Despite red ink, B.C. sticks with green plan

The red ink in the B.C. budget released on Tuesday did not seep into the government's green plan for the province.

The environment remained one of the few areas where the B.C. government actually increased spending in this year's budget, dedicating $36 million for new or extended environmental projects.

Last year the B.C. Liberals had a green goodie bag for taxpayers, offering tax breaks on environmentally friendly spending in addition to personal tax cuts, but the economic grass was a lot greener back then.

These days, the province is facing a $495-million deficit for fiscal 2009 and $245 million for fiscal 2010.

The revised carbon tax plan released Tuesday included a $200 grant starting in 2011 for northern and rural homeowners outraged over the carbon tax announced in last year's budget.

The rural residents said they were hurt most by the tax, because they are more reliant on vehicles and transport.

Businesses in the province may have been hoping the government would freeze the corporate carbon tax but instead Hansen announced a one per cent reduction retroactive to July 1, 2008.

The B.C. government released its budget for the coming year on Tuesday in Victoria.