Capt. Renault: Oh no, Emil, please. A bottle of your best
champagne, and put it on my bill.
Emil: Very well, sir.
Victor Laszlo: Captain, please…
Capt. Renault: Oh, please, monsieur. It is a little game we
play. They put it on the bill, I tear up the bill. It is very
convenient.
-Casablanca, 1942
In the world of British Columbia politics, the annual budget
lockup in Victoria is the equivalent of a visit to Rick's Café in
Casablanca.
Finance Minister Colin Hansen plays the Humphrey Bogart role
as a slightly shady proprietor overseeing a gathering of assorted
characters who are alternately either desperate or delighted with
the results of Hansen's budget-making.
Instead of a collection of European refugees, Vichy French
collaborators, Gestapo agents, Free French underground members,
sleazy bar?flies, and a corrupt Casablanca constabulary, the
lockup features labour leaders, business-organization
representatives, well-heeled lob?byists, B.C. Liberal political
staff, Finance Ministry employees, and, of course, hordes of
media.
After entering the lockup at about 9 a.m., you are cut off
from the rest of the world until Hansen rises in the legislature
to deliver his budget speech at approximately 2:30 p.m. This
enforced confinement to one large room creates an artificial
bonhomie that is both amusing and instructional.
Like at Rick's Café, in the lockup you see adversaries who
would ordinarily be on opposite sides of a picket line or protest
instead talking amiably. There you will see B.C. Federation of
Labour president Jim Sinclair chatting with B.C. Business Council
president Jerry Lampert.
And where else would you spot former
journalists-turned-business lobbyists like Brian Kieran, the
one-time Province legislative columnist now attending
for client the Certified General Accountants of British Columbia,
or ex-CBC TV anchor Kevin Evans, now chair of the right-wing
Coalition of B.C. Businesses and a vice-president of the Retail
Council of Canada?
But although everyone is ostensibly equal at the budget
lockup, some stakeholders are there to be served by the
accommodating Liberal government while others are there to find
out how badly they will be shafted.
For example, several representatives from the New Car Dealers
Association of B.C. were in attendance, and Colin Hansen gave
them good reason to smile: his 2005-06 budget increased the
vehicle-surtax threshold for passenger cars to $49,000 from
$47,000.
Doesn't sound that momentous, does it? But it will cost B.C.
taxpayers an estimated $5 million per year so that people who buy
expensive Mercedes Benzes, BMWs, Cadillacs, and Ferraris pay a
lower sales tax than before. And that's on top of a 2001 increase
of the threshold that took an extra $40 million a year out of
government coffers. Zoom, zoom, zoom, you say?
What's more, the lobbying of the car dealers paid off again in
the budget. The Liberals announced increased incentives for
purchasing "hybrid" passenger vehicles: cars that use gas plus
electricity for cleaner emissions. That will cost taxpayers
another $3 million over the next two years and give new hybrid
buyers a $2,000-per-car tax reduction.
So how come the New Car Dealers Association is so lucky?
Perhaps it's because substantial contributions to the B.C.
Liberal party helped close the deal.
In the first 10 months of 2004, the car dealers had already
contributed $57,303 to the Liberals. That followed a donation of
$54,967 in 2003, the second-highest amount of all
contributors.
Perhaps more importantly, the car dealers hired a Ralph Klein
Conservative government bureaucrat from Alberta named Paul Taylor
as their CEO before the 2001 provincial election. After warming
the dealers' bench for a while, Taylor became deputy minister of
finance under Premier Gordon Campbell.
Last year, Taylor took over as CEO of ICBC, replacing Nick
Geer, who was fired for reportedly opposing Liberal plans to
privatize the public auto-insurance corporation. Taylor was also
present in the lockup, though he was not seen high-fiving with
the car dealers.
Smiling even more widely were B.C. retailers, even though they
got their reward in October. That's when then-Finance Minister
Gary Collins reduced the sales tax by half a percent back down to
the seven-percent rate it had been until he raised it in
2002.
The annual cost of that tax reduction is a whopping $270
million to the provincial treasury, and although Kevin Evans and
colleague Mark Startup of Retail B.C. would like to see a further
cut, they are also patient with the Liberals.
"It's got it all," Evans said in a laudatory news release
titled "Retailers Applaud Bargain Budget". It concludes
optimistically: "We'll be pressing for further PST reductions as
B.C.'s economic momentum continues to build in the years
ahead."
Back at the lockup, for the first year since I began attending
budgets in 1992, there was a noticeable absence of any
representatives from antipoverty, disability, or social-justice
groups.
But given that the Liberals have cut $881 million in funding
for the three so-called misery ministries of Human Resources,
Children and Family Development, and Community, Aboriginal and
Women's Services between 2001-02 and 2004-05, why would they
bother coming to Victoria for more bad news?
After all, their members don't buy new luxury cars or make
six-figure donations to the Liberal party, do they?
It would be like coming to Casablanca when you already know
that the Liberals will be rounding up the usual suspects for
punishment.
Sparks will fly Thursday (February 24), at a special town-hall
debate titled "Redesigning Democracy: STV and How We Elect our
MLAs" at UBC Robson Square from 7:30 p.m. to 9 p.m. I will be
joined by civic Green party school trustee Andrea Reimer debating
Citizens' Assembly members David Wills and Shoni Field. Admission
is free, but please preregister at
info.talkofthetown@ubc.ca or call 604-822-5675.
Bill Tieleman is president of West Star Communications and a
regular political commentator on CBC Radio's Early
Edition. E-mail him at weststar@telus.net.