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Throne speech: “Brace for recession” in BC

Today's throne speech acknowledged that British Columbians must “brace for a period of recession” and promised a mix of government restraint and public infrastructure spending to help.

“We live in a radically changed world,” Lieutenant Governor Steven Point said. “It is a tumultuous time of uncertainty and shaken assumptions that has left families and businesses wondering what hit them.”

A recession is coming, he said. “How deep it might be, or how long it will last, is impossible to know. Few, if any, saw the sheer force and speed of the decline's progression.”

Delivered by Point, the 40-page speech sets out the direction for the government for the coming year.

The government has identified up to $2 billion worth of infrastructure projects that can be accelerated and has submitted 400 proposals for cost sharing to the federal government, the speech said.

That adds to $10.6 billion in projects that are already underway, and $1.4 billion in local infrastructure projects. All told the construction spending represents about 88,000 jobs, he said.

Point's speech re-committed to not raising taxes and nixed a proposal to raise the minimum wage from $8, where it has been since 2001. “Now is not the time to impose hundreds of millions in new costs on small businesses through an increased minimum wage that will mean more job losses, will depress job creation and will hurt those it purports to help.”

Health and education spending will be increased, Point said. Health has taken an increasing share of the provincial budget over the past 30 years, he noted. “That trend will grow in the foreseeable future, as 90 percent of all budgeted new operating spending in the next three years will go to health care.”

The government will increase spending on elementary and high school education, despite falling enrollments, as well as on colleges and universities. But the government backed off on a plan to provide all-day voluntary kindergarten for five-year-old children. Thompson Rivers University in Kamloops will get a law school to be opened in collaboration with the University of Calgary.

“Education is the best economic development and health promotion program ever invented,” Point said. “In tight economic times, it is only smart to maintain and expand educational investments.”

The speech pledged to move forward on the Trade, Investment and Labour Mobility Agreement, create a Commercial Forest Reserve to keep logged lands in forestry, and expand electrical transmission capacity along Highway 37 and elsewhere. The government will require new public buildings to be built from wood, where the building code allows, and will push for a "wood first" policy throughout Canada.

It renewed commitment to the new relationship with First Nations. "We need to close the gaps in education, health, housing and economic opportunity that have for too long disadvantaged B.C.'s first citizens." The government is working with First Nations on a Recognition and Reconciliation Act that "will acknowledge . . . that Indigenous people have long lived throughout British Columbia and that this fact does not require proof."

“We will not be bullied by the moment,” Point concluded. “Let us not flinch from the difficult tests that lie ahead or from our responsibilities to the generations that follow.”

The government will release a budget tomorrow. Finance minister Colin Hansen said this morning that if the B.C. Liberals are re-elected in May, an updated budget will be presented in the fall.

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.

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  • quarry bay

    2 years ago

    Lame

    Campbell couldn`t raise the minimum wage during the cyclical commodity and construction boom,and of course Campbell won`t raise minimum wage during the BC Depression.

    Your a sorry excuse of a goverment.

    Wages frozen for deacade plus, break out the champaign Fraser institute!

  • melusine

    2 years ago

    Budget

    I hope that there is something in the budget for people with developmental disabilities that are extremely underfunded and this leaves the most vulnerable at risk.

  • quarry bay

    2 years ago

    Colin Hansen is a fibber.......

    Colin Hansen stated.......

    " I don`t know what the security cost are for olympic security but there will be enough money in the deficit budget to cover the security costs "

    How do you know Hansen?

    This is the worst throne speech the BC Liberals have produced.They never follow through on anything anyways but......

    When the Angus-Reid poll comes out next week Campbell will have a heart attack!

    Not one mention of the Gang epidemic or public safety.

    Hey Luke,too bad Gordon Campbell is going to lose the election but it looks like either way your out of a job/considering Campbell is going to slash and burn all the excess!

  • munroe

    2 years ago

    Throwing numbers around

    Throwing numbers around unchallenged is a Gordo trick. The reporting here has the Government claiming that some $12 Billion in public construction spending means 88,000 jobs. Almost 90% of the number is projects "underway". No explanation.

    Construction employment peaked at just under 140,000 in June 2008. Projects "underway" include the final stages of various Olympic related projects including RAV and the Sea to Sky and others like Golden Ears.

    The inference in the Throne Speech is that the Liberals are CREATING 88,000 jobs. Totally absurd and indefensible. With heavy service cuts in all but three Minitries, it will be lucky if the "new" spending REPLACES jobs lost in the public service.

    Then again, the ICBA and construction contractors who finance the Liberals so heavily will be pleased .....

  • Rod Smelser

    2 years ago

    When will the Liberals raise the minimum wage? Never.

    quarry bay
    Campbell couldn`t raise the minimum wage during the cyclical commodity and construction boom,and of course Campbell won`t raise minimum wage during the BC Depression.

    It's good point, quarry bay, I am glad you mentioned it. Unfortunately, this situation fails to register with the majority of workers/voters who are making average or above average incomes.

    If you cannot raise the minimum wage during a boom period of labour shortages and cannot do it during a recession (which is at least an arguable case on Campbell's part) then when? It seems to me that if you cannot do something on even numbered days, and cannot do it on odd numbered days, you're never going to do it, no matter what.

    Low wage workers are a small group that is easily overlooked by society, the commercial mass media, and political strategists.

  • morechatter

    2 years ago

    Where Did All BC's Money Go?

    You would think this Government would have saved a bundle for recessionary times as much as we like to believe there is abundance around the corner its good to save for a rainy day, especially Visionary Leaders like Campbell and his vision of the new ERA in BC. And its now pouring recessionary blues and not a dime to spare so Where or Where did All the Money Gone?

    Come on now I have been reading about this enormous wealth for the last eight years as we are living in the number one province in the world and its BOOMING,BOOMING, BOOMING. And Campbell and gang felt it an opportune time to strip all the Ministries of much needed funds as Campbell puts law in place to ensure Children in BC continue to be hardest hit in this country. Yet not a ounce of remorse but further commitment for the Liberals to ensure treatment of children only gets worst as Kiddy Stroll becomes over crowded. And it kinda makes you wonder if the Liberals even like children or maybe they do as they readily put them to the streets as actions speak louder than words. What do you think?

  • morechatter

    2 years ago

    Falling Enrollments?

    I wonder why that would be??? As there is many a family out there who can't find a day care or school to place their children in as all filled up. And the thirty percent this government says its putting into schools is that part of the percentage they took of as busily shutting down schools and programs in the best of times? And declining enrollments says it all as Campbell's government has ensured there is little opportunity out there for many as costs are out of control when it comes to the cost of education. Just ask any student struggling to pay the bills as then try to figure out how to pay back the loans as many are left crippled by Governments inability to meet the needs of all its citizens and not just the wealthy few it keeps company with.

  • quarry bay

    2 years ago

    Rod Smelser

    "Low wage earners are a small group that is easily overlooked by society,the commercial mass media,and political strategists."

    Agreed but......

    There are 300.000 thousand wage earners making minimum wage in BC,that is not exactly a small number!

    One thing I know for sure,if these people got a 2.00 per hour raise this money would go directly in the economy. What good does it do giving another 100.00$ tax cut to people that are working making 40.000.00 to 100.000.00 a year? They won`t buy any more or less.

    Tax cuts were pushed by George W Bush,what good did thet do?

    The Campbell/Bush doctrine of the "Trickle Down economy" doesn`t work, as a BC citizen ashamed of the "MORAL VACUUM" of Gordon Campbell and the BC Liberals,all I can say is...........

    "The people of BC have been trickled on and it is not money,it`s warm and yellow and melts snow"

    What amazes me is the citizens of BC of all political stripes know that Gordon Campbell is a proven liar,proven law breaker and people would still vote for him,and people wonder how Hitler pulled it off.

    " I am sad for Gordon Campbell,the man has a mental defect,he is uncaring,cold,calculated despot,he is worse the Hugo Chavez,worse than George Bush,he has caused billions of tears and worse,removed hope from the youth and underclass"

    There is a direct link between the raging crime war and Gordon Campbell,the link is............

    take a youth with limited parental support having to work and fend your way in this BC society, minimum wage or even 10.00$ per hour will not allow you to Rent/eat/clothe and transport yourself,the minimum break even wage for the lower mainland is 17.00 per hour,how many youth want to work full time and live on the streets,or work full time to be dirt poor having to go to food banks?

    It must make the gang life look OK--Money,car,cash,clothes etc etc.....

    Gordon Campbell is so OBTUSE that he can`t see the direct connection.(or can he?)

    Quarry bay

  • morechatter

    2 years ago

    Reagan's Trickle Down Economics

    Which I have always been under the firm belief when it came to Reagan's Economics, the only thing that trickled down is when the man forgot to zip up his pants as memory failed to serve him right along with the American people.

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    Off the Throne

    About The Hook

    The British Columbia legislature resumes sitting this week, but not before Premier Christy Clark outlined her spring agenda in an appearance on the Vancouver radio station where she used to work in what was pitched as a replacement for the throne speech. That agenda amounted to staying the course: focus on the economy, no money for teachers or anything else, and no higher taxes.

    This from a premier who won the leadership of her party on a "change" platform. Perhaps appropriate then that the government didn't bother with a more formal speech from the throne at a time when polls suggest an increasing number of people are wondering if the premier's going to, as they say, piss or get off the pot.

    -- Andrew MacLeod