24 Hours Vancouver: B.C. ends child support ‘clawback’

Opponents were quick to point out shortcomings after B.C. Finance Minister Mike de Jong delivered his budget on Tuesday in the Victoria legislature – promising surpluses for the next three fiscal years.

 

De Jong said the current year, 2014/15, is already expected to deliver a $879-million surplus and government’s planned a $284-million surplus for the next year, and increasing amounts in the two years after that.

 

De Jong said a large portion of the extra money is to stave off unforeseen changes, such as the dramatic drop in oil prices.

 

He said because of this, any anticipated dollars coming from liquefied natural gas development in B.C. has not been included in the budget.

 

“While the pricing volatility we have seen in the energy sector certainly adds some challenges to those considering multi-billion-dollar investments in B.C., it also represents an opportunity for those proponents who understand and seek to take advantage of the inevitable cycles that characterize energy economics,” he said.

 

“What we won’t do is make budgetary assumptions until that first final investment decision has been taken.”

 

Carole James, New Democrat finance critic, said government gave more to the rich and neglected the poor and middle class.

 

“Government put only $5 million towards tax relief for the very lowest earners in British Columbia, but the wealthiest 2% saw an astounding $230 million in a tax break,” she told the legislature.

 

“So where are people paying? Budget 2015 shows medical premiums will go up another 4%, just as they did on Jan. 1. In fact, MSP premiums will have gone up 100%, or over $864, since the Liberals formed government in 2001.”

 

James also criticized the increasing Hydro and ICBC rates, and pointed out B.C. Ferries fares are increasing again in April while sailings have been cut.

 

But even the NDP applauded government’s elimination of the child support “clawback” that sees amounts deducted if parents also receive income assistance, saying that policy “never should have been there in the first place.”

 

“The credit for that goes entirely to the families who stepped forward and shared their stories. Some of them are here today, and we thank them for their courage for coming forward,” James said.

 

ACORN B.C., which has held demonstrations repeatedly to eliminate the clawback, called it a “huge victory.”

 

Child support payments will be exempt from income assistance calculations starting Sept. 1.

 

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Article by Michael Mui for 24 Hours Vancouver