While applauding the provincial government’s new investments in child care, stakeholders and advocates say affordable housing commitments have missed the mark.
Finance Minister Selina Robinson released Budget 2022 on Tuesday, billing it as an inclusive and sustainable document that “delivers action today with a plan for tomorrow.”
It shows the government inching towards its commitment to $10-per-day child care, with an average cost of $20 per day expected by the end of 2022 — a fee reduction of about 50 per cent.
The province also plans to cut the average fees for preschool, and before and after-school care to less than $20 a day in time for the 2023-2024 school year.
“Child care really was the big bright spot in this budget,” said Alex Hemingway, senior economist and public finance policy analyst at the Canadian Centre for Policy Alternatives in B.C.
“Allowing more young parents — and disproportionately women — who take on child-care responsibilities at home, this is opening up possibilities for them to reenter the workforce.”
Hemingway said the fee reductions will not only reduce cost pressure on struggling families, but potentially pay for themselves through an injection of more workers into the economy, leading to increased revenues.
2:27 B.C. budget allocates millions to tackle homeless crisis
B.C. budget allocates millions to tackle homeless crisis
The government aims to have $10-a-day child care in place across the board by the end of March in 2026. It plans to create 30,000 new child care spaces for children under six within five years, and 40,000 within seven years.
In the near future, Budget 2022 will invest $11 million in the Aboriginal Head Start program, which provides inclusive, culture-centred child care for Indigenous peoples, and put $80 million toward improving training and wages for early childhood educators.
The province will also add 130 more early childhood educator seats to post-secondary institutions annually.
“This is significant spending and it’s all moving us towards a child-care system that we need,” said Sharon Gregson of the Coalition of Child Care Advocates of BC.
“This is a year I think parents are really going to see an impact around affordability and we’re going to start to see some serious expansion.”
The provincial government has put an additional $166 million toward its goal of delivering 114,000 affordable homes, bringing the annual housing investment to more than $1.2 billion by 2024/2025. The pot will provide $100 million to non-profit housing providers in the current fiscal year to speed up construction of mixed-income housing.
The province is also adding $8 million to the $2 billion promised in 2021 for HousingHub, which works with community, governments, non-profit and private sector partners to create new affordable rental housing and homeownership options for middle-income residents.
1:07 B.C. to invest in transit upgrades as part of 2022 budget
B.C. to invest in transit upgrades as part of 2022 budget
Jill Atkey, CEO of the BC Non-Profit Housing Association, applauded a $633-million expansion in critical supports to those experiencing homelessness.
Budget 2022, however, lacks mention of an acquisition strategy to protect existing affordable homes, she added, and fails to adapt and innovate to the changing conditions of the housing market.
“We’re disappointed that those waiting for an affordable home will need to wait longer, because this budget accelerated planned spending on only 850 of the 10,000 affordable homes currently lined up and awaiting funding,” she said in a Tuesday release.
“The sooner they’re funded, the sooner people can move in.”
According to the BC Non-Profit Housing Association, three affordable homes are lost in the private sector for every single home built in the community housing sector.
Hemingway said the scale of affordable housing investment in Budget 2022 will not keep pace with the needs of British Columbians, who are increasingly finding themselves priced out of both the housing and rental markets.
“This is terrible for renters and households experiencing this situations, it’s also bad for businesses who have difficulty recruiting workers who can’t find housing near their workplace, or even the region of the province where they’re looking for workers,” he explained.
3:24 B.C. budget commits $3.2 billion for a stronger health and mental health care system
B.C. budget commits $3.2 billion for a stronger health and mental health care system
Building more affordable housing units doesn’t have to pose an exorbitant cost to taxpayers, he explained. Just as private sector developers recoup their costs by charging tenants rent, the B.C. government could significantly scale up its development with the same prudent, self-financing approach.
“The benefit when you do that publicly is the government has lower financing costs than the private sector that can help bring down rents, and the government doesn’t have to turn a profit on housing investment. That can bring down the rents,” he told Global News.
“Over the long-term, that means you’ve brought new affordable housing units that can stay permanently affordable because they’re in the non-market public system.”
According to Robinson, Budget 2022 includes the “largest affordable housing investment in B.C. history,” when investments in combatting homelessness, complex care housing, rent supplements for low-income earners and student housing are included.
The province is introducing $600-a-month rent supplements for more than 3,000 people over the next three years to help them become stably housed and adding 20 more complex care sites throughout B.C. in the next three years.
The province will also invest $264 million over three years in extending housing support for up to 3,000 people who were in leased or purchased hotel spaces during the pandemic, and helping them transition to permanent housing.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
