‘Some fee increases offset by low income tax’

MLA Donna Barnett backs boring, balanced B.C. budget

Cariboo-Chilcotin MLA Donna Barnett says the most crucial component in the provincial budget released last week is that it’s balanced.

“It’s boring, it’s dull, but it’s balanced. They haven’t cut the health care budget, which is one of the most important budgets there is.”

She adds Community, Sport and Cultural Development Minister Bill Bennett has already achieved his goal of shaving $50 million off of the budget in the core review of government he began last summer.

However, the NDP and some industry groups are pointing to fee increases, including a four per cent hike in Medical Services Plan (MSP) premiums next year and escalating rates for BC Hydro.

“Unfortunately, there are some user fees that have to be increased,” Barnett explains.

There are more than 800,000 citizens who pay little or no MSP premiums, she notes, and for those who do, the four per cent increase amounts to about $5 a month.

“With the wonderful health-care system we have, I do not feel bad that we have to increase the health care premiums … when you need it, it’s there, and it’s a blessing it’s there.”

The budget includes $2.6 billion on health sector infrastructure and an additional $243 million over three years for Community Living BC, the MLA adds.

“The government has committed to supporting families dealing with developmental disabilities. That is a very important component.”

She explains there are adults with these challenges who are no longer funded under a youth program, so that gap needed to be filled.

Meanwhile, NDP finance critic Mike Farnworth says the government is balancing the budget by using fee increases and appropriating another $480 million from the debt-ridden BC Hydro in 2014.

However, Barnett argues the provincial government has taken money from the Crown corporation every year for as long as she can remember.

“I don’t think the Opposition has anything to complain about…. I believe they utilized the same process. The money has to come from somewhere.”

The Canadian Office and Professional Employees Union, Local 378 (COPE 378) represents employees at BC Hydro and ICBC and it takes umbrage how much money the B.C. Liberal government is scooping out of the two Crown corporations.

COPE 378 President David Black says the “responsible thing to do” would be to keep the money in BC Hydro, instead of using it to balance the budget while residents and schools face soaring rates.

ICBC will be diverting $200 million from its coffers to government’s general revenue, Black adds.

Barnett counters that British Columbia has the lowest income tax rates in Canada, which offsets some fee increases.

A family of four earning $70,000 a year pays $1,990 less income tax now than in 2001, she says, adding that scale continues from low-income individuals and seniors to high-income families.

Other budget aspects, such as up to $7,500 in property purchase tax savings for first-time home buyers, also helps, Barnett says.

The Chartered Professional Accountants have endorsed the balanced budget and the province continues to hold a triple-A credit rating, she adds.

Barnett says it’s “tough to say no” when people come to her for help in an area that lacks funding.

“But, it’s like the Community Living BC [funding], you have to put your money where it is helping those who can’t help themselves.”

100 Mile House Free Press