Critics blast B.C. health, education funding

B.C. NDP Leader Carole James says the new B.C. budget shows the Liberals have no real strategy for economic recovery and have let families down.

She's particularly upset over the promise to use money from the Harmonized Sales Tax (HST) to pay for increases in health-care spending, James said late Tuesday. 

The HST would discourage consumer confidence and make it more difficult for the economy to recover, James said.

The budget showed the Liberals have no post-Olympic strategy to create jobs and instead delivered a budget that cuts vital public services, she said.

James said she'd help stimulate the economy by investing more in post-secondary education and research and development.

Some stakeholders groups who were allowed to preview the spending plan Tuesday before it was presented in the legislature also found much to criticize, pointing to a perceived lack of funding for education and health care.

Jim Sinclair, the president of the B.C. Federation of Labour, dismissed the government's claims that funding for key public services was being maintained in the 2010-11 budget tabled by Finance Minister Colin Hansen.

"This is a classic Liberal budget," Sinclair said during the budget lockup. "There is nothing in it for ordinary people. Every ministry school, every hospital, every health-care facility will experience a cut as a result of this.

"To make matters worse he is going to lay off or get rid of 4,000 jobs in the public sector at a time when unemployment in this province is growing at record rates. This budget is a disaster for British Columbians and a missed opportunity to actually put real resources and real money into solving our problems."

Adrienne Montani, provincial co-ordinator of First Call, the B.C. Child and Youth Advocacy Coalition, said the budget will essentially download the burden of rising costs onto the groups providing social services.

Costs downloaded to school boards

"What the minister talks about is increased funding to some of the ministries," she said. "What he does not talk about is increased costs. This budget is about downloading costs onto school boards, onto non-profit service providers doing child protection and other kinds of family support.

"This will mean service cuts to the most vulnerable children in our province."

Iglika Ivanova, a researcher with the Canadian Centre for Policy Alternatives, targeted the tax-deferral program, which will allow families with young children to postpone paying property taxes.

"It's unfortunate because it would have been an opportunity to help families, but the measures are particularly disappointing because what we have is effectively a property-deferral tax, giving families a loan, and only homeowners," she said.

"There is nothing for renters and there is nothing for the homeless. B.C. does have the highest child-poverty rate in the province."

Irene Lanzinger, the president of the B.C. Teachers Federation, said the budget's incremental increases in education funding will not be enough to maintain services in the face of school boards' rising costs.

"What we saw today only funds all-day kindergarten and the teachers' pay increase," Lanzinger said. "There is no money for the increased cost of pensions, medical service plan costs, inflation, that are downloaded on school boards."

Maureen Bader, the B.C. director of the Canadian Taxpayers Federation, blasted the budget for its lack of tax relief for families, and for its deficit spending.

But she also labelled the government’s promises to increase spending on climate change initiatives and clean energy development as "green corporate welfare."

"The lessons from Europe are clear: large-scale corporate welfare schemes that promote eco-fads are expensive failures. Governments have proven again and again that they are poor replacement for the market when they try to pick winners, but are an easy mark for those seeking quick cash," said Bader.

Clean energy funding welcomed

But the clean energy funding was welcomed by Paul Kariya, the executive director of the Independent Power Producers of B.C.

"B.C. is clearly preparing to power out of the recession and be a global innovator in the clean energy sector. Our members are looking forward to the new Clean Energy Act and fulfilling British Columbia’s potential as a clean energy powerhouse," said Kariya.

Environmentalists found the ongoing funding for the oil and gas industry troubling, according to Charles Campbell, communications director of the Dogwood Initiative.

"Hansen would like LiveSmartBC and Clean Energy to make the headlines, but they represent less than 10 per cent of what the province plans to spend on supporting the oil and gas and mining industries," said Campbell.

"Large subsidies include $274 million for a transmission line to support coal and copper mining and $187 million for a road that will support oil and gas development in the Horne River Basin," said Campbell.

'Coasting through the economic crisis'

CUPE B.C. president Barry O’Neill said the budget provided little economic relief for rural communities and would further the economic polarization with urban centres.

"This budget reveals a government that is coasting through the economic crisis," said O’Neill.

"With unemployment doubling from last year, continued cuts to the public sector, and working families facing a jobless recovery, the Liberals should have used this budget to rebuild B.C.," he said.

"There aren’t too many working families who will find the HST revenue neutral," said O’Neill.

B.C. Government Employees and Service Workers Union president Darryl Walker pointed out the budget also indicates there will be deeper job cuts to the provincial public service than previously indicated.

"After two waves of layoffs this year, the government has set a target of another 11 per cent reduction in the public service workforce by 2012-13, and attrition alone will not get us there. They have to serve notice that more layoffs are coming," Walker said.

He pointed to expected cuts in the Ministry of Forests and Range as particularly troubling.

"These additional cuts to Forests and Range mean a hollowing out of staffing power and expertise within the ministry — which will result in lower capacity to enforce existing regulations," said Walker.

Modest increase in health-care spending

Judy Darcy, the business manager of the Hospital Employees Union, predicted health authorities will be hard-pressed to deliver services to the public at current levels, despite the modest increase in health-care spending.

"Over the past year, health authorities have been forced to cut everything from surgeries to seniors’ care to mental health and addiction services. This budget guarantees more of the same pain," said Darcy.

Mike Currie, the president of the Consulting Engineers of B.C., welcomed the government’s renewed commitment to infrastructure spending as a form of economic stimulus.

"Maintaining this commitment to infrastructure spending will continue to aid economic recovery in B.C.," said Currie.

The mining industry also supported the government’s continued commitment to bringing in the HST in July.

"The implementation of the HST is one of the most important and innovative tax reforms the government could bring forward. The HST will improve B.C.’s tax competitiveness, attract new investment, improve productivity and create jobs," said Pierre Gratton, president of the Mining Association of B.C.