What Is a Left-Leaning Green to Do?

https://upload.wikimedia.org/wikipedia/commons/thumb/8/8a/Ic_thumbs_up_down_48px.svg/200px-Ic_thumbs_up_down_48px.svg.pngWith less than a week to go before election day and polls tightening across British Columbia, I find myself in the all-too-common predicament of dreading the electoral options before me.

The Liberals, naturally, are out of the question. They have governed this province horrendously through 16 years of the wrong kind of class warfare, slashing education and social services, offering up more for wealthy donors than for regular people or the natural environment. True, former premier Gordon Campbell showed genuine concern for climate change for about 15 minutes back in 2008, but his successor Christy Clark froze BC’s paltry carbon tax at $30 per tonne and weakened her predecessor’s clean energy regulations in service of her pie-in-the-sky LNG dreams.

As for the NDP, the kindest thing one can say is that they are not the Liberals. Leader John Horgan, in an attempt to appeal to both the labour and the environmental wings of his party, is pledging to raise the carbon tax to the level required by the federal government, but to do so at a marginally faster pace than will the BC Liberals. The party favours some LNG projects and not others. It is strongly opposed to Kinder Morgan’s Trans Mountain pipeline expansion, while it straddles the fence on the Site C dam.

The NDP represents the province’s best shot at effecting a change in government, yet this does not in itself constitute sufficient reason to vote for them. To cast one’s ballot “strategically” lets mediocre parties off the hook for their mediocrities and sets the stage for a race-to-the-bottom-style proliferation of inadequate policy. Progressives must demand more from the NDP, insisting that our support be earned, not taken for granted.

Which brings us to the Greens, the party perennially on the verge of either breakthrough or irrelevance, never quite reaching either. Unsurprisingly, the Greens have by far the most environmentally sound platform — and probably the most progressive one too. They promise to raise the carbon tax to an eventual target of $70 per tonne — $20 above the federal requirement — and to expand it to cover some emissions not currently priced. Party leader Andrew Weaver has been a lone voice of reason in the Legislature opposed to LNG development, and he rejects the approval of any new fossil fuel infrastructure.

On the social front, the Green Party matches the NDP’s promise on raising corporate taxes, while surpassing them on personal income tax hikes for the wealthy. Income assistance rates would be higher under a Green government than under either other major party. Both the NDP and the Greens have some worthy, albeit incomplete, ideas on housing, and while NDP child care policy presents a good deal more detail, the Greens have one-upped them on affordability.

Boasting the largest increases to both spending and revenue, Greens distinguish themselves as the party of what is ominously referred to in right-wing circles as “big government.” While their rivals promise to keep budgets in the black, the Greens pledge only to balance the books on average over a four-year term, allowing deficits to occur during individual years.

Where the Greens start to falter is not so much in their platform as in their leader. Weaver is an accomplished climate scientist and former lead author on several IPCC reports. When he speaks, people rightly listen. But his stature suffered when, during his term as MLA, he bewilderingly voted for two Liberal government budgets.

Like many Green voters, I could not help but wonder what he was thinking. Was it a matter of deep-seated conviction on his part? Or of wanting to “do politics differently,” as he nebulously claimed in the moment? Did he simply wish to ingratiate himself to whoever happened to be in government? Add to this his strange infatuation with private power and his criticism of the NDP’s equity policy on candidate nominations, and it is not clear that Weaver is capable of walking his party’s progressive talk.

Furthermore, the stakes are particularly high in the current election, in which the Greens are polling unusually well for a third party, while the Liberals and NDP wage a closely fought battle for first place. If no party gets a majority in the Legislature, who would Weaver and his potential caucus-mates throw their support behind for premier?

For my part, I plan, with some reservation, to risk another vote for the Greens on May 9, premised on the possibly flawed assumption that an NDP-Green alignment makes more sense than a Liberal-Green one. Two budgets aside, Weaver has voted with the NDP far more often than he has with the Liberals, and he stated in 2013 that he would prefer an NDP to a Liberal government.

However, I understand that others, including many whose opinions I deeply respect, might make their calculations differently. Weaver is a bit of a gamble. Under the circumstances, I cannot blame anyone for casting a safe — albeit uninspiring — vote for the NDP.

This post appears on rabble.ca.

Six Ways That the Greens Are Canada’s Most Progressive Party

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In the midst of a campaign dominated by horse races and attack ads, by fear and scandal and appeals to our basest political instincts, it is easy to forget that elections are meant above all to be about policy. Which party offers the kindest, most equitable, and most sustainable vision for the country?

The answer, in my opinion, is clear. Here I present six important ways that the Green Party of Canada is the most progressive of our major national parties.

1. Climate

Climate change is the defining challenge of our generation, one that is inextricably linked to our well-being and survival, yet politicians typically treat it as some trifling matter to be addressed only when there is nothing more pressing on the agenda. For the Green Party, however, climate considerations are central.

The party’s platform calls for Canada’s greenhouse gas emissions to be reduced to 40 per cent below 2005 levels by 2025 and 80 per cent below 1990 levels by 2050. Vision Green, the party’s in-depth policy document, speaks of even steeper reductions. Much of the heavy lifting for this program of cuts would be performed by a carbon fee and dividend system (a form of carbon tax), set at the admittedly paltry rate of $30 per tonne, but projected to rise over time. The only other party calling for a federal price on carbon is the NDP, but its cap-and-trade policy is sorely lacking in detail. There is no way of knowing, based on the information thus far provided, how stringent or comprehensive the NDP plan would be.

On pipelines, Liberals and New Democrats, to their credit, both oppose Northern Gateway, but they can’t seem to make up their minds on Trans Mountain and Energy East. The Liberals support Keystone XL, while the NDP rejects it. Only the Greens take a principled stance against all pipelines meant to export raw bitumen, pledging to halt oil sands expansion and to shift our economy towards renewable energy and sustainable jobs.

2. Taxes

While reasonable questions can be raised about the Green Party’s insistence on revenue neutrality when it comes to carbon taxes, there is no doubt that its fee and dividend plan is on balance progressive. Revenue produced by the “fee” is meant to be returned to all Canadians as an equal per capita “dividend.” Since people with low incomes would pay less on average than those with high incomes (due to lower greenhouse gas emissions), they would tend to get more out of the system than they put into it. The result would be a modest redistribution from rich to poor.

Additionally, the Greens pledge in their budget overview to eliminate income taxes on those making less than $20,000 per year, to reintroduce a tax on inheritances greater than $1,000,000, and to raise the corporate rate from 15 to 19 per cent (leapfrogging the NDP’s 17 per cent). Some of the projected increase in revenue would go towards the party’s vaunted Guaranteed Livable Income (also known as a negative income tax), a proposed increase to and consolidation of various federal and provincial assistance programs aimed at ensuring that no Canadian lives in poverty.

3. Trade

In an era when the battle against free trade and investor protection agreements has largely been abandoned, the Greens are the only major party still willing to fight the good fight.

The Liberal Party has supported trade liberalization treaties ever since notoriously breaking its 1993 election promise to pull Canada out of NAFTA. Even the NDP, in recent years, has dropped its principled opposition, preferring to assess trade agreements on a case-by-case basis (yes to Jordan and South Korea, maybe to CETA, no to the recently signed TPP).

The Greens, by contrast, stand unequivocally on the side of fair rather than free trade. Party leader Elizabeth May has been one of the country’s most passionate voices in opposition to the FIPA with China. Vision Green even goes so far as to suggest providing the requisite six months’ notice to withdraw from NAFTA as a means of pushing for renegotiation on more favourable terms.

4. Post-secondary education

Dozens of countries around the globe, across both the developed and the developing world, offer free post-secondary education. For the most part, this is considered a non-starter here in Canada. Alas, it is once again only the Greens who favour the complete abolition of tuition fees. They also promise to cancel existing student debts over $10,000.

5. War and peace

Non-violence is one of the six fundamental principles of the Green Party of Canada. The principle was put on dramatic display in 2011 when, barely a month after she was elected, Elizabeth May took a stand in the House of Commons, providing a lone vote of dissent against Canada’s continued participation in NATO’s war on Libya. Given the ongoing disaster still unfolding as a result of our intervention, May’s foresight deserves be acknowledged.

6. Growth

The Green Party is by no means anti-capitalist, but by questioning the ideology of infinite growth, it goes farther than either the NDP or the Liberals in undermining the most destructive foundation of our economic system. Vision Green explicitly calls for a steady-state economy and a reduced work week, stating, “Continued exponential growth is counter to the realities of a finite planet.”

None of this prevents the party from speaking the language of “smart growth” and “sustainable growth” when convenient. Perhaps this apparent contradiction reflects a distinction between short-term and long-term objectives. Nevertheless, in the current political climate, any willingness to broach the subject of limits to growth is a rare feat.

Some hedging …

The Greens are not perfect on every issue. Regrettably, it is only the Liberals who favour a rise in the personal tax rates of the top one per cent. And the NDP, in addition to having a more fleshed-out child care policy, has set a short-term greenhouse gas reduction target that is marginally more ambitious than the Green Party’s.

However, on most issues, Elizabeth May and her running mates occupy a place in the political landscape that we would be foolish to overlook. To expect them simply to disappear — to roll over and die in the face of deliberate mischaracterizations and short-sighted appeals to strategic voting — is neither realistic nor desirable. They fill a hole in the national conversation and challenge us to demand more from other parties.

If the NDP and the Liberals truly want to defang the Greens, they could start by adopting their policies.

This posts appears on rabble.ca.

Five Lessons — Real and Imagined — from BC’s Election Results

electionIn a stunning upset of “Dewey Defeats Truman” proportions, the BC Liberals have defied all the polls save one and returned to power with a fourth straight majority government. No doubt, there will be much soul searching and wound licking over the coming weeks. I believe that five lessons — real, imagined, and not-quite-clear — will be gleaned from the experience.

1. Proceed with caution when predicting the future.

In last year’s US Presidential election, statistician Nate Silver made fools out of all those television pundits who privileged “gut feeling” over quantitative analysis. But sometimes even the data geeks get it wrong.

So what happened in British Columbia? Did voter support swing at the last minute? Did New Democrats fail to get out their vote? Were there methodological problems with the polling? All we can say for sure is that the political landscape is littered with failed predictions (albeit rarely so shocking as last night’s), and that in the future, partisans and non-partisans alike are probably better off displaying greater humility when speaking of what is yet to come.

2. Going negative works.

This is a very depressing development. Early on, NDP leader Adrian Dix admirably vowed to run a positive campaign, and although that strategy began to shift in the final days, his team never attempted anything on the scale of the unrelenting attacks unleashed by Premier Christy Clark and the Liberals.

While negative campaigning can sometimes backfire, it appears to have worked this time around, as the Liberals successfully tapped into the sizable block of BC voters susceptible to red scare tactics. All the Premier had to do was remind us of secret NDP plans to steal our hard-earned tax dollars and distribute them to greedy union bosses, or something to that effect, and BC’s “free enterprise coalition” dutifully flocked into action.

If I were inclined to ignore lesson #1 above, I would predict an NDP emulation of this campaign style for the next several elections.

3. Campaigning on the environment doesn’t work.

This is even more depressing — and not necessarily accurate. But in politics, it is perception that matters.

During this election, the NDP adopted a moderately progressive environmental platform. The strategy evidently did not pay off. Conceivably, the problem may have been that its environmental policies did not go far enough; perhaps a more stringent stance, like opposition to LNG, might have chipped off a few extra Green votes and energized the party’s base. But New Democrats are most likely drawing a different conclusion. I predict (again, with all due humility) that in the next election, the NDP will focus more on capturing the ideological territory of the Liberals than the Greens.

But there are different strategies to consider.

4. The NDP and the Greens must cooperate.

This call is likely to grow louder over the coming months and years, but electoral cooperation won’t be easy to implement. Green Party support comes from across the political spectrum — more so from the NDP than the Liberals, to be sure, but not overwhelmingly so. Plus, it is hard to determine exactly how Green and NDP transfers of support would break down on a riding-by-riding basis.

But while such a scheme is not guaranteed to succeed, neither is it guaranteed to fail. A pre-election alliance in targeted ridings is at least worth further exploration. And with Jane Sterk’s probable impending departure from the Green Party leadership, possibly to be replaced by new MLA Andrew Weaver who said he would prefer an NDP to a Liberal government, bad blood between the two parties may yet diminish.

5. It’s now up to civil society.

Regardless of what happens in 2017, BC will spend the next four years governed by a party that believes itself to have a mandate for pipeline ambiguity, LNG development, and climate inaction. Environmental and social justice groups must mobilize to demonstrate to the government that its priorities for the province are not embraced by the majority of voters who wanted someone else.

“Well, that was easy,” Christy Clark joked in her victory speech last night. It is now up to all of us to make sure that the next four years are anything but.

This post appears on rabble.ca.

Party Positions on BC’s Carbon Tax

Carbon taxWith the release today of the NDP’s fiscal plan in advance of the May 14 election here in British Columbia, we are now finally able to assess where the major parties — Liberals, New Democrats, Greens, and Conservatives — stand on the province’s carbon tax. In my opinion, there are four primary questions by which their respective carbon tax proposals are to be judged:

  1. Will the tax be raised?
  2. Will the tax base be expanded?
  3. Will the tax remain revenue neutral?
  4. How will equity concerns be addressed?

This is not to say that these four criteria are the only relevant ones in carbon tax policy. But I believe they are the most important.

First off, the only thing that needs to be said about the Conservative position is that the party opposes the carbon tax and plans to eliminate it in the unlikely event that a Conservative government is formed. A similar policy was adopted by the New Democrats four years ago, which did not end well for them. I can’t see it going any better for the Conservatives. ‘Nuff said.

Raising the Tax

As for the other three parties, let’s start with where they stand on raising the carbon tax. The Liberals — who introduced it back in 2008 at $10 per tonne, raising it incrementally until it reached $30 in 2012 — have now promised to keep the tax frozen at its present rate for five years to allow other jurisdictions a chance to “catch up” to BC’s “leadership.” The NDP’s fiscal plan indicates that the likely next government will be taking roughly the same position. Only the Greens (full disclosure: I’m a party member) are pledging to increase BC’s carbon tax to $50 per tonne and to continue nudging it up from there until it gets the job done.

Expanding the Base

On the subject of the tax base, let’s note that the carbon tax, as currently constituted, applies to only about two-thirds to three-quarters of emissions in the province. Exempt are certain mostly industrial emissions coming from oil, gas, cement, aluminum, and other sectors. The Liberals have announced no plans to change this, while the NDP says it will expand the tax to some areas (such as oil and gas) but not others (such as cement and aluminum), and the Greens promise to tax all greenhouse gas emitting industries.

Revenue Neutrality

The issue of revenue neutrality is one which I think is not nearly as important as it is commonly assumed to be. So, counterintuitively, here is a lengthy digression on the subject:

Currently, the carbon tax is required by legislation to be revenue neutral (it’s actually revenue negative, but who’s counting?), with every dollar coming in going back out in the form of tax credits and cuts to personal and corporate income taxes. The rationale is something along the lines that if people are aware that their tax burden will be no greater (on average) with a carbon tax than without, then they will be more likely to support it because, after all, everybody hates taxes. What the Liberal government did not count on, however, was that many would not be convinced of the carbon tax’s effectiveness unless they saw its revenue being put to productive use. There is a certain poetic justice in the idea of a tax on greenhouse gas emissions being used to pay for public transit and other eco-friendly projects.

Political optics aside, the best argument for revenue neutrality is that the base for a carbon tax (i.e. greenhouse gas emissions) should be declining over time, assuming that the tax is doing what it was designed to do. Such an unstable revenue source will not provide reliable funding for important government services — green or otherwise — so it is better not to depend on carbon taxes for revenue at all.

On the other side, opponents of revenue neutrality might acknowledge that perhaps carbon taxes are not ideal sources of government funding, but we are not exactly spoiled for choice. Not nearly enough is being invested in green initiatives at present, so why not exploit whatever revenue we happen to have at our disposal, regardless of how imperfect it might be?

Personally, I consider both these arguments to be about equally convincing (or unconvincing) and find myself in the rare position of being pretty much neutral on revenue neutrality. I support carbon taxation and I support green government spending, but what do I care whether or not funding for the latter comes strictly from the former? I could simply go either way on the issue.

BC’s political parties don’t quite see things the same way. The Liberals seem to be holding the line in favour of revenue neutrality (even if their latest budget has altered the tax cuts which were originally part of the revenue neutral deal, but never mind), whereas the New Democrats have long supported investing carbon tax revenue in public transit and other such projects. The Greens, officially, are on the side of revenue neutrality, but they have indicated that they might be open to compromise.

Equity

Finally, there is the question of equity. Carbon taxes on their own, like all consumption taxes, are well known for being regressive, meaning that on average the poor have to pay a larger percentage of their incomes (although lower absolute amounts) than the rich. For this reason, most fair carbon tax proposals include some kind of mechanism to compensate for this regressive element. BC’s carbon tax includes a low-income tax credit meant to do just that, but unfortunately, a study by the Canadian Centre for Policy Alternatives shows that the current program does not go nearly far enough and that our carbon tax is still, on balance, regressive.

I have not heard the Liberals or the NDP say anything about changing this. The Greens meanwhile have promised to “exempt” (whatever that means) people below the low-income cut-off from the carbon tax. The lack of detail on offer from parties across the spectrum suggests to me that the issue of equity is not being treated as seriously by opinion makers as it deserves to be.

Final Assessment

  • Green Party: B+
  • New Democratic Party: C+
  • Liberal Party: C-
  • Conservative Party: F (or I for Incomplete)

Note, these grades reflect the parties’ carbon tax proposals only. Carbon taxation is not the sole dimension of a comprehensive climate policy, but it is an incredibly important piece of the puzzle. I find it encouraging to see three of the four major provincial parties openly embracing an idea which is still considered taboo on the federal level. That being said, it would be even more encouraging if they would step up their game. Climate change is the key challenge of our generation, and a well-designed, progressive carbon tax ought to be considered part of any reasonable set of solutions.

So hop to it, BC parties! The stakes are high and time is short.

Bring Your Boomers: How BC Candidates Fare on Climate Change

Enbridge pipelineAlthough the writ for the upcoming BC election won’t be dropped for another two weeks (yes, this campaign has been going on forever), I had the pleasure yesterday of attending an all-candidates meeting on climate change organized by Gen Why Media.

The forum seemed geared primarily towards the young ’uns, despite being billed by organizers as part of their ongoing “Bring Your Boomers” intergenerational dialogue series. A few older voices in the audience could be heard complaining about the darkness of the venue and the frenetic Twittercentrism of the onstage decorations. And though I am ostensibly still part of the youth demographic (I think) for whose benefit all this was being done, even I felt that the ambient electro-rock band Au4 which opened and closed the evening, while very talented and entertaining, was a bit loud for a political event.

Window dressing aside, however, it was a lot of fun. Five candidates running in the upcoming election from across the province shared the stage with three young people (Sam Harrison, Caleb Behn, and Andrea Curtis) who drilled them on their environmental commitments. Former Quebec City Bureau Chief for CTV Kai Nagata served as moderator.

The consummate star of the evening was independent MLA and former New Democrat Bob Simpson from Cariboo North. He drew by far the most applause by coming out strongly against both the Enbridge and the Kinder Morgan pipelines, and declaring the phrase “green LNG” (liquefied natural gas) to be “nonsensical.”

Green Party leader Jane Sterk seemed like somewhat of a kindred spirit, and it is no wonder she is not running a candidate against Simpson in his riding. She unsurprisingly took the strongest environmental stances of the four party representatives onstage, echoing Simpson on pipelines and natural gas, and adding that a Green Party government would raise BC’s carbon tax from thirty to fifty dollars per tonne.

NDP environment critic Rob Fleming got his fair share of love from the audience too, but he had to put up with some minor heckling whenever the room noticed him waffle on an issue. While the Enbridge pipeline got a firm “no,” Kinder Morgan was a “maybe,” pending a new review process. He spoke favourably of liquefying natural gas for export using renewable energy, so as to avoid the in-province emissions that would result from the current government plan, and stressed the potential role of BC gas in weaning China off of coal, a common claim by both major parties which critics find questionable.

More than a few eyebrows were raised by punk rocker and Conservative candidate Duane Nickull. Running against the Premier in her riding, he touted the importance of geothermal energy and repeatedly emphasized that the BC Conservatives are not the Harper Conservatives.

Finally, drawing a large majority of the evening’s heckles was youthful first-time provincial candidate Gabby Kalaw of the governing Liberals. He definitely came across as the phoniest of the bunch, the way he earnestly greeted everybody onstage by name and kept transparently trying to “relate” to people. He also had the toughest job of anyone at the forum, considering the palpable hostility that virtually the entire audience felt towards his party. But I was unable to shed a tear for him once he started spouting nonsense about using a “Prosperity Fund” of natural gas revenue to help us finance the fight against climate change in some unspecified way.

The high point of the evening came at the very end. Since the main event ran long, there was not as much time for questions from the audience as expected. So when Kai Nagata began wrapping up, a revolt almost broke out. One sweet little old lady in the back had her hand up for a very long time, and members of the audience began insisting that she be given the chance to speak. Nagata apologized, informing us that there just wasn’t time, and the audience’s displeasure grew more and more feverish. Finally, Nagata gave in and allowed the sweet little old lady in the back to have the last word, whereupon she stood up and, in her sweet-little-old-lady voice, launched into a rambling, incoherent proclamation about chemtrails.

Best. Ending. Ever.

Cleaning Up Gordon Campbell’s Mess

Christy ClarkAccording to every poll and every projection by every firm and every commentator, Christy Clark and her Liberal Party are about to be handed an unbalanced ass-whooping of the sort we British Columbians seem to enjoy dishing out to governing parties once every decade or so. Naturally, when this happens, I will be singing and dancing as much as the next person. But allow me to qualify my unencumbered joy thusly:

The impending Liberal defeat is not Christy Clark’s fault.

Well, not primarily. She certainly hasn’t helped. “Ethnicgate” does not reflect well on the Clark government, but this present ordeal is not particularly different from the “very ethnic” mini-scandal that failed to put a dent in the Harper Conservatives during the last federal election. People are outraged at the BC Liberals now because we were already predisposed to feel outraged. “Ethnicgate” provided a focus for what was always there.

So why don’t we like the Liberals? All arrows point to Gordon Campbell, that ghostly spectre whose past misdeeds will no doubt haunt the upcoming campaign. Clark is simply paying for her predecessor’s mistakes, and while she has committed her own fair share of blunders along the way, not even the charismatic lovechild of Justin Trudeau and Barack Obama could have prevented the SS Gordo from sinking. The Liberal Party’s fate was permanently sealed one summer day in 2009 — only two months after the last election — when the Campbell government announced its plan to introduce the dreaded HST.

Let me qualify my point once more. The Harmonized Sales Tax, which will finally meet its end next week, is not all bad. Nor is the old Provincial Sales Tax, which will replace it, all good. As far as consumption taxes go, value added taxes like the HST are undoubtedly more efficient than cascading taxes like the PST. And it may even be the case that businesses would have passed on all their HST savings to consumers through lower prices — eventually. (But then why was the business community so in love with the HST? Never mind.)

So what is wrong with the HST? I can’t speak for all British Columbians. Surely, the sneaky, underhanded way in which the government introduced the tax plays a big part in explaining why people don’t like it, and understandably so.

As for me personally, the main reason I signed the anti-HST initiative and voted against the new tax in the subsequent referendum is that I am not a fan of broad-based consumption taxes in general — be they HST, PST, or GST. Such taxes are notorious for taking a bigger bite out of the incomes of the poor than the rich. And while I realize that it is unrealistic to eliminate both the HST and the PST all at once, I came to the conclusion during the HST debate that the only proposal I could support would be a conscious effort to shift taxes incrementally away from consumption and towards more sensible tax bases. In other words, lower the sales tax — whatever form it takes — and recoup lost revenue by raising income taxes, corporate taxes, or carbon taxes (a more targeted consumption tax).

Of course, neither the Campbell nor the Clark Liberals gave any indication that they were willing to engage in a profound conversation of this nature. All I can do is hope that the incoming NDP government will be more open to such an exercise. In the meantime, I happily count down to election day and await the long overdue demise of the Campbell era — more than two years after he stepped down as Premier.

Some Thoughts on the BC Budget

budgetFive months ago, I predicted that the Liberal government of British Columbia would fail in its effort to balance the 2013 budget. Notwithstanding this week’s boastful headlines to the contrary, the jury is still out.

I will not assert, as many others have done, that the surplus is purely fictional, but rather that, for the time being, we just don’t know. So many variables are at play, and the projected surplus is so razor-thin — $197 million in a $44 billion operational budget — that we will have to wait until well after the May election before we can be sure whether or not the government was massaging the numbers. (This in itself is good reason to take seriously the proposal by three independent MLAs to change BC’s fixed election date from the spring to the fall starting in 2017.)

But such uncertainty over the ontological status of the surplus does not mean that I am at a loss for words. Yesterday’s budget contains many features both good and bad (okay, mostly bad), so let’s take a look-see.

First of all, there is the accounting trickery. About $150 million dollars in program spending that would normally find itself in this year’s budget has instead been moved to last year’s. That’s most of the surplus right there. While malfeasance of this kind might not warrant such grown-up terminology as “fraudulent” (or perhaps even “malfeasance”), I think “fishy” is more than appropriate. Furthermore, the wiggle room offered for the forecast allowance and contingencies is considerably lower than what some would call prudent, and revenue from natural resources is alleged to be exaggerated.

Then there are the asset sales — the magnitude of which veteran columnist Vaughn Palmer cannot recall ever having seen before. Sales of government assets obviously do not provide a sustainable route to fiscal responsibility. They are one-time only.

What this indicates is that the Liberals are so desperate to show off a balanced budget merit badge in an election year that they will do just about anything. That includes some major spending cuts on environmental and other initiatives (no surprise there) and increases to regressive taxes like MSP premiums (par for the course).

Somewhat unexpectedly, however, the Liberals are also looking to steal the NDP’s thunder by marginally increasing personal income taxes on the rich and nudging up the corporate tax rate.

Well well, look who finally joined the Comintern!

Could it be that demanding a tiny little bit more from those who can most afford to pay does not violate the laws of nature after all, that even a party so business-beholden as our glorious Liberals suffers the occasional impulse to offer policies people actually want? They had better be careful! Election year or no, this could set a dangerous precedent.

In conclusion, this will likely be the BC Liberal Party’s last budget for at least four years — hopefully more — and they have mostly squandered the opportunity for an honourable legacy by tabling a pretty bad one. But it’s not all bad. Credit where credit’s due and all that.

As for the surplus, time will tell.

Playing to the Left: Joyce Murray and the Liberal Leadership Race

Joyce Murray

I still have nothing to say about golden boy Justin Trudeau. For the life of me, I cannot seem to form an opinion of the man one way or the other.

Nice hair, I guess. But meh.

In the wake of yesterday’s Liberal Party of Canada leadership debate, Joyce Murray is the candidate I would prefer to write about. Something interesting has happened in her case: a decade after having presided over massive provincial environmental spending cuts as Minister of Water, Land and Air Protection in one of the most right-wing governments in BC history, she now appears to be presenting herself as both the green and the left candidate in her party’s leadership race.

She claims to favour carbon pricing, protecting the BC coastline, Idle No More, pot legalization, quotas for women in cabinet and other appointments, and — perhaps most interestingly — targeted electoral cooperation with the NDP and Green Party for purposes of defeating the Conservatives and bringing in proportional representation, a strategy I have gone on record before as supporting.

These developments do not come entirely out of left field, so to speak. Long before she entered provincial or federal politics, Murray co-founded a reforestation business with her husband, and she wrote her MBA thesis on climate change in the early 1990s back before Al Gore had become a movie star.

The unreformed cynic in me cannot help but wonder which Joyce Murray it was who sold out her principles for political gain: the one-time provincial cabinet minister or the modern-day federal Liberal leadership candidate? Is she really a moderately progressive eco-capitalist or a heartless, cost-cutting reactionary?

Don’t ask me to sort out the identity issues of today’s typical politician. All I can say is that I like the policies Murray is now coming out with, and these policies are probably not wholly ephemeral. When contenders say things during leadership campaigns, they will usually water down their commitments later on during general elections, but they cannot abandon them altogether. Party leaders will always be reminded by their bases of the promises that got them such cushy positions in the first place — and pressured accordingly.

Take Mitt Romney. (Please!) By natural inclination (to the extent that the man has natural inclinations), Romney is a fairly centrist Republican. Yet he was pulled so far to the right by the primary season nut jobs of his party that by the time the Presidential election came, though he tried to tone himself down somewhat, he was stuck having to pretend to foam at the mouth over Obamacare despite having introduced a virtually identical health care plan at the state level while Governor of Massachusetts.

In other words, if Joyce Murray becomes Liberal leader based on left-of-centre promises, she will only be able to drift so far to the right come 2015. Plus, she clinched the apparent support of Lloyd Axworthy, one of Canada’s best Foreign Affairs ministers, and a major force behind the International Criminal Court and the Ottawa Treaty to ban landmines. With friends like him, Murray must be doing something right.

All this being said, my soft endorsement of Joyce Murray for leadership of the Liberal Party of Canada (yes, that is pretty much what this post is about) is not a particularly enthusiastic one due to her checkered past, and I reserve the right to flip-flop over the next three months. Deborah Coyne, for instance, showed uncommon courage in uttering the terrifying words “carbon” and “tax” during yesterday’s debate. (I swear I saw Justin cross himself as she said it.)

So perhaps my mind is not yet fully made up.

The Folly of Balanced Budget Laws in BC

The news is out. Due to declining natural gas prices, the BC Liberal government is projecting a budget deficit of $1.14 billion this year — $173 million more than expected. And while the government still insists that it plans on finding enough savings to balance next year’s (election year) budget, I think it’s a safe bet to predict it will fail in that endeavour too. A 2013 deficit means it will have to amend its own balanced budget law for the third time since 2009 — a pattern we have grown achingly familiar with here in British Columbia.

A little history. In 1991, BC’s Social Credit government introduced the province’s — and the country’s — first balanced budget legislation. Later that year, there was an election, and the victorious NDP repealed the law. The government ran deficits for several years. During their second term, however, the New Democrats decided to take a stab at fiscal responsibility and passed a balanced budget law of their own that set a 2004 deadline for ending deficits. To everyone’s surprise (largely due to greater-than-expected energy exports), the NDP passed a pair of surplus budgets well ahead of schedule by the end of its stint in government.

Shortly thereafter, in 2001, the New Democrats suffered a crushing defeat at the polls courtesy of the Liberal Party — elected on a platform of massive tax cuts. The Liberals repealed the NDP’s balanced budget law so as not to impede the fulfillment of their election promises, and managed to turn a record-breaking surplus into a series of record-breaking deficits. In place of the previous legislation, they passed their own law requiring a return to balanced budgets by 2004 — the same deadline originally put in place by the NDP.

The Liberals met their deadline and chugged along happily in the black for several years, until the financial crisis hit. In 2009, they realized that they could not realistically deliver a balanced budget in the midst of the worst global recession since the 1930s, so they amended their own legislation to allow themselves two years of deficit spending. Later that year (after an election), they amended the law yet again to increase their deficit window by an additional two years.

And that more or less brings us up to the present, with the Liberals’ self-imposed four-year window closing fast.

Any observer of BC politics in full possession of the faculty of memory will rightly ask: what is the point of laws requiring governments to balance their budgets if they simply repeal or amend them whenever convenient? How is this any different from traditional fiscal policy without such laws?

Perhaps we must recognize that there is no shortcut to fiscal enlightenment. At their best, balanced budget laws showcase the self-serving hypocrisy of politicians from across the spectrum. At their worst, they can jeopardize vital social programs and transform recessions into depressions. Governments need the flexibility to occasionally run deficits. Making them jump through legislative hoops to do so serves no purpose.

It is up to us, the electorate, to define the confines of this fiscal flexibility. Not by demanding that overly simplistic and easily circumvented rules be drafted, but by educating ourselves on the context dependence of fiscal and economic policy — i.e. when it is and is not appropriate to run deficits — and voting accordingly. There is no easy way of going about it. With fiscal policy, as with everything else, we are responsible for holding our leaders accountable.

So if, as I suspect, the Liberal government fails to balance its budget on target next year, let us pray that it mercifully, once and for all, puts a bullet in BC’s distracting two-decade experiment with balanced budget legislation.

Quebection Projection

Apparently I haven’t learned my lesson since predicting a Peggy Nash victory in this year’s NDP leadership race. I may not have the statistical wherewithal or ear-to-the-ground perspicacity of an Eric Grenier, but I cannot resist the peculiar temptation — that siren song that has marked the downfall of politicos far greater than I — of making a forecast. Without further ado, here is what I think will happen in tomorrow’s provincial election in Quebec:

The Parti Quebecois will win a minority government. A relatively large minority — perhaps close enough to majority territory that Quebec solidaire’s two or so seats could help them fashion a workable coalition.

The Liberals, meanwhile, will make Official Opposition. Notwithstanding their second-place finish in seats, however, they will be relegated to third place in the popular vote at the hands of the upstart Coalition Avenir Quebec. Furthermore, Premier Charest will fail to carry his own riding.

Finally, Option nationale and my beloved Greens (despite my inexplicably unheeded endorsement) will win zero seats each. Or between them, I suppose.

Prove me wrong, Quebec. I dare you.

Update 4/9/2012: Quebec has proven me wrong. But only a little. By my count, I made eight predictions in the above post, two of which turned out wrong. Could have been much worse. Loyal readers of this blog are encouraged to identify and list all eight of my predictions in the comments section below. All who do so correctly will be rewarded with a limerick composed by yours truly.