Electricity rate increase is 'hidden tax' — Macdonald
March 5, 2010 by Norm Macdonald
Filed under BC news, Business, Government
29 per cent BC Hydro rate increase a hidden tax on consumers: Macdonald.
Tuesday’s BC Liberal budget contains an unfair and hidden tax on consumers by forcing at 29 per cent increase on BC Hydro ratepayers, says Columbia River – Revelstoke MLA Norm Macdonald.
“The BC Liberals have found a new way to tax the average citizen that they hope you will never notice,” said Macdonald. “Buried deep in this week’s provincial budget is a requirement for BC Hydro, a crown corporation, to provide an extra $254 million to government this year alone, and the only way for BC Hyrdo to do that is to increase hydro rates.”
The provincial government’s three year fiscal plan calls for BC Hydro to increase electricity rates by 9.11 per cent this year, 12.92 per cent in 2011, and 4.81 per cent in 2012.
“The revenue generated through the rate increase will flow through BC Hydro directly into the Province’s general revenue; that’s a tax pure and simple.”
And it is a tax that will hit people on fixed incomes the hardest while many large industrial hydro users are exempt from rate increases through Heritage Rate contracts.
“This is just another example of this government’s plan to shift the tax burden away from those who can most afford to pay onto middle and low income British Columbians.”
Victoria
March 5, 2010
Norm Macdonald MLA
Columbia River – Revelstoke
Norm has almost got it right as to hydro costs.
We here in British Columbia have had one of the lowest tax and hydro regimes in Canada for many many years. As a result, we tend to be prolific with our use of electricity and our use of water. BC and the Kootenays particularly are some of the worst for water usage in Canada.
Unfortunately, Hydro and all the governments since WAC Bennett who was instrumental in establishing most of our current dams, have not kept our facilities up to snuff and as a consequence, Hydro has to put in $ 2,000,000,000 plus per year for the next five years to bring our dams and power lines up to decent standards.
I guess that takes money. Where would Norm and company choose to find that money?? Borrow again from the big banks ?? Borrow from our kids and grand kids from whom the NDP did while in power ??
Or is it better that the users pay for their own use.
I would love to hear how Norm and company are planning on funding these upgrades necessary in the province. Or is Norm and company looking to let that infrastructure fall apart so that we have brown outs in his home town and throughout the Kootenay’s.
What is the solution to this infrastructure deficit. We could always conserve. But we haven’t done that yet inspite of so many agencies saying we should. We could build more and smaller dams, We could build wind farms and bio generators and we could build big dams.
Strange, but the BC Liberals have been already looking at all of these options for a number of years and have brought a number of alternative energy sources. So what is left for Norm to suggest. I would be interested to know.
David R Pacey
BC Liberal President
Columbia River Revelstoke
BC Hydro is being required by the BC Liberals to increase the level of profits that will be passed over to the provincial government as a way of dealing with the massive deficit.
This 29% increase IS NOT to fund infrastructure improvements. The increase is required to meet the BC Liberals’ need for revenue.
The money comes from taxpayers, passes through BC Hydro’s hands and is turned over to the government at a level mandated by the province. That’s the very definition of a tax, isn’t it?
Yes, the financial trail does sound dogie does it not? But truely, it would appear to be just that, a methodology for streaming of those funds.
Does the $ 2 billion plus per year that is planned for improvement insertion into the dams and infrastructure over the next five years to upgrade our electicity demands and needs sound dogey? Who cares how the improvements moneys are spent or collected?
Realistically, we spend far too much time with our electricity meters spinning wildly and consuming. Exortations by hydro, our municipal governements and the provincial governments over the last 10 to 15 years to turn down the heat in homes, turn off the lights in homes – conserve conserve and conserve some more, has not worked.
PLus, our population seems to keep increasing. I guess that comes from too low levels of taxes, hydro costs and water costs in the province.
Should all of those taxes be increased to compensate for our depleting of the water systems and electricity pools? Should we stop having the lowest taxes in Canada for both personal and corporate taxes so that we can stop having jobs and money? Should we do all of that and increase our EI benefits and welfare just so we can increase our hydro use and water use and not fix the infrastructure no matter what financial stream?
Shud we go back to an empty Columbia Valley with every one wanting a job has left town due to zero work available? At least then housing costs will be way down but then, but since nobody has any money and has not saved but only used their credit cards and LOC’s to increase their debt, then we can dig our financial hole deeper and deeper and then crawl into it and pull the dirt down on our selves.? Oops, the NDP did that while in power a few years back. Sorry.
Is that the alternative? The NDP sure has not come up with anything that closely resembles an alternative in spite of Norm’s cute words.
David R Pacey