry of Environment and Climate Change Strategy. An interim report will be available “before the end of this year” with a final report to be completed early in 2020.

Liberal Party reaction According to Liberal B.C. Hydro critic , the first phase of the B.C. Hydro review was ​ ​ “an attack on clean energy producers,” who deserve clarity on the government’s evolving position on small-scale energy production.

“Thanks to John Horgan’s flip-flop on Site C, our province has some breathing room as we ​ ​ transition to electric vehicles,” concluded Kyllo. “But [this] announcement shows NDP hypocrisy isn’t going away anytime soon. They dismissed independent power producers but now acknowledge the need for more electricity. As electrification accelerates, we risk having to rely on coal power from the United States without added capacity here at home.”

Following the first phase of the review, the NDP government suspended B.C. Hydro’s Standing ​ ​ Offer Program, introduced in 2007 to spur power purchases from private power producers. ​ Energy Minister said the program amounted to “a sweetheart deal” for select ​ ​ power producers while ratepayers “overpaid billions of dollars for power.”

The report on which Mungall based her decision to axe the Standing Offer Program is ​ ​ “thoroughly debunked and embarrassing,” according to Kyllo. ​

Ministry of Labour

As of October 1, recruiters who help bring foreign workers to B.C. will have to obtain a licence. Labour Minister announced the new licensing regime on Friday. ​ ​ ​ ​ ​ ​

"Workers coming to a new country must be confident that their rights are protected and that abusive recruiters will be held accountable,” Bains said. "Licensing will help regulate the recruiting industry in B.C. and will ensure a level playing field for those recruiters who treat workers fairly."

All recruiting companies operating in B.C. — even those whose main operations are outside the province — will be required to obtain licences for individual recruiters and submit a security bond of $20,000 that will be held in trust. Those found to be operating without a licence could face a fine of up to $50,000, a year-long jail sentence or both.

The licensing regime, which is the first phase of bringing the Temporary Foreign Worker ​ Protection Act into force, will be overseen by a new unit within the Employment Standards ​ Branch.

The second phase of realizing the law will involve a new registration requirement for employers who hire temporary foreign workers and will be rolled out later this year, according to the ministry.

Ministry of Attorney General The limits to how much alcohol British Columbians can bring home after visiting other provinces are a thing of the past. Prior to July 8, 2019, B.C. residents could return home with no more than ​ three litres of spirits, nine litres of wine and 25.6 litres of beer, cider and coolers — although there was no limit on wine purchased from a Canadian winery and made from 100 per cent Canadian product.

Those restrictions were lifted “following a commitment made by Premier John Horgan at the ​ ​ premiers' 2018 summer meetings,” according to a release from the attorney general’s ministry; Saskatchewan and Nova Scotia have also abolished personal limits on interprovincial alcohol purchases, and Prince Edward Island has promised to do the same.

Funding announcements

● Work on a new Quesnel Junior School (QJS) will begin next summer. The Ministry of ​ ​ ​ Education is providing up to $52.2 million to replace QJS with a new facility at the site of ​ ​ ​ the current Maple Drive Junior Secondary school. The Quesnel School District is ​ ​ contributing $150,000 toward the project, which also includes the addition of a new neighbourhood learning centre that will provide child care and other local community programming. The first major school capital project in the district in more than 20 years, the new school is expected to be ready for students by September 2022.

● Tourism, Arts and Culture Minister celebrated Parks Day last week by ​ ​ announcing upgrades at two B.C. Parks. Cultus Lake Provincial Park now has 25 new ​ ​ ​ ​ cabins while Mt. Robson Provincial Park has 22 electric campsites featuring electric ​ ​ vehicle charging stations.

● The $96-million McKenzie Interchange Project is chugging along: the concrete box ​ ​ beams that will eventually support the Highway 1 underpass were put in place over the weekend. The concrete beams each weigh between 52 and 62 tonnes, depending on length. The project is expected to be complete by summer 2020. ​ ​

Can’t get enough of B.C. politics? Listen to this week’s episode of PolitiCoast on the ​ ​ Cascadia high-speed rail proposal.