Strategic Thoughts

bannerspacerAbout Me | Mail Me | My Stuffbannerspacer2

February 12, 2004

CCPA helps Campbell with Unrealistic Proposals

On Thursday, during the last question period for the first week of the new legislative sitting, Speaker Claude Richmond once again encouraged disrespect for BC's legislature by allowing government backbenchers to run out the clock asking questions about a paper published by the Canadian Centre for Policy Alternatives (CCPA). When Opposition House Leader Joy MacPhail was finally recognized, Richmond announced that the time for question period had expired.

The CCPA did not help the New Democrats with its paper titled "BC Solutions Budget 2004: Getting Ready for 2010". The 29 page document is as valid as any other external comment on the upcoming BC budget, but it contains unrealistic and politically unacceptable taxation proposals. It presumes that it would be possible to totally eliminate MSP premiums in one sweep of the legislative pen and replace them with an increase in personal income, corporation and gas taxes. In many cases that would amount to a direct grant to major corporations and public agencies which currently are bound by collective agreements to pay the premiums for their employees. Thanks to the 50% increase made by the Campbell government to the regressive MSP premium, it raises $1.4 billion per year; that is 30% as much as is raised by all personal income taxes. Not only would eliminating the premium in one stroke benefit some employers rather than employees, but it would call for extreme shifts in other taxes so as to compensate. That is why the former government was gradually reducing the role of the premium over the course of two terms in office. That gradual approach was wiped out by the Campbell government with one massive 50% increase, but that cannot be undone with an equally abrupt shock to the economy.

The CCPA's paper also called for increasing corporate taxes and for a 5 cent per litre increase in the gas tax. Joe Clark can tell you what happens to the political career of those who hike up the gas tax. Collins already increased the BC tax on gas to 14.5 cents per litre, making it second highest next to Quebec. No politician would campaign on the basis on raising it another 30%.

The CCPA also took it upon themselves to say how spending increases should be allocated amongst various priorities. They remained silent on the delicate issue of public sector compensation and bargaining.

The mischievous government MLAs seized upon the CCPA paper and attempted to characterize it as representing the views of New Democratic Leader Carole James; James has conducted numerous interviews saying that she would not make sudden destabilizing changes, and that commitments on spending or taxation would not be made until the books were carefully examined. Backbencher Jeff Bray, who will be running against James in the next election, followed his colleague Randy Hawes in asking Collins to comment on the CCPA paper. It is a real stretch of the rules to allow that question, but James should take it as a compliment that the government is misrepresenting her. As the saying goes, "they don't shoot at dead ducks." The previous day Bray spent much of his speech, in reply to the Speech from the Throne, in a partisan attack on James. He obviously knows that he has been thrown overboard and is desperately grasping at anything he can grab. The government that wouldn't give him a cabinet post is more than willing to let him abuse legislative question period.

The CCPA would be wise to offer advice that is workable and has public support. Their ill conceived proposals played into the hands of a government that is looking for anything to distract attention from scandals. New Democrat Leader Carole James will not take ownership of unrealistic and unacceptable proposals; she will responsibly respond to Collins budget on February 17th.

 

About Me | Mail Me | Navigation | Top
© 2004 David D. Schreck. All Rights Reserved.