REMINDER to BC Finance Minister Mike de Jong: Moody's examines budget projections ... BUT do not verify them as balanced ... or not balanced

'Let me make this perfectly clear ...'

So BC Liberal Finance Minister Mike de Jong says that Moody's assessment concludes that BC's debt remains manageable during the CURRENT low interest-rate environment. 

Lets take a look at what Jordan Bateman (British Columbia Director, Canadian TaxpayersFederation) has had to say however ... and I quote:
"By the end of the 2012-13 budget year, it will hit $57.6 billion. And in 2015, it will rise to $66.4 billion --DESPITE two years of planned surplus budgets."

So what happens WHEN (not if) interest rates go higher?

Mike de Jong also stated today that BC taxpayers 'will pay lower interest rates' ... but NOTHING could be further from the truth.

We will continue to pay the 'going rate'! 

That means the resources of government will be reduced, by nearly $7 million EVERY DAY, for debt service costs (interest the government pays on roughly $60 billion in debt).

Again ... that's $7 million EVERY DAY just to make the interest payments on that debt. 

That's $7 million EVERY DAY that could and should be going to provide from line services in health, education, senior care and more.

And that interest payment ($7 million a day) is before this BC Liberal government even begins to start reducing the debt; something which they have been unable to do year after year.  And just to be clear, the Liberal government of BC has not even had a balanced budget since 2006! 

I think perhaps it would be wise to mention two more things ... one from a Ministry of Finance news release sent out today ... and the other from a CBC "Reality Check" with regards to what Moody's really says.

First , the news release from the Ministry of Finance makes the claim that:
"Moody’s Aaa rating confirmation follows the first quarterly report, issued Sept. 10, 2013, which confirmed that B.C. is on track to balance the 2013-14 budget."

Now to the CBC Reality Check which quoted Helmut Pastrick, the chief economist of Central One Credit Union who said:
" ... Moody's and other credit rating agencies examine budget projections, but do not verify them as balanced or not balanced."

So Mike ... but there's no thanks coming your way from me ... only wonderings why you continue to misrepresent the truth of BC finances (debt and interest), how credit rating agencies work, and how much we really pay for the overspending by consecutive governments from the NDP, right down through the BC Liberals.

I'm Alan Forseth in Kamloops, with the thoughts of one conservative.

That is NOT something Christy Clark will do -- it is however, something that Sean Upshaw is firmly committed to!

Where has he been you say (well some will be glad I've been away for awhile), but it has been a busy few weeks, and a few changes in where things are at.  

Regardless, with only a couple of days until the Westside - Kelowna by-election (voting takes place on Wednesday), I wanted to be sure I had at least one post online before hand.

Let me start by saying sometimes I get accused of being negative, when it comes to politics in BC.  Personally, I like to think that in reality that I point out areas of concern, and where improvement might be needed here in our province.

BC Conservative candidate Sean Upshaw
meets with voter on the streets of Westside
Kelowna to talk issues and concerns.

That said ... through the general election in BC, and having spent Saturday with campaign volunteers for BC Conservative candidate Sean Upshaw, I know that  people at the 'ground' level, no matter what party they are affiliated with, are sincere in wishing BC to be a better place to live, work, and raise a family.

I had a chance to say hello to a couple of workers for both the NDP and the BC Liberals while in Kelowna that day, and that just reaffirmed this.

So with that in mind, I'd like to send out 'Kudo's' to all who give of their time and energy. 

Meantime, BC Conservative Party candidate Sean Upshaw, in the Westside Kelowna by-election, will continue right up to election day hitting the doors steps of the riding. Sean is a 'local' candidate that wants to serve the people of the Kelowna, and he knows what that means ... meeting people wherever they are ... whether on the street, in a coffee shop, buying groceries, or on the doorstep. 

He wants to be a true representative to the people of his community, which is why he continually reminds himself that the word 'serv'e, is in Conservative. 

The BC Provincial election is over, the Liberals won a majority, and there is NO need to fear the BC NDP coming to power. 

Christy Clark lost her own riding -- and it is obvious that the people of Vancouver Point Grey were not at all pleased with how she 'represented' them.  They gave her a chance the first time in a by-election ... they saw how she served them ... and they chose to elect someone else they felt would better do the job. 

Tell the BC Liberal's, and the New Democrats, enough is enough!

Today we have a guest commentary from BC Conservative Party member, and Kamloops South nominee candidate, Peter Sharp:

One of the stories in today's edition of the Kamloops Daily News had the following headline; "MLA expense reports lack detail, taxpayers’ federation says -- 'It’s a virtually worthless document'

Expense reports showing how much B.C.’s provincial politicians spend on travel are worthless, a director of the Canadian Taxpayers’ Federation says.

“It’s flawed in many ways,” Jordan Bateman said Friday.



BC Conservative Party nominee
candidate Peter Sharp

The reports don’t include a breakdown of ministers’ expenses, doesn’t give context on the number of trips they actually took or where they went, nor does it include who travels with them, although MLAs are allowed to take someone on 12 trips a year.

“It’s a virtually worthless document,” he said.



While the BC Liberal government crows about what a wonderful job they are doing with our economy -- the BC Taxpayers says BC Liberals and NDP MLA's are being completely unaccountable with our tax dollars. 

This is just ONE of the reasons why I have chosen to seek the nomination to run as the BC Conservative candidate in Kamloops South Thompson. Here are the FIRST two things the party I support believes in:

The BC Conservative Party is founded on and will be guided in its policy formation by the following principles:

1) A belief in clearly defined public policies and programs that are affordable and effective and for which delivery is accountable to all the people of British Columbia.

2) A belief in managing the government to the highest standards of integrity and transparency and British Columbians are entitled to full knowledge of services rendered and their costs.


We have endured two decades of NDP and BC Liberal governments. 

Finally, Christy Clark has said something that I can agree with! It is possible to ... "predict future behaviour based on your previous record.”

Given Premier Christy Clark's comments, I predict
rising taxes and fees ... and ever increasing debt

The following comments are from an opinion piece, in the Victoria Times Colonist, which was written by Les Leyne; "Leaders differ on balancing the budget"

NDP Leader Adrian Dix said ... there’s no way it will be balanced. Premier Christy Clark said it most certainly will ...

Even while continuing the advertising blitz, the government announced it is currently a half-billion dollars off its budget

Clark said ... “We are going to make sure we are the lowest tax jurisdiction in the country for personal income taxes ... that is the most important way government keeps life affordable for people.”

Although the running tally for the current year’s deficit is higher than expected, the plan is to erase it in a new budget next February.

Now ... here's another comment that our BC Liberal Premier Christy Clark made, and now probably wishes she hadn't, back in December of last year.  QUOTE: “It’s possible to predict future behaviour based on your previous record.”

Okay Christy ..., let's do a little research to see if in fact that comment, which YOU made, is indeed correct.

BC Ministry of Finance (Summary of Provincial Debt Report -- page #5)
* total BC debt 2001: $33,385,000,000 ($33.385 BILLION)

BC Ministry of Finance (Fiscal and Debt Summary) 2nd Quarter Report 2012 / 13 dated November 28th, 2012
* total estimated Provincial debt (March 2013): $56,356,000,000 ($56.35 BILLION)

BC Ministry of Finance (Budget & Fiscal Plan: 2012/13 - 2014/15 - page #5) -- government document is dated February 21st, 2012
* total estimated debt by 2014/15: $66,354,000,000 ($66.35 BILLION)

Will you look at that!  Christy Clark has finally said something that I can agree with! It is definitely possible to ... "predict future behaviour based on your previous record.” 

But what a dismal record that is for British Columbians here and now ... and those in the future who will be saddled with the results, and consequences, of that ever increasing debt.

Given their own track record, hardly a peep can be heard from the NDP

Yesterday, BC Conservative Party Leader John Cummins asked, “Why is it so difficult for the BC Liberals to be truthful about the province’s finances?”

He asked that after Finance Minister Mike de Jong released BC’s first quarterly report for the budget year 2012/13.

Is this the government plan --- 'we'll just write it off'

A media report from the BC Conservative Party also stated that:

Cummins noted that the BC Liberals have a long history of deception and deceit regarding British Columbia’s finances.

This history of deception however goes back a lot longer than the BC Liberals time in office, and as one person I know said; “sadly...most people just do not want to know.”

This is nothing new --- and nothing recent for that matter. 

Regrettably I found that to be true when I ran for the BC Reform Party in the 1996 provincial election ... and sadly nothing seems to have changed since then.

Too many people only want to hear the sky is 'blue', even if there's storm clouds roaring in, and howling winds right behind.

I’m going to toss some numbers out ( your eyes will now glaze over) on BC’s provincial debt.  These are numbers that I would guess no more than five or ten percent of the population are even aware of:

• when the NDP took power in '91 the provincial debt was $17.26 Billion
• when the BC Liberals took power in 2001 the provincial debt had hit $24.9 Billion
• by 2011 the Liberals had taken the debt to $45 Billion
• and for 2014/15 the Ministry of Finance has projected that provincial debt will exceed $66 BILLION

The facts are the facts Kevin, and I stand by what I have said

Retiring BC Liberal MLA
Kevin Krueger

I have spoken on numerous occasions about the rapidly rising debt being created by the BC Liberals … and their ongoing annual deficits.  These are not imaginings, they are fact, however retiring South Kamloops BC Liberal MLA Kevin Krueger disputes this; as he stated to me earlier today.

The following is the conversation we had on this … as well as comments he made regarding BC Conservative Party leader John Cummins, and the experience we will be presenting to the voters in next Mays general election 

Kevin Krueger:

NDP debt was credit card debt - borrowed to spend on their friends, and operating. That is very different from debt for capital items: roads, bridges, hospitals, universities, schools... as most people's mortgage debt enables them to live in, and pay for, their homes - but credit card debts are high interest and destructive.

Our free enterprise coalition has had the courage to build what British Columbians need - name one construction project you think was a bad choice? We have also created the conditions for a thriving economy and great revenues to pay those capital debts off. The rating agencies give us Triple A - the highest possible. You B.C. Conservatives have a lot to learn, to be taken seriously at the polls.

Kevin ... I cannot argue with good capital spending ... however wasteful everyday spending is what I cannot agree with -- that is the day to day spending that is creating a never ending annual deficit. That gets added to the also increasing debt and we have a future bubble that will have to burst at some point.

Call it what you will, but debt is debt ... and all of it has to be paid for eventually --- and all of it will have accumulated interest on it.

Over a year ago, when the debt was still in the mid $40 billion range, the Canadian Taxpayers Federation stated we were paying over $6 million EACH DAY just to pay the interest on that every increasing debt.

That's worse than someone who is making the minimum payment on their credit card -- at least they are slowly (very slowly) making a debt in the principle.

In this case however the debt continue to pile up every day --- and somewhere down the line the creditors will say, "Enough, no more, start paying down the principle"

Sorry Kevin, but with all due respect, I cannot accept this government has been fiscally responsible. There is nothing responsible about saddling future generations with a legacy that is a mountain of debt.

BC Lieutenant Governor responds in one day!

All I can say is WOW!  Yesterday I sent an email to the Lieutenant Governor of BC and I have received a reply in just one day. 

Last Spring / early summer I contacted my MLA’s office with regards to the HST and he never did get back to me.  I also tried the Ministry of Finance, and it took them 2 and a half months to send me a ‘cookie cutter’ response.

I have never had any kind of dealings with the office of the Lieutenant Governor before so I have nothing to compare this too – however I think it’s wonderful they responded that quickly.

I posted my question to the Lieutenant Govenor in a blog story earlier today entitled, What requirements are there for someone to be called / declared the Premier of BC?  If you are interested in the response I received then read on …  

Dear Mr. Forseth:

Your email of April 13, 2011, addressed to the Lieutenant Governor has been directed to me for attention and response.

Kevin Falcon, Christy Clark, and BC Liberals at odds with reality on HST

Taxpayers really the ones to cover
the cost of HST rebate cheques

Those who are paying the HST, should be asking who does it really impact?  In my reading, there seems to be some confusion between business, the BC government, and the Minister of Finance. 

On page #23 of a report prepared for the Business Council of BC, (CONSUMER IMPACTS OF BC’S HARMONIZED SALES TAX) it states, “In short, while BC’s HST does entail burdens for households except at lower incomes, this study has found those burdens to be far smaller than commonly believed.”

Of interest to taxpayers in BC however is a media release dated April 5^th, from the Ministry of Finance (011FIN0029-000341), which has the following direct quote from Finance Minister Kevin Falcon:

Prudent fiscal management? ...... "Horse Manure!"

Yesterday the Finance Minister, Colin Hansen brought down the provinces budget --- and in doing so he said:

“We’ve come through a seismic shift in the global economy and we are emerging much stronger than other places around the world.  Business and consumer confidence are growing.  We have a solid foundation for job creation, business development and improvements in health care, education and social services.  B.C.’s future looks bright.”

BC’s future looks bright???  If our future is looking so bright, then I for one would like to know why the provincial debt is headed for $60 BILLION dollars.  The “Honorable” Finance Minister, Colin Hansen, also stated that: 

“Budget 2011 stays the course, keeping the focus of protecting health care, education and social services as British Columbia moves towards balanced budgets beginning again in 2013.

Protecting health care, education, and social services???  Mr. Hansen, would you care to tell us what the interest payments alone are on a debt of $60 BILLION dollars??  Perhaps some of you are saying $60 BILLION dollars – come on Alan, you're making that up. 

If we get the government we deserve …

A question has been rolling around in my head for awhile now. and that is, if “we get the government that we deserve”, do we then “deserve the government we get”?

For example if I knowingly decide to vote and support a parties candidate because they promise me everything I want to hear, regardless of whether the taxpayers can afford it, then I guess we do get the government we deserve. 

Using a personal example, I would like to have a new Yamaha Stryker motorcycle but the cost is a little under 15 thousand dollars – so should I go out and “Charge It” and increase my debt load?   That’s exactly what government does when they spend money above what they receive in revenues.  Sometimes that’s good, however when we are being bought off with promises and things we want to hear, well that’s not so good.

Here’s something to consider regarding debt load.  In 2001 when the so-called fiscally responsible BC Liberal Party took over government, the provincial debt amounted to somewhere around 34 billion dollars.

In a News Release from the BC Government’s Ministry of Finance they indicated that the “… total provincial debt is forecast to be $47.8 billion in 2010 -11 …”.

Are you aware what percentage of each dollar in revenue, the government takes in, goes towards tax-payer supported debt service costs?  It’s 4.5%.  And that’s not being used towards payment of the debt itself, that’s just to pay the interest charges on the debt!