Back in 2016, I published a series of four blog posts exploring the notion of Basic Income.

In the first I provided an overview of the concept, the issues that we are facing today in BC, and the potential implications of a basic income policy. This was followed by a second post that examined the state of poverty in BC, including the social assistance programs available and how they can fail to help those most in need. It also explored how basic income could help to alleviate poverty in our province. The third post outlined the shift we are experiencing as a population away from long-term, full-time work with benefits, toward short-term, part-time, and contract-based work.

The series culminated in a final post that provided recommendations and a commitment to British Columbians. That commitment was that a BC Green government would introduce pilot projects that explored the costs and benefits of basic income. And so the promised establishment of such pilot projects formed a key aspect of the Income Security component of our BC Green 2017 election platform.

The Confidence and Supply Agreement that we signed with the BC NDP noted the following in Section 4a:

a. Design and implement a province-wide poverty reduction strategy that includes addressing the real causes of homelessness, including affordable accommodation, support for mental health and addictions and income security.

The BC Government yesterday announced its first step towards fulfilling this commitment. With dedicated funding in the last budget, an expert panel comprising three distinguished researchers has been established to lead a B.C.-focused exploration of basic income.

In the government press release I note:

“Amidst trends like automation, part-time and contract work, the nature of our economy and the jobs within it are rapidly shifting. There is strong evidence that basic income can provide greater income security, while saving costs in other areas. We proposed exploring how basic income could work in B.C., because government should have a plan for the changes on the horizon. The panelists are highly qualified, knowledgeable and creative thinkers. I am excited to work with them on this innovative project.“

Below is the release the BC Green caucus issued in response to the government’s announcement.

Media Release

Weaver welcomes basic income expert committee
For immediate release
July 3, 2018

VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, says that the government’s newly convened Basic Income Expert Panel is a significant step forward for the province’s 21st century economic strategy. The committee was announced at a press conference today in Vancouver and is related to the B.C. Greens’ Confidence and Supply Agreement with the B.C. NDP.

“At this moment, on the verge of fundamental economic change and with the old
model of work already faltering for so many, we have an opportunity to create policy that sets
the stage for a better future for British Columbians,” said Weaver.

Weaver has advocated for exploring basic income in B.C. since 2016. In the 2017 election, the B.C. Greens campaigned to conduct a basic income pilot and implement basic income for youth transitioning out of care. The expert committee members are David Green, Vancouver School of Economics at UBC; Jonathan Rhys Kesselman, School of Public Policy at SFU; and Lindsay Tedds, School of Public Policy at the University of Calgary.

“Recent years have seen disproportionate increases in part-time and contract work. Wages have stagnated while the cost of living in our cities has spiralled out of control. Meanwhile, studies estimate that half of Canadian jobs could be impacted by automation in the next decade alone. We proposed exploring basic income in B.C. because we believe that government needs to have a plan for the changes on the horizon.

“When people are secure, they are more likely to feel confident starting a new business or returning to school. Investing in British Columbians’ success is the best way we can ensure a thriving local economy for generations to come. Further, research shows that basic income can provide income security while reducing the costs of other supports. For instance, when basic income was introduced in Dauphin, Manitoba, hospital visits declined by 8.5%.

“The committee members are all highly qualified researchers and creative thinkers. I am delighted they will be exploring this innovative policy idea for government so that we can best position our province to succeed in a changing world.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

The BC Government today released Peter German’s long awaited report on money laundering in Lower Mainland casinos.

The report, entitled Dirty Money: An Independent Review of Money Laundering in Lower Mainland Casinos conducted for the Attorney General of British Columbia, demonstrates systemic failure within the previous government to adapt our laws and regulations to changing realities.

Below is the media release we issued in response to the report’s release.

Media Release

Weaver: German report demonstrates need for systemic change, investigation into links with real estate sector
For immediate release
June 26, 2018

VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, welcomed Dr. Peter German’s independent review of money laundering in Lower Mainland casinos. Weaver says that German’s finding that large-scale transnational money laundering has been occurring in our casinos, and that B.C.’s laws and regulations have not kept pace with changing realities, demonstrates the need for wholesale policy change.

“Dr. German’s report demonstrates systemic failure within the previous government to adapt our laws and regulations to changing realities,” said Weaver.

“We have seen significant growth and change, both in B.C. and globally, since many of our laws and regulations were first developed. Outdated policies have left our province vulnerable to exploitation as transnational criminal entities have become increasingly more sophisticated.

“It is encouraging to hear that recent government actions have led to a significant reduction in suspicious activity in B.C. casinos, and I am pleased that the Attorney General has accepted the recommendations. What is most important now is that government provide clear timelines for implementing the recommendations and is transparent with regards to progress. In particular, the recommendation that the Province undertake research into allegations of organized crime penetration of the real estate industry should be at the top of government’s agenda. British Columbians are looking for answers as to why our housing market spiralled out of control so quickly and if we are to develop effective solutions we must undertake a thorough investigation of this issue.

“Government cannot be asleep at the switch amidst such significant threats. Going forward, government must be significantly more proactive in modernizing our laws and regulations so that we are not faced with such a crisis again.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

Over the last few months, I’ve been contacted by numerous constituents concerning the BC Government’s proposed “Speculation Tax”. Constituents who have contacted my office would have received an email outlining my views on this proposed measure. As the BC Green critic and spokesperson on the demand side of the affordability file, I felt it was instructive for me to make these views more readily available. Below I reproduce the contents of the email constituents would have received.

A group will be hosting a town hall on the speculation tax at the Dave Dunnet theatre at Oak Bay Secondary School from 19:00 to 21:00 on Thursday, June 28th. I look forward to hearing your views on the issue.

Text of Email

Thank you for writing to me about the government’s proposed speculation tax.

The speculation tax will be proposed in legislation that is to be brought forward in the fall.

In accordance with our Confidence and Supply Agreement, government consults with our Caucus on many matters. All input we provide government is aimed at producing evidence-based public policy that will deliver outcomes that are in the best interests of the province as a whole.

The BC Greens have indicated to government that we do not support the speculation tax because 1) it doesn’t address speculation; 2) there are too many unforeseen consequences; 3) it is administratively burdensome.

The speculation tax targets two distinct issues. The first is vacant properties. The second are satellite families — families who pay little or no taxes here in Canada.

The BC Greens recommended several alternate approaches to government on how to better deal with the housing crisis. First, we suggested that government introduce enabling legislation to allow local governments to implement a vacancy tax if they felt it was necessary for their communities. Victoria, for example, has asked for the powers to introduce such a tax. Enabling the ability of local governments to introduce a vacancy tax is relatively straightforward. The legislative language already exists in the Vancouver Charter.

Three benefits of this approach are that any monies raised would remain in the affected community, its implementation would be highly focused, and the issue of double taxation in the Vancouver area would be addressed. Should vacancy or rental shortage issues no longer be a problem, local governments could also respond rapidly without the need for provincial legislation.

Another recommendation of the BC Greens was to introduce a New Zealand-style ban on foreign purchases in the secondary housing market unless trade agreements prohibit this. New Zealand, for example, excluded Australia in its offshore buyer ban due to existing agreements.

In addition, we recommended the closure of the bare trust loophole and the introduction of a flipping tax – a tax levied on people who flip properties, buying and selling them in a short timeframe for significant profits.

The information that we provided government regarding the speculation tax was that it should be as targeted as possible in addressing speculative activity in the housing market. We also communicated that government should work to minimize unintended consequences on people and activity we don’t want to target, without fundamentally undermining the impact of the tax.

The BC Green caucus also articulated a number of problems with the proposed speculation tax. We pointed out that it made no sense to have a vacancy tax applied to strata units that had “no rental” clauses in their rules.

In areas that are disproportionately home to vacation property owners (e.g. Cultus Lake prior to its exemption), the local economies are dependent on seasonal visitors and part-time residents. Therefore, implementing this tax would have negative consequences on these economies that likely outweigh the benefits. This remains a problem with the proposed inclusion of Kelowna and West Kelowna in the Speculation Tax.

We noted that in some areas covered there is no substantive rental market (e.g. islands with no ferry service). And we continue to remain concerned that Canadians from different provinces will be treated differently. We remain committed to the notion that all Canadians should be treated equally.

We look forward to seeing the government’s legislation in the Fall. We remain committed to our shared goal of taking action to address the housing affordability crisis.

I hope this helps to clarify my position and the actions I am taking on this tax. There is so much uncertainty still out there on this speculation tax and it is not something the BC Greens would have proposed.

Best wishes,
Andrew

The BC Government announced today that it plans to create a publicly accessible beneficial ownership registry in an attempt to ensure transparency as to who owns property in British Columbia.

It’s been more than four years now since I started calling on government to close the bare trust loophole which is being exploited to provide cover for anonymous real estate transactions as well as to avoid paying property transfer and, potentially, capital gains taxes.

A bare trust is a legal entity that allows for the separation of beneficial and legal ownership. The beneficial owner of a property is the person or persons who make all the decisions concerning such things as rent, repairs, management, sale etc.; they are also the person or persons who receive all the revenue from and arrange financing for the property. The trustee of the bare trust has no substantive decision-making capacity as they simply act upon the instructions of the beneficial owner. Typically the trustee is a corporation that has no other purpose but to act as a trustee for the bare trust and for which the beneficial owner owns all the shares.

Now here’s the loophole. Suppose you own a home or apartment building that you want to dispose of. If you simply transferred title, like most of us do when we sell a home, the purchaser would have to pay the property transfer tax.

But if instead the property is in a bare trust where the trustee is a company, then you will pay no tax. All you have to do is sell your shares in the company for 1$ (the company has no assets anyway), and sell the “beneficial ownership” rights of the property to a third party via a “bare trust agreement” which is not registered at the Land Title Office.  Since no change in title occurs, no tax is paid.

While I appreciate that government is now collecting data on beneficial owners and sharing that data with the Canadian Revenue Agency (thereby potentially giving the CRA the ability to crack down on capital gains evasion), the government is still not doing what Ontario did ages ago. That is, to apply the property tax to transfer of beneficial ownership rather that to transfer of title.

This is perhaps the single most effective measure the government could take to clamp down on speculation in BC’s real estate sector.

Below is the press release I issued following the government’s announcement.

Media Release

Andrew Weaver statement on beneficial ownership registry white paper
For immediate release
20 June 2018

VICTORIA, B.C. – Today Andrew Weaver responded to government’s release of proposed legislation to create a beneficial ownership registry.

“Government should match its data collection and transparency efforts with decisive action and immediately close the bare trust loophole,” said Weaver.

“I welcome the collection of more information on who truly owns property in B.C. For far too long, individuals and corporations with the means to navigate the holes in our legal system have been able to shield their identities from tax collection and law enforcement officials. However, it is critical that in addition to collecting more data, government acts decisively to actually crack down on people who use beneficial ownership structures in order to avoid paying taxes.

“Right now, speculators are able to use the bare trust loophole to avoid paying millions of dollars in taxes. This is a loophole so big you could drive a bus through it. Government can close it by simply applying the property transfer tax to the transfer of beneficial ownership. By doing so, government can truly crack down on speculation, tackle tax avoidance and free up huge sums of money that the province can spend on housing affordability.

“I will continue to push government on the urgent need to close the bare trust loophole.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

With just a day to go before a suite of new rules come into force, uncertainty is mounting within the real estate sector.

I’ve previously asked the Minister of Finance (who is responsible for this file) on both May 10 and on May 16 whether or not she would consider stepping in to rectify numerous problems that have arisen from the impending ban on limited dual-agency transactions in this sector. The BC NDP inherited this problem from the BC Liberals’ “sledgehammer” approach to dealing with what was largely a Metro Vancouver issue. There are profound consequences for rural BC if this ban goes ahead.

As I note in the press release that we issued today, the rule changes are significant, and penalties for non-compliance are substantial, yet the implications and means of implementation of the new rules are still not well understood in the industry. Real estate professionals across B.C. are bringing forward stories about inaccurate and conflicting information, and inadequate training regarding these new rules.

It’s important that the Minister of Finance and the Office of the Superintendent of Real Estate to extend the timeline for implementation in order to ensure all realtors, and consumers, have access to the training and accurate information required for them to comply with the new rules.

Media Release

Weaver calls for an extension in timeline for real estate rule changes
For immediate release
14 June 2018

VICTORIA, B.C. – Today, in response to ongoing concerns expressed to him by realtors across B.C., Andrew Weaver is once more calling on the Minister of Finance and the Office of the Superintendent of Real Estate to extend the timeline for the introduction of the real estate rule changes.

“I have numerous concerns about the timeline for the implementation of the new rules for the real estate profession, due to come into effect tomorrow, June 15,” says Andrew Weaver, Leader of the B.C. Green Party.

“The rule changes are significant, and penalties for non-compliance are substantial, yet the implications and means of implementation of the new rules are still not well understood in the industry. Real estate professionals across B.C. are bringing forward stories about inaccurate and conflicting information, and inadequate training regarding these new rules.

“This state of affairs is not helping to protect consumers. I urge the Minister at this 11th hour to work with the Superintendent of Real Estate, to extend the timeline for implementation of these rule changes until the fall.

“Extending the timeline for implementation is essential in order to enable brokerages and boards across the industry the time to adapt to the changes and to undertake adequate education with agents, which, in turn, enables them to adequately serve consumers.”

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Media contact
Sarah Miller, Acting Press Secretary
+1 250-858-9891 | sarah.miller@leg.bc.ca