
A former B.C. Liberal cabinet minister doesn’t think the Premier is having second thoughts over his election promise of a one time payment to British Columbians.
George Abbott said on the NL Morning News, that he’s not sure if John Horgan’s pledge to give out $500 or $1,000 cheques was in the works before it was announced.
“It was one of the promises I think that resonated in the campaign and I suspect it may have been planned but it may have also been a response to the Liberal promise to eliminate the Provincial Sales Tax for a year, then reduce it in subsequent years,” he said.
Abbott was asked if the Premier potentially could come to regret the costly promise while on his way to a big majority win.
“I suspect he doesn’t regret it. Any promise that helps you win a large majority and the opportunity to govern for four years is probably going to be one they’ll just add to what is already a pretty overwhelming deficit and that’s going to be the challenge that every cabinet minister faces,” he said.
One thing Abbott does know is, eventually the province will have to ‘pay the piper’.
“The pandemic will end, I think, sometime in 2021 [if all goes well] and the the discussion turns to ‘how are we going to close the deficit? How are we going to, at some point, start planning to get back to balanced budgets?'” he noted.
“That’s when the squeeze comes from the treasury board and elsewhere to deal with it and ministers will feel that.”
Abbott says the Liberals PST promise would cost about $11 billion dollars, while the COVID relief benefit would cost less than that, probably in the $1-billion to $2-billion range. The province later said the plan would cost about $1.7 billion.
“It’s going to be a substantial hit to the treasury,” Abbott said.
The benefit will provide $1,000 to families with a net income below $125,000, and $500 to single adults with a net income below $62,500. Eligibility will be based on people’s 2019 tax returns. Families with a net income up to $175,000 and single adults who make up to $87,500 are eligible for “reduced” amounts of the recovery benefit.
Finance Minister Selina Robinson says eligible residents will be sent a direct deposit within ‘a couple days’ of applying.
You’ll be able to apply online starting this Friday, Dec. 18, and via phone starting next Monday, Dec. 21.
Comments