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Premier Clark on ‘Historic Debt Binge,’ Says Conservative Leader

Premier Clark on ‘Historic Debt Binge,’ Says Conservative Leader

‘Debt-free BC’ 2013 campaign promise called unrealistic, simplistic.

Premier Christy Clark won the provincial election in 2013 promising a “Debt-Free BC,” but an opponent now accuses her of overseeing a “historic debt binge” since coming to office.

Dan Brooks, who won back the BC Conservative Party leadership on Sept. 17 after stepping down earlier this year, said in a press release that last week’s first quarterly report shows the province’s total debt has grown by 45 per cent — $20.1 billion — under Clark.

Total provincial debt was around $45.2 billion when Clark took office in 2011 and has swollen to $65.3 billion, according to the quarterly report. It is projected to hit $71.9 billion in 2019.

The total debt includes accumulated operating deficits from past years as well as borrowing for any number of purposes, including building schools, hospitals, social housing and public transit. It also includes “self-supported debt” such as that carried by Crown corporations including BC Hydro.

Finance Minister Mike de Jong, commenting on the quarterly report, highlighted the operating surpluses that mean the province has stopped adding to the operating debt. He also pointed out that taxpayer-supported debt has been dropping when expressed as a percentage of the province’s Gross Domestic Product and is lower than in most provinces.

Brooks was unavailable Tuesday, but in the press release said: “From the moment she first took office in 2011, Christy Clark has been spending taxpayers’ dollars in a misguided, reckless manner… If somehow she is able to secure another four-year mandate in 2017, there can be little doubt that the BC Liberals will perceive it as permission to leave an even larger legacy of debt for future generations.”

…click on the above link to read the rest of the article…

As Housing Prices Soar, Finance Minister Is Well Invested

As Housing Prices Soar, Finance Minister Is Well Invested

Gov’t must be ‘careful about intervening,’ says Mike de Jong, who has a stake in several properties.

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Finance Minister Mike de Jong’s most recent financial disclosure shows he received rental income from seven investment properties. Photo: BC Gov’t Flickr.

Taking action to reduce housing prices in Vancouver could sap the equity people have built up in real estate, British Columbia Finance Minister Mike de Jong warned last year.

The hit from anything the provincial government might do to drop real estate prices in B.C. would be particularly painful for investors like de Jong, who has a personal ownership stake in seven investment properties in Abbotsford, an hour’s drive from Vancouver.

“You’ve got to be careful about intervening, about having the state intervene to try and regulate pricing, or depress pricing,” de Jong said last May as the #Don’tHave1Million campaign drew attention to the negative effects of high house prices in the region.

“Those who are expressing a concern, I think if you really assess what they are seeking, it is a reduction in the value of homes in Vancouver and that will have consequences for a lot of families,” de Jong said.

“If property values in Vancouver were to reduce by, let us say five per cent, that could easily translate into a reduction in equity for families that own homes in Vancouver of 60, 70 or $80,000,” he said.

“All I’m saying is you’ve got to be careful about how you use the tools and levers of taxation, and you have to be clear on what your objective is.”

If de Jong sounded more sympathetic to people who already own homes than to people trying to enter the market, it could be because like them he would be personally exposed to the pain that would come with dropping prices.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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