B.C. throne speech emphasizes spending cuts

The cash-strapped B.C. government said in its speech from the throne Tuesday that it will review its health authorities, boards of education and Crown corporations in an effort to find cost savings.

"Shrinking revenues will by necessity curtail our discretionary spending," the government said. "The fiscal cupboard is bare and currently hangs on a wall of deficit spending."

Kicking off the first session of the legislature since the May election, Premier Gordon Campbell's Liberals also said in the speech, read by Lt.-Gov. Steven Point, that public-sector employees won't get a wage increase, but they won't see their salaries cut, either.

Anyone hoping the government would back away from its plan to harmonize the goods and services tax with the provincial sales tax will be disappointed.

The throne speech — which traditionally is viewed as a statement of intentions rather than promises — indicated the government plans to use $1.6 billion in federal HST transition funding to protect health and education services.

The post-election period has been anything but a honeymoon for B.C.'s Liberals, who are facing a ballooning budget deficit, a struggling economy and rising anger over the proposed harmonized sales tax.

Ban coming on cellphone use while driving

The government also said it would introduce legislation banning cellphone use while driving.

Some other highlights from the speech:

•  This year's deficit will be far higher than the original forecast of $495 million. The province will amend the balanced budget legislation to allow four years of deficits, rather than two.
• The government will reduce discretionary spending and target resources where they are needed most — to help students, patients, children and families.
• The government reiterates its commitment to the goal of reconciliation with First Nations — but more work must be done before the Recognition and Reconciliation Act is introduced.
• The government will introduce a new Police Act and long-promised legislation to strengthen the Lobbyists Registration Act.
• The government will outlaw the international export of B.C.'s garbage and landfill waste.
• The government will promote biomass power solutions and convert landfill waste into clean energy that reduces harmful methane gas emissions.
• A species at risk task force will be established to report to the government by June 2010.
• The government reiterates its commitment to the Climate Action Plan and targets.
• The B.C. Utilities Commission will be directed to phase out the Burrard Thermal power plant and to act on the B.C. Energy Plan and Climate Action Plan.
• The government will introduce legislation to deny income assistance to anyone who has an outstanding warrant from another province.