Report on the Budget 2015 Consultations

First Report

The Legislative Assembly of British Columbia

Report on the Budget 2015 Consultations

Select Standing Committee on
Finance and Government Services

First Report

3rd Session, 40th Parliament

November 13, 2014

Table of Contents

Composition of the Committee

Terms of Reference

Executive Summary

Budget 2015 Consultation Process

Budget Consultation Paper

Consultation Methods

Meetings Schedule

Fiscal Policy and Taxation

Recommendations

Natural Resources

Recommendations

Health

Recommendations

Education

K-12

Post-secondary

Recommendations

Community and Social Services

Recommendations

Transportation, Technology, and Environment

Recommendations

Summary of Recommendations

Appendix A: Public Hearing Witnesses

Appendix B: Written, Video, and Audio Submissions

Appendix C: Online Survey Respondents

 

November 13, 2014

To the Honourable
Legislative Assembly of the
Province of British Columbia

Honourable Members:

I have the honour to present herewith the First Report of the Select Standing Committee on Finance and Government Services for the Third Session of the 40th Parliament.

The Report covers the work of the Committee in regard to the Budget 2015 consultations, and was approved unanimously by the Committee.

Respectfully submitted on behalf of the Committee,

Dan Ashton, MLA
Chair

MEMBERS

*Committee member from September 5, 2014

**Committee member to September 5, 2014

Clerk to the Committee
Susan Sourial, Committee Clerk

Research Staff
Byron Plant, Committee Research Analyst
Aaron Ellingsen and Gordon Robinson, Committee Researchers

On February 25, 2014 and October 6, 2014, the Legislative Assembly agreed that the Select Standing Committee on Finance and Government Services be empowered:

1. To examine, inquire into and make recommendations with respect to the budget consultation paper prepared by the Minister of Finance in accordance with section 2 of the Budget Transparency and Accountability Act and, in particular, to:
   1. Conduct public consultations across British Columbia on proposals and recommendations regarding the provincial budget and fiscal policy for the coming fiscal year by any means the committee considers appropriate, including but not limited to public meetings, telephone and electronic means;
   2. Prepare a report no later than November 15, 2014 on the results of those consultations.

In addition to the powers previously conferred upon the Select Standing Committee on Finance and Government Services, the committee shall be empowered:

1. to appoint of their number one or more subcommittees and to refer to such subcommittees any of the matters referred to the Committee;
2. to sit during a period in which the House is adjourned, during the recess after prorogation until the next following Session and during any sitting of the House;
3. to adjourn from place to place as may be convenient; and
4. to retain personnel as required to assist the Committee,

and shall report to the House as soon as possible, or following any adjournment, or at the next following Session, as the case may be; to deposit the original of its reports with the Clerk of the Legislative Assembly during a period of adjournment and upon resumption of the sittings of the House, the Chair shall present all reports to the Legislative Assembly.

This year’s public consultations on the provincial budget began on September 9, 2014 with the release of “Budget Consultation Paper 2015: Successive Balanced Budgets” by the Minister of Finance. Over an approximately six-week period, the Select Standing Committee on Finance and Government Services (the Committee) held public hearings in 16 BC communities, and videoconference sessions covering an additional four locations. The Committee also invited written, video, and audio submissions, as well as responses to an online survey. In total, 1,782 submissions were received by the October 17, 2014 deadline for public input.

This report summarizes key themes from the consultations, and makes 58 recommendations for the provincial government to consider for Budget 2015. In keeping with the theme of the budget consultation paper, the recommendations strike a balance between revenue generation and program spending, while proposing new expenditures in high priority areas. All of the recommendations were unanimously agreed to by Committee members.

Recommendations in the area of fiscal policy and taxation affirm the overall goal of balanced budgets, and include ways to support BC businesses and generate additional government revenues through taxation improvements. The section on natural resource development proposes measures to promote and enhance BC’s natural resource industries, while creating sustainable communities in regions affected by resource development.

Several recommendations are made in the areas of health and education, the two largest areas of public expenditure. They include proposals to expand health care services and build on best practices to improve the health of British Columbians, particularly underserved populations. K-12 and post-secondary recommendations offer suggestions on how to enhance educational outcomes and address institutional needs, while ensuring that students are being prepared for future job opportunities.

On community and social services, the Committee makes recommendations to assist BC families and to target resources towards the most vulnerable. Proposals are also made to support community-based service providers and arts and culture groups, whose submissions demonstrated the important social and economic benefits that these services bring to BC communities.

The last section, transportation, technology, and environment, contains recommendations to enhance provincial infrastructure in accordance with social, economic, and regional priorities. Suggestions are also made to promote BC’s technology sector, and to renew efforts to promote clean energy, address climate change, and protect the environment.

Section 2 of the Budget Transparency and Accountability Act requires the Minister of Finance to make public a budget consultation paper by September 15 each year. The paper must include a fiscal forecast, key issues to be addressed in the next provincial budget, and information on how members of the public may provide their views on those issues. Upon its release, the paper stands referred to the Select Standing Committee on Finance and Government Services. The Committee then conducts consultations as it considers appropriate and must make public a report on the results of those consultations by November 15.

Budget Consultation Paper

Released on September 9, 2014, this year's paper, "Budget Consultation Paper 2015: Successive Balanced Budgets" stated that balanced budgets have been forecast for all three years of the current fiscal plan. The paper described how, despite successive forecast surpluses, government must continue to exercise fiscal discipline and maintain its commitment to BC taxpayers to not spend more money than it collects. The province's triple-A credit rating, tax competitiveness, job creation, and health and education outcomes were also discussed. The paper invited British Columbians to participate in the consultations by ranking responses to four questions. The questions and a tally of responses are presented on pages 4 and 5.

Finance Minister's Briefing

The Finance Minister appeared before the Committee on September 15, 2014, to discuss the budget consultation paper and first quarterly report for 2014/15. During the presentation, the Finance Minister stated that the budget for 2014/15 is forecast to have a surplus of $226 million, an increase over the $184 million surplus projected in February. The fiscal plan also includes $350 million in statutorily-required spending as a result of forest fire suppression. Committee members heard how BC's debt as a percentage of GDP has decreased, and that the provincial debt is $700 million less than originally anticipated.

On the provincial economic outlook, the Finance Minister reported that BC's real GDP is projected to be 0.1 percent less than that projected in February. Job growth is also forecast to increase by 0.5 percent in 2014. The Finance Minister concluded the presentation with a discussion of other key economic indicators.

Consultation Methods

Several methods were used to collect public input on the budget, including community public hearings, written, audio, and video submissions, and an online survey. A Committee webpage (http://www.leg.bc.ca/cmt/finance) was launched for the consultations, and information on how to participate was publicized a number of different ways.

On August 25, 2014, a province-wide news release was issued announcing the Committee's consultation plans and the locations of the public hearings. Newspaper advertisements were also placed in major provincial and community newspapers. A second province-wide news release was distributed on September 15, 2014 announcing the start of the consultations and how to participate.

The work of the Committee was also promoted through social media. Regular updates and announcements of Committee activities were posted through Facebook and Twitter. Facebook advertisements were also used to invite submissions and to increase public awareness of the consultations.

Public Hearing Presentations

During the consultation period, the Committee held 16 public hearings in communities across the province. In addition, one video conference meeting was held in Victoria to hear presentations from four additional communities. In total, the Committee heard 220 oral presentations from individuals and a range of organizations representing business, industry, community service providers, local government, labour, and other sectors. All of the presenters are listed in Appendix A.

Written, Video, and Audio Submissions

Over the course of the consultations, 298 written submissions were received through the online submission form on the Committee's website, by lettermail, and by fax. Twenty video and audio submissions were also received. The names of all individuals and organizations that made a written, video, or audio submission are listed in Appendix B.

Online Survey Responses

A total of 1,264 individuals and organizations completed the online survey containing questions from the budget consultation paper. All of the survey participants are listed in Appendix C.

The budget consultation paper asked British Columbians to rank responses to four questions in order of priority. The questions and tally of responses are provided below:

1. What is the best way to maintain a balanced budget:
   
   

   	1st Priority	2nd Priority	3rd Priority
   Reduce spending	179	293	808
   Increase revenue through taxes	909	187	184
   Maintain current balance	193	799	288

   
   
2. What program and spending areas are most important to you:
   
   

   	1st Priority	2nd Priority	3rd Priority	4th Priority	5th Priority
   Health care	251	815	175	31	8
   K-12 and post-secondary education	923	241	52	41	23
   Income assistance and community social services	57	127	700	223	173
   Natural resources and economic development	30	38	179	371	662
   Developing infrastructure	19	59	174	613	415

   
   
3. If demand for public services grows government should:
   
   

   	1st Priority	2nd Priority	3rd Priority	4th Priority
   Raise taxes	782	198	161	139
   Remove barriers and provide support to boost economic opportunities	261	398	381	240
   Increase user fees and licences	137	487	439	217
   No need to find more revenue because the budget is balanced	99	196	298	687

   
   
4. Taxpayer-supported infrastructure spending on hospitals, schools, post-secondary facilities, transit and roads will total $11.4 billion over three years, financed by $7.2 billion in provincial borrowing with the remainder funded by partners such as the federal government. Budget surpluses are used to reduce new borrowing needs. Which statement do you agree with the most:
   
   

   	1st Priority	2nd Priority	3rd Priority	4th Priority	5th Priority
   It is important to build needed infrastructure, regardless of how much we need to borrow	316	302	323	225	114
   It is important to build needed infrastructure, but we need to limit our borrowing and keep debt affordable	544	408	275	49	4
   The government should not borrow any money; instead I am willing to pay higher taxes to build needed infrastructure	327	378	394	110	71
   The government should not borrow any money; instead I am willing to postpone or cancel needed infrastructure	79	151	227	764	59
   The government should not borrow any money; instead it should cut programs and services to fund needed infrastructure	14	39	59	132	1,036

Meetings Schedule

Date	Type	Location
April 10, 2014	Organizational Meeting	Victoria
May 29, 2014	Organizational Meeting	Victoria
September 15, 2014	Minister’s Briefing Public Hearing	Victoria
September 16, 2014	Public Hearings	Prince Rupert Terrace
September 17, 2014	Public Hearings	Fort St. John Prince George
September 18, 2014	Public Hearing	Vancouver
September 22, 2014	Public Hearing	Whistler
September 29, 2014	Public Hearing	Cranbrook
September 30, 2014	Public Hearings	Kelowna Kamloops
October 1, 2014	Public Hearings	Williams Lake Campbell River
October 2, 2014	Public Hearing	Courtenay
October 8, 2014	Video conference hearing (Castlegar, Dawson Creek, Quesnel, and Smithers)	Victoria
October 14, 2014	Public Hearing	Surrey
October 15, 2014	Public Hearings	Mission Delta
October 28, 2014	Deliberations	Victoria
November 3, 2014	Deliberations	Victoria
November 4, 2014	Deliberations	Victoria
November 6, 2014	Deliberations	Victoria
November 12, 2014	Deliberations Adoption of Report	Victoria

Provincial fiscal policy and taxation issues were recurrent topics during the public consultations on Budget 2015. Associations representing business, industry, accounting professionals, and other sectors shared their budget priorities for 2015 through oral and written submissions to the Committee. Overall, the general message from these groups was that the provincial government needs to balance the budget and to maintain fiscal responsibility. Specific proposals were made on how to reduce the provincial debt, enhance the PST and carbon tax, and improve taxation affecting real estate and credit unions.

British Columbians provided a range of other suggestions on fiscal policy and taxation in written submissions to the Committee. In addition, the online survey asked the public to rank their budget priorities, including how to best achieve ongoing balanced budgets. The tally of responses to the online survey questions are summarized on pages 4 and 5.

Balanced budget 2015

The Committee heard a strong message from the business community on the need for government to continue to balance the provincial budget and maintain fiscal restraint amid this period of modest and uneven economic recovery. Groups such as the Business Council of British Columbia and the British Columbia Chamber of Commerce urged the provincial government to meet its balanced budget mandate for 2015, as forecast in “Budget Consultation Paper 2015: Successive Balanced Budgets.” The Committee was also presented with options for future spending priorities. While the BC Chamber stated that its membership expects to see government continue to hold spending increases to no more than population and GDP growth, the Business Council of British Columbia proposed considering, at a time of record low borrowing costs, taking on additional debt to finance high priority infrastructure projects.

Submissions to the Committee affirmed the need for a long-term commitment to ongoing balanced budgets and debt management. Several written submissions from individuals, for example, spoke about the need to bring down the debt and to reduce debt servicing costs. In Whistler, the Canadian Federation of Independent Businesses stated that small- to medium-sized businesses want the government to achieve a debt-free BC through ongoing control of operating spending (e.g. public sector wages) and additional revenue generation through natural resource development (e.g. liquefied natural gas). Other groups, like the Canadian Taxpayers Federation, went further and called on the government to pass a debt reduction act similar to Alberta’s, which would require 75 percent of budget surpluses to go towards paying down the debt.

Provincial Sales Tax

Business and industry representatives spoke to the Committee about ongoing challenges stemming from the province’s return to the Provincial Sales Tax in 2013. They noted how the loss of input tax credits as a result of the repeal of the HST has had a detrimental impact on BC tax competitiveness, and likely contributed to the province’s modest GDP growth. The written submission by the Chartered Professional Accountants of BC, for instance, stated that the current PST is a challenge to the business sector, and asked for the removal of the tax on business investment. Other associations representing retail, construction, and mining also spoke about the need for PST reform, and proposed the introduction of new exemptions and tax credits to boost industry competitiveness.  It was recommended that the provincial government examine the PST issues still facing BC industries, and that it work with industry and stakeholders to enhance the legislation for clarity.

Carbon tax

Considerable attention was given to the carbon tax, introduced in 2008 as part of the Climate Action Plan, which applies to the purchase or use of fossil fuels in the province. At several public hearings, producers of cement and agricultural products spoke about the impact of the tax on domestic industry, and how it places BC producers at a disadvantage. The Cement Association of Canada, for example, explained how domestic producers are at a disadvantage when cement can be imported from the United States and Asia free of the carbon tax. These groups asked for measures to mitigate the impact of the carbon tax on their businesses, a message echoed by other companies, including Absorbent Products Ltd., Western Canada Biodiesel, and Hillsborough Resources, and by local chambers of commerce.

Other groups spoke to the Committee about the positive impacts of the carbon tax on reducing greenhouse gas emissions. Environmental organizations such as the Pembina Institute, David Suzuki Foundation, and BC Sustainable Energy Association recommended expanding and increasing the carbon tax, which has been frozen at the current rate since 2012. Their recommendations to government were to broaden the carbon tax to cover all sources of measurable carbon pollution, and to schedule additional $5-per-ton increases to the tax.

Housing affordability

The rising cost of home ownership was a topic raised by presenters at several public hearings, particularly in the Lower Mainland and some Interior communities. Real estate boards, chambers of commerce, and home builders talked about the high costs of real estate in parts of BC, and the need for new government incentives to increase affordability and mitigate rising home prices, particularly for families and first-time home buyers. The British Columbia Real Estate Association, for example, pointed to the effect of the Property Transfer Tax on market housing affordability. They asked for the 1 percent threshold of the tax to be raised from $200,000 to $525,000 with 2 percent applying to the remainder of the fair market value. Suggestions were also made to index the 1 percent threshold and to make adjustments annually to account for rising home prices.

The Committee was also presented with other options to improve housing affordability. The Institute of Chartered Accountants of British Columbia suggested that BC examine the effectiveness of Hong Kong’s Stamp Tax, which was introduced for foreign buyers purchasing property that is not their primary residence. The provincial government was encouraged to monitor the effectiveness of Stamp Tax and, if it is found to be effective, to consider introducing a similar policy to lower BC housing prices. The Kelowna Chamber of Commerce further recommended the introduction of a primary residence grant for first-time home owners buying a primary residence, along with a new rate for non-resident property acquisitions where the home is not being purchased as a primary residence.

Credit unions

Central 1 Credit Union, the central financial facility and trade association for Credit Unions in BC and Ontario, presented to the Committee in Vancouver. The presentation noted how the 2014 provincial budget called for the Income Tax Act to be amended to phase out the provincial preferential income tax treatment for credit unions over five years. The Committee heard how the change will cause the estimated effective tax rate on credit unions to rise from 16.5 percent in 2013 to 22.6 percent in 2020, exceeding the estimated 19.7 percent effective tax rate on banks in Canada. Representatives of Central 1 asked that the Province remedy this situation by making the temporary deferment of the increased tax rate for credit unions permanent.

Conclusions

In accordance with the main theme of this year’s consultation paper, “Budget 2015 Consultation: Successive Balanced Budgets,” the Committee concurs that balanced budgets should remain a top priority for government. Accordingly, the Committee recommends that the Province remain committed to balancing Budget 2015 and work towards balanced budgets in the three-year fiscal plan. Committee members also agreed that the government should adopt a comprehensive debt management plan, one that makes a concerted effort to reduce the debt as finances improve.

The Committee acknowledges the ongoing challenges that BC businesses face as a result of the existing tax regime. With respect to the PST, the Committee recommends that the provincial government initiate a public discussion on how to improve the tax to increase the productivity of industry and business, while maintaining taxation fairness to consumers.

On the carbon tax, the Committee recommends government identify options consistent with the purpose of incenting greenhouse gas reduction to mitigate the tax’s impact on domestic manufacturers and producers who are at a competitive disadvantage to importers. In further keeping with the intent of the carbon tax to reduce greenhouse gas emissions, the Committee also suggests government consider ways in which the carbon tax could be extended in the future to include measurable carbon emissions currently omitted from coverage.

To address the rising costs of housing, the Committee makes a recommendation for government to explore taxation options to assist first-time home buyers and to mitigate the overall effects of property speculation, particularly in regions most susceptible to declining affordability. As well, the government is encouraged to maintain the current provincial income tax rates for BC credit unions, and to make the temporary deferral of the tax increase permanent.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

Topics relating to natural resource development were raised throughout the consultation period, particularly during the visits to natural resource-rich regions of the province. Presenters from northern and gateway communities spoke about the importance of mining to the provincial economy, including the potential economic benefits of liquefied natural gas. Several local governments also made submissions stressing the need for physical and social infrastructure to accommodate population growth in communities near natural resource developments.

Elsewhere in the province, the Committee received submissions from representatives of forestry, agriculture, food processing, aquaculture, and other sectors. These groups discussed the challenges facing their industries, and suggested ways in which the provincial government can help to create conditions favorable to industry growth and enhanced competiveness. Overall, the evidence presented to the Committee underscored the importance of natural resource industries to BC communities, as well as the significant economic benefits that they return to the province in the form of royalties and jobs.

Community/regional infrastructure

A significant number of submissions focused on community and regional infrastructure. For example, associations representing business, industry, and tourism stressed the importance of ensuring that key transportation infrastructure is in place to facilitate the movement of goods and people. Local governments throughout the province also spoke about the “infrastructure deficit,” and how many communities are struggling to replace or upgrade aging sewers, roads, bridges, tunnels, and other physical infrastructure. In addition, the Committee heard about the importance of social infrastructure assets—such as schools, hospitals, community centres, and public transit. With northern communities poised to grow as a result of oil and gas development, the Committee heard how it is imperative for the government to support the creation of livable communities capable of attracting and retaining workers and their families.

A consistent message was heard in the north on the need for community infrastructure to support resource-based development. Officials from the cities of Prince Rupert and Fort St. John spoke about the impact of oil and gas development in the region, and how local governments are struggling to build or replace roads, ferry docks, landfills, and water and sewer systems. The NEBC Resource Municipalities Coalition, whose members include seven northern BC municipalities, proposed working with the provincial government to undertake a comprehensive, cumulative resource development planning process that includes assessment of community and infrastructure development requirements.

In Delta, the Business Council of British Columbia talked about the need for long-term strategic planning that facilitates the coordination of infrastructure needs and planning across different levels of government. They recommended that the Province make infrastructure a top priority in all discussions with the federal government, and that work take place with local governments to explore infrastructure options. Other associations, including the Association of Consulting Engineering Companies of BC, similarly urged the development of a long-term infrastructure plan. They advised proceeding with infrastructure projects currently under discussion, while engaging with the issue of financing options.

Revenue sharing agreements

During its visit to northern parts of the province, the Committee learned about the importance of revenue sharing to communities affected by oil and gas developments. These multi-year agreements, which reallocate provincial royalties from resource extraction towards the development of local infrastructure, are vital to facilitating economic growth while ensuring the sustainability of rural communities. The current Fair Share memorandum of understanding between the provincial government and the eight Peace region local governments is one such agreement.

Business, industry, and local government representatives spoke about the need for new revenue-sharing agreements for northern development. For example, in Prince George, Initiatives Prince George, a municipally-owned economic development corporation, asked for the commencement of revenue-sharing discussions with rural-resource communities, especially those in Northwest BC, to help them prepare for future growth. Other regional stakeholders repeated this message, and specifically recommended extending the Fair Share agreement to 2030.

The Committee also heard about the value of revenue-sharing agreements with First Nations impacted by mining and oil and gas developments. The presentation by the Mining Association of British Columbia stated that the future of mining in BC will be shaped, in large part, by the successful creation of long-term, mutually respectful relationships with First Nations communities. Noting that the June 2014 Tsilhqot’in Supreme Court decision recognized that First Nations title exists in that specific area of the province, the association recommended that Budget 2015 provides sufficient resources to implement revenue-sharing agreements and to support other consultation activities.

Environmental assessment

The issue of environmental assessment and the permitting process was raised by associations representing BC mining and mineral exploration. In Mission, the Mining Association of British Columbia spoke about the important role of the BC mining industry, and how member companies represent an $8.5 billion industry employing more than 10,000 British Columbians. The association stated that the industry has faced challenges as a result of fluctuations in commodity prices, a conservative international investment climate, and a competitive global market.

The association presented five recommendations to support the industry, such as requests for ultimate oversight for the mine permitting process to be vested within the Ministry of Energy and Mines, and for natural resource ministries to be afforded adequate means to support permitting, environmental assessment, and First Nations engagement and consultation. The written submission by Teck Resources, Canada’s largest diversified resource company, similarly asked for support for the industry and that key resource development agencies be given adequate resources and capacity to meet demand.

Other industry representatives forwarded requests for government to facilitate exploration and development of mineral and coal resources in an environmentally safe and timely manner. Presenting in Williams Lake, the Association for Mineral Exploration British Columbia recommended ways to improve land-use and access policies, clarify and improve tax policy, and enhance the permitting and regulatory system. One of their other requests was for the Province to continue working with the federal government to achieve a single, effective, and efficient environmental assessment and decision-making process that is science-based, consistent, and predictable.

Forestry and land-use planning

Two presentations were made to the Committee regarding forestry and land-use planning. In Williams Lake, the Committee heard from a Vernon-based forest product company, Tolko Industries Ltd. Their presentation stressed the need for government to work to create a competitive operating climate for the BC forest industry. They asked for there to be a review of the timber-pricing system in BC to address diminishing fibre supply over the next five years, and that adequate funding be provided for forest inventories.

The Wilderness Tourism Association, which represents nature-based tourism operators in the province, presented in Campbell River. They explained how forestry and tourism operators in the Johnstone Strait region sometimes have competing interests, and that there currently is a lack of up-to-date natural resource inventory information for government to use when making land-use decisions on such matters. It was requested that the Province dedicate attention and funding towards improving land-use planning processes and inventories, as well as enforcement and monitoring of land users.

Agrifoods

Covering both food production and processing sectors, BC’s agrifoods industry generates more than 61,000 jobs and close to $10.5 billion a year in provincial revenues. Industry representatives appeared before the Committee at several public hearings to discuss ways in which government support and funding could help to achieve a $14 billion agrifoods sector by 2017, a target set by the provincial government in BC Agrifoods: A Strategy for Growth.

In Surrey, the Committee heard a presentation by the BC Food Processors Association, which represents food, beverage, and nutraceutical processing industries. They advocated for expansion of the Buy Local program, which helps BC producers and processors promote local foods, and for the program to be broadened to include processed foods. Stronger government partnerships with industry was also requested, along with funding to help create a food and beverage processing industry environment that fuels innovation in the sector.

The BC Agriculture Council, which represents BC farmers, ranchers, and farm sector associations, also spoke to the Committee in Mission. One of their requests was for the Province to expand the BC agrifoods sector and work with industry and other stakeholders to develop a long-term holistic vision. The Committee also received presentations by fruit growers, land-based salmon farmers, and representatives of farmers’ markets during the public hearings.

Wine and cider industry

In the Okanagan, the Committee heard about the international success of the BC wine industry, and how room exists for further market growth, particularly for wines produced from 100 percent BC-grown grapes. Terroir BC, a non-profit organization representing 62 BC wineries, proposed several ways to support the wine industry through enhanced labelling, brand recognition, and retail promotion. They also explained that they are in the process of developing a proposal to the federal Ministry of Western Economic Development for a $1.2 million 12-month program, set to commence January 2015. They requested a provincial contribution of $300,000, which would be used to leverage $900,000 in additional funds from the federal government.

The Committee heard a presentation in Kelowna by BC Fruit Trees, a co-operative of 500 tree fruit growers. The Committee learned that BC Fruit Trees is planning to go into the craft cider business, but that the existing Liquor Distribution Branch licencing model disqualifies them from receiving the same quality enhancement rebates that wineries currently receive. They asked the government to direct the Liquor Distribution Branch to treat all 100 percent BC agricultural products that qualify under a winery licence equally, whether fermented from grapes or from other fruits.

Site C

The Committee received a range of recommendations regarding the proposed Site C hydroelectric generating station on the Peace River in northeast BC. While some environmental groups called on the government to halt the project or to consider alternative power generation options, an association representing consulting engineers and a labour union voiced support for the project and the jobs it will create. Other submissions from northern local governments, including the District of Hudson’s Hope and the Peace River Regional District, called for the project to be referred to the British Columbia Utilities Commission for a review of the project’s costs and impacts on ratepayers.

Conclusions

In recognition of the important role that natural resource developments have for the provincial economy, the Committee makes several recommendations to support new and existing industry growth. With respect to infrastructure, the Committee recommends the development of a long-term, comprehensive physical and social infrastructure strategy—one that addresses demographic and economic trends, community and regional needs, and strategic planning across different levels of government. Evidence presented to the Committee indicates that such a strategy is needed to meet the immediate and long-term needs of northern and northwest communities affected by oil and gas and other developments, as well as the province as a whole.  

To facilitate natural resource development, the Committee recommends adequate funding for the continued negotiation and implementation of revenue sharing agreements, including Economic and Community Development Agreements with First Nations. In addition, the provincial government is encouraged to continue working with the federal government to achieve a coordinated, effective, and efficient environmental assessment and decision-making process.

Other recommendations are made to assist the forest industry and to improve inventories necessary to making effective land-use decisions. The Committee also proposes ways to promote BC’s successful agrifoods sector, specifically through enhanced support for the Buy Local program and for promotion of BC wines and ciders.

The Committee considered the evidence received regarding the proposed Site C project, including the proposal to refer the project for review to the BC Utilities Commission. While the Committee agrees that there needs to be a fiscal and environmental review of the proposed project, they could not arrive at consensus on the preferred method for such a review. Therefore, no recommendation is made on this topic.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

Health professionals, community service providers, healthy living advocates, and concerned citizens participated in the consultations on Budget 2015, sharing a number of ideas on how to improve the public health care system. During the community public hearings, the Committee also learned about the unique health care needs of specific communities, particularly in rural and remote areas. Other groups made presentations stressing the need for funding to treat specific issues, such as youth mental health and acquired brain injury.

The consultations provided an opportunity for the Committee to learn about the importance of prevention in reducing illness. Submissions from physicians, healthy living advocates, and community sport groups called for proactive measures to improve well-being and reduce chronic disease. They stressed how modest investments in healthy living initiatives will result in long term costs savings for the province’s health care system.

Rural/regional health care

The issue of rural health care arose during the Fort St. John public hearing. Presenters from two citizen advocacy groups, Concerned Citizens for Health Care and the Save Our Northern Seniors, spoke about difficulties accessing adequate health care services in rural-remote regions of BC. They stated that there are shortages of medical professionals in the Peace River region, and that this, along with the high cost of living, deters people from coming to work and reside in the area. Both groups called on the government to devote additional resources to encourage recruitment and retention of doctors, nurses, and other medical health professionals.

Other submissions made similar calls to enhance health care services in underserved communities. The Federation of Community Social Services of BC reiterated that there are unique health care needs in communities experiencing rapid growth as a result of resource development. Noting that community social service providers complement the health care system, they stated that the development of social service infrastructure in these communities can go a long way in preventing troubling and costly social conditions.

Midwives and nurse practitioners

During the consultations, the Committee heard how other health professionals, notably midwives and nurse practitioners, can play a greater role in the delivery of health care services. In Kamloops, the Midwives Association of British Columbia highlighted the benefits of midwifery services, which include pregnancy, birth, and postpartum for both mother and baby. They explained that midwives are continuing to contribute to better health outcomes while simultaneously bringing efficiencies and cost savings to the health care system. The association asked for $3 million a year to 2020 to expand midwifery services, along with changes to remove barriers for midwifery services in hospitals, rural and remote areas, and to midwives’ participation in decision-making processes.

The Canadian Federation of University Women – British Columbia Council similarly advocated for increased utilization of nurse practitioners in primary health care delivery. To this end, they requested the establishment of long-term funding for nurse practitioner positions, new funding models to ensure the autonomy of nurse practitioners within teams of health professionals, and additional spaces to train nurse practitioners in BC universities.

Child and youth mental health

Several organizations presented to the Committee on the topic of mental health, and recommended ways to improve services to prevent and treat mental health issues. In Victoria, Moms Like Us, a group of parents of adult children with mental health challenges, spoke about the frustrations faced by families trying to navigate the mental health service system. They described problems accessing programs and services, and characterized the system as fragmented and fraught with gaps. Their main recommendation was for the expansion of the international clubhouse model in BC, which provides holistic mental health services to people 18 years and older with severe and persistent mental illness.

Other submissions called for resources to address mental health disorders, specifically among children and youth. The Canadian Mental Health Association, BC Division, requested increased spending for community-based mental health and substance abuse services and supports for vulnerable children and youth. The British Columbia School Trustees Association asked for more school-based support for youth mental health assessment, accessible counselling, and teacher training.

The Committee also heard presentations from representatives of the Inter-Divisional Strategic Council/Child and Youth Mental Health and Substance Use Collaborative. This project, jointly funded through a shared committee of Doctors of BC (formerly BCMA) and the Ministry of Health, is a structured collaborative in the Interior Health Region aimed at increasing the number of children and youth and their families receiving timely access to integrated mental health and substance use services and supports. Both the collaborative and the Cariboo Action Team spoke about the successes of the initiative, and requested a total investment of $20.25 million in Budget 2015 to enhance the work of the collaborative and local action teams in reducing mental disorders and impairment among children and youth.

Acquired brain injury

Acquired brain injury service providers appeared in Terrace, Prince George, Kamloops, and Mission. Presenters described how roughly 22,000 British Columbians acquire new brain injuries each year that often result in permanent disability or death. The Committee heard how community-based service providers deliver important support and rehabilitation services, including residential, pre-employment, health maintenance, education, financial, compensatory strategy development, advocacy, and family support.

The written submission from BrainTrust Canada, which provides community rehabilitation to persons with brain injury in the Okanagan, stated that more must be done to prevent this costly and devastating health condition. They called on the government to identify acquired brain injury as a priority area within the current mandate of provincial injury prevention, and to assign appropriate leadership and resources. Other community-based groups also recommended that dedicated funding be provided for acquired brain injury. The presentation by the Fraser Valley Brain Injury Association/2014 Brain Injury Alliance asked for a new funding mechanism, as flow-through funding has not occurred through the British Columbia Neurotrauma Fund overseen by the Rick Hansen Foundation since 2010. They requested the establishment and administration of a new fund specifically for brain injury.

Healthy living

Advocates of healthy living and sport made several public hearing presentations and written submissions. Groups such as the BC Healthy Living Alliance, a network of organizations dedicated to advancing physical and mental well-being, noted how treatments for chronic disease consume a significant portion of the health care budget. Investing in policies proven to reduce and prevent chronic disease, they stated, brings a return on investment, while reducing demand for health care services in the long term. Other organizations, including community sport groups and the Canadian Diabetes Association, also linked health promotion and chronic illness management as part of an effective and sustainable health system.

Submissions on this topic proposed a variety of ways to promote healthy living, such as through a progressive tax regime that discourages use of tobacco, sugar sweetened beverages, and sugary and fatty snacks. The Committee also heard support for the continuation and expansion on policies that encourage proper nutrition, provide access to healthy food, and promote involvement in sport and active lifestyles.

Alcohol harm reduction

Health officials and advocates gave evidence on the impacts of alcohol abuse, including the substantial human and financial costs that it places on the health, social, and criminal justice systems. The written submission by the Health Officers Council of British Columbia, a registered society of public health physicians, described how alcohol abuse leads to acute and chronic diseases, mental and substance use disorders, injuries, and deaths. They estimated that the total direct and indirect costs of alcohol for BC were $2.22 billion in 2002, and pointed out that the trend for alcohol-associated harms is on an upward trajectory. The council recommended a series of new pricing measures to reduce harms associated with alcohol, such as an overall minimum pricing structure, and pricing of products according to total alcohol content.

Other submissions from the Provincial Health Officer, the UVic Centre for Addictions Research of BC, and the BC Healthy Living Alliance conveyed a similar message. Noting that the 2014 BC Government Review of liquor laws specifically recommended updating and increasing minimum alcohol prices and linking these to beverage strength, submissions called on government to extend these provisions province-wide.

Lyme disease

A number of individual submitters, as well as presenters from two Lyme disease support groups, spoke to the Committee about Lyme disease, a serious illness which can be spread by the bite of blacklegged ticks. Participants specifically talked about the prevalence and effects of chronic Lyme disease, a controversial diagnosis for symptoms of persistent pain, fatigue, cognitive issues, or a combination of these and other symptoms.

Presenters to the Committee described the personal and financial challenges they have faced obtaining diagnoses and treatment for chronic Lyme disease in BC, and recommended options to improve prevention and treatment. The Victoria Lyme Disease Support Group, for example, stated that a province-wide Lyme disease public awareness program is desperately needed so that citizens can learn how to protect themselves, know what to do if they get a tick bite, and recognize symptoms. Submissions also called for enhanced research and testing, better physician education, and greater support for the Complex Chronic Disease Program, located in the BC Women’s Hospital & Health Centre in Vancouver’s BC Children’s Hospital.

Conclusions

The Committee makes seven recommendations in the area of health. To improve health care services in rural-remote areas of the province, it recommends that government continue to develop new incentives and programs to recruit and retain doctors, nurses, and other medical professionals in these high-need areas. The Committee also suggests that greater effort be made to expand the use of midwives and nurse practitioners throughout the province, as these health professionals have been demonstrated to improve efficiency and build capacity in the health care system.

The Committee believes that more supports are needed for preventing and treating mental health disorders among children and youth. It therefore recommends that new investments be made in this area, specifically for integrated services initiatives such as the Inter-Divisional Strategic Council/Child and Youth Mental Health and Substance Use Collaborative.

Three recommendations are aimed at chronic disease prevention. The Committee recommends continued efforts to promote healthy living though taxation policies that discourage tobacco use, sugar-sweetened beverages, and other causes of chronic disease. The Committee also calls for the adoption of new pricing measures for alcohol, which have been proven to decrease alcohol-associated illness, injury, disability, and death. Lastly, a recommendation is made for the provision of funding for Lyme disease public awareness, research and testing, physician education, and the Complex Chronic Disease Program.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

Submissions on K-12 and post-secondary education constituted a large portion of the public input on Budget 2015. Furthermore, the most popular response to the online survey question, “What program and spending areas are most important to you?” was K-12 and post-secondary education.

School districts, teachers, and advocacy organizations made submissions stressing the need for a strong elementary and secondary schoolsystem, one supported by adequate funding to meet the needs of today’s students. Additional proposals were put forth to improve the K-12 system through changes to programming and curricula, enhancements to in-class resources, and recruitment of more teachers and support staff.

The consultations also provided an opportunity for universities and colleges, faculty associations, and student unions to raise issues about BC’s post-secondary system. Common requests included calls for increased budgeting for operating and capital needs, and changes to the funding formula and accounting practices. In addition, the Committee received a considerable number of submissions on topics relating to post-secondary programming—notably English as a second language and skills training—as well as to student access and affordability.

K-12

Operating funding

As in previous budget consultations, the Committee received numerous submissions on the topic of K-12 funding. Boards of education from Vancouver, Surrey, Richmond, Delta, Prince George, Fort St. John, Williams Lake, and the Central Okanagan presented or sent written submissions to the Committee calling for enhanced core funding. The key message in these submissions was that there needs to be stable, predictable, and adequate funding for public education, particularly to cover mandated increases for salaries, benefits, pension contributions, and Medical Services Plan premiums. Rising costs associated with carbon emission calculations and carbon offset purchases were also mentioned, along with the capital costs of increased maintenance, seismic upgrades, and school replacements.

Teachers, parents, and advocacy groups also made written submissions calling for enhanced resources for public education. The BC Teachers’ Federation, which represents the province’s 41,000 public school teachers, recommended increasing operating grants by $1,000 per student to bring funding up to the Canadian average. They also asked for funding for special needs students, curriculum changes, collective agreement costs, and capital upgrades. In addition, a large number of written and form letter submissions were received from parents and concerned citizens expressing support for a well-funded and accessible public K-12 education system. Surrey school support workers and education advocacy groups such as the Vancouver-based Public Education Project echoed this message in their submissions to the Committee.

Capital funding

The Committee heard a number of capital requests for school replacements and upgrades to aging facilities, including specific projects in districts across the province. In Prince George, for example, the Board of Education proposed increasing the annual facility grant over the next five years by $10 million per year to extend the useful life of schools and facilities. They also requested that the annual capital plan process be reinstated and revised to ensure that the needs of all districts are equitably met.

Funding for seismic upgrades was a recurrent theme in submissions. In Delta, the British Columbia School Trustees Association mentioned that many BC schools are still vulnerable to damage in the event of seismic activity. Noting that progress has been made with over half of the seismic mitigation projects now completed, the association stated that over 130 schools still need significant upgrades to ensure the safety of students and staff. Groups representing teachers and parents also affirmed the need for capital funding and planning for schools, particularly in rapidly growing communities such as Surrey.

Programming and curriculum

In Delta, the Committee received a joint submission from the Richmond school district and administrators, management and professional staff, teachers, and parents. They explained how the Ministry of Education continues to focus on new personalized learning initiatives, which recognize that students learn differently, bring different experiences and motivations to the classroom, and require different approaches from their teachers. Committee members learned how the district is moving forward with its own version of the concept, but that full implementation will require additional staff, resources, professional development, and infrastructure for technology.

The Committee also heard about the importance of providing trades and technology training in the K-12 system to channel students towards related career paths. The written submission from the Sunshine Coast School District acknowledged the BC Jobs Plan goal of offering more apprenticeships and skills training through school districts, and requested assistance to implement and continue successful carpentry/framing and culinary arts ACE-IT programs.

Special needs

Presenters in Vancouver told the Committee about the additional supports required for students with special needs and those with minimal English language skills, and how school districts are struggling to meet growing demands. The British Columbia School Trustees Association explained how schools are experiencing an increase in the number of students requiring specialized learning support. The Committee heard that these students require increased time from teachers and teaching assistants.

In Vancouver, Inclusion BC (formerly the BC Association for Community Living) presented the Committee with several ways to ensure that children and youth with special needs have equitable access to public education. The suggestions included increased funding, improved identification and assessment support services, and additional in-classroom support by qualified resource teachers and other specialist positions in accordance with applicable student ratios.

Public libraries

A strong message was heard this year from public libraries across the province. Representatives of public libraries in Vancouver, West Vancouver, Prince George, Kaslo and District, and Hazelton presented the Committee with calls for dedicated, stable, and ongoing funding for libraries. The Committee was also asked to repeat a recommendation made in previous years’ reports—to restore the separate library line item in the Ministry of Education budget. Reinstating the separate line item, they explained, would recognize public libraries’ broader community mandate, while providing transparency and ensuring accountability.

Post-secondary

Operating grants

In Vancouver, the Committee heard from the Research Universities’ Council of British Columbia, which represents the interests of the province’s six major universities. Their presentation outlined how universities face unfunded cost pressures such as wage increases, non-wage inflation costs, and carbon tax levies. These cost pressures, the council noted, are outstripping universities’ ability to achieve efficiencies and hold the line on program spending. Moreover, the Committee was told that reductions to operating grants and the annual capital allowance have resulted in unfunded cost pressures of approximately $130 million (net of tuition increases).

Going forward, the council recommended a short-term reinvestment of $25 million in 2015/16, and that government partner with the council, other post-secondary stakeholders, and business and industry to develop a multi-year investment plan that includes clear linkages to economic growth throughout BC. A similar message was conveyed by representatives of other post-secondary institutions, including the BC Association of Institutes and Universities and BC Colleges. Their written submission outlined how the average grant per-student FTE has declined while inflation has increased by 5 percent, a gap that will grow larger with future reductions in operating grants.

Another shared request was for multi-year allotments for operating grants and deferred maintenance grants. Camosun College, Northern Lights College, and Selkirk College all asked for these grants to be provided on a multi-year basis in order to permit greater overall planning capability. Three-year funding arrangements, it was noted, would make it possible for initiatives such as programming rotation and multi-year education planning cycles to be more easily and effectively planned.

Annual capital allowance

Post-secondary institutions also requested increases to the annual capital allowance. The BC Association of Institutes and Universities, BC Colleges, and student groups pointed to the annual capital allowance as a critical funding source to address routine building maintenance, minor renovations, and upgrade projects. Noting that funding has not kept pace with actual need, they called on the provincial government to address reductions to the annual capital allowance to permit greater investment in facilities and instructional equipment improvements.

Funding formula

Colleges across BC discussed the current funding formula in their submissions, particularly its impact on colleges in rural and remote parts of the province. In Terrace, for example, representatives from Northwest Community College stated that the college faces challenges as a result of its unique social and physical geography. Oil and gas activity in the area and high percentages of First Nations students, they explained, require more resources and support. Other colleges and faculty associations also stated that the current funding formula places smaller regional colleges at a disadvantage. They asked the provincial government to undertake a thorough review of the funding formula to better address regional inequities and institution-specific needs.

Accounting standards

Colleges and universities talked about the impact of provincial accounting and fiscal policies on their operations. The BC Association of Institutes and Universities explained how the government directive to balance budgets on an annual basis inhibits the use of financial resources on hand for their intended purpose. Cash saved for a purpose, they stated, may not be spent and cash earned must be set aside to fund depreciation on assets that were previously funded, effectively “double funding” the assets.

Other post-secondary institutions pointed out the negative impact that these standards have on institutions’ ability to access reserves and to self-finance needed capital projects. Submissions by the Research Universities’ Council of British Columbia, College of the Rockies, Selkirk College, University of the Fraser Valley, and Okanagan College made a similar request for government to provide greater flexibility within provincial accounting and fiscal policies, and to permit the use of reserves for business-like operations within a multi-year framework.

English as a second language (English language learning)

A large number of submissions were made regarding anticipated changes to post-secondary programming for English as a second language (ESL) in BC. Associations representing faculty, colleges, ESL teachers, and students expressed concern over the future availability of ESL programming at BC post-secondary institutions. They described how federal changes to funding have resulted in a massive budget shortfall for post-secondary institutions, and that transition funding provided by the Province is expected to run out in 2015.

Presentations by faculty and student representatives at Vancouver Community College, the largest provider of English language training programs in western Canada, stated that these changes will result in cancelled programs affecting 2,200 students, and the loss of 150 faculty positions. Noting the importance of ESL programs to addressing the growing skills shortage and promoting diversity, they urged the provincial government to invest at least $22 million in ongoing funding for provincially supported ESL programs, and to develop a long-term sustainable strategy for the delivery of ESL. This message was repeated by seven other university and college faculty associations, the Association of B.C. Teachers of English as an Additional Language, BC Colleges, and numerous individuals.

Skills training

BC’s looming skills shortage was mentioned by a variety of stakeholders representing post-secondary institutions, businesses, and industries. These groups spoke about how the combination of BC’s aging population and shrinking workforce will result in skilled labour shortages, particularly in high-skill occupations and high-growth industries. In Terrace, representatives of Northwest Community College estimated that 22,000 to 32,000 people will be needed in northern BC alone, and that their region is already experiencing a shortage. Presenters also noted how the BC Jobs Plan highlights the urgency to plan and invest now for a skilled and educated workforce.

In Courtenay, the Committee heard from the British Columbia Construction Association, which represents over 2,000 construction employers across the province involved in industrial, commercial, and institutional projects. The association stated that the solution to the skills shortage will require a realignment of resources, different attitudes about post-secondary education, and changes in immigration policy. It will take a clear and concerted effort by government, industry, and British Columbians, they added, to address this primary issue.

The written submission by Teck Resources also proposed specific measures to address the skills deficit. They recommended continuing support and investment in skills training initiatives, and improving access to technical training, such as the Industry Training Authority and technical schools. They also urged government to explore ways to enhance support for apprentices through programs such as the College of the Rockies’ Mining Apprenticeship Program, and to improve the certification process for new Canadians and foreign tradespeople. One change could include allowing applicants to apply for trade certification from outside of Canada.

Student financial aid

Student unions from six universities and colleges and two umbrella organizations—the Canadian Federation of Students, British Columbia and the Alliance of B.C. Students—made submissions to the Committee calling for enhancements to student access and affordability. These groups cited the negative impacts that tuition increases, rising costs of living, and operating grant freezes have had on students’ ability to pursue and obtain post-secondary education.

The Committee was presented with several options to enhance student affordability, including proposals to reduce or freeze tuition fees, eliminate the interest paid on student loans, and introduce new provincial grants and graduate scholarships. Additional suggestions were made to expand public transit and U-Passes, and to increase funding for trades and apprenticeship training. 

Conclusions

Over the course of the consultations, it became clear that a well-funded public education system remains a top priority for British Columbians. The evidence presented to the Committee, however, indicates that increasing operating, maintenance, and capital costs are exceeding current funding allotments.

On K-12, the Committee makes recommendation for the provision of adequate, stable, and predictable funding for operating expenses, as well as for capital funding to permit facility improvements, seismic upgrades, and additional schools in rapidly growing communities.

Recommendations are also made to support proposed new K-12 initiatives such as personalized learning and enhanced trades and technology training, as well as to provide the necessary resources to identify and assist students with special needs. In addition, the Committee repeats its recommendation from last year to restore the separate budget line item for public libraries.

Regarding post-secondary education, the Committee makes recommendations to enhance operating and capital funding, as well as to review the funding formula and accounting standards that continue to restrict post-secondary institutions’ ability to self-finance select capital projects. 

Two recommendations target programming. The Committee urges government to support provincially-funded ESL programs delivered by BC post-secondary institutions, and to work with institutions to develop a long-term and sustainable strategy for the delivery of ESL. To mitigate the looming skills shortage, it also recommends that that the Province collaborate with industry, educational institutions, and First Nations to improve skills training initiatives, apprenticeships, and certification for new Canadians and foreign tradespeople.

Lastly, the Committee recommends three ways to improve student access and affordability. They include the establishment of a student grant program, a reduction of interest charged on BC student loans and review of eligibility requirements, and the creation of a graduate student fellowship program.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

As in previous years’ consultations, the Committee received considerable public input on community and social services. Local service providers, non-profits, advocacy groups, professional associations, and individuals talked about the important programs and services provided by accredited agencies, societies, and other community-based groups. Public hearing presentations and written submissions also spoke about social services provided by the provincial government, and requested boosts to income and disability assistance to reduce poverty and improve the welfare of BC’s most vulnerable.

The Committee heard a number of recommendations to improve community and social services, including ways to reduce poverty, strengthen child development, ensure equitable access to justice, and address domestic violence. Submissions also called for greater support to for coordinated community literacy across BC. In addition, arts, culture, and media arts organizations presented ideas on how to increase economic growth by enhancing community arts and BC's creative industries.

Poverty reduction

The impact of poverty on the province was highlighted in both presentations and written submissions to the Committee. Advocacy organizations, educators, faith-based groups, community service providers, and others noted how poverty affects a significant number of BC children and families, and is the root cause of a range of social and economic problems. The submission by First Call: BC Child and Youth Advocacy Coalition stated that society as a whole bears the costs of poverty, through higher public health care costs, increased policing and crime costs, lost productivity, and foregone economic activity. They estimated that poverty in BC represents a direct cost to government alone of $2.2 to $2.3 billion annually.

The Committee was presented with several proposals on how to reduce poverty, the most common of which was for the provincial government to invest in a poverty reduction plan. First Call proposed the adoption of a comprehensive plan with legislated targets and timelines, and the appointment of a cabinet minister to achieve the goal of reducing BC’s child poverty rate to 7 percent or lower by 2020. Other submissions called for other measures to reduce poverty through enhancements to income assistance rates and increases to the minimum wage. A number of written submissions also called on government to end the clawback of child support from single parents on income assistance.

The Committee also received submissions on the current persons with disabilities (PWD) rate. Individuals and organizations stated that the current amount provided to an individual, $906 per month, is insufficient to meet rising costs of living. Groups such as Inclusion BC; West Coast LEAF; BC Poverty Reduction Coalition; Canadian Mental Health Association, BC Division; and Richmond Centre for Disability were among those calling on the government to raise the PWD rate. Most submissions suggested that the monthly rate be increased to a minimum of $1,200, and indexed to accommodate cost of living increases.

Early child development

The Committee received submissions from a number of not-for-profit service providers from different areas of the province. Presenters and written submissions described how these accredited agencies provide important community-based services to families across BC. They include services for early child development, children and youth with special needs, women and families in transition, and seniors.

In Kelowna, the Committee heard from the B.C. Association of Child Development and Intervention, which represents agencies across the province that provide child development and therapy services to children and youth with special needs and their families. Their presentation talked about how funding has not kept pace with escalating operating costs since 2009, including rising MSP premiums and collective agreement salaries. Noting that it is not feasible for agencies to continue to absorb these costs without negative impacts to service delivery, the association requested that base contract funding be increased to allow service providers to focus on providing effective and efficient services to BC families.

Child care

Recommendations were presented to the Committee to increase investments in public child care. In Surrey, the Coalition of Child Care Advocates of British Columbia called for endorsement of their $10-a-day child care plan, a proposal raised in several previous budget consultations. Developed in partnership with the Early Childhood Educators of BC, the plan was described as the basis for a quality, affordable, and accessible child care system. The coalition said that it is supported by 31 municipal and regional governments, 22 boards of education, banking, labour and business groups, academics, and others.

The economic benefits of a high-quality child care system were also cited by the BC Government and Service Employees’ Union. They stated that research consistently shows that public investment in child care results in both short- and long-term net economic benefits. A high-quality child care system, they explained, leads to decreased reliance on social services, while the short-term economic impacts are estimated to be among the highest of all major sectors.

Social housing

Written submissions to the Committee highlighted the importance of accessible, affordable social housing. Individuals and advocacy groups urged the government to adopt measures to improve housing affordability, particularly for seniors, disabled people, those on low income, and other vulnerable groups. Specific calls were made for the construction of new social housing, and for increases to rental housing subsidies provided to persons on income assistance and to shelter aid provided to elderly renters.

Other submissions pointed out the rising costs of co-op housing, and stated that there is a lack of federal and provincial assistance to address these increases. The Canadian Federation of University Women – British Columbia Council specifically recommended the continuation of integrated supportive housing for those who are disadvantaged, have mental health and addictions issues, and have been homeless.

Domestic violence

The issue of domestic violence was raised in a number of public hearing presentations to the Committee. Community service providers from Campbell River, Cranbrook, and Duncan spoke about the prevalence of domestic violence in BC communities, and the traumatic impact of intimate partner abuse, sexual assault, and childhood sexual abuse. The Committee learned about the important supports and services that these groups provide to women, children, and families, and how the funding requested by this sector is a relatively small amount given the overall social and economic costs of domestic violence to the province.

In Vancouver, the Committee heard from the Ending Violence Association of BC, a non-profit organization that supports the work of victim-serving and other anti-violence programs across BC. The association stated that there is a pressing need for enhancements to community-based victim services and that, in a province with 889 communities, there are currently only 230 specialized, non-residential programs for women who are trying to cope with violence. To address this service shortfall, they requested an increase in the number of community-based victim services to make them available in every BC community and to Aboriginal people living on- and off-reserve.

Access to justice

In Surrey and Delta, the Committee heard presentations stressing the need for equitable access to justice. The presentation by Dr. Mychael Gleeson talked about the challenges that people affected by disabilities or mental disorders have accessing justice, and how increased legal aid funding is needed. The Canadian Bar Association, British Columbia Branch also spoke about the need for legal aid funding. They said that meaningful access to justice should be viewed no differently than health care or education, and that investment in legal aid is critical to increasing the overall effectiveness of the justice system. The association requested an immediate contribution to legal aid funding of $10 million over the next three years, starting with $4 million this year, and $3 million in each of the two years following.

Other submissions suggested ways in which the delivery of justice services could be improved through the greater use of other legal professionals. The presentation by the Society of Notaries Public of British Columbia explained the role of BC notaries public, and how they provide a range of services to the public on non-contentious legal matters. The society told the Committee that they are looking to provide greater access to justice for their clients by expanding these services to include additional non-contentious law—such as wills, probate and corporate matters, including incorporation, and uncontested family law matters. The Committee also heard that the Law Society of BC, which regulates lawyers in BC, is currently studying extending its regulation to include notaries and paralegals.

BC SPCA

Presenters at public hearings in Fort St. John, Kelowna, and Kamloops talked about the important animal protection services provided by the BC SPCA. The Committee heard how the Prevention of Cruelty to Animals Act empowers the BC SPCA to establish and operate public shelters for stray and seized animals, and to appoint specially-trained constables to investigate reports of cruelty against animals. It was also explained that the provincial government provides no funding to the BC SPCA to carry out its statutory mandate.

The submission by the BC SPCA in Kelowna described how ten of their oldest and busiest community facilities are in need of replacement or improvement, at a projected cost of $50.4 million. The society explained that it expects to raise half of this amount, and requests the remaining $25.2 million from the Province, phased in over an eight-year period. The Committee was told that, without this assistance, the BC SPCA will not be able undertake needed capital improvements while also maintaining current operating levels.

Literacy

A strong message was delivered by literacy organizations about the value and benefits of community-based literacy programs and initiatives. In Victoria, the Committee heard from Decoda Literacy Solutions, a non-profit organization that leads a coordinated literacy network of over 400 community task groups across the province. Their presentation described how the network delivers unique literacy promotion programs and services to help underserved populations. Noting the social and economic benefits of literacy, presenters requested multi-year annual funding of $2.5 million from the provincial government to continue coordinated community literacy work. This recommendation was echoed by community-based affiliates of the network at other public hearings.

Arts and culture

Organizations from BC’s arts and culture sector participated in the consultations, along with several community-based groups representing artist-run centres, art galleries, and theatre and symphony groups. Their oral and written submissions to the Committee highlighted the social and economic benefits of arts and culture activities. The Committee heard how arts organizations employ thousands of people, including many volunteers, and contribute millions of dollars to the economy, much of it leveraged from small but critical investments from the provincial government.

Recommendations were made to increase funding for arts and culture through the BC Arts Council, the independent agency that provides funding and support for arts and cultural activity. The Committee was also asked to recommend an increase to Community Gaming Grants, with a goal of increasing grants steadily in the long term in accordance with the report of the Skip Triplett Community Gaming Grant Review. Another common request was for the provincial government to implement a multi-year funding model similar to the Canada Council for the Arts for the BC Arts Council. Some submissions further called for the development of a capital program to help organizations purchase and maintain presentation venues for arts and culture.

Other submissions were received from representatives of the BC film industry. In Whistler, the Motion Picture Production Industry Association of BC, which represents both film and television production, stated that the sector supports over 25,000 jobs and has contributed, on average, $1.1 billion in production spending annually for the past decade. Their presentation mentioned initiatives to assist the industry, such as making postproduction work eligible for the Digital Animation or Visual Effects (DAVE) tax credit to encourage further postproduction and digital animation in BC. Noting that regulatory changes are currently being considered, they urged the government to follow through with this change.

Submissions were also received regarding Creative BC (formerly the BC Film Commission and BC Film + Media), the agency that provides programs and services to support the creation, production, and marketing of BC’s cultural products. The presentation in Surrey by Created in BC—a group representing Music BC, Canadian Media Production Association – BC Producers' Branch, and Association of Book Publishers of British Columbia—urged the provincial government to ensure that Creative BC is adequately funded to fulfill its mandate. The written submission by BC members of the Independent Media Arts Alliance also stated that Creative BC could foster collaborations between non-profit and for-profit organizations in the media arts sector, and create opportunities for independent media arts organizations to develop new models.

Conclusions

The number of oral and written submissions regarding community and social services programs clearly indicates that these services remain a high priority for British Columbians. Accordingly, the Committee makes several recommendations to support the valuable services and programs delivered through government and accredited agencies.

To mitigate the impact of poverty on BC families, the Committee recommends the introduction of a comprehensive poverty reduction plan, a recommendation put forth in last year’s report. As well, it is recommended that the provincial government review income assistance rates, the minimum wage, rules around the clawback of child support payments, and the persons with disability rate.

Suggestions are also made to enhance community-based services, particularly for early child development, and to improve access to affordable child care. On social and co-op housing, the Committee encourages the Province to work with the federal government to increase access, especially for people with disabilities, and to ensure continuation of operating agreements with existing housing co-operatives.

The Committee believes in ensuring equitable access to justice. It therefore recommends incremental increases to legal aid funding, consideration of expanded use of notaries public and paralegals for the delivery of justice, and expansion of community-based victim services across the province. Other recommendations are made to provide funding for the BC SPCA and multi-year funding for coordinated community literacy work,

The Committee also makes two recommendations to enhance support for arts and culture and BC creative industries, as finances permit. In recognition of the economic benefits and jobs created by a vibrant arts and culture sector, the Committee recommends increasing arts funding through the BC Arts Council and Community Gaming Grants, and implementing a multi-year funding model. It is also recommended that continued funding be provided for Creative BC programs to support the creation, production, and marketing of BC’s cultural products.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

The consultations on Budget 2015 provided British Columbians with the opportunity to raise a variety of other matters for the Committee’s consideration, including issues relating to provincial transportation, the technology sector, and the environment.

On transportation, submissions from business, industry, and local government stressed the economic importance of maintaining strong transportation infrastructure and services crucial to the movement of goods and people. Other input focused on BC’s technology sector, and how it has the potential to attract and leverage venture funding from outside sources to support growing BC businesses. Environmental topics were also often raised in submissions, including ways to capitalize on clean energy initiatives, and to protect and promote the environment.

Trade corridors/transportation infrastructure

The importance of trade corridors and transportation infrastructure to the provincial economy was emphasized by organizations representing a wide range of sectors. Port authorities, business associations, industry representatives, tourism promoters, and others talked about the vital role that highway, rail, waterway, and port infrastructure play in facilitating imports and exports. Submissions documented how BC’s transportation networks and trade corridors are key to the province’s role as a major gateway connecting Canada to Asia and other international markets.

The Committee received several submissions from organizations based in the Lower Mainland regarding development of the Pacific Gateway. Port Metro Vancouver, which operates cargo terminals, cruise terminals, shipyards, tugboats, railways, trucks, and other port services, made a written submission calling on the government to continue supporting and funding strategic infrastructure developments. Their specific requests included projects at Roberts Bank, the George Massey Tunnel replacement, additional Fraser River rail crossing capacity, and other gateway fluidity supporting capital investments, such as road and rail grade separations.

Elsewhere in the province, the Prince Rupert Port Authority discussed northwest gateway initiatives, and similarly called on the provincial government to maintain strategic leadership in the development of trade corridors. Timely policy, strategic investment, and critical infrastructure, they stated, enhance the competitiveness of the Prince Rupert gateway, its associated northern trade corridor, and the BC export industries that depend on it. Other presenters at Interior communities also spoke about the importance of corridor infrastructure. Initiatives Prince George asked for continued infrastructure investment for the Cariboo Connector, upgrades to Highway 97 Pine Pass and Highway 16 West, and expansion of dark fibre optics and telecommunications.

BC Ferries

Submissions from both coastal and interior communities talked about BC Ferries, and how it serves as an important and essential piece of provincial transportation infrastructure. Local chambers of commerce, tourism associations, and local governments described how BC Ferries functions as a major corridor for commerce and tourism, and provides a vital link connecting Vancouver Island and the adjacent islands to Lower Mainland and Interior communities.

In Victoria, the Greater Victoria Chamber of Commerce expressed concern over current ferry fares, and stated that rates are now high enough to discourage travel. They also noted the varying profitability of different routes, and said that it is essential that ridership on the Swartz Bay-Tsawwassen crossing be increased to sustain other routes in the system. The written submission by the Islands Trust, which represents islands and waters between southern Vancouver Island and the mainland, requested funding from the Province to reduce ferry fares to 2003 levels plus cost of living increases. They also asked the provincial government to fund future costs, including capital expenses and fare increases, in accordance with increases to the consumer price index. 

Chambers of commerce and tourism groups from Williams Lake and the West Chilcotin also recommended enhancements to the BC ferry system to facilitate access to Interior communities. For example, upgrades to the docking facilities in Bella Coola were requested in order to accommodate larger vessels, such as large ferries and cargo ships. The Committee also heard requests for the provincial government to develop and implement a long-term strategy for the coastal ferry system, one to ensure the sustainability of coastal communities, tourism, and the ferry service.

Public transit

Public transit issues and infrastructure were mentioned during the consultations, particularly in submissions from the Lower Mainland. Vancouver-based groups such as the Canadian Centre for Policy Alternatives – BC Office, stated that current funding models for municipalities and for TransLink do not meet the modern needs of communities and businesses. They called for Budget 2015 to address the urgent need for rapid transit investment in Surrey and Vancouver. Student groups from UBC and Vancouver Community College also asked for Lower Mainland transit improvements, such as higher service levels and a below-grade rail system for the Broadway corridor, as well as additional support for U-Passes.

Other environmental groups spoke more generally about the need for expanded public transportation infrastructure across the province. The David Suzuki Foundation recommended that a secure, long-term, and stable funding source be provided for transit and transportation infrastructure identified in the Provincial Transit Plan and regional plans. The Urban Development Institute, a national non-profit association representing land developers and related professions, called for continued investment of new funds for BC transportation infrastructure and a framework to ensure that investments in transit infrastructure are coordinated with municipal and regional land-use planning.

Venture capital

The submissions by the B.C. Technology Industry Association and the Institute of Chartered Accountants of British Columbia spoke about the importance of venture capital, and how it is vital to a healthy and growing provincial technology sector. The Committee heard how there is a need to revitalize venture capital access in the province, and that the number of BC-based venture capital firms making new investments has declined from 11 in 2007 to only five today. To address this gap, it was recommended that the Province partner with the federal government to provide $100 million in a regional “fund of funds,” which invests in venture capital firms as opposed to directly in any companies.

The B.C. Technology Industry Association further recommended that the provincial government increase and enhance the small business venture capital program to $50 million in Budget 2015. The Committee was told that this will allow angel investors as well as retail venture capital corporations to make larger investments, and fill a near-term funding gap that is hampering the growth of early-stage technology companies.

Genome BC

The Delta public hearing included an appearance by Genome British Columbia, a non-profit organization that invests in and manages large-scale genomic research projects in areas such as human health, forestry, fisheries, agriculture, and the environment. The presentation provided an overview of Genome BC’s role in supporting world-class innovation relevant to the BC economy across a range of areas, and in attracting co-investment and engagement from local and global partners.

The Committee learned that Genome BC has a new strategic plan for 2015-2020, which will attract $350 million in research and development to ensure BC’s continued capability for world-class scientific and technical excellence in genomics. The plan also features two new programs, including a new entrepreneurship partnership program and a new Industry Innovation Program. A provincial commitment of $85 million up-front for the five-year plan ($17 million per year) was requested, which would enable Genome BC to leverage additional funds from the private sector, international sources, and the federal government.

Electric vehicles

The Committee received a significant number of written and form letter submissions on the topic of electric vehicles. Electric Mobility Canada, a national not-for-profit organization dedicated to promoting electric mobility, stated that increased adoption of electric vehicles in BC is important to achieving greenhouse gas reduction targets, improving urban air quality, and stimulating economic growth. Other groups, including electric vehicle companies and the Vancouver Electric Vehicle Association, similarly stated that the environmental benefits of electric vehicles can be instrumental in achieving Clean Energy Act goals. Submitters stated that, despite the proven successes of previous government programs and incentives, the last provincial budget reduced support for electric vehicles and infrastructure

A number of recommendations were made to provide incentives for greater use of electric vehicles in Budget 2015, including purchase rebates, provincial sales tax exemptions, and financial support for the installation of chargers in homes and businesses. The BC Sustainable Energy Association also recommended providing additional resources for staff in the Electricity and Alternative Energy Division of the Ministry of Energy and Mines to determine an appropriate regulatory model for electric vehicle charging, and to support the rapid development of charging infrastructure in BC.

Clean energy/climate action

Representatives of BC’s clean energy industry and environmental groups voiced strong support for clean energy initiatives to fulfill the provincial government’s commitments on climate action. Clean Energy BC, which represents private sector electricity developers and operators in wind, small hydro, biomass, biogas, and natural gas generation called on the Province to embrace a clean energy strategy, one that builds on the success of their sector and includes a prominent role for First Nations. Other renewable energy producers, such as Innergex and Marine Renewables, conveyed a similar message on the positive social, economic, and environmental benefits of renewable energy projects.

Environmental organizations such as the Pembina Institute were equally supportive of further development of BC’s clean energy sector, and proposed actions to further energy conservation in the province. Noting the successes of energy conservation initiatives such as the LiveSmart BC program and the Innovative Clean Energy Fund, Pembina advocated for Budget 2015 to be used as one of the building blocks for “climate action plan 2.0.”

South Okanagan Similkameen National Park

Support was expressed during the consultations for the creation of a National Park Reserve in the South Okanagan-Lower Similkameen region, which has been described as one of the most important ecosystems in the world and home to nearly 60 federally-listed endangered species. The proposed national park, which is supported by the federal government and requires provincial support to proceed, has been the subject of feasibility studies and local consultations.

Several groups, including the South Okanagan Similkameen National Park Network, Canadian Parks and Wilderness Society – BC Chapter, and the Greater Westside Board of Trade and South Okanagan Chamber of Commerce, voiced support for the project in their submissions to the Committee. The potential economic benefits of the proposed park were cited as including new jobs, tourism, First Nations opportunities, and economic diversification. They also stated that the cost of establishing the park would be borne by the federal government.

Invasive weed control

Three submissions to the Committee spoke about the damaging impact of invasive species and noxious weeds. In Cranbrook, the Meadowbrook Community Association told the Committee about the importance and urgency of controlling noxious weeds for economic, social, and environmental reasons. Noting how noxious weeds can impair the success of provincial initiatives to promote agriculture and tourism, the association called for a significant increase in current funding for education, treatment, and enforcement in the fight to combat the spread of noxious weeds. They also pointed out the provincial government’s responsibility to control noxious weeds on Crown lands and highways.

Two written submissions from regional invasive plant councils also requested more resources to combat the spread of invasive plants. The East Kootenay Invasive Plant Council and the Northwest Invasive Plant Council put forth recommendations for greater financial support to keep pace with invasive plant control, and more effective and reliable income sources to enable delivery of management plans. They also called on the provincial government to implement a government-directed alien invasive species program with enhanced legislation, regulations, and sufficient compliance and enforcement staff, and to develop a province-wide invasive species education and awareness campaign.

Urban deer

At the Cranbrook public hearing, the issue of urban deer was discussed by the City of Cranbrook. Mayor Wayne Stetski explained how several municipalities are spending financial and staff resources on urban deer management without compensation from the provincial government. He stated that discussions have taken place between the Minister of Forests, Lands and Natural Resource Operations and mayors from affected municipalities across BC, all of whom want more options and financial support to deal with urban deer.

A presenter in Victoria also linked overpopulation of deer in urban areas to increased risk of Lyme disease and other tick-borne illnesses. He recommended that the Province consider instructing municipalities to support deer culls in high-deer density tick-endemic areas, and to provide partial financing.

Conclusions

The Committee agrees that transportation infrastructure is key to provincial economic development, as well as corridor and gateway initiatives that link BC to external markets. Accordingly, it recommends that the provincial government maintain strategic leadership in this area through continued transportation infrastructure improvements. Recommendations are also presented to develop and implement a long-term strategy for the coastal ferry system, and for the Province to secure a long-term, stable funding source for public transit.

To capitalize on the economic potential of BC’s technology sector, recommendations are made to review the small business venture capital program budget, and to work with Genome BC and the federal government to identify ways to leverage and attract funding from the private sector and international sources for the next five-year plan.

On the environment, the Committee makes four recommendations, starting with a call for government to embrace a clean energy and energy conservation strategy. This strategy could build upon the success of the clean energy sector and programs to enable BC economic development, with prominent participation by First Nations. The Committee also makes recommendations to promote the use of electric vehicles, establish a new national park, and improve management of invasive species and urban deer.

Recommendations

The Committee recommends to the Legislative Assembly that the provincial government:

The Select Standing Committee on Finance and Government Services recommends to the Legislative Assembly of British Columbia that the provincial government:

© 2014 Legislative Assembly of British Columbia

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