Why March 24 Will Define BC's Fiscal Managers
That's when the Campbell government might defy its own contract with Ottawa, costing BC taxpayers millions.
BC Finance Minister Colin Hansen: Why wait?
British Columbians who care about the province's finances -- and, really, doesn't that include all of us? -- should circle March 24 on their calendars. That's because what occurs by that date will be worth millions of dollars to provincial taxpayers.
The nub of the issue is this:
The Campbell government merely needs to carry through on a single, simple clause in a contract it has signed with the federal government in order to trigger an extra half billion dollars in payments from the feds to hard-hit provincial coffers this year.
But so far it seems the Campbell government does not intend to follow through. And if it doesn't, the premier and his finance minister can expect some hard questions directed their way come March 25. Questions like:
Why are the taxpayers now being made to pay interest on hundreds of millions of dollars in debt that could have been avoided?
Is it because we are being forced to pick up the bill for the B.C. Liberal party's political strategy to win in 2014?
Assuming I have your interest, then, what follows is the explanation for why March 24 is such an important date for the B.C. taxpayer -- and possibly for the political future of the B.C. Liberals.
A contract in black and white
At issue on March 24 is the tabling of a bill to repeal B.C.'s social service (sales) tax. This legislation would make way for the new federal-provincial Harmonized Sales Tax (HST), which comes into effect in less than four months on July 1.
Negotiated last summer, the deal between Ottawa and Victoria requires the federal government to pay B.C. $1.599 billion in "transitional assistance." A schedule of the timing of those federal payments was included in the contract signed by both parties. [see pp. 45 and 46 at this link.]
According to the contract, Ottawa must give B.C. the first $750 million installment of those transition monies "within seven days of the tabling by the province of legislation to wind-down the Provincial Sales Tax (PST) of the province."
The second payment of $374 million is due "on the first business day following the implementation date," and the final $475 million installment will be paid exactly one year later.
In effect, British Columbia should get $750 million this spring, within a week of moving to repeal the provincial sales tax, $374 million on July 2, and $475 million on the same date in the next calendar year.
Pretty clear, right? If Victoria moves expeditiously to repeal the provincial sales tax by bringing in legislation before March 24 (which is seven days before the end of the fiscal period), B.C. will get a $750 million payment in the current fiscal year just ending (2009/10). This payment will be followed by transfers of $374 million and $475 million (in 2010/11 and 2011/12, respectively).
A mysterious intent to delay
However, as was reported in The Tyee last Tuesday by both Andrew MacLeod and this writer, the Campbell Liberals want to delay acceptance of those federal monies. This delay is wanted even though the provincial government expects a $2.8 billion deficit in the current fiscal year (which ends on March 31), and sees a $1.7 billion shortfall in the next fiscal period.
According to last Tuesday's budget and fiscal plan [see p. 12 at this link], B.C. wants to record just $250 million in federal transition monies this year (down from the contracted $750 million), and then $769 million and $580 million over the next two years.
The apparent reason the Campbell Liberals want to postpone those federal monies is that, as was outlined last summer on The Tyee, they want to deliberately create a massive post-election deficit -- a deficit which will gradually be whittled down to a balanced or surplus budget in advance of the next general election, which is scheduled for 2013.
The Campbell Liberals, therefore, believe that the federal HST monies are not required now, less than a year after the last general election. They are required later, closer to the next electoral contest. It's a political calculation, not a fiscal decision, that is motivating Victoria to seek to delay Ottawa's transition funding.
Get ready to pay unnecessary interest charges
There are at least three problems with that strategy. First, as The Tyee reported last week, because Victoria is currently recording sizeable fiscal deficits, British Columbians will be hit by unnecessary interest costs on the monies borrowed to cover the loss of the deferred HST transfers.
Consequently, the BC Liberals may be forced to explain why they're throwing away taxpayer monies on unnecessary interest charges, while at the same time cutting funding for such things as literacy programs, libraries, scholarships, the arts and sports programs. They are also capping transfers for health and education.
Second, there is that pesky contract Ottawa and Victoria signed last summer. We know that in the past the Campbell Liberals have shown little hesitation in ripping up contracts -- notably with Bill 29 in 2002, which abrogated a collective agreement between the province and the Health Employees' Union -- so they could deny union members the monies that were due to them.
Who knew that, despite the Liberal party's lack of respect for legal obligations, they now would attempt to do the same to themselves (or, more accurately, to B.C. taxpayers)?
Simply, the deal exists and the payment schedule is as clear as can be.
And, third, the B.C. government uses accrual accounting [see p. 45 at this link] to record revenues and expenditures. With the Ottawa-Victoria contract duly signed by both parties, the province's Comptroller General will have little choice but to record the federal transfers at the time they were intended (or expected) to be received, regardless of whether the Campbell Liberals actually accept them or not.
Why the wait, Minister Hansen?
There is one thing to remember: Finance Minister Colin Hansen could wait to table the legislation repealing B.C.'s sales tax until after March 24. That way, the seven-day period during which Ottawa has to give Victoria $750 million in HST transition monies could be pushed from 2009/10 to the following fiscal period, 2010/11.
And that means B.C. may not get any of the transition monies in current fiscal period -- not even the $250 million proposed in Hansen's latest budget.
The finance minister and his staff have had at least seven months to draft the required legislation. But whether or not he'll table such a bill in the legislature before March 24 remains to be seen.
So, circle that date on your calendar. It's worth millions of dollars to British Columbians. ![]()




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Dan the socialist
1 year ago
The real sad and pathetic
The real sad and pathetic part of all this is the majority of the people could care less. That is the reality.
If Campbell looks like he will go down in defeat he will be replaced with Dianne watts and the libs will win again. Kinda like when Bennett left and Vanderzalm won a 4th term in a row for the Liberals or as they were known then Social Credit.
I give up. So many people in this province choose to be ignorant on issues and it makes no sense to get wound up over it anymore when most people do not care. 50% never voted last time, next time it will be even less.
There is no one to vote for. The NDP will never get their act together, (hell they could not even run a campaign properly last year) Ms. James hurts the party more and more the longer she stays on and bringing back Moe was a big mistake...The NDP needs a Gary Doer or Jack Layton type to win next time.
Gary
1 year ago
The way I see it Dan the socialist
is that the people in the know start educating the ones who are apathetic. Get out there and show them what their apathy is bringing them.
Like you, I don't like the way the NDP is operated these days either. In fact until they pull up their socks I won't be contributing my meager pension pay to them.
What should be happening is that a new Party should have formed by now. One that will do the bidding of the people who pay their wages. One who will attempt to tear down what this present pack of liars has done to our railway, the ferries, BC hydro, the fish farming, MSP,slave wages, and a list of other things that used to operate in this province without putting major hardships on the people.
As far as James goes like Campbell she leads a party. She unlike Campbell appears to be non confrontational. Which sometimes could be a good thing. But not against a juvenile control freak like Campbell.And a party that appears to be very afraid of ejecting his ass out into the street, Where he may learn a thing or two about life.
I see a lot of dissing about Moe Sahota on the net but I never see the reasons. And even knowing why some people would be upset, those reasons pale in comparison to a convicted drunk driver who wouldn't do the right thing and step down. Then by the looks of it has tried to stomp on every citizen in this province and grind them into the ground.
So we either vote NDP to take our Province back, vote Green who don't yet, in my view, have a real platform, start a new party, or if you like vote Liberal where you will only get further behind.
JMHO
Takuan
1 year ago
a minorty government
forced to make coalitions and constantly shifting deals is too busy to really get on with raping the citizenry.
It's ALWAYS worth voting.
paperazzi
1 year ago
Apathy precedes rebellion
That's the problem, Dan - most of us have given up. We recognize that this government is corrupt and resistant (to put it mildly) to serving the people as it's supposed to. Campbell is there for the money and the power, that's it. Period.
We've spent a long, tiring decade trying to fight this dictator and we have completely and utterly failed on every account (except for selling off the Coquihalla - we were successful with that but it took a full 95% of the population of BC to rise up before King Campbell backed down). Fighting when you know you're going to lose gets exhausting after a while so no wonder most of us have given up. I have never missed a vote since the day I turned eighteen but guess what? I don't see the point in voting next election time. There is literally nobody worthy to vote for. For the first time in my voting life, I have lost interest.
Maybe we need to take a different tact: starting putting some serious pressure on the NDP to get rid of their leader. Otherwise this manipulative, sociopathic creep will be back in for another four years. And I think the BC collective is going to start getting really hostile if that happens.
alive
1 year ago
off topic
Did we just have a federal budget?
Where is the Tyee follow up?
Van Isle
1 year ago
Another reason to create a
Another reason to create a big deficit is so it gives them a reason to sell off BC assets. Maybe more choice crown land, another part of BC Hydro......? Just like Flaherty is saying he's going to do with Federal property.
Whiskey River
1 year ago
Very interesting
A shot in the dark...Political shennanigans costing the taxpayers $100 million dollars....
or second guessing the HST as political death!
I suspect it`s a little of both.
Fantastic Will!
Fiat lux
1 year ago
The most incomprehensible
The most incomprehensible part of these Reform/Conservative Party policies is: What are they trying to achieve? In whose service?
Why do they keep on calling themselves "Liberal" or "Conservative", why not just go for the time honoured name of "Fascist", and be done with it ?
A new party is a hopeless cause. It has been tried many times in the past years and they all fell by the roadside. I'm not happy about Layton either. He can't speak, has no policies and his TV debate with Harper during the last elections was a disaster.
Ed Deak.
Skywalker
1 year ago
Way to go Will!
I am not surprised that they would want to delay the receipt of funds to suit them even though it will cost the taxpayer. When a government is run by liars, anything goes. Makes you wonder when Bill Good will get outraged.
freebear
1 year ago
Bill Good is too busy romanticizing the Owelimpics!
And Monte Paulsen says squat about what Will turned up!
Kam Lee
1 year ago
Bill not so Good
Good old Bill G is romancing the flame again, or is it still? The province is falling to its knees, and he is still nuzzling up to the olys. Wow, he could work for gordo, if not already employed by him. He continually lies for gordo, and never talks tough about what is really happening. What a coward.
Whiskey River
1 year ago
@ Freebear
You are absoluetly correct,in listening to the Monday morning Quarterback show on cknw today..Monte Paulson mentioned absolutely zip..
We now know why Bill Teileman was replaced and Monte Paulson put in..
Monte Paulson sounds like a WEAK Norman Spectre...Basically Monte is bland, not one word about all the cuts, not one word about the great Will McMartin stories..
Today the Norman Specter replacement,this woman from City Caucas.com....Went on a rant about Healthcare spending is unsustainable, and Monte Paulson agreed, no mention that less GDP spending is spent on health today then a decade ago..
What is your purpose on cknw Monte?
OK,you are getting paid,does Bill Good tell you what you can or can`t say?
How many topics are off limits to you, no mention of toxic air in Prince George,no mention of the sham BC Budget...Besides doting about the Olympics AGAIN..What did you really contribute today?NOTHING...ZIP...NADA not a darn thing.
http://powellriverpersuader.blogspot.com/2010/03/gordon-campbell-turned-his-back-to.html
You could of mentioned the biggest story going on in BC right now,but no...Those damn olympic protesters...And planting the thought in BCers minds that if SOCHI Russia fails to get their olympics prepared it will come back to BC in 4 years...
Yea right, it has never happened in Olympic history..EVER...Despite Christy Clark last week blathering that it has happened before on 2 occasions...She cited "Lake Placid"
And when I sent her proof that it never happened..The silence from her was "Deafening"
Sheesh
RickW
1 year ago
The voters may be tired.....
....but that doesn't rule out ignorance. There is a reason why political parties don't haul out their "big guns" until just a few weeks before an election. Voters are notorious for remembering only the latest headline. Campbell has two full years to do the dirty deeds with complete immunity.
Wendy Bradley
1 year ago
Solution?
Great article...
But, I'm not sure how many of us in our busy, crammed lives will actually do anything about it except anonymously pontificate a bit here. Personally, I think it would be great to have a quick, little, EASY TO EMPLOY 'call to action' at the end of a well researched and articulated article like this. Possibly this would help your readers' precious time be spent trying to change the status-quo rather than simply reading about it. As it is, I feel some good ideas are getting claustrophobic in these little blue boxes due to lack of time, not will. Something to think about. With thanks –
freebear
1 year ago
Fiscal Snake Oil Salesman!
Where are the fiscal conservatives now?
Speak up!
greengreen
1 year ago
a dichotomy
If you think Carole James is bad....try Gordon Campbell. Oh, yes, we did...three times.
LindaLou
1 year ago
Mr.Hansen comments
was watching bc legislature on channel 59 and got so upset at the liberals and their stupidity, found myself screaming at them! Canadians and democracy!, it is ignorance and having no real knowledge of the political philosophy's is just waiting for men like Campbell and Hansen have teir way with us. We have men that don't like women in politics, women as leaders are really bad news for some. I for one will always vote for the NDP no matter who the leader is because I do have a political philosophy and that is the government is responsible to the people that they represent first before any government, federal or provincial and they need to listen and not do what we are against, like the HST. Personally I think the liberals are F####ing P##s and wish they would all go away and never return and that dumb face Harper to join them.
edh
1 year ago
Scare them straight, just vote!
If at least 80% of those eligable to vote in BC would actually vote, it would likely impact politicians to the point they might stop pulling these tricks. As it stands now, the message they get is that no one cares, or at least not enough of us care.
lynn
1 year ago
Another set-up
An important article.
Thanks for expanding on the revelations made in the previous Tyee articles.
Quote:"The Campbell Liberals, therefore, believe that the federal HST monies are not required now, less than a year after the last general election. They are required later, closer to the next electoral contest. It's a political calculation, not a fiscal decision, that is motivating Victoria to seek to delay Ottawa's transition funding." End of Quote.
In reality then - a sly circuitous route to the tune of at least 75 million dollars of our money is being recklessly toyed with to, in effect, benefit the next BCLiberal campaign by setting up the dominoes so that they intentionally fall in their favour -
Does that mean that by asking the old question: "who benefits?" it becomes clear that this is, in reality, a deceptive shuffle that acts as a kind of invisible "funding" for the next BCLiberal electoral campaign?
( A very good idea presented by Wendy Bradley in the comment above as well.)
Marysue52
1 year ago
we need an effective opposition
Dan the socialist says we need a Gary Doer or Jack Layton at the head of the BC NDP. No, what we need is a socialistic and environmentally sustainable-type of leader pf the New Democrats--not just Liberal Lite. We want something way different than what we've had for the last decade plus. We need to have a clear choice of someone and programs to vote FOR.
Fiat lux
1 year ago
Freebar asked where the
Freebar asked where the fiscal conservatives are now?
They're doing very well.
Maggie thatcher screwed up the British economy and lives happily every after.
Reagan doubled the US national debt in his 8 years.
He's gone now, but his heritage lives on in a bankrupt USA.
Mulroney also doubled Canada's debt and then sold the country off to the corporate mafia, calling it "free trade" that earned him a string of directorships and a multimillion income.
Campbell's first action was to cut corporate taxes to the bone and then down to nothing. We now have the highest cost of living with the highest child poverty rate and lowest minimum wage in Canada and more tax cuts to banks to come.
Harper is also cutting taxes, while setting banners up all around with "Canada for sale" on them and the more of the country he sells, the higher the GDP and "growth", while a million line up at the foodbanks and thousands are homeless in the richest country on Earth even by World Bank figures.
And this is what "fiscal conservativism" is about.
Ed Deak.
RossK
1 year ago
I Very, Very Much Appreciate Mr. McMartin's Follow-Up, But....
...It is very, very important to note that, as Andrew MacLeod noted in his piece that was posted almost immediately after the budget was tabled, Finance Minister Hansen actually suggested that the Feds might have a hand in the delay.
Here, precisely, is what Mr. MacLeod wrote in his piece that Mr. McMartin linked to above:
....The documents also show that the province received $250 million of that compensation in 2009-2010, instead of the planned $750 million. The shift was because of the federal government's cash flow, said Hansen. “It's not something we have unilateral say over.”....
So.
Does this not give every single political reporter in this province carte blanche to demand that Mr. Hansen answer the following direct question, immediately:
"Minister Hansen, did you, or any member of your Ministry or your government, have a hand in the $500 million dollar deferral in federal compensation?"
Now.
Why is it in the interest of all British Columbians for political reporters to demand an answer to this question?
Because then, regardless his answer, the Minister will be on the record such that we will know, with certainty, where the blame lies if $75 million dollars of British Columbians money down the drain come Mar 25th.
.
morechatter
1 year ago
We Need Accountable Government
Without that its like pirate season on the open seas as its a lawless land for some in very high places as their low down to their knees in black mud. We can blah, blah, blah about the bad state of affairs and how government did this and government did that but nothing comes of it. As long as the powers that be are not going to be held accountable then anything goes.
Now that is reality and something tells me British Columbinas aren't going to be to pleased when reality truly hits homes and its going to take more than their tax dollars being spent on advertissments telling them differently to change their minds. You have a government in power who will resort to anything to regain power and maintain it at all costs now isn't that a comforting thought when it comes to your futures and fortunes.
morechatter
1 year ago
I enjoyed the article
It rings true of the Liberals and helps keep readers informed and that is priceless at a time when there is a great deal out there that banks on keeping British Columbians misinformed at least until after the next election.
RickW
1 year ago
The Powell River Persuader, Re: HST
http://powellriverpersuader.blogspot.com/2010/03/hst-shell-game-continues.html
Whiskey River
1 year ago
HST FRAUD EXPOSED...Jack MINTZ
Jack mintz...Has done a 180 degree turn on the HST
Amazing what people will say for 12,000$ dollars
http://powellriverpersuader.blogspot.com/2010/03/hst-shell-game-continues.html
Fiat lux
1 year ago
Mintz is one of the great
Mintz is one of the great economists we have in this country, who are making these wonderful predictions, albeit always in the direction of the money flow. For 12,000 buck anybody could write an excellent prediction, and then run with the money.
After all, our esteemed PM Harper was also educated as economist at the U of Alberta and we can see the great job he's doing.
I fought for years against the US-Canada FTA and later against the NAFTA and still have a filing drawer full of the fantastic benefits these so called "free trade" deals were supposed to bring to Canada.
During the 1988 Leaders' TV depate Mulroney promised that the FTA would bring 250,000 new jobs to Canada, in his New Year's address, a few weeks later, they became the promise of 500,000 new jobs. A year later we've lost about the same number with the closing of thousands of manufacturing and other businesses.
The CD Howe Inst . predicted that women would be the biggest winners from the FTA. They were the biggest losers.
Judith Maxwell of the Economic Council promised 250,000 new women's jobs, at the very same time the Conference Board 125,000. Now most women's jobs are minimum wage part time, and you can see them in the foodbank lines.
The Economic Council forecast 188,000 jobs lost in "sunset industries", but then 439,000 gained. Why not 190,000 and 440,000, is one of those mysteries only PhD economists can understand and figure out, depending on what they drink, or smoke.
Which goes to show the value of Mr.Mintz predictions about the benefits of the HST.
A year from now we'll all be paying through the nose, but our wealth creating foreign investors will definitely be increasing the profits they're stealing from our pockets and the strings of directorships will be waiting for Messrs. Campbell and Hansen.
Well at least that will mean a couple of jobs and "economics are not an exact science"
Ed Deak.
Whiskey River
1 year ago
Thanks Ed
Today on cknw Jack Mintz cited how consumers prices went down in price in Atlantic Canada when they brought in the hst...And that is sorta true..Prices fell roughly 1%....But..
Housing and services went up in price...But one more thing...
Jack Mintz failed to mention that the PST..and GST in Atlantic Canada was 19% if you combined the taxes...7% gst..12% pst.
But as an enticement to harmonize to a HST..the combined rate was dropped to 15%...over a 4% drop in the overall tax level, yet the consumer only saw a 1% decrease in costs on some items..
Jack Mintz failed to mention that difference,John Macolm failed to ask any questions,even the questions I emailed him..
BCers would be pleased if our HST meant a total tax level of 8%...
Jack Mintz was a fraud by not pointing that out..You can`t compare apples to oranges...
If I was a teacher grading Jack Mintz`s 18 page report..He would get a big fat F...for that ommission.
Also in 2008 Jack Mintz stated there would be 5 years of job losses in Ontario with the implementation of the HST,with job losses stabilizing in the fifth year..
He goes onto say..Wages after 10 years would be slightly less,mainly because of higher cost of consumer goods and services..
Nothing but a "snake oil salesman"
netscaper2
1 year ago
When BC has an opposition party,
I think I'll vote for them. Anybody heard when
we might get one ?
Whiskey River
1 year ago
Netscape 2
Go ahead Netscape2,lame excuse for voting for criminals!
Ever watch the legislature? If you did you would realize that Gordon Campbell and all BC Liberals are liars,and the media is bought and paid for..The Likes of Michael Smyth/palmer/Les Leyne..
If the NDP ever pulled 1/10 of the shit that these LIEBERALS thieves have done, the headlines would be scorching 24/7
Figure it out eh!
crankypants
1 year ago
Re: opposition
Netscape 2
Our political system renders any opposition as a toothless entity if one party has a majority. Yes they can raise issues and concerns about legislation etc., but if the governing party has a majority it all goes for naught. This is why our political system sucks. It has no real checks and balances. Adoption of the STV may have tempered things somewhat but that ship has sailed and I think the only way we will ever get a true democracy is if the political party joins the dinosaurs on the extinction list.
Fiat lux
1 year ago
What we have is a
What we have is a dictatorship by a majority party.
God help us if Harper ever gets a majority !!!!!
The guy is a so called "economist" of the Mintz kind, from the same brainwash institute, who'll make Campbell look like a kindergarten kiddie.
Ed Deak.
seth
1 year ago
3Ps - BC's hidden debt - Will's next report?
Gabriel Yui at the str8 did an excellent report on the BC's Hidden debt. Hopefully Will will get on that one soon - specifically the IPP obligations.
http://www.straight.com/article-296582/vancouver/bc-liberal-budgets-hidden-debt-and-tax-hikes-threaten-economic-growth
Skywalker
1 year ago
Fighting the anti-HST with our money?
Isn't there something about the recall and initiative legislation which prevents the government from using taxpayer's money to fight against such a move. Now that VanderZalm has started the drive for signatures against the HST, the government uses our money to hire Jack Mintz to fight off Bill VanderZalm? Something is really rotten here. Perhaps Elections BC should investigate.
Karen Moe
1 year ago
We must all fight to save our province
Yes, the NDP had a terrible campaign last election and that is because they are and hopefully were caught up in 'a blame game.' The tired slogan 'no more broken promises' is indicative of this. The NDP needs to actually say what they will do instead of the Liberals did this and that etc in order to get people to care and have faith in them.
The majority of people who didn't vote in the last election are young people. During the last election, I went around and asked young people in Vancouver if they were going to vote and they said "Why should we? All they do is fight and blame each other!" I don't 'blame' youth for not voting or caring when such political 'strategies' are being utilized by the opposition. Perhaps use the passive voice: "This has been done and this is what we are going to do to fix it." Don't name names. We all know. Ignore the liberals and all of their manipulative and insidious head-games and build confidence through a thoroughly thought out action plan WITHOUT BLAME. It doesn't matter.
As things are so desperate for the future of OUR HOME and our democracy, anyone who is discontented and knows what is going on MUST get involved BEYOND VOTING in order to stop this horrific dictatorship that is destroying and will continue to destroy our home unless all of us in the know do something about it.
I don't think it is possible to form another party in time that will be able to win. We need to all join the NDP, reform it, demand a new leader with charisma who can capture our imaginations and instill confidence. Someone who will tell the voters what has been done and what we will do to fix it.
Skywalker
1 year ago
Youth voters?
Any person who uses this excuse not to vote, ""Why should we? All they do is fight and blame each other!" has not a clue of how British Parliamentary democracy function and, is too bloody lazy to make an effort to understand the issues and what the parties are saying. That is how we got a bunch of folk who no longer believe it is necessary to tell the truth to the voter. A Democracy requires the voter to do more than put an 'X' on a ballot. It requires some time to refl;ect on the issues and what is being said. As far as I am concerned nobody should get away with making a statement like that. It just shows their willingness to remain ignorant. That is likely the problem with youth.
Frank
1 year ago
Charisma
The Left doesn't need to find a charismatic leader, the Right has managed perfectly well over the last 30 years at the federal and provincial levels without a charismatic leader.
What the Left should do is offer an alternative and be vocal about how its different. None of this BS about appealing to the "centrists". There's far more apathetic non-voters than there are centrists.
And lastly, when elected show that what it says in a campaign it can be trusted to do when in office.
lynn
1 year ago
We await the answer:
Let's help keep RossK's excellent (and still unanswered) question in the forefront of this issue:
Quote:
"Does this not give every single political reporter in this province carte blanche to demand that Mr. Hansen answer the following direct question, immediately:
"Minister Hansen, did you, or any member of your Ministry or your government, have a hand in the $500 million dollar deferral in federal compensation?"
Now.
Why is it in the interest of all British Columbians for political reporters to demand an answer to this question?
Because then, regardless his answer, the Minister will be on the record such that we will know, with certainty, where the blame lies if $75 million dollars of British Columbians money down the drain come Mar 25th."
End of Quote.
Surely, there is one investigative reporter left in this province to demand this crucial question be answered immediately by Mr. Hansen?.....and surely it is the obligation and duty of the Opposition to ask this question in OUR legislature on OUR behalf....and to continue demanding an answer of Mr. Hansen until one has been satisfactorily given.
Karen Moe
1 year ago
We need people to care and to vote
In order for democracy to work (and often it seems like a very powerful myth making people think they are 'free' when they are not) an educated voter is needed. Also, of course, voters are needed! If people feel that nothing ever changes whether they vote or not, they will stop bothering to vote (and this is what has unfortunately happened in our so-called democracy).
I agree with Frank who says when elected a government must keep its campaign promises. This is certainly something that instills faith in the democratic process. We also need a leader that will command trust, speak clearly without evasive double-talk and pointless blaming of the other party. We need a leader who will make people care again and make them think/ know that their vote counts and that what is being campaigned and what will happen after they are elected is different from what is happening now. 'Charisma' means the ability to inspire followers/ supporters. If we don't need that right now to get people to not only vote differently but to actually vote at all, I don't know what we need.
Yes, 'youth' can be lazy and uninformed and brain-washed, but so can adults. We on the left with social and environmental consciences need to help to inform and educate and motivate. Fatalistically stating that the youth that are cynical about voting have no idea about how British Parliamentary Democracy functions and that they simply choose to remain ignorant is not going to get us anywhere in terms of saving our province from a dictatorship that is hell-bent on privatizing everything that we as British Columbians and Canadians hold dear (re: our water, our public power, our public health care, our wilderness, our fisheries our public education ... basically our human rights that the generations before us fought for and which are gradually and insidiously being taken away).
Alternative sources of media like the Tyee help to give citizens information not found in the main-stream media. This information needs to be spread to those who may not yet have the ability to reflect on issues. We all know that only 48% of the eligible voting public voted in the last provincial election. If more young people had voted, the outcome would have been different. We need to think of ways to help educate those who think voting doesn't change anything. Despite claims of laziness, we need them.
John Corman
1 year ago
Mr McMartin & the Banks
In your article about Canadian Banks you said "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"
I took exception to that statement and you responded that I should enquire with the government as to the actual taxes paid to the BC government by the banks. You and I can figure it out ourselves with out bothering with FOI requests. All we have to do is refer to the law of the land. Regulation #402 to the Income Tax Act is very clear as to how a corporation must apportion its profits to any province where it has a permanent establishment. (an ATM is one)
Using the Royal Bank as an example, according to its 2009 annual report (all numbers in millions) on page #121 it paid federal income taxes of $590. (I assume there's no capital taxes included) At a federal tax rate of 19% that implies taxable income of $3,105. If the Bank's profitability is consistent regarding population and BC has about 12% of Canada then, filling out Schedule 5 in accordance with Regulation #402, results in the Royal paying BC 11% (the BC rate) of 12% of $3,105 or about $41 million. That is not "almost nothing" as you suggest.
I wonder if you've actually thought this idea of yours all the way through. For example, could a bank just move its head quarters to Alberta and then pay nothing to Ontario? Doesn't make sense, does it.
G West
1 year ago
John Corman - assuming your figures are correct
I'd say, given the federal rate of 19% - and applying the 11% BC rate upon its ostensible taxable income of slightly more than 3 billion (your figures) dollars that the amount so generated is so small as to be insignificant - approximately 2.9% - or, as Mr. McMartin suggested - almost nothing. Bank profitability and shareholder returns - not to mention Ms Taylor's stipend are in no danger....
I'd say giving up the additional tax on capital (small as it was) - or the so-called minimum tax - was a very foolish move and Mr. McMartin's thesis is in no danger!
Particularly given the kinds of futile scratching in the dust the Finance Minster is engaging in these days to collect any spare change that's lying around.