Kathy Tomlinson from the Globe and Mail recently uncovered a system of speculation and insider trading that is fuelling the red-hot condo market in Vancouver and crowding out ordinary buyers. I sought to explore this further in Question Period today. In particular, I asked the Minister of Finance what she was doing to clamp down on this egregious behaviour.

I was very pleased with her response.

In my supplemental question, I asked the minister if she would consider stepping in to rectify a problem that has arisen from the upcoming ban on limited dual-agency transactions in the real estate 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.

I remain optimistic that the Minister is aware of the problem and is sympathetic to taking action prior to the June 15 deadline. I will raise this issue again during Ministry of Finance estimates.

Below I reproduce the video and text of our exchange.

Video of Exchange

Question

A. Weaver: Kathy Tomlinson from the Globe and Mail recently uncovered a system of speculation and insider trading that is fuelling the red-hot condo market in Vancouver and crowding out ordinary buyers. A few select realtors and industry insiders are getting preferential access to new condos under construction, and some individuals are flipping the right to purchase these condos multiple times prior to anyone actually moving in, a process that artificially drives up the prices for the eventual homeowner.

Industry insiders and speculators shouldn’t be granted preferential bidding rights on new condo units. Ordinary British Columbians and young families trying to get their foot in the door should have the same access.

My question to the Minister of Finance is this. What is your ministry doing to end this egregious practice and to stop the preferential treatment of industry insiders over regular British Columbians? And will you end preferential treatment and require that developers market their condo developments at the same time and at the same price to everyone?

Answer

Hon. C. James: Thank you to the Leader of the Third Party for the question, and thank you for pointing out one more area that has to be addressed in the housing crisis that we are facing in British Columbia. I’m sure the member, as we all do in this House, hears the stories, the heartbreaking stories, every single day of people trying to get into the market. Then to hear about this kind of action — the insider flipping of presale condos — is very troubling. It’s very troubling, I’m sure, to everyone. It’s certainly troubling that that legacy has been left, and it is something we’re taking action on.

We have regulatory authorities, right now, investigating those reports. The member can be assured that this is a top priority for our government. We’re also taking action to actually clean up this mess. I think one of the things, and I’ve mentioned this before…. One of the real challenges is that the old government collected no information, so there is very little information to be able to take a look and get to the investigation piece.

We are doing that. We are taking action to actually require information on presale condos, on flipping of condos, to be gathered by developers. It’ll shine a light on this sector. It’ll ensure that we can share that information, then, with the tax authorities so that people are paying their fair share of taxes.

Then the one other piece I just want to mention to the member is that we’ve also initiated a review of the real estate regulatory system to also ensure a level playing field. It was a system left to us by the old government. They put a structure in place that clearly needs some work. There are questions raised about who has what authority, where that authority sits. So we’re going to be looking at the roles, the responsibilities, clarifying the issue of education to ensure consumer protection, which is the primary issue in this example and so many other examples in the housing crisis.

Supplementary Question

A. Weaver: Thank you to the minister for that very constructive response.

As the ministry knows, much of the dubious behaviour in the real estate sector has taken place in the overheated Vancouver real estate market. I think we can all agree that it’s essential to put in place new rules to end these abuses and to protect consumers, and I’m thankful that the minister is taking steps in this regard.

Yet it’s also crucial that any new rules don’t impact businesses and communities in smaller communities across British Columbia. Scores of realtors and brokers from smaller communities across rural B.C. have contacted me with serious concerns about the government’s plan to ban limited dual-agency transactions. In many small towns in rural regions, the new rule may be unworkable for small businesses. It will have a profound negative impact on consumers as well.

I’m worried, frankly, that this government inherited a sledgehammer response to reform from the B.C. Liberals that could have serious unintended consequences for realtors and consumers in rural B.C.

My question to the Minister of Finance is this. Will the minister consider delaying the implementation of the ban on limited dual-agency to enable a task force to review the effects of the proposed changes on small communities and to provide a way forward that protects consumers and doesn’t harm people in rural B.C.?

Answer

Hon. C. James: Thank you for the question, and thank you for raising the issue. I’ve certainly heard the concerns directly, but I know members on all sides of the House have heard those concerns in their communities as well and heard the concerns from realtors.

Just to be clear, the office of the superintendent is an independent regulator. And as the member said, they’ve introduced new rules banning dual agency designed to protect the public that are effective June 1. As I’ve said, I’ve certainly heard those concerns. I’ve met with the superintendent. I’ve met with the real estate board to raise those concerns, to make sure that they are well aware of them.

We want to make sure that the regulators are working as effectively as possible. As I mentioned, we’re also doing a review of the regulators themselves. But my expectations are clear. Consumers have to be protected, and all consumers should have the right to representation whether they live in rural B.C. or whether they live in urban B.C., whether they live in a small community or whether they live in a large community. I made that very clear to the superintendent and to the real estate board.

Today in the legislature the Minister of the Environment introduced important legislation that represents a critical first step in putting British Columbia back on track as a leader in climate solutions & the new economy.

The bill, entitled Greenhouse Gas Reduction Targets Amendment Act, 2018, commits British Columbia to reducing greenhouse gas emissions to 40% below 2007 levels by 2030 and 60% below 2007 levels by 2040. It further requires the government to release a report every two years that provides:

1. a determination of the risks to BC that could reasonably be expected to result from a changing climate,
2. the progress that has been made toward reducing those risks,
3. the actions that have been taken to achieve that progress, and
4. the plans to continue that progress.

Why this is an important first step is that these new targets send a signal to the market that British Columbia is once more serious about reducing greenhouse gas emissions. In addition, it gives a very clear goal to the civil service who will be tasked with putting together a wedge analysis that will allow us to meet the new targets.

The opportunities for innovation in the transition to the low carbon economy are limitless and British Columbia stands to reap the economic benefits associated with this transition in the years ahead.

Below I reproduce the government new release that was issued when the bill was tabled in the legislature.

Government News Release

New bill updates targets for reducing carbon pollution

The Government of British Columbia has introduced legislation to update the Province’s greenhouse gas reduction targets, setting the stage for a renewed climate action strategy to be released in the fall.

The Climate Change Accountability Act replaces the 2007 Greenhouse Gas (GHG) Reduction Targets Act. It sets new legislated targets of a 40% reduction in carbon emissions from 2007 levels by 2030, and a 60% reduction from 2007 levels by 2040. The current target of an 80% reduction in emissions by 2050 remains. The legislation will provide a framework to develop detailed climate-change adaptation reports. The Province will work with the broader public sector on these requirements. The legislation also enables the minister to set sectoral GHG emission reduction targets.

“The act is the foundation for a credible and achievable climate action strategy in B.C.,” said George Heyman, Minister of Environment and Climate Change Strategy. “The previous government, after stalling on sustained climate action for several years, admitted they could not meet their 2020 target, and those targets are repealed in this act.

“We aim to remove barriers, and make it attractive and affordable for people, communities and industry to move to lower-carbon alternatives. At the same time, we will grow an economy that’s stronger, cleaner, more diverse and more resilient.”

Climate action is an important component of the Confidence and Supply Agreement with the B.C. Green Party caucus.

“This legislation is another step forward towards making B.C. a leader in climate action once again,” said Andrew Weaver, leader of the B.C. Green Party. “This is a huge opportunity to build a thriving 21st-century economy centred around innovation. I look forward to working in partnership with the government to implement a plan to reclaim this leadership, and keep our commitment to younger generations.”

The Province’s climate action strategy will be released in autumn 2018. Actions to reduce the provincial GHG emissions will include establishing sectoral plans for buildings and communities, industry and transportation sectors.

Today in Vancouver I met with a group of business leaders in Vancouver to discuss legislation I plan to table next week that would enable us in British Columbia to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

Over the last few months my legislative staff and I have been working with these and other stakeholders to craft legislation that would enable a new classification of companies in British Columbia — The Benefit Company.

A benefit company is profit driven but gives consideration to the impact it is having on the environment, its workers, the community, suppliers and customers, and can direct profits to the public benefit versus solely to shareholders. This legislation would provide a legal framework for companies that choose to pursue social and environmental goals and operate in a responsible and sustainable manner. By making B.C. the first jurisdiction in Canada to allow businesses to incorporate as benefit companies, we are sending a strong signal about the kind of economy we want for our province. Already, more than 30 states in the US have Benefit Company enabling legislation.

Below I reproduce the press release that we released after the roundtable discussion. I also append my initial speech at the media availability.

Media Release

Andrew Weaver to introduce legislation to support companies that pursue social and environmental goals
For Immediate Release
May 2, 2018

VANCOUVER, B.C. – Andrew Weaver, leader of the B.C. Green Party, announced today that he will introduce legislation that would enable B.C. companies to incorporate as benefit companies. The bill, which Weaver announced following a roundtable with business leaders in Vancouver, would amend the Business Corporations Act to allow companies that choose to incorporate as benefit companies to pursue social and environmental goals, rather than just profit.

“This legislation is an opportunity for B.C. to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century,” said Weaver.

“The world is experiencing tectonic shifts – from climate change to automation, we need to think differently in order to turn these challenges into opportunities. Government and individuals cannot solve these problems alone. Businesses play a huge role in our society and they are part of the solution. Companies that pursue a triple bottom line are on the cutting edge of rethinking the role of business in the 21st century. They know that acting in the best interests of people and the planet is the best way to build a thriving economy for the long-term.

“This legislation would provide a legal framework for companies that choose to pursue social and environmental goals and operate in a responsible and sustainable manner. By making B.C. the first jurisdiction in Canada to allow businesses to incorporate as benefit companies, we are sending a strong signal about the kind of economy we want for our province.”

Weaver’s bill is his caucus’ first bill to be put through the official legislative drafting process, making it possible that this could be the first Private Member’s Bill in B.C.’s history to be passed into law.

Quotes:

“With so many diverse and innovative companies doing great work, B.C. is a fantastic place to invest. Companies that incorporate environmental and social considerations into their business models demonstrate that they have a long-term vision for their role in the province. Enacting Benefit Company legislation sends a signal to the business community that government supports companies that want to use their business as a force for good.”

• Joel Solomon, Chair & Co-Founder, Renewal Funds

“The values of social and environmental responsibility inform everything we do at Keela. Building a company on these values sends a clear signal to our clients about what we stand for and demonstrates that our company is built to last. This legislation will encourage more BC companies to incorporate these values into their own business, empowering them to promote social and environmental change in our province.”

• Nejeed Kassam, CEO, Keela

“The proposed legislation will surely be welcomed by the growing community of impact investors in British Columbia. Benefit corporation status will give these investors additional confidence that social and environmental outcomes will be an integral and protected part of business decision-making.”

• Norm Tasevski, Co-founder, Purpose Capital

-30-

Media contact

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

Backgrounder

• A benefit company is profit driven but is committed to environmental sustainability and social responsibility in addition to profit
• Corporations are able to incorporate as a benefit company in over 30 US states
  • According to the non-profit B Lab, more than 5,000 companies have chosen to become benefit companies where legislation exists, and they’ve raised nearly $2 billion in capital
  • Notable benefit companies include Patagonia, Method Home Products, Plum Organics, Kickstarter, and Laureate Education
• The choice to become a benefit company is voluntary and there are no tax benefits or impacts on other companies
• The proposed amendment to the Business Corporations Act will create a new part that enables companies to become benefit companies under the Act. These companies will have to meet certain requirements, including:
  • Committing to operate in a socially responsible and environmentally sustainable manner, and to promote specific public benefits
  • Reporting publicly against a 3rd party standard
• If this legislation passes, BC would be the first jurisdiction in Canada to allow companies to incorporate as benefit companies

Jillian Oliver | Press Secretary
Room 028 Parliament Buildings
Victoria, BC V8V 1X4
Phone: (250) 882-6187 | Fax: (250) 387-833

Initial Statement to the Media

Introduction

Thank you all for coming. And thank you Bernie for the introduction.

I’ve just had a roundtable with a group of inspiring business leaders. These people have chosen to use their business as a force for good.

They are running successful companies, creating jobs and contributing to our strong economy. But what sets these businesses apart is their commitment to not only seeking profits, not only creating financial value for their shareholders, but also their commitment to pursuing social and environmental benefits as part of their work.

I think that government should do more to support and empower companies like these ones that pursue a triple bottom line of people, planet, and profit.

Announcing legislation

That’s why I am happy to announce today that I will be introducing legislation this session to support sustainable and responsible businesses. This bill would amend the Business Corporations Act.

It would add a new Part to the Act, giving companies an option to incorporate as “benefit companies”.

It would allow companies that choose to become benefit companies to pursue social and environmental goals, rather than just profit.

The bill will include some requirements that benefit companies would need to adhere to. These include putting their public benefit commitments in their articles, and meeting standards of transparency and reporting by reporting progress against an independent third party standard.

This bill will also protect companies that choose to prioritize social and environmental purpose as part of their mandate. It will provide clarity and certainty for companies and their shareholders about the company’s goals and mandate. And companies will need a shareholder majority to become or stop being a benefit company.

Why this legislation

This legislation is an opportunity for BC to lead the country in supporting businesses that want to be a bigger part of developing innovative solutions to the challenges of the 21st century.

This legislation is common elsewhere. In the US, over 30 states have this type of legislation. And successful companies of all sizes have signed on.

I believe that becoming the first jurisdiction in Canada to champion benefit corporations is a huge opportunity to position the province as a leader.

We are struggling to adjust and respond to massive technological, social, and environmental shifts. From climate change to automation, we need to think differently in order to turn these challenges into opportunities. Government and the non-profit sector cannot respond to these changes alone.

Nor should we have to.

Businesses play a huge role in our society and they are part of the solution. Companies that pursue a triple bottom line are on the cutting edge of rethinking the role of business in the 21st century. They know that acting in the best interests of people and the planet is the best way to build a thriving economy for the long-term.

Conclusion/opportunity

In drafting this bill, we have taken government up on their decision to make legislative drafters available to all private members. We have been working with a legislative drafter to ensure that this legislation is legally correct, and that it works with other pieces of legislation in BC.

I’m committed to seeing this bill will be called for debate in the house.

Ultimately, I believe it’s a bill that both the BC NDP and the BC Liberals can support.

Our hope is that, if government passes this bill, that we can encourage more BC companies to incorporate social and environmental values into their own business, empowering them to promote social and environmental change in our province.

Thank you.

Today in the legislature I took the opportunity during Question Period to ask the Minister of Jobs, Trade and Technology about what his Ministry is doing to encourage integration between BC’s tech and mining sectors.

British Columbia is blessed with a wealth of natural resources, and many communities rely on these resources for their livelihoods. But British Columbia will never compete head to head in digging dirt out of the ground with other jurisdictions that don’t internalize the social and environmental externalities that are so important us to. We have to be smarter, more efficient and innovative. In doing so, we’re not only able to sell our resources, but we’re also able to sell the knowledge and value-added products that arise from them.

Rather than adopting a race-for-the-bottom approach to deregulation, we have an incredible opportunity here in British Columbia to integrate our tech sector and our extractive resource industries.

Below I reproduce the video and text of our exchange.

Video of Exchange

Question

A. Weaver: British Columbia is blessed with a wealth of natural resources, and many communities rely on these resources for their livelihoods. But British Columbia will never compete head to head in digging dirt out of the ground with other jurisdictions that don’t internalize the social and environmental externalities that are so important us to. We have to be smarter, more efficient and innovative. In doing so, we’re not only able to sell our resources, but we’re also able to sell the knowledge and value-added products that arise from them.

Rather than adopting a race-for-the-bottom approach to deregulation, we have an incredible opportunity here in British Columbia to integrate our tech sector and our extractive resource industries. B.C.-based companies like MineSense, a company that creates digital mining technology, exemplifies such innovation.

To the Minister of Jobs, Trade and Technology. Partnering our resource industries with B.C. innovation is an easy choice with obvious returns. What is this minister doing to encourage these partnerships?

Answer

Hon. B. Ralston: I share the member’s optimism about the power of technological discovery and innovation to transform very traditional resource industries. And in fact, that’s what we’re doing by appointing the innovation commissioner and expanding the mandate of Innovate B.C. to support emerging technologies that will assist in transforming our resource industries.

MineSense is a very good example that illustrates the point, I think, extremely effectively. MineSense is a company which won an award as one of the world’s top-100 new clean-tech companies. What is does is it’s a technology which assists in sorting mining ore through a sensor system, which makes the process more efficient and therefore more profitable, but it also reduces the use of water, reagents and other aspects of the mining process, and it reduces CO2 emissions, therefore making the entire process more energy-efficient and, in effect, greener.

That’s the kind of transformation that’s coming about in the sector, and that’s what the innovation commissioner and the innovation commission are setting out to continue and to enhance, building future prosperity here in British Columbia.

Supplementary Question

A. Weaver: For far too long, government has ignored the potential for innovation within the resource sector. A race-for-the-bottom approach to resource extraction may benefit a few corporate elite, but it’s not in the best interest of communities across our province struggling to attract and retain well-paying, long-term jobs.

It’s not our raw resources that can be profitable in the global markets; it’s our innovation too. Rimex, for example, is a B.C-based company that designs and manufactures innovative, cutting-edge industrial tires. Their products are efficient and reduce risk, and they’re also a prime example of B.C. innovation that’s gone global. The manufacturing base and corporate headquarters for Rimex are both located in the Lower Mainland, and there are over 200 Rimex employees in British Columbia.

My question to the Minister of Jobs, Trade and Technology is this: what is the minister doing to foster the growth of B.C. mining sector innovation in this global marketplace?

Answer

Hon. B. Ralston: Again, I thank the member for the question. The government, the Minister of Energy and Mines, has appointed a mining task force, and those issues that the member raises are precisely some of the issues that that task force will raise — how to integrate British Columbia’s leading innovation and technology sector with the traditional resource industries in order to make sure that they can compete globally.

Another example of a B.C. company that is transforming the mining sector is LlamaZOO, which by using data analytics and visualization technology, enables those proposing a mine to create a digital double of the mine and to plan the extraction of the ore in a more efficient way. That technology has attracted wide interest in the mining sector, and that company is, understandably, doing very well.

That’s just one example of what innovation and the support that’s given to it by the government of British Columbia will do to transform the mining sector and enable it to continue to be a world-leading sector here in British Columbia.

Today in the legislature I had the opportunity to rise once more in Question Period to question government further about the dubious economic justifications underpinning Alberta and Federal rhetoric supporting the Trans Mountain pipeline.

Below I reproduce the video and text of my exchange with the Minister of the Environment.

Video of Exchange

Question

A. Weaver: Yesterday, I asked the government whether they share the concerns being raised by many experts about the economics of the Trans Mountain pipeline. I’d like to pick up on that here.

Earlier this year and for the very first time, a new class of tanker — a very large crude carrier, or VLCC — left the newly refurbished Louisiana Offshore Oil Port destined for Asia. These tankers can load over two million barrels of oil, and the LOOP facility can fill them at a whopping rate of 100,000 barrels an hour.

The Aframax-class tankers that would leave the terminus at the end of the Trans Mountain pipeline can only take 555,000 barrels of diluted bitumen out of Burrard Inlet. That means that any Asian buyer would need to contract four Aframax tankers from the Trans Mountain terminus versus only one VLCC from the LOOP facility.

Based on this obvious economic reality that any Asian buyers would be serviced by the VLCCs out of the U.S. and not out of the terminus of Trans Mountain, my question is this, to the either the Deputy Premier and Minister of Finance or the Premier, if he’s here: is her government or his government and her ministry or the Premier’s office taking a hard look at the financial case for the Kinder Morgan pipeline?

Answer

Hon. G. Heyman: Thank you to the Leader of the Third Party for the question. I and other members of the government are certainly aware of the controversy around the economics, the different studies, the changes in conditions and different alternatives. I thank the Leader of the Third Party for reading these into the record.

But with respect to the Leader of the Third Party, it is the job of proponents to determine the economics. It is the job of other governments backing the project to determine the merits of the economics. I think all Canadian taxpayers would want other governments to take a long, hard look at the economics of a project in which they’re considering investing billions of dollars.

But our job, as the government of British Columbia, is to look at the interests of our environment and our economy, and that’s what we’re doing. That’s why we are considering every measure, every inch of our constitutional jurisdiction — to protect against a catastrophe that’s possible, that could have significant and awful economic interests on British Columbia. Tourism alone — 19,000 tourism businesses in British Columbia, employing 133,000 people in every corner of this province, in every constituency represented by members in this chamber.

It’s our duty, it’s our responsibility, to look out for those people. It’s not our responsibility to ignore them because a large project comes along. Our job is to ensure that if there are large projects, they don’t impact and take away the livelihood of those people or the $17 billion in revenue that the tourism industry generates every year in British Columbia.

Mr. Speaker: The Leader of the Third Party on a supplemental.

Supplementary Question

A. Weaver: I do thank the minister for his answer and his commitment to protecting British Columbia. But I respectfully disagree, because I believe it is the government’s responsibility to inform British Columbians about the economics of this proposal.

Why? Because the previous government claimed that the economic benefits for British Columbia were very large and, in fact, claimed that the government’s fifth condition was apparently met. Now unfortunately, the fifth condition was based on assertions that were put towards the 2012 National Energy Board in the submission. It’s now six years old, and many of the fundamental assumptions of that submission, of that economic case, on which the government claimed its fifth condition was met, are no longer valid.

Keystone XL and line 3 have been approved. That means that we have more than a million barrels a day of export capacity, which was unaccounted for. We’ve got North America now having the ability to ship through VCCs — that was never able. And we know that you can’t get bigger ships in Burrard Inlet. This government, I would argue, has a responsibility to review those numbers, so that British Columbians are given correct, accurate and up-to-date information about the economics of this project.

My question, Hon. Speaker, is to the Minister of Environment — through you and then through the Minister of Finance, who still has laryngitis. The previous provincial government made claims about the economic benefits to B.C. from this pipeline, that have been cast into serious doubt. Why isn’t this government examining the economic case more closely?

Answer

Hon. G. Heyman: Again, I thank the Leader of The Third Party. As he respectfully disagrees with me about the role of our government in this regard, I respectfully assert again to him that this is not a project that this government thinks is good for British Columbia. We’ve made that clear. We think the risk is so great, and far outweighs the reward.

What we are doing is ensuring that within our jurisdiction, within our ability to regulate and place conditions on a project that is federally decided upon — subject to an appeal to the federal court — we ensure that conditions and regulations are in place to protect our economy.

It’s important up and down our coast. We have a fisheries and seafood industry that contributes more than $660 million every year to our gross domestic product, and it employs 14,000 people, paying almost $400 million in wages.

Just yesterday, 450 businesses understood why we were taking this position; 450 B.C. businesses signed a joint letter calling on the government to continue to stand up for our coast and the tens of thousands of jobs that depend on protecting our coastline and our environment from a spill.