Do you know how fast the province’s debt is growing?
Canadian Taxpayers Federation (CTF) British Columbia director Jordan Bateman says in his meteoric, 14-day B.C. Debt Clock tour launched in late June, people frequently mistook the dollar figure it displays as millions – and were shocked to discover it was billions.
“This is why we have the debt-per-person number on here, too. [One dad] said: ‘that’s $12,000 for every man, woman and child? I have five, so that’s $60,000!’ So, good reactions, and lots of disbelief.”
During his July 9 visit to Tim Hortons in 100 Mile House, he estimates the provincial debt at more than $57 billion – and growing by $214 every second.
Bateman notes debt reduction was paramount in the B.C. Liberal’s election campaign, yet it continues to grow substantially every day.
“If this clock was here in 2016, it would say $70 billion.”
He says some folks have asked him what that money is being spent on before conceding their concern.
“Within the borrowing, there are actually worthwhile projects – hospitals, schools, roads. But, I think most people expect government to finally get ahead of these projects; I believe this bothers people.”
Concerns have also been expressed about the degree of BC Hydro debt, so Bateman explains many conversations revolved around good debt versus bad debt.
“Right now, debt servicing in B.C. is about $2.5 billion a year. If it was a ministry of government, it would be the third largest – the Ministry of Debt.”
If interest rates go up even one point, taxpayers will feel the impact of another $100 million a year, Bateman says, adding that’s also “a lot of money.”
“When the [former premier Gordon] Campbell government was in and amassed a surplus in the mid-2000s, it should have paid off the financial debt. Instead, they put it toward other programs, Olympic spending – things that are nice to have, but obviously not necessary.”
Unfortunately, the “bad times came back,” he adds, and the debt has more than doubled in 10 years.
Bateman notes the CTF looks for tangible benefits from government spending, so he wonders why B.C. tourism is in a decline three years after the 2010 Olympic Games.
“Like the Juno Awards and the Times of India Film Awards … these are nice, big, glitzy events that government loves to put money into, but we never see any cash flow result.”
