B.C. NDP leader John Horgan releases his election platform, Vancouver, Oct. 6, 2020, featuring COVID-19 relief payments promised for most households. (B.C. NDP photo)

B.C. NDP leader John Horgan releases his election platform, Vancouver, Oct. 6, 2020, featuring COVID-19 relief payments promised for most households. (B.C. NDP photo)

Next $1.5 billion in B.C. COVID-19 cash ‘prudent,’ Horgan says

New round of payments for household incomes up to $175,000

With Ottawa gearing up for more pandemic-driven spending and B.C. about to distribute a second round of payments to households with income up to $175,000, soaring debt at all levels of government has business people concerned.

“We’re going to indenture generations here if we’re not careful,” said Greg D’Avignon, CEO of the Business Council of B.C.

BCBC released an Ipsos Public Affairs survey this week showing 79 per cent of respondents concerned that B.C. Premier John Horgan’s campaign promises are going to lead to higher taxes and debt.

Speaking after his first post-election cabinet meeting Dec. 2, Horgan defended his key election promise to send out $1,000 to households and $500 to individuals. The B.C. legislature is being called into a brief session next week to authorize the additional borrowing, with the current-year deficit already near $13 billion and next year’s budget still to come.

“It’s prudent to do it because it’s putting dollars into people’s pockets so they can continue to get through the most challenging time British Columbians have ever known,” Horgan said. “This is going to be means tested, it’s going to be low-income families and individuals who will get access to resources that they wouldn’t have had otherwise.”

The “means test” was partially revealed in the NDP campaign platform, after Horgan added the payments to counter a B.C. Liberal promise to suspend sales tax next year. The one-time direct payment goes to families with annual income under $125,000, “with a sliding scale up to $175,000.” For single individuals, the “sliding scale” reduces $500 payments from $62,000 to $87,000 income.

Legislation to be tabled next week will show the actual reductions for higher income earners, and whether any test of lost income is to be used.

RELATED: Federal COVID-19 payments swell bank accounts: CIBC

RELATED: Horgan launches platform with $1,000 COVID payments

RELATED: Another $1 billion borrowed for municipalities, transit

D’Avignon notes that B.C. residents have already collected $9 billion in Canada Emergency Relief Benefit (CERB) payments, the second highest of any province. Federal spending has been highest among developed countries, pushing average income up 11 per cent even as the economy contracted.

Meanwhile, B.C.’s economic growth before the pandemic was driven almost entirely by energy projects.

“If not for LNG Canada, Site C, Trans Mountain pipeline and some office towers in Vancouver and Victoria, we would have been essentially flat,” he said.

Ravi Kahlon, B.C.’s new minister of jobs and economic recovery, pointed to latest Statistics Canada labour force survey as a sign that B.C. is coming out of the COVID-19 recession.

“Since the pandemic’s most severe impact on the economy in April, B.C. has had substantial job growth for seven consecutive months, bringing our total employment to 98.5 per cent of pre-pandemic levels,” Kahlon said Friday. “This is the highest job recovery rate of any of Canada’s four largest provinces.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsCoronavirus

Just Posted

St. Joseph's Mission site is located about six kilometres from Williams Lake First Nation. (Photo submitted)
Williams Lake First Nation planning ground analysis of land near former residential school

St. Joseph’s Mission Indian Residential School operated from 1886 to 1981

Free boxes of fresh produce are currently being provided in Quesnel by the Canadian Mental Health Association of Northern BC thanks to a donation from West Fraser Mills. (File photo)
Fresh produce available for those in need in Quesnel

Donation allows Canadian Mental Health Association to provide free fruits and veggies

Elizabeth Pete is a survivor of St. Joseph’s Mission in Williams Lake. (Patrick Davies photo - 100 Mile Free Press)
WATCH: Kamloops bound convoy greeted by Canim Lake Band along Highway 97

Well over two dozen members of the Tsq’escenemc people (Canim Lake Band) showed up

Five rehabilitated grizzly bears were released this month into the Bella Coola area. The Northern Lights Wildlife Society will also be delivering 36 black bears to areas across the province where they were previously found. “They’re ready to go and they’re already trying to get out,” says Angelika Langen. “We feel good when we can make that possible and they don’t have to stay behind fences for the rest of their lives.” (Northern Lights Wildlife Society Facebook photo)
t
How to tell if a call from ‘CRA’ is legitimate or a scam

Expert says it’s important to verify you really are dealing with the CRA before you give out any info

Unofficial holidays: Here’s what people are celebrating for the week of June 13 to 19

Flag Day, Garbage Man Day, International Panic Day all coming up this week

British Columbia-Yukon Community News Association’s 2021 Ma Murray Awards were handed out during a virtual ceremony on Friday, June 10. (Screen grab)
Black Press Media winners take gold at B.C. and Yukon journalism awards

Publications received nods in dozens of categories

Prime Minister Justin Trudeau greets campers while visiting McDougall, Ont. on Thursday, July 19, 2018. THE CANADIAN PRESS/Frank Gunn
71% of B.C. men say they’d prefer to go camping with Trudeau: survey

Most British Columbians with plans to go camping outdoors say they’d prefer to go with Trudeau or Shania Twain

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps off Vancouver Island

Department of Fisheries and Oceans responders spend hours untangling whale

Chilliwack cocaine trafficker Clayton Eheler seen with a tiger somewhere in Asia in 2014. Eheler was sentenced to nine years jail in 2018, but was released on bail in October 2020 pending his appeal of conviction.(Facebook)
Director of civil forfeiture seeks $140,000 from Fraser Valley drug dealer’s father-in-law

Clayton Eheler’s father-in-law Ray Morrissey caught with money in Fort St. John by B.C.’s gang unit

A Comox Valley shellfish operator pleaded guilty and was fined $10,000 in provincial court in Courtenay earlier this year. Record file photo
B.C. clam harvester fined $10,000 for Fisheries Act violations

Charges against three others were stayed in Courtenay Provincial Court

Frank Phillips receives a visit from his wife Rena at Nanaimo Seniors Village on their 61st wedding anniversary, March 31, 2020. Social visits have been allowed since COVID-19 vaccination has been offered in all care homes. (Nanaimo News Bulletin)
B.C. prepares mandatory vaccination for senior care homes

180 more cases of COVID-19 in B.C. Friday, one more death

Most Read