No. 31 VOTES AND PROCEEDINGS OF THE Legislative Assembly of British Columbia

Wednesday, May 25, 2011

One-Thirty o’clock p.m.

Prayers by Mr. Donaldson.

Order called for “Members’ Statements.”

Order called for “Oral Questions by Members.”

The Hon. B. Penner (Attorney General) tabled the following documents:

Government Response to the Final Report of the 2010 British Columbia Judges Compensation Commission, May 2011; and,

Government Response to the 2010 British Columbia Judicial Justices of the Peace Compensation Commission Report and Recommendations, May 2011.

The House proceeded to “Orders of the Day.”

Order called for Committee of Supply.

Pursuant to Sessional Order, order called for Section A and Section B of Committee of Supply.

(In Committee — Section B)


Section B of Committee of Supply reported progress of the estimates of the Ministry of Health.

Report to be considered at the next sitting.

Committee to sit again at the next sitting.

(In Committee — Section A)

21. Resolved, That a sum not exceeding $243,265,000 be granted to Her Majesty to defray the expenses of Ministry of Community, Sport and Cultural Development, Ministry Operations, to 31st March, 2012.


Section A of Committee of Supply reported the Resolution and completion of the estimates of the Ministry of Community, Sport and Cultural Development.

Report to be considered at the next sitting.

Committee to sit again at the next sitting.

By agreement, summary of debate of estimates passed in Section A (Ministry of Community, Sport and Cultural Development) to be considered at the next sitting.

And then the House adjourned at 6.58 p.m.

HON. BILL BARISOFF, Speaker

NOTICE OF BILLS

Thursday, May 26

Mr. Sather to introduce a Bill intituled Fair Chase Act.

Monday, May 30

Mr. Sultan to introduce a Bill intituled Family Compensation Act Amendment Act, 2011.

Mr. Sultan to introduce a Bill intituled Limitation Act Amendment Act, 2011.

Mr. Fleming to introduce a Bill intituled Species at Risk Protection Act, 2011.

NOTICE OF MOTIONS

Thursday, May 26

7  Mr. B. Simpson to move —

Be it resolved that this House recognize the need to consider the cumulative impact of the expansion of oil and gas production in the Northeast of British Columbia on public health and safety, provincial greenhouse gas emissions, landuse management, and watersheds.

8  Ms. Huntington to move —

Be it resolved that this House establish a Special Committee to examine questions and concerns related to the expansion of unconventional gas production in British Columbia and the use of hydraulic fracturing technology.

Monday, May 30

9  The Hon. B. Penner to move —

That pursuant to section 6(2) of the Judicial Compensation Act the Legislative Assembly reject seven of the fifteen recommendations of the Final Report of the 2010 British Columbia Judges Compensation Commission as laid before this Assembly on May 3, 2011, as unfair and unreasonable for the reasons outlined in the Government Response to the Report of the 2010 Judges Compensation Commission filed in this House today:

1. The recommended salary increase for April 1, 2013 to March 31, 2014 of an amount based on the cumulative change in the British Columbia Consumer Price Index (the “BC-CPI”) over the preceding three-year period is rejected. The salary increase for April 1, 2013 to March 31, 2014 is set at zero.

2. The recommended increase in the pension accrual rate for judges from 3% to 3.5% effective April 1, 2013 is rejected. The pension accrual rate is set at 3%.

3. The recommended increase in the pension contribution period for judges from age 71 to age 75 effective April 1, 2011 is rejected. The end of the pension contribution period is set at age 71.

4. The recommendation that the cost of long-term disability benefits be separately funded by government outside of the budget of the Office of the Chief Judge is rejected. The method for budgeting the cost of long-term disability benefits will remain within the budget of the Office of the Chief Judge.

5. The recommendation that long-term disability benefits be extended to judges to age 75, effective April 1, 2011 is rejected but in substitution the long term disability benefits to judges will be extended to age 75 commencing on April 1, 2013.

6. The recommendation that judges be enrolled in the government flexible benefits plan, effective April 1, 2011 is rejected but in substitution the judges will be enrolled in the government flexible benefits plan, commencing April 1, 2013.

7. The recommendation that, effective April 1, 2011, the Senior Judges Program be expanded by an amendment to the Judicial Compensation Act is rejected. The recommendation to increase the possible number of sitting days for senior part-time judges at the discretion of the Chief Judge, with a three-year “sunset clause” is rejected. The following recommendation is substituted:

a. the Legislative Assembly accepts in principle that part-time judges should be permitted to exceed the existing remuneration caps but recognizes this requires legislative amendment at a future sitting and is outside the scope of the Judges Compensation Commission;

b. the Legislative Assembly recommends that the remuneration caps limiting a senior part-time judge’s salary to no more than 40% of the salary of a full-time sitting judge and the combination of salary and pension benefits to no more than 100% of the salary of a full-time sitting judge be removed;

c. the Legislative Assembly recommends that a future legislative amendment should allow the Chief Judge, using discretion and if adequate budgetary resources exist, to authorize one or more part-time judges to provide coverage to meet urgent and unforeseen needs resulting from illness or injury; and

d. the Legislative Assembly also accepts that these changes should be reviewed after three years.

That the Legislative Assembly accept the remaining recommendations contained in the report.

10  The Hon. B. Penner to move —

That pursuant to section 6(2) of the Judicial Compensation Act the Legislative Assembly reject six out of the ten recommendations of the Report and Recommendations of the 2010 British Columbia Judicial Justices Compensation Commission as laid before this Assembly on May 3, 2011, as unfair and unreasonable for the reasons outlined in Government Response to the Report of the 2010 Judicial Justices Compensation Commission filed in this House today:

1. The recommended salary increase for full-time JJPs for April 1, 2013 to March 31, 2014 of 8% is rejected as unreasonable and unfair. The salary increase for April 1, 2013 to March 31, 2014 is set at zero.

2. The recommendation amending the compensation formula for per diem JJPs is rejected. The compensation formula for per diem JJPs will remain unchanged.

3. The recommendation that the compensation formula for per diem JJPs should be applied equally to ad hoc JJPs is rejected. The compensation formula for ad hoc JJPs will remain unchanged.

4. The recommended increase in the professional development allowance from $1,000 to $1,500 effective April 1, 2011 is rejected. The allowance will remain at $1,000.

5. The recommended extension of the professional development allowance to per diem and ad hoc JJPs is rejected as unfair and unreasonable. The allowance will continue to be available to full-time JJPs only.

6. The recommendation to enrol full-time JJPs in the flexible benefits program, effective April 1, 2011 is rejected but in substitution full-time JJPs will be enrolled in the flexible benefits program commencing April 1, 2013.

That the Legislative Assembly accepts the remaining recommendations contained in the report.

11  The Hon. K. Falcon to move —

That the Legislative Assembly authorizes and directs that the Minister of Finance must act as follows:

(a) In relation to the Comprehensive Integrated Tax Coordination Agreement entered into between British Columbia and Canada on November 30, 2009, further amended on March 2, 2010, to authorize Canada to introduce a Harmonized Sales Tax (HST) in British Columbia effective July 1, 2010, of which the provincial portion of that rate is 7%, the Minister of Finance must:

(i) immediately advise the Minister of Finance for the Government of Canada that, in the case that the Chief Electoral Officer announces that the result of the Harmonized Sales Tax referendum held under the Referendum Act commencing June 13, 2011 is that more than 50% of the validly cast ballots vote “No” on the question, then the desire of British Columbia is to amend the provincial portion of the HST rate in British Columbia to the following:

(A) 6% effective July 1, 2012; and

(B) 5% effective July 1, 2014.

(ii) seek to conclude arrangements with the Government of Canada that reflect the conditions and rates in section (a) of this motion as soon as possible.

(b) If the Chief Electoral Officer announces that the result of the Harmonized Sales Tax referendum is that more than 50% of the validly cast ballots vote “No” on the question, the Minister of Finance must do the following:

(i) introduce by the end of the 2011 calendar year, or as soon as possible thereafter, measures in cooperation with the Government of Canada, that will result in one-time transitional assistance payments being made to British Columbians as follows:

(A) $175.00 for each child under the age of 18 years;

(B) $175.00 for each single senior person with an annual income up to $40,000.00, the benefit being gradually phased out at annual incomes over $40,000.00; and

(C) $350.00 for each senior couple with an annual family income up to $40,000.00, the benefit being gradually phased out at annual incomes over $40,000.00.

The Minister of Finance shall use existing appropriations within Budget 2011 to finance such transition payments in section (b)(i)(A),(B) and (C).

(ii) Prepare and introduce to the Legislative Assembly for approval, a bill to amend the Income Tax Act that would increase the provincial corporation income tax rate to 12%, from 10%, effective January 1, 2012.

(iii) Delay the introduction of the planned change referred to in the 2011 Budget speech to reduce the small business income tax rate from 2.5% to 0% on April 1, 2012.

12  Mr. Sultan to move —

Be it resolved that this House supports the efforts of our federally-qualified marine contractors in acquiring contracts for building large vessels for the Canadian Navy and Coast Guard, recognizing that capitalizing on the $33 billion National Ship Procurement Strategy will expand British Columbia’s economy and shipbuilding expertise.

13  Mr. B. Simpson to move —

That the Standing Orders of the Legislative Assembly of British Columbia be amended as follows:

1. Section 60A be amended by striking out:“Select Standing Committee” wherever it appears and substituting “Standing Committee”

2. Section 68 be amended by deleting Standing Order 68 and substituting the following:

68 (1) At the commencement of the first Session of Parliament a Committee of Selection shall be appointed without notice, whose duty it shall be to prepare and report, with all convenient speed, lists of Members to compose the following Standing Committees of the House:

1. Aboriginal Affairs;

2. Education;

3. Finance and Government Services;

4. Health;

5. Public Accounts;

6. Parliamentary Reform, Ethical Conduct, Standing Orders and Private Bills;

7. Crown Corporations;

8. Legislative Initiatives;

9. Children and Youth;

10. Natural Resources and Environment.

List of Committees to be posted.

(2) The Clerk of the House shall post a list of the Standing Committees and Special Committees appointed during the Parliament.

3. Section 69, 70, 71, 78A, 80, 105 be amended by striking out “Select Standing” wherever it appears and substituting “Standing”

14  Ms. MacDiarmid to move —

Be it resolved that this House recognize the positive results that have arisen from government’s investment in a multi-faceted approach to reducing street homelessness, so that British Columbia’s most vulnerable citizens have access to stable and secure shelter and housing.

NOTICE OF QUESTIONS

Thursday, May 26

2  Mr. B. Simpson to ask the Hon. Minister of Energy and Mines the following questions:

1. When the greenhouse gas emissions associated with producing, processing and later combusting unconventional gas are considered, how “green” is this energy source compared to other fossil fuels?

2. In the face of historic low prices for natural gas, should B.C. be accelerating the extraction of this resource through provincial subsidies to the industry?

3. If unconventional gas extraction continues in British Columbia should:

• a fair market price be placed on water utilized for this purpose?

• the chemicals used in hydraulic fracturing be more regulated and publicly reported?

• the structure of the energy industry regulator – the Oil and Gas Commission – be changed to better address and monitor the industry’s cumulative impacts on public health and safety, water and land resources, and climate?

• the regulations governing the sector be more prescriptive to ensure public health and the environment are protected?

4. Are government, the OGC, and industry meeting their legal requirements to consult with First Nations and the spirit and intent of the New Relationship with respect to joint decision-making and revenue sharing?

Unconventional Gas – Impacts on Climate and Energy Security

5. What are the total greenhouse gas emissions associated with the extraction and processing of unconventional gas?

6. What may be the additional greenhouse gas emissions associated with more advanced treatment or conversion of natural gas to products such as liquid fuels (diesel, naphtha and propane) or liquid natural gas?

7. Can British Columbia meet its greenhouse gas emissions reduction targets when anticipated unconventional gas development is fully accounted for? If this is not achievable at present, what changes to the way development occurs, and the scale of development, would have to happen to enable B.C. to meet its targets? What public policy approaches could B.C. employ to allow those changes to happen?

8. From a domestic energy security perspective, how much natural gas should B.C. be exporting and over what time period?

9. What revenue streams should British Columbians and First Nations reasonably expect to see from increased unconventional gas production in the province?

3  Ms. Huntington to ask the Hon. Minister of Energy and Mines the following questions:

Unconventional Gas – Impacts on Public Health and Safety

1. Can hydraulic fracturing of gas-bearing shale formations result in groundwater and surface water contamination – waters that may also be drinking water sources? What can be done to reduce such outcomes?

2. In jurisdictions that use multi-well hydraulic fracturing techniques is there evidence of uncontrolled gas leaks? What are the consequences and can the risk of such outcomes be reduced?

3. At what proximity to human settlement may hydraulically fractured gas wells pose an unnecessary risk?

4. What risks are there when contaminants move between hydraulically fractured gas wells in events known as “communications” or “kicks”? At what point may gas wells exceed densities that place human health and public safety at unnecessary risk?

5. Do the chemicals used in hydraulic fracturing operations pose a public health and safety risk? Should they be publicly disclosed?

6. What are the health impacts associated with chronic exposures to low levels of sweet gas and sour gas? What must the province do to eliminate fugitive emissions and reduce flaring to an absolute minimum?

7. What plans does the Oil and Gas Commission have to work with public health officials and the local communities to ensure that industry developments are located and staged in a manner that poses the least risk to human populations?

8. What plans are there to project forward the number of unconventional gas wells that may be drilled in the province and to ensure that the cumulative development of wells does not endanger the health and safety of the general public and First Nations communities or the environment?

Unconventional Gas – Impacts on Water and Land

9. How many unconventional gas wells are projected in British Columbia?

10. What will the associated water demand be?

11. What water conservation policies are presently in place?

12. What regulations and market measures, such as water pricing, might be sound public policy choices to maximize water conservation by the industry?

13. What role does the Oil and Gas Commission play in assigning water rights to the gas industry? What role do provincial water stewardship officials with the Ministry of Forests, Lands and Natural Resource Operations play in assigning such rights? How do both agencies cooperate to ensure that: all water assignments are known, the actual water used by the industry is tracked, all wastewater produced by the industry is accounted for and its disposal methods and disposal sites are approved?

14. What cumulative impact assessments are there to ensure that industry water use is sustainable and poses no threat to watersheds? (Areas in northeast B.C. have already been identified by the provincial Forest Practices Board as being heavily impacted by a combination of oil and gas industry, forestry and cattle-grazing activities.)

15. Will the Water Act Modernization process ensure sustainable water use in the shale gas industry?

16. Under what circumstances may industry water applications be subject to an environmental assessment process? Should water applications exceeding a certain threshold be subject to such assessments?

17. Can unconventional gas developments be staged to reduce environmental impacts on lands and waters?