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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Left to right, Wayne Day, AF Ret’d; Doug Prentice, Army Ret’d, Kyle Dalum, Army Ret’d and Randy Kruger. Front, Vicky Kruger. Photo submitted
Veteran donates three quilts to Quilts of Valour after receiving her own

Cindy Postnikoff, who distributes Quilts of Valour to area veterans, as well… Continue reading

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Employers might be able to require COVID-19 vaccination from employees: B.C. lawyer

‘An employer must make the case’ using expert science, explains lawyer David Mardiros

Interior Health reported 79 new cases of COVID-19 and two new death in the region Friday, Jan. 22, 2021. (Ben Hohenstatt/Juneau Empire)
79 new COVID-19 cases, two deaths reported in Interior Health

Both of Friday’s deaths were both recorded at long-term care homes

Vancouver Giants defenceman Bowen Byram could be playing for Colorado when the NHL resumes play. (Rik Fedyck/file)
Cranbrook product Bowen Byram makes NHL debut with Avalanche

Highly touted prospect marks first pro game following World Junior tournament in Alberta

Centre 64 in Kimberley. Bulletin file
Kimberley’s Centre 64 receives grant for building improvements

The Kimberley Arts Council/Centre 64 has just received notice that their grant… Continue reading

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

A woman injects herself with crack cocaine at a supervised consumption site Friday, Jan. 22, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Drug users at greater risk of dying as services scale back in second wave of COVID-19

It pins the blame largely on a lack of supports, a corrupted drug supply

Wet’suwet’en supporters and Coastal GasLink opponents continue to protest outside the B.C. Legislature in Victoria, B.C., on Thursday, February 27, 2020. THE CANADIAN PRESS/Chad Hipolito
‘We’re still in it’: Wet’suwet’en push forward on rights recognition

The 670-km Coastal GasLink pipeline was approved by B.C. and 20 elected First Nations councils on its path

Jennifer Cochrane, a Public Health Nurse with Prairie Mountain Health in Virden, administers the COVID-19 vaccine to Robert Farquhar with Westman Regional Laboratory, during the first day of immunizations at the Brandon COVID-19 vaccination supersite in Brandon, Man., on Monday, January 18, 2021. THE CANADIAN PRESS/Tim Smith - POOL
Top doctor urges Canadians to keep up with COVID measures, even as vaccines roll out

More than 776,606 vaccines have been administered so far

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
B.C. Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Dr. Jerome Leis and Dr. Lynfa Stroud are pictured at Sunnybrook Hospital in Toronto on Thursday, January 21, 2021.THE CANADIAN PRESS/Frank Gunn
‘It wasn’t called COVID at the time:’ One year since Canada’s first COVID-19 case

The 56-year-old man was admitted to Toronto’s Sunnybrook Health Sciences Centre

An Uber driver’s vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

Uber said in a statement that the ruling of the justice is clear and speaks for itself

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

Most Read