Tuesday, June 21, 2011

Six lessons from a highly predictable riot


It's bizarre that the authorities in Vancouver claim to be surprised by the Stanley Cup riot.
I was on a 9 a.m. ferry from Victoria to Vancouver that day. Within about 30 minutes, it was clear trouble was likely.
The ferry was crowded with young people, mostly male, wearing Canuck's sweaters. They weren't criminals or 'anarchists' (which always suggests a bearded, skinny guy with a round bomb).
They were young fans, ready for a day of drinking and a hockey party. Some of the guys led the passengers in 'Go Canucks go" chants. They had jobs or were in college or university.
One young man in a Luongo jersey told friends he'd been over for Game 5. You had to line up to get into a bar at 2 p.m., he warned them. And you had to keep drinking or you'd lose the table. (Which, he said, was not a problem.)
"Ferry jammed with young people in Canucks' jerseys," I tweeted. "Vancouver police should be biggest cheerers for Canuck win." (Yes, I'm on Twitter.)
I'm no security expert. But it was clear that there would be trouble if the Canucks lost.
My ferry fellow travellers might not set a car on fire or loot a store. But some would watch and cheer, or taunt police, perhaps get in drunken fights if they felt wronged.
People have been drawing an extraordinary range of messages from the riots.
I'd settle for six conclusions.
First, that a proportion of young men are capable of stupid and dangerous behaviour. Destruction and violence please them. The trait must serve some genetic purpose, or it did in the past, but it is a great nuisance today.
It's not a question of intelligence, upbringing, thwarted opportunity or philosophy. Look at Nathan Kotylak, the 17-year-old caught trying to set a police car on fire. His dad is a surgeon. He's a water polo star, set to head off on a university scholarship, a potential Olympian. That's not some loser anarchist wannabe in a hoodie. (And we should also acknowledge that it can be exhilarating to break the usual rules.)
Second, that alcohol remains our most destructive drug. The Canucks' fans on the morning ferry were the usual mix of people, great and not so great, but none of them would do you harm. Many would help if you needed it.
Unless they were drunk. Then, all bets would be off.
And the crowds watching the final game in Vancouver were drunk. People drinking in the street - tens of thousands - were joined by people pouring into the streets after spending six hours drinking in bars.
It was predictable that any incidents would quickly escalate.
Third, that mobs are dangerous. People who would never loot a store or confront police individually can be swept, sheep-like, into stupid and dangerous activities. That conclusion applies just as well to those - generally online - who urged vigilante justice against those involved in the riot. The herd mentality swept them along as well.
Fourth, that we need to at least consider whether our culture - the things our society celebrates - is increasing the risk of such violence and disruption. Hockey did not make people set fire to cars. But it's not unreasonable to wonder if commentators who celebrated violence and actions outside the game's rules legitimized similar acts on the streets. Or whether a steady diet of TV that makes stars of the selfish, stupid, rude and violent influences behaviour.
Fifth, that Vancouver blew it. The police presence was inadequate, several smaller public venues - ideally in open areas - would have been safer, and it's baffling that city staff and police were caught by surprise.
Sixth, that parents should recognize that some of the rioters were people like their own children (or sons, to be more accurate). It's a good chance to point out the perils of drunken gatherings.
We're never going to eliminate stupidity and violence. We can do a lot better than we did this week.
Footnote: Premier Christy Clark ordered a review and promised swift justice and public humiliation for rioters. That led Attorney General Barry Penner to reverse his decision to cut sheriff's hours, a cost-saving measure that had led to even longer delays and more dismissed charges in the courts.

Friday, June 17, 2011

De-spinning the HST numbers

It’s not easy to sort the HST facts from the spinning by both sides in the tax debate.
Start with Finance Minister Kevin Falcon’s claim that going back to the PST would blow a $3 billion hole in B.C.’s fiscal plan over this year and the next three.
That’s a stretch. The analysis by the independent panel that reviewed the HST’s impact suggests a much smaller hit.
This column will be a heavy on numbers. But numbers matter.
The referendum will result in one of two options: A return to the old PST/GST taxes; or staying with the HST, with promised future rate reductions, some new rebates, corporate tax increases and cancellation of the plan to eliminate the small business tax.
Going back to the PST would bring some costs. The federal government took over sales tax administration when the HST was introduced; the province would have to spend $20 million to re-establish the PST collection office and about $35 million a year to keep it operating, the panel found.
Axing the tax could result in reduced economic growth, reducing provincial revenues by $80 million a year, it estimated.
And the panel noted the province would have to pay back $1.6 billion the federal government put up to encourage adoption of the new tax.
The panel — including former Alberta finance minister Jim DInning and ex-B.C. auditor general George Morfitt — judged the impact of that would be an extra $85 million a year in interest costs because of the increased provincial debt.
And, based on the panel’s analysis, the PST would deliver about $610 million a year less in tax revenue for government than the HST, even if reduced from 12 per cent to 10 per cent. (That, of course, means a saving for families.)
But the panel also noted that the government would save about $441 million a year because it could cancel the rebates and tax reductions brought into cushion the HST’s impact.
All in, based on the panel’s analysis, going back to the PST would cost the government about $362 million a year, mainly because families would pay less tax.
Falcon’s estimate is much higher. The main reason is that he concludes, based on preliminary advice from the province’s comptroller general, that the $1.6 billion would have to be repaid immediately and counted as an expense.
Accounting debates aside, the panel offers a more realistic view. Provincial taxpayers wouldn’t suddenly pony up $1.6 billion; they would pay the long-term interest costs.
The claims about impacts on families are just as muddled.
Christy Clark says the revised HST would see taxpayers pay less than under the PST.
That would eventually be true. But not until 2014. In the meantime, individuals and families would be paying more in sales taxes than under the PST.
Based on the panel’s analysis, individuals and families are paying an extra $1.3 billion in sales taxes this year because of the HST’s wider reach. (The portion of a typical families’ spending subject to provincial sales tax jumped by almost 60 per cent under the HST, the panel found.)
Even with the first rate reduction, from 12 to 11 per cent on July 1, 2012, families would still pay $690 million more in sales taxes in the next fiscal year under the HST. The following year, they would pay $430 million more than under the PST.
It’s not until the following fiscal year — 2014/15 — and another one-point cut in the rate, that families would pay less than they would have under the HST - about $330 million less. That amount would increase in future years.
So families would have spent an extra $2.5 billion in sales taxes over three years before they started seeing lower taxes than under the HST. (Rebates to low-income seniors and all families with children would reduce that by about $200 million.)
There are other reasons for voting to keep or kill the HST. But understanding the numbers is a a good starting point.
Footnote: A problem with any look at the numbers is that the government did not ask the independent panel to report on its estimates after announcing the HST rate cut and corporate tax increases. Given the government’s dismal record in providing accurate HST information, that raises serious doubts. Check hstinbc.ca for more on these numbers.

Tuesday, June 14, 2011

Falcon heads to New York to explain two years of chaos

It's not surprising that Finance Minister Kevin Falcon went to New York to reassure big lenders about the province's books.
The last two years have been a fiscal gong show. The government's erratic policy stumbles are the kind of behaviour that makes lenders and bond rating agencies edgy.
Start with the government's botched deficit forecast in the 2009 campaign budget. The deficit, then premier Gordon Campbell vowed in the May election campaign, would not exceed $495 million.
Four months later, the government said the deficit would actually be $2.8 billion.
That's a spectacular failure, the kind that makes lenders wonder what else the government is messing up.
Then, of course, there is the HST. The Liberals ruled it out during the election campaign and then, two months later, announced the introduction of the new tax.
Leave aside the pros and cons for a moment. There is no debate that lenders and investors like stability in tax policy.
A surprise introduction of a major tax change, especially one that had been rejected months earlier, does not increase confidence. And especially when the government concedes it made the tax change without any economic analysis of its impact. (Falcon acknowledges cabinet ministers were heavily focused on the chance to get $1.6 billion from Ottawa to reduce the deficit problem.)
Then things got more erratic.
As public anger about the HST increased, Campbell went on television in November and announced a 15-per-cent income tax cut. That would knock about $1 billion a year off provincial revenues; there was no clear plan for dealing with the shortfall.
Again, a well-considered, affordable tax cut would likely find favour with rating agencies and lenders. This looked like an impulsive effort to shore up a failing government. That impression was confirmed a few weeks later, when Campbell quit and the Liberals said they weren't going ahead with the promised tax cut.
If you're watching this from a New York investment fund or bank, you are likely getting nervous about the competence and stability of the government.
How much more chaotic could things get?
Quite a bit more, it turned out. Because the government last month announced more surprise tax changes. The HST would be reduced in two steps if it survived the referendum, Premier Christy Clark said.
She had rejected that during her leadership campaign. It would be akin to bribing people with their own money and leave the province short of revenue for health care and other needed services, she said.
And the government would raise corporate taxes 20 per cent, said Clark, reversing past cuts - the most recent less than six months ago. (NDP leader Adrian Dix proposed the same increase during his campaign. George Abbott said the idea represented the "leading age of 18-century socialism." Mike de Jong said an increase would be "chasing jobs and investment away.")
You can debate all these individual changes, their benefits and costs.
But taken together, they paint a picture of an erratic, incompetent government that doesn't have a coherent tax policy.
Add to that the government's inability to provide accurate information on the HST. It claimed the tax would result in 113,000 new jobs by 2020; a credible independent panel report commissioned by the government estimated 24,400. It said the tax was revenue-neutral; the panel found it was a tax increase; it said a middle-income family would pay $100 more a year under the HST; the panel said it would be five times that much.
No wonder Falcon needed to head to New York. The last two years of lurching, incoherent tax policy would likely alarm any lender or bond rating agency.
Clark should also be wondering if the last two years have alarmed B.C. voters as well. Because if so, a fall election could be highly risky for a party that has always claimed to offer stable, consistent administration.
Footnote: The latest Angus Reid poll found 56 per cent of decided voters would vote yes to get rid of the HST. It also found 40 per cent of those surveyed considered Clark credible on the tax; 35 per cent considered Dix credible; and 47 per cent thought Bill Vander Zalm credible (he's not). The media came in at 37 per cent (sigh).

Saturday, June 11, 2011

I just like this obituary on 'the Lindbergh of hobbyists'

From a Wall Street Journal obit:

"On a clear Saturday evening in early August of 2003, Maynard Hill stood on a hillside on Cape Spear, Newfoundland, started the motor on his model airplane and heaved it into a light wind.

Thirty-eight hours and nearly 1,900 miles later, the 11-pound plane with a six-foot wingspan landed in Ireland, the first radio-controlled model to make a trans-Atlantic crossing.

Mr. Hill, who died Tuesday at 85, was the dean of model airplane hobbyists and spent decades setting records for altitude, duration, speed and distance. His planes outflew those of the Soviets in competitions during the Cold War.

During the 1980s and 1990s, he developed unmanned aircraft for the armed forces, expendable models carrying radar-jamming equipment, cameras and antitank weaponry.

But despite decades spent convincing Pentagon brass to embrace his ideas, Mr. Hill was a poor fit with the gold-plated contractor's culture and dropped out of defense work.

'He didn't believe his planes should be used for war,' said his wife, Gay Hill."

The rest is here.

A patient's perspective on mental health emergency services

The route to in-patient mental health care on Vancouver Island is through the Archie Courtnall Centre, or psychiatric emergency services. Patients can wait more than a week, sleeping in chairs, before a bed becomes available.
Tara Levis offers a patient's perspective.

"Psychiatric emergency services is nothing short of a nightmare. It is a holding cell for people at rock bottom, waiting for a transfer to the in-patient unit. It is a small room, overseen by a glassed-off nursing station, that at some points holds over a dozen people.

Claustrophobia sets in the minute I walk through the secured doors and if I'm not on edge to begin with, I most certainly am bordering on psychosis when the door shuts and I am confined at the mercy of an overburdened health-care system.

My personal items are examined with a fine-tooth comb and promptly locked away until further notice. I am allowed to keep a journal and a book. I want to cry when they take away my cellphone, my last connection to the outside world apart from the public phone they provide, which is always in use. The items on my person must be guarded at all times as theft is rampant in PES. Blink and my stuff would be gone, likely to be sold for cigarettes."

Read the rest, please, here.

Friday, June 10, 2011

Nurse-family initiative means better lives

It's proven. Support disadvantaged women during pregnancy and through the first two years of their children's lives and you produce positive changes in their lives.
The B.C. government deserves full credit for being the first in Canada to launch a nurse-family partnership program that will see nurses work closely with first-time moms who need support.
Specially trained public health nurses will connect with women early in their pregnancies beginning next year. The nurses will visit once a week during pregnancy and in the infant's first months, with visits tapering to monthly by the time the child turns two.
It's not a new idea. The approach has been used in the U.S. for more than 30 years and results rigorously tracked. And they are impressive.
That's not surprising. Lots of women have great support networks when they become pregnant, and the skills and resources to solve any problems that do come up. They've learned useful lessons growing up they can apply to the challenges of pregnancy and child-rearing.
But others don't. They're poor, perhaps alone in the world or less well-educated. Some have more experience with bad parenting than with good examples.
The program targets those women, likely about 5,000 a year in this province.
The nurse visits to talk about healthy eating and living during pregnancy, planning for the birth, relationship issues -- really, anything the women wants to talk about. For women without real support or advice, the presence of one caring, competent person in their lives makes a huge difference.
The visits continue after the baby is born, with the same goals of providing support, skills and helping mothers make smart decisions and plans.
The benefits seem obvious.
But major long-term research on U.S. versions of the program, which in some cases followed the life course of the mothers and children for almost two decades, are shocking (in a good way).
Dr. Charlotte Waddell, director of the Children's Health Policy Centre in the Faculty of Health Sciences at Simon Fraser University, says nurse visits can mean dramatic improvements in life for mothers and children.
"Even if that's all you do, you can track the mother and child 15 or 20 years later and find that not only is the mom doing much better, but the kids stayed in school," she says. "They didn't get involved in crime, they were at less risk of substance abuse, and there was a significant reduction in conduct disorder."
On one level, it's stunning that a brief intervention -- less than three years -- in the lives of mother and child can set them on a course that helps determine, 19 years later, a teen will be less likely to be involved in crime.
But on another, it's not that surprising. The program sets in a motion a whole range of changes which cascade through the participants' lives.
The research found, for example, that mothers in the program tended to delay any subsequent pregnancies for a longer period than peers who did not have nurse-family support. That meant more time for their first child, and more opportunity to find work and maintain a stable life.
The research also found that mothers who had received the support were more likely to be economically self-sufficient and in stable relationships in future years.
Children were healthier and one study found a 48 per cent reduction in cases of child abuse and neglect, and a 56 per cent reduction in emergency room visits during the child's second year of life. They also did better in school.
The B.C. program is part of a $23-million Health Start effort aimed at mothers and young children.
While governments are often not good at long-term efforts, particularly on social issues, this is an example of just how great the benefits can be.
Not just economically, although society can count on reduced future costs and greater contribution from those involved.
But we will, for a relatively small investment, be changing lives.
Footnote: The details will matter. Success depends, for example, on finding the right nurses to do the work and stability in the nurse-family relationship. It takes time to build trust and understanding; changes that disrupt the relationship undermine results.

Thursday, June 09, 2011

HST adds $5 million to B.C. Ferries expenses

From B.C. Ferries latest financial report:

"On July 1, 2010, the harmonized sales tax (HST) became effective, combining the existing 7% provincial sales tax with the 5% federal goods and services tax (GST) into a single tax of 12%. We expect this tax to add approximately $5 to $6 million annually to the cost of our operations. The HST will also increase the price to our customers for our food and certain retail offerings. Our vehicle and passenger tariffs which were exempt from GST will be exempt from HST."

Which means the HST will also result in higher ferry fares,

Tuesday, June 07, 2011

Liberals just won't face persistent poverty problem

A Times Colonist editorial thought it "baffling" that the government has repeatedly refused to set out a plan to reduce poverty.
Any competent manager understands the need for plans, the editorial observed, and the Liberals have campaigned on claims of competence.
It's not baffling. I've been a manager. I was keen on plans for people who reported to me. If they set out their targets and what they would do to achieve them, I could look at results and assess their effectiveness.
The government wants to avoid that kind of accountability.
It's a shabby position. Especially for a government that, after a decade in power, has still left more than 500,000 people - and 87,000 children - living in poverty.
There has been progress in reducing the number of people whose lives are blighted by poverty.
But, objectively, not much. The B.C. Progress Board, set up by Gordon Campbell to provide reports on government effectiveness, tracks the poverty rate.
It has found B.C. has ranked tenth among provinces every year since the board was created in 2002. More people live in poverty here, year after year, than in any other province. Their numbers have been reduced, but not enough to move B.C. from last place.
B.C. has also had the highest rate of child poverty, according to StatsCan, for seven straight years. The number of children living in poverty has decreased, but, again, not fast enough to move B.C. from its ranking as the worst in Canada.
That's hard to reconcile with Gordon Campbell's claims about the best place on Earth, or Christy Clark's talk about families first.
This should be a fundamental issue for any government. Research has shown that growing up poor greatly increases the likelihood of a lifetime of problems. The Progress Board notes that "people with low income may experience more physical and mental health problems, rely more on charity, attain lower levels of education or have higher secondary school dropout rates."
Leaving aside the human cost and suffering, poverty loads costs on to future generations just as surely as large government deficits do.
The Campbell government repeatedly refused to accept the need for a plan to reduce poverty, and Premier Christy Clark has so far taken the same position. The Liberals say they are doing lots of things that reduce poverty, from policies to increase employment to tax cuts.
But it's striking that when the government decided climate change was an issue, it set legislated, specific targets for reductions in greenhouse gas emissions and developed a plan to meet them.
As it's striking that, after 10 years, progress hasn't been enough to raise B.C. from its ranking as the most poverty-ridden province.
The editorial was right. "Any competent manager" knows a plan is the first step toward achieving goals.
In this case, it would start with an analysis of the current situation - the causes of poverty, the demographics, the policies that have been tried. It would look at anti-poverty efforts in other jurisdictions and learn from success and failures.
And then it would set targets and action plans with timelines, accountability and budgets. Progress would be assessed and the plan adjusted.
It's an obvious, necessary approach to dealing with any problem.
Such a review would identify easy first steps. About 37,000 children are in families living on disability or income assistance. There are among those living in poverty; a single parent with two children who is deemed employable gets up to $660 a month for housing and another $623 a month for everything else. That's poverty. Addressing that - by letting parents earn some income without being cut off, or increasing rates for families - would cut child poverty by 40 per cent.
But the first step is a plan. And by refusing to accept the need - and the accountability for results - the government is ensuring too many British Columbians remain mired in destructive poverty.
Footnote: The New Democrats introduced the Poverty Reduction Act on the last day of the legislative session, which set out a reasonable approach to developing a poverty plan. The Liberals won't support it, but if Clark is serious about "families first," they should announce their own plan.

Would you buy this submarine?



From today's Times Colonist, a photo of the HMCS Corner Brook, one of the four used British submarines Canada bought in 1998.
And the Corner Brook is actually supposed to be in good shape.
The submarine is in the news because it struck the ocean bottom in exercises this week, the latest chapter in a sad and costly bungled purchase, which I explored here.

Sunday, June 05, 2011

Clerk's appointment violates democratic principles

From a good Times Colonist editorial on the appointment of Craig James as clerk of the legislature.

"Our political system includes measures designed to keep a check on potential abuses by the party in power. A key principle is that some positions must be seen to be entirely non-partisan.

"Once again, the Liberal government has violated that principle.

"This week, the government imposed its candidate for clerk of the legislature, a lifetime appointment. The quaint title doesn't reflect the position's importance. The clerk, through advice to the Speaker, interprets the rules of the legislature for MLAs from all parties."

Read the rest here.

For background, here's the column I did on the same issue when James was appointed interim chief electoral officer by the Liberals - another post that's supposed to be made by all parties.

The clerk appointment highlights how wrong the Liberals were in putting James in the chief electoral officer role for 15 months. The officer is supposed to be completely independent and serves a fixed term of two elections plus one year.

But the inevitable perception is that James knew he was a candidate for the $250,000-a-year clerk job during his times as interim chief electoral officer. And that taints the public view of his true independence in making decisions on recall efforts, the HST initiatives and other issues.

Friday, June 03, 2011

Maybe we just don't need MLAs any more

Do we really need MLAs?
They're nice enough people. But as the legislative session ended Thursday after just 24 sitting days, I wondered if we need to pay 85 people salaries starting at $100,000 a year to fill the seats in the red-carpeted chamber.
At least as it operates now.
It's not as if they changed anything in the 24 days. The government introduced its budget. The Liberal MLAs voted for every element of it; the NDP voted against.
There was debate on spending, but because the session was so short MLAs were reviewing and approving about $2.5 billion in spending a day. People spend more time choosing a new sofa.
Bills were passed, but the debates and votes were largely irrelevant. Once the governing party introduced the legislation, passage was a done deal.
There were some excellent private members' bills - legislation advanced by MLAs without official government support. But they went nowhere, as is the norm.
The opposition got the chance to raise issues in question period, which is 30 minutes each day. But maybe there's a cheaper, better way to accomplish that. Issues were raised in other debates, but who reads Hansard?
Really, the elected MLAs could have stayed home. A few performers could have read the expected lines from both sides of the house, MLAs could have given their proxies to the party leaders and nothing would be much different.
MLAs do other work, of course. But constituents' issues could he handled by a competent manager in each riding. And I am unconvinced that the views of a backbench member often have a great role in shaping party policy.
And if MLAs hadn't shown up, they would have been spared the embarrassment of thumping their desks on cue and shouting insults - or watching as their peers shouted - across the floor.
In fact, do we even need candidates to stand for election in 85 ridings, if their role is peripheral? Perhaps it would be more efficient to just let people vote for the parties in each riding, and give the leaders chits for each one they win. They could then use those to cast votes in the legislature.
Since the 2009 election, the legislature has sat for less than 120 days. That's not an indication that there is much pressing work to do.
It might seem radical to suggest MLAs' time in the legislature is largely irrelevant.
But Liberal House leader Rich Coleman apparently shares the view.
The New Democrats had suggested spending another two weeks to deal properly with the budget and the legislation.
But Coleman said no, the government would use closure to end debate on any outstanding business and force bills and budget through the legislature.
He could offer no reason for shutting down the legislature. It's not as if MLAs are exhausted after 24 days, or have somewhere else pressing to be.
Coleman is not out on some partisan limb here. The New Democrat governments of the 1990s showed no more respect for MLAs and the legislature. (Though they did have the legislature in session about 76 days a year, much more than the Liberals have done since 2001.)
I'm overstating the case. Debate can be useful and even, on occasion, bring improvements to bills. MLAs get a chance to raise issues of concern to constituents, or propose legislation. (Independent MLA Bob Simpson had several useful proposals.)
But those are the exceptions.
It's not supposed to be like this. Traditionally, voters would elect MLAs. Those who won the most seats would chose someone to be premier. The premier would owe allegiance to MLAs, who would have the support of voters. We've turned the relationship upside down. And as MLAs' roles have shrunk, the pay scale has risen.
Party leaders have little interest in giving up power. That means MLAs have to find some way to demand it - more Independent MLAs would be a start - or voters have to reward a party committed to real change.
Footnote: It was interesting to see the attention focused on the way Simpson and fellow Independent Vicki Huntington voted on the HST changes. (They both supported them, without saying they supported the tax.) Presumably, their votes mattered because they were the only two MLAs actually using their own judgment on the issue.

Only dead sex workers get our support

From Jody Paterson's column:

"So we’ve got an inquiry into a B.C. mass murder headed up by a man tainted by his political connections, presiding over a process that shuts out almost everyone on the side of the victims.
"Yup, that sounds like a solid way to get at the truth about the Robert Pickton case.
"Only sex workers could draw straws this short. Then again, only sex workers would be left to go missing and murdered on our streets for so long in the first place. It’s baffling and heartbreaking, this misery we sustain in the name of 'morality.'"

It's worth reading the rest here.

Tuesday, May 31, 2011

Clark betrays participants in missing women's inquiry

Christy Clark faced a serious issue in her first question period as premier.
Her response was empty. Attorney General Barry Penner was a more capable government spokesman.
The issue is the missing and murdered women's inquiry.
Commissioner Wally Oppal, a former Liberal attorney general, had to decide who had a right to participate in the inquiry - to question witnesses and play an active role.
Oppal ruled 13 groups had a legitimate interest. They included families of the women killed by Robert Pickton, a coalition of sex-worker groups, several aboriginal organizations and some agencies who worked with the Downtown Eastside people who were Pickton's prey.
And he said that to play their proper role, they would need public funding to help with legal costs.
The government rejected Oppal's recommendation. The families of the missing women would get funding for a shared lawyer. No one else would get public money.
Except, of course, police. They will have a battery of publicly funded lawyers to look after their interests when the botched investigation is examined. Crown prosecutors will have taxpayer-funded lawyers. So will the government and any politicians who might be called as witnesses or even referred to during the inquiry.
But the organizations supporting prostitutes, whose concerns about missing women were ignored, they're shut out. First Nations who want to ask questions to see if racism played in the role in the lack of urgency when women began disappearing, they're on their own.
Oppal said he had only recommended funding for those who had a role to play in getting answers and had "satisfied me that they would not be able to participate fully without financial support."
The government decided to exclude those groups from full participation. Police and politicians would have a battalion of lawyers to protect their interests. Natives, poor women, the disadvantaged - they would have no one.
And it made the decision despite having provided funding for groups with standing at the inquiry into the death of Frank Paul, who died after being left in an alley by Vancouver police.
The NDP basically repeated a single question - would Clark and the government accept Oppal's judgment and fund some legal costs for all parties that should be part of the inquiry.
Clark expressed sympathy. She did a bizarre little riff about families first and the HST rate reduction and B.C. Ferries fares and ICBC, although what that had to do with murdered women was unclear.
But she never addressed the questions or Oppal's recommendations or the issue.
MLA Carole James noted the inquiry would not have been called without the efforts of some of the groups.
Clark responded that "the government said at the time that they would support an inquiry when the legal proceedings were complete. The government kept their promise."
That's not true. The Liberal government consistently refused to commit to an inquiry even when police called for one.
And she maintained the groups could participate even if they didn't have lawyers to represent them at the inquiry. Oppal disagrees.
And if Clark is serious, she could prove it by announcing no public funds will be spent on lawyers for politicians, police and prosecutors. But she won't.
Penner at least addressed the issue. It would cost too much to pay for the legal representation. There were parts of the inquiry where people who didn't have lawyers could be heard.
But he also failed to address the fact that insiders - police and prosecutors and politicians past and present - have unlimited public funding for legal representation.
The outsiders get nothing.
Inquiries do become costly as legal fees mount. But why not impose limits on all involved, while providing equitable funding?
Instead, the government decided that the powerful would have all the funding needed to protect their interests at the inquiry. The powerless could watch from the spectators' gallery.
And Clark never really defended the decision, or even showed that she understood its significance.
Footnote: One aspect of the question period was welcome. Because of the serious topic, MLAs on both sides refrained from the normal shouted insults, rants and cheap theatrics that degrade the legislature.
Sadly, some journalists seemed disappointed by the lack of rudeness and stupidity.

Monday, May 30, 2011

Mangling the facts on 'social entrepreneurs'

I was intrigued when MLA Gordon Hogg stood up in the legislature to talk about "social entrepreneurs."

"Some of the world's leaders in social innovation live right here in British Columbia. The Lower Mainland was recently called by the Ottawa Citizen: 'The Silicon Valley of social innovation in Canada,'" Hogg said.

That would be a useful article to get a better handle on the government's push for social entrepreneurship, I thought.

Except the Ottawa Citizen never said any such thing.

The closest thing was a quote from Axiom News — a website paid by clients to share positive news. "Vancouver was praised as 'the social Silicon Valley' and other glowing accolades as the city played host to the first Canadian Social Innovation and Social Finance tour," said a report on the website.

Members' statements are written in advance; Hogg gets an extra $15,000 on top of the base $100,000 for the parliamentary secretary job; it seems reasonable to assume they would be accurate.

Sunday, May 29, 2011

ICBC and the politicians

From Craig McInnes in the Sun:

"On the flip side, the government also gets to decide what to do when ICBC is deemed to have collected more cash than it needs to meet claims. The B.C. government chose to take for itself $778 million over three years that was collected from motorists in premiums that were subsequently judged to be excessive.

In Manitoba, when the Public Utilities Board found recently that the public insurance company had over-estimated the amount it needed to charge to cover claims, it ordered the money to be returned to the people who paid it rather than be turned over to the government.

The refunds averaged $450 per customer, or about 45 per cent of the previous year's premiums."

You can and should read the rest here.

Friday, May 27, 2011

CLBC funding per-client chopped every year since its creation

The cuts to supports for people with "developmental disabilities" - what we once called the mentally handicapped - are taking a terrible toll. And worse times are ahead.
According to Community Living B.C., the Crown corporation set up to provide services, the amount of funding per client has fallen every year since it was created six years ago.
In 2006/7, the first full year of operation, funding provided an average $51,154 per client. This year, funding will be $45,306. By 2013, according to the government projections, it will be cut to $41,225 per client.
If you factor in inflation, by 2013 the funding available for each client will be 30 per cent less than it was in 2006. (There is a small amount of additional money for a personalized supports initiative; it doesn't change the reality of the annual cuts.)
The result is damaging. People who have lived in group homes for years, happily and in a family-like setting, are being forced out as homes are closed to save money.
People who once had full lives - supported in jobs and social activities - are now spending all day alone. The supports that involved them in the community, helped them keep jobs and gave them rich lives have been pulled away.
Waiting lists for services are growing and, in many cases, services are just denied. No money, says CLBC.
CLBC says several factors, all predictable, are pushing up demand for services.
The corporation takes responsibility for supports when people turn 19. CLBC says parents, after seeing their children assisted through the school years, expect quality services to continue.
Too often, they don't. Teens who have been thriving with effective supports face disaster when they become adults.
Like Jonathan Martin of Burnaby. He has Down syndrome and autism. He's been supported as a youth and CLBC's own report says he needs continued support and access to day programs next month when he leaves high school. "There is a grave concern that Jonathan's independence and acquired skill would quickly decline after he finishes school and if day program is not available," the agency's report says, according to the Burnaby NewsLeader. "Constant supervision is required for huge safety concerns."
But CLBC says it has no money. Jonathan will go on a wait list, with no real chance of getting support.
At the other end of the age spectrum, CLBC reports that people with developmental disabilities are living longer and needing more support as they age.
At the same time, many aging family caregivers, usually parents, can no longer provide as much support and are turning to CLBC.
They are finding the support isn't there.
That is particularly cruel. All parents worry about their children. But most enter old age knowing that their sons and daughters are launched.
Imagine the anguish in fearing that your death or incapacity will leave your developmentally disabled adult child at risk of exploitation or neglect. Knowing that the efforts you made to help ensure a safe, productive, satisfying life could end in tragedy.
The B.C. Association for Community Living has supported CLBC since its creation and continues to applaud the efforts to provide individualized supports.
But executive director Faith Bodnar says underfunding has reached a critical point. "Insufficient funding to CLBC has meant reacting to crisis only and the real danger of relegating people to lives of isolation and subsistence as their supports and services are cut," she wrote this month. "For people with developmental disabilities and their families it has created uncertainty, desperation, vulnerability and real suffering as they experience cuts to services or are placed on waitlists without hope."
There are pragmatic reasons for providing these services.
But this is also a moral issue. These are vulnerable people who, with help, can live rich, satisfying lives. They have the right to that opportunity. We have the collective ability to give them the chance.
But the government, on our behalf, has decided that would cost too much.
Footnote: CLBC notes that part of the pressure from services comes from the province's "five great goals," set by the government in 2005. The third goal called for B.C. to "build the best system of supports fpr persons with disabilities, those with special needs, children at risk and seniors." It turns out families believed the government was serious.

Wednesday, May 25, 2011

Desperate, expensive gamble to save HST

Governments aren’t supposed to make tax policy — or prepare budgets — like this.
The Liberals’ last-ditch attempt to save the HST is a dramatic flip-flop on tax principles they once said were essential for the province’s future.
Finance Minister Kevin Falcon says that if voters decide to stick with the HST in this summer’s referendum, the government promises to cut the rate from 12 per cent to 11 per cent on July 1, 2012. There would be another cut to 10 per cent on July 1, 2014, assuming the Liberals are still in office.
By 2014, Falcon claimed, the tax burden on individuals and families would be less than it was under the provincial sales tax,
But wait, as they say on late-night infomercials, there’s more. If voters stick with the HST, the government will send out one-time payments to help cover some of the increased tax burden. Families with children under 18 will get $175 per child; low-income seniors would also get $175. (Using taxpayers’ money to send cheques to the province’s richest families hardly seems sound public policy.)
Cutting the HST rate by one percentage point, according to Falcon, would cost the government about $850 million a year. So by 2014, the government would be taking in about $1.7 billion less in revenue than it had planned.
No worries, says Falcon. The government would still balance the budget by 2013/14 and manage despite the lost revenue.
If the HST is approved, he said, the government would raise the corporate income tax rate from 10 per cent to 12 per cent, reversing past cuts. That would bring in about $400 million a year.
And the government would cancel the planned elimination of the small business tax, adding about $250 million a year to government revenues.
That still means government revenue would fall by $1.7 billion a year when the HST rate reductions were in place.
The other tax changes would bring in about $650 million, leaving a billion-dollar gap.
Falcon’s claim the budget can still be balanced on schedule rests on the fact that the full impact of the HST cuts won’t hit until after the target date. Even so, the government’s forecast allowance and contingency funds — the cushions against unexpected revenue losses or spending needs, like a bad forest fire season — are now committed. There is no margin for unforseen events And the budget already called for spending cuts in most ministries this year, with a freeze in place for the following two years. (Health being a notable exception.)
Given the Liberals’ track record of HST misinformation, Falcon should present a clear budget plan showing how the revenue shortfalls will be handled before people vote in the referendum.
The Liberals’ credibility overall is hurt by the latest lurch from tax policies they once said were critical to the province’s future.
Take the corporate tax increase. When NDP leader Adrian Dix advocated the same tax change, Falcon said corporate tax increases would threaten the fragile economic recovery. Education Minister George Abbott said the proposal represented “the leading edge of 18th-century socialism in this province.”
Or the HST rate cut. When Falcon proposed an HST rate reduction during his leadership campaign, Christy Clark was critical, saying the government couldn’t afford to give up billions in revenue. Anyway, she said, changing the rate before the referendum would just look like the Liberals were trying to buy people’s support for the tax with their own money.
Credibility is a big referendum problem. The Liberals have provided misinformation on the HST every step of the way, underestimating the costs to families, inflating the economic benefits and claiming it was revenue-neutral. All the claims were contradicted by an expert panel the government appointed.
And now they are offering a new tax policy and making new claims with only weeks to go before the referendum, leaving no time to commission a new independent analysis to replace the now largely useless one.
Trust us, Clark says. This time we’ve got it right.
Some voters will. Some will look at the costs of getting out of the HST and decide it’s best to stick with the tax.
But many will likely be seeking much more information before buying the government’s claims this time.
Footnote: The New Democrats seized on past comments from Clark in question period Wednesday. During the leadership campaign, she rejected Falcon’s call for a rate cut. “Cutting the HST by one point is more than $800 million out of the budget this year and every year after, $1.6 billion for a two-point cut, and we need to ask ourselves where we’re going to get that money, because we’re either going to have a $1.6-billion bigger deficit, or we’re going to get $1.6 billion fewer heart operations, special needs teachers, school facilities, hospital emergency rooms.”

Friday, May 20, 2011

Poll results support early election call

There’s good and bad news for both B.C. parties in the first big poll after the leadership races.
For starters, they’re both probably relieved to be in a tie.
The Liberals have the support of 41 per cent of decided voters, the New Democrats 39 per cent, according to the Ipsos Reid poll released this week. That’s within the margin of error.
And both parties are even likely heartened that people think the Liberals are unethical and doing a lousy job of governing, for different reasons, of course.
It has to be reassuring for Christy Clark and company that the Liberals have 41-per-cent support when the government is widely seen as incompetent, according to the poll. That indicates a deep concern about the NDP would be even worse.
The survey found dissatisfaction with the Liberal government on every issue.
Respondents were asked if they approved or disapproved of the government’s performance since the 2009 election. The only positive was on its handling of the economy — 51 per cent approved, 43 per cent disapproved.
But on education, environment and crime and justice, a significant majority of those polled gave the government thumbs down.
The results were even more negative for the government’s handling of taxes and health care — and on spending taxpayers’ money wisely. Sixty-five per cent of those polled thought the government is doing a poor job in managing spending; only 29 per cent gave the Liberals positive grades.
And the results were worst for ethics and accountability. Only one in five respondents approved of the government’s performance in this area; 70 per cent found the Liberals wanting in terms of ethics and public accountability.
That’s why Clark has been working so hard to distance herself from Gordon Campbell — no easy task given the presence of all his key lieutenants at her side — and reduce obvious irritants, like parking fees in parks. If the party is doing well in the polls now, while people think it’s doing a poor job, there’s a chance of gains.
But Adrian Dix and the New Democrats can take encouragement from the Liberals’ poor marks as well.
They show Clark is vulnerable if the NDP can convince voters that it’s ready to provide better government.
And the poll results suggest that’s possible.
Clark scored much better when the pollster asked about the leaders. Almost 50 per cent of voters said she would make the better premier; only 25 per cent picked Dix.
And 36 per cent of voters said they have a positive impression of Clark, while 22 per cent have a negative impression.
Dix scores the same for negative ratings, but only 20 per cent have an overall positive impression.
That means, of course, that almost 60 per cent of voters don’t have views one way or another on Dix. His challenge is to shift more of those people into the positive column, while hoping Clark faces enough tough choices that her numbers slide.
That’s certainly possible. Being premier, even a new, election-mode premier, means you have to do some things people don’t like.
But when former NDP leader Carole James started, polls found a large portion of the public had no opinion of her and she had difficulty in shifting them into the “positive” camp.
The poll included another finding, one that adds to the factors encouraging Clark to call an election in the coming months.
The relaunched provincial Conservative party — which hasn’t been a significant factor — had the support of 10 per cent of decided voters. That’s a serious base for party leader John Cummins to build on. And it’s already enough to raise the threat of vote-splitting in close ridings. If enough Liberal voters opt for the Conservatives, then New Democrat candidates have a much better chance.
All in, the poll suggests Clark should be looking at an election as soon as possible. Her approval is high, Dix is unknown and the Conservatives aren’t yet organized.
All those could have change by the end of the year.
Footnote: NDP support is concentrated on Vancouver Island; the Liberals are strongest in the Interior and North, while the parties are even in the Lower Mainland. Conservative support in the Interior is above 15 per cent.
And, significantly, the Liberals have a lead among people over 34 — the ones most likely to vote.

Thursday, May 19, 2011

Criminal record searches, free, public, online

That's what the B.C. government has provided. Wonder if your son's girlfriend has a criminal record? Your boss? Check them out.
Jody Paterson has the info here. Like her, I'm still thinking about this. (A triumph for information freedom, or a destructive invasion of privacy. I'm leaning toward the former.)

UPDATE
I'm reminded the criminal record information has been available, at no charge, since the fall. Fees were lifted as a result of the award-winning Access Denied project by Times Colonist reporters Lindsay Kines, Rob Shaw and Louise Dickson. The series looked at the erosion of access to information that was supposed to be public in courthouses.

Wednesday, May 18, 2011

Tuesday, May 17, 2011

Clark promises more democratic nomination contests

Colin Hansen's convention pitch for a new name for the Liberals sparked much talk - and many jokes.
It's interesting. But much more significant was Premier Christy Clark's pledge to end the party's practice of preventing nomination challenges for incumbent MLAs. That's been an unwritten, but strictly enforced, rule.
It's profoundly undemocratic. Someone who wins a Liberal nomination in a safe seat can sleepwalk through a couple of decades in the legislature without having to worry about being challenged for the party nomination.
There's little incentive to pay much attention to the concerns of local residents. The nomination is guaranteed and, in many ridings, victory in the election would be almost certain no matter who the party ran.
And there is considerable incentive to place the interests of the party brass ahead of local residents, because they're the key to job security.
And there's little chance for party renewal. A brilliant potential candidate, with great credentials and broad community support, might be in the wings. But unless the incumbent decides to retire, it's impossible to challenge for the nomination.
It's an odd position for the Liberals, who talk a lot about how free competition brings the best results. Except when it comes to competition for MLA jobs, with their $100,000 base salary and dandy benefits.
Clark said that's going to change. Well, actually, she claimed that there had never been a ban on nomination challenges and wouldn't be as we head toward an election. "The B.C. Liberals have never had a policy of protecting incumbents," she told the Globe and Mail, "and we are not going to start doing that now."
Clark's claim was immediately contradicted by MLA Kevin Krueger, who said he enforced the ban on nomination challenges as caucus whip. People who wanted to challenge an incumbent were "encouraged" to look elsewhere, he said. "It was not 'open season' and it won't be 'open season' this time," he said.
Krueger is more believable. That raises the possibility that Clark doesn't really want to end the practice, just to pretend it's not happening.
That would be a shame.
There are risks to allowing open nomination contests. A well-funded, ambitious would-be candidate could hijack a constituency association, sign up a bunch of instant party members and take over without real support from party members.
But simple rules could prevent that. Something as basic as requiring people to be members of the party for at least six months before being allowed to vote in a nomination contest reduces the risks.
And the benefits, for the public interest, are great. MLAs would have to pay much more attention to the concerns of the riding, rather than the interests of the party, to ensure they weren't replaced.
Meanwhile, Hansen's call for a new party name had to have been made with Clark's blessing. Many voters are confused and think the provincial party has some connection with the federal Liberals, he said. Which is not a good thing these days.
Perhaps a different name might better reflect the party's coalition of centre and centre-right voters, Hansen said.
A name change would mean a pretty short run for the modern incarnation of the Liberal party, revived by Gordon Wilson in 1991. It's interesting that after winning three elections, the party still doesn't feel comfortable with its name. Or believe that it has built loyalty among voters.
It's possible that nothing will come of the idea - that simply floating it was a way to suggest to voters that the party is keen to distance itself from its own record. (No wonder Gordon Campbell chose to skip the convention.)
Whatever the party is called, it would be welcome if it loosened the straitjacket that prevents party members from nominating the best candidates to represent their ridings in favour of a system based on seniority, not performance.
Footnote: The convention also saw Clark promise some sort of changes to the HST in an effort to win a yes vote in next month's mail-in referendum. And she continued to signal a desire for an early election, urging delegates to prepare for the campaign.

Sunday, May 15, 2011

Conrad Black on the war on drugs

"Unfortunately, like archaic cultures that clung to the belief that the Earth was flat, those who support mandatory minimum sentences for drug crimes are willfully ignorant of the near universal consensus that mandatory minimum sentences are both extremely costly and ineffective."

And a joint byline with UBC's Evan Wood. Read it here.

And, loosely related, an excellent and personal argument in favour of Insite here is also worth your time.

Friday, May 13, 2011

Tax hike can stay if HST defeated, Falcon says

The Liberals are in the process of making another big mistake on the HST, one that will rekindle public anger about their sneakiness.
The anti-HST initiative — supported by more than 700,000 British Columbians — was clear. The goal was to kill the new tax and go back to the provincial sales tax “with the same exemptions as were in effect as of June 30, 2010,” according to the petition and the official Elections B.C. summary.
The campaign succeeded. That didn’t necessarily mean the tax would go. Under initiative legislation, the government can ignore even successful efforts.
But then-premier Gordon Campbell was also clear. He promised a binding referendum to see if British Columbians supported the anti-HST initiative. The people had spoken, the question should go to the voters and their decision respected, Campbell said.
Bill Vander Zalm, the improbable leader of the anti-HST forces, feared a trick. Turns out he might have been right.
Because eight months later, the Liberals are weaseling.
Finance Minister Kevin Falcon says the Liberals will ignore the critical element of the anti-HST initiative — the restoration of the exemptions in place before the new tax was imposed.
That means that even if voters defeat the tax, the government could continue to collect more than $1 billion a year in increased taxes from individuals and families. (The province’s panel estimated the increased cost at $1.3 billion.)
It’s a transparently sneaky attempt to get around the initiative. It risks rekindling all the anger about the way the tax was sprung on British Columbians. And it makes the Christy Clark government look as bad or worse than the Campbell government.
The HST works in two ways. It’s a tax shift from businesses to families and individuals, because businesses had to pay the PST and don’t have to pay the new tax.
And it increases taxes on individuals and families, because a wide range of goods and services exempted from the former provincial sales tax are subject to the HST.
The successful initiative campaign called for the tax be eliminated and all those exemptions restored.
That’s the message Campbell promised to heed.
And now Falcon is breaking the promise, making a mockery of the anti-HST petition and Campbell’s commitment.
It’s a position certain to anger a lot of voters. The New Democrats have spent a lot of question period time asking Falcon about whether the government would restore the former sales tax exemptions.
The PST didn’t apply to restaurant meals, for example. The HST does. The industry — supported by StatsCan numbers — says the extra seven per cent tax on meals has hurt.
But Falcon says that even if voters reject HST is rejected, the government might extend the PST to restaurant meals. The provincial tax didn’t cover labour, or bicycles, or some health treatments. But Falcon says that if even the HST is axed, the provincial sales tax might be imposed on all those things.
The government will decide after the referendum, he says.
That would a giant tax grab and a fundamental betrayal of the commitments on the referendum
Maybe the Liberals know what they’re doing. They have a bunch of people being paid in the six figures — at your expense — to come up with clever strategies and messaging to save the tax. And they are spending $6 million-plus to sell it.
But Falcon’s approach seems weirdly wrong.
The HST initiative called for a return to the provincial sales tax, with the exemptions. Campbell promised a binding vote on that question.
But Falcon is it doesn’t matter what voters say in the referendum, the government is free to leave the tax hike in place. The government knows best.
Which is the attitude and approach that cost Campbell his job.
Clark’s narrow byelection victory should be a warning. She has not yet won over voters and hopes for a fresh start can fade fast.
A betrayal on the fundamental HST issue would be disastrous.
Footnote: The government is also running a risk with its heavy spending to try and secure a yes vote for the HST. Falcon announced a $5-million ad campaign this week, on top of $700,000 already committed for a pro-HST flyer to go to every household and undisclosed costs of telephone town halls and the HST information office. There’s a chance the ad effort will backfire, angering taxpayers.

Tuesday, May 10, 2011

Carbon offsets hurt schools, help Encana

School districts across B.C. are chopping budgets because they don't have enough money.
At the same time, they're being forced to fork over millions for global-warming carbon offsets - and some of the money is handed over as subsidies to profitable corporations.
It might be clever policy if you're sitting in the premier's office.
Not so much if you're a sitting in a elementary school in Big Lake, in the Cariboo.
Independent MLA Bob Simpson told the legislature that students from eight grades are in one classroom, including kindergarten and special needs students. The school district doesn't have enough money to provide another teacher.
But it still has to send $87,000 to the Pacific Carbon Trust, a Crown corporation, to buy credits to offset the greenhouse gases it produces busing students and heating schools.
Across the province, school districts have been forced to buy some $6 million worth of carbon credits this year from the Crown corporation under the Liberal plan to cut greenhouse gases.
The theory is sound. Organizations - businesses, municipalities, school districts - would be issued permits allowing a specific level of emissions. If an organization could cut its greenhouse emissions to a level under that limit, it could sell the unused capacity to some other organization that couldn't meet its cap.
That would encourage investment in new equipment and innovation in areas like increasing the number of people working from home.
But there are problems.
The market can be gamed, for example. If I owned a failing greenhouse business, I could shut down and sell my carbon credits to a company that wants to keep on pouring out greenhouse gases. I make money and emissions aren't really reduced.
And huge windfalls are possible for some companies or sectors, depending on how the original emissions quotas are set.
That's where things have gone wrong in B.C.
When Gordon Campbell decided climate change was a threat to life on Earth in 2007, he promised a coherent plan, including the carbon tax and a cap-and-trade system to create a market for emissions.
Government, including school districts and health authorities and municipalities, would be carbon neutral, he said. They would cut emissions as much as they could and buy offsets to cover the rest.
The carbon tax is in place. The public sector has been required to buy offsets. Pacific Carbon Trust, the Crown corporation, is collecting those payments and providing money to companies for projects that reduce their emissions - the offsets. The Four Seasons Hotel, for example, got money from the trust to put in a new, more efficient heating system. It calculated the emission reduction - 1,963 tonnes over three years - and the trust paid an undisclosed amount per tonne.
But the government hasn't introduced the cap and trade system for business and industrial users (although a few companies have voluntarily bought credits).
Three years after the planned implementation in 2008, there are no caps for business or industry.
Companies can get money from the Pacific Carbon Trust -at this point, mostly taxpayers' money - if they promise to do something to reduce emissions. Effectively, a subsidy for their emission-reduction plans.
But they don't have to buy any credits if they make changes that increase their emissions. It's a sweet deal.
So Encana, a big player in the province's natural gas sector, can increase its emissions without penalty.
But if it can convince the Pacific Carbon Trust that it has a valid plan to reduce them, it can claim a subsidy. And it did, telling the trust that a new way of drilling gas wells would reduce emissions. The trust won't say what it paid the corporation, but figure more than $2 million.
It benefits from the credits cash-pressed school districts have been forced to buy.
A transparent, well-managed and widely applied cap-and-trade system is an excellent way to put a value on emissions, making it worthwhile to find ways to reduce them. Without it, B.C. has little chance of meeting its greenhouse-gas reduction targets.
But until such a plan is in place, it's wrong to expect schools, hospitals and municipalities to cut services to cover the costs of carbon credits that are only mandatory for taxpayer-funded entities.

Friday, May 06, 2011

From owning bars to provide group homes for children

Jody Paterson takes an interesting look at the for-profit group home in Prince George where an 11-year-old was tasered.
Paterson writes:

"The owner of the group home, Taborview Programs, is a home-grown Prince George entrepreneur, Jordy Hoover. He’s better known in the region for the many bars and liquor stores he owns.
Hoover also owns 30 greenhouses, a nursery growing three million seedlings for the forest industry, and a gravel operation. A 2009 story in the Prince George Citizen described him as having 'a diversified portfolio of business in the city.'
That portfolio includes 26 beds for youth with profound behavioural problems, disabilities or other special needs. Hoover received almost $3 million from the Ministry of Children and Family Development in 2009-10 to provide those services. (That same year, he and his companies donated more than $32,000 to the B.C. Liberal Party.)"

You can read the piece here.

Crossed the 300,000 visit mark today

To the site, that is. I can't remember when I added Sitemeter, and so don't know how long it took.
But anyway, thanks for stopping by.

HST report makes the tax a much tougher sell

The Liberals’ hope of saving the HST took a big blow this week.
The government asked an impressive expert panel to do an independent report on the tax, hoping to build support.
Instead, the report trashed the government’s claims. 
The panel did find the tax would help the economy and result in more jobs. 
But it would also increase taxes for 85 per cent of families and reduce taxes for business. The costs to families were greater than the government had claimed. The economic benefits were much smaller. The government’s credibility on the HST was further shredded.
Three issues are likely to come into play in the referendum — the actual impact of the harmonized sales tax, the incompetence or dishonesty of the government in introducing it and the costs of getting rid of the HST.
They all matter. And the report offers the most credible assessment so far of all three.
The report found the harmonized sales tax will cost families and individuals an extra $1.33 billion a year, after accounting for the rebates and tax changes introduced to ease its impact.
That’s $295 for every person — adults and children — in the province.
In practice, the impact isn’t the same for everyone. Broadly, the more you spend the more you pay. Only the poorest people, with incomes under $10,000, will come out ahead thanks to tax rebates, the panel found.
Everyone else is paying more as a result of the HST. For a family with a household income of $70,000, the HST adds $527 a year in taxes on basic living expenses, the report says. That doesn’t include the HST on less frequent items, like new home purchases or big repairs.
That’s far more than the government claimed when it introduced the tax. In fact, its website set up to sell the tax continues to claim a family at that income level is only paying about $107 more in tax — one-fifth the amount the panelt says is the real cost.
The panel found the government has provided — and continues to provide — wildly inflated estimates of the economic benefits.
The government has been claiming, based on a $12,000 study it commissioned after the tax was introduced, that the HST would result in 113,000 new jobs by 2020. (The government did no studies or analysis before introducing the tax.)
But the panel says benefits are hard to assess, but the most likely estimate is an extra $2.5 billion in economic activity and 24,400 more jobs by 2020 — less than one-quarter the job growth the government has claimed.
Any new jobs are welcome. But the report is projecting just 3,000 additional jobs a year; B.C. added three times that number last month, by way of perspective.
The panel also found the government has presented inaccurate information on two other important aspects. The tax is not revenue neutral — while individuals and families are paying $1.33 billion a year more, companies are paying $730 million less. That means the HST is, in fact, a tax increase. It also means claims that consumers would also see price decreases because of the reduced tax on businesses were exaggerated.
The report radically changes the cost-benefit assessment from the glowing picture presented by the government. The extra tax on consumers will add up to more than $10 billion by 2020. The economic benefits will be much smaller.
And it will fuel the anger of those determined to vote against the tax because of the way it was introduced. The clash between the panel’s assessment and the information provided by the government will be seen as evidence of incompetence or dishonesty.
The report did find that returning to the provincial sales tax would be costly and difficult. The government would lose the extra tax revenue and likely have to repay the $1.6 billion Ottawa provided as an inducement to harmonize the provincial sales tax and the GST.
But its overall findings are bad news for the government.
Footnote: The government appears to be considering changes to the HST to make it more palatable, including promises of a lower rate. The problem is that it has insisted in the past that changes — such as exemptions for restaurant meals or for bicycles — are impossible under the agreement with the federal government.

Wednesday, May 04, 2011

Tuesday, May 03, 2011

Opposition choices: Co-operate, or be crushed

The federal election results have sparked a lot of discussion about the need for a party that could unite centre-left voters - people not inclined to vote for Harper’s Conservatives.
That rates a separate column.
But there are incentives for the opposition parties to co-operate now. If they don’t, they risk being rolled over by the Conservatives.
Jack Layton is the opposition leader. But his caucus includes many MPs who never thought they would be elected; they ran as placeholders. Some will likely be effective. Others will hate the job, or be dismal at it.
Unexpected political success is risky. I was living in Peterborough when Bob Rae’s NDP won a surprise Ontario election victory in 1990. Our MPP, who ran as a New Democrat candidate expecting to be defeated by a popular Liberal incumbent, ended up as energy minister. Six disastrous months later, she was dropped from cabinet. It was not a happy experience for anyone. The Rae government was a one-term flop.
The Liberals are shattered. Leaderless, adrift, rejected, demoralized and broke.
And while Green leader Elizabeth May is buoyant now, rightly, the challenges in Ottawa will be tough.
All parties face the end of public funding, one of the changes Stephen Harper promised if he won a majority. The funding - roughly $2 each year per vote received in the previous election - was an overly generous replacement when corporate and union donations were banned.
The change is huge.
The Green party raises about $1.1 million in donations from supporters, and received $1.9 million in public funding. Spending will have to be slashed.
The New Democrats got about $4 million in donations and $6 million in public funding. About 60 per cent of their spending is going to have to stop.
The Liberals got $7.3 million in public funding and $9 million in donations. They too face cuts.
The Conservatives will be affected. As the top vote-getters, they received $10.4 million in public funding.
But they also pulled in $17.7 million in donations. The other three parties combined received $15.1 million.
The opposition parties also face a skillful Conservative government, with - based on the finding of contempt of Parliament - a willingness to do whatever it takes to reach political goals.
The questions around long-term alliances, or new parties, are complex.
But if the NDP, Liberal and Green MPs don’t co-operate now, at least in the short term, they’re likely going to be shredded.

Hallsor on Lunn's defeat, and the election

Bruce Hallsor was Gary Lunn's campaign manager. (And a controversial figure in the last election - see here.)
He offered a simple, but inaccurate explanation for Elizabeth May's convincing victory over Lunn this time.
Hallsor said Lunn's support stayed about the same, and May united the non-Conservative
vote.
That's only partially true. Lunn actually captured about 3,500 fewer votes than he did in 2008.
And even if he had held all his support, he would have lost this time.
Hallsor said May's success was in winning Liberal and NDP support. "We're used to having the opposition split and Elizabeth pulled it together."
There's more basis for that claim. And the vote split was a factor that produced Conservative victories in a lot of ridings this election. The number of people voting jumped by seven per cent — about 4,500 more people cast ballots than in 2008.
It appears the Greens captured the interest of non-voters and had the organization to get them to the polls.

Monday, May 02, 2011

Conservatives poised for long time in power

Assuming Stephen Harper and the Conservatives don't mess up, they are now poised to settle into government for many years.
It's not just that Harper has finally won a majority on his fourth try.
But the victory came largely because of the dramatic collapse of the Liberals. The party, for the first time in Canadian history, fell to third place in Monday's election. With 34 seats as I write this, the party is desperately weak. It faces fierce challenges in the months ahead and might not survive.
The New Democrats made big gains as a result of falling Liberal support and the collapse of the Bloc Québécois. The party, for the first time in its history, has the second largest number of seats, at 104. Jack Layton will lead the official Opposition.
But the NDP surge also is largely responsible for the Conservative majority. (The Conservatives' targeted campaign also deserves credit.)
The Harper party's share of the popular vote scarcely changed, from 37.6 per cent in 2008 to about 40 per cent in this election.
That translated into a 20-per-cent increase in seats, because the NDP gained votes in ridings that had been held by the Liberals. In many of those, the result was a Conservative victory.
The Liberals are left in a dismal situation, which will only get worse. They will have a minor role in Parliament and face a potentially divisive leadership campaign to replace Michael Ignatieff.
Harper's majority means he will go ahead with his plan to end public financial support for political parties. Liberal donations will plummet as a result of their third-place finish, leaving the party short of the money needed to rebuild.
All this should create some hard decisions for the two main opposition parties. The Liberals aren't beaten into the dirt as the Conservatives were in the 2000 election, setting the stage for their takeover by the Canadian Alliance.
But they aren't far off. The Conservatives won 12 seats in 2000; the Liberals' 34 in this election isn't much more impressive.
The Liberals are lost. They can't pry votes from the Conservatives' base and they can no longer count on being the default choice of centre-left voters.
That's almost certain to lead to pressure to unite the centre-left, as Harper united the centre-right.
And those discussions will create additional problems for the Liberals, with members likely to be sharply divided on any alliance with the New Democrats.
The Bloc collapse was even greater than the Liberal stumble, with the party reduced from the 49 seats won two years ago to just three. That's not necessarily a good thing in terms of national unity.
The Conservatives have just six seats in the province; Quebecers will again be on the outside of the national government.
It's also hard to know what to make of Green party leader Elizabeth May's victory in Saanich-Gulf Islands. It's a historic win; the Greens have never had a seat in Parliament.
But at the same time, the party's support across Canada fell sharply and it has demonstrated no potential as a serious political force. May has four years to change that.
Now the attention shifts to Harper. His entire campaign was based on the need for a majority to allow him to complete his agenda (and the perils of a coalition by the other parties).
But Harper still only has the support of a minority of Canadian voters, and he faces some significant challenges in fulfilling his commitments. Big spending cuts, for example, will be needed to meet the timeline for eliminating the deficit, with no clear indication where those savings will be found.
And, based on the campaign, Layton will be an effective opposition leader. His success in the election came from a positive campaign that convinced many Canadians he understood the issues that mattered to them. He now has four years to reinforce that, while portraying Harper as out of touch.
It's customary to claim most elections bring dramatic change to the political landscape. This time, it's true.
Footnote: The Conservatives elected the most MPs from B.C. with 20, but they and the Liberals still lost seats. The Liberals are down to two MPs. The New Democrats gained and have 13 seats.

Reminder on strategic voting

A pretty thorough riding by riding guide is available here.

About those fat severance cheques

The federal election shifted attention from the $2.4 million in severance payments made after Christy Clark decided on some post-victory housecleaning. That's only a small part of the total cost - more people were fired as part of the purges.
The Times Colonist had a useful editorial Saturday, reprinted below.



"Generous severances

Taxpayers should feel abused by the rich severance payments to 13 senior managers terminated by Christy Clark days after she took office.

The payments totalled $2.4 million, or about $185,000 per person. The highest payment went to Gordon Campbell's displaced deputy Allan Seckel, who got $550,000. Paul Taylor received $114,000 even though he had only been hired as Campbell's chief of staff six months ago. The amounts will rise once bonuses are added.

The payments -first reported by Sean Holman of publiceyeonline.com -raise two issues. First, did Clark need to terminate all these people, or could they have been offered other positions and continued to contribute? Most could and that would have been less disruptive and saved money.

And second, why are these payments so generous? Employees terminated without cause are entitled to severance and government managers should be treated no differently. Political staff, in particular, live with limited job security -if the election brings a new government, they are likely going to be looking for new jobs.

But severance is not supposed to be a windfall. It is intended to provide replacement income for a reasonable period, allowing the terminated employee to find comparable work. Typically, barring unusual circumstances, courts will award something like one month per year of service. Employers sometimes choose to continue monthly payments, rather than a lump sum, and halt the severance payments once the employee finds a new job.

Instead, the government chose to be generous with taxpayers' money. Finance Minister Kevin Falcon noted the maximum payments were equal to 18 months' pay, and said some of the people had been employees for years.

But in the private sector, the payments would almost certainly be much less.

The payments also highlight the gap between what the government considers fair for itself and for other British Columbians. The Employment Standards Act sets out severance payments for similar terminations. Under those rules, payments are capped at a maximum of two months, no matter how long an employee has served. Taylor's six months on the job would entitle him to severance pay equal to one week's salary.

People in the public sector have to be treated fairly, and pay and employment conditions should be competitive.

These payments go well beyond those standards."

Friday, April 29, 2011

The necessity of strategic voting

If we had a better electoral system, then strategic voting would be less important.
But we don't. So if you're a New Democrat or Liberal in Saanich-Gulf Islands, and you don't want to be represented by Green candidate Elizabeth May, then you need to vote for Conservative Gary Lunn.
If you don't want a Conservative majority, then you need to vote for May.
The race is close enough that neither of the two are assured of victory. Liberals and New Democrats with a strong preference have to rethink their choice.
The same is true in Esquimalt-Juan de Fuca, although the choices are different. A poll on the Project Democracy website puts Conservative Troy DeSouza at 40 per cent support, New Democrat Randall Garrison at 35 per cent, Liberal Lillian Szpak at 15 per cent and Green Shaunna Salsman at 10 per cent.
So Green and Liberal voters who would prefer a Conservative MP over a New Democrat, or favour a Harper majority, should likely vote Conservative. Greens and Liberals who are worried about the possibility of an NDP-led official opposition should vote for for DeSouza.
It's a inexact business - who knows how accurate the projections are. But it's what we've got.

There's useful information on strategic voting, particularly in B.C., here.

What's the point of a legislature that doesn't sit?

MLAs found their way back to the legislature this week. It might have been tricky for some. There have only been four sitting days in the past 10 months.
And since the 2009 election - two years, in which most working British Columbians have put in 472 days on the job - the legislature has been in session for 90 days.
MLAs are still working when the legislature isn't sitting. They deal with constituents' issues and go to meetings. The caucuses talk about strategy and issues.
But is that a $100,000 a year job?
MLAs could also be working in legislative committees, examining important issues.
Except the committees don't meet. There's a legislative committee on health, for example. But the MLAs haven't met to do any work since 2006. I can think of about 20 issues the committee could have explored.
It's the same for the education committee, which also has been inactive for five years.
It's the premier's decision to sideline the committees. But MLAs take the insult.
MLAs used to send more time in the legislature - about 76 days a year through the 1990s, compared with 45 days in the last two years.
More sitting days isn't automatically a good thing, of course. There's no sense having MLAs fill time or pass unnecessary laws.
But real, important work has been neglected.
We're a month into the fiscal year, and the government has already spent some $3 billion. But the budget hasn't even been reviewed by MLAs. What's the point of budget debate after the money is spent?
And Clark is shutting down the legislature June 2, after just 20 sitting days.
That means MLAs will have 17 days for estimates debates - the formal review of the budgets and programs of every ministry and Crown corporation.
The debates are central to any attempt at accountable government - the one chance MLAs on both sides have to question spending plans, raise concerns and suggest alternatives. They should be a time for careful, detailed review and answers from ministers.
Instead, much of the budget will be passed with little or no discussion, because there won't be time. MLAs will be reviewing and approving $2.5 billion in spending plans per day.
There is no reason for the rush. MLAs could stay on the job through June. Last year, the spring session lasted 46 days - twice as long.
So either Clark doesn't like the idea of oversight by the people's elected representatives or she wants the budget passed quickly to clear the way for an early election.
The government's failure to let the legislature do its work has been damaging in other ways.
Liberal house leader Rich Coleman says the government doesn't have much of a legislative agenda anyway.
But important legislation has been stalled as the legislature sat empty over the past 10 months.
Take one example.
The government set up a task force to look at the serious problems in the rules governing municipal elections. There are, practically, none. Anyone with enough money could buy control of a council. The public doesn't know who funds candidates. The door is open to corruption and campaign abuses.
The task force made useful recommendations. And Ben Stewart, the minister responsible at the time, said all 31 recommendations would be implemented in time for this fall's municipal elections.
But last week, the Liberal government reneged. It was too late to make the changes, said Ida Chong, the minister responsible. They would be introduced in 2014.
That's inexcusable. The reforms are needed, as Stewart acknowledged. And a competent government - and a legislature sitting for more than four days - could easily have passed the laws early enough to allow candidates and municipalities to prepare.
Instead, voters will have another round of flawed municipal elections.
The government just isn't letting MLAs do their jobs.
And accountability to elected representatives - central to democracy - is being lost.
Footnote: Governments also don't like question period - the daily grilling of cabinet ministers by the opposition. Based on the first two days of this session, expect a lot of NDP attention to the HST referendum and amount of money the government will spend trying to get a yes vote.

Thursday, April 28, 2011

The cost of Christy Clark's transition

Over at publiceyeonline.com, Sean Holman has the results of an FOI on severance payments to people fired by Christy Clark as part of the transition process. The tab - which is partial - is more than $2.4 million. Martyn Brown, Gordon Campbell's long-time deputy, left with $416,000. Lesley du Toit, the deputy minister in children and families, with $324,000.
OK, a new boss needs to make changes and getting rid of people without cause is expensive.
But $2.4 million is a lot of money for taxpayers to hand over to political appointees. It would be nice to be more confident that every option to keep them on the job in useful roles had been explored.
Holman's post is here.

Christy Clark's costly firings

Over at publiceyeonline.com, Sean Holman has the details on $2.4 million in severance paid to 13 people sacked by Clark without cause.
Read it here.

Tuesday, April 26, 2011

Fear-mongering on refugees

Are they scoundrels or less than competent? That seems the choice when it comes to the Harper Conservatives' proposed legislation on human smuggling.
And the law is just a symptom of our bizarre approach to broader immigration issues.
Bill C-49, introduced after a boatload of Tamils arrived off Vancouver Island, is grandly called the Preventing Human Smugglers from Abusing Canada's Immigration System Act. (Which sounds like a Maoist slogan.)
All the opposition parties rejected the legislation, which died with the last government. Stephen Harper has pledged to pass it if he gets a majority.
It's a bad law. False refugee claimants are already deported. And human trafficking is already a serious Criminal Code offence.
What this bill does - besides political posturing - is to introduce penalties for legitimate refugees who arrive in a group.
Unlike other refugees, they would be barred from applying for permanent residence or reuniting with their family for five years even if their claims are accepted. They could also be detained for a year without any right to challenge their detention in court.
So a refugee, fearing death or persecution in his homeland, who cobbles together money for false documents and a plane ticket and makes it into Canada is treated one way.
His neighbour, with less money, who chooses a dangerous three-month journey on a ship is treated much more harshly.
It makes no sense. Either people are legitimate refugees or they aren't.
The law was rejected by a majority of MPs. It's unlikely to survive a constitutional challenge. And it won't accomplish anything.
The Conservatives either haven't thought this through or are attempting to use a bad law to win votes.
The sleazy election flyer I got from attacking Michael Ignatieff for being "weak on border security, dangerously soft on crime" suggests a cynical political ploy at the expense of refugees.
That would continue a pattern.
When the Sun Sea arrived in Canadian waters last summer with 492 Tamil passengers, the Harper government did much fear-mongering about terrorists on the ship.
So far, two people have been found to have ties to the Tamil Tigers, a group that used terror tactics against the Sri Lankan government. They have been deported. Another 30 are still being investigated.
The other 460 were deemed no threat and their refugee applications are being assessed.
Still, the Conservatives are warning about the dire threat posed by migrants and citing the danger posed by the Tamil Tigers.
But, at the same time, the party has nominated Tamil Ragavan Paranchothy as a candidate in a Toronto suburb. (Toronto has a community of some 200,000 Tamils.) Last November, Paranchothy hosted a TV special marking an annual commemoration of dead Tamil Tiger fighters. He described them as "strong and faithful people who stood guard for the Tamils, fought for freedom and peace."
And The Globe and Mail reported this week on consultants working in China who make illegal immigration to Canada possible for anyone with money. A federal program welcomes immigrants with $1.6 million in assets, skills and a clean record. The consultants fake the skills and records. The immigrants get a clean way Canada.
The government has yet to talk about bills to curb those abuses.
And, as the Conservative government frets about a few hundred men, women and children risking their lives for better futures, it brings in more and more people on temporary work permits to provide cheap labour.
Canada had 281,000 immigrants last year. But there were 283,000 people here on temporary permits, at the request of employers. The number has increased 76 per cent increase since 2006.
Our government will accept temporary foreign workers to clean our hotel rooms, but won't welcome refugees looking for a safe future.
That seems a bizarre attitude for an underpopulated, demographically challenged nation of immigrants.
Just as it seems bizarre to introduce bad laws to score political points.
Footnote: Immigration is a touchy election issue for the Conservatives. All parties attempt to woo "ethnic" voters, who tend to favour measures that increases immigration, particularly family reunification programs. The Harper party also stress their social conservativism, which aligns with the traditional values of many of the communities.
But at the same time, the Conservative rhetoric on refugees attempts to appeal to other voters nervous about new Canadians.

Sunday, April 24, 2011

Everyone is a suspect in Campbell River

When Stephen Harper comes to town, even the Conservative riding association president is a terror suspect, it seems.

Thursday, April 21, 2011

Vancouver's killed casino might be symbol of change

Vancouver council's decision to reject a mega-casino - and the provincial government's muted reaction - might be symbols of change.
The casino project was backed by Gordon Campbell and promoted by Liberal insiders who stood to profit. It was cited as justification for the $563-million new roof for B.C. Place.
But many Vancouver residents were opposed to another 1,500 slots. The health authority thought it would increase addiction and care costs.
And a lot of business owners weren't keen. A B.C. Lotteries study projected that gamblers from the Lower Mainland would lose $580,000 a day in the casino. That's money that wouldn't be spent in bars or movie theatres (or, for some addicts, on food for the family).
Vancouver council voted unanimously against the casino.
If Campbell were still the boss, Vancouver's politicians would have paid a price for defying the government.
Instead, a quick provincial government news release quoted Jobs Minister Pat Bell saying the government "respects the province and Vancouver city council's decision."
And the release put some distance between the current government and Campbell.
"We have a renewed government under the leadership of Premier Christy Clark, and we are going to take a fresh look at options to develop this property," Bell said (he didn't really say it, of course - no one talks like that).
It's a big reversal. In March 2010, Campbell and cabinet ministers Rich Coleman and Kevin Krueger announced the project as a done deal. It would bring economic activity, Campbell said, standing beside the managers from Paragon, the casino's prospective operator.
But the deal quickly raised questions.
Start with the B.C. Place roof project launched in 2008.
PavCo, the Crown corporation that oversaw the $500-million cost overrun on the Vancouver convention centre, put out a request for proposals for a contractor to put a new roof on the stadium on Nov. 3, 2008.
It gave companies two weeks to bid on a project that would end up costing more than $500 million.
That was ludicrous. Companies couldn't possibly prepare competent, competitive bids.
On Nov. 26, nine days after bidding closed, PavCo signed an agreement with PCL Constructors Canada Inc. It took 17 working days to go from the first call for bids to a commitment.
PCL was also the convention centre builder for PavCo. Its regional manager was a big Liberal donor.
PavCo's plan to pay for the roof relied mainly on leasing public land around the stadium for the development.
That money could have been used for needed services or facilities around the province, or to pay down debt. But the government wanted that new stadium roof.
So on March 6, 2009, PavCo put a formal request for "expressions of interest" and gave potential developers just three weeks to respond.
Three weeks to come up with a plan for a big, prime piece of real estate in a desirable city.
PavCo picked qualified contenders and on April 20 called for proposals, giving companies five weeks to put in bids. Again, not much time for a considered approach, or to line up funding.
Only two bids were submitted.
And Paragon's casino plan won.
Paragon had tight ties to the Campbell government. Insider T. Richard Turner is a party donor - he gave the Liberals $50,000 last year - and was appointed chairman of the B.C. Lottery Corp. and ICBC by the Liberals.
Turner was well-enough connected that when the government started getting spooked about the huge cost of a new stadium roof, he called then-tourism minister Kevin Krueger and told him the roof was a "deal-breaker." Build it, or the casino deal wouldn't go ahead.
So the government went ahead with the roof, at a cost of $125 for every person in the province.
Paragon and B.C. Lotteries might be back with a revised plan.
But right now, Vancouver seems to have made a good choice.
And the new Liberal government seems to have accepted it.
Footnote: Who knows, the Clark government may even abandon the plan to work each year to increase both the number of people who gamble in the province and the amount each one loses. Clark did run for office in 2001 on a promise to halt gambling expansion, a promise that was quickly shredded as the Liberals went on a gambling spree.

Tuesday, April 19, 2011

Don't be quick to underestimate Dix

I've already blown it once when predicting how new NDP leader Adrian Dix would do as a politician.
Back in December 2004, when Dix won an NDP nomination, I wrote that the Liberals should be pleased.
"For Gordon Campbell, it's like Christmas came three weeks early," I wrote. "Figure the Dix nomination is good for a few Liberal wins in close seats, as well as big laugh lines in campaign speeches."
Dix had, after all, been Glen Clark's closest political adviser as the NDP government plummeted in public support,
And after police raided Clark's home, Dix had produced a memo he had written that he said showed Clark had nothing to do with a friend's casino licence application.
The memo was dated almost a year earlier. But Dix had actually written the memo months later, got the office date stamp from a secretary's desk, and rolled the date back. Dix admitted wrongdoing and resigned.
I predicted Dix would be an easy target for Campbell and the Liberals.
And I was dead wrong. Carole James made Dix critic for the children and families ministry. He was by far the most effective New Democrat (helped by Liberal bungling).
Dix had command of the issues, raised them clearly and revealed government incompetence and indifference. He made life heck for Liberal cabinet ministers.
And, most important, actually made things better for kids and families who depended on the ministry.
The lesson is don't underestimate Dix.
The conventional wisdom, following his third-ballot victory, is that Dix isn't a great choice as NDP leader. Too left, too serious, too much baggage. Mike Farnworth or John Horgan would appeal to more voters, the theory goes.
When an election is called, likable Christy Clark will move move the Liberals to the centre, serious Dix will take the NDP to the left. The Liberals will win re-election, because most voters are moderate, the analysis goes.
Maybe.
But you could make an alternate argument that if Farnworth, for example, and Clark were both claiming the centre, voters might see no reason to swap a known quantity for a new governing party with a similar approach.
And, as I learned, it's a mistake to underestimate how much a very smart, hardworking and, perhaps, excessively focused person can accomplish.
Dix has continued to be an effective critic and strong constituency MLA. He championed the fight against school closures in his riding and helped parents mount an effective case.
His challenge - aside from the baggage - will be convincing voters his policies won't hurt the economy.
Still, Liberals are happy he won the leadership. The association with the late-1990s NDP government will hurt Dix, they think.
And Clark will portray him - accurately - as a supporter of having big business pay more in taxes. That will cost jobs and growth, she'll say.
Dix has a chance to present himself as the smart, slightly nerdy guy who will make government think first of how it can make life better for people who live here. Who will spend less time listening to corporations, and more to people. And who can pull the fractious NDP together.
Clark has her own baggage as deputy premier in the early years of the Campbell government, and a less than dazzling track record as a cabinet minister.
And she risks casting herself as the defender of the status quo.
I'm not sure how many people are fond of the status quo in B.C.
I'm also not sure people are ready to take a chance with Dix.
I am sure that my 2004 predictions that Dix would be a liability were wildly wrong.
Most Liberals seem genuinely pleased the New Democrats chose Dix to lead them into an election, likely this fall.
It's far from certain they will be feeling the same way as a September election campaign unfolds.
Footnote: B.C. Conservative leader-in-waiting John Cummins was quick to congratulate Dix. The Conservative impact is still the biggest unknown in the election, with the potential to cost the Liberals votes and seats.
Dix might help Clark in her effort to warn against splitting the centre-right vote.