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Falcon's Edge With Business Backers

Some supporters see a free enterprise stalwart, others praise his role in pushing through taxpayer funded megaprojects.

By Andrew MacLeod, 25 Feb 2011, TheTyee.ca

BC Liberal Kevin Falcon

Falcon: Raised by far the most money from business.

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Early in the campaign to pick a replacement for Gordon Campbell as leader of the BC Liberal Party, a person who will become premier of British Columbia, a business group released a series of announcements supporting Kevin Falcon's bid.

Those announcements from Falcon 20/20 talk about Falcon's record, his support of innovation, his decisiveness and his energy. But they offer little specifics about what business owners might want from a Falcon government.

Certainly business has made an investment. Falcon's campaign had raised over $700,000, much of it from businesses, outstripping the next best fundraising campaign, Christy Clark's, by nearly $200,000. What is that money expected to yield, should Falcon win his party's leadership on Saturday?

In interviews with The Tyee, several Falcon 20/20 supporters said what they really want is stability and business as usual. Other observers suggest that any of the four candidates to lead the Liberals will keep the status quo, and that with government debt ballooning that might not be a good thing.

"My vested interest is that we get a free enterprise government elected, and I believe the best person to lead a free enterprise government is Kevin," said Joe Segal, the founder of Kingswood Capital Corporation, a venture capital and real estate development company. "I think Kevin Falcon has the ability to run a major province. This is a major province and this is a major budget."

Asked for specifics, he said, "Overall fiduciary responsibility, spending, balancing a budget. Putting our money where it's valuable, not where people want it to go."

He believes Falcon would do that, he said. "Kevin has the best qualifications to run it as a business, to make decisions," he said. "You can't govern by consensus."

Recall that a common criticism of Campbell was that he centralized decision-making in his office and listened to few people. The style gets things done, but at a cost, critics point out.

More megaprojects

Peter Brown, the founder and chairman of the investment firm Canaccord, said he supports "The one that is most likely to hold the coalition together, the centre-right coalition, which is fragile."

Despite his name appearing on a Falcon 20/20 press release as a supporter, Brown said his preference is private and declined to speak in anything but general terms. "I'm more interested in the candidate who wants to build on the achievements of the Liberal Party, not tear them down," he said.

Brown named hosting the 2010 Olympic Winter Games, the billions spent on infrastructure, the Vancouver Convention Centre and extending light rail to Richmond as government successes that helped businesses.

Those achievements, it's worth noting, are blacktop politics and the kind of megaprojects that has the government spending money and pushing up the province's debt for things that arguably benefit businesses more than average British Columbians.

Brown also pointed to B.C. having the lowest taxes in Canada for people who earn less than $120,000 and the lowest small business tax. He mentioned the Site C hydroelectric plan as something that should be completed.

"It's that kind of positive record I'd like to see someone build on, not tear apart," he said.

Consistency brings stability

Peter Armstrong, the executive chairman, founder and a principal of the Armstrong Group, which owns the Rocky Mountaineer rail tour company, said businesses need stability from the government and that's what Falcon will deliver.

"I think government sets a tone, it doesn't matter who's in power," he said. "Having a consistent, well-thought-out approach is stabilizing for the economy."

That means a need for a leader who will articulate a position and deliver on it rather than flip-flopping on decisions, he said. "This whole process is about deciding who's going to be best leading the province for the next five to 10 years," he said. "I'm excited but also worried about what the decisions will be."

Asked which of the candidates worry him, Armstrong paused for a few seconds before saying, "The ones that impress me would be Kevin, Mike de Jong and George Abbott."

At the time of the interview there were six candidates in the race. Aside from the three Armstrong named, the only one remaining in the race is Christy Clark, who polls have said enjoys the greatest public approval and best chance to beat the NDP in the next election.

But as Armstrong points out, again without naming Clark, "This is not a popularity contest. It's about finding the right leader."

The leader will need to make calm, rational decisions on policies that allow the economy to expand, encourage investment and create the kind of meaningful jobs that keep people in the province, he said.

"It's not always about being popular," he said.

Career politician

As Will McMartin noted in a Tyee profile of Falcon, the candidate has little direct business experience himself and is more of a career politician having first gotten involved in student politics and the young Socreds at Simon Fraser University.

After the first Campbell government was elected in 2001, Falcon was a junior cabinet minister for deregulation. The position gave him opportunities to claim to have reduced red tape, presented as a barrier to business, even if it was not altogether clear which or how many regulations were cut.

Later as transportation minister, Falcon presided over some high-profile announcements including ending tolls on the Coquihalla Highway and committing taxpayer money to numerous road and other infrastructure projects.

As health minister, a job he left to run for the leadership, he rolled out patient-based funding announcements and mused about engaging B.C. in surgical tourism. People working in private clinics saw him as an ally, even as his ministry took steps to investigate and audit some of them.

In his campaign to lead the party Falcon has outlined various economic policies. They include eliminating the HST if that's what people vote for, but reducing it by one and possibly two per cent if it is kept. He would also "reduce onerous [Agricultural Land Reserve] processes on North Eastern farm land" and find ways to reduce "unnecessary burdens on growth in the province."

Growing debt Taxpayers concern

In the final days before the vote, the Canadian Taxpayers Federation's B.C. director Gregory Thomas was putting together a report on the various candidates.

"The general thing is we're finding Falcon is more of a hawk on taxes," he said. He wants to lower the HST immediately and has pledged to keep other taxes low.

By comparison, the CTF found, Clark has talked stronger about controlling deficits and Abbott is seen as having a more collaborative approach than any of the others.

"[Abbott uses] all that very, extremely, respectful language you're not accustomed to hearing out of the government side of the legislature very much," he said. "After 10 years of Campbell, typically when there's a leadership change the public likes to change up the attributes of the leader a bit."

If Falcon represents the status quo, that's not necessarily in his favour as far as Thomas is concerned.

Fraser Institute graphs track provincial spending compared to the size of the economy, he said. "It turns after the first mandate," he said, referring to a shift in how the Liberals governed after the 2005 election. "Debt's just hockey-sticking straight up now. There's never been anything like it in the history of the province."

The province's total debt was $34 billion in 2001 when Campbell came to power, he said. This year it's up to $47 billion and is projected to hit $60 billion within the next few years.

That debt includes money for roads, hospitals, BC Hydro commitments, the Canada Line and other projects, he said. "Some of that has Falcon all over it."

Falcon will spend to benefit biz: NDP

Liberals have argued that the debt is for capital projects that have lasting value and improve the lives of British Columbians. Thomas laughs at the idea, saying governments always argue that everything they do is an "investment" in the future.

Nor does the big spending fit with a traditional right-left spectrum that has free enterprise at one end, he said. "It's not socialism, it's not capitalism. What is it?"

Certainly the NDP has already started portraying Falcon as a Campbell clone. "I think he represents as much as any of them do, probably more so, the continuation of the policies of Gordon Campbell as it relates to business," said opposition finance critic Bruce Ralston. "The Gordon Campbell recipe was low taxes, loose regulation and privatization."

All the candidates would likely stay that course, said Ralston, but added, "I think he's probably the most fervent."

Added to that recipe is a willingness to spend government money on things of interest to business, he said. "Clearly they're prepared to use the powerful levers of state investment to benefit business in British Columbia," he said.

"That's not all bad," he added, but in some cases it can mean the public interest is badly served. Ralston raises the example of deals to buy private power through BC Hydro at rates that far exceed what the market for electricity says it should cost. The companies become viable, he said, but ratepayers are stuck with higher bills.

All candidates have business support: Hochstein

The Independent Contractors and Businesses Association's president Phil Hochstein said that he expects any of the candidates will maintain a good climate for business. He stressed that he and the ICBA is staying out of the leadership race.

"We support the party and will support the party whoever the leader is," he said.

The donation lists the campaigns released this week all included business donors and several companies gave to more than one campaign, he said. "All the candidates have business support," he said. "Each of the leadership campaigns spins things the way they spin them."

While the lists do show businesses contributed significant amounts of money to all four of the remaining candidates, the fact that Falcon has outraised the others suggests he enjoys the most support from business.

"All of the candidates, including Kevin, have an appreciation that for British Columbia to prosper and grow you need sound business policies," said Hochstein.

Falcon has a reputation for getting things done, he acknowledged, but quickly added that the others also have similar effort and drive. "They've all shown it. If you don't have it, nothing gets done in Victoria. There's so much inertia." He added, "If they don't have it they shouldn't be running."

There are always naysayers whenever the government does anything, he said, suggesting that even if the province were paving the streets with gold someone would be complaining that the gold wasn't pure enough.

Liberal Party members will vote Feb. 26. [Tyee]

Andrew MacLeod is The Tyee's legislative bureau chief in Victoria. Reach him here.

27 Comments:

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  • Van Isle

    1 year ago

    In another words Kevin gets

    In another words Kevin gets his marching orders from the Fraser Institute. If Hochstein is lerking around in the shadows, be afraid, very afraid.

  • seth

    1 year ago

    debt $100B not $47B

    Why does the Tyee keep erroneously reporting BC's Debt.

    Because of slick accounting procedures the $53P in signed 3P's obligations are not counted as debt just a footnote is the Auditor Generals report.

    http://www.straight.com/article-376187/vancouver/gabriel-yiu-bc-liberals-contractual-obligations-hide-magnitude-provincial-debt

    BC total debt is now $47B+53B = $100B

  • Skywalker

    1 year ago

    Great Seth!

    He even looks like a puppet on a string.

  • Terrys_Hot

    1 year ago

    Kevin

    All Kevin Falcon is is a clone of Campbell another Campbell with a different face

  • pladner

    1 year ago

    campaign slogan for Kevin Falcon

    My way and the highway

  • Jerry Munro

    1 year ago

    All The Girls in The Party Want a Well Dressed Business Man...

    "Early in the campaign to pick a replacement for Gordon Campbell as leader of the BC Liberal Party, a person who will become premier of British Columbia, a business group released a series of announcements supporting Kevin Falcon's bid. " Andrew MacLeod.

    Which pretty much makes it unanimous out there for the entire Party system. All of them, without exception known to me, sucking to get Business "friendly" with them. The one critical difference being of course, that the Liberals appear to be getting the actual business suitors around them. Whereas the NDP is still the wallflower at the Businessman's Association dance.

    I'm sure they have "some" shy business suitors of course, especially amongst "smaller" business, but likely not many bold enough to speak of their love out loud.

    Try harder you Social Democrats. A faint maidens heart never won fair beau. :-)

    Jerry
    http://coyotetimesca.blogspot.com/

  • carfreecity

    1 year ago

    my way and the hiway

    even tho i was impressed with reports of Falcon riding a bike around Victoria
    I was very unimpressed when I began to correspond with him about matters of traffic
    He just doesn't get it.
    He ignored everything I said and continued pressing the need for through ways and better traffic flow
    no response to the billions we spend on support for automobiles which includes hospital time and space, emergency response increase, police surveillance, more bad air from toxic exhaust going in the faces of our little ones and ofcourse incessant noise and all the spinoffs like drive ins for junk food and filthy streets,stressed people

  • Bob Watts

    1 year ago

    Buy A Leader!

    Tax Cuts, then Spend.
    Reverse Mortgage BC.

  • RickW

    1 year ago

    One thing is certain.....

    Joe Segal
    Peter Brown
    Peter Armstrong
    Phil Hochstein
    Fraser Institute in general

    ....all have one thing in common. They each of them are eying the treasury, with the idea of how much they can scoop from it, and the prosperity of the province be damned.

    I wonder how "enthusiastic" they would be if there was some sort of caveat put on profit-taking in businesses that involve government seed money for something like 20 years - just to give their "Mom & Apple Pie" promises a chance to blossom.......

  • LeftRightLeft

    1 year ago

    I'm no tourism expert but...

    Why is one of the biggest tourism biznessmen in the province (the Rocky Mountaineer guy) supporting the only Liberal candidate who hasn't said he'd bring back their marketing corporation Tourism BC that Campbell trashed... Wasn't the industry up in arms about that...? This world gets crazier all the time.

  • VivianLea Doubt

    1 year ago

    crazier? more dangerous, maybe...

    The most dangerous comment in the above article is the quote from Joe Segal:
    "Putting our money where it's valuable, not where people want it to go."

    What part of democracy doesn't Mr. Segal get? It is bad enough that the lot of them actually think that a government can be run as a business, but never have I seen a business 'leader' just outright declare that democracy is null and void.

    And what qualifications do these business 'leaders' have to pronounce on what kind of government we need? Do they run businesses that people are proud to work for? (Go on...ask some employees - I have.)Do they inspire respect and admiration? (Go on...ask their families and friends.) Do they do anything that can be considered creative, innovative, or excellent? (Go on...ask those people lining up to yell "all aboard" as the fabled Rocky Mountaineer is readied to depart.)

    I expect the business people quoted here have a rather narrow range of financial skills relating to making money,and to utilize some of their financial tools is not out of line - to exercise fiscal prudence, to attempt to balance budgets, to scrutinize spending carefully. I do think we should begin to alert the British Columbia electorate, however, that they have plans other than a democracy for our province.

  • Blake

    1 year ago

    John Ralston Saul Wrote in 1995

    "A society obsessed by property sucks essential capital out of growth areas and sinks it into the passive domain of land, bricks and mortar.

    Property development does not create growth, serving only two economic functions after its completion, rent collection and interest, both passive; or become the focus for financial speculation.

    Speculation, like the money market and armaments industry are all forms of pure inflation and drain capital from area of real investment and growth.

    The sign today that we are merely involved in speculation is that our buildings relate less and less to any primary use or need."

    And what have the BC Liberals been doing in the way of business for the past ten years?

  • Driftwood

    1 year ago

    wouldn't it be ironic?

    I hope that the current uprisings in Tunisia, Egypt and Libya have the good sense to avoid the blandishments of the free world (read CIA and Mossad and all corporate privateers) and completely overstep the western ideals of false democracy in favour of education for everyone and a vote for everyone on all the issues which affect them. If they get the vote, education will surely follow. Then we; who now live in a largely media controlled society (history, news, ideas) will have something to aspire to instead of another Liberal dead zone.

  • Lawrence

    1 year ago

    Another issue

    Along with the HST,the environment,railgate and rampant general corruption, the Soclibs just handed the NDP another issue that's going to hurt the consumer badly and that would be the massive increase in Hydro rates.
    Just another huge tax increase.

  • Lawrence

    1 year ago

    Seth

    Hiding the debt is another good issue
    The Soclibs have always done this going back to the wacky Bennett days.
    The MSM has always gone along with it.
    Calling debt by another name would make a good article for the Tyee.

    Oh yeah, I have to wonder why the NDP hasn't recommended to it's membership that they put the Tyee on their desktop and read it.

    Come on guys and put it right at the top of your E mail so people will read it.

    I would guess The Tyee was created to be an alternative to the MSM...

  • Jerry Munro

    1 year ago

    The Shape of Democracy to Come...Driftwood

    "...and completely overstep the western ideals of false democracy in favour of education for everyone and a vote for everyone on all the issues which affect them. If they get the vote, education will surely follow." Driftwood.

    I'm not so sure that it all flows quite so simply as that, though I do hear and sympathize with what you are saying, Except, I think the way it is actually more like to evolve is some more complex.

    First, especially in Egypt, but elsewhere in the Middle East as well, where there is a dominant military, at least the High Command of these military systems have historically benefited from, and served The Empire.... US imperial dominance of the region in particular. Overcoming this reality is still fraught with great risk for these peoples, and likely to take more time yet.

    Basically, these people look at us from their relatively more backward and impoverished states, and want what we have... presuming of course, that bourgeois parliamentary democracy is the key. And doubtless, in their circumstances, will be a huge gain for them.

    Everybody looks just ahead of themselves, if they look at all, and want what is just there currently out of their reach... for whatever reasons. Events more dragging our thinking kicking and screaming behind it pretty much, rather than leading... certainly most of the time in my experience. :-)

    I suggest that it is we in the "advanced capitalist" countries, now showing signs of becoming "retrogressive" and decadent, even criminal in this, the late stage of our development, who are the more likely to move society forward now, to the next stage of social and economic development, including democratic... as we become aware of the need to, and come to see how. (Outside the limits even of this bourgeois democracy and its gate keeping institutions.)

    continued next post...

  • Jerry Munro

    1 year ago

    The Shape of Democracy to Come II... Driftwood

    continuing from previous post...

    Indeed, some of the advanced system of organization of the people needed to do that are already in place... a "fairly" highly developed trade union movement (only saddled with a timid, in some cases even a corrupted and co-opted leadership)-, and other forms of organization amongst women and the poor etc. What's lacking is the level of understanding still, and the will... in my view. And the prerequisite sense of "solidarity".

    But what makes it all a bit more unpredictable even, and who will advance where and how far, us or they, is the role that technology (social media and such) has come to play in informing "the people" and helping them organize and to exert "power" upon and over national and global ruling classes and their systems of control. I don't think we still yet fully appreciate the potentially "liberating" role these technologies may be destined to have in shaping and giving expression to potential new forms of "popular" democracy, also in work places as well as broader communities.

    Though events in the Middle East should certainly be helping to give us all some kind of a clue and glimpse into our futures in this regard, as much as anyones anywhere else. Again, in my view, brother.

    Jerry
    http://coyotetimesca.blogspot.com/

  • EcoCollectivist

    1 year ago

    The end of The People and the end of BC

    Corporate interest is not the public's interest (although they do at times intersect but they are distinctly different). The amount of elitism coming out of Joe Segal from Kingswood Capital Corporation sickening.

    "Overall fiduciary responsibility, spending, balancing a budget. Putting our money where it's valuable, not where people want it to go" and "You can't govern by consensus".

    Firstly Mr. Fascist Segal what is "valuable". To you it is only Capital and its expansion. Society, the environment and community are only valuable in so far as they expand capital. This is sick, disgusting and facsit to its core. Does this man sound like he wants democracy or corporate autocracy. A Plato's Republic where the philosopher king is corporation and industry. Got to love conservatism. "Freedom" and "Democracy" for "Everyone"!!! However, "consensus" sucks! Keep saying it man. Keep drinking your shit koolaid.

    Remember everyone. You're morons. You're idiots. You're pathetic and incompetent. You need this vastly superior, one might say "Übermensch", dictators (whoops, i am sorry, "democratically elected with vast amounts of money") to show you the way. They will define value for you. They will tell you how to be valuable to society. Above all do not think you have the power to think!! Remember: Hate is love; Slavery is freedom; Autocracy is democracy...

    Conservatism. At last I love Big Brother!

  • Jerry Munro

    1 year ago

    EcoCollectivist...

    "Firstly Mr. Fascist Segal what is "valuable". To you it is only Capital and its expansion. Society, the environment and community are only valuable in so far as they expand capital. This is sick, disgusting and facsit to its core." wrote ecocollectivist

    ... who clearly understands also the critical, dynamic difference twixt truly "progressive collectivism" and "narrow bourgeois/corporate individualism", which only uses "the collective" purely for ruling class economic gain, and to support its own power. But is really the essence of narrow individualism. Bravo! You did not fall into the trap so many do, equating all collectivism, or community, with the fascism of the corporations. (Even Ed Deak, in my view, has trouble with this one, for all his experience.)

    A word of warning.... your words will drive the "private enterprisers" raving wild. But in my books, you are smack on absolutely right, brother. And a hell of a good piece of writing.

  • Driftwood

    1 year ago

    Great Comment Jerry Munro

    Can only agree with most of what you say and would like to add that the current model of democracy doesn't work or is a work in progress so hopefully it and we with it will evolve to direct democracy. If the current neo-colonial globalist government hadn't made such a balls-up of it because it is inherently designed for control by those who have the money to buy it, we wouldn't need a direct vote and local control of all the issues. The technology for open discussion and 'people decision making' is already here. Without insulting anyone too much it might even be said that this site is a primitive forerunner of the kind of voice and power everyone could have over their own lives.

    A real alternative is to mess with our DNA to make us happy slaves. What's wrong with that? '40 years is all the time that this world can afford you but it will be the best time you ever had scrubbing pots!'

  • Driftwood

    1 year ago

    ...the best time you ever had scrubbing pots,

    with your...

  • Driftwood

    1 year ago

    New, improved, longer lasting

    pencil eraser.

  • RickW

    1 year ago

    VivianLea Doubt

    Quote:
    What part of democracy doesn't Mr. Segal get?

    Uh.....all of it? Capitalists generally loathe democracy, 'cause then they may have to explain themselves to the crowds.

    As was generally explained here in the Tyee as well as elsewhere, NONE of the "pro-business" Liberal candidates has any business experience. Shucks, if our doctors and lawyers operated the way the BC Libs operated, all they's have to do is hang out their shingles and voila, they are in business.
    Surely you've heard that old saw about the operation being a success - it's just too bad the patient died? Well, in BC we have a lean, mean government. But it's too bad the province is dying........

  • Driftwood

    1 year ago

    Christy is more of the same

    There is an old Chinese proverb:
    'Out of the mouth of a dog ivory tusks will never grow.'
    Christy is a Campbellite and nothing will change. Didn't we just kick Gordo out?

    "Instead of giving a politician the keys to the province, it might be better to change the locks."
    Doug Larson

    We seem to have two political states here in BC:
    1. Outrage at how our government has totally screwed us.
    2. Complete forgetfulness as we vote for the same thing over and over. (Not including most people here who do indeed understand that it is not 'our government'.)

    'There's no trick to being a humorist when you have the whole government working for you.' Will Rogers; but he got it backwards. He went on to say:
    'Anything important is never left to the vote of the people. We only get to vote on some politician; we never get to vote on what he/she is to do.'

    Show me someone who knows what's best for you, and I'll show you someone who wishes to exploit your ignorance.

  • Driftwood

    1 year ago

    Democracy (and prosperity) will not come from the mouths

    of representative government. Democracy and prosperity will only come from the will of the people through a direct vote on issues which concern us. How did the BC Liberal government vote on privatizing BC Ferries, selling BC Rail, privatizing large chunks of BC Hydro and private 'run of river' contracts (which they say will 'only' raise our rates by 50%, but mark my words, rates will be at least 100% higher in three years) , the 'Prosperity' mine which would have poisoned the whole Fraser watershed, giving away for all time the power from Kemano, allowing fish farms to ruin the natural fishery which used to support thousands of happy BCers, introducing the HST which we all know benefits the rich at the expense of the poor? That is their 'legacy'. How would you have voted?
    By human nature 'representative democracy' has failed miserably and things will only get worse until we have a direct and binding voice in our government. As in 'Do you approve or disapprove of the sale of BC Rail?'
    I'm tired of being told that we are too stupid to make our own best decisions. We are the only ones who can.
    And just having that power will enormously improve our political awareness and indeed our whole future outlook.

  • RickW

    1 year ago

    Driftwood

    Quote:
    Complete forgetfulness as we vote for the same thing over and over

    "Classic" definition of insanity...........

  • morechatter

    1 year ago

    A Man of Many Secrets

    Falcon pushes through mega projects by keeping voters out of their business and that has got to cost.

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