Wildfire costs soar as crews battle B.C.’s largest blaze
Fire near Quesnel, the largest on record in province, has burned more than 4,600 square kilometres
KAMLOOPS — Finance Minister Carole James says the worst wildfire season in British Columbia’s history is expected to put a dent in the provincial budget as firefighters battle the largest blaze on record.
“We’re tracking $389 million over the February budget estimate right now, and we’re only halfway through the season,” James said Tuesday as she released B.C.’s public accounts.
She said firefighting costs will be included in next month’s financial update before the province releases its full budget in February.
Kevin Skrepnek with the B.C. Wildfire Service said a record-breaking 10,200 square kilometres of forest and grasslands have burned across the province since April and the number is expected to climb with more dry weather ahead.
“This is the highest area of land burned that we have ever had in the province’s history stretching back to 1912, which is the earliest we have got records on hand,” he said from Williams Lake.
Skrepnek said 134 fires were burning in B.C. on Tuesday and that calmer and cooler conditions in recent days have helped firefighting efforts.
The largest fires, including a historic blaze west of Quesnel that is more than 4,600 square kilometres in size, have not grown since Monday.
Conditions have also eased around a wildfire sparked nearly two weeks ago in southeastern B.C., prompting the Regional District of Central Kootenay to rescind evacuation orders and alerts.
Officials said residents would be allowed to return early Tuesday evening to nearly 40 properties that were evacuated on Aug. 12 as an aggressive wildfire flared 20 kilometres southwest of Salmo.
The fire closed Highway 6 leading to the Canada-U.S. border crossing at Nelway, and travellers have been advised to check the Drive B.C. website for the latest information on when roads will reopen.
The B.C. Wildfire Service site shows the blaze had scorched about four square kilometres of bush and was 50-per-cent contained.
Chris Duffy with Emergency Management B.C. said roughly 2,600 people are still displaced by evacuation orders — down from 3,800 reported Monday.
Another 12,400 people remain on evacuation alert, meaning they must be ready to leave if an evacuation order is issued.
Skrepnek said thunderstorms are expected to bring gusty winds and lightning to the central Interior later this week and could hinder firefighting efforts. > Wildfire and flood spending is part of latest public accounts figures for B.C.,
The New Democrats say they will spend more to make life more affordable while delivering a balanced budget, after releasing audited public accounts that show the previous Liberal government banked a $2.74-billion surplus.
The large surplus, due in part to a hot housing market, is part of a strong 2016-2017 fiscal year that saw British Columbia outperform most other provinces.
While the surplus can’t be spent — it must go directly toward the province’s operating debt — Finance Minister Carole James used it as evidence that the previous government had an “unbalanced” approach to the economy.
“The public accounts for 20162017 show that B.C.’s economy is strong. We’re growing faster than was forecast and we certainly have revenues that were higher than projected,” James said.
“That’s a surplus that doesn’t reflect the reality for many British Columbians. It’s really tough for people out there to see a surplus this size, when they’re struggling day to day to manage.”
She pointed to poverty rates, seniors who can’t find care and parents who can’t afford child care as examples.
James said the NDP will release an updated, balanced budget on Sept. 11 — an interim step prompted by the change in government. A complete budget will be delivered for the next fiscal year in February.
Already, she said, the budget is facing pressure: Wildfire and flood spending is $389 million over budget, interest rates have increased and the financial stability of the Insurance Corp. of B.C. is in question.
ICBC earnings were $319 million lower in 2016-2017 than the previous year, accounts show.
The accounts also show British Columbia outperformed all but Alberta and Saskatchewan in debt-to-GDP ratio. Provincial GDP grew by 3.7 per cent, the highest rate among provinces and better than the national average of 1.3 per cent.
Overall debt increased by $591 million, including a $1.8-billion rise in self-supported debt from bodies such as B.C. Hydro and ICBC that was offset by a $1.2-billion dip in taxpayer-supported debt.
The surplus was more than 10 times higher than the $264 million estimated in the budget.
Contributing to the surplus was an increase in property transfer tax revenue of $493 million, including $102 million from the foreign buyers’ tax in Metro Vancouver. Personal income tax revenue increased by $1.3 billion, reflecting normal annual growth in the tax base and a significant adjustment to the estimate made in the prior year.
James said continued and stable economic growth is projected, but with much of the province’s growth coming from a hot housing market and existing pressures, that’s not a guarantee.
Liberal finance critic Shirley Bond said the public accounts affirmed the Liberals’ positive fiscal record and is in line with the unaudited $2.8-billion surplus that Liberal finance minister Mike de Jong announced just before the government changed hands.
“B.C.’s balanced budget today is the envy of most jurisdictions in the country,” Bond said in an interview.
The numbers also show the Liberals spent in important areas, she said. Program spending increased 4.1 per cent over the year, including increases of $486 million on health, $256 million on education and $137 million on social programs.
“The unanswered question is whether the NDP have a plan on how to keep B.C.’s economy growing to ensure investments can continue to be made. This should not be a one-time spending spree that government can never afford again. We need to see a plan to sustain revenues,” she said.
The Office of the Auditor General identified three concerns in the public accounts.
First, the surplus would be $900 million higher, if the province reported the way it receives federal funds as a lump sum, as opposed to incrementally.
Second, the government sets its own accounting policies for rate-regulating accounting at bodies such as B.C. Hydro. The overall financial impact is unknown.
Third, it found $3.4-billion debt from the Transportation Investment Corp., which is responsible for the Port Mann Bridge and Massey Tunnel replacement project, was reported in the wrong category — although that doesn’t affect the government’s bottom line.