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Always good to be in the black: Bennett
By Ian Cobb/e-KNOW
Budget good; budget bad!
The provincial Liberal Party is touting the Feb. 16 budget as good news for the province, noting how British Columbia is the only province in Canada with a balanced budget and is close to being the only province in the country remaining with a Triple A credit rating (Alberta has lost its and Saskatchewan is under review.)
The Official Opposition NDP says Minister of Finance Michael de Jong’s balanced budget is on the backs of working British Columbians as the province’s top two per cent continue to enjoy tax breaks.
The BC Liberals, with 250 publicly-funded communications staff and millions of dollars to spend on advertising, will attempt to convince taxpayers that they have made the right choices in this year’s budget; but a quick look at the real numbers tells a much different story, says Columbia River-Revelstoke MLA Norm Macdonald.
“The actual budget documents for 2016-17 shows that the BC Liberals have little intention of addressing the needs of British Columbians, making life more affordable for families, or behaving responsibly in their management of our resources.
“For example, the BC Liberals are continuing with their $235 million tax cut to B.C.’s wealthiest two per cent. Instead of addressing the needs of those who can use the help most, we are giving a significant tax break to those who need it least,” he said.
“They’ve got their facts wrong. We have the lowest provincial income tax in Canada,” countered Kootenay East MLA Bill Bennett, explaining the budget includes $673 million for helping “the most vulnerable” in B.C., with $217 million set aside for vulnerable youth and families, $286 million for adults in need and $170 million toward programs helping persons with disabilities.
“To say we not helping people who need help is wrong and is pure politics,” he said.
A significant aspect of the budget that will be of interest to East Kootenay residents is a $36 million increase (province-wide) to the highways maintenance budget. With the East Kootenay highways contract coming up for bid, the only one in the province, and with “new and improved criteria for winter maintenance” included, improved service should result, Bennett said.
Another key part of the budget that could help the region is the addition of $355 million (over five years) for affordable housing.
“Cranbrook, in particular, has an affordable housing issue and social housing issue,” Bennett said, adding he intends to speak with all community groups working on housing in the city and will challenge them to “get together and we’ll try to access some of that money.”
Another aspect of note to East Kootenay residents, Bennett suggested, is a change to MSP premiums where “more will pay less and more will pay nothing.” For example, single parent families and single senior families could see up to $1,200 more a year.
The inclusion of $55 million for flood protection and mitigation in the budget could also mean good news for the region, Bennett said, pointing out the need for funds in the Elk Valley, Cranbrook and Kimberley.
Finance Minister de Jong said the province has a balanced budget because of B.C.’s “continued fiscal discipline and steady economic growth.
Budget 2016 invests $1.6 billion in new and increased spending over three years on core services in addition to annual three per cent increases in the health ministry budget, almost $500 million of which is funded by lower interest costs due to the retirement of operating debt, a Ministry of Finance press release stated.
“We’ve been following a prudent plan that includes a focus on paying down our direct operating debt, which is projected to be at its lowest point since 1984-85 if we stay on course. B.C. families know that working hard to pay off their credit card debt means they will save money on interest payments, and the same is true of government. A reduction in the operating debt means almost $500 million that would have gone to interest payments can instead be invested in priority programs for British Columbians,” de Jong said.
“With a track record of successive balanced budgets, B.C. remains in a fiscal position envied by many jurisdictions around the world. We are forecast to lead Canadian provinces in economic growth this year and are continuing to make fiscal decisions that further strengthen our economy, create jobs and make life more affordable for British Columbians.”
Macdonald argues the government’s claim that it is on the path to a debt-free B.C. is dubious because under Premier Christy Clark’s watch the debt has increased more than any other B.C. premier.
“In the last election, the BC Liberals claimed that the windfall from Liquefied Natural Gas (LNG) would build a Prosperity Fund, create 100,000 jobs, eliminate the provincial debt, and bring an end to provincial sales tax. But it takes only a cursory glance at the real projections for LNG to see that this was a fantasy, a fantasy that every BC Liberal MLA and candidate was willing to parrot,” he said.
The budget will include increased costs for people through Medical Services Plan (MSP) fees, BC Hydro rates, ICBC charges and park fees, an estimated average increase of $900 per family per year, Macdonald stated in a press release.
The budget will also leave public school and public health systems without the funding they require, he noted.
“Despite BC Liberals claims to have a plan for job creation, over a dozen mines in this province have closed and 2,280 mining jobs have been lost. Specific to this area, the closure of the mill in Canal Flats resulted in the loss of at least 150 jobs.
“This budget clearly does not address the issues that face the people I represent. For instance, the much needed Trans Canada Highway upgrade remains essentially unfunded, despite numerous announcements and promises that this was a priority for the government,” Macdonald said, concluding, “The people of Columbia River-Revelstoke deserve better; they deserve a government that actually listens to and cares about their priorities.”
A balanced budget and strong credit are something to celebrate, Bennett said. “If we had Ontario’s credit rating we’d be paying $2.45 billion more on interest. That’s $2.45 billion more to spend” on government services.
“Overall it ‘s pretty cool that B.C. is the only province in Canada balancing its budget. It’s the way you use a balanced budget that’s important,” said Bennett, B.C.’s Minister of Energy and Mines.
B.C.’s business community is reacting positively to the budget.
“While other provinces grapple with debt, deficits and economic uncertainty B.C. has balanced the budget for a fourth year in a row,” said Cranbrook Chamber of Commerce executive director David D. Hull. “This is the kind of certainty and stability that provides reassurance to the business community going forward.”
“While this budget is anything but flashy, the B.C. Chamber of Commerce (BCCC) is pleased the government heeded our advice and is implementing strong forward-looking initiatives, such as the Commission on Tax Competitiveness, which will give additional fiscal flexibility to deal with challenges facing business like tax competitiveness,” said Jon Garson, president and CEO of the BCCC. “This commission is timely because we need to start looking at broader tax reforms and not only further tax reductions.”
Hull agrees. “Keeping taxes competitive is crucial for businesses of all sizes in Cranbrook. Tax competitiveness will help business of all sizes and encourage expansion and investment,” he said.
