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BC Libs' Public Trust Deficit Just Grew
As bad numbers roll in, explanations for budget shortfall ring hollow.
Balancing act? Finance Minister Kevin Falcon.
Officials in the Ministry of Finance give information to British Columbians on the state of the province's finances only four times a year. One of those was Monday.
The Second Quarter Report released on Nov. 28 is concerning. In addition to saying that the expected deficit has increased to $3.1 billion, an increase of $313 million since the First Quarter Report, it provided page after page of dismal economic news. Federal transfers are down because of lower population growth for B.C. and even gambling and liquor revenues are down. Private sector forecasts for GDP growth have been downgraded for both 2011 and 2012.
The report says: "Employment in the province has been trending relatively flat since early 2010, with the exception of a notable jump in Sept. 2011 that added 31,600 jobs on the month. This gain was somewhat offset as total employment shed 10,800 jobs the following month." Many observers considered September to be a statistical abnormality since that many jobs were added in only one other month (Jan. 1999) since 1976. The November figures will be out on Dec. 2.
The report also says: "Despite increased sales activity on the year, consumer purchases in B.C. have stagnated in recent months. Further, B.C. recorded the slowest pace of growth in retail sales amongst provinces over the first eight months of 2011. Modest growth in employment, high debt loads and economic uncertainty have taken a toll on retail sales, which have barely regained levels observed prior to the onset of the 2008/09 recession. Solid consumer spending will be fundamental to a sustained economic recovery, going forward."
The post-HST factor
A backgrounder accompanied the release of the Report, providing little information on the slow progress towards eliminating the HST and restoring the PST.
Several weeks ago I received an email that alleged an assistant Deputy Minister of Finance at a town hall meeting in front of 150 Finance ministry staff, stated that the reason why the PST computer system wasn't upgraded was because they knew they were getting out of the PST administration. If that is true, it means that the Ministry of Finance was preparing for the HST prior to the May 2009 election.
I submitted a freedom of information request for the dates when various computer programs were last upgraded. I received a response saying that it would be easier to give me a briefing. I accepted that offer but the expected phone call never came so I'm back to waiting for a written response to my request.
If it is true that steps to no longer administer the PST were taken long before the HST was announced, it would help explain why it is taking so long to restore the PST. Failure to act more promptly on the result of the referendum vote is a drag on B.C.'s economy as decisions are postponed, particularly with respect to costly home construction or renovations.
Why not blame corporate tax cuts?
The issues around the transition back to the PST are but one example of why the Liberals have a deficit of public trust.
Another reason is the public has a long memory about what was said about the state of the province's finances before the May 2009 election and what was revealed after the election.
That is why it is hard to understand why Kevin Falcon insists his budget will be balanced for 2013-14; that budget will be presented before the May 2013 election but the First Quarter Financial Report on that budget won't be available until late Sept. 2013.
Of course, with May elections the budget estimates are not passed, requiring budget updates in September of election years. It is unlikely that any of Premier Clark's cabinet ministers could say anything that would give credibility to the financial figures they will throw out before the 2013 election, but acknowledging that revenues are inadequate to meet the costs of essential services would be a good start.
An admission that part of the reason for the short fall is corporate tax cuts that the province could ill afford would be too much to expect. ![]()




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Grumpy
25 weeks ago
We are witnessing the end.................
.........of a ten year ponzi scheme and like all ponzi schemes, they end badly for the punters. In BC's case, the punters are the taxpayers.
We have had ten years of fiscal flim-flam, where the wealthy elites have been given tax break after tax break, with the middle classes and the poor being served up as suckers paying the freight.
With massive user-fee down-loads, the economy slowly is coming to the braking point.
In BC we build build multi billion dollar metro's to suit the needs of land developers and not much cheaper light rail to suit the needs of transit customers.
In BC, we call gas taxes carbon taxes.
In BC we sell off provincial infrastructure to corporate friends to cook the provinces books.
In BC, government is seen as a vehicle to enrich corporate friends.
In BC we goldplate road and transit projects to divert tax monies to corporate and union friends, building grossly over-engineered and costly projects.
In BC, the Liberals have treated the BC economy as a gigantic slush fund, shoveling tax monies to one questionable project to another.
Now we have to pay the piper, yet the designers of this fiscal disaster, will sail away in their gold-plated lifeboats, laughing all the way to the bank.
Fiat lux
25 weeks ago
Isn't it interesting that
Isn't it interesting that "fiscally responsible conservatives" rack up incredible debts all over the world ?
Capitalist US is bankrupt and survives on communist China buying its worthless bonds to build up its own military and economic power to become world dictators.
It all started with "conservative" Reagan who racked up more debts in his 8 years than all previous Presidents combined. The same happened in Britain under Thatcher here under Mulroney and in BC under Campbell and successors, trebling the debt left by the NDP.
And all this mainly because "we can't tax the rich, because they create jobs"
Where ? In China and India? While destroying their home countries under the fraud of the "free movement of capital", "free trade" and "globalization" rackets ?
No wonder Harper wants to build the pipeline to Kitimat to make his communist brothers in China richer and more powerful.
Ed Deak.
Skywalker
25 weeks ago
Agree Grumpy and Fiat Lux.
Maybe we should have a "Fed-Up Rally" in Vancouver and near Falcon's riding. He certainly deserves one of his own. This whole BC Liberal farce is getting so predictable and tiresome.
boondoggle
25 weeks ago
More Fascist Shock Doctrine
Of course we are being primed to "privatize" (newspeak for give away) whatever is left of our resources and public infrastructure to appease banking gods and maintain our shaky credit rating. How is it these criminals rob us blind, burden our children and grandchildren with impossible debt, destroy our environment and continue to get re-elected? As Hitler once said "how lucky for the leaders that people do not think."
Fiat lux
25 weeks ago
Normal, rational people do
Normal, rational people do think, but conservatives believe.
And "faith conquers all" . Especially logical thought.
Faith is the tragedy of the human race.
Ed Deak.
Stephen Cooley
25 weeks ago
Memory
"Another reason is the public has a long memory about what was said about the state of the province's finances before the May 2009 election and what was revealed after the election."
The only recent example of 'long memory' is the regurgitation of the fast ferry construction overruns. Attempts to revisit the BC Rail sale, BC Hydro dismantling, ALR dismemberment, John Les, Kash Heed, ... are forgotten by BC's mass media as soon as possible. Many voters have accepted as Gospel that right leaning politicians are very good managers of the public purse even though the records show other wise. Gordon Wilson was no saint, neither was Gordon Campbell. Wilson was pilloried for his infidelity, [UNPROVEN ALLEGATION REMOVED. -MODERATOR.]. The NDP was pilloried for their capital tax, the Liberals are given a pass for their MSP premiums.
eight
25 weeks ago
Is the HST really dead?
The foot-dragging and irrational explanations for the "complicated" return to the PST/GST makes one wonder if some sort of HST rescue effort isn't under way. Perhaps a redesigned, more palatable (I know...I know) version as part of a snap spring election platform.
As far as the trust deficit David mentions, it's funny how job losses and deficits are always a result of the world economy, but increased employment and budget surpluses are always due to the wisdom of the sitting government.
Grumpy
25 weeks ago
The Liberal & Main Stream Media's credo ~
If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”
Joseph Goebbels
Barryeng
25 weeks ago
"it's funny how job losses
"it's funny how job losses and deficits are always a result of the world economy, but increased employment and budget surpluses are always due to the wisdom of the sitting government."
It's also funny that despite rhetoric to the contrary, the last time a "sitting government" showed a surplus, it was an NDP government,
OhCanada
25 weeks ago
...and sadly Grumpy is right
Let me add this line ...
In BC (and around the World), people keep on tolerating government and corporate criminals. What needs to happen to stop these psychopaths?
When will people realize enough is enough? When there will be nothing to eat, breath and live in dignity?
When will people rise and DEMAND change? Throw these pigs out of office and restore democracy?
When? I think the time is NOW!
OhCanada
25 weeks ago
I meant to post once ...
the system posted twice ....
pianosaurus rex
25 weeks ago
Trust deficit? Not likely
Lacking credibility on every issue in the province, the present government in BC could not obtain a trust deficit as there isn’t any to begin with.
Granville
25 weeks ago
How about a Grey Rage Rally?
Trouble is, we all have arthritis. Sleeping in a tent, on a foam pad is for the kids. Meh!
We don't even need to move them on; winter will do that, quite nicely.
Granville
25 weeks ago
How about a Grey Rage Rally?
Trouble is, we all have arthritis. Sleeping in a tent, on a foam pad is for the kids. Meh!
We don't even need to move them on; winter will do that, quite nicely.
sokaklar
25 weeks ago
makina türkiye
http://www.sokaklar.net/mark-twain-kimdir-biyografi-eserleri-16602/
http://www.sokaklar.net/makina-turkiye-16529/
thankss you
lizroy
25 weeks ago
Enough is enough? Where were you?
People ARE rising and demanding change, protesting and occupying while we sit here at our computers and bemoan the lack of spirit.
The occupy movement is not just a rag tag group of hippies but a growing force to be reckoned with. Well, maybe Canada has a lot less to bemoan but give the Harpers and Clarks time, keep voting them in and we'll have no choice but to actually join those 'hippies', take up a placard and demand change on the streets and not from the safety of our computer dens.
Lula
25 weeks ago
where is that Grey Power?
all right get ready all you grey=haired citizens.
On Thursday, Dec 8 come to the Hilton Hotel, Vancouver Airport to protest the Deltaport Terminal, Road and Rail Improvement Project.
10 Am.
Bring signs about the 99% or whatever you like.
Strapped governments( BC and Canada) are spending needless money on Port and Highway Expansion: destroying agricultural land and important migratory bird habitat, to say nothing of the fish, orca etc. habitat and Burns Bog. Also a Tax Free Zone is proposed. Another project to enrich the government's friends.
Lula
25 weeks ago
Grey Power Protest
sorry wrong Date
Tuesday Dec. 6
Imagine they are have three Stakeholder meetings at various hotels around the city and two Open houses in Delta. We have seen those before - just a lot of boards showing how wonderful the project is. If you ask a question or pose a comment the hired PR firm just smiles and says they don't know.
Lula
25 weeks ago
Grey Power Protest
sorry wrong Date
Tuesday Dec. 6
Imagine they are have three Stakeholder meetings at various hotels around the city and two Open houses in Delta. We have seen those before - just a lot of boards showing how wonderful the project is. If you ask a question or pose a comment the hired PR firm just smiles and says they don't know.
Granville
25 weeks ago
Lizroy: do you realise that only 26% of the electorate voted
in the last municipal election? That isn't compatible with any claim about involvement by the public.
The Occupiers are OK by me, but what, exactly do they want? "The System" has never been "fair" in the sense that we all have to work for a living, and there are not enough jobs around right now.
So what is wrong with self employment? Instead of bashing the Big Companies, folks who want to work should investigate self employment as an option.
don quixote
25 weeks ago
Union Friends?
Grumpy, I know lots of union leaders, and I can't think of a single one who is a friend of the BC Liberals. Can you?
Fiat lux
25 weeks ago
All the biggest crimes
All the biggest crimes against humanity in history have been licenced by "faith", religions and ideologies. Otherwise, people could or would be living for the most part in peace with each other.
The suicide bombers are licenced and persuaded by their priests to blow themselves up and kill as many infidels as they can, to get fast trip to the seventh level of heaven.
Here, in our society, universities are brainwashing the Priesthood of the Money God, the so called "economists" to commit crimes and destruction against humanity and the ecology as "wealth creation"
There's no point in demonstrating against governments, because what they're doing against us is taught in our universities as the "science of economics".
Including the deregulated money creation powers of the banks, used as weapons to enslave us.
So, where are the demonstrations against the professors who are brainwashing their students, and the public, with this criminal monetary crap at the intellectual level of Mao's Cultural Revolution ?
Harper's actions are the best example of what happens when a low level mind is brainwashed in our "institutions of teaching" and not "learning".
Ed Deak.
Lula
25 weeks ago
Demonstrations
fiat Lux
You obviously believe that demonstrations don't matter, and to a certain extent you are correct. However making submissions to the Public Consultations on the Deltaport Terminal, Road and Rail Improvement Project isn't any better. At least a demonstration with a handout of facts might get some publicity.
do not forget the Occupy movement - it is not going away!
Vox.Pop
25 weeks ago
Computer Lies
As a long-time IT expert, I can tell everyone that using computer excuses for having to keep the PST is pure BS. Even if they sold the computer they still have backup media of the programs & data that could be installed on a rented computer in a day.
Do not give these liars an inch - they always lie.
If Falcon were Pinocchio he would be falling over his nose every time he opened his mouth.
raging senior
25 weeks ago
BC GOVERNMENT TRUST????
I lost all trust in Government with the sale of BC RAIL,the promise was "WE WILL NOT SELL BC RAIL!! Bills 27 & 28 took $285 million dollars from the Education system, every year for the past 10 years - where did this money go to?? Where did the $1 billion go that was paid to the Gov.for the 999 year lease for BC Rail?? corporate tax breaks for the Corps. & the wealthy?? 2009 Provincial Election, budget deficet $485 million, not one penny more?? Reality $2 billion, good fiskal managers?? BC HYDRO is on life support, buying power from INDEPENDENT POWER PRODUCERS - Gengeral Electric, Ledcor and others at 4 times the price that it can be sold, we the Hyro users are paying for the infrastucture of the IPPs, we have already paid for BC Hydro's infrastructure. So why do they keep getting re-elected?? better dead than RED. Now after taking $800 million from both BC Hyrdo and ICBC, we are getting rate increases from both - BETTER DEAD THAN RED ??
Fiat lux
25 weeks ago
Lula... I didn't say
Lula... I didn't say demonstrations don't matter, but that they're directed at the wrong targets.
Even economies based on stockmarkets, after they've ruined economies and the lives of billions of people, time after time, all over the world, are based on the junk taught in our universities as a "science"
Ed Deak.
Lula
25 weeks ago
New Date Port expansion Demo at the Airport Hilton
10 AM Wednesday Dec. 7
sorry about the confusion. but hey you could pick Dec. 6, 10 Am Delta Town and Country Inn or Dec 8, 7:30 AM at the Goldcorp Centre for the Arts(SFU)---maybe they will serve breakfast with our tax dollars!!!
RickW
25 weeks ago
I found it "amusing".....
....that Falcon had to wait until Flaherty announced the Harper Conservatives wouldn't achieve its "goal" before jumping on that convenient bandwagon...........
igbymac
25 weeks ago
Fiat lux
Good post above, but I would have you consider that OWS is as much about propagandizing the public about the crimes going on, letting other like-minded people know that there are far more progressives around than given credit for, as it is about targeting this or that outpost of state.
That said, I absolutely agree that the economics departments of the universities are teaching Milton Friedman-styled ideas as science, and not merely model theory.
Here is a clip from 17 years ago where two capitalists go after one another, one with a conscience and lots of experience; the other a government recruit with her BS meter going off the charts. I think time will show who was correct within the context:
Sir James Goldsmith, a Captain of Industry debates GATT with Laura Tyson, President Clinton's Council of Economic Advisers
igbymac
25 weeks ago
I read this just two minutes ago, on topic to above
Ralph Nader on Free Trade and economic schooling
Fiat lux
25 weeks ago
Igby.... I've been fighting
Igby.... I've been fighting and have a solid paper trail, against this "free trade " fraud since the middle of the '80s, when Mulroney forced it on us with 43% of the votes, now beaten by Harper with 39%, claiming dictatorial powers with a "majority".
It was obvious from the beginning that the whole purpose of "free trade" was and still is, grand theft and the removal of democratic decision making powers from and by the public.
Sooner, or later people will wake up, but before that the destruction of humanity and the environment, by these criminals will go in unabated. Even if they call themselves "professors" and "conservatives".
Ed Deak.
Granville
25 weeks ago
Who would want to be a minister of finance?
Seriously. They are an Endangered Species.
Frank
25 weeks ago
How will the rich survive this?
So the public coffers that have been supporting the rich for the last decade are drying up?
I'm sure half of BC will go to bed tonight wondering how the rich will survive another week without the rest of us paying their way.
God knows there must be another forest or a public company or something we can give to them to keep them in race horses and crystal.
Wordspinner
24 weeks ago
Spinning the Budget
The Finance Minister blames consumers and corporations in BC for causing the Liberals mistaken budget prediction. We just didn't work hard enough to generate enough revenue to yield more tax. Can anyone really accept this ridiculous perspective as credible?
Secondly the Finance Minister blames the Chinese for not keeping up their demand for BC's lumber products as another cause of the increased deficit. This, despite this month's BC Business magazine report that lumber exports to China went up by 75% this year. Can anyone actually accept this gross mistake as credible?