'We're borrowing to build as opposed to buying groceries

B.C. back in black, deep in debt

NDP denounced the pre-election spending plan as a "bogus budget" but audited books show health spending reined in, books balanced

VICTORIA – When the audited public accounts confirmed a $353 million surplus for the last fiscal year, B.C. Liberal political staff were quick to remind reporters of the NDP’s main theme from last year’s election campaign.

Pages of election quotes from almost every NDP MLA were waiting to be distributed. It was a “bogus budget,” one of the more polite tags applied to the government’s pre-election fiscal plan.

“It underestimates the costs in a whole bunch of ministries and we’re going to have to review that because all of the decisions that we propose in our platform will have to be implemented,” said then-leader Adrian Dix, describing the NDP’s plans to tax and spend more.

Skeena MLA Robin Austin targeted health care in the budget debate: “Bearing in mind that our population is actually increasing, bearing in mind that our population is aging, I think it’s very unrealistic to think we can actually limit health care expenditures to 2.7 per cent.”

As it turned out, health care spending grew by just over two per cent. It still went up by $360 million from the previous year, but after annual increases of six or seven per cent had become the norm, this is quite an achievement. New agreements remain to be negotiated with doctors and nurses, so we’re unlikely to see the same cost control results for the current year.

Ottawa’s health care transfer payment formula has changed, and increases are to be capped at three per cent a year by 2016, so this is the kind of spending restraint all provinces are expected to produce.

Education was the only other ministry to receive significant extra funding last year, up $299 million despite continuing enrolment decline. Like health, the education budget goes up every year, and these increases, along with strong student performance results, expose the rhetoric of the B.C. Teachers’ Federation about a cash-starved system for what it is.

But the biggest fabrication of last year’s election was the “debt free B.C.” slogan emblazoned on the side of Premier Christy Clark’s campaign bus.

The public accounts confirm that the province’s total debt rose to just over $60 billion, the latest of a series of increases since 2008. The much-touted balanced budget is on the operating side, while the province continues to pile up debt to pay for the Port Mann mega-project, hospitals, schools and other big infrastructure.

Finance Minister Mike de Jong emphasized the difference between capital and operating expenditures.

“We’re borrowing to build as opposed to paying for the groceries,” he said.

“Debt free B.C.” was not an outright misrepresentation, merely one of the most far-fetched promises ever delivered in the history of B.C. politics. The legislature is to convene in October so the B.C. Liberals can pass a taxation framework for the nascent liquefied natural gas industry, which the government hopes will generate the revenues to ultimately pay off the province’s $60-billion mortgage.

Meanwhile there is more capital debt ahead. The cabinet is expected to green-light the Site C dam on the Peace River this fall, a decade-long project estimated to cost $8 billion.

Along with the public accounts, the finance ministry released a list of surplus land sales. The sale of 50-odd properties, some of them closed schools, netted the provincial treasury about $310 million, which accounts for most of the surplus.

Was this “selling off the family silverware to try and balance the books,” as now-NDP leader John Horgan termed it before the election? It’s certainly not a revenue source to be matched next year.

Tom Fletcher is legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc

 

Just Posted

Snow prayers answered as Manning Park ski hill opens Friday

Ski hill will be open seven days a week starting Dec. 14, and cross-country trails as well

Fleeing driver picks fight with Chilliwack police dog, loses

Good dog ‘Griff’ also locates large quantity of what police believe to be crystal meth in Abbotsford

UPDATE: Heavy rainfall, strong winds in forecast for Lower Mainland

Heavy rains, snow expected till Friday morning

DFO confirms that investigation of fish habitat destruction in the Fraser River is underway

Conservation and Protection reps ordered Herrling and Carey Island owners to take corrective action

Hope rescue crew remove man pinned in semi-truck on Highway 3

Tuesday night rescue was swift, with the man removed safely from the truck within an hour and a half

Omar Khadr wants changes to bail conditions

‘My life is held in suspension’, says the former Guantanamo Bay detainee

Sissons scores OT winner as Predators beat Canucks 4-3

VIDEO: Vancouver battles back to earn single point in Nashville

Lions announce seven members of coaching staff not coming back for 2019

The operational moves come two days after the Lions announced DeVone Claybrooks as the team’s new head coach

$12K awarded to atheist family who oppose Christmas, Hanukkah in B.C. classroom

Gary Mangel,May Yasue said holidays, Remembrance Day and Valentine’s Day not appropriate in preschool

Coach accused of sexual assault says apology letter was misinterpreted

Dave Brubaker has pleaded not guilty to one count of sexual assault and one count of invitation to sexual touching

Give the gift of nature this holiday season

Please don’t be mad, but I bought you a moose

Aboriginal poet faces backlash for calling out NHL-themed totem poles

Rebecca Thomas says she received backlash for asking a drugstore chain to remove NHL merchandise

No plans yet for free WiFi on BC Transit buses

BC Transit says they are monitoring the roll-out of free WiFi on Translink vehicles

Some Kotex tampons recalled in Canada and U.S.

In some cases, tampon users sought medical attention “to remove tampon pieces left in the body.”

Most Read