De Jong Pounces on Watts Over $2.2-Billion ‘Mistake’

If BC Liberal leadership hopeful Dianne Watts were to make a mistake the size of one found in her platform during an election campaign, the NDP would ruthlessly exploit it, candidate Michael de Jong said during this week's candidates’ debate.

De Jong cited a pledge on page three of Watts’ platform that said any profits that Crown corporations make should stay with them.

“Using funds from Crown corporations to balance provincial budgets must stop,” her platform said. “Profits from Crown corporations should be used to reduce costs to customers.”

Of the provincial government’s $52.4 billion in revenue this year, about $3 billion is budgeted to come from Crown corporations. That includes $700 million from BC Hydro, $1.1 billion from the Liquor Distribution Branch and $1.3 billion from the B.C. Lottery Corporation.

Stopping that revenue stream would unnecessarily create a hole in the government’s budget, de Jong pointed out.

“Last year two Crown corporations, the B.C. Lottery Corporation and the Liquor Distribution Branch, transferred over $2 billion to general revenue to offset the cost of health care and education,” de Jong said. “There’s only two ways I can think of to make up that shortfall. One is to reduce service or the other is to raise taxes. Which one would you opt for?”

Watts is a former Surrey mayor who resigned as a Conservative member of parliament to join the race to replace Christy Clark as party leader. Many perceive her as leading the race, an impression supported by the number of questions directed to her by her opponents, who besides de Jong include MLAs Sam Sullivan, Michael Lee, Todd Stone and Andrew Wilkinson.

“When you have Crown corporations, Crown corporations have to have a purpose,” Watts said. “And that purpose, and we think about ICBC or BC Hydro, is exactly what I was referring to in my document. When we talk about that, the ratepayer has to come first. The drivers and premiums have to come first.”

She criticized the practice under the previous government, in which de Jong was finance minister, of taking billions of dollars from ICBC and BC Hydro while insurance premiums and hydro rates rose.

“What we need to be doing is leaving that money in ICBC,” Watts said. “When we look at BC Hydro we have to make sure the ratepayers, those costs come down. First and foremost the centre point has to be people.”

In response, de Jong pointed out that Watts’ platform applied the principle to all Crown corporations, not just ICBC and BC Hydro. “The information in your platform document was wrong. I think it represents a mistake. But here’s the problem, Dianne: it’s a $2.2-billion mistake.”

That kind of sloppiness would cost the party in an election, de Jong said. “As uncomfortable as it might be for me to pose this question to you, I can assure you of this, John Horgan and the NDP will be merciless if we make a $2.2-billion mistake... It’s a mistake. It’s a big mistake.”

While Liberal leadership candidates have focused on Watts, the NDP caucus singled out Stone in Tweets Tuesday, one of which said, “Todd Stone could have saved people hundreds of millions in #ICBC premiums annually. Instead, he decided to hide the deficits from the public!”

Attorney General David Eby has been drawing attention this week to the record of both Stone and de Jong on ICBC.

When Stone entered the race in October, the NDP caucus issued a press release headlined, “Todd Stone can’t fool people now, after years of neglecting B.C. families.”

Tuesday’s debate was the last before BC Liberal members vote Feb. 1 to 3. The party is using a preferential ballot where members rank candidates in their order of preference. They will be counted using a point system where 100 points are available from each of the province’s 87 constituencies.