The government giveth and the government taketh away. ’Tis the way it has always been, and this week’s announcement that ICBC rates are going to jump should be no surprise to anyone.
While some drivers were breathing a sigh of relief last week when the government took away bridge tolls, they were cursing under their breath this week when they were told that they would have to pay an average of $130 more per year to insure their vehicles.
But as B.C. Attorney General David Eby told the media this week: “We need to take drastic action to fix ICBC’s devastating current financial situation.”
ICBC has been losing money for awhile – and it lost more than $560 million in 2016.
But even with the hike it will still be in a loss situation.
Now, to be sure, the Liberals left this little surprise bag for the new NDP government. But it’s now the NDP government’s to fix.
A report leaked in July recommended capping payouts for pain and suffering for minor injuries, reintroducing photo radar, upgrading red-light cameras, making high-risk drivers pay for insurance, among other things.
Some of these suggestions are no brainers. High-risk drivers should be penalized not just for the extra cash, but to control them and potentially keep them off the roads. Photo radar needs to be reinstituted. And ICBC needs to get a handle on how they use their internal legal resources and outside lawyers.
The past practice of spending huge amounts of money in court cases that seem to have little merit, barring keeping lawyers employed, is both a drain on taxpayers and the court system.
Eby and the NDP have their work cut out for them. Voters will not associate a rate hike with the government that let things get out of control. Voters will, however, remember who took a bite out of their paycheque.
