Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Colombie-Britannique 32e 1e Discours du budget (Mise à jour) 8 juin 1979 Evan Wolfe Minister of Finance British Columbia Social Credit Party Mr. Speaker, the "sunshine budget" is back. It is my pleasure to introduce to this first session of the thirty-second Legislature the budget proposals that were delivered to this House on April 2, 1979, to the last session of the thirty-first Legislative Assembly. Associated with this budget, of course, are the estimates of revenue and expenditure which were presented at that same time. Soon after the budget proposals for 1979-80 were delivered to this assembly a provincial election was called. During that election campaign the government declared that the budget of April 2 would be returned to the first sitting of the subsequent legislative assembly for debate and implementation. We are today following through on our budget proposals to the people of British Columbia, and we propose now to implement the budget proposals that were outlined to the previous House to fund the province's social programs, create new jobs and stimulate investment. This budget was tailored earlier this year to the specific economic and fiscal objectives of government and to the needs of the people of British Columbia. Our objectives have not changed in the intervening two months. This budget is designed to fund and enrich social programs for everyone in need, to develop activity and job opportunities in this province, to increase the purchasing power of individuals and business by reducing taxation, and to encourage individual and corporate investment. Mr. Speaker, I do not propose to read the April 2 budget into the record of this House but I might. Many members are familiar with it because it has enjoyed wide publicity. I would like just to summarize the main points in the speech to refresh the memories of those members who have been returned to office, and to acquaint those new members of this assembly with the broad outlines of this government's proposals. Some of the proposals are, of course, already in effect. First of all, we are providing more for social programs: Health care will receive $1.2 billion, 27 percent of the total projected budget — one of the highest percentages of health spending by any provincial government. Education receives $1.1 billion, nearly a quarter of the total budget. The third-largest share of the budget — $648 million goes to Human Resources. The income- assistance budget is increased by $72.7 million. A new dental care program for British Columbians not presently covered under an existing dental plan will be developed by the Ministry of Health. Municipalities will receive $141.7 million from this budget — a sizeable contribution to assist with local development. A proposal has been made to provide developers or building owners who adapt buildings to the needs of the handicapped with an accelerated write-off or income tax credit. In this budget we are also encouraging new investment by individuals and corporations to create more jobs. The exemption under the Corporation Capital Tax Act is raised to $1 million to take the tax off 3,000 firms. Last year we removed this tax from 13,000 other firms, and this will make a total of 16,000 freed from this burden. A new type of investment company — we call it the small business venture capital corporation — will be encouraged to finance high-risk enterprises. A special tax deduction will be allowed British Columbia taxpayers who place their funds in these venture groups. And a special dividend tax credit of 5 percent is proposed for all British Columbia residents receiving dividends from British Columbia public corporations. Mr. Speaker, the budget which I am quickly summarizing also detailed this government's plans to distribute shares in the British Columbia Resources Investment Corporation to all citizens of this province. As of June 6, about seven million shares had been applied for by British Columbians, on the basis of five free shares to each citizen. As you know, citizens of this province also have the right to purchase additional shares up to June 15. As of June 6, sales were about $37 million. This response, Mr. Speaker, indicates to this government that the people of this province have a strong commitment to individual ownership. To continue, Mr. Speaker, with this summary: in this budget we are cutting taxes. On April 2, at midnight, the social services tax was reduced by one percentage point to 4 percent. This produced the lowest sales tax in this province in 25 years, and the lowest sales tax of any province in Canada that imposes the tax. At the same time we exempted vitamins and dietary supplements, diabetic and ostomy supplies from sales tax. We introduced a policy that will not require a low-income person to pay more British Columbia income tax than federal tax. This will save 65,000 taxpayers an average of $89 this year. We have increased the renters' tax credit by $50 to a total of $150, beginning this year. We have initiated this year a permanent increase of $100 in the annual homeowners' grant for all homeowners in the province. Mr. Speaker, this raises the basic grant to $380 and the grant for senior citizens and persons receiving the handicapped or war veterans' allowance to $580. Homeowners who are now receiving property tax bills all over this province should see a sizeable reduction in the taxes they must pay as a result of this measure. Personal income taxes will be reduced significantly on July 1 this year. This will involve a reduction in the personal rate to 44 percent from 46 percent — to the second-lowest personal income tax rate in Canada. This change will mean tax savings of up to $65 per year for a family of four with income of $23,000. Assessments on farm and agricultural reserve land will be reduced 50 percent on December 31 to reduce the burden of school taxes. The parimutual betting tax has been reduced one percentage point. A provincial political contributions income tax credit has been introduced. And all operating costs of regional colleges are to be taken off the shoulders of local taxpayers. These tax reductions are widespread and significant. We believe they will do much to lighten the burden on all taxpayers, and stimulate the economy by freeing millions of additional dollars for consumer spending. Also in this budget we are using revenue surplus to create more jobs. In addition to the regular budget estimates, I am reintroducing four special appropriation bills to use surplus funds from the last two years to fund a number of public projects. These projects will create an estimated 8,000 new jobs in 1979, and more in the future, and will provide developments of lasting value to the people of this province. The $140.5 million surplus from the 1977-78 fiscal year will pay for the $100 increase in the homeowner grant. It will also provide for the reconstruction of the Fort Nelson extension of the British Columbia Railway, for accelerated programs and highway construction, forest management, youth employment experience programs, construction of recreational facilities, and a payment due on our provincial debt. The surplus from the 1978-79 fiscal year will provide $80 million, as the budget indicates, for these projects: $10 million for the proposed Vancouver trade and convention centre; $2.5 million for the proposed Victoria convention centre; $25 million for a sports centre or stadium in the lower mainland; $5 million for a low-interest program to help small- and medium-sized business in metropolitan areas; $7.5 million for purchase of additional shares in the British Columbia Development Corporation; $5 million for industrial research; $25 million to stabilize health and hospital operating costs. This has been a quick review of the budget to refresh the memories of the hon. members. The budget, as I said on April 2, provides wide-ranging tax cuts that are designed to stimulate the provincial economy and help build for prosperity in our province in the 1980s. I urge hon. members to join with us in implementing these programs so that the citizens we all represent may enjoy the benefits that will flow from these changes as quickly as possible. I move that Mr. Speaker do now leave the chair for the House to go into Committee of Supply.