The report on the state of the hospital on Haida Gwaii contained two important reality checks.

The NDP continue to need a major reality check on financial reality. There the NDP were, once again, demanding the BC government spend millions ($60 million) on health care (new Haida Gwaii hospital) while the NDP continue to advocate the repeal of the HST.

The 2011/12 budget is already facing a revenue shortage of $475 million, the amount that was due July 1, 2011 for implementing the HST. Given that BC’s referendum on repealing the HST violates the agreement with the federal government, the feds are not going to be paying that $475 million. Unless of course reality and sanity prevail and the Voters vote to keep the HST.

So, the NDP are working to cut $475 million out of BC’s 2011/12 budget and calling for added spending of $60 million for a new hospital on Haida Gwaii.

As a public service to the citizens of BC I am willing to make the sacrifice and accept $1 million from the NDP in order to provide a salient lesson on the effect of a significant revenue reduction . I am willing to accept any additional millions from the NDP that may be necessary in order for the NDP to learn about the effects a significant reduction in revenue has on a budget and what that reduction means for spending.

Further I will accept $130,000 from the NDP to model the effect of adding a large expenditure to a budget dealing with a large revenue reduction. (13% was arrived at by dividing $60 million demanded expenditure by the $475 million revenue reduction demanded by the NDP).

I also extend this offer to Mr Vander Zalm (adjusted to remove the additional $130,000 representing the NDP’s demanded expenditure as Mr Vander Zalm has only advocated reducing revenue by the $475 million this year, hundreds of millions per year in subsequent years and by the $1.2 billion that will need to be repaid to Ottawa).

Neither the NDP or Mr Vander Zalm should have any objection to accepting this offer as this is exactly what they are advocating the citizens of BC do with their money. There is no reason to object to acting on a personal financial level in the same manner they are advocating the province of BC act, is there?

The second reality check (and of far more concern) was the statement that, while the government was committed to getting the people on Haida Gwaii a new hospital, they did not have the $60 million needed and did not know where they could find it.

Hardly surprising in light of the Finance Minister’s statement that the government did not have any extra millions to increase spending on the missing woman’s inquiry. Or in light of the report on the same newscast that the most vulnerable of our citizens, those facing mental and physical challenges are facing cutbacks because the government simply does not have the money to meet all its obligations and demands for services. This situation is not the only cannibalizing of services here to provide services there. The government has been, over time, more and more often robbing Peter to pay Paul.

 

And that is the reality before revenue is reduced by $475 million or by the hundreds of millions (year after year) that will result from a repeal of the HST.

Why do I say this is of far more concern?

Consider this scenario: the province finds the $60 million but the people of Surrey say “Wait a minute, we need more hospital beds, the money should be spent building more hospital beds in Surrey (or Vancouver). There are only 2,500 people in Haida Gwaii and hundreds of thousands in Surrey.”

We are in that scenario. If the government manages to scrape up the $60 million by (robbing it from) further reductions in support to the challenged and other programs and if the money is spent on a new hospital on Haida Gwaii there will be no money for new hospital beds in the rest of BC.

We are just beginning resource and service wars pitting Haida Gwaii against Surrey, premies against the old; those in need of heart surgery or transplants against those in need of elective surgery……

We cannot have everything, have it now and not need to pay for it.

Reality is about to give British Columbians and our government, indeed Canada as a whole, a rude awakening with a reality hip-check.

As it says in the Tao of James: ‘Realty doesn’t much care what you believe or what you want to be true, it just IS.”