Little to cheer for B.C. in budget

VICTORIA - Finance Minister Carole Taylor was quick to offer enthusiastic support for the federal budget.
It’s a little hard to see why.
The quickness was understandable. Radio reporters are always looking for fast reaction for their next newscast and the two Caroles - the NDP’s James and the Liberals’ Taylor - were ready to deliver first opinions an hour after the federal budget was released.
But the support was a little harder to fathom. On balance the federal budget seemed to merit a best an OK rating from the province’s perspective. Some good news, some bad news and nothing defining either way. (That’s not surprising from the first budget from a spanking new minority government.)
Start with the most obvious good news. The budget includes $400 million over two years to deal with the pine beetle crisis. That may not be enough, but it’s a welcome start and an improvement on the $100 million a year coming from the former Liberal government.
There are still a lot of questions about how the money will be used, especially in helping communities prepare to cope the post-beetle crash in the timber supply. But the money is a welcome downpayment on what is needed.
Taylor also praised the Harper budget for maintaining the Liberals’ promise of $591 million for the Pacific Gateway project, a major effort to improve transportation - road, ports and the rest - to help build trade with Asia.
But the Liberal government had promised the money over five years, working to a timetable that reflected the urgency of seizing trade opportunities.
The Harper government has pushed the commitment out over eight years, a significant watering down of the commitment.
Then there’s the bad news.
The biggest disappointment for the B.C. government is the Conservatives’ repudiation of the Kelowna Accord on First Nations. Premier Gordon Campbell travelled the country to win support for the agreement, which committed $5 billion over five years to improving conditions for natives across Canada. He championed it as a moral and economic obligation to end a shameful situation. The deal won the unanimous agreement of premiers and then prime minister Paul Martin in Kelowna last fall and was supported by First Nations leaders.
And the Conservatives blew it up within 90 days. The accord promised about $1 billion a year to improve housing, education and social conditions for First Nations. The Harper budget has committed less than one-quarter that amount.
The Conservatives complained that the Kelowna Accord lacked substance and was simply an attempt to throw money at a problem. That’s a serious rebuke to the Campbell government and setback for dealing with a national disgrace.
(The decision drew quick fire from First Nations’ leaders. Chief Stewart Phillip of the Union of BC Indian Chiefs said it showed the Conservatives couldn’t be trusted - he actually accused them of speaking with “forked tongue.”)
The budget also failed to provide any money to cover Olympic construction cost over-runs.
The cost of Games venues is forecast to be $110 million over budget. The B.C. government has already agreed to pick up half the extra costs.
But despite a big lobby effort from the Vancouver Olympic Organizing Committee, Ottawa hasn’t said it will contribute any more money.
If it sticks with that position B.C. taxpayers could be squeezed for more cash. (B.C. has agreed to take responsibility for all Games cost over-runs or revenue shortages.)
Taylor said she’s confident the federal government will come through. Trade Minister David Emerson is responsible for the file, she said, and understands the seriousness of the issue.
But if he does, where’s the money?
Details of the budget - good and bad - are still to come. The Conservative plan offers a vague indication of an army presence in B.C., which could offer benefits to a community. There are details of specific provisions for targeted industries still to come.
But so far this looks mostly like an adequate budget for B.C. There are few reasons for cheerleading.
Footnote: James seized on the expected lack of child care funding as a significant problem. The Conservatives’ decision to cancel the federal-provincial child care deal in favour of a $1,200 child allowance was expected, but it leaves B.C. without a clear plan for child care.