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WELCOME BACK TO BC POLITICS

What's just plain weird about the past month is how a fiscally responsible, free enterprise government, previously with a plan and steady hand on the tiller, has gone completely off the rails.

It's very clear that the HST was planned long before the election. So their persistence in claiming otherwise has blown their credibility and actually hurt public acceptance of the HST.

Their claim to be leaders in green initatives has been damaged by canceling the LiveSmart BC renovation program with no notice to contractors or their customers starting projects.

The Premier's Five "Great Goals" from his last term ranked education #1, yet the Premier's Excellence Awards were canceled which provided scholarships for outstanding high school students.

The government's claim to be behind the private sector took a big hit when the Tourism BC board was replaced with career bureaucrats, claiming government employees would be more efficient.

It's all very strange. Clear goals and confidence replaced by bungling mismanagement and a sense of public betrayal.

Just when we thought stability had perhaps taken root....welcome back to BC politics.

THRONE SPEECH ONLINE

The BC Government's Throne Speech outlining their vision for the future is online here.

Truth be told, it's more Premier Campbell's HST version than a BC vision. Plus there are a few token efforts - ban cellphone use while driving, hold the line on govt wage increases, review crown agencies...

The interesting stuff is how they plan to tackle First Nations land claims, and implement an affordable housing initiative in the most expensive city in Canada - Vancouver.

Sounds like they'll be putting more of our money where their mouth is.

WAS BC "OTHER PROVINCE" IN MARCH?

A March 30 news story on www.canada.com reveals Canada's Finance Minister Jim Flaherty says "other provinces" had approached him to harmonize the federal and provincial sales taxes.

The only provinces without the HST were BC, Manitoba, Saskatchewan, and PEI.

When contacted by reporters, Manitoba said they had not approached the feds. Saskatchewan Premier Brad Wall had opposed the HST, but said if things changed, he would open up the issue again for debate. P.E.I. Treasurer Wesley Sheridan could not be reached.

B.C. Finance Minister Colin Hansen declined to comment.

Hansen recently denied the HST was discussed with Ottawa until after the election in May. Yet Flaherty said in March that discussions were underway with "other provinces."

BC is the only province of the four that has announced the HST and signed a memorandum of understanding with Flaherty since March.

Hanson was contacted by the media in March and asked specifically about discussions with Flaherty regarding the HST. So he must have been aware of Flaherty's comments and that this was an issue. Finance Minister Colin Hansen did not deny it. He chose not to comment and avoided the HST becoming an election issue.

Only Flaherty knows for sure, but the evidence indicates "other provinces" discussing the HST in March included British Columbia. In fact, BC may have been the only province.

Since the BC deal, Flaherty has offered cash as an incentive to the remaining three provinces, but none have accepted.

In light of this, any rational person would conclude BC was engaged in HST discussions in March with the federal government. BC's Finance Minister was certainly aware of it, but elected to keep it low profile...to get elected.

TOP PERFORMERS WON'T JOIN BC GOVERNMENT

Kevin Walker, the former vice-chair of Tourism B.C. says some of the agency's top performers will likely go to competing agencies rather than be absorbed by the BC government's Ministry of Tourism.

"I would think a good many of them will be examining other opportunities," said Walker. He says many are concerned the government's move is "a step back into the dark ages and possibly into a political environment that will not allow them to fully display their talent."

That is the truth of it. Creative, capable people don't normally work for government, and if they do, they don't last long.

Genuine performance measures, goal-setting, focus, reward for achievment, and the concept of merit are all missing from government organizations. Politics is rampant, so, Keep your head down and cover your butt!, is the mantra of BC government employees.

BC's Finance Minister Colin Hansen says the province is down $3 billion, so Premier Campbell's solution is to dump Tourism BC's top performers bringing cash to the province, and replace the CEO with a career bureaucrat.

No wonder they're $3 billion in the red.

DOCTORS OFFER SOLUTION TO SOARING HEALTH COSTS

This week, Canadian Medical Association delegates voted to support private health care for patients not reasonably accomodated by the Canada's public health care system.

Until now, the association strongly supported only public health care. But the CMA says waiting lists are a serious problem requiring relief from the private sector. Some doctors expressed little faith in Canada's "monopoly system" to address our increasing senior population.

So while Premier Campbell and Prime Minister Stephen Harper pick the pockets of taxpayers, the CMA is showing the way to address burgeoning health care costs.

Why not take the money of Canadians who WANT to pay for health services rather than keep ratcheting up taxes on an angry public? Patients are traveling to the U.S., Europe and India for treatment anyway.

Private and public health care working side by side? We already have the model working in the education system.

Time for Campbell, Hansen, Harper, and the rest of Canada's political "leaders" to give their collective heads a shake.

HARD DECISION BY CAMPBELL MAY LEAD TO EASY DECISION FOR VOTERS

Want to see a stressed out Premier? Check out this interview on Global News at www.globaltvbc.com. Premier Campbell defends the HST as part of makng hard decisions. But he's clearly not comfortable with the tsunami of opposition from every political stripe. He asks Global to give airtime to industry supporters, but they have been deafening in their silence. Mining, forestry, BC Retail Council are either offering minor token support or keeping quiet. They know British Columbians are furious and will take out their wrath on any business foolish enough to support this blatant cash grab, which was clearly planned but denied before the election. The few supporters of the HST that have gone public, have also disavowed any support for the way it was done.

And that is Campbell's problem. Any merits of the HST are lost in the deceitful way it was introduced.

The HST is an anchor around the Liberal Party's neck, and they have no option but to lose it. The Premier hesitated when asked if he would consider this, which indicates it is being discussed behind closed doors. There are a lot of Liberal MLA's who would like it deep-sixed or they risk battling recall in 18 months and very possibly being wiped out at the next election.

That is Campbell's problem, he doesn't know how to say "Sorry, I goofed." Nobody expects perfection, because everyone makes mistakes. Former populist Calgary Mayor and Alberta Premier Ralph Klein knew this and was a master of the artful back-track in the face of massive public opposition. The public forgave and forgot. Time for Campbell and Colin Hansen to take a page from Klein's handbook.

Otherwise Campbell's hard decision now will result in an easy decision for the voters...at election time.

VAN-TASTIC!

Former Socred Premier Bill Vander Zalm is leading a campaign to stop the HST. He will try to force a referendum on the issue by soliciting the support of 10% of BC's registered voters in all 85 constituencies. Vander Zalm and his constituency captains will launch the campaign on Sept 19 and must collect the signatures within 90 days.

NEW HOCKEY LOGO OVERDUE

Canada's new hockey logo finally represents Canadians and not a labour union. That's right, the logo representing Canada for years was an amalgamation of the maple leaf and the National Hockey League Players Association logo. Change was long overdue.

TOURISM BC CEO AND BOARD GIVEN PERMANENT VACATION

Tourism Minister Kevin Kreuger gave the axe to Tourism BC's CEO and Board of Directors, replacing them with a bureaucrat whose tourism or even business background is unknown, and a government-appointed Advisory Council. The reason given was for the purpose of "reducing administrative costs and better co-ordinating all of the Province’s marketing initiatives."

In other words, they're changing from a private sector-style organization to a government bureaucracy for the purpose of maximizing efficiency.

That ranks up there with the Finance Minister's claim HST wasn't on the radar before the election.

WHOOPS....OUTTA DOUGH

Ever walk into a Starbucks, dig in your pocket, and discover you don't quite have enough for a coffee? Well, you're not alone. Due to lack of funds, the BC government cancelled two major programs - their leaky condo loan program and their rebate program for energy efficient upgrades called LiveSmart BC. They did it with virtually no notice.

The reason given was they spent the programs' full allocation. LiveSmart was a $60 million program that was supposed to last 3 years and lasted 15 months. The government discovered just the other day that all the funds have been spent.

Whoops....outta dough. These are the same people claiming to have a total handle on the impact of the HST.

THE CANADIANIZATION OF AMERICA?

Many Canadians worry about being influenced by American television, music, sports, etc. However there is recent evidence to indicate the reverse may be true.

Americans are starting to mimick Canadian behaviour, as evidenced by New Yorkers' infatuation with maple donuts, introduced recently by Tim Horton's.

The popular Canadian fast food franchise is opening 12 New York outlets, replacing Dunkin' Donuts. New Yorkers have developed a special affection for the donuts and ice cappuccinos.

In addition, the U.S. is contemplating a universal health care system, modeled after Canadian medicare, to augment American private care.

We asked one American expert on U.S. culture if this indicates the Canadianization of America.

He quickly responded, "No way! Take off, eh? What a hoser!"

GOVERNING IS MORE THAN JUST NUMBERS

The Liberal government will call back the legislature on August 25th with a majority. The problem is the HST debacle will overshadow everything they try to do. Their handling of the HST has severely damaged their credibility, even among their own supporters.

They have the superior numbers, but right now, they lack the moral authority to govern, just as former NDP Premier Glen Clark lacked the moral authority to govern after the "fudge-it budget."

Taxation is a fundamental issue in our democratic system. The Liberals must act now to restore their credibility by either scrapping the HST or by making sufficient changes to satisfy the voters.

Otherwise their superior numbers won't matter. They will have no moral right to occupy the government side of the legislature.

CLARK CALLS CAMPBELL "SNEAKY"

Former Liberal Deputy Premier Christy Clark has accused Premier Gordon Campbell of employing "sneaky" tactics in announcing the HST.

"It was quite clear the government was going to be faced with this decision in March when Ontario adopted it, and they never thought to mention it to the voting public. I mean, it's just sneaky all around and I don't think that sits well with people," Clark said.

The BC government is being hammered by Liberals, traditional business supporters, and opposition alike. It is a massive political disaster not seen since the days of former NDP Premier Glen Clark and his "fudge-it budget."

VANCITY CREDIT UNION SHOWS THE WAY...

VanCity is backing off their decision to pressure customers to agree to higher interest rates on their lines of credit. When the increase was first announced, credit union members expressed outrage not unlike the public's HST backlash being experienced by the BC government.

VanCity's CEO Tamara Vrooman said members made it clear the move was "too much, too fast." VanCity has decided to explore alternatives to meet their financial goals.

The BC government should learn from VanCity's example, back off their HST proposal and explore alternatives.

Otherwise, BC voters will be exploring alternatives at election time.

INCREDIBLE DENIABILITY

A big part of the HST controversy is "credible deniability." Premier Campbell and Finance Minister Colin Hansen both claim the HST was not on their radar prior to the election. But there is no question that Hansen's bureaucrats were studying Ontario's HST deal when it was announced in March. That is what they are paid to do.

Ontario is receiving $4 billion from the feds to implement the HST. BC's Finance bureaucrats would have been searching for money to address BC's increasing deficit. Also, Hansen absolutely knew about the Ontario deal, and knew he had a looming deficit to deal with. He would have to be stupid to think his bureaucrats weren't analyzing the deal and crunching the numbers.

Senior bureaucats, especially those appointed via Orders in Council, (political appointments) understand their job is to create "credible deniability" for the Minister regarding controversial issues. He left it to his senior staff to review all fiscal options, address BC's deficit, while Hansen and the Liberals fought the election, claiming HST was not on the radar.

It's all done with a wink and a nod, and creating "credible deniability." But this time it's just not credible. And no amount of spin-doctoring is going to convince the public otherwise. Does Hansen really believe his Finance staff wasn't analyzing the HST deal for BC?

Hansen's not stupid and neither are the voters.

GOVT SPIN DOCTORS BOTCH HST PROCEDURE

The BC government's Public Affairs Bureau has laid off eight people allegedly as a cost-cutting measure. But one has got to wonder if someone is taking the fall for the HST disaster. The Public Affairs Bureau is in charge of communications, and the HST announcement has been a massive PR failure by every measure. For example:

1. The public does not believe the HST is beneficial for BC, nor will it increase employment, nor will savings from embedded PST be passed on to consumers;

2. The public believes the government planned the HST before the election and is denying it;

3. Many business organizations and traditional Liberal supporters are ticked at the lack of consultation prior to the election and now after the election;

4. The media are having a field day with the groundswell of public opposition to the HST;

5. The NDP are also having a field day and can credibly accuse the Premier, Finance Minister and Liberal caucus of deceit and arrogance.

This HST announcement should be taught in communications classes as an example of EXACTLY WHAT NOT TO DO. Whoever planned and implemented the HST strategy has a lot to answer for...and that's ok because there's a lot of govt spin doctors to do the answering - about 200 remain employed by the Public Affairs Bureau.

WHAT ARE THE ODDS?

What are the odds that an equation arriving at revenue neutrality requires an HST portion of 7% for the BC government?

The BC govenment claims it is not making a penny more from the HST than the existing PST revenue. And coincidentally the number required to achieve that revenue neutrality is 7%, the existing PST charge.

Not 3% or 6% or even 8%. Revenue neutrality is achieved at 7%.

What are the odds?

A helluva lot less than 7%.

NDP CLAIM 10,000 NAMES ON PETITION

The NDP have posted a petition opposing the HST on their website at www.bcndp.ca/hstpetition. NDP Leader Carole James claims her petition has more than 10,000 names, accumulated in a scant six days.

James says, “Many more have signed hard copies of the petition at rallies and meetings around the province and we haven’t had a chance to count those signatures yet.”

The petition is a clever way to drive disenchanted voters of all political stripes to the NDP website, while James takes advantage of a golden opportunity to score political points against her nemesis Premier Gordon Campbell.

James has waited six years for a legitimate Liberal debacle to exploit, and the government's handling of the HST is just that debacle.

PREMIER'S LEGACY AT STAKE

Former NDP Premier Glen Clark was branded a liar over his infamous "Fudge-it Budget." He went into the 1996 election claiming a budget surplus, and right after being re-elected admitted to a deficit. The public had been hoodwinked, plain and simple. They never forgot, and Clark's reputation was irrevocably trashed.

It was his defining moment and it sealed his legacy. Of course, Gordon Campbell was one of those yelling the loudest after that fisaco, and rightfully so. You would think Campbell would have learned not to fall into a similar trap.

But the HST fisaco is looking like deja vu all over again. During the May election, Premier Campbell insisted the HST was not being considered by his government, and virtually everyone believed him - voters, restaurant owners, retailers, realtors, builders. Everyone was aware the anticipated deficit was probably going to be more than the estimate announced, but the voters could live with it because the government admitted a deficit and had managed the economy well.

However, when the Premer and Finance Minister Colin Hansen announced the HST last week, they blew their credibility. Nobody believes this wasn't being considered prior to the election, and it very much looks like they are doing it for the $1.6 billion offered by the feds to help address BC's deficit.

And that is the irony. The voters are fine with a deficit in difficult times, as long as it is being properly managed. What they are not fine with is being blatantly lied to by their leader.

The Premier thought he was protecting his credibility regarding the budget, but in fact, he trashed his credibility by deceiving the voters.

Glen Clark and Gordon Campbell are very different people. Clark ran one of the most scandal-ridden, incompetent administrations in the history of BC politics. Campbell's administration has been very competent and virtually scandal-free, notwithstanding the BC Rail issue. We'll see how that plays out.

Glen Clark's nickname - "Premier Liar" was well-earned. Up until now, Gordon Campbell has not deserved that moniker. But that may change if he does not re-think this HST fiasco.

Campbell's reputation and legacy is very much at stake. The HST controversy is his defining moment, just as the "Fudge-it Budget" was Glen Clark's.