October
12, 2004
Collins
as Spinner
Gary
Collins is not just the Minister of Finance and government
House Leader; he is also co-chair of the Campbell government's
re-election committee. That makes his pronouncements on
a variety of topics particularly interesting as they reflect
the spin that can be expected throughout the very long pre-election
period.
On Wednesday,
October 6th, Collins appeared on Voice of BC with Vaughn
Palmer. Collins' response to criticism over his government's
handling of the Ministry of Children and Family Development,
welfare, Pharmacare and the tax shift was less than forthright.
His answers were similar to the misleading spin in the government
ads, but then again, Collins is now responsible for those
ads as the Public Affairs Bureau reports to him.
When
describing the "Give It Back" campaign, Palmer
said "They want you to put back the money you took
out of the social programs in order to balance your budget."
Collins responded by saying "
we've been able
to reduce the number of children in care of government by
keeping them in their communities. That number has come
down dramatically. That's what's driving the biggest cost
reductions in the Ministry of Children and Families. We
went out to do that. We're following the best practices,
and I think you're seeing, in the last three years, that
those children are receiving better care, and you're certainly
not seeing the kinds of horror stories you did under the
previous government."
There
are three major errors in Collins' response. He set a budget
that called for 23% cuts to the Ministry of Children and
Family Development on Black Thursday, January 17, 2002,
long before anyone knew how many children would be in care.
Only after many deadlines were missed and the Ministry was
in chaos were the cuts reduced to 11%. Fewer children were
taken into care in response to the budget targets. It is
good practice to keep children in need of protection in
their families if possible, and in their extended families
as a next best alternative, but that costs more by way of
monitoring by child protection workers and the provision
of support services. Social workers throughout the province
confidentially talk about the Campbell government's failure
to provide necessary preventative services. You don't hear
about horror stories because they fired the Children's Commission;
they fired the Advocate for Children and Youth; they made
it illegal for foster parents or social workers to talk
to the media. They replaced the entire whistle blowing system
with a part time "Child and Youth Officer" who
reports to the Attorney General. In her pathetic annual
report, she had nothing to say about outcomes for children
in need of protection; she did comment that there are never
enough resources, as if to excuse the Campbell cuts.
The
Give It Back campaign was initiated by the Community Living
Association in response to $50 million in cuts for the developmentally
disabled. Even though legislation on community living was
debated in the legislature last week, Collins had nothing
to say about those cuts.
Collins
commented on welfare cuts and the reduction of the rolls
by 50,000 cases, 99,000 people, when he said "We do
exit interviews. The vast majority of those people have
found employment. On average, they're earning three times
what they were before." He neglected to say that the
exit surveys were so seriously flawed that the Ministry
of Human Resources quietly discontinued them with no media
advisory or comment.
Despite
all of the claims in the government ads, Statistics Canada's
Labour Force Survey shows that, as of September 2004, employment
in BC has grown by 107,500 since May 2001. Almost all of
the new jobs would have had to go to people leaving welfare
for government's claim to be true. The truth is that the
government doesn't know, and apparently doesn't care, what
happened to the people denied assistance.
In response
to a caller whose diabetic mother has been hurt by cuts
to Pharmacare, Collins demonstrated further lack of caring
or lack of knowledge about who has paid the price for his
balanced budget. He claimed that "Seniors in British
Columbia saw no change to their Pharmacare plan." He
went on to say that "If you were 63 or older at the
time those changes were made a couple of years ago, you
were - no pun intended - grandfathered into the old Pharmacare
system that was there for seniors, so they would have seen
no change in that regard." Collins' claim is simply
not true. The changes to Pharmacare took effect May 1, 2003.
Before that seniors paid the dispensing fee to a maximum
of $275 per year. On May 1st the annual maximum was changed
to depend on family income regardless of a person's age.
The only difference that depends on age is that people born
before 1939 receive 75% coverage rather than 70% coverage
once the income determined deductible is satisfied. A senior
with a $40,000 family income now has a deductible of $400
and must pay $800 before full coverage kicks in. The difference
between $275 and $800 may not be a big thing for Collins,
but it is enough to keep some seniors from filling their
prescriptions.
The
cost shift in the Pharmacare program is typical of many
cost shifts imposed by the Campbell government. The budgets
introduced by Collins gave the average person making over
$250,000 per year a tax cut of more than $23,000; it gave
the average person making a tenth of that, $25,000 per year,
a tax cut of $316 dollars. Palmer played a clip from Carole
James in which she said "They've shifted who pays in
this province." Collins responded saying "She's
wrong." He went on to say that when Pharmacare was
cut, some low income people got higher benefits. The same
applies to the 50% increase in MSP premiums and the hike
in the sales tax. He claimed that what was a 25% tax cut
for most people was a whopping 28% for those making less
than $30,000. His misleading response deflected attention
from the tax shift, which was the focus of the criticism.
After
making $1.5 billion in income tax cuts and $790 million
in corporate tax cuts, Collins increased various taxes and
fees that don't depend on income by $1.094 billion (gas
tax $211 million, tobacco and booze $275 million, MSP $358
million, sales tax $250 million, plus driver's license fees,
parking in parks, and dozens of other fee increases). It
is true that on some items special provisions were made
for the poorest British Columbians, but a working family
making $40,000 per year has been hurt by the Campbell government.
Those with incomes in the six figures are money ahead; others
have paid the bill.
A steady
theme throughout Collins' interview was his claim, repeated
six times, that BC has a "broad -based economic recovery".
That is not true. BC has a construction boom due to low
interest rates combined with some modest growth in tourism.
When August 2004 is compared to August 2003, employment
is down by 9,800 in education, down by 17,500 in trade,
down by 6,000 in the resource industries and down by 5,400
in manufacturing. Construction accounts for 75% of the job
growth. Any recovery from the 2001 recession may be over
as BC's job growth to September 2004 is only 0.4%, less
than half the average for Canada. Collins supplemented his
erroneous claims about BC's current economy with nonsense
about the 90s. Collins should know that BC enjoyed employment
growth from 1991 to 1997 that averaged 4.0% per year, far
above anything in the New Era. Collins gets excited over
forecasts for 3.5% economic growth, which may or may not
prove accurate. He should know that in 2000, the last full
year of the NDP government, BC had 4.8% real economic growth
(8.4% when inflation is added). Real economic growth in
BC exceeded 3.0% in 1993, 1997, 1999 and 2000.
Collins
should not be allowed to get away with falsehoods about
the economy any more than he should be allowed to get away
with phony claims about his cuts to social programs, but
some interviewers let him coast by without being challenged.
What people have personally experienced is far more important
than any amount of nonsense Collins or any of his colleagues
can spew during a friendly media appearance.