Political analyst David Schreck parsed the Campbell government’s Second Quarter Report and noted that promised increases in capital spending aren’t happening, despite everyone seeming to agree that more funding of big projects is needed to help stimulate the flagging economy.
Why the hold-up? “B.C. has an enormous inventory of potential public sector capital projects: earthquake protection for schools, residential care facilities, and the Northeast rapid transit line should be high priorities,” wrote Schreck on his blog, Strategic Thoughts.
“Contrary to popular belief it is not easy to spend billions. Major capital projects require planning and engineering work before any construction workers are hired. More than a month after Campbell promised to accelerate capital spending we still haven't had a single announcement. There aren't shelf-ready projects with all the lengthy preparation work completed.”
But the downturn is fully evidenced in the government’s own second quarter numbers. “Revenues are down primarily because of drops in revenues from personal income tax, business income tax, the sales tax and natural resources. Housing starts and sales are down as are growth projections for the overall economy,” noted Schreck, a former NDP MLA and advisor NDP premier Glen Clark.
Yesterday Finance Minister Colin Hansen renewed his government’s pledge to balance the provincial budget, despite the global financial meltdown buffeting key B.C. industries including tourism, timber, mining, oil and gas.
Schreck faulted not only Premier Campbell but NDP Opposition Leader Carole James for remaining in “denial” and refusing to utter “the D word” even though, he said, deficit spending at the federal and provincial level is “inevitable.”
That had Schreck wondering if the BC Liberals have boxed themselves, and the province, into a budget-slashing corner: “Would a third term Campbell government suddenly behave like the unpopular, service cutting 2001 Campbell government?”
David Beers is editor of The Tyee.
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bcandbeyond
3 years ago
Campbell's Lost His Mind
He's more than in denial - he's sitting at his desk mumbling and drooling, wondering how it went so wrong....
www.bcandbeyond.wordpress.com
Luke Skywalker
3 years ago
OTOH, It's Interesting To Note...
From the G & B:
Sounds like the NDP wanna be the slashers. :)
And from the Province:
Strange times indeed esp. in the political silly season.
egmont rapids
3 years ago
Luke you very mis-leading
The gas tax/carbon tax is supposed to be revenue nuetrol?
By law the Liberals have to return the gas tax(they pick the winners and losers)
Reigning in spending --The NDP want a stop to to the 15 million per month on advertising/wage roll backs for civil servants
When is Campbell going to twin the port mann?
When is Campbell going to start the evergreen line?
Where is the money for these projects?
I agree with scrapping the gas tax and all the the gas tax refunds/
Frank
3 years ago
Campbell is broke
He doesn't have enough money for an infrastructure spending program because he already gave away the bank to his developer buddies and saddled us with a $100 billion in "future obligations".
Meanwhile he's even spending his seed corn to hire more public affairs people and advertise that Richmond skating oval in the local papers in Golden.
Brilliant strategy Gord
jimmy_laroux
3 years ago
Luke Skywalker
I thought the carbon tax was supposed to be revenue neutral.
Maybe they'll just change the accounting system, like the Liberals did :) Ha!
jimmy_laroux
3 years ago
Oops
I did not see that you've already pointed out that the carbon tax is meant to be revenue neutral.
jimmy_laroux
3 years ago
Oops again
That last post was addressed to egmont rapids.
egmont rapids
3 years ago
Jimmy_laroux
It needs to said again to LUKE
I thought the GAS TAX was supposed to be revenue nuetrol?
Perhaps this slip of the tongue by LUKE is very telling(revealing), where does the gas tax from BC Ferries-Translink-Hospitals-Schools--regional districts-Where does this money go?
We all knew that this Gordon Campbell GAS TAX was nothing more than a cash grab,thanks LUKE SKYWALKER for revealing the truth,the truth we all here at the TYEE knew!
Nice touch Frank--With the new ferries guzzling fuel faster than Gordon Campbell does martini`s at lunch break--Could this have been the plan all along?
A escalating gas/fuel/propane/natural gas FUEL TAX --Tax all goverment functions at all levels and funnel the money into Gordon Campbell`s grubby little hands!
Luke Skywalker
3 years ago
Huhhh???
Carbon Tax:
Revenue In Over 3 Years: ~$1.8 billion;
Since it's revenue neutral, that ~$1.8 billion is returned in terms of personal tax cuts;
No shortfall in government revenue there.
Carole wants to cut the carbon tax. Ergo, NO more revenue in to the tune of $1.8 billion.
Yet Carole wants to keep the ~$1.8 billion personal tax cuts.
What does that spell? A BIG hole in the provincial budget in terms of revenue to the tune of ~$600 million annually. But I have faith that Carole will still abide by her promise to balance the budget. ;)
As for budget hijinks, it is common ground in accounging circles and in the media that BC has the most stringent/transparent budget legislation in Canada.
http://www.canada.com/theprovince/news/story.html?id=0594e4bf-a8e6-4f21-a7a6-59ecfd422ad4
jimmy_laroux
3 years ago
Luke Skywalker
I see. I'd have imagined that someone like you would be behind these tax reductions, in order to "stimulate the economy in times of recession" or some analogous rationalisation. And I seem to remember that you felt that the carbon tax was "social engineering." Have you changed your mind?
This is of course totally false, as anyone with even a passing familiarity with provincial finances knows. Even you should know.
Oh, if only! If only the government couldn't hide billions of dollars in debt in P3s and call it "contractual obligations", or declare a "surplus" while the debt rose because, according to the Ministry of Finance...
Frank
3 years ago
No it isn't
Campbell has had no trouble hiding his $50 billion plus in "future obligations". In fact I never see that figure mentioned when the talking heads bring up debt.
Apparently our budget process is about as transparent as the way the Liberals hide the facts on child abuse. In either case you can never get the real facts because the Libs black out everything in the reports that's remotely negative.
According to a leaked report there's major child abuse problems in BC and the Libs are part of the problem. But they blacked that part out. So why would we expect otherwise from their budgets or anything else they put out.
egmont rapids
3 years ago
Luke/you are the king of silly
1.8 billion in gas tax revenue,1.8 billion borrowed dollars returned to the people,you bet the NDP can pull it off!
It is called accounting Luke,and when the NDP take over on MAY13th 2009---Maybe, just maybe when the gas tax gets tossed out along with the premiers liquour cabinet,perhaps those borrowed monies from the people that get refunded will vanish too!
I know of no people who would be upset about losing that massive 70.00$ tax cut in exchange for the removal of Campbell`s gas tax!
As for you Luke,go spin to the autistic people whom had their funding cut off,because everyone at this site except apparently you and Happy know that the 1.8 billion is not a tax cut at all--DUHHHHH--DUHHHH---DUHHHHH---DUHHHH
Collect 1.8 billion dollars then return it and it is magically a tax cut, do you think we just fell off a turnip truck!
We all know preimier GLUG GLUG GLUG is a little(maybe a lot)loopy but know your acting the fool LUKE!