In the legislature today the Minister of Finance introduced a motion to send a number of amendments to committee stage for Bill 45 – 2018: Budget Measures Implementation (Speculation and Vacancy Tax) Act. These amendments match the three amendments that I put on the order papers although they were drafted by independent legislative drafters. The reason why government needed to do this was to ensure that my amendments were not ruled out of order by the Clerk. Amendments can be ruled out of order if they incur a cost on government.

Below I reproduce (in text and video) my brief remarks in response to the Minister’s motion. I was inappropriately cut off by the Speaker. The motion was a debatable motion and I should have been given 30 minutes to address it. The speaker was reacting to Mike Farnworth, the BC NDP House Leader, who stood up and was gesticulating to me and the speaker that the the motion wasn’t debatable. He was wrong. But you can’t challenge a speaker’s ruling.

Text of Speech

A. Weaver: Just a few words briefly on this motion. I’m pleased, obviously, to rise and take my place in the debate on this. The motion to move the amendments to the speculation and vacancy tax act.

For procedural reasons, government had to table these amendments. You’ll see some amendments I put in on the order paper as well. But the amendments that government is tabling reflect the agreement that we were able to reach with government on this tax a few weeks ago. I’m pleased to be supporting moving them to committee today. These amendments do three things — the three things as promised. Again, on the order paper, you will see three amendments that I put in that are virtually identical. But for procedural reasons, government is introducing these amendments.

The first is that mayors from affected municipalities will be consulted annually by the Minister of Finance on how the tax is affecting their communities, with metrics that are being developed. Over the past number of months, I’ve consistently raised the need for local governments to have a more significant role in determining what happens in their communities. The annual review of the tax with mayors will give communities a clear channel to making the case, based on evidence, for how the tax should apply to their communities and whether they should be excluded.

The minister will also be required to report the results of the annual review to cabinet to make a decision on whether the tax should continue to be applied in each of the specified areas. While I would have preferred for local governments to have the ability to opt out automatically, this is a compromise position that I feel I can support and my colleagues can support as well.

The second amendment requires that revenue raised by the tax will be used for housing initiatives within the region it came from. This is also important — that local communities directly benefit from the tax raised so that it is not viewed as a tax grab by government that rolls the moneys into provincial coffers to be lost thereafter. There needs to be a clear impact on the communities because the justification for the speculation tax is, of course, that there’s an externality, a social cost, that we’re asking people in British Columbia and elsewhere to internalize through the application of the speculation and vacancy tax.

The third amendment equalizes rates for Canadians and British Columbians. It brings the rate for Canadians down from 1 percent to 0.5 percent. Now, this is a very big change. Back in the spring, when this tax first came out, it was 2 percent for other Canadians.

Here after many, many months of working with government to come to razor-focus this tax to exactly this intent and purposes, it’s very reassuring to see that the rate has come down to 0.5 percent.

I believe fundamentally that from a fairness perspective, we should not be penalizing Canadians by making them pay higher rates just because they happen to live in another province. We are one country. I feel that as one country, we need to treat our citizens equally across that country.

In addition to these amendments, government has made a number of small changes in the legislation that go a long way to limiting the unfair impacts of this tax on Canadian homeowners who aren’t speculators.

Since it was first introduced in the budget, I’ve been hearing scores of cases that I’ve been bringing to government over the past eight months from people who are not speculators and who should not be facing the tax, as well as other examples where the speculation tax shouldn’t apply.

Deputy Speaker: Thank you, Member.

A. Weaver: My understanding, hon. Speaker, is on a motion, I am able to deliver a full 30 minutes.

Deputy Speaker: Member, this is purely a procedural motion. This allows the amendments to be placed before the House for debate. Not at this time.

A. Weaver: Is this not a debatable motion, hon. Speaker?

Deputy Speaker: Not at this time. This is a motion to refer.

Motion approved.

Video of Speech