Smyth: NDP still vulnerable on economy, a year after election debacle

By Michael Smyth, The Province May 12, 2014

Smyth: NDP still vulnerable on economy, a year after election debacle

John Horgan, the new leader of B.C.’s NDP, must find a way to assure voters that his party will not damage the economy in its efforts to protect the environment from damage by megaprojects such as the Site C dam.

 

One year ago today, pundits and pollsters everywhere predicted the imminent demise of Premier Christy Clark and her Liberal government.

One year ago tomorrow, those same political prognosticators sat down to a super-sized meal of humble pie, as Clark pulled off the greatest comeback in B.C. history.

The election of May 14, 2013 — exactly one year ago Wednesday — confounded analysts mesmerized by the 20-point lead in pre-election polls enjoyed by Adrian Dix and the NDP.

How did the NDP blow such an advantage? One year after the shocker, a couple of answers emerge.

For one thing, despite what voters might tell pollsters before an election, most people don’t make up their minds on how to vote until the sustained heat and glare of a campaign.

It’s clear now that most of those voters didn’t think much of Dix once they took a good look at him. One image that sticks in my mind: the way Dix slouched against his lectern during the televised election debate. Not a good look for him.

But perhaps the greatest lesson of last year’s election-night surprise was the proof it provided for an old political axiom: It’s the economy, stupid.

From the beginning of the campaign, Clark hammered home an optimistic message of private-sector investment, thousands of new jobs and unparalleled prosperity for B.C.

Will even a fraction of her grandiose promises — such as a trillion-dollar natural-gas gold rush and enough riches to wipe out the province’s $60-billion debt — come true?

It’s still too early to say, but enough voters dared to believe Clark’s utopian vision to give the Liberals another majority-government mandate.

A year later, it’s easy to see how the Liberals plan a repeat performance in the next election: by painting themselves as the party of prosperity, and the NDP as the party that will say No to jobs and investment.

Clark will continue to promote her liquefied-natural-gas miracle. And now the government appears poised to back another megaproject: the $8-billion Site C dam on the Peace River.

On Monday, new NDP leader John Horgan attacked Site C in the legislature, insisting B.C. doesn’t need the new power it would generate.

While Horgan demands that the project be turned over to the B.C. Utilities Commission for more study, it appears Clark’s Liberals will push ahead with it anyway.

And that’s just the way Clark likes it: The Liberals saying “Yes” and the NDP saying “No” all over again.

Here is Horgan’s new challenge: If he chooses to fight controversial megaprojects such as the Site C dam, the Prosperity mine, and the Enbridge and Kinder Morgan pipelines, he must find a way to simultaneously reassure voters that the NDP will not damage the economy.

Horgan must also learn another lesson from Clark’s victory of a year ago: Attack ads work, and the New Democrats can’t go easy on her.

Horgan has vowed to “highlight the shortcomings of the Liberals,” saying the NDP’s failure to do that was a “singular failing” of the 2013 election campaign.

A year later, Horgan has only begun to fight. Clark will be ready for him.

B.C. Liberals refuse to look at alternatives to putting Hydro customers on $800 million hook

May 12, 2014

VICTORIA – Today, the B.C. Liberal government shut the door on independent expert review of the Site C project proposal, leaving B.C. Hydro customers on the hook for a loss of $800 million should the project go forward on the government’s timeline.

According to the panel’s report “B.C. Hydro projects losing $800 million in the first 4 years of operation,” under the government’s project timelines.

“Families are already facing a 28 per cent rate hike because of the B.C. Liberals’ complete mismanagement of B.C. Hydro,” said B.C. New Democrat leader John Horgan. “Now families will be on the hook for an $800 million loss because the B.C. Liberals are steamrolling ahead before the demand is there.”

The Joint Review Panel for the Site C project released its report last Thursday, recommending that the B.C. Liberal government “refer the load forecast and demand side management plan details to the B.C. Utilities Commission,” and have the BCUC review the proposed project’s costs.

Today in Question Period, B.C. Liberal Minister of Energy & Mines, Bill Bennett refused to refer the project to the BCUC to independently investigate alternatives that would limit ratepayers’ liabilities.

“Right now, we have Liberals telling Liberals what Liberals want to hear,” said Horgan. “That’s a reckless and irresponsible approach to such a massive project. We need an independent expert review to protect the ratepaying public.”

We Lose When B.C. Government Listens To Bond Raters Over Citizens

Susan Lambert  Susan Lambert     Past President, B.C. Teachers’ Federation

http://www.huffingtonpost.ca    05/05/2014

Peter Cameron’s warnings that the economic skies of B.C. will fall should government negotiate a fair contract for B.C.’s teachers reminded me of Doug Foster’s testimony in the historic court case won by the B.C. Teachers’ Federation this spring.

Foster, assistant deputy finance minister and unabashed fervent apostle of “free market” based economic policy, testified that the province invites bond raters to advise as provincial budgets are developed. That advice is designed to “keep taxes low and constrain spending” in return for a good credit rating.

Foster testified the bond raters are wary of all spending, including capital projects, and are staunchly opposed to deficit budgets. The net zero mandate was approved of by these raters who promised to maintain the triple AAA rating only with the caution that the mandate be maintained.

Foster also testified that government agreed with the raters that the economy was fragile, even though this analysis was contradicted in the government’s message to the people of B.C.

Colin Hansen, the finance minister at the time, painted a rosy picture of the economy in the province, talking about B.C. as one of the strongest leaders in economic growth in Canada attributable to the success of the Olympics, the ability to pay down the debt by $9 billion, and projections of personal income increases of three to four per cent among other favourable indicators.

So Cameron’s warnings connect some economic dots for me. Seems like the bond raters, firms like Standard and Poors found to be complicit in the 2008 global economic crisis, are once again “advising” government. These are the people in favour of an alternative vision of Canada, (one in which the 1% have both economic and political clout and can dictate policies that increase the numbers of homeless, impoverished and dispirited in an increasingly mean world), who are coercing our government with the financial equivalent of the fabled carrot and stick.

Rather than charting our own course as citizens of this province and probably this country, we are being held to ransom by the rogues and villains who profit from low taxes, smaller government and free markets.

These are the greedy charlatans who preach “trickle down” economics and promote private rather than public services. Who are supported by corporations with production and supply lines in Bangladesh where there are no regulations or unions to protect workers from exploitation, violation and death in order to profit when these goods are sold for enormous returns here in B.C.

And what effect has this “free market” driven economic policy had on public services in this province? You don’t have to look further than your local school board struggling to identify yet further cuts to the programs and services that once made the system the strongest in the world.

We have the highest child poverty rate in the country. Mary Ellen Turpel Lafond has recently revealed that we have, across the province, fewer services for children than there are in the city of Calgary.

As this government heeds the advice of free market economists, so does our investment in public services decline. These neo-liberal economic policies are supposed to be beneficial for all, but we see the stark reversal of that promise.

The hope of jobs is fading as the promise is pushed further and further back on the horizon. Public services are declining. And costs to ordinary citizens are increasing. When will we ever learn?

Follow Susan Lambert on Twitter: www.twitter.com/susant8404