ICBC RATE HIKE REALLY JUST A TAX INCREASE

When a government slithers its ever-grasping tentacles into your wallet to take more money from you to pay for government services, most rational people call that a tax hike.

Here in British Columbia, it’s called an auto-insurance premium increase.

But I like to call the ICBC premium-grab what it really is: a tax-hike in disguise.

On Friday, ICBC announced it wants to hike basic auto-insurance rates by 4.9 per cent, blaming an increase in accident claims.

I don’t think it’s any coincidence the auto-insurance monopoly is following that up today by launching a public-awareness campaign around distracted driving.

It’s the evil scourge of texting-atthe-wheel that’s to blame for the jump in your insurance premiums, don’t you see?

ICBC has also blamed an underperforming investment portfolio for cost pressures.

“Investment income has declined in recent years mainly due to low interest rates and volatile equities markets,” said a 2012 government review of ICBC.

Both of these excuses conveniently ignore the other major cost driver at ICBC: all the money it forks over to government in the form of “dividends.”

In 2010, the government siphoned $576 million out of ICBC accounts. The government snatched another $101 million in 2011.

“It’s a stealth tax on drivers,” concludes Jordan Bateman of the Canadian Taxpayers Federation.

“By transferring drivers’ overpayments to government, we are putting more burden on drivers to pay for services for everyone.”

And the pickpocketing of motorists is scheduled to continue for years to come.

“ICBC is forecast to remit $497 million of its excess optional capital to the consolidated revenue fund to support core government services,” the Finance Ministry said in a threeyear plan tabled with this year’s budget.

So is this rate hike really about accident claims caused by texting drivers? Is it really because ICBC’s investment managers are picking bad stocks?

Hardly. ICBC — just like B.C. Hydro — has become a heavily lactating cash cow for the government to milk, while claiming they have not raised your taxes!

“The Liberals are increasing taxes, but trying to shift the blame on to a Crown corporation,” said Mable Elmore, the NDP’s critic for ICBC.

“We’re talking hundreds of millions of dollars a year being transferred out of ICBC while premiums continue to go up. They should be re-investing those profits into the corporation.”

While they’re at it, they should rein in the excessive executive salaries at ICBC, too. Drivers should reap the benefits. Instead, they’ll be sheared like sheep by the government.