The competition heats up

Sure, Rod Gantefoer might seem to have an early lead in the Owelympic Games' Jaw-Dropping Incompetence event. But B.C. Finance Minister Colin Hansen isn't going down without a fight:

Last September, Hansen said that B.C. had opted to take the federal monies over a three-year period -- $750 million in 2009/10; $374 million in 2010/11; and $475 million in 2011/12 -- rather than in a lump sum. The timing of those federal payments, Hansen added, was solely at B.C.'s discretion.

But today's budget shows that the Campbell Liberals have decided to fudge the timing of those federal payments. Instead of receiving $750 million in the current fiscal year (which ends on March 31), Victoria will accept just $250 million from Ottawa -- thereby deferring $500 million in revenues to later years.

So, instead of obtaining Ottawa's HST inducements when they're needed most -- now, when B.C.'s fiscal deficit is at its nadir of $2.8 billion -- the Campbell government intends to shove those transfers to some point in the future.

Why ever would they do that? It's simple, really: the BC Liberals believe windfall federal government monies are most-needed -- not at the present time, just after they won a provincial-general election -- but just before the next general election, scheduled for 2013. That way, the Campbell government can be assured of recording a balanced (or surplus) budget when next they face the electorate.
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(I)nstead of accepting federal windfall payments immediately, we'll now be borrowing monies to cover the annual fiscal shortfall. And we'll be paying interest on those borrowed monies.

How much will that be? According to this author's calculations (using the Interest Rate Forecasts on page 119 of the government's Budget and Fiscal Plan, 2010/11 - 2012/13, here), the unnecessary interest charges incurred by the Campbell government will cost British Columbians $49.9 million in 2010/11 and $24.4 million in 2011/12. That's a total of $74.3 million over a two-year period.

For all the criticism the federal Cons have taken for their incessant use of public money for partisan advertising, at least they managed to buy air time and produce PR material for their tens of millions of taxpayer dollars. (Which leads to the question: what does Deficit Jim Flaherty have in his bag of tricks to be revealed tomorrow?)

In contrast, Hansen seems entirely happy to spend upwards of $70 million on nothing but raw political calculation. And I'd have to wonder whether B.C. citizens left with the bill will be happy to see public money thrown down the tubes for the B.C. Libs' gain - or whether they'll be roused enough to recall Hansen and enough of his partymates to change B.C.'s government before the supposed payoff.