In Tight Times, Campbell Gov't Chooses to Help Big Banks
Inept budgeters axed $100 million yearly tax revenue from fat financial institutions. And it gets worse.
Finance Minister Colin Hansen delivering BC's budget Tuesday
-
BC Budget cuts government jobs, steady on health and education
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Taylor Hired by Bank After Killing BC's Bank Tax
BC is broke but she could make $145,000 to $350,000 as a TD director.
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Campbell's carbon tax praised in Copenhagen
It used to be said of the New Democrats (when they were in government during the 1990s), that, such was their lack of business and financial expertise, they couldn't run a lemonade stand.
Sadly, with Gordon Campbell and his BC Liberals, British Columbia today has a government whose fiscal acumen is so abysmal, so evidently lacking, that they appear incapable of operating any business enterprise of any size.
It must be said that after eight years of manifest incompetence no further proof is required to prove the point, but the budget for fiscal 2010/11 definitively illustrates that this gang is fiscally clueless.
Consider two components of the budget unveiled yesterday by Finance Minister Colin Hansen. Keep in mind that B.C. is in the early stages of a series of sizeable deficits, with the government committed to balancing the province's books at the earliest opportunity.
Why, then, would Hansen willingly surrender tens of millions of dollars in annual revenues in taxes on the country's largest and most-profitable financial institutions?
Moreover, why would he knowingly incur tens of millions of dollars in unnecessary interest charges by deferring federal transfers?
As unbelievable as it seems, it's true. A careful reading of today's budget plan reveals at least two eyebrow-raising policy decisions taken by the Campbell Liberal government.
Unfortunately, those decisions will dearly cost B.C. taxpayers.
Total BC debt to soar
Before examining those two curious policy commitments, let's take a look at Victoria's overall finances. After running five operating surpluses (from 2004/05 to 2008/09), the Campbell government plunged back into the red with a 2009/10 shortfall of $2.8 billion.
Moreover, according to Hansen's latest forecast, B.C. will endure additional deficits of $1.7 billion, $945 million and $145 million in the next three fiscal years, from 2010/11 to 2012/13.
As a consequence of those operating shortfalls, plus a significant ramp-up in capital spending, B.C.'s total provincial-government debt -- which stood at $36.1 billion when the Campbell Liberals won election to government in 2001 (see page 98 here) -- will reach $47.7 billion in the coming fiscal year, and soar to $55.9 billion in 2012/13.
B.C.'s taxpayer-supported debt burden, again according to Hansen's budget, will climb from a low of 13.4 per cent of GDP in 2008/09, to 17.2 per cent in the current fiscal period, and peak at 17.9 per cent in 2011/12. Simply, B.C.'s once-rosy fiscal picture has turned dark, and will remain so for the foreseeable future.
Under such circumstances, one might think that Hansen and his BC Liberal colleagues would be desperate to obtain every legitimately-obtained revenue dollar, and, at the same time, strive to squelch every unnecessary expenditure.
For reasons that only can be described as bewildering, however, that's not the case.
Shutting off $100 million a year
The first questionable Campbell government policy decision regards taxes paid to the provincial treasury by Canada's big banks and other large financial institutions. Tyee readers will recall that Carole Taylor, Hansen's predecessor at the finance department, announced in Feb. 2008 that she intended to phase-out the Corporation Capital Tax over a three-year period.
The tax, which generated $100 million-plus annually for Victoria over most of the last decade, was applied mainly to the country's big banks. Headquartered in Toronto, those banks (and large insurance and trust companies) earn enormous profits in British Columbia, but pay almost nothing in provincial corporate income taxes.
The corporation capital tax was intended to ensure that British Columbians received some small portion of the banks' huge annual profits.
In recent years, however, Ottawa has pressured Canada's provincial governments to abolish their capital taxes, and offered financial incentives to do so.
Taylor succumbed to the federal government's blandishments, and in return for abolishing B.C.'s corporation capital tax, agreed that the province would receive a total of $48 million -- $27 million in the current fiscal period, and $21 million next year -- in compensation.
Adding financial insult to self-imposed injury
Now, some of The Tyee's more-astute readers will question the fiscal and business acumen of a government that knowingly surrenders revenues of $100 million-plus annually -- that's more than a billion dollars over a decade -- for a one-time payment of $48 million.
(Is anyone reminded of the old parable of Jack and the Beanstalk, in which Jack sold his mother's cow for three beans? Poor Jack looks like a financial wizard in comparison to Taylor and her BC Liberal colleagues.)
Still, B.C. could count on the banks to contribute something every year to the provincial treasury. That's because Taylor, at the same time as she repealed the corporation capital tax, introduced a new levy called the Financial Institutions Minimum Tax.
The new levy was intended to ensure that Canada's banks, insurance companies and trusts, all headquartered outside B.C. -- and very, very profitable -- nonetheless would continue to pay some monies (albeit much-reduced than formerly) directly into the provincial treasury.
That minimum tax rate was to kick-in in 2010/11 (the upcoming fiscal period), when the corporation capital tax was completely eliminated. The specific tax rate -- that is, the percentage of each bank's paid-up capital that would be paid in tax -- and total revenues were expected to be revealed by Hansen in yesterday's budget.
Shockingly, they were nowhere to be found. Hansen and his government colleagues, you see, instead opted to repeal the minimum financial institutions tax -- even before it takes effect!
So, two years after deciding to forego most of the $100 million-plus generated annually for the province by the corporation capital tax -- instead accepting a one-time payment $48 million -- the Campbell Liberals now have resolved to let Canada's big banks keep the entire amount and pay nothing to Victoria.
Run a lemonade stand? Please.
Targeting the least vulnerable
That decision by Hansen and the BC Liberals no doubt will please Taylor, who, following her decision to repeal the corporation capital tax and quit politics, accepted an appointment to the board of directors of Canada's second-largest bank, the Toronto-Dominion.
It also will excite the country's largest financial institutions, which, despite the recent global economic downturn, have racked up gigantic operating profits in the year just ended. In 2009, the Royal Bank had an annual profit of $3.9 billion; the T-D, $3.1 billion; Scotiabank, $3.1 billion; the BMO (the Bank of Montreal), $1.8 billion and the CIBC, $1.2 billion.
B.C.'s share of the pie? Nothing.
An HST federal payments switcheroo
The second puzzling Hansen decision involves B.C.'s new Harmonized Sales Tax.
Once again, the issue centres on a one-time federal transition payment. In this instance, it involves a $1.6 billion inducement offered by Ottawa to get B.C. to repeal its seven per cent social services (sales) tax in favour of Ottawa's goods and services tax, which will be applied in this province at a 12 per cent rate.
Last September, Hansen said that B.C. had opted to take the federal monies over a three-year period -- $750 million in 2009/10; $374 million in 2010/11; and $475 million in 2011/12 -- rather than in a lump sum. The timing of those federal payments, Hansen added, was solely at B.C.'s discretion.
But today's budget shows that the Campbell Liberals have decided to fudge the timing of those federal payments. Instead of receiving $750 million in the current fiscal year (which ends on March 31), Victoria will accept just $250 million from Ottawa -- thereby deferring $500 million in revenues to later years.
So, instead of obtaining Ottawa's HST inducements when they're needed most -- now, when B.C.'s fiscal deficit is at its nadir of $2.8 billion -- the Campbell government intends to shove those transfers to some point in the future.
Why ever would they do that? It's simple, really: the BC Liberals believe windfall federal government monies are most-needed -- not at the present time, just after they won a provincial-general election -- but just before the next general election, scheduled for 2013. That way, the Campbell government can be assured of recording a balanced (or surplus) budget when next they face the electorate.
For Liberals' political games, we'll pay $74 million
There's a cost (for taxpayers) to this, of course. Remember, B.C. is currently enduring sizeable fiscal deficits. To cover the immediate shortfall, we either could accept windfall revenues from Ottawa -- that is, the $1.6 billion offered by Ottawa to adopt the HST -- or borrow the monies required to cover the deficit.
By postponing the federal government's HST compensation, Campbell, Hansen and their BC Liberal colleagues have adopted the latter strategy.
Consequently, instead of accepting federal windfall payments immediately, we'll now be borrowing monies to cover the annual fiscal shortfall. And we'll be paying interest on those borrowed monies.
How much will that be? According to this author's calculations (using the Interest Rate Forecasts on page 119 of the government's Budget and Fiscal Plan, 2010/11 - 2012/13, here), the unnecessary interest charges incurred by the Campbell government will cost British Columbians $49.9 million in 2010/11 and $24.4 million in 2011/12. That's a total of $74.3 million over a two-year period.
Failing the lemonade test
British Columbians, it appears, seem cursed to suffer from the ineluctable fallibility of our fiscally-challenged provincial governments. We've seen ineptitude before (and often), but little if anything compares to the manifest incompetence of the current administration.
Unfit to run a lemonade stand? Sadly, Gordon Campbell and his BC Liberals appear incapable of managing even that minor task.
The worst thing is, B.C. taxpayers have to pay for their mistakes. ![[Tyee]](http://thetyee.cachefly.net/ui/img/ico_fishie.png){kind=small}
dwphoto
02-03-2010
budget
The old NDP fast ferries problem is looking smaller all the time.
Whiskey River
02-03-2010
Great story Will McMartin
Gordon Campbell and Colin Gansen also lied(IMO) about the HST in this budget..
According to Colin Hansen and Gordon Campbell ..They said that..
"Extra HST tax dollars collected will go to healthcare" snip
But that is a lie,there will be no "extra HST tax dollars"
According to the ministry of Finance, because of the HST exemptions the treasury will be short roughly $370 million dollars every year against pre-HST tax years.Even Vaughn Palmer reported the story...
http://powellriverpersuader.blogspot.com/2010/03/british-columbia-budget-greased-with.html
This story will get out,lets see Bill Good and Christy Clark and Keith Baldrey try and justify that,good stuff Will Mcmartin..You are the king of numbers!
Time to send your story to the press, oh yea,we don`t have any press in BC...only "stooges"
Cheers
Dan the socialist
03-03-2010
In 2013 they will win again
In 2013 they will win again anyway with a 40% voter turnout.
We have no alternative in BC. We might if the NDP smarten up and change their leader otherwise there is no hope anymore and voting is a waste of time. There is only way to get change in this province and country and it is not by the ballot box either...
bud carlos
03-03-2010
banks have feelings, too
The question is whether the Tyee and McMartin (where's he been?) will follow-up with a report on how the mainstream press (for want of a better description) deals with the issue; and whether the gov't attempts to repond to, and deflate, Will's
reading of the minutiae.
Fiat lux
03-03-2010
The biggest problem is that
The biggest problem is that the so called "average citizens" are totally clueless about what is going on, because looking for facts would overtax their brains and take time away from "having fun", waving Canadian flags and mittens "Made in China", and dressed in Nike shirts made in Asian kiddie labour sweatshops. .
All one can hear is: "We have to support big business so they can expand and create jobs"
When have these banks have created any jobs,? All we can see are staff reductions and the rest of the gang is creating minimum wage part time jobs, because "that's the wealth creating norm in this competitive age" while paying multimillion salaries to their executives, because "that's the wealth creating norm in this competitive age"
The head of the Royal Bank has made over $42. million in '08 and I wonder how much he has taken home last year and will this year?
To remain "competitive" of course. After all the poor guy must feed his family.
So, what is the newest definition of "theft" in this competitive age?
How much do these banks contribute to the BCLib coffers?
Ed Deak.
jimorsheryl
03-03-2010
What Choice Do We Have?
We KNOW the NDP could not run a lemonade stand, with certainty.
Now it appears the alternatives can't either.
So, what the H**L are we supposed to do?
G West
03-03-2010
jimorsheryl
Do I have to post that comparative list again?
The NDP record - compared with this gang's record - is fantastic.
I notice you disappeared after our last exchange - how come?
shepsil
03-03-2010
@jimorsheryl History says otherwise!
History shows that every provincial NDP gov't this country has had has brought in balanced budgets (save for one during a recession). If you read the mainstream media, they'll have you believing whatever they want!
demotto
03-03-2010
There is no money
Bills of Exchange Act so we can zero the accounts.
Van Isle
03-03-2010
jimorsheryl
The answer to your question is very simple. Vote for one of the "other" candidates in the next election. In the last provincal election both the Liberal and NDP candidates in my riding were absolute dolts. The other 3 candidates were far more articulate. I quess you know the definition of insanity? "When you do the same thing over and over again and expect different results".
freebear
03-03-2010
Olympic sized snow job!
"The first questionable Campbell government policy decision regards taxes paid to the provincial treasury by Canada's big banks and other large financial institutions. Tyee readers will recall that Carole Taylor, Hansen's predecessor at the finance department, announced in Feb. 2008 that she intended to phase-out the Corporation Capital Tax over a three-year period."
And where does Carole Taylor work now?
Where do you think Cambell will 'land'?
loveavocados
03-03-2010
Makes me sick...who keeps
Makes me sick...who keeps voting for these idiots? No one I know did/does...
Skywalker
03-03-2010
Excellent piece Will
Nice to have somebody put the pieces together. I suspect that the situation is even worse as all Liberal estimates of costs are inflated. I can't stand the sight of any of these business wizards as every time they open their mouths, they are lying. This morning the CBC carried a story to say that BC Hydro rate will go up 33 % in the next five years. Somebody has to pay for all that power bought at inflated prices just to make IPP's profitable. Can anyone say privatization. We got to get out of this debt hole somehow.
Again. Nice work Will.
alive
03-03-2010
just like a kid
When a kid runs a leomade stand, it is usually the mother who supplies the merchandize (for free).
So it is simple for the kid to get more customers by lowering the price, or giving it away for free.
So in fact our government is following the script of a kids business acumen
Matt T.
03-03-2010
jimorsheryl
The only other alternative is to vote NDP.
Are you not affected by Gordo's cuts? Carole came out today and stated that an NDP government would allow for more years of deficit spending to lessen the cuts.
Who cares about deficis and debt. Make thr rich pay.
seth
03-03-2010
IPP debt
Why is it that every single article on BC finances states the $47B in BC's on the books debt but misses the additional off the books $75B in BCHydro's Pirate Power obligations the other $10B in 3P's like the Abbotsford hospita.
Because of slick Neocon accounting processes, this debt is only mentioned as a note at the end of the annual Auditor Generals report.
demotto
03-03-2010
It is impossible
It is impossible to pay for anything as all money is debt. How can you possibly pay for something if all you are trying to pay with is debt. The only thing we can do is sign and claim back our credit to balance the books. As long as we continue to believe we can actually pay with debt instruments we are doomed.
Fiat lux
03-03-2010
Monetary economics
What an explanation - true but scary...........
It's a slow day in some little town........
The sun is hot....the streets are deserted.
Times are tough, everybody is in debt, and everybody lives on credit.
On this particular day a rich tourist from back west is driving thru town.
He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.
As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.
The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100 and heads off to pay his bill at the feed store.
The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her services on credit.
She, in a flash rushes to the motel and pays off her room bill with the motel owner.
The motel proprietor now places the $100 back on the counter so the rich traveler will not suspect anything.
At that moment the the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money & leaves.
NOW,... no one produced anything...and no one earned anything...however the whole town is out of debt and is looking to the future with much optimism.
And that, ladies and gentlemen is precisely how the U.S. and Canadian Governments are conducting business today!
RickW
03-03-2010
seth
My ol' daddy was fond of saying: "Figures don't lie - but liars can figure!"
Whiskey River
03-03-2010
Big Ed Deak...
You forgot to mention...
The town counts that money as $700 dollars worth of GDP..
And what town does the hooker who gives credit live in? Just Curious..LOL
seth
03-03-2010
More lemonaide
That $75B in IPP debt buys spring time only unsellable run of the river power from stock broker friends - $75B/Gw 30 times the current cost of the same amouint of high value baseload power from a new AECL ACR-1000 nuclear reactor and almost 75 times the cost when nuclear reactors move into mass production within the next ten years.
Frank
03-03-2010
seth
Someone's gotta pay for that IPP power, which is why our rates are going to go up.
Thank Berman and Suzuki.
barney
03-03-2010
Edit and fairytale revisionism
Hansen is misspelled 'Hanson' at least once in the article.
Recalling Jack & the Beanstalk, those weren't any old beans, but MAGIC beans! Didn't Jack plant one of those magic beans, which grew and grew and grew up into the clouds, enticing him to climb up, to a giant's kingdom full of riches, making off with a bag of cold coins, some solid gold goose eggs and a golden harp before hurrying back down the stalk, chopping it down and killing the giant? That sounds like a pretty decent deal to me. With all that gold and a slain giant, Jack and mum were pretty much set for life.
RickW
03-03-2010
barney
Sound pretty much like a good enough reason to vote for Jack (and the New Democrats)!
commonsense1
03-03-2010
One Trick Pony
The left always has one answer for government...tax and spend more. Why didn't McMartin suggest curtailing spending as a way to deal with the deficit?
If it were not for politics, the NDP would have been proud to submit Hansen's budget. The only difference would be Carole James would have had a much larger deficit, increased job killing taxes and no plan whatsoever to get out of debt.
archer2006
03-03-2010
Hydro increase
CBC got one of the big stories hidden in the budget - a 33% hydro rate increase over the next four years, starting with 9% this year. That's on top of significant increases over the last three years, bringing the increase to 50% plus since 2001.
This is the price of the liberal drive to privatize power generation.
The Blackbird
03-03-2010
Excellent investigative journalism
But instead of the Minister's image, would it not be more fitting to illustrate this story with this?
http://www.flickr.com/photos/nofutureface/4354959594
Fiat lux
03-03-2010
Profits are also taxes, but
Profits are also taxes, but without accountability.
Ed Deak.
Cynic
03-03-2010
Good article with the
Good article with the numbers, bad article otherwise. There is nothing inept, absurd, incompetent, or shocking. Why, Will, must you assume that these political people are working for us? After all this time and in the face of so much evidence, why is it so hard to acknowledge the truth about these people? Too bad, Will. You are perpetuating a myth that needs to be eradicated and thus are playing right into the elite's hands. Not to mention that you make no mention of the banking/money scam either. So the analysis is superficial. Without deeper scrutiny, we will get more of the same.
jimmy_laroux
03-03-2010
GREAT ARTICLE!
Glad you're back, Mr. McMartin!
jimmy_laroux
03-03-2010
How generous!
Through all the cuts they still managed to throw still more money to their friends:
http://www.vancouversun.com/business/technology/Clean+tech+sector+gets+million+boost/2635219/story.html
(In addition to the tens of billions of energy purchase agreements already signed.)
bud carlos
03-03-2010
Deeper scrutiny indeed!
There's lots of comment space left, Cynic, so why not treat us to some of that "deeper scrutiny" you espouse in your convoluted comment. Spare us the
blather. Give us some input.
Takuan
03-03-2010
mmm... in a global economy based
on real things of value (clean air, water, food, natural resources, room and liberty) we're already rich.
So the issue really is just one of allocation.
Eat the rich until they learn to share.
Mikemah
03-03-2010
corrupt govt
Who do you think they are going to support ? The guys that pay for their election campaigns. The fractured vote between the Greens, Marijuana Party and the NDP with Carole - give me a break along with voter apathy will pretty well guarantee the Liberals will be a shoe in again. Unless all those who oppose the Liberals come together we can expect more of the same.
soleprobe
03-03-2010
"treat us to some of that 'deeper scrutiny'"
He doesn’t have to… he’s stating the obvious:
How can giving the bankers billions of dollars of new provincial lending business to be paid for by BC taxpayers while at the same time exempting them from a $100 million in taxes be labeled as “inept, absurd, incompetent, or shocking?
How can a government who gives most of the public’s contracting business to one supplier, while at the same time exempting that same one supplier from taxes, be labeled as “inept”, “absurd”, or “incompetent”?
To label this type of in-your-face criminal activity as incompetent shows that you are either a complete dummy and have no ability to make proper analysis or you are purposely downplaying criminal activity: the outright theft of the taxpayer by the BC government in collusion with the banks. This downplaying of the criminal collusion between government and bankers for the purpose of robbing the public is something the banker-controlled establishment propagandists constantly do.
Some here even attempt to cover-up this crime by labeling this sort of high-level criminal collusion between government and banks as “capitalism”. Since when did government and banks in collusion to secretly rob the taxpayer of billions have anything to do with “capitalism”? Sounds more like fascism, socialism or communism to me… like the political views of the majority of tyee posters.
Do you get it now? Do you understand the difference between incompetence and outright in-your-face criminal activity? Or does this still sound like “blather” to you or is it still too “convoluted” for you?
ReeferMadness
03-03-2010
Familiar pattern
There is a familiar pattern that emerges when you look at the behaviour of right-wing governments. They slash their revenues when times are good. Then when times turn bad (as they inevitably do), the huge deficits give them an excuse to cut programs and put government employees out of work. There is a prevailing myth of right-wing governments as good fiscal managers. Find one.
RickW
03-03-2010
commonsense1 - not
Where DID you get your "playbook" from - the same place you get your paycheque? Or are you on the side of the devil willingly? There's a name for "you types".
So you imply that the Libs have a plan to get out of debt. Please to elucidate. $33 billion to $55 billion doesn't look to be going in the appropriate direction. And speaking of which, when the "one trick pony" party left power, the total provincial debt as at March 31, 2001 was $33.6 billion
http://thetyee.ca/Views/2004/08/09/BCDebt/
From this article:
B.C.'s total provincial-government debt......will reach $47.7 billion in the coming fiscal year, and soar to $55.9 billion in 2012/13
bfearn
03-03-2010
It is unlikly....
that a BC government that is eager to host a few weeks of games that will suck up billions is going to be concerned about helping those that already have too much.
It's called greed and is one of the most powerful forces in Western societies.
Matt T.
03-03-2010
BC Should Get In On the Federal Equalization Bandwagon
Quebec will receive $8,355 billion from the feds this year, Manitoba will receive $2,063 billion from the feds this year - all under equalization.
BC? Nothing. It's about time that BC also get on the federal equalization bandwagon/ gravy train like the other provinces. Then and only then will BC be able to receive the programs it deserves without any deficit. Carole James are you listening?
Skywalker
03-03-2010
Debt is gooood!
Because you blame it on services to the public. It is then an excuse to cut government, make it small enough to "drown in your bathtub" and then to recover you tax the already heavily taxed. The rich? Oh hell now, you get you hand in the wallets of the lower class. They aren't smart enough to know what is being done to them. Pity.
Fiat lux
03-03-2010
The funny thing about these
The funny thing about these "fiscally responsible" and "business friendly" governments is, that they always screw up their finances by giving them away to, what could be called "organized crime" ,the multinational corporate mafia.
Starting with Reagan, who was so fiscally responsible they he doubled the USA's debt in his 8 years, starting the country on its unrecoverable downhill slide.
Mulroney was a good apprentice to Reagan and did the same, earning a whole slew directorship on the way and now collecting millions every year.
Here in BC the first thing Campbell did, in the first week after he was elected, was to cut some $4. billion in corporate taxes and more and more ever since, while soon doubling the debt inherited from the "incompetent" NDP that couldn't run a lemonade stand but balanced the books.
Now, the main reason for the establishment of the Bank of Canada in 1934 was so that all levels of governments could borrow interest free, but this too has been thrown away for the sake of "business friendliness" and now our governments can borrow at high interest rates from private banks the monies the public already owns by law.
How stupid can ideologically warped minds get, by borrowing and paying interests for monies we own ?
Looks like we'll all have to pay interests to some bank when we move our wallets from one pocket to another, to be good "business friendly" citizens.
Ed Deak, Big Lake.
lynn
03-03-2010
Well said, Cynic.
Will, I always enjoy your articles...
But there is no lemonade stand.
And like so much in this province now....
It is just a front.
For pirates.
But how could these be "tight times", as the title of this article suggests?.... as just mere weeks ago no expense was spared, no discouraging word heard, when it came to came to snow ....sacred, sacred, snow.... truckload after truckload... even helicopter....after helicopter.
Snow seen as a necessity.....
As grand a necessity as an olive in a pirateer's martini.
Child poverty? Don't be silly.
The case is solved:
Let'em eat snow!
No, the booty abounds.
For those in on the skullduggery.
These are very, very good times.
For very, very, ruthless and self-serving pirates.
In that, their competency is boundless.
coyoteman
03-03-2010
Business as Usual...
"We KNOW the NDP could not run a lemonade stand, with certainty.
Now it appears the alternatives can't either.
So, what the H**L are we supposed to do?"
Take to the streets and raise a little Hell, for starters. (I know it's going to take more than just that before this period os over.)
Being nice and playing by the Bullshit Democracy Rules just doesn't cut it. Which is obvious to everyone by now, but the True Believers in the status quo Party System .
And the main thing that has to be done is to stop doing what clearly doesn't work, voting for any of the current crop of criminals and ass kissers. Then, like I say, take to the streets as the only real alternative,change the rules, and evolve new models starting from there.
The absolute worst, most ineffectual thing that could be done is, to continue playing by the Rules. They are rigged against "the masses" and favour only the ruling class and the "parties all" that play their game.
Business as usual is NOT an option.
The view from here in the boonies.
lynn
03-03-2010
And a very good view from the boonies it is:
"The absolute worst, most ineffectual thing that could be done is, to continue playing by the Rules. They are rigged against "the masses" and favour only the ruling class and the "parties all" that play their game."
It really is like a bad science fiction movie........with these insatiable shape-shifters now inhabiting the body of democracy and making it completely their own.....and for their own use alone.
RickW
03-03-2010
Coyoteman
The problem is that the individuals who constitute this "Liberal" clique thnk themselves immune to repercussions...........
Bob Watts
03-03-2010
I'm voting Liberal, that $80
I'm voting Liberal, that $80 or $6.66 dollars per month gets my vote.
Oh no it's 6.66 per month, that's the sign of the Beast. LOL.
Time for a great song all about money and life...
http://www.youtube.com/watch?v=t9u9mZz-o-g
Love that song!
This budget is going to cause more homelessness.
Seniors will be freezing next winter with the BC Hydro increases. Plus their families will have to pay the HST on funerals. Could it be Mom will be dumped at the side of the road to aviod the HST?
Death and Taxes Eh!
To me Campbell and the gang are playing Monopoly in Reverse.. Eg: Sell the railroads, close the schools, put the Bank on Free Parking so no one else can collect. Community Chest says go to take a Chance, which contains 6/49 tickets that are a year out of date and Void.
RossK
03-03-2010
Could someone please ask Mr. Hansen the following....
...Who, specifically, decided to forgo the $500 million in federal compensation owed to British Columbia for the HST in fiscal year 2009/10?
Why do I ask?
Well, yesterday, when Andrew MacLeod of The Tyee asked him about this issue Mr. Hansen apparently implied that it was a decision made by the Feds:
.....The shift (from $750 million to $250 million) was because of the federal government's cash flow, said Hansen. “It's not something we have unilateral say over.”......
At that time, this caused me to demand that Mr. Harper to start paying us our own money immediately.
However if, as Mr. McMartin is now suggesting based on earlier statements, Mr Hansen, or any other member of the government of British Columbia, had a hand in this decision it means that they threw at least $75 million of OUR money, away, on purpose, with malice aforethought, for absolutely no good reason other than to gain political leverage down the line.
And an action of that kind, if it did, indeed, take place is not simply a 'mistake' born out ineptitude but is, instead, a willful act of treason against all of the people of British Columbia regardless who they voted for.
.
offended
03-03-2010
I'm trying to find
a cheaper brand of cat food. Thanks Colin. Come to my house and I'll spew a hairball on ya.
seth
03-03-2010
Bite into this Will McMartin
Now we find a 33% increase in Hydro rates concealed in the budget. So check this out Will and report back
In BCHydro's 2009 annual report, it purchased in 2009 8374 Gwh for $544M from IPP's versus 7765 Gwh for $481M in 2008.
That works out to 10 cents a kwh (544-481)/(8374-7765) for new IPP contracts coming on line in fiscal 2009.
In the 2009 report BC Hydro admitted to having contracted for 14400 annually Gwh for 2011 service or 6026 more than 2009. Assuming the 10 cents in the 2008/09 the 2011 IPP total will grow to $1147M (.10*(14400-8374)+544). With the 12 cents/kwh in the JISEC report that grows to $1267. The 12 cents is the more accurate amount since all IPP contracts have an escalation clause. So by 2011 BCHydro is contracted to pay around $1300 pa for around 40 years a debt committment of $52B
Now lets add in the 5000 Gwh in contracts that the con artists at Canwest/Gordo have said BHydro must now sign. That's another $600M annually adding $24B bringing the total IPP debt committment to $76B.
If you add in $10 billion in other 3P's we now have $86B in off the books debt compared to the $32B on books debt that you uninformed pundits bring up when discussing BC's financial picture. With slick accounting and compliant reporters the 3P debt shows up as a tiny comment line about future obligations way in the back of the auditor general's report.
In 2009 BChydro total domestic purchases were $1236M
($544M IPP, $692M nonIPP). With Lekstrom's new order assuming no growth in non IPP domestic expenditures that amount will become $2559 ($1267+ $600 IPP, $692 non IPP) requiring BCHydro rates to more than double. 75% of BCHydro's expenditures will be IPP and BCHydro will be largely privatized.
A 2008 report from the big electric buyers group JIESC concludes that the Pirate power buys will result in a total $15B in losses for BCHydro over the 40 years of purchase commitments. Given that BCHydro is buying at 12 cents a kwh and selling into the spot market at 1 to 5 cents a kwh and into a future US nuclear market at .5 to 2 cents a kwh the $15B in losses seems optimistic - almost the entire $85 billion could be lost.
Today's spot price is $.04/kwh peak $.02/Kwh off peak, half that during the spring freshette.
If you look at the recent purchases and plans for high cost IPP power, Canwest/Gordo will have contracted for about 12000 Gwh's annual at around 12 cents a Gwh. Thats about 1.3 Gw baseload equivalent for $76B or $58B/Gw. Ontario recently rejected a quote as too expensive from Areva nuclear for $24B for 60 years of 30000 Gwh annually (3.3 Gw,$2.4B/Gw) in nukes all costs considered which works out to 1.5 cents a kwh .
Given that the BCHydro has sufficient resources for next several years why not wait until some sort of committment to elimating fossil fuels is made and the direction green technology is taking becomes firmly established.
OilbertaRedTory
04-03-2010
Nuclear Bites
... right in the wallet. Again.
Progress Energy has pushed back by 20 months [2016-'18] its schedule for bringing on-line two planned new nuclear reactors in Florida:
"In reaction to customer anger, Progress Energy [Florida] in April 2009 began deferring some of the costs of the Levy County [new nuclear] project.
Under the company’s new cost-recovery proposal Progress will bill ratepayers next year 30 cents per 1,000 KWH to pay for the power up-rate at Crystal River[nuclear plant], $1.69 per 1,000 KWH to recoup deferred costs from 2009 for the Levy County project and $4.70 per KWH to cover costs for the new [nuclear] reactors incurred in 2010.
Progress said that to fully recover those costs in 2010 as allowed it would have to bill customers about twice that – $12.63 per 1,000 KWH. "
= New nukes same as old nukes; timelines and budgets gone Chernobyl.
Takuan
04-03-2010
in order for BC to be broken up and sold,
what better way than to bankrupt its owners individually?
nutsnbolts
04-03-2010
Thanks Carole and TD...
Murray Dobbin's blog of a couple days ago has Mr. Big at the TD Bank saying that he actually thinks that they (TD) should be paying taxes!!? Easy to BS after they are exempted from paying any taxes at all in Ms. Carole Tayor's last budget. Oops, that was just before they hired her on at some huge salary and most the time she doesn't have to even show up, sick just insanely sick B.C. Liberals past and present. Mr Big at TD while you are talking so generously about paying your (fair share) of taxes make sure you put it in trust for the citizens of B.C. If the B.C. Liberal Mob gets it again it will just be returned to you, probably as undeliverable. No wonder we are #1 in the WORLD for organized crime, per capita, heading for #1. The so-called white collar crime is incalculable and probaby equals or exceeds organized crime. B.C. IS GONE, SOLD OUT BY B.C. LIBERALS.
Jean
MGS
04-03-2010
Where is the opposition?
It seems to me that that not enough people are aware of the Tyee and the NDP goverment is totally ineffective in getting out the message. Part of this new budget was just to reinstate some funding to health care and education,where the liberals stole it from in the first place. We all know what bingo gate was yet the liberals got away clean when the stole money fron the lottery corporation which I assumed was set up to fund sports, the arts etc. The global economy is not the problem. It's the peoples elected representatives where the problem lies.
RickW
04-03-2010
MGS
Perhaps Bill Tielman can address this very pertinent issue. I get all kinds of notifications from the NDP about the "evil" being committed by the Libs, but that is no different than just about anything I can read on the Tyee, et al.
Is Carole James being "shut out" by the MSM? Or has she opted to appeal to the intellectual part of the voting public, as opposed to the reactionary part?
alive
04-03-2010
the Media
A lot of people are wondering why we do not hear from the NDP and James in particular.
So far I have seen a four second soundbite on TV featuring James, the rest is paid yes-men that seen to get endless time to speak their script.
The only conclusion must be that we need a more aggressive leader who will shout and elbow through the crowd to be heard.
seth
04-03-2010
Oily
Heres Oily still cutting and pasting without a thought of his own.
Oily is a huge fan of tar sands oil.
US utilities 12 percent rate of return, the Nuclear Rejection Commission, and other US problems are a huge market opportunity for Canada's nuclear industry and the federal Liberal party has made AECL and the nuclear renaissance a key part of its industrial strategy.
Still Vogtle is going ahead in Geogia with Ap-1000's even at $5 watt 4 times the cost and twice the construction time frames of 4 American designed NRC approved AP-1000 sisters now well under way for 2013 service at $1.2 a watt (1 cent a kwh) in China - cheaper even than coal.
Oily here and his bud Harpo, because they are so in love Big Oil, see nuclear as the Big Oil's mortal enemy.
Tieleman
04-03-2010
Excellent work once again by McMartin
I had the pleasure of attending the Vancouver Budget lockup with Will McMartin and wish all readers could have seen him take Colin Hansen downtown over this misleading budget.
Great piece of analytical work that you won't find anywhere else - well done Will!
freebear
04-03-2010
Thieves, thieves, drinks and thieves!
Unf*%king beleivable!
coyoteman
04-03-2010
Candy Asses and The Future...
As much as I decry and am opposed to US Empire imperialism and militarism, and this country's subservience to it, it often happens, as it did during the US Revolutionary War, and the Vietnam period, that US citizens take the lead and show us kiss ass Canucks the way. And, if you are really paying attention to the world around you, though it started in Greece actually, it is again the US citizenry, for us, that is again showing the way forward. And it is again, the young of this time, taking the initiative and showing the way, on the streets and in the universities of The Empire heartland itself.
And how you elbow through "the system and its media" blockade, as someone above here expressed exasperation about, it is by, as are now the heavily invested in the future young of Amerika, taking action and to the streets, that you force yourself to the front of the line. And they are doing that around the issues that arise out of the crisis of capitalism and its Endless War view of the future of its ruling class, and taking to the streets in order to connect the dots for the sheeple masses who need to be awoken to be wolves.
It is not rocket science, but an elementary revolutionary process used again and again by the lower orders to move society forward another "qualitative" leap.
And we have arrived in such a historical place once again.
It's in the streets folks, as the young in Amerika itself are again beginning to point towards, that the new dynamic and the new political reality and process has to be begun. And we, in this rather pathetic country should not again be left behind, to suck at the teat of others are creation.
If you are having trouble figuring out where the direction to the futurer lies, check out the streets and young of Amerika itself right now. Then grab your crotch and check out to see if thee have the cajones and the ovaries to "rise" to the task that needs to be taken up.
On the other hand :-), candy asses don't deserve a future.
bearspaw
04-03-2010
And this is how
the province warrants a Triple A credit rating.
shepsil
04-03-2010
@ bearspaw Exactly!
Its not just this provincial gov't. It is the whole financial system. Moodys, Standards & Poors, they have all been shown to be complicit in the financial collapse of Oct. 08. They conspired to falsely rate as required and now they can only pretend they had good reason to do so. Much like the "Emperors Clothes". Now they can only pretend that they were right in the first place.
lynn
05-03-2010
RossK raises an excellent point:
"However if, as Mr. McMartin is now suggesting based on earlier statements, Mr Hansen, or any other member of the government of British Columbia, had a hand in this decision it means that they threw at least $75 million of OUR money, away, on purpose, with malice aforethought, for absolutely no good reason other than to gain political leverage down the line.
And an action of that kind, if it did, indeed, take place is not simply a 'mistake' born out ineptitude but is, instead, a willful act of treason against all of the people of British Columbia regardless who they voted for."
It could not be said better, RossK.
W5ActAlive
05-03-2010
Any Party ready to stand up to the Financiers has my vote!
"I care not what puppet is placed on the throne of England to rule the Empire, ... The man that controls Britain's money supply controls the British Empire. And I control the money supply."
--Baron Nathan Mayer de Rothschild (1777-1836)
"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson."
-- U.S. President Franklin D. Roosevelt in a letter written Nov. 21, 1933 to Colonel E. Mandell House
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."
-- Attributed to President Andrew Jackson, who in 1836 forced the closing of the Second Bank of the U.S. by revoking its charter
"A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world-- no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men."
-- President Woodrow Wilson
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
-- Henry Ford
FOR MORE INFO AND QUOTES: http://shadowreign.com/topics/financial-empires.html
aalborg
05-03-2010
How many brain dead sat
How many brain dead sat through that pinncacle of hypocracy for the past two weeks? Anyone with half a brain should know the Olympics will be our continuing shame and not the glory fest, over, of all the most ridiculous things, hockey. Canada forever? I hope we can feed our children on that phony display of love and affection.
W5ActAlive posts some wonderful quotes from history, but we have learned nothing from them. The dumbing of our society is our own fault and I place myself in that group. Our apathy is our downfall and will continue to be so. July 1st, the HST and the doubling of the current carbon tax should really hammer in the reality when all the patriots want to go camping and guzzle beer.
I'd say it was time to leave this sad, pathetic country, but I know most other places are just as downtrodden by their governments as we are. There really is no hope.
RossK
06-03-2010
Thanks Lynn
Lynn, above mentioned that she agreed that it is important to find out who, exactly, agreed to throw 75 million dollars of our money away when they made the decision to defer payment of $500 million dollars GST compensation from the Feds.
Now, I think it is time we started playing a little long division with these numbers.
For example, remember when Mary Polak and Gordon Campbell killed the intensive intervention program for autistic kids last fall?
Well, that program cost $5 million.
Which means, when you use that new-fangled math called "long division", that we could have funded 15 of those programs, right now, at no cost to the people of British Columbia if we hadn't thrown away that $75 million (again, for no good reason at all).
______
A tiny suggestion for the good folks who run the levers and gears at the mighty Tyee....could you maybe add a reply function (or at least a track back function) to previous comments to facilitate discussion on these massive threads that your stories are generating - thanks.
.
KitsCommuter
06-03-2010
A public provincial bank
There is a growing movement in the US to establish public state banks. The model that is pointed out is North Dakota that has had its own public state bank since 1919. North Dakota is one of the few states that is economically stable. So why couldn't we adopt a public provincial bank that we could use to fund our infrastructure needs. Instead of siphoning off the wealth of the province to commercial banks we could be keeping the wealth right here in BC amongst its citizens.
SharingIsGood
06-03-2010
KitsCommuter
Though I find your idea of a public bank, I would be more than a little worried if we were to trust it to the BC Liberals to run.
Publicly-owned ICBC had increased profits of $700,000,000 and rather than give drivers a rebate, the BC Liberal government treated it as a tax, putting those funds into general revenue. Imagine, a new tax that costs the average driver more than $250 per year, and we hear nothing about it. They have likewise mismanaged BC Hydro by requiring that BC Hydro purchase unneeded electricity from corporations (like Plutonic Power) whose profits predominately go to US controlled corporations (like General Electric).
We have a public bank called The Bank of Canada; yet, our federal government borrows (nonexistent) money from the private banks. The private banks say we have your loan covered, and the feds have more deficit money printed to spend on stimulous that we will have to repay to the private banks with interest. The bank of Canada could take care of loaning the money to the government so no money need go to private bank stockholders and executives and we could pay the deficit down much more quickly. We are fools for electing who we do and then letting those elected officials do what they do - all the while they tell us how good they have been at running our country/money.
nutsnbolts
06-03-2010
And more....
Campbell traded off millions/billions of dollars in Federal transfer money for infrastructure to get the Feds to buck up 1/2 of the over-kill $ 175 million!!! woops turned out to be $$$$ 900 million for his $$$$$$ 8++ billion party's security bill. That was so it didn't show on his books as if most of the Owly cost isn't missing from the Owly debt he put us into for 30-50 years.
dwphoto...Class act NDP ferries, sold for $ 20 million, Campbell was offered at least $85 million that we know of, sold by Washington Group for $300 million...and Campbell threw in a huge chunk of our waterfront property FOR FREE on the north shore where he insisted the fast ferries be moored FOR FREE to (American) Washington Group to show the world about the bad old NDP! Check out Campbell's c-class ferry disasters.
jimorsheryl, You sound like PAB (Public Accounts Bureau) to me, search dogs to keep track of anything said about Campbell and his followers.
Jean
KitsCommuter
07-03-2010
SharingIsGood
I can't account for why we keep putting these nefarious types into office. As others have pointed out we have become lazy and apathetic in our civic responsibilities and are much to blame for our current state of affairs. Part of the solution lies in the public's growing awareness of the fraud of our current private money creation system and the duplicity of our politicians in enabling the ruse. I realize we have had a public Bank of Canada since it was established under Mackenzie King's government and as well am aware of our federal politicians betrayal of the public's trust in not using it. That being said, I still feel it is a worth while endeavor to undertake the implementation of a public provincial bank that can issue credit to fund needed projects without incurring the burden of usury that we currently bear when the government allows this function to be undertaken by private commercial banks. There is much information on the internet now regarding this subject and it is only a matter of time before the public catches on and demands change from our public officials.
John Corman
07-03-2010
Those Banks
Mr. McMartin should get someone to show him a Schedule 5 (I think that's the number) which must be included in a corporation's annual income tax return if it did business in more than one province. It effectively allocates a corporation's profits to the various jurisdictions in Canada based on its activity in those provinces. Mr Mcmartin can rest assured that we, in BC, are getting our fair share.
Will McMartin
07-03-2010
Mr. Corman
If B.C. is getting "our fair share" of bank profits (in corporate income tax), why have successive B.C. finance ministers claimed otherwise? Let's look at comments in the legislature from two from the centre-right.
"The tax exists largely because the financial industry has often earned large profits and paid little income tax. The Corporation Capital Tax Act ensured that the financial industry paid some tax to the province." So said Mel Couvelier, Social Credit finance minister, on May 21, 1987.
He added that he was amending the Corporation Capital Tax to "ensure that corporation capital taxes on the financial industry are in effect a minimum provincial tax."
A similar view was offered by Carole Taylor, BC Liberal finance minister, on March 4, 2008, as she replaced the Corporation Capital Tax Act with a new Financial Institutions Minimum Tax Act.
She told the legislature that her "proposal will ensure that corporation capital taxes on the financial industry are in effect a minimum provincial tax."
So, you while think the banks are paying their fair share, centre-right government officials beg to differ — as do I.
There's one way to clear this up. Why don't you submit a request either to any of Canada's big 5 banks, or the B.C. ministry of finance, and find out how much the banks (or any just one of them) pay into the provincial treasury?
I eagerly await your information.