ICBC won’t be beneficiary of speed camera revenue
Municipalities will get money to fund road-safety programs, government says
VICTORIA Drivers who get caught speeding by B.C.’s new intersection cameras won’t have their fines go toward keeping car insurance rates low.
Attorney General David Eby said Wednesday the revenue from speeding cameras will be shared with municipalities to fund roadsafety programs, and not kept by the Insurance Corp. of B.C.
That’s despite a recommendation by an outside consultant that ICBC get the money and use it to drive down premium increases.
“This red-light camera initiative is not a revenue-generation piece for ICBC. It’s not going to be creating money that will help close the financial gap at ICBC,” Eby said to reporters after making a speech at a Surrey Board of Trade meeting.
“Where revenues from tickets go is to local government, after the costs of administration are deducted, and we’re hopeful to work with local government to use that money to improve road safety further, to invest that money in infrastructure in the city to reduce collisions because that will create a virtuous circle for everybody.”
B.C. currently collects revenue from tickets for speeding and other traffic offences, and after deducting costs, distributes it to municipalities.
Eby’s comments appear to contradict public statements by Solicitor General Mike Farnworth earlier this week. He mused about possible changes to the revenuesharing program that would let the province keep a larger share of new speeding camera tickets.
ICBC is facing a $1.3-billion loss for the year ending March 31, due to increases in crashes, claims and legal fees. The losses threaten the provincial budget, and Eby has launched several reforms, including $5,500 caps on pain and suffering claims for minor injuries and penalizing bad drivers with higher rates.
Earlier this month, Eby announced the government would convert 140 red-light intersection cameras to also take pictures of vehicles that speed through intersections on both red and green lights. The province has not said what speed will trigger a camera, or when the changes will be made. But it has denied any comparison to the 1990s photo radar program that B.C. drivers hated.
A 2017 independent report into ICBC’s financial problems written by Ernst & Young suggested B.C. could generate as much as $89 million with intersection speed cameras.
“With the potential for increased income from new and additional road safety and non-insurance initiatives ... it is recommended that the option of having ICBC retain at least a portion of additional revenues generated by such initiatives (i.e., intersection cameras) be considered,” read the report. “The additional revenues would help reduce pressure on basic insurance premiums.”
Ian Tootill, whose SENSE B.C. organization advocates educational programs instead of speed enforcement, said traffic tickets have become a “profit centre” for municipalities. It’s a legitimate argument that ICBC should retain the money instead, he said.
The Liberal Opposition has dubbed the speed cameras “photo radar 2.0” and critic Michael Lee said the fact government ministers can’t agree on where the revenue should go doesn’t inspire confidence.
“It was rushed out with no details, no idea who it would apply to, and now ministers don’t seem to even know where the extra cash from motorists will go — ICBC or municipalities,” he said.
“We will support programs that will make communities safer and it is up to the NDP to show the public how their plan for photo radar will make our roads safer.”
The Ernst & Young report also recommended changing the law to apply driver risk premium points to automated speed camera tickets. But the B.C. government said in a statement: “The intent is to keep the penalties as they are now.”
The additional revenues would help reduce pressure on basic insurance premiums. ERNST & YOUNG, 2017 report