British Columbia Federation of Labour

Opinion Editorial
As Written for Business in Vancouver
(Issue 800 Feb 22-28, 2005)

In his debut as BC's Finance Minister, Colin Hansen's first budget is a confusion of facts, contradictions and old-fashioned pork barrel politics. It provides little vision for our future and nothing to repair the damage done by BC Liberals over the last three and a half years.

Let's deal with the facts first. Mr. Hansen and his Cabinet colleagues have taken hyperbole to new heights. It's no longer a "New Era" - it's now a "Golden Decade."

But his own budget document describes a much different economy. BC's best economic growth numbers are behind us not in front. Our economy will decline in 2005 from 2004 levels, and growth forecasts for 2006 are pegged below 2005.

In fact, BC's best economic growth numbers in the last ten years happened in 2000, a full eighteen months before the BC Liberals were sworn into office, when our economy grew by 4.6 percent. Comparing the Liberals track record to that of the NDP is yet more evidence that Gordon Campbell's economic stewardship has been nothing to rave about. Between 1992 and 2000, the BC economy averaged a 3.0 percent growth rate. Between 2001 and 2004, that average was only 2.9 percent.

Or consider the evidence on job growth during those two periods. The BC Liberals spin machine rattles in ads the tremendous increase in jobs during their mandate. However, from June 2001 through to the end of 2004 employment growth in BC has averaged 1.4 percent per year. Between 1992 and 2000 that average was 2.1 percent.

Mr. Hansen also wants British Columbians to believe that BC Liberals' economic strategy has meant more money in their pockets. Between 2001 and 2004, average hourly wages increased by close to 5.6 percent. Unfortunately, so too has inflation. Over that same period inflation grew by 6.6 percent, effectively pushing real wages down.

Of course, Mr. Hansen isn't about to let facts stand in the way of a good budget speech. He's trumpeting his first budget as a dazzling display of fiscal success, but a careful read of budget documents shows that the much celebrated surplus has more to do with surging commodity prices, record low interest rates and a $2 billion plus increase in transfer payments from Ottawa.

In fact, the vast majority of Mr. Hansen's spending increases, especially in health care, reflect the priorities of a minority government in Ottawa than a majority government in Victoria. Without the recently negotiated health care accords between the federal and provincial governments, Mr. Hansen's fiscal successes would look much more modest.

Budgets are also a reflection of choices and priorities. The BC Liberals have done very little to undo the damage they unleashed with their program cuts over the last three years. Closed courthouses are still closed. More children are at risk. Class size in K-12 is ballooning. Tuition fees have skyrocketed. And seniors face broken promises, especially those needing long-term care beds. These are just some of the real deficits that Mr. Hansen's budget fails to address. In fact, for many frontline programs, this budget doesn't even come close to restoring services to 2001 levels.

Despite those deficits and the urgent needs of many in our province, Mr. Hansen was able to cobble together about $236 million for some pre-election announcements. What exactly did he have in mind? Even persistent questions from reporters at this budget press conference couldn't pry any details from the Minister. This government, which ran on a plank of openness and accountability, isn't about to reveal its pork barrel plans of vote buying of the next two months. Instead they want to lull voters into forgetting the past.

The reality, however, for Mr. Hansen and his government is that BC voters expect governments to stand on their record, for better or for worse. Holding MLAs and their government accountable for choices made and promises kept (or not) is what every election is always about.

On that basis Mr. Hansen has a lot of explaining to do. I'm glad he bought the runners. I'm sure he'll need them.