British Columbia Gov't rhetoric clashes with reality Brace yourself for two months of election thetoric about B.C.’s “fragile prosperity” and the many wonderful, far-sighted pro- grams of the government. Mel Couvelier’s speech to the legislature Was laced with finely honed electioneering. Inthe interests of public clarity we offer this Contrast of some selected budget speech rhe- toric with reality: “Mr. Speaker, last year we balanced the budget. Mr. Speaker, this year we balanced the budget. Mr. Speaker, with no tax Increases!” In 1989 the government used the massive tax and user fee increases of the year before, Plus increased Medical Service Plan premi- ums, to rack up a $250-million surplus. In 1990, election spending combined with a slowing provincial economy will leave the Province in the red on operations by $640 million — a deficit close to the levels of the 1982-84 recession. The shortfall of income will be covered by spending the accumu- lated reserves in the Budget Stabilization Fund. The government has imposed a series of New “sin” taxes with the money going into MS sustainable environment fund. Consu- Mer taxes on tires, diapers and batteries, together with a levy on unnamed hazardous Products will raise $21 million. The government is also using Crown Corporations to raise revenue through increased utility rates passed on to the Socreds through a dividend payment. B.C. Hydro will pay $124 million into the pro- vincial treasury this year. __ Tam today announcing a new Sustaina- le Environment Fund. This fund is unique. his fund has revenue sources dedicated to €hVironmental protection and renewal of Our vital forest resources.” The $293 million to be spent this year is Mostly ($222 million) the province's refores- lation budget which has been shuffled out Of the Forest Ministry’s budget into this account to make it seem more significant. The actual expenditures for reforestation are increased by a modest 7.8 per cent over 4st year. However as part of a 10-year, .7-billion plan, spending next year — after the expected election — will be cut back. According to a ministry official, this year’s spending will maintain reforestation operations at last year’s levels. That is not likely to impress forest critics who point to 3.6-million hectares of not sufficiently res- tocked land in B.C. Another $70 million expenditure out of the fund contains few major initiatives. Two of note are a Crown corporation to deal with hazardous wastes, and $14 million for new parkland. Expect details during the election campaign. There is also money for the premier’s Round Table on the environ- ment and the Peel Forest Resources Commission — both political exercises. Money into the fund comes from the forest budget, the environmental consumer taxes, and $50 million in lottery funds. The concept of polluters paying for environmen- tal protection was absent from the budget, as is any projected income from this source into the fund. An interesting twist on this fund that arises from the lopsided balance of reforestation to the other measures, is that in future years various consumer taxes could be used to pay for reforestation. “T am today announcing a new Freedom to. Move Special Account. Through this account we are committing $3.5 billion over the next five years to transportation invest- ment.” The account will pay for projects that are announced annually in Socred budgets: the Okanagan Connector, the Vancouver Island Highway, the Cassiar Connector, SkyTrain extensions and the new ferries. All were announced in last year’s budget, and most likely will be announced again next year. “This government will introduce a pay equity policy within the public service. We mean equal pay for work of equal value, Mr. Speaker. I realize that this will have a cost, but we are committed to fairness.” There is not a dime anywhere in the budget for pay equity. But Couvelier was clear that the 7.6-per cent average increase for the B.C. public sector is too high and he once again announced a “review” of “dis- pute resolution mechanisms.” Carol Gran earlier commented that pay equity for women will be paid for by restraint on higher negotiated incomes. Neither is there any funding in the budget MAY DAY GREETINGS to all our friends in the labour movement. International Longshoremen's & Warehousemen’s Union Vancouver Local 500 Industrial i rs and Boilermakers Marine Worke unin Local’ our friends in the labour movement Budget stories by Fred Wilson for the pension plan announced by Couve- lier. This too will be an election campaign media event. “This year we will spend $1 billion to assist low income renters, create rental housing and promote home ownership. Mr. Speaker, initiatives undertaken by this government will result in the construction of 8,000 affordable rental units.” Another case of creative bookkeeping to make a little seem like a lot, 90 per cent of this $1-billion dollar fund is actually the GAIN shelter allowances and the home- owner grants, which are separately announ- ced elsewhere in the budget and have nothing to do with new affordable housing. Another $24 million is the renter’s tax reduction which has been marginally improved for some low income renters. Over $400 million in homeowner grants are offered to all owners in the province. Ren- ters, especially those who don’t qualify for this credit, would be justified in feeling left out. What is actually left for affordable hous- ing is 1,886 units of social housing for the year (no increase over last year) cost shared with CMHC, and $4.9 million (less than 5 per cent of this so-called billion dollar fund) to subsidize developers that build rental housing. Last year’s budget has produced up to 4,000 rental units, and ministry offi- cials say there is enough money for 4,000 more units. By any measure it is a small scale response to the housing crisis. _ “Despite the drastic cutbacks in federal government contributions, we will never compromise the excellence of the health care system in B.C.” The share of total budget going to health care has declined once again to 31.4 per cent of total expenditures. Funding increases for hospitals are mainly intended to offset nurses and other worker pay increases negotiated last year. : Couvelier also announced a Royal Commission on hospital funding with the message that it is time the province “‘disen- tangled itself from federal programs.” The Socreds have never been fond of federal funding for universal social programs, and an election victory for the Socreds would have direct consequences in a rearranging of medicare in B.C. When the GST is implemented, the pro- vincial social service tax will not apply on top of the federal tax. The provincial tax will apply to prices excluding the federal tax.” The government has listed this chicanery as a revenue measure costing them $30 mil- lion! How can we express our gratitude for this caring decision? The sales tax in this province had the largest per centage increase of any revenue item in 1989, and at $2.2 billion in 1990-91 it raises far more money than all corporate taxation and revenues from all natural resources combined. BEITER [GOVERNMENT LET’S GO FOR IT! Do you want a government that will represent working people, not just a wealthy few? You may be one of the 400,000 eligible voters who have been left off the voters list. If you haven’t received your Voter Identification Card in the mail then you are not on the voters list. You can’t vote if you're not on the list. Do you want a government that believes clean air and water are more important than corporate profit? walk ~DON’T MISS YOUR CHANCE TO VOTE FOR ALL THIS AND MORE! REGISTER NOW SO YOU CAN VOTE FOR BETTER GOVERNMENT LATER wd c¥d Kenneth V. Georgetti, President Do you want an open, honest government? You must contact the Elections Branch to get on the list. Look under “E” in the Government of B.C. listings in the blue pages of the telephone directory. Pacific Tribune, April 30, 1990 e 7