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OPINION: MSP is still a touchy subject

To understand what drives the B.C. Liberal government more than anything else, look no further than the budget it tabled last week. I’m not referring to any particular service or program, or tax or tax break. No, the B.C.

To understand what drives the B.C. Liberal government more than anything else, look no further than the budget it tabled last week.

I’m not referring to any particular service or program, or tax or tax break. No, the B.C. Liberals’ priority is zeroed in on one particular line in the budget.

That would be the bottom line, also known as the projected budget surplus. Everything else comes a distant second to the paramount importance the government attaches to balancing its books.

All spending and tax measures flow directly from the zeal with which the B.C. Liberals attach to achieving a balanced budget.

This conservative approach does little for those on the margins of society. To take just one example, social assistance rates continue to be frozen, as they have been for years now.

Another example was contained in this year’s budget. The government is providing a modest $72 monthly increase for those on disability assistance but at the same time it is “clawing back” a monthly bus pass worth $52, so the net rate increase is, in reality, rather tiny.

This clumsy manoeuvre is ham-fisted at best, and mean-spirited at worst. It has overshadowed other budget measures – in particular, significant funding increases for services affecting children and youth in government care – for which the government deserves a bit of a pat on the back.

The government may be more concerned about another part of the budget that plays a big role in ensuring it is balanced: those pesky Medical Service Premiums, and this stubbornness may prove to be more politically problematic.

While the budget made the rate structure a teeny bit fairer (the income threshold at which the full premiums take effect has been raised), the fact remains MSP premiums remain a regressive form of taxation that has become a significant financial dent felt every month for hundreds of thousands of people.

What’s curious about this is that the MSP changes will adversely affect many of those who presumably voted for the B.C. Liberals over the past few elections: seniors and those with higher than average incomes.

All of this presents an interesting choice for the NDP come the next provincial election. Will the party abandon the balanced budget approach in favour of higher spending and cutting things like the MSP?

Given the federal Liberals’ success with that position in the fall election, this must be seen as a tempting option for B.C. New Democrats, especially since it would neatly contrast them to the penny-pinching party in power.