About 18 hours after B.C. Finance Minister Colin Hansen delivered what some were calling a "bad news budget," West Vancouver-Sea to Sky Joan McIntyre said in an interview Wednesday (Sept. 2) that while she recognizes that some groups will suffer short-term pain as a result of cuts, the long-term impact will be relatively minor.
"I think the finance minister has slowly, over the last couple of months and couple of weeks, had revealed most of the bad news - the loss of revenue, the costs of fighting the forest fires, and obviously we were in a bigger deficit than we were at the beginning of this year," she said. "But the whole theme of this is that we're protecting social services, education and health."
McIntyre said an additional $420 million in social assistance over three years will help the lower income population. Rebates on carbon tax and the Harmonized Sales Tax (HST) along with elevating the exemption to income tax by $1,600 to $11,000 will help those struggling with poverty.
Health decision criticized
"There wouldn't be [funding] specifically designated to communities," she said. "The message really is we're trying to make sure that the most vulnerable are protected."
Health Sciences Association of BC (HSA) has criticized the government for forcing families to bear the brunt of the provincial government's failure to adequately fund health care. The HSA union represents over 10,000 health care and social service professionals.
"This budget means that British Columbians, who rely on our health care system, will pay more for less," said HSA president Reid Johnson.
The government will introduce additional costs to individuals and families by increasing MSP premiums by six per cent starting Jan. 1, 2010 and beyond, as the budget promises annual increases to the premiums.
Health Minister Kevin Falcon directed health authorities to slash more than $300 million in July. McIntyre said the province continues to face an immense health cost burden.
"The most staggering thing is the increase in health," she said. "The amounts takes us up to $15.7 billion by 2012. The demand as we age continues to outstrip our successes. We have to find ways to do this differently."
She said elevated MSP premiums will not affect those earning under $22,000 and will not as hefty for those earning up to $30,000.
HST delay rejected
B.C. tourism industry officials this week called on the government to delay implementation of its new HST, which is slated to come into effect on July 1. McIntyre said such a delay is not in the cards, but that the government plans to huddle with industry officials to discuss ways to minimize its impact.
Overall, McIntyre said she thinks the HST and other government initiatives - such as the additional $39 million for tourism promotion announced as part of Hansen's budget update - will be good for small businesses, including those in the tourism sector.
She said raising the threshold for what qualifies as a small business from $400,000 to $500,000 in annual revenue will save those businesses money at tax time.
"The best thing of all is we're eliminating the small business tax by 2012, so small businesses won't pay anything," McIntyre said.
The Canadian Federation of Independent Business (CFIB) non-profit organization sent a news release stating the budget was well-received.
"The government has taken a cue from the private sector and BC families by focusing on the 'need-to-do,' not the 'nice-to-do'," said Brian Bonney, B.C. director of provincial affairs.
Green priority in place
The Green Party of B.C. accused the Liberals in a news release of "ending government's commitment to a green economy."
"we witness a slashing of $46 million from the Ministry of Environment, the cancelling of efficiency incentives, an astounding $3 billion in oil and gas tax subsidies from 2008 to 2010, and tax breaks for old energy consumption," said party leader Jane Sterk. "This approach lacks ingenuity and traps us on a business as usual path."
McIntyre said the province continues to be committed to the environment.
"I don't want to leave anyone with the impression that we're moving on. Yes we're preoccupied with trying to get through the difficult economic times but not at the expense of the environment," she said. "We're still looking to invest and attract investment here, and we're totally committed to developing the renewable energy sector."
