It was interesting, although a little disappointing, to hear the comments of some callers to talk shows after Carole James called on the government to help BC's film industry. "What," callers cried, "did the NDP suddenly discover the benefit of tax cuts?" A short history lesson is appropriate for those with selective memories.

Under the leadership of Dan Miller, the NDP government introduced incentives to expand oil and gas exploration. It put $20 million a year, on top of the highways budget, into improving road access for exploration. It lowered the sales tax on machinery and equipment, and it phased out the compressor fuel tax where gas companies use natural gas to drive compressors to pump gas through the pipelines. Many non-partisan observers credit the incentives first offered by the NDP as reasons why exploration activity boomed; increased revenue to government soon followed with the Campbell government continuing to enjoy the proceeds of those initiatives.

The NDP government also used targeted tax cuts and incentives to stimulate the film industry. The Film Incentive BC (FIBC) began in 1998 as a source of financing for the BC owned and controlled film and television industry. That refundable tax credit, for the period April 1, 2000 - March 31, supported 80 film and television projects representing $377 million in BC owned and controlled production. In 1998 the Income Tax Act was amended to provide for the Production Services Tax Credit which goes beyond FIBC; it is a refundable tax credit available to Canadian and international production companies who shoot in BC.

There is a major difference between across the board tax cuts amounting to $2.2 billion per year and targeted tax cuts. Former bank economist David Bond may have lost his job in his attempt to make the Campbell government aware of the difference. Targeted cuts are designed to encourage industrial development; growth in BC's film and oil and gas industries show that they worked. Campbell's cuts redistributed income while failing to provide incentives for economic growth. They were ultimately offset by higher regressive fees and taxes which shifted the tax burden to those less able to pay. Job growth has been dominated in recent years by the construction industry which is driven by low interest rates, not high income tax cuts.

The benefit of targeted tax cuts is nothing new to the NDP which is why Carole James was comfortable in saying that BC should provide: