From publish at bcfed.com Wed Feb 19 14:25:34 2003 From: publish at bcfed.com (Bev Pausche) Date: Wed, 19 Feb 2003 14:25:34 -0800 Subject: [Community_Media] BC Budget Press Release - BCFL Message-ID: <3D6D51D9DD03D611BBA700508B97628C1EEC9E@BCFEDNT> NEWS RELEASE - BC FEDERATION OF LABOUR Tuesday, February 18, 2003 For Immediate Release Howe Street big winner, working families pay the tab in BC budget, says B.C. Federation of Labour BC's Economy still lags far behind the rest of Canada with no improvement in sight Despite BC Liberal claims that BC is on track and creating new jobs, the province's unemployment rate has climbed dramatically under two successive provincial budgets and the rate won't come down any time soon, says B.C. Federation of Labour President Jim Sinclair. "BC's unemployment rate is predicted to reach 8.5 percent in 2003 and is not forecast to improve substantially until well past 2005," said Sinclair. "When the Liberals took power, the unemployment rate was 6.7 percent, the lowest level in 20 years." "The BC Liberal tax cut strategy is an unmitigated disaster," said Sinclair. "For 87 percent of BC taxpayers earning $60,000 or less, this budget completely erases any tax relief and marks the start of a massive shift in who is really paying for BC's future economic security." Sinclair also said Ministries like Children and Family and Human Resources are seeing massive downgrades in program spending, leaving the provinces most vulnerable to fend for themselves. "The Ministry of Children and Families has lost close to $200 million in spending, an amount equal to the tax cut of the top 8,000 income earners in BC," said Sinclair. "That's shameful, but is yet one more vivid example of where this government's priorities lie." "The tax shift that this budget represents will put enormous additional burdens on thousands of working families," Sinclair said. "The fuel tax increase, the property tax increase and numerous user fee increases announced over the past year are just more evidence of who's paying the freight for the failed BC Liberal tax cut strategy." Sinclair pointed out that rural BC will pay dearly for much of this tax shift, as the government continues to press ahead with cuts to programs and services throughout the province. "The government's so-called heartland strategy will be paid for by working families, who continue to lose valuable, family-supporting jobs in their communities," said Sinclair. "This budget confirms there has been a major shift toward privatization and contracting out to achieve the government's objectives, but budget documents show that the Liberals are prepared to pay significantly for achieving that privatization," said Sinclair. "In the case of BC Hydro, for example, they are allocating approximately $250 million dollars for 'one time costs' related to Accenture's takeover of one-third of Hydro's services and employees and estimate rate increases of up to 6.5 percent." "About the only positive thing I can say about the budget is that there's just one more to go before the next election," concluded Sinclair. - 30 - For more information, Bev Pausche (604) 220-0739. opeiu 15 From publish at bcfed.com Wed Feb 19 16:57:03 2003 From: publish at bcfed.com (Bev Pausche) Date: Wed, 19 Feb 2003 16:57:03 -0800 Subject: [Community_Media] Budget Editorial from the BC Federation of Labour Message-ID: <3D6D51D9DD03D611BBA700508B97628C1EECA3@BCFEDNT> Hi everyone, Please feel free to use the following op/ed article in your publications. If you have any questions or would like a photo to use with the article, please let me know. Bev Pausche Communications Assistant BC Federation of Labour http://www.bcfed.com +++++ BC budget: Liberals careening full speed ahead with their eyes closed by Jim Sinclair President, B.C. Federation of Labour The recent BC Liberal budget is another testimony to the old saying that if you keep building on your mistakes, your mistakes just get bigger. We can't afford these mistakes anymore. Victoria's latest plan shows that the Liberals are more committed than ever to continue on a reckless track to balance the budget on the backs of those least able to afford it. For the third year running - despite more than $1 billion in first-time federal transfers - we see no improvement in overall economic performance and continued cuts to critical public services. The Liberals have left us with the biggest deficit in BC's history, but the business community is cheering. The road to ruin started with a basic premise: That the Liberals had inherited an unsustainable structural deficit from the NDP government and were forced to make changes to position themselves for an economic recovery. They repeated this refrain so often that almost everyone believed their plan to cut personal and corporate taxes would produce an economic miracle. We're still waiting. The fact is, the Liberals inherited two balanced budgets and a surplus. Since then, they've delivered massive deficits, reduced services, and pushed the unemployment rate up from 6.7 percent in May, 2001 to 8.5 percent by the end of 2002. Even by their supporters' own measures, the tax cut strategy is a failure. In the words of Will McMartin, a right-wing political pundit, BC is suffering from, "the most incompetent government we have ever seen in the history of BC. To say the fiscal house is in order is a mockery of the English language. Business Council economist Jock Finlayson had similar reservations about their strategy when he said, "Legitimate questions arise as to how the government intends to finance its tax plan." Even more incredibly, Finance Minister Gary Collins admitted that he did "not yet know the impact on provincial finances." What's missing in this latest budget is this basic truth: The tax cuts are a failure. They didn't stimulate the economy, they didn't pay for themselves and now those least able to pay for them are footing the bill with job losses and cuts to critical public services. What's more disturbing is that the tax cuts did not come from surplus budgets, so the next generation will pay nearly $500 million annually in interest payments. User fees, gas and sales tax increases have clawed back all of the tax cut for virtually anyone earning less than $30,000 a year - about half of BC taxpayers. More of the same lies ahead, and the pain for achieving a balanced budget hasn't been shared equally. The labour movement agrees that we need to balance the budget, but now everyone knows we wouldn't be in this position if the Liberals hadn't been such stubborn ideologues about their tax cut strategy. Now, that the predictable crisis of record deficit budgets has arrived, we are appalled that the government is making choices that force working people to clean up the mess. It's time to put this province back on track with a plan that benefits all of BC's citizens. On the road to recovery, British Columbians want a more compassionate government, and according to a poll conducted by the BC Government and Service Employees' Union last Fall, nearly 80 percent of us would gladly give up our tax cut if it went to maintaining public services. What we all wanted to see in this budget was compassion, accountability and leadership. We want a decent province where we take care of each other. We want to provide support for our seniors and opportunities for our young. It's time for the Liberals to stop sleeping at the wheel. (624 words) opeiu 15 From publish at bcfed.com Fri Feb 21 10:50:55 2003 From: publish at bcfed.com (Bev Pausche) Date: Fri, 21 Feb 2003 10:50:55 -0800 Subject: [Community_Media] BC Federation of Labour Privatization Rally Message-ID: <3D6D51D9DD03D611BBA700508B97628C1EECC6@BCFEDNT> For release at 12 noon, February 21, 2003 Gordon Campbell's drive to privatize is taking BC's economy in the wrong direction and ordinary people are being asked to pay the price BC Liberals set to raise Hydro rates by more than 20 percent While Gordon Campbell's Howe Street friends get together for lunch to let Premier Campbell know how he's doing, they should be asking how ordinary people in the province are doing, says B.C. Federation of Labour President Jim Sinclair. It's time for Gordon Campbell and the BC Liberals to start listening to ordinary working families, not just his corporate backers," said Sinclair, speaking to a rally at noon today in front of the Hotel Vancouver. "Middle and low income British Columbians are being asked to pay more in gas taxes, pay over 20 percent more in Hydro rates, pay 60 percent more in tuition, pay 12 percent more in ICBC rates, pay more in Medicare premiums, and pay more in user fees and sales tax," said Sinclair, "and now seniors are being asked to pay more for Pharmacare." "And what are they getting in return?" Sinclair asked. "Campbell's friends and corporate backers get over a billion dollars in tax giveaways and ordinary people get a $6 minimum wage and countless cuts to health, education and vital public services." Accenture - the Bermuda-based company taking over 1/3 of BC Hydro's operations and employees - and BC Gas invited members of the business community to attend Friday's Chamber of Commerce luncheon with Gordon Campbell and his Cabinet just days after the BC Liberals revealed Hydro rates will increase by more than 20 percent. "Accenture is taking Campbell and his Cabinet to lunch and the people of BC to the cleaners," said Sinclair. "Gordon Campbell's empty heartland promises won't keep communities quiet," added Sinclair. "They know BC's economy faces significant challenges, but they want to see the province back on track with a plan that benefits all of BC's citizens." Sinclair concluded by renewing his call to the BC Liberal government to bring together BC's business, labour and community leaders to craft a strategy to build the economy while protecting health, education and public services. -30- For more information: Bev Pausche (604) 220-0739. opeiu 15 Bev Pausche Communications Assistant BC Federation of Labour