BC Budget 2015 – “Balanced Budget 2015”

BC Budget 2015 –
“Balanced Budget 2015”
1. Economic outlook
Indicators of B.C.’s economic performance in 2014 reveal increased domestic activity relative to the
same period of 2013, including growth in key areas such as exports, retail sales and housing starts.
The government forecasts the B.C. economy to grow by 2.3% in 2015, 2.4% in 2016 and 2.3% in
2017.
Downside risks to B.C.’s economic outlook include the potential for a slowdown in domestic and
U.S. activity, ongoing fragility in Europe, and slower than anticipated Asian demand, particularly in
China. Additional risks include a fluctuating Canadian dollar and weak inflation, in part due to lower
oil prices.
2. Three-year fiscal plan
Budget
Estimate
2015/16
Plan
2016/17
Plan
2017/18
Revenue ………………………………………… 45,772
Expense …………….....…....………………..…(44,793)
Surplus (deficit) before forecast allowance ………… 979
Forecast allowance ……………………………… (100)
Surplus (deficit) ........................………………………… 879
46,365
(45,831)
534
(250)
284
47,646
(46,920)
726
(350)
376
48,617
(47,868)
749
(350)
399
Capital spending:
Taxpayer-supported capital spending …………3,637
Self-supported capital spending ……………… 2,604
6,241
3,731
2,518
6,249
3,726
2,527
6,253
3,199
2,944
6,143
Provincial Debt:
Taxpayer-supported debt …………………… 42,302
Self-supported debt ………………………… 21,428
Total debt (including forecast allowance) ………… 63,830
43,182
22,528
65,960
44,126
23,769
68,245
44,7339
25,321
70,404
Taxpayer-supported debt-to-GDP ratio ……………… 17.7%
Taxpayer-supported debt-to-revenue ratio
95.8%
17.4%
95.4%
17.1%
95.1%
16.6%
94.7%
Economic Forecast:
2014
Real GDP growth ......................................... 2.2%
Nominal GDP growth .................................... 3.9%
2015
2016
2017
2.3%
3.8%
2.4%
4.3%
2.3%
4.3%
($ millions)
BCRPA - 2015 BC Provincial Budget Summary
Updated
Forecast
2014/15
Page 1 of 14
Risks to the Fiscal Plan
The main risks to the government’s fiscal plan include:
 risks to the BC economic outlook, largely due to the continued uncertainty surrounding
global economic activity;
 assumptions underlying revenue, including Crown corporation income forecasts, such as
economic factors, commodity prices and weather conditions;
 potential changes to federal government allocations for health and social transfers and costsharing agreements, as well as impacts on the provincial income tax bases arising from
federal government tax policy changes;
 utilization rates for government services such as health care, children and family services,
and income assistance; and
 the outcome of litigation, arbitrations, and negotiations with third parties, including the
appeal of the BC Supreme Court decision on the teachers’ contract issue.
3. Budget Highlights
1. Health Care
The annual budget for the Ministry of Health will increase by a further $491 million in 2015/16. BC
still leads the nation in important health outcomes while maintaining control over cost escalation.
BC continues to be only one of three provinces with healthcare costs under $4,000 annually per
capita, while again ranking best in terms of Life Expectancy, Cancer Mortality, and Mortality related
to Diseases of the Heart and second best for Infant Mortality.
2. Supporting Economic Development
Budget 2015 provides $31 million over three years to support mining and the ongoing development
of a liquefied natural gas (LNG) industry in British Columbia.
3. Benefitting the Environment
Overall, Budget 2015 provides $47 million over three years for initiatives benefiting the
environment.
The Water Sustainability Act modernizes British Columbia’s water laws, regulates groundwater use
and strengthens provincial water management in light of growing demands for water and a
changing climate.
Budget 2015 provides $22 million over three years for an incentive program for the cement
industry to produce cement in a cleaner manner.
Budget 2015 directs all revenues from freshwater fishing licenses to the Freshwater Fisheries
Society for conservation activities. This will provide $10 million over three years in incremental
funding to the society.
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In addition, Budget 2015 reintroduces the Clean Energy Vehicle Incentive Program and a
fuelling/charging infrastructure program which will provide British Columbians incentives when
considering the variety of clean and green choices for their transportation needs. Additional energy
efficiency and conservation initiatives will also be implemented.
4. Supporting Families
Budget 2015 provides an additional $150 million over the next three years to support families and
individuals most in need.
In Budget 2015 government’s contribution to Community Living British Columbia will increase by
$106 million over the next three years.
Effective September 1, 2015 government will no longer deduct child support payments from
income and disability assistance calculations. Income and disability assistance clients will be able to
keep every dollar they receive in child support payments over and above what they receive in
income and disability assistance.
Budget 2015 provides net additional funding of $20 million for individuals and families in need of
income assistance to address caseload growth in disability income assistance, supplementary
assistance and program delivery costs, partially offset by an anticipated reduction in temporary
income assistance caseloads.
5. Policing and Community Safety
In Budget 2015, government will invest an additional $15 million over the next three years to fund
increased RCMP costs in support of government’s continued commitment to a strong provincial
police force to keep communities safe.
6. Strategic Investments to Non-Government Partners
Budget 2015 is accelerating $107 million of grants and other payments to local governments, public
libraries, and other non-government agencies into 2014/15, so as to provide more funding
certainty to those entities.
7. Capital Spending
Current and planned capital investments in Budget 2015 include:
 A new Clayton North Secondary School in Surrey
 Replacement of Oak Bay High School in Victoria. The new school includes a theatre, as well
as a Neighbourhood Learning Centre with a daycare and programs provided in partnership
with Oak Bay Parks and Recreation.
 A seismic upgrade to Lord Strathcona Elementary
Current and planned investments in the post-secondary sector include:
 Renewal and expansion of Camosun College’s Interurban Campus Trades Facilities in
Victoria
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Expansion and renovation of the existing Trades Campus at Okanagan College in Kelowna
A new campus for Emily Carr University at Great Northern Way in Vancouver
Support for research infrastructure through the British Columbia Knowledge Development
Fund, with external funding leveraged from the federal Canada Foundation for Innovation
and non-provincial government partners.
Key capital investments in the health sector include:
 Redevelopment of Children’s and Women’s Hospital including the new Teck Acute Care
Centre
 Construction of two new hospitals (one located in Courtenay/Comox and one in Campbell
River)
 new clinical services building for Royal Inland Hospital in Kamloops
 Construction of the new Joseph and Rosalie Segal Family Health Centre
Budget 2015 includes continued investments in government’s transportation investment plan.
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Highway rehabilitation
Side road improvement program
Natural gas road upgrade program
Highway 1 (Kamloops to Alberta border)
George Massey Tunnel replacement project
Okanagan Valley corridor
Cariboo connector program
Major highway corridors and roads
Other transportation programs
Transit infrastructure
Port Mann Bridge/Highway 1 project
4. Tsilhquot’in Nation
On June 26, 2014, the Supreme Court of Canada (SCC) awarded Aboriginal title to the Tsilhqot’in
Nation for over 1,700 square kilometres of land in the Cariboo-Chilcotin region. The unanimous
ruling is the first in Canada to recognize Aboriginal title. The SCC’s interpretation of Aboriginal title
has given the Tsilhqot’in the right to control the land within their title area. This decision has
clarified the nature of Aboriginal title, including the First Nations’ ‘ownership’ rights within title
areas. The Province is working in partnership with the Tsilhqot’in on a framework for
reconciliation following the decision. In the past four years, government has signed more than 200
revenue-sharing agreements with First Nations. In the last few months, they have also signed 11
pipeline benefit agreements with 19 First Nations related to LNG development.
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5. A Pan-Canadian “Renminibi-Hub”
China is now the second largest economy in the world and the largest trading nation. As well,
China’s currency – the Renminbi – is now the fifth-largest global -currency in terms of value of
payments. When businesses trade internationally, the currencies involved must be converted to
execute the transactions. Traditionally, the RMB has not been easily or freely convertible to other
currencies. For Canadian businesses trading with China, currency conversions have generally been
made into US dollars, and then from US dollars into RMB – doubling exchange rate commission
costs. In November 2013, British Columbia was the first foreign government to issue a bond
denominated in China’s Renminbi. The bond issues raise the Province’s profile in Asia Pacific
financial markets, recognize the internationalization of the RMB, and enhance the trade linkages
and relationships between BC and China. On November 8, 2014, a memorandum of understanding
between the Bank of Canada and the People’s Bank of China was signed, which will establish
Canada as North America’s first offshore RMB hub. The government intends to coordinate and
actively work to promote the use of the hub by the business community over the coming year.
6. Tax Measures
BC Tax Reduction Credit
Effective for the 2015 tax year, the BC tax reduction credit is increased from $412 to $432 and the
credit phase-out threshold will rise from $18,327 to $19,000, increasing the amount of income an
individual can earn before they start paying provincial income tax, benefiting about 500,000
taxpayers.
Children’s Fitness Equipment Credit
Effective for the 2015 tax year, a new non-refundable children’s fitness equipment credit is
introduced. Parents can already claim the BC children’s fitness credit in respect of registration fees
paid for a child’s participation in an eligible program of physical activity. With this budget, a parent
can now claim an additional credit in respect of fitness equipment purchased for the child. The new
credit is calculated as 50 per cent of the existing BC children’s fitness credit amount claimed.
Parents are not required to keep receipts for equipment purchases. The credit provides a benefit of
up to $12.65 per child.
BC Education Coaching Tax Credit
Effective for the 2015 tax year, a new non-refundable BC education coaching tax credit is
introduced. The tax credit is available to teachers and teaching assistants who carry out at least ten
hours of extracurricular coaching activity in the tax year. The credit amount is $500, providing a
tax benefit of up to $25.30 per eligible taxpayer. The credit is available for the 2015, 2016 and 2017
tax years, at which time the credit will be reviewed.
Medical Services Plan Premiums
Effective January 1, 2016 MSP premium rates will increase by about four per cent or by $3.00 per
month to a total of $75.00 for single persons, $5.50 per month to a total of $136.00 for two person
families and $6.00 per month to a total of $150.00 for families of three or more persons.
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Maximum Tax Rate for Municipal and Regional District Tax Program
The Municipal and Regional District Tax Program imposes tax on the purchase of accommodation in
designated accommodation areas to raise revenue for municipalities, regional districts and eligible
entities primarily for local tourism marketing, programs and projects. The maximum tax rate on
the purchase of accommodation under the Municipal and Regional District Tax Program that may
be imposed in a designated accommodation area is increased from two per cent to three per cent of
the purchase price of accommodation. Municipalities, regional districts and eligible entities will be
required to request the government increase the tax rate in their designated accommodation area
and details of the application requirements will be made available later in 2015.
7. Expense by Ministry
Updated
Forecast
2014/15
Budget
Estimate
2015/16
Plan
2016/17
Plan
2017/18
Community, Sport and Cultural Development …………
221
Environment ………………………………………………… 134
Health……………………………………………………… 16,928
Transportation and Infrastructure ………………………… 812
228
150
17,444
814
259
149
17,934
814
264
148
18,471
816
($ millions)
8. Highlights of Ministry Service Plans*
1.
2.
3.
4.
Ministry of Community, Sport and Cultural Development
Ministry of Environment and the Environmental Assessment Office
Ministry of Health
Ministry of Transportation and Infrastructure
*these are abbreviated extracts of each Ministry’s 2015/16–2017/18 Service Plans chosen for their
relevance to BCRPA members and the parks, recreation and culture sector.
1. Ministry of Community, Sport and Cultural Development
Goal 1: Communities and regions are effectively governed.
Strategies
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Enable local governments to maintain core human resource capacity by providing
stable, predictable and timely funding to small and medium sized local governments
through the administration of Small Community and Regional District Grants.
Facilitate infrastructure funding to enable local governments to provide services to
residents and create the conditions needed for economic growth.
Goal 2: Communities and regions are vibrant and sustainable.
Objective 2.2: Communities have effective water and waste management.
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Strategies
 Provide targeted funding to local governments to help them achieve provincial water
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and waste management objectives.
Provide tools and resources to local governments to assist them in conserving and
protecting water resources.
Encourage local governments to use liquid and solid waste as a resource and maximize
the recovery value.
Promote the use of the best, lowest life-cycle cost approaches for local government
infrastructure projects.
Objective 2.3: Local governments are implementing strategies to
improve community sustainability.
Strategies
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Update ministry infrastructure funding programs to encourage local governments to
innovate, integrate and prioritize those projects that deliver environmental, economic
and/or social benefits.
Provide guidance, advice and tools to help local governments meet their commitments
under the British Columbia Climate Action Charter.
In partnership with the Federal Government and the Union of British Columbia
Municipalities, continue to implement the Federal Gas Tax Transfer Fund that came into
effect on April 1, 2014.
Provide tools and resources for local governments to integrate land use planning and
management decisions with transportation, infrastructure and financial planning and
decision-making.
Promote the effective development, adoption and implementation of Regional Growth
Strategies by providing advice throughout the process and assistance for resolving
disputes.
In partnership with the Ministry of Transportation and Infrastructure, the New Building
Canada- Small Communities Fund Program, a joint federal/provincial infrastructure
funding program, was launched and will assist communities in implementing priority
infrastructure projects that support sustainable service delivery.
Goal 3: Communities are culturally rich and foster sustainable jobs,
economic growth and a vibrant social fabric.
Objective 3.1: Creative people, places, and experiences exist throughout
B.C.
Strategies
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Work to ensure that B.C.’s cultural assets are maximized to drive tourism opportunities.
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Identify opportunities to grow B.C.’s creative economy and creative workforce.
Raise awareness within B.C. of the importance of a creative environment and how it
[helps create a strong foundation for our communities and] contributes to innovation
and economic growth.
Support opportunities for youth to be engaged in civic life and their communities.
Objective 3.2: The next generation of skilled workers are creative,
collaborative and innovative thinkers.
Strategies
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Build on existing expertise in the creative sector and fund projects that support new,
innovative approaches to youth engagement in the arts through BC Creative Futures, a
strategy for sustainable, long-term success in the province’s creative sector.
Prepare our children and youth to excel in the knowledge-based economy through
training skilled workers who will be creative, collaborative and innovative thinkers in
alignment with the B.C. Skills for Jobs Blueprint.
Objective 3.3: British Columbia’s arts and culture sector is vibrant,
resilient and recognized for artistic excellence.
Strategies
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Foster artistic excellence in all art forms and practices.
Strengthen engagement in the arts.
Support the richness of Aboriginal artists and communities in British Columbia.
Develop the artistic and adaptive capacity of the arts and culture sector in British
Columbia.
Engage audiences and artists reflective of the diverse demographics of the province.
Goal 4: The provincial sport sector is robust and supports increased
participation and athletic achievement.
Objective 4.1: Individuals have more opportunities to participate in
sport in order to be more physically active, healthier and achieve their
personal goals.
Strategies
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Promote opportunities for British Columbians to participate and achieve personal goals
in organized sport by supporting programs, services and organizations (e.g. provincial
and multi-sport organizations).
Provide support to initiatives that reduce geographic, financial and other barriers to
participation in physical activity and sport excellence (e.g. Accessibility 2024’s inclusive
communities initiatives).
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Improve health and educational outcomes for children through school-based and
community sport.
Increase coach and leadership development opportunities and support organizations
and programs that promote safe experiences and skill development in sport.
Work with the provincial sport sector to streamline administrative services to create
savings available for reinvestment into community programming.
Objective 4.2: Athletes have more opportunities to achieve excellence in
sport to inspire greater participation in their home communities.
Strategies
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Support B.C.’s elite athletes at all levels in their pursuit of excellence, in national and
international level events.
Help B.C. athletes excel by providing resources to athletes at various points in their
development (e.g. provincial and regional coaching, sport science expertise).
Objective 4.3: Major events support sport, economic and community
development.
Strategies
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Work with the Ministry of Jobs, Tourism and Skills Training to implement a new 5-year
sport-hosting strategy to attract more marquee events to British Columbia.
Invest in major hosting opportunities, such as the BC Games, the 2015 FIFA Women’s
World Cup of Soccer, the 2016 Wheelchair Rugby World Championships, the 2016
Women’s Fastpitch Championships and the 2016 World Women’s Hockey
Championships.
Support a wide range of regional sport events province-wide through the Hosting BC
program that bring significant social and economic benefits to communities across B.C.
Monitor the outcomes of showcasing provincial northern job opportunities during 2015
Canada Winter Games (February 2015) to assess how major sport, arts and culture
events may be an efficient and effective promotional tool to help create awareness,
attract jobs, new business and tourists to British Columbia.
2. Ministry of Environment and the Environmental Assessment Office
Goal 1: Effective, long-term action on climate change
Objective 1.1: Maintain B.C.’s global leadership on climate change
Strategies
The Ministry leads these efforts by:
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Coordinating cross-government policy work that supports communities, families,
businesses, and local governments to save energy and reduce greenhouse gas
emissions;
Goal 2: Clean and safe water, land and air
Objective 2.2: Reduced contamination from toxins and waste
Strategies
Ministry work in this area includes:
 Regulation of liquid waste discharges (sewage and industrial waste);
 Requiring that local governments have solid waste management plans, and promoting
recycling, including organics recycling, and general waste prevention;
Objective 2.3: Enhanced protection and stewardship of our air
Strategies
Ministry work in this are includes:
 Promoting clean technology standards for industrial air emissions;
 Establishing air quality objectives for B.C.’s regions;
 Working with other governments to establish a national air quality management
system.
Objective 2.4: Effective management of environmental risks
Strategies
The Province has put a significant emphasis on ensuring responsible resource development. As
part of this goal, the Ministry is working toward defining world-leading spill response
requirements for the province before accepting the transportation of additional heavy-oil
through B.C. and along its coast.
Work is under way developing new provincial policies, collaborating with the federal
government in areas under its jurisdiction, and reviewing major heavy-oil pipeline proposals to
ensure world-leading prevention and spill response is included.
The Ministry actively investigates possible non-compliance with standards and regulations. In
addition to charges and possible penalties, organizations and individuals in non-compliance are
publicly reported in the Ministry’s Quarterly Environmental Enforcement Summaries.
Goal 3: Healthy and diverse native species and ecosystems
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Objective 3.1: Well-managed and publicly available information is used
to conserve, maintain and enhance native species and ecosystems
Strategies
The Ministry uses its expertise to contribute to environmental stewardship by:
 Facilitating community initiatives to protect and restore native species and ecosystems;
Implementing research programs that support conservation;
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Developing species at risk programs, strategies and recovery plans (e.g. work on the
boreal caribou population and promoting a streamlined federal Species at Risk Act);
Collaborating with partners to prevent the spread of invasive species; and,
Supporting the government’s Cumulative Effects Framework and Environmental
Mitigation and Offsetting Policy, which provide opportunities for government and
industry to first consider where development is most appropriate, and then reduce the
impacts of those developments that do go forward.
Objective 3.2: Protect and manage natural values in B.C.’s parks and
protected areas while optimizing outdoor recreation and economic
opportunities
Strategies
The Ministry collaborates with First Nations and communities in protected area planning and
management to protect natural, cultural, and recreational assets.
To strengthen its parks and protected area system, the Ministry promotes volunteer,
sponsorship, partnership and donation opportunities. It also works closely with partners,
communities, and First Nations to optimize stewardship, recreational pursuits, and local
economic opportunities.
Goal 4: British Columbians share responsibility for the environment and
the sustainable use of natural resources
Objective 4.1: British Columbians are engaged in environmental
stewardship initiatives and are provided with the information they need
to make sound environmental choices
Strategies
The Ministry works with communities to deliver Bear Smart, a program that is a clear example
of shared environmental responsibility. It works with stewardship organizations to promote
outdoor activities that foster a connection to the natural environment. And it also helps British
Columbians make smart choices for the environment by providing timely, easily accessible
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online information and scientific data on the state of the environment, including
@LiveSmartBCca, @EnvReportBC, Environmental Reporting BC, BCAirQuality.ca and
LivingWaterSmart.ca.
Objective 4.2: Sustainable use of British Columbia’s environmental
resources
Strategies
The Ministry supports communities engaged in multi-stakeholder air and water management,
fosters collaborative approaches to sustainable natural resource management, and protects the
province’s natural resources from damaging and fraudulent activities.
3. Ministry of Health
Goal 1: Support the health and well-being of British Columbians.
Objective 1.1: Targeted and effective primary disease prevention and
health promotion.
Strategies
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Work with health authorities and other partners to continue implementation of
Promote, Protect, Prevent: Our Health Begins Here. BC’s Guiding Framework for Public
Health, the provincial framework for supporting the overall health and well-being of
British Columbians and a sustainable public health system.
Work with health authorities, physicians and other partners to implement the Healthy
Families BC Policy Framework, improving the health of British Columbians by
supporting communities, schools, workplaces and health care settings in promoting
healthy lifestyles and creating healthy environments.
Goal 2: Deliver a system of responsive and effective health care services
across British Columbia.
Objective 2.3: Sustainable and effective health services in rural and
remote areas of the province, including First Nations communities.
Strategies
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Develop local community plans for rural and remote communities to create
environments that foster healthy behaviours to improve the health of the population.
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4. Ministry of Transportation and Infrastructure
Goal 1: Improved infrastructure drives economic growth.
Objective 1.2: Identify and select priority improvement projects.
Strategies
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Identify key safety and mobility improvements to enhance the movement of people and
goods;
Develop, evaluate, prioritize and build business cases for improvement options; and
Amalgamate projects into an integrated investment strategy.
Objective 1.5: Leverage available federal funding and administer costsharing programs to support and sustain B.C.’s infrastructure.
Strategies
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Take a leadership position in partnership with other Provincial Ministries to support
local government’s priority infrastructure projects.
Goal 2: B.C.’s transportation sector is globally competitive.
Objective 2.1: Develop Canada’s Pacific Gateway.
Strategies
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Implement The Pacific Gateway Transportation Strategy 2012–2020: Moving Goods and
People; and
Undertake transportation trade network development and integration in conjunction
with the Pacific Gateway Alliance, the private sector, other levels of government and
First Nations to build capacity for long term growth.
Goal 3: Reduce greenhouse gas emissions from the transportation
sector.
Objective 3.1: Increase transit use, cycling and other alternative modes
of personal transportation.
Strategies
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In partnership with other levels of government and with stakeholders, support
provision of rapid transit and frequent bus service to make transit an attractive option;
Invest in public transit infrastructure, where supported by strong business cases;
Improve High Occupancy Vehicle (HOV) and transit priority measures;
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Encourage compact and mixed land-use around transit stations and along transit
corridors through policy and funding agreements; and
Invest in an integrated cycling and walking network.
Goal 4: B.C.’s highway system is safe and reliable.
Objective 4.3: Improve highway safety and reliability.
Strategies
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Monitor highway safety and improve high-risk locations in consultation with local and
regional authorities and stakeholders;
Maximize highway safety and reliability through both safety-focused enhancements and
low-cost improvements, such as signs, lighting, and lane markings;
Objective 4.4: Provide effective road safety enforcement, education and
programs for the commercial transport industry.
Strategies
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Establish and enforce regulations to enhance vehicle safety in B.C. and to ensure public
safety;
Participate with other jurisdictions on initiatives to coordinate and harmonize
programs, policies and standards for commercial vehicles;
Ensure information systems provide quality and timely commercial vehicle safety data for
compliance and enforcement; and
Build on existing technologies and policies to promote safety and improve efficiency for the
commercial transport industry.
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