November 23, 2004
Kamloops Daily News



B.C. Liberal Finance Minister Gary Collins gives credit for
his government's budget surplus and reduction in sales tax
to hard-working citizens of B.C.  "The thanks goes to the
people of British Columbia who have worked hard over the
last three years to see this result." 

Collins is alluding to the no-pain/no-gain theory of 
government.  We all have to suffer, so the theory goes, to
get spending under control.  When the sun rises on a
reborn B.C., we all will prosper.

It's a bit of fiction on Colin's part.  Not all British
Columbians suffered and not all will be better off.  B.C.'s
wealthy have prospered because of income tax cuts.  Those
making over $250,000 a year received a cut of $23,000.  
Those making less than $30,000, -- this includes one-half
of all British Columbians -- got $197. 

Big deal.  As fast as the government put $197 in one pocket,
they were taking money out of the other.  In fact, the
average wage earner lost money in the transaction through
higher government fees -- MSP premiums, tuition fees, eye
exams, park fees, and reduced child care subsidies.

The gap between wealthy and poorer communities of B.C.
widened as the Liberals closed small government offices,
schools, health services, and courts.  They did this at a
same time when jobs in the resource sector were shrinking.

Even the most conventional conservative thinking states that
you don't cut government spending when the economy is
contracting.  The effect on thousands of unemployed workers
is inhumane.

But the Liberals were ideologically driven to act on their
agenda of job cuts, tax cuts and privatization --
regardless of the economic realities.

While small towns were loosing jobs, rich parts of B.C. like
West Vancouver were prospering from government tax cuts. 
The result was a transfer of wealth from the interior of
B.C. to rich communities.

Not only rural B.C. suffered.  On January 17, 2001, called
"Black Thursday," the Liberals started a three-year program
of job cuts cutting about 12,000 jobs at a saving of $3
billion.

When the Liberals were first elected in May, 2001,
unemployment in B.C. was lower than the rest of Canada.  
Under the Liberals, unemployment rose to among the worst in
Canada.  Only  recently has it come down to the national
average.

In 2000, average weekly earnings were 14% higher in B.C.
than nationally according to Statistics Canada.  Now they
are 1% lower.

B.C.'s economy was in good shape when the Liberals took
over, despite their rhetorical fiction of  a "structural
deficit."  We had the second lowest debt in Canada and debt
servicing was only 6 per cent.

The Liberals seem confused about what the role of government
is.  This confusion is reflected in a recent remark by
Claude Richmond, MLA for Kamloops, "Governments don't create
jobs."  

His comment will come as a surprise to the 400,000 British
Columbians who are employed by three levels of government as
police, firefighters, teachers, doctors, nurses, health care
workers, military workers, city workers, judges, to name a
few.  And yes, Richmond seems to forget that he is employed
by the government -- a job he apparently wants to keep.

The role of government is to distribute the wealth of the
province -- wealth owned by British Columbians in resources
(trees, water, metals) and in social capital (trust,
collective will, civic duty).

Distribution of wealth is a well-understood function of
governments.  Equalization payments, for example, done by
the federal government distributes wealth from rich
provinces to poor.  It's not completely altruistic.  Without
transfers to the poorest provinces, even the richest will
fail if the country crumples.

Provincial governments usually distribute the wealth of the
province through public works (roads, hospitals,
infrastructure) and through public sector jobs.   This is
not  charitable act.  We get good service from public sector
workers.  Also, their wages support small business.  A
worker in a small town wage spends money in a local store,
for example.

The goal of big business is opposite that of government --
consolidate wealth not distribute it.  They maximize profits
by minimizing input costs (payroll, taxes, machinery, raw
materials).

The "hard work" that Collins refers to has meant no work for
thousands.  They have lost jobs, homes and communities.  The
modest achievements of the Liberal government will not
compensate them at all.

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