February 28, 2007
Budget Debate

R. Lee: It's an honour for me to stand up again in the House to respond to the budget speech, as well as taking a closer look at the throne speech. The riding I serve, Burnaby North, in the city of Burnaby is located in one of the most beautiful areas in British Columbia. We have mountains, parks, lakes, renowned post-secondary institutions, great sports facilities, and most importantly, a community of ethnic and cultural diversity. These strengths attract businesses and industries to Burnaby, especially when the overall economy in the province is strong.

[H. Bloy in the chair.]

This year's throne speech began with the tradition of honouring British Columbians who have passed away since the previous throne speech. It brings back to my memory the words of a former member of this assembly, Val Anderson, and the first unveiling of the Legacies Now logo at the Kensington rink with former Mayor Doug Drummond, and Yung Quon Yu's family farm in Burnaby.

It also led my mind to thinking of my grandfather's farming days on the Musqueam reserve at the southwest corner of Vancouver for over 20 years before he retired in 1965.

When we look at the throne speech or the budget speech, it invariably creates different views of what it means to different individuals. It's important, then, to look at the history as well as the facts.

It's a fact that over the last five years, British Columbians have turned this province into an economic powerhouse. The provincial unemployment rate is at an historic low, and the employment rate is at an all-time high. People are moving back to this province to live and work. The net gain of interprovincial immigration is in the thousands, and we are becoming the first choice in Canada for many international immigrants.

As the economy of our province remains strong, consumer and business confidence increases. We see a

high level of residential and non-residential construction. In Burnaby highrises and new construction projects are popping up everywhere, especially in the Brentwood-Lougheed area.

With increasing economic activities and prudent fiscal management, our government managed to reduce the taxpayer-supported debt to GDP ratio — a key indicator of debt affordability — from 20.6 percent in year 2001-2002 to 14.4 percent in 2006-2007.

B.C. now has regained a triple-A credit rating for the first time in over 20 years. This means that the interest rate of debt services for this province will be lower, saving millions and millions in interest payments to pay for other valuable services.

When we look at the financial situation of this province, it's helpful to analyze the provincial debt. The total provincial debt has three components.

The first one is the provincial government direct operating debt, which is debt incurred over the years by government administration. The second one is other taxpayer-supported debt — mainly capital investment in schools, hospitals, highways and public transit, government buildings, social housing, etc. The third one is self-supported debt, which is debt essentially incurred by Crown corporations such as B.C. Hydro, B.C. Transmission, Columbia Power, etc.

The B.C. government operating debt is a good measure of the efficiency of government operations. In year 1990-1991 the B.C. operating debt was $4.7 billion, or 6 percent of GDP at the time. After ten years of NDP government, by year 2000-2001, it had increased to over $12 billion — more than double.

Our government, however, is on the way to paying down the operating debt to $9.1 billion, or 4.9 percent of GDP, which is a recovery to the debt-to-GDP ratio before the ten years of NDP government. It took us six years to undo some of the damages done by the NDP government. It is not easy, but it is what a responsible government must do.

Let's look at another number: the total taxpayer-supported debt. In year 1990-1991 the total taxpayer-supported debt was $9.8 billion. By 2000-2001 the NDP government had increased the total taxpayer-supported debt to $25 billion. The total taxpayer debt to GDP ratio will decline to 14.8 percent next year from 20.6 percent six years ago, which is really a measure of how responsible our government is in managing the taxpayers' money.

Keeping our financial house in order is the right thing to do, and a responsible government raises people's confidence in the future of this province. Our government is focused on fiscal management, but we are also committed to providing the best supports for B.C.'s most vulnerable and to capitalizing on the Asia-Pacific gateway.

I'm happy that the Conference Board of Canada ranks our health care system as the best in Canada, and our students are winning national and international awards in academics, sports and innovations. Our diagnosis and treatment of cancer patients is the best in Canada.

Burnaby North Secondary School topped the list of advanced placement scholars. Our B.C. hockey and football teams won the most prestigious cups. We have world leaders of business and innovation in this province in such diverse sectors as software development, telecommunications, biotechnology and alternative energy developments.

Our government has taken many steps to create a favourable business environment to encourage investment and entrepreneurship. The government has successfully cut red tape regulations by over one-third and reduced personal income taxes and corporate taxes.

In this budget, income taxes are reduced for families. Every person earning up to $100,000 will be paying the lowest income taxes in Canada, and 250,000 British Columbians will pay no income taxes. How exciting.

More British Columbians than ever before pay no income taxes. For the overall majority who pay, it's the lowest in the country, leaving more money in people's pockets and increasing their choices. They can use the extra dollars to help pay for the rent or mortgage.

In fact, a strong economy allows the government to improve important programs and services such as education, health care and transportation. However, a strong economy also creates an increased demand for housing — hence, the issue of affordability.

I believe this budget has initiated a multi-pronged approach to address many housing issues. From the homeless to the renters, first-time buyers to homeowners, and from people on social assistance to seniors living in their own home, no one is untouched by this budget. The housing endowment fund ensures that even the future generation will benefit from this budget.

This budget is both focused and visionary. In order to keep our economy growing to continue to generate the revenue needed to support our health care, education and social services, we must increase our trade activities, including exports. The emerging economy in Asian countries such as India, China and Korea, and in more mature markets such as Japan, creates many opportunities for British Columbians.

As a provincial government and Canada's only Pacific province, British Columbia is determined to make the most of the opportunities that rest in Asia. After all, our province has some unparalleled advantages aside from our strategic location, our natural resources, our economic stability, our cultural and social links, and our people — all of which are great assets that will help.

But in this highly competitive world that we now live in, it's not quite enough, which is why our government provincially has embarked on something we call the Asia-Pacific Initiative, a culmination of cross-government efforts to think more globally, build on the resources we have and look to form new relationships with individuals outside of our province.

The Ministry of Economic Development will increase international marketing activities to attract qualified business immigrants and provincial nominees. We will expand the B.C. provincial nominee program, and reduce processing time for applicants and recruit additional internal advisers with more in-house immigration specialties.

We'll work with key partners as identified in the Asia-Pacific Initiative. We will lead international activities with other western provinces through the western trade secretariat and leverage opportunities from the 2010 Olympic and Paralympic Winter Games to raise awareness and increase commerce for B.C.

The Ministry of Economic Development will also formulate strategies to ensure that other government ministries help advance B.C.'s Asia-Pacific leadership. Many ministries are already working to ensure B.C. is recognized globally as an integral player in the Asia-Pacific economy, both domestically and internationally.

Canada's Pacific gateway strategy, a key initiative within the Ministry of Transportation's mandate, is a critical component of the broader Asia-Pacific Initiative. Key areas have been identified for action to establish a competitive, full-service transportation corridor between Asia and North America.

In cooperation with the federal government and industry stakeholders, advanced implementation of the Pacific gateway strategy action plan is going to secure federal cost-sharing arrangements for key infrastructure projects to accommodate growth and improve the efficiency of our province's land-based and intermodal links, such as the Pitt River Bridge, lower mainland railroad grade separations and South Fraser perimeter road.

Projects such as construction of the bridge and a new grade-separated interchange at Lougheed Highway and Mary Hill bypass are the first of many Asia-Pacific gateway and corridor projects that will help our local communities as well as contribute to Canada's trade competitiveness.

Participate with all the relevant parties to pursue measures that attract new investment and expand trade volumes is one of the mandates.

Improve the reliability and cost-effectiveness of ports, expand air services through Greater Vancouver and expand use of these facilities by international carriers. Of course, the development of the port in Prince Rupert is very important.

These transportation projects are part of B.C.'s Gateway program to improve infrastructure, reduce congestion and improve the movement of people and goods to boost our economy.

The Ministry of Advanced Education is also striving to make B.C. the preferred international education destination for Asia-Pacific students. Currently the ministry has increased its overseas missions planned for 2007, and the Premier signed a memorandum of understanding with China this past November.

International students have created close to 6,000 jobs in public post-secondary institutions while injecting $511 million into the provincial economy. Close to 27,000 international students from 150 different countries are choosing B.C.'s public post-secondary institutions. This government will embrace Asia-Pacific cultures by supporting its representatives and employees to gain proficiency in Asia-Pacific languages and cultural issues.

The Ministry of Advanced Education is working with post-secondary institutions to expand quality international education activities, market British Columbia as an educational destination, reduce barriers that confront international students who choose to come here and support policy measures to ease transitions between studies and post-graduation employment in British Columbia. It's also helping expand and diversify academic links to the Asia-Pacific region.

The ministry is also creating two new scholarship programs for study abroad: the One World scholarship for study, an integral part of the student's program; and the Pacific Horizons for Youth program to support student travel exchanges with families across the Pacific. A very good service plan.

The Ministry of Agriculture and Lands opened an award-winning FrontCounter B.C. in Surrey recently to serve natural resource–based clients with a specific focus on Asia-Pacific business prospects.

FrontCounter B.C. Surrey reflects the ethnic diversity of the lower mainland by offering clients services in English and 11 additional languages. The Surrey office capitalizes on its position at Canada's Pacific gateway by helping B.C.'s natural resource sector pursue new opportunities in rapidly developing markets such as China and India.

The integrated land management bureau under the Ministry of Agriculture and Lands is also preparing a multilingual DVD that showcases B.C.'s land and resources development information, with the goal of encouraging more international investment in this province.

To enhance the province's Asia-Pacific identity, the Ministry of Attorney General is promoting cultural diversity by building partnerships and collaborations and by supporting the efficient delivery of multicultural services. To support development and growth of smaller communities outside the lower mainland, the ministry is implementing regional integration pilot projects and raising awareness about the benefits of multiculturalism and the elimination of racism.

The Ministry of Community Services has been working closely with the Ministry of Economic Development, which has led sister-city research focusing mainly on how the tool could be used to facilitate B.C.'s relationship with China and other countries.

Most recently the China–Hong Kong Market Advisory Group submitted its report on enhancing the B.C. and China–Hong Kong commercial relationship, including how the province could promote sister city arrangement.

Two of the initiatives recommended in the report link to the ministry's role in the communities: create and maintain a database of sister-city arrangements, and develop a best-practices guide to sister-city arrangements.

The Ministry of Energy, Mines and Petroleum Resources supports the government's Asia-Pacific Initiative by promoting increased investment in British Columbia's mining sector and in new and existing pipelines, both within the province and through British Columbia from Alberta.

It is streamlining and updating legislative and policy frameworks to minimize regulatory burdens and to

Increase British Columbia's competitiveness. It is doing ongoing promotion of our province's alternative energy generation technologies and the hydrogen fuel cell and mining services sectors.

The Minister of State for Mining and staff attended the November 2006 China Mining Congress in Beijing to gather information, to build relationships with key Chinese officials in the mining industry and to attract direct investment in British Columbia's mining sector. By chance, I was there as well.

The forum was an opportunity to promote British Columbia–based mining, energy services and technology businesses, including mine engineering, reclamation and environmental consulting services, the province's hydrogen fuel cell sector, and alternative and green energy technology businesses.

The Ministry of Environment is also working on increasing sales in Asian markets by B.C. producers of goods and services. For example, the ministry is working to cultivate expanded export markets in the Asia-Pacific for British Columbia's seafood products.

The Ministry of Tourism, Sport and the Arts supports the government's work to build closer links with the Asia-Pacific nations and with Asian tourism. Additionally, the ministry is working to establish the Asia-Pacific museum of trade and culture in Vancouver.

The Ministry of Forests and Range supports the Ministry of Economic Development in the pursuit of new markets for forest products through Forestry Innovation Investment Ltd.

In close collaboration in Canada with Canada Wood Group, Forestry Innovation Investment Ltd. is directly responsible for doing the basic market research to determine where the best potentials exist to introduce B.C. wood products and North American wood-frame technology to China's housing sector.

Forestry Innovation Investment Ltd. is also leading the provision of demonstration projects to showcase B.C. wood products and wood construction technologies. In its first two years Forestry Innovation Investment Ltd.'s wholly-owned subsidiary in Shanghai has built Dream Home China–Canada and the wood-truss roofs of two older, low-rise apartment buildings of the type in which nearly half of China's population live.

I was in Shanghai with the Premier to see the completion of one of these projects. This conversion of the flat roof in those low-rise apartments with the sloped roof type we use in B.C. will reduce a lot of energy consumption, and it creates a better environment. The project actually can be completed sooner than the regular concrete construction.

In the coming years Forestry Innovation Investment Ltd. expects to complete a landscaping demonstration project, featuring cedar and pressure-treated wood, and one or more hybrid, low-rise apartment buildings. I was in Guangdong with the Premier last November at the foundation-laying ceremony of one of these projects using our B.C. wood to do landscaping in the park.

Forestry Innovation Investment Ltd. is also seeking markets for our new wood products from the beetle-affected wood. Ministries and Crown services have plans to reflect and advance our leadership role in the Asia-Pacific, and they have the agenda well set up. The focused engagement as well as the relationship strategy to coordinate and support efforts overseas will maximize outcomes here at home, and we will increase market representation overseas.

The Ministry of Economic Development is developing an 18-month engagement calendar, providing detailed descriptions to ensure timely and relevant information to prepare missions and maximize on returns.

We have to reach out to Asia more. We know the importance of personal relationships. Our government is travelling to the region to make and solidify these connections. The Minister of Transportation travelled to China last year to highlight our efforts to become the North American gateway.

This past spring the Minister of Economic Development, the provincial minister responsible for the Asia-Pacific Initiative, travelled to the region. He was followed in the fall by the Premier and myself as Parliamentary Secretary for the Asia-Pacific Initiative and, as well, by the Minister of State for Mining and the Minister of Tourism, Sport and the Arts.

I made many contacts in China while accompanying the Premier in Shanghai, Beijing, and Guangdong, our sister province. More trips are planned as we continue to build these personal connections. Their vibrant economies are drawing the attention of all Pacific nations.

If we want to continue our success, if we want to build on the commerce that already exists with that region, we are going to have to take action. That's why last year the B.C. government created an Asia-Pacific Trade Council.

This group of British Columbians, individuals across many sectors, has been tasked to help set our long-term vision for B.C. in Asia, identifying opportunities and challenges for investment and trade. The council carries out research and uses advisory groups focusing on specific markets to develop recommendations for the Premier in all areas affecting the success of British Columbia. The council has established three market advisory groups, specialized subcommittees, to focus on China–Hong Kong, India, Korea and Japan.

We already have two reports: the China–Hong Kong market advisory group and the India market advisory group, with many recommendations. As a result of their recommendations the province has begun seeking out individuals with experience in Asian markets who can represent B.C. overseas. Those are on-the-ground representatives. We anticipate we will have full-time, on-the-ground representation in key Asian markets within the next few months.

British Columbia has an unprecedented opportunity to reap enormous benefits from Asia's current economic transformation. By showing strong leadership and investing immediately in priority action, by 2010 or by 2020, B.C.'s annual trade with Asia-Pacific could total $105 billion from $25 billion today and add 255,000 new jobs to the economy.

Unfortunately, Canada is already considered to be at least a decade behind our competitors in Asia-Pacific, and it's losing out on major economic opportunities. To address this challenge, the province, as mentioned, has developed the Asia-Pacific Initiative. Just as importantly, the Asia-Pacific Initiative is a signal to other levels of government and our private sector and international partners…

Deputy Speaker: Thank you, Member.

R. Lee: …that we are serious about Asia-Pacific.