During this brutal recession - the number of BC residents on EI has doubled between October and June - British Columbians are looking to their government for help to weather the financial storm.
The BC Liberal government's response in their throne speech and budget was to tell us that "the fiscal cupboard is bare." Their only plan includes "new austerity measures" that will make the situation worse for thousands of British Columbians.
Harmonization of sales taxes may improve the government's bottom line, but it will increase the cost of living for many consumers as we pay 7 per cent more on a huge number of items. If the move depresses consumption it could well be a job and small business killer.
The increase in MSP premiums will also increase costs for employers in the public and private sector.
Other governments are effectively using public spending as a tool to stimulate their economies, and are accepting a larger debt to GDP ratio in rough times. But B.C.'s government is heading in the opposite direction - cutting the public services that many communities rely on during tough economic times, and increasing costs.
Simply put, there is no proverbial "fat" left to cut in the public service, after the Liberals' massive service cuts in their first term. Public service workers are already stretched to the limit, as the government refuses to replace workers who leave the public service.
The B.C. Liberal budget includes substantial cuts to almost every ministry, including environmental protection, housing, social development, children and families, forestry and finance. Rather than support British Columbians during the recession, the government is hollowing out public services that have already been cut to the bone.
Statistics Canada has confirmed that BC already had the lowest per capita public sector employment rate of any government in Canada. This budget will cut another 1,500 jobs, along with the services they provide for our citizens.
Recent public opinion research confirms that British Columbians support public sector spending. Fully 85 per cent of British Columbians in a recent Ipsos Reid poll supported increased investments in public services, while 75 percent supported the creation of a new child care program to help working families.
A recent report from the Canadian Centre for Policy Alternatives (CCPA) shows that B.C. government funding cuts could depress GDP by 0.9 per cent to 1.8 per cent, kill 18,000 to 35,000 jobs, and increase the unemployment rate by 1.5 per cent.
Another CCPA study concludes that Canadians with median household incomes (the mid-point between the poorest and richest income earners) realize an annual benefit of $41,000 from public services - "equivalent to roughly 63 per cent of their total income."
Clearly, scaling back public spending will have a negative impact on our economy at a time when B.C.'s smaller communities are most in need of government services.
Gordon Campbell's budget includes $1.85 billion in allowances and contingencies over the next three years as a rainy day fund. Well, it's raining.
We are seeing record increases in unemployment, and demand for health and social services is on the rise. Our government should invest in public services that will help local economies and save family supporting jobs.
Our government should restore environmental stewardship, parks and land cleanup programs, bring down class sizes, improve education for children with special needs, increase home support services available to frail seniors, and restore important grants to arts, culture and sports groups.
British Columbians appear to be comfortable with deficit spending in hard times to maintain important services. But is our government listening?
