Saturday, December 02, 2006

Sunshine Tax confirmed by Health Minister

Well it is official. I didn't get my confirmation e-mail back from either the Health Minister George Abbott or our local MLA Tom Christensen but at the Friday meeting of the Hospital District board it was hesitantly confirmed by Abbott that indeed the lower mainland communities had their share of the 40% of Capital Costs covered by the treasury board (read taxation from all B.C.ers) while all other Hospital Boards had this 40% come from municipal property taxation!

This question was finally asked of the minister and he sloughed it off with the comment that although he wished all taxpayer in B.C. contributed in the same manner it was a product of legislation passed by the previous government (Read NDP Socialist hoards) that ceded the hospital taxation field points to the lower mainland municipalities as a revenue source to finance the newly formed TRANSLINK system. (Interestingly enough he also blamed the nurse shortage on the NDP's decision to eliminate Nursing Educational opportunities in the late 90's.)

No one asked the questions of how long this arrangement concerning Translink would last or whether there had been a study of whether this arrangement was beneficial to the general B.C. taxpayer or whether the Lower Mainlands had a "sweet deal.' (Perhaps the answer was given when Minister Abbott indicated that he could not see any light through that 'particular' door when one of the Hospital political members suggested that they would be happy to pay for their Transit costs if the Treasury board would pick up the 40% Hospital Capital costs. )

It was apparent that very few if any of the elected officials at this meeting realized that capital costs in the mainland were being paid by general taxation while the rest of the Province was forced to impose Property Taxes on their residents to entice the Victoria Mafia to built much needed and overdue Hospitals in their area.

The board in the end were pleased with the assurance that the Salmon Arm, Vernon and Kelowna Hospital projects were being endorsed and ranked as the top Provincial priorities by both our local MLA and the Health Minister. The $80 million Vernon project will add $37.00 per year for 30 years on a $250,000 property. (Based on a $32 million nut to crack projected to be financed to raise $2,170,564 per year @ 4.295%)

BACKGROUND LINKS RE TRANSLINK/ HOSPITAL HISTORY:
Translink Financing Greater Vancouver
Van. Board of Trade Analysis (excerpts follow:)
THE VANCOUVER BOARD OF TRADE REPORT CONCERNING TRANSLINK FINANCIAL SHORTFALLS AND POTENTIAL SOLUTIONS SEPTEMBER 20, 2001

Property Tax Dedicated to TransLink
Another source of funding already in use for the benefit of TransLink is a regional property tax that previously was levied to support hospitals. The provincial government took over the hospital financing obligation, and the tax has been dedicated to TransLink. It is estimated by TransLink that in 2002 that tax will produce revenues of $56 million, equivalent to an average of roughly $90 per property.

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