By Kamloops-South Thompson MLA Todd Stone

Budget 2019: big taxes, bigger spending, no jobs plan

Feb 21, 2019 | 2:34 PM

THIS WEEK, with the usual fanfare, the NDP government introduced the provincial budget, and there are aspects of the budget which I support. For example, I can get behind the goal of improving access to childcare spaces and making them more affordable. I also believe enhanced mental health supports for children and youth, including more Foundry centres in communities across B.C., is a good idea. Likewise, a rate increase for foster parents and homeshare providers, further increases in income and disability rates for helping our most vulnerable, and eliminating interest on B.C. student loans are worthy investments.

That said, I do believe that British Columbians will be concerned with the budget’s overall emphasis on big taxes and even bigger spending – with no regard to growing the economy and creating private sector jobs.

Taxes are up $10 billion, representing $1,200 in additional taxes for every man, woman and child over the life of the NDP’s fiscal plan. It’s going to cost you more to heat your home, fuel your car, and insure your truck. A lot more. The NDP expects to collect $6 billion over the next three years in carbon tax alone while investing only $902 million of that back into its CleanBC plan and related climate action initiatives. The remaining $5 billion will presumably disappear into government’s general revenue to be spent on any number of other programs. Gone is carbon tax revenue neutrality and transparency.

Spending is up $13 billion under the NDP to the end of their term – a 26 per cent increase over the level of spending when the NDP assumed power only 19 months ago. And who will be left to pay this bill? You, the taxpayer.

Just as alarming is the fact the budget contains no jobs plan, no economic growth strategy, and no trade and competitiveness focus. The budget includes a projection that revenue from B.C.’s resource sectors will decline by 30 per cent. Yet, where’s the NDP’s plan to address the crisis unfolding in B.C.’s forestry-dependent communities? Where’s the NDP’s plan to assist B.C.’s mining communities given that there are no new mines coming on stream anytime soon in B.C., and private sector exploration activity is declining rapidly? The NDP have no such plans.

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The budget also fails miserably on the NDP’s promise to make housing – and life generally – more affordable for British Columbians. The government’s own throne speech actually acknowledged this failure by saying, “affordability remains the biggest challenge facing B.C.’s families. Many people are working two or three jobs, commuting farther for work and spending less time with their families just to make ends meet. But no matter how hard they work, they cannot seem to get ahead.” This is no wonder considering the massive increase in taxes, fees and insurance costs imposed on B.C.’s families under the NDP.

As for housing, while the government continues to highlight its commitment to investing in additional supportive housing projects across B.C., the NDP and their Green Party partners seem to be among a small minority who don’t understand or refuse to acknowledge how important supply is to housing affordability. The result of this government’s focus simply on demand measures (such as the so-called speculation tax) has been to thrust the construction and real estate sectors into the early stages of a serious downturn, jeopardizing thousands of construction jobs and much needed new market housing supply. In fact, the budget indicates the NDP expects housing starts to plummet by 30 per cent over the next three years. Fewer housing starts means less supply, which in turn means less affordability. Regrettably, this budget makes no mention of supply-focused actions to be pursued by the NDP as part of a more complete strategy to drive housing affordability.

Other prior commitments of this government are still missing in action. The budget makes no mention of the $400 renters’ rebate, $10-a-day childcare remains a talking point, and there’s no outline as to how the government will fulfill its ambition to create a poverty reduction plan. Furthermore, parents will have to wait 20 months for the NDP to deliver on the budget’s promise of a B.C. Child Opportunity Benefit refundable tax credit as it doesn’t kick in until October 1, 2020. A lot can – and will – happen between now and October 2020, so parents shouldn’t hold their breath.

Specific to Kamloops and area, the budget makes no mention of capital for much-needed School District 73 projects like the expansion of Valleyview Secondary, a new elementary school in Pineview Valley or an expansion of Westmount Elementary. The budget also confirms that the NDP have yet again imposed further delays on construction of Trans Canada four-laning between Hoffman’s Bluff and Chase by another two years with construction now set to finish in 2023 – if we’re lucky – a full four years behind the original schedule. Also of local note, the budget confirmed an earlier decision by the NDP to renege on its commitment to build a new headquarters for the B.C. Lottery Corporation (BCLC) in Kamloops despite BCLC’s revenue increasing over $90 million last year and expected to sharply increase again over the next three years. 

Overall, this budget reflects a government being stuck in 1970’s-era thinking, where they believe that you can tax your way to prosperity and spend your way to growth — that big government knows best, and good-paying private sector jobs just magically appear out of nowhere. That’s simply not how you create a growing, vibrant and diverse economy, where taxpayers are respected, folks have family-supporting jobs, and governments have the resources needed to sustainably invest in people.

For all of these reasons, on behalf of my constituents in Kamloops-South Thompson, I will be voting no to this irresponsible NDP tax & spend budget.