Budget Exposes Clark Government’s Soul

February 23rd, 2012 · 32 Comments

Budgets are windows into the soul of governments. Forget the speeches, the promises, the media appearances, the interviews, the ads and the hype: it’s the actual budget that EXPOSES a government’s true plans, true vision for the province, its view of the population and who it sees as its true friends.

And Christy Clark’s unelected government has, as other governments did before, laid it all out for all of us to see/know what they’re really all about.

And the basic message: the Liberals under Clark will cut government services, and continue to tax working, lower and middle class British Columbians MUCH more than large corporations or their wealthy friends … while rewarding their friends and supporters.

Here’s how.

The government calls it a “three-year spending freeze” for most ministries, but let’s keep it real: a spending freeze or even a small increase, when all kinds of other costs are rising much faster with inflation, is a CUT. And there are many government departments and services … job training, advanced education, children and youth programs, community services parks, the environment etc. will face tougher times … after already suffering through difficult times under Campbell/Clark.

BIG business and their top-earning executives continue to largely enjoy their luxury ride (who do you think are buying all those Westside homes, Whistler condos, high end cars and yachts in BC’s booming high-end lifestyle markets?).

The corporate tax may rise ONE PER CENT to 11 per cent, BUT only if economic conditions worsen AND only in 2014. Plenty of time to drop that after the next election too if the Libs win. Without really hurting the BC business climate, but Clark could have moved a lot further in this area NOW, especially given the state of the BC deficit, need for revenues and just foir the sake of fairness.

And why the long delay in even planning to raise corporate taxes…but so quick in adding costs/taxes/fees onto the rest of us poor taxpayers?

Yes, once again, it will be ordinary British Columbians will will bear the INCREASING burden.

MSP fees are going up AGAIN … almost an annual increase in BC now …and at rates beyond inflation. And making this all even worse, MOST other Canadian provinces do NOT charge their citizens monthly MSP fees (did you know that?) and cover their health costs from their normal stream of tax revenues (higher business taxes?).

And I suspect the new MSP rise will also be followed by a plethora of additional boosts in the whole ranger of fees for government permits and services. Does anyone believe the government’s raid of $500 million from ICBC’s bank account won’t be used as the reason to raise our vehicle insurance rates over the next two years …or maybe even more?

On top of higher Hydro rates etc. etc.

But tough as times are, the government did find ways in the latest budget to continue to reward its friends …and help them make millions.

The government says it will make $700 million by selling more than 100 government properties and assets.

Think about that: if those assets SELL for $700 million … how much do you think the buyers will make by taking them over? And who is going to cash in? I don’t know about you, but I don’t quite have an extra million or ten or twenty million laying around to buy a government building …even if it’s really worth a lot more.

But you can bet some friends of the government will cash in …and who knows, maybe even lease or sell them back to the government at higher prices within months!

And why the sudden move to privatise the liquor distribution branch warehouses? Surely, a gold mine opportunity for some group who will no doubt get an incredible deal to warehouse and supply booze throughout BC … worth a fortune in light of the government’s retention of government liquor stores ….. a forced captive customer with no recourse but to sign on and pay the freight!

I can’t wait to see the bidding process for these properties/services and can’t help but wonder if the winner(s) are already lined up? And wherther any of them will have political ties to the Liberals? (But then I’m a cynic.)

This is clearly not an election budget … or even a by-election one.

But it lets you and I know where WE each stand in the Liberal government’s vision of BC … and it’s not a pretty picture, unless you have quite a few million to buy government assets at sell-off prices, and then cash in by using or flipping them yourself.

Harv Oberfeld

Tags: British Columbia

32 responses so far ↓

1 Keith // Feb 23, 2012 at 2:22 am

Hi Harvey,

I’m of the opinion that these appalling people don’t give a hoot as they know they are toast next time around. Absolutely the friend$ and insiders are lining up for the last kick at the cat.

Even the MSM are beginning to notice as it is getting quite blatant. Wednesday’s 5 p.m. CTV news were reporting on the relationship between a well connected liberal mover and shaker as a lobbyist for a liquor distribution company just as the bargain basement crowd are putting up for sale the provincial liquor distribution branch. NDP were asking what was going on with the predicable B.S. response from Coleman.

And to give further credit to the media, global on budget night were reporting on the massive debt that has been run up by this fiscally responsible bunch. In a couple of years it will essentially double from the 34 billion that they started with in 2001. The usual apologists were interviewed stating that “well, when you look at the debt to gdp ratio we are doing okay compared to other countries” but as Rafe so eloquently put it years ago. If on a scale of 1-10 everyone is a 3, you only have to be a 4 to look good.

Just before the next election they come in with a deficit eliminated.? Yea sure kevin, ,anything you say. Easy to do when you keep piling onto the provincial debt while we keep paying into the officially sanctioned pyramid scheme.

Cheers Harvey, great post.
2 r // Feb 23, 2012 at 3:41 am

http://www.theglobeandmail.com/news/national/british-columbia/bc-politics/star-lobbyist-swayed-liberals-on-proposed-asset-sale/article2347016/
3 Grant G // Feb 23, 2012 at 4:45 am

I hate to quibble with you Harvey, one small detail, corporate taxes were NOT raised..

What the budget states is this…”Corporate taxes will rise by 1% on April 1st 2014 IF conditions continue to worsen”…Snip

What part of IF didn`t you understand?

April 1st/2014..2 years away and tax years don`t start in April…The BC Liberals IF(which they won`t) they win the election will not raise corporate tax…Next year`s budget will show a small surplus and …

And then conditions will NOT HAVE WORSENED but improved..

Perhaps you should edit your story?

(Response: Very good point. Will edit the article to add the condition AND the 2014 point. thanks. h.o)
4 Doug R // Feb 23, 2012 at 6:11 am

Well said Harvey. So much for “families first” crap. This government has a zero chance of re-election and it’s patently obvious that they don’t give a damn. The HST is still lining the government’s coffers by hundreds of millions of our hard-earned bucks and they continue to favour their big biz pals anyway they can on their way out.
Can’t wait to see the last of the whole bunch!

Doug R (Victoria)
5 Gerald // Feb 23, 2012 at 7:35 am

Harvey…do you know anything about this….
The BC government is paying theBC Lions to tour the Grey Cup around Liberal ridings, featuring highly endangered Liberal MLAs posing with the cup and constituents, posting the resulting pics on the BC Liberal Caucus website. …
http://therealstory.ca/2012-02-06/bc-liberals/oops-dennis-skulsky-is-doing-it-again...

It will take years to undo the damage these clowns have perpetrated upon the people of this province

(Response: Hope someone in the working media checks this out. Sounds like a good story. h.o)
6 Gerald // Feb 23, 2012 at 7:46 am

and as to the item about the Liquor Distribution sale….I heard Rich Coleman on the radio today saying that they only thought about this one week ago…(where have we heard that before…it wasn’t on the radar…..) anyways…Patrick Kinsella is neck deep in this plundering…

http://www.bivinteractive.com/index.php?option=com_content&view=article&id=5427%3Adhl-could-cash-in-on-bc-decision-to-privatize-liquor-distribution&catid=14%3Adaily-news&Itemid=46
7 D. M. Johnston // Feb 23, 2012 at 3:20 pm

There is no difference between the Gordon Campbell Liberals and Premier Photo-op’s Liberals. The BC Liberal Party is nothing more than a front for very questionable people, funneling BC’s assets to their political friends and cronies.

Their sole aim is to give the wealthy more money to spend in Hawaii, putting the burden of government on the backs of those who can ill-afford it.

We live in an age of moral-less politicians, who think they can plunder the province at will.

History will show the Campbell era as the great rape of BC.
8 cherylb // Feb 23, 2012 at 4:16 pm

What fiscally responsible person sells their assets to pay their daily bills? If we did that, we’d soon be out on the street.

(Response: Actually, they’re not selling their assets: they’re selling YOURS. And you can bet their friends who buy them will make a lot of money on the deal. h.o.)
9 Judi Sommer // Feb 23, 2012 at 6:34 pm

Hi Harvey,

Good article, as usual. A few comments and a few questions as well, oh Wise One.
Falcon at first embraced the 6% Flaherty announced in health trasnfer fees, then reconsidered saying it wouldn’t cover inflation and the pressure of rising costs. His Budget? barely a 3% lift. Guess we didn’t need the full 6% the Tory’s shelled out after all.
Kinsella and gang have been lining up for weeks for “chats” with Falcon,one assumes about the Liberals divesting themselves of pesky empty land they don’t need…yet. Will the bidding on these assets be public or does the buyer have the right to privacy? Will theLiberals work on zoning issues to maximize the properties values or will a developer get a cut by doing this himself with the result being more money in the pockets of private individuals?
Sale of LCB warehouses-thin edge of the wegde to selling off the entire department? Private liquor stores often charge more than the government outlets.If they sell this off, guess they want a fight and an election issue with BCGEU who supposedly held the line on contract demands in exchange for job security.
Breaks to the building sector who kept yapping that the HST was killing their sector. I don’t totally follow the tax shelll game here but it seems buyers of homes up to $850,000 get a tax break and $10,000. How are these new homes taxed? before they were subject to 12%-HST.
Most of us can’t afford a new home, let alone a holiday residence so only those with money get a tax break.
Many have been holding off on other big ticket items such as hoe renovations- at least something they can afford. These plans still are on ice as they are subject to HST.
There is not a thing in this budget that will help the struggling middle class unless you have kids in the arts or sports and even that sop to “families first” barely registers.
I doubt big labour will rise to the bait to demand a general strike-the appetite is not there I think. I for one hope they will not make themselves an election issue but will continue to speak out for their members who are our neighbors, friends family members.
10 Bruce W // Feb 23, 2012 at 6:56 pm

Good one Harvey – you and Alex T. have nailed it on the head. The only “family” this bunch of pirates are interested in is the ones that will benefit from this budget – and it’s certainly not the ones who need help the most. I would dearly love to see Snooki call a snap election in 2012, but she won’t because she knows she and Fibs are toast after the next election. BC can hardly afford to have this bunch in power for another 12+ months. Joe Lunchbucket and family will be paying for this for decades to come.
11 wendy // Feb 23, 2012 at 6:59 pm

Great article Harvey. I am so disgusted with this government.

Never voted NDP and everyone says they will destroy the province if they form the government but really I don’t think they could be any worse than this bunch.

What is even more sad is that NOT one of the sitting MLA’s will stand up for the people of BC. Not about the mess with BC Hydro, ICBC, BC Ferries, the HST, the sale of the assets of the people of BC, Forestry, Childrens Ministry, Hospitals and on and one.

None of them have any integrity and I wonder how they sleep at night. Very sad state of affairs.
12 bt // Feb 23, 2012 at 7:05 pm

The involvement of Patrick Kinsella suggests this is much bigger than the sale of Liquor Distribution Branch warehousing as Coleman suggests but more likely control of all liquor distribution in B.C It matters little then if the LCB stores are sold they will be under the thumb of those who gain control.
But how do Falcon and Coleman plan to replace the $one billion annual net income to the province from liquor sales? Any price of sale would be soon frittered away.
Falcon could earn the name of Campbell Jr on this one and see the end of his political career.
13 John's Aghast // Feb 23, 2012 at 10:11 pm

What’d I tell you? Let campbell and his cronies get away with BC Rail and they smirk and say “Nothing to it! Like taking candy from a baby!”
Emboldened by their success, and some insignificant whimpering by the masses, they’re back for another round before getting turfed.
“Oh, what the hell, there’s nothing left to take.”

So we let them off the hook again? Shirley (she back again?) there is some way to put an end to this madness before they lose interest for lack of opportunities.
Any CONSTRUCTIVE suggestions?
(With apologies to the diligent Bloggers who have been keeping us informed. Without you we would have continued blissfully unaware that our pockets have been picked. And about to be again.)
14 e.a.f. // Feb 23, 2012 at 10:56 pm

the lieberals only thought about selling the liquor distribution branch recently??? I don’t believe that. For the past two yrs a lobbying group has been registered in B.C. which fronts for a large AMERICAN warehouse group.

They buy the liquor distribution branch. The land the distribution centres sit on is worth a bomb. They can build new larger warehouses and they are in business. Just look at the branch’s distriubtion centre’s locations.

This will also enable American liquor producers to sent their products north. I can just see the Canadian products being taken off the shelves to make room for the American products. Nice reward for some one.

Selling off of land, well if they have any First Nations land claims to settle, they will sell the best land to their corporate friends and the First Nations will get what is left. The last sell off of land came right before Campbell decided to “settle” land claims.

In the Comox Valley the last time the lieberals wanted to “give away” land they approached Crown Isle and asked them if they wanted to purchase Lannan Woods for $350K. They said yes, the Lands trust in the valley found out and it had to go to a closed bid system. This land had previously been used as park land, eagle habitat, rare plants, etc.
In the end the people of the valley raised $650K. Crown Isle came in with a bid of a million & change and won. Then Crown Isle moved in one day and tore up all the trees & habit, no notice, no enviornmental review, etc. It looks like a moon scape & the logs sold for more than enough to recoup the cost of purchasing the land.

Campbell changed the forestry game rules so it was easier for private land owners to log and not have to reforest.

We can anticipate the province selling all the land which might have mineral, gas, oil rights to their friends. Anything which has water front, etc. With the changes to the forestry act companies will be able to purchase huge chunks of land, log and move on after selling the land again.

The land may also be purchased by oil companies so they don’t have to deal with protestors, etc. They will be working on privately held land. Just watch for multi national foreign corporations to come in and buy up a huge chunk of B.C. I expect to also see them sell off some Provincial parks to private companies which will then be able to redevelop them. I would suggest we could see them sell off Cultus Lake provincial park, Shuswap, O.k. Lake.

By the time the lieberals are finished they will have sold the best of B.C. There will be nothing left for any future governments to work with.
15 John // Feb 24, 2012 at 12:01 am

these illigitimate sales will not be allowed once a different goverment has a seriously legal look at these shananagins all deals will be reversed and all purpatrators will be brought to justice,if not the new goverment we vote in is just carrying on with this feeble game that any person with half a brain can see through.

(Response: Once a sale takes place, the documents are signed and the cheque is cashed, I think it would almost impossible to void the sale. But we can always hope! What would be more interesting,I believe, would be a criminal investigation into who suggested and whose idea was it to sell, how were the assets sold and what connections, if any, did government officials or the Liberal Party have to the successful buyers. Maybe fraud? Or conversion of assets? Or bribery? All kinds of possibilities in such a large selloff of government property and/or operations. h.o.)
16 Ruraidh // Feb 24, 2012 at 12:02 am

All they have to do is to increase the freight and warhousing charges and by the time the liquor marks ups trigger in, the provincial government gets another added percentage.

Then the restaurants have their mark up.

Consumers gored one again.
17 Scotty on Denman // Feb 24, 2012 at 12:15 am

Right, Harvey, this is not election budget, this is a retreat-in-good-order budget as the BC Liberals slash and thrust at the advancing wall of what they see as “socialists hordes”, backing their way sternward then over the side to waiting yachts laden with booty. And when they cast off, we will have won the ship of state; but it will be sorry looking hulk, it’s sheets in tatters, it’s planks ready to burst and worms gnawing at the ribs which will take years to refurbish.

What is the seafaring equivalent to scorched earth?

(Response: How about a “pirated,plundered and pilfered public purse policy”? h.o)
18 Rr // Feb 24, 2012 at 12:25 am

http://lailayuile.com/2009/04/11/the-kinsella-connection-it’s-no-secret-that-patrick-kinsella-is-one-of-gordon-campbell’s-closest-friends/
19 DonGar // Feb 24, 2012 at 2:01 am

Were is the MSM? Were are our Bob Woodward & Carl Bernstein? This government needs to be held to account for all their corruption.

(Response: Some of them have been there so long, they lack the get up and go to tackle/pursue a story like this over an extended period of dogged journalistic effort. But Stephen Smart is young and new enough to go after this one. Go Stephen! Rip it open! Demand Christy come clean! h.o)
20 13 // Feb 24, 2012 at 2:15 am

IF all of this comes to pass then even the hard core Liberal supporters will have to reconsider. Its to bad that the conservative party will split the right wing vote. Its to bad not because the NDP will win the election but because the reason for their loss will not be as clear. Was it vote splitting or was it their giving every last asset in BC to all of their friends.
21 egress // Feb 24, 2012 at 5:21 am

Paul Willcocks checks in from Honduras with a concise column.

The Falcon budget, or have the Liberals conceded defeat?

“This appears to be very much a Kevin Falcon budget, and absent any other apparent direction from the premier’s office, a Falcon government.”

“Selling off the Liquor Distribution Branch is the action of a government that doesn’t expect to be around for long. The Liberals looked at the idea in their first term, and despite legitimate questions about the whether government needs to be in the alcohol business, concluded the long-term benefits in terms of revenue from the Liquor Distribution Branch were too great to give up. Pragmatism trumped principle.”

“More significantly, this isn’t a credible budget past the date of the next election. The multi-year freeze on spending in almost all ministries might be manageable, at some cost to already inadequate services. But the budget calls for a three-per-cent increase in health spending, despite a growing population and rising care costs. That can’t be done without major reforms and innovation, and the government has plans for neither.”
22 Mo // Feb 24, 2012 at 5:27 am

(But Stephen Smart is young and new enough to go after this one. Go Stephen! Rip it open! Demand Christy come clean! h.o)

Irony at it’s finest.
23 crh // Feb 24, 2012 at 6:16 am

I hear smart Stephens are in short supply these days. Don’t wait up.
24 tf // Feb 24, 2012 at 8:31 am

There are so many good comments to a great article. I want to reply back to all of you!
Thanks Harvey!

One observation I can add –
Timing can tell us a lot.

On Jan 10, 2012 Kinsella registered to lobby Rich Coleman about the privatization of liquor distribution in BC. Coleman is the minister of Energy and Mines. He didn’t regain the portfolio of Liquor and Gambling until Feb 8, 2012.

Now – why did Kinsella register to lobby Coleman on the issue? He must be a gambling man or he has the “inside track” on where portfolios are going to land.

I wonder who is his insider this time?
25 Lew // Feb 24, 2012 at 6:17 pm

Never mind waiting for Stephen Smart; have a look at this hard-hitting grilling.

http://www.vancouversun.com/news/year+after+becoming+premier+Christy+Clark+holds+line+spending/6201195/story.html

Can’t you just see BCChristy leaning over his shoulder making corrections and offering helpful hints as he writes….?

(Response: Fowlie is a competent reporter and he would never let Christy tell him what to wrtie etc. However, I would have been more critical in my questionning of her on a lot of things, including what right does she have to govern without FIRST seeking a mandate for her or her government, plus on many other issues raised on this blog by me and those who contribute. Maybe that’s why he got the interview, and I didn’t. h.o
26 crh // Feb 24, 2012 at 7:12 pm

MSP premiums have seen an increase of $366 per year for individuals and $732 for families under the Liberals. That is 85%!

From one side of their mouth they say it is just a very small increase in premiums, while on the other side of their mouth they tell BC that they didn’t raise taxes.

Bullshit only Liberals can love.

(Response: Since MOST other provinces have NO MSP fees paid by individuals … I even wonder if it isn’t a violation of the Canada Health Act to “tax” even basic health coverage this way. Isn’t basic health care supposed to be free? Or at least paid for from general tax revenues? The increases you point to are HUGE. Dix and the NDP should make an issue of this and wake up the dozing media. h.o)
27 Gloria // Feb 24, 2012 at 7:48 pm

Perhaps it’s Boessenkools advice, to sell off BC assets. Campbell did the same thing, thieving and selling our BCR and the priceless Real Estate, that went with the BCR. Campbell gave our mill industry to China. Campbell sold our rivers and mines. There is nothing left of BC, to recover with. That’s why they have to sell off assets again.

The BC Liberals of course, will stick the next party with BC’s horrendous debts. The HST is one of those debts. We have to pay Harper for stealing from the BC people. The next party will be left, with nothing to work with, and billions of dollars of all the other debts, the Campbell/Clark BC Liberals have incurred. The BC Campbell/Clark BC Liberals are, vindictive, spiteful little worms, especially Campbell was.
28 Henri // Feb 24, 2012 at 10:05 pm

To be placed on Harv’s head stone.
“I never met a reporter I didn’t like”
29 Crankypants // Feb 25, 2012 at 8:23 am

What I find distressing about this budget is the supposed reasons the government wishes to liquidate assets that are the property of all British Columbians. If it were to reduce the debt we carry, there would be a legitimate argument. According to Justin Bateman, BC’s debt load costs the taxpayers $2.5 billion per year to service. Instead the liquidation of these assets is to be applied to the pre-election budget, which makes no sense.

Budgets are derived by estimating ongoing revenues and expenditures. Selling assets doesn’t fit the criteria one iota.

Also, tf mentions that Kinsella lobbied Coleman before he again was handed the liquor portfolio. I suspect that he did so because he had input as to who would be in charge of said portfolio when the time was right. He didn’t donate $20,000.00 through his pr firm to Christy’s leadership drive for nothing.
30 BG // Feb 25, 2012 at 5:04 pm

Corporations should have to abide by the same tax rules that regular taxpayers follow – a “progressive” tax system.

The higher your income, the higher your tax rate. It should be the same for corporations. There should be a “progressive” corporate tax system.

This will favour small businesses who have small profits and it will raise more revenue from filthy rich banks and multinational corporations.
31 RS // Feb 25, 2012 at 7:17 pm

This has Kanswindlya’s unctuous fingerprints all over it! Kaching! Kaching!
32 TOM HALL // Feb 27, 2012 at 6:01 pm

B.C. became Canada’s sixth province in 1871. During the next 130 years, successive provincial governments pushed the provincial debt upward, so that in March of 2001, the total provincial debt was $33.85 billions or $8,300 per person.

In the twelve year span between 2001 and 2012, the policies of the B.C. Liberal Government has added more to the B.C debt than any other government in the previous 130 years. Our per capita debt has risen to $14,000 and the total provincial debt has almost doubled to $66 billions. All in 12 years!

These Liberals are on the path of destruction. They sell assets to cover year-end debt,
never mind the large debt. Soon all that will be left to sell will be the public educational system, ICBC, and B.C. Hydro. In fact they are trying very hard to set the scene for failure thus leaving a fire-sale to private enterprise as the most convenient truth.
Eventually these Liberals will sell our water resources as well (pardon the pun).

Liberal M.L.A.s seemingly do not represent the citizens of their constituencies, but rather the policies and desires of the Liberal Party and their sponsors.