February 14, 2003

Getting gassed!

Why did the BC Liberal Party spend big bucks to buy a half hour of air time on Global TV? Are their internal polls showing that they are hurting as a result of recent scandals? Are they trying to prop up MLAs who are under threat of recall? Do they face a back bench revolt from rural MLAs who have seen their economies devastated as a result of government cuts to services in small communities?

Whatever the reason for the infomercial, it appears to have been a bad investment. Campbell's party might have received more credit by donating the cost to the food bank. It is useful to put Wednesday night's announcements into perspective. On his first day in office, Gordon Campbell made tax cuts that gave BC's top 8,000 income earners, those making over $250,000 per year, a combined benefit of $200 million per year forever. By comparison, the "new" funds for education over the next three years are half as much as the tax cut that those 8,000 people receive in one year. The "forest transformation fund" is half as much as those 8,000 people receive over three years. The increase in the gas tax will not quite raise enough money to offset the annual tax cut for those 8,000 people. Every time you fill up, think of it as making a small donation to help those poor folks who receive $200 million a year in benefits from the Campbell government.

Of course, Premier Campbell claims that his gas tax will go towards new highway construction rather than be used to offset his top loaded tax cuts. Don't be fooled. Dollars that go into the provincial treasury don't have little tags that say where they must go. BC has the biggest deficit in its history. In order to start massive highway construction it is necessary to do a lot of preparation, including engineering, surveys, and bids. Money will start flowing into the provincial treasury from the gas tax on March 1, 2003, but it will take many months, maybe a couple of years, before substantial highway construction can get underway. A tax grab is a tax grab no matter what project the government holds out as justification. BC's top 8,000 income earners each got an average tax cut of $26,000 per year but they will pay the same amount at the gas pump as someone who earns the minimum wage.

Rural BC got another kick in the teeth when Campbell announced that the BC Rail roadbed and tracks will remain in public hands. In other words, they are going to sell the rolling stock and operating company. Isn't it nice that the tracks won't be sold as scrap steel? In 1996 Gordon Campbell said he would sell BC Rail. That contributed to his election loss. In 2001 Gordon Campbell said he wouldn't sell BC Rail. He would have won no matter what he said. In 2003 Gordon Campbell found a way to go back on his promise about BC Rail, as he did on dozens of other promises.