Monday, October 10, 2011

A tale of two billion five hundred and fifty five million misspent dollars


For the past few days now I have been trying to find out what the average cost would be to staff, provide equipment, and maintain, etc the average hospital operating room in British Columbia.   I haven't been able to get an answer, but I have spent a few hours on Google Search trying.

So why, you ask, was I trying to find this out??  Well I happen to be one of those people in BC who is concerned with the debt being racked up by successive Liberal governments in our province.  Most people, I believe, have no idea what our debt is, but that information is actually quite easy to find. 

For example, there is the BC governments Fiscal Plan (2011/12 to 2013/14), which was presented to the legislature on May 3rd, 2011.  At that time, here is what Christy Clark and our BC Liberal government estimated the provincial debt will be this year ... and over the next 2 budget years.


                                                    Budget Estimates
Provincial debt:                        2011/12                  2012/13            2012/14
Direct operating debt …………         8,763                      9,267                  8,599
Taxpayer-supported debt …        36,816                    39,162                 40,500
Self-supported debt ……………      16,271                    18,060                 19,505
Total debt (in billions)          $53,437 (billion)    57,572                 60,355


Nearly 53 and a half billion in debt this year ... 57 and a half billion next year ... and an estimated total debt of 60 billion two years from now.  That's a lot of money, and trying to get a concept of what billions of dollars are, is not that easy.  We can make it easier to comprehend however, by looking at what it costs to service those billions of dollars of debt.  That is, the cost of the interest payment being made on those BILLIONS of dollars. 


On February 22nd, 2010 Maureen Bader, who was then working for the Taxpayers Federation presented this information:
Is B.C. also taking a ride on the Titanic? Taxpayers now spend $7 million dollars per day to fund the debt, and that will go up to $8 million per day in 2011. This is money that could otherwise be spent on healthcare, education, or better yet, tax cuts. But no, it goes to bondholders to pay the interest on the debt. Interest rates in Canada are expected to rise later in 2010, which will send debt servicing costs even higher, meaning more money for bondholders and less money for health care and education.

SEVEN MILLION DOLLARS A DAY!!!  Not to pay down or make a dent in this continually rising  pile of debt ... no that 7 million is what it costs each and every day just to pay the interest costs.  Again how can we equate this to something we can understand??  Well let's try this.

This year the BC government will spend an average of $3,544 on each of us for health care, the second lowest in Canada as of a report in 2010.  With an estimated population of 4.5 million people in the province, there's another $567, from the annual interest payments on the debt, that could be put into better health care for each person.  An additional $567 per year invested for each person in British Columbia would put us on a par with the governments of Alberta, Saskatchewan, and Manitoba.  That is money that could for example be used to open and staff more hospital operating rooms and reduce surgery wait times.

In November of 2010, the Child Poverty Report Card showed there were 121,000 children living in families that were considered poor.  Think of how children could benefit if as little as one days $7 million dollar interest payment (rather than being paid to foreign countries, international and domestic banks, and pension funds) was instead used to provide each child with $57.85 towards this years winter outerwear ... or perhaps fresh fruit ... fresh milk ... fresh vegetables?

In 2010 / 11 there were 650 thousand students in BC in K to 12 classrooms, and the government investment, in the education ministry, for each of those students was $8,301. 

Each days interest paid on government debt (7 million dollars), would add another $10.77 a day per child towards their education (200 days = $2,200 a year per student). Each days $7 million dollar interest payment could also provide an additional 116 teachers a yeat in BC classroms (based a average salary of $60,000 per year per teacher).

And what about additional funds for school libraries??

According to the BC Teacher Librarians, the average budget allocation for school libraries in 2008 /09 was $5,515.88 --- which for the provinces 1,600 schools would equal $9 million.  We could double the entire budget for libraries in BC schools for what it costs to service the provinces debt for 1.28 days.

Staying with education for a moment, how many rural schools (usually the centre of most small community) could have stayed open, rather than being shuttered by the Liberal government?

Independent Cariboo MLA Bob Simpson said the following on November 26, 2006:
By shutting down these schools, by undermining the ability of rural school districts to keep rural remote schools open, Minister Bond is also potentially killing any chance that rural communities, like Likely, can continue to grow, let alone maintain their existing population

But remember, that’s not just happening in communities like Likely in the Cariboo; it's also happening in communities close to Kamloops … communities like Clearwater, Logan Lake, Savona, and Chase.

There is so much that could be done with that money --- that 7 million dollars a day --- rather than seeing it go to foreign banks.

For example, BC Community Living has over 2,800 people waiting for services that they do not have funds for ... there's children sitting on waiting lists for surgeries at Children's Hospital ... playgrounds need new equipment ... and on and on the lists goes.

Instead of being used for the betterment of the people of BC, that money goes to foreign governments ... foreign banks and domestic banks ... and others.  I ask you … where would you rather see our government investing an extra 2 billion five hundred and fifty five million dollars each year ($7 million per day times 365 days)? 

More classrooms and hospitals … assistance to making life easier for the provinces seniors ... construction of new highways ... more sheriffs, court workers and judges so there are not long delays in court cases ... an accessible ferry system that is affordable to all British Columbians … that’s where that $7 million dollars a day should be going.

I am happy however that there is now an option to the BC Liberals ... and to the NDP.  Change is coming with John Cummins and the BC Conservatives.

I'm Alan Forseth in Kamloops ... with the thoughts of one conservative on this round ball we call planet earth.

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