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.
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