[Community_Media] BC Budget Press Release - BCFL

[Bev Pausche]

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. 

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