Northwest BC shouldn't look to CBT as a model

Andre Carrel
By Andre Carrel
August 6th, 2014

Establishing the Northwest British Columbia Resource Benefits Alliance (RBA) was a good move by the region’s local governments. Their news release announces that one of its first priorities is to negotiate a revenue sharing agreement with the Province.

It argues that communities need access to new long term sustainable revenue sources to fully address infrastructure deficits and needs, both now and into the future. Local governments would certainly benefit from gaining access to a new and sustainable revenue source linked to major resource developments. Local governments know what is needed; they have the capability and the capacity to identify, develop, and implement infrastructure projects which are essential to their communities.

It is difficult to understand the RBA’s reference to the Columbia Basin Trust (CBT) as a model of what should be established in this area. The CBT was created 19 years ago by provincial statute. The legislation’s preamble announces that “the government desires to include the people of the Columbia Basin in decisions that affect their lives and determine their future”. To that end the legislation states that the CBT’s purposes are to contribute to the social well-being of the residents of the region, the preservation, protection and enhancement of their environment, the economic development of the region, and “any other prescribed purposes.” However, the range of these objectives is limited by the stipulation that nothing in the stated purposes “relieves any level of government from any obligations it might have with respect to the region.” The CBT is free to spend money on anything the board of directors may agree on as long as it does not relieve local governments of their obligations. But relief with respect to government obligations, specifically a new source of revenue to help pay for local infrastructure, is precisely what the RBA is looking for.

The CBT is governed by a twelve-member board of directors. The five regional districts within its area and the Ktunaxa-Kinbasket Tribal Council are each invited to submit a list of one to four nominees for consideration re appointment to the board of directors. The Lieutenant Governor in Council – in effect the provincial government – selects and appoints one person from each of the six lists submitted. The remaining six directors are appointed by the government at its own discretion. The efficacy of local representation is diminished by a provision that allows the government to “decline to appoint any of the nominees provided by a nominating body.” When that happens, the affected nominating body may submit a second list of nominees. If none of the names from that second list are acceptable to the government, the government proceeds to appoint a director of its choosing. To preserve the appearance of local representation, a director appointed under these conditions “is deemed to be appointed from nominees of that nominating body.” The bottom line is that persons who are objected to by the Premier will never serve on the CBT board of directors.

The legislation’s preamble declares that the government desires to include the people in decisions that affect their lives, but a close inspection of the legislation reduces that desire to an illusion. The CBT is a crown corporation with its own administration, and the Province is the sole shareholder. The CBT’s structure makes the organization accountable to the Provincial Government. As much as the government and the CBT extol the latter’s local accountability, the CBT is not accountable to local governments, much less to their citizens.

The CBT funds many worthy projects in the Columbia Basin; however the cost of staff remuneration amounts to $1 for every $5 spent on community projects. The cost of the CBT’s administration amounts to 25 percent of its annual expenditures. The CBT’s legal mandate does not allow it to provide the kind of local government assistance the RBA is looking for. Our region does need new and sustainable revenue sources to address current and future infrastructure deficits and needs. What we do not need is one more crown corporation accountable to the provincial government to decide, on our behalf, what we receive.

Andre Carrel is a retired city administrator and fulltime granpal.

Categories: GeneralOp/Ed

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