Another ICBC rate hike possible, despite no mention in BC budget
Posted February 21, 2018 12:12 pm.
Last Updated February 21, 2018 12:51 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Rate hikes at ICBC could still happen this year, even though yesterday’s budget made no mention of them. It may depend on how quickly more than a $1 billion of financial bleeding can be stopped.
Finance Minister Carole James says the $219-million surplus could have been higher if not for losses at ICBC. But at this point, she’s not ready to seek another insurance premium increase.
She admits it’s not clear if reforms recently announced by Attorney General David Eby are enough to reduce massive losses at the Crown corporation.
“Certainly, when you’re left with a $1.3-billion hole in your budget that could have been addressed by the previous government and wasn’t, it’s going to have an impact. And it certainly means that we had to look at our priorities and what we are able to afford to be fiscally responsible.”
James says discussions between ICBC executives and Eby are ongoing about how to best recover those losses within two years.
“No decisions have been made at this point. You’ve heard the Attorney General put out product reform that is going to happen and we’ve accounted for that in this budget,” she adds.
Finance Critic Shirley Bond, who was part of the former Liberal government accused of letting costs get out of control, agrees.
“Certainly, ICBC is a vulnerability and there are comments in the budget about requiring to have product reform… so that does remain an issue the NDP government will have to deal with.”
Jordan Bateman with the Independent Contractors and Businesses Association says he doubts predicted losses of $1.3 billion this fiscal year can be erased within two years.
“That’s a big number to get to. I hope they’re right. That’s what future balanced budgets are predicated on. But how you’re actually going to get there is going to take a lot of work.”
A tax on luxury cars worth more than $150,000 is going up another five per cent from 15 to 20 per cent. But that’s only worth about $10 million per year.
