After calling for a public inquiry into money laundering in British Columbia for many months, my BC Green Caucus colleagues and I were delighted with government’s announcement today that they will indeed launch such a public inquiry.

Below is the media release we sent out in support of government’s decision.

Media Release

B.C. Green Caucus Responds to Government’s Decision to Call for a Public Inquiry Into Money Laundering in British Columbia
For immediate release
May 15, 2019

VICTORIA, B.C. – The B.C. Green caucus has been calling for an independent public inquiry into the issue of money laundering in B.C. since February and supports government’s announcement today to establish a commission to begin that process.

“A public inquiry into money laundering in B.C. removes the investigation from partisan influence, protects the public interest and restores public trust,” said MLA Andrew Weaver, leader of the B.C. Green Party. “Our caucus supports this inquiry and stresses that it must be fully empowered under the Public Inquiry Act and without arbitrary limits imposed on the time period to be examined. This process must be transparent whenever possible throughout the proceedings, and the findings and recommendations must be released in a timely manner.

“The financial impact and human costs money laundering has had, and continues to have, on our province’s housing and opioid crises is staggering. British Columbians deserve no less than a full and complete account of how it was allowed to go on for so long and reach the scale that it did. They deserve knowledge of and accountability for the decisions made by individuals and regulatory agencies that contributed to the scale and severity of the impacts.”

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Media contact
Macon McGinley, Press Secretary
+1 250-882-6187 |macon.mcginley@leg.bc.ca

Today in the legislature my Private Member’s  Bill M206, Residential Tenancy Amendment Act, 2019 was called for debate at second reading.

This bill amends the Residential Tenancy Act to provide tenants with the ability to end their fixed-term lease if staying in the rental unit is a threat to their safety or security. It broadens the somewhat constraining family violence provisions introduced by the B.C. Liberal government in 2015 and gives, for example, a tenant exposed to sexualized violence by a roommate or a neighbour the right to break their lease so they can move to a safer home.

Below I reproduce the video and text of the introduction of the bill along with the accompanying press release. I also reproduce the media release our office issued upon passing of second reading.

Video of Speech

Text of Speech

A. Weaver: I move that Bill M206, the Residential Tenancy Amendment Act, 2019, be now read a second time. I’m very proud to stand today in the second reading of the private member’s bill that I introduced on March 7.

I would like to take this time to thank government for calling this bill for second reading and for their feedback on it over the last two months. I’d also like to recognize and thank the B.C. Liberals for making the first round of family violence changes that were brought forward in the residential tenancy act amendments, in 2015. Their work set the foundation for this bill.

This bill before us today was developed in close consultation and collaboration with West Coast LEAF and the Ending Violence Association of British Columbia. I’m very grateful to both of them for their advocacy and their leadership on this file. My office also spoke extensively with LandlordBC, and they were very supportive of the changes, just as they were in 2015, when the family violence provisions were first brought in. I commend them for standing against violence.

Lastly, thank you to the legislative drafters and editors who worked through half a dozen versions of this bill to make sure every word was just right and legally sound.

As canvassed in its first reading, this bill amends the Residential Tenancy Act to provide tenants with the ability to end their fixed-term lease if staying in their rental unit is a threat to their safety or security. It expands on the constrained family violence provisions introduced in 2015, and gives, for example, someone who is sexually assaulted by their roommate or neighbour the right to break their lease so that they can move to a safer home.

The term “occupant violence” was first introduced and defined in the bill presented at first reading to capture all violence associated with the property, using an adapted version of the existing family violence definition. After receiving extensive feedback from the Ministry of Municipal Affairs and Housing, the distinction between who is an occupant, who is a tenant and the overlap between the two may be somewhat unclear to some people. So I’ve tabled — and you’ll notice on the order papers — a number of amendments to try to clarify this. We’ll move them at committee stage.

In particular, you’ll notice on the order papers the amendment to section 1. We’ve changed “occupant violence” to “household violence,” and that was based on extensive feedback from legislative drafters as well.

The amendments adjust some of the language for clarity and certainty, but the original policy intent remains. For example, I propose that we replace the term “occupant violence” with “household violence, as I mentioned, to prevent any confusion that arises from using the term “occupant” and “tenant” in overlapping sections. That was advised to us by government’s suggestions, but the policy outcome, as I mentioned, is the same. This amendment act gives tenants the right to break their fixed-term leases if staying in the rental unit is a threat to their safety or security.

Another amendment that you’ll see on the order papers may be made to the commencement section to give the minister ample time for consultation with the third-party verifiers before it comes into force — a change I was happy to make as they are key to the success of this section of the Residential Tenancy Act. As it currently stands, for the family violence section, written third-party verification of violence can be provided by police, listed medical practitioners, counsellors, First Nations support workers, victim support workers and others. So the definition with respect to who can provide information in the family violence section is carried forward into this tenants or occupants or household section of the bill.

The previous Liberal government did an admirable job with the development of the regulation that they put in place with the 2015 legislation. Having regulations that extend the verification powers beyond law enforcement is vital, as not all survivors will be going to the police as their first step. Some will choose to focus on working with medical practitioners, First Nations support, counsellors, etc.

In the case of domestic violence, for example, the risk of injury or death can actually increase if a violent partner learns their spouse had contacted police or is planning to or is leaving. Having a range of professionals able to vouch for victims will allow them to choose the safest option that they believe is in their best interests.

This bill also makes it clear that the regulations listing which professionals and practitioners are authorized to provide the confirmation statement about family violence will have the same powers in cases involving household violence. Although simple in its structure, the bill will have a significant impact on the people who need it.

The Ending Violence Association of British Columbia estimates that there are approximately 60,000 incidents of sexual and domestic violence in British Columbia each year — over a thousand cases a week. In the majority of cases, that violence happens in the home. Once that happens, the home may no longer be a safe place for the victim or their children, and the implications of that shift from home to the scene of a crime are profound.

I’m proud to be advancing this bill that will give survivors the freedom to seek safety, security and the space needed to heal. No one should be forced to live in close proximity to their perpetrator. This bill supports survivors.

Media Release

Broad Support For Private Member’s Bill to Expand Protections, Support Survivors of Violence
For immediate release
May 14, 2019

VICTORIA, B.C. – Renters who are the victim of violence at their home are one step closer to having the freedom to break their lease and seek safety today after the B.C. Greens’ amendment to the Residential Tenancy Act saw broad tripartisan support from NDP and Liberals at its second reading before the House.

“I was very proud to stand today in the second reading of the Private Member’s Bill I introduced on March 7th. I thank government for calling this bill for debate and for their feedback on it over the last two months. We’ve gone through a half dozen drafts of this bill with legislative drafters making sure every word was just right and the policy intent clear and strong,” said Andrew Weaver, MLA for Oak Bay – Gordon Head.

It is unprecedented in B.C. to have opposition party Private Member’s Bills move through debate in the legislature. Later today, B.C. Green caucus’ Business Corporations Amendment Act is expected to be the first ever of its kind to pass third reading. The B.C. Green caucus hope to see the Residential Tenancy Amendment Act pass this session but are committed to seeing it through fall 2019, if necessary.

“Although simple in its structure, this bill will have a significant impact on the people who need it,” said Weaver.

“For people who are assaulted in their home, the implications of that shift – from a home to the scene of a crime – are profound,” said Sonia Furstenau, MLA for Cowichan Valley. “A space that was once a comfort can come to feel unsafe. Worst case scenario, the space is fraught with risk of a repeat assault or death…Best case, it is filled with nightmares and panic attacks.

“Some victims are able to reclaim their space, but many others will need to move to start again. At the very least, they deserve the right to choose which option is best for them,” Furstenau said. “I am proud that our office has been able to advance a bill that will give survivors the freedom to seek safety, security, and the space needed to heal.”

This bill expands on the existing family violence provisions introduced by the BC Liberal government in 2015 and was drafted and amended in consultation and cooperation with the legislative drafters and the B.C. NDP.

“B.C. Green Caucus believes updating current legislation or drafting new bills to advance protections for women and other vulnerable groups is simply good governance,” said MLA Weaver, “whether it’s workplace protections like the 2017 bill preventing employers from requiring select employees to wear high-heeled shoes, or the 2016 Post-Secondary Sexual Violence Policies Act.”

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Media contact
Macon McGinley, Press Secretary
+1 250-882-6187 |macon.mcginley@leg.bc.ca

The BC Government today released two new reports outlining the scale of money laundering that has been rampant in British Columbia over the last few years.

The first report was coauthored by Professor Maureen Maloney (SFU School of Public Policy), Professor Tsur Somerville (UBC Sauder School of Business), and Professor Brigitte Unger (School of Economics, Utrecht University). It painted an extraordinarily grim picture of widespread money laundering through British Columbia’s real estate sector totalling upwards of $7.3 billion in 2018 alone. In making 29 recommendations this expert panel noted that “a strong government response is urgently required.”

The second report comprised Part 2 of Peter German’s comprehensive three-part analysis into money laundering in BC. Part 2, entitled Dirty Money — Part 2.  Turning the Tide – An Independent Review of Money Laundering in B.C. Real Estate, Luxury Vehicle Sales & Horse Racing, expanded upon his initial analysis into money laundering in BC casinos released on March 31, 2018. The release of Part 2 followed on the heels of government releasing Part 3 of German’s analysis (on Tuesday) into money laundering in luxury cars.

Money laundering through the purchase and sale of luxury automobiles formed the basis of my questions to the Attorney General today during Question Period today. Below I reproduce the video and text of our exchange. I also reproduce copies of the media statement we issued in response to government’s release of today’s reports and my statement delivered at today’s press conference.

Video of Exchange

Question

A. Weaver: Earlier this week the Attorney General confirmed that money laundering goes beyond our casinos. Our biggest city is not just known for the dubious criminal distinction as the Vancouver model for money laundering, it’s also known as the luxury car capital of North America, fuelled, in part, by suspected criminal activity. Indeed, provincial employees identified numerous red flags connecting money laundering to the luxury vehicle export market, and despite these flags, the province issued over $85 million in PST refunds since 2013 to many suspicious individuals.

My question is to the Attorney General. He has said he has taken action on this finding, but why was this suspicious activity allowed to persist for so long? And why did it take this special report to highlight what government officials have known for many years?

Answer

Hon. D. Eby: I thank the member for the question. This is obviously a very serious issue, and I’m very grateful to Dr. German and his team. Former chief LePard was a key part of this report that uncovered this troubling information: among other things, car dealers saying they’re in the middle of money laundering; uncovering the use of straw buyers to purchase luxury cars; thousands of straw buyers acting on behalf of exporters who are the true purchasers, claiming PST rebates; people with extensive criminal backgrounds running resale operations of luxury cars, people who wouldn’t qualify for a liquor licence or other government licences but allowed to operate and run these businesses — obviously, major issues.

The member asked why it has taken so long to uncover these things. One of the major reasons that has been a theme throughout Dr. German’s reports is a lack of oversight, a lack of enforcement. We are moving quickly to address those issues. The Finance Minister is, obviously, reviewing this program, making sure that criminals don’t get PST rebates, for a starter, which seems like a pretty good start. The second piece is we’re working with RCMP, with police and with the Solicitor General’s office to ensure that the provincial government can do everything we can in terms of enforcement. We’re working with regulators in terms of their mandates.

There is a lot going on in this file to respond, and I’m very grateful that Dr. German’s bringing this stuff to our attention so that we can take action on it. And I agree with the member about: why did it take so long?

Supplementary Question

Thank you to the Attorney General for the answer. One quote in the German report on luxury cars, the section released earlier this week, stood out for me. A car dealer said: “I’m right in the thick of money laundering here.” He also said: “It’s unequivocally money laundering.”

It’s not surprising he came to that conclusion when it appears to be a regular occurrence for cars to be bought with bags of cash, sometimes in the hundreds of thousands of dollars, with zero reporting requirements in the industry. It’s absolutely crazy, what’s happening in B.C., not just in casinos but in the luxury car sector. We know the next chapter of the German report will tell us the extent of money laundering in our real estate sector.

To the Attorney General: the more we learn about this, the more we know how important it is now to have a public inquiry. The B.C. Green caucus has been calling for one for months now. Thousands upon thousands of British Columbians have been calling for a public inquiry, and just last week I introduced a petition from a federal EDA of the NDP calling on this government to bring forward a public inquiry.

My question to the Attorney General is: will this government launch a public inquiry, and if so, when?

Answer

Thank you very much to the member for the question. The member knows — and I’ve outlined for him and for the Legislature — our government’s approach on this, which has been to identify what’s happening right now and move as quickly as we can to stop it. We’ve had some success in the casino sector, stopping the bulk cash transactions. We will have success in the luxury car sector, addressing the issues that have been raised here.

The issue around public inquiry is really more aimed at: who knew what when, and are there any issues related to corruption? People want to know the answers to those questions. I understand why people want to know that. I mean, this went on for a long time. It’s the decision that is in front of cabinet, and cabinet will have a decision, and government will have a decision for British Columbians very shortly.

I thank the member for that.

Media Statement

Most recent money laundering reports support BC Green call for public inquiry
For immediate release
May 9, 2019

VICTORIA, B.C. – The two reports into money laundering in B.C. directly support the value of a public inquiry, reinforcing the B.C. Green caucus’ call for government to act.

“We saw in German’s report a direct rationale for a public inquiry. Namely, that it would improve public awareness, play a crucial role in fault finding, and would help to develop full recommendations,” said B.C. Green Party leader Andrew Weaver. “The B.C. Green caucus has been calling for a public inquiry for months, as have thousands of British Columbians. It is time for this government to start a public inquiry so that the public can get the answers it deserves and B.C. can move forward.

“Today, we discovered a much fuller picture of money laundering going on in our province. It is no surprise, but we can now be confident that illicit money has been influencing Vancouver’s housing market.

“One of the key findings of both reports was the issue of beneficial ownership. This is something I have been raising in the legislature under both the BC Liberal and BC NDP governments as a huge loophole in our system that should have been fixed long ago. Recent steps by government to address beneficial ownership through establishing a registry are encouraging, but we need to go further and end the use of beneficial ownership as a tax avoidance tool.

“We also saw that there are many sectors of our economy that have lax financial regulation, leaving them vulnerable to money laundering: from bags of cash being used to buy luxury vehicles, pianos and even to pay post-secondary fees. To deal with all of this the report recommended a ‘system-wide reset’ in criminal prosecution.

“With each new finding and each new report, we learn more about how our province has been exploited by criminals and how the systems and people charged with protecting us have failed over and over again. It is time to remove this investigation from any possible political influence, to get to the bottom of what happened, and to ensure this assault never happens again. British Columbians deserve to have their public interests protected and their trust in government restored.”

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Media contact
Macon McGinley, Press Secretary
B.C. Green Third Party Caucus
+1 250-882-6187 |macon.mcginley@leg.bc.ca

Speaking notes

Today we discovered a much fuller picture of money laundering in BC –  it is clear that illicit money has been influencing our real estate market as British Columbians struggle with the impacts of the housing crisis.

One of the key findings of this report was the issue of beneficial ownership. This is something I have been raising in the legislature under both the BC Liberal and BC NDP governments as a huge loophole in our system that should have been fixed long ago.

Aside from real estate, the German report showed that there are many sectors of our economy that have lax financial regulation, leaving them vulnerable to money laundering: from bags of cash being used to buy luxury vehicles, pianos and even used to pay post-secondary fees. To deal with all of this Germans report recommended a ‘ system-wide reset’ in criminal prosecution.

With each new finding and each new report, we learn more about how our province has been exploited by criminals and how the systems and people charged with protecting us have failed over and over again. It is time to remove this investigation from any possible political influence, to get to the bottom of what happened, and to ensure that this assault never happens again. British Columbians deserve to have their public interests protected and their trust in government restored.

We have a clear rationale for a public inquiry. German himself referenced a positive change that came out of the Charbonneau Commission in Quebec. Clearly public inquiries can be useful and result in real change.

My colleagues and I have been calling for a public inquiry for months, as have thousands of British Columbians. The housing and opioid crises have impacted every single community and it is unacceptable that criminals have been profiting from these very personal, heartbreaking challenges. We need to work together. It’s time for a meaningful, independent explanation – we need a public inquiry.

Thank you.

Yesterday in the BC Legislature we debated Bill 23: Land Owner Transparency Act, 2019 at second reading. This is an important bill that is aimed at increasing transparency in property ownership. The bill requires beneficial owners of corporations, partnerships and trusts to file a transparency declaration when there is a transfer of legal title of property or a change in beneficial ownership. It further requires pre-existing beneficial owners  to file a declaration. However, the bill will not affect individual property owners who are listed on title at the Land Title Office.

Transparency International Canada, the Canadian Chapter of Transparency International, is an anti-corruption NGO that recently published an extensive analysis of the scale of anonymous ownership of Canadian companies and Trusts. Their 2016 report states:

“Analysis of land title records by TI Canada found that nearly half of the 100 most valuable residential properties in Greater Vancouver are held through structures that hide their beneficial owners. Nearly one-third of the properties are owned through shell companies, while at least 11 percent have a nominee listed on title. The use of nominees appears to be on the rise; more than a quarter of the high-end homes bought in the last five years are owned by students or homemakers with no clear source of income. Trusts are also common ownership structures for luxury properties; titles for six of the 100 properties disclose that they are held through trusts, but the actual number may be much higher as there is no need to register a trust’s existence.“

For over five years I have been calling on government to plug a loophole that lets corporations and wealthy individuals avoid paying BC’s property transfer tax. Plugging this loophole would bring tens of millions of dollars into provincial coffers and correct an injustice that unduly penalizes ordinary BC families. While Bill 23 does not close the loophole, it does provide government with important information about beneficial property ownership in British Columbia. This will allow government  to get a sense of the scale of the problem without actually solving it. I am hopeful that once the data starts rolling in, government will quickly recognize that the bare trust loophole must be closed to ensure that property transfer tax is applied on a transfer of beneficial ownership not on a transfer of title.

Below I reproduce the video and text of my second reading speech in support of this important bill.

Video of Speech

Forthcoming

Text of Speech

A. Weaver: That took me a little bit by surprise, as it was so succinct, the previous speaker. She was so timely in her words that she was speaking in, I think, support — caveated support — to this bill, but I’m not quite sure. I was indeed listening.

It gives me pleasure to rise and stand in very strong — let me be very clear — unequivocal support of Bill 23, Land Owner Transparency Act, at second reading. This is something that is long overdue in British Columbia. I am absolutely delighted that the government is stepping up to create the important registry required to ensure that partnerships, trusts and corporations that own property in British Columbia have beneficial ownership registered in such a registry.

This legislation will require owners of such corporations and partnerships and trusts to file a transparency declaration when there is a transfer of legal title of property or change in beneficial ownership. Pre-existing beneficial owners will also be required to file a declaration. It doesn’t apply to individual owners. The ownership information of individuals is already publicly available through the land title office, as we know. You and I have to do that whenever we buy a property.

Therein lies the problem. This is an issue that I’ve been raising in this Legislature since not long after I got elected in 2013, within the context of what was going on, when I asked question after question after question to the then B.C. Liberal government about what they were going to do to close the so-called bare trust loophole, which is continuing to this day to be used to avoid paying property transfer tax and to avoid disclosure of who is buying or is not buying property in British Columbia.

This is a first step there. This is a requirement that beneficial ownership now be declared in the registry.

Let me give you an example about why that’s important. Let’s suppose I want to speculate in the Victoria or Vancouver real estate market. I assign somebody to go and buy a property — to buy that property and put it in a trust. I’m going to put it in a trust. There may be a corporation that owns that trust. The beneficial owners of that corporation may be some people who were there initially to buy that property and develop the corporation. Those individuals have no need to disclose the owners of the shares of the corporation that owns the trust. The trust is on title. The trust is all that’s on title. No matter how many times those shares in that corporation change, no matter how many times not only the beneficial but the majority ownership of that corporation changes, there is no change of the registered owner at the land title office. It is the trust, the bare trust.

We had examples of properties being flipped, typically high-end properties being flipped from owner to owner to owner, not through the sale and change of land title, but through the change of the transfer of the shares of the corporations that owned the trust that owned the land title. All the time avoiding property transfer tax, because you only pay transfer tax on transfer of title, not on transfer of beneficial ownership, which is an area that I hope government, at some point in the future, will move towards closing.

I understand the rationale that they’re bringing forward now. They want to gather the data first to see how the scale of the problem is, in order to deal with the problem rather than going straight to deal with the problem. I have some sympathy from that argument. It’s taken some time to get here, but we are here, and I’m absolutely delighted that we are here. The registry that will be here will be publicly searchable, but with some information only accessible by government and law enforcement for reasons that were articulated by the minister in her opening remarks.

The bill also allows individuals to apply to omit information if their health or, as the minister alluded to, safety is at risk from public disclosure. You might imagine, for example, the issue of someone fleeing domestic violence or someone in the witness protection program. It would be kind of odd to have the beneficial ownership of a property of someone in witness protection to be actually in their original name. So there are reasons that we have that.

Coming back to the background for this article, the confidence and supply agreement the B.C. NDP and the B.C. Greens signed back in 2017 states as follows: we will collectively focus on shared values to “make housing more affordable by increasing supply of affordable housing and take action to deal with the speculation and fraud that is driving up prices.” The B.C. Green caucus has been calling for this for I don’t know how long. We know we’ve been calling on government to eliminate the ability of buyers to hide their identities through shell companies, numbered companies and trusts.

We’ve been calling on them to improve transparency in the land title registry — not only this government, but the previous government before that — and to improve the land title and corporate registry by requiring the disclosure of beneficial ownership. Disclosure is critical to actually dealing with any issues that may be out there. We also have been, for quite some time, pleading with government to make existing and new data more regularly and freely accessible to researchers and the public. We hope that as the registry is created, and was promised in Budget 2018, that this will be the case.

This registry is, without a doubt, a significant step forward for transparency that ends hidden ownership. As we know, hidden ownership is intricately tied into speculation tax avoidance and money laundering in our housing market. One of the issues raised by the minister, and prior to that, by the member from Point Grey when in opposition, was the notion of shadow flipping, a notion where I put in a contract to purchase a property, but it’s me or my assignee who purchases that property. So I might, with the member for West Vancouver–Capilano…. I may buy his property. I may put an offer on his property with “the MLA for Oak Bay–Gordon Head, or assignee.” The member for West Vancouver–Capilano might say: “That’s a great offer. I want it.” But my “or assignee” clause is such that I could actually start assigning this contract to whoever I want, who can reassign it to whoever they want, who can reassign it to whoever they want, and they can jack up the price as we go along.

Now, steps have been taken. I think it was the previous government, or was it this government? I can’t remember. This place becomes a blur after a while. But certainly, we now have legislation that requires that any profits realized after the shadow flipping goes on actually go back to the original seller of the property.

So the member for West Vancouver–Capilano would not lose out if I were shadow flipping. Nevertheless, the transfer of the properties in between those stages would not be required even today to be disclosed.

This registry is critical. All stages of the process — transparency. The use of shell companies, as I mentioned, and trust and proxy ownership structures has obscured who has owned property in this province, undermining efforts at gathering and analyzing and allowing for an analysis of large-scale tax evasion and the data used to support this.

A report by Transparency International found that government can’t identify the owners — now get this — of almost half of Metro Vancouver’s most expensive homes. Government, whether it be Metro Vancouver or the city of Vancouver or the province or the federal government…. No government knows who more than half of the high-end properties in Vancouver…. We don’t know who owns them.

What a recipe for abuse. It’s just unbelievable this has been allowed to go on for so long. It’s absolutely unacceptable. This bill will close that. It will ensure that transparency is there.

We know that wise accountants, who know full well about the existence of the bare trust loophole, have been advising clients to avoid paying the property transfer tax by buying their property in a trust. If I, for example, were to buy a property in a trust…. Any house that I wanted to live in I buy in a trust instead of me. As soon as I buy it in a trust…. The very first time it happens, you will pay the property transfer tax. But every single time that that house is traded from thereon in, you will never pay any property transfer tax as you transfer the shares of the corporation that owns the trust from one to another.

This is one of the reasons why the higher-end homes, so many of them, have been put into trusts. When they flip, there is no property transfer tax, and the property transfer tax can be expensive.

There are also means and ways of hiding foreign ownership behind…. Some of that was indeed closed, again, by the previous government after much pestering.

We know that some of the money laundering has taken advantage of this, too, in Metro Vancouver. We still await Peter German’s report. We still await at least another chapter. We got one chapter. There’s got to be more coming. It’s clear…. We continue to push, and I will be doing so in the weeks ahead, for a public inquiry. We need a full-scale public inquiry into money laundering in this province. It is inexcusable that we have had as much as $5 billion laundered through Vancouver’s real estate market since 2012, distorting housing prices, particularly in the high-end markets.

We know…. I forget how many thousand homes are empty in the member’s riding, the member for West Vancouver–Capilano. I met with the council and mayor of West Vancouver–Capilano, who were at odds, not knowing what to do to actually go after the owners of these vacant homes that they simply are leaving there, not paying the social cost that has been historically developing by these homes being left vacant and distorting a market that would otherwise not be where it is, if it weren’t for someone laundering and nefarious activities going on.

We know, for example, just in 2016, over $1 billion of Vancouver’s property transactions have links to Chinese organized crime. Over $1 billion in one year alone had links to Chinese organized crime. That’s not counting any Russian organized crime, any Canadian organized crime, any American organized crime. Just one. It’s rampant in Vancouver, and we’ve sadly got a reputation internationally for being the home to the so-called Vancouver model of money laundering. Not a nice thing to be known for.

The president of the Law Society of B.C. stated: “This groundbreaking move by the B.C. government will increase the transparency of land ownership in B.C. and make it more difficult to use arrangements for tax evasion, fraud and money laundering. British Columbians will benefit from a fairer and more transparent real estate market.” Those are pretty powerful words of support from the president of the Law Society of British Columbia. I think that’s a strong independent endorsement of this legislation.

Transparency International has applauded the establishment of this registry — another pretty strong endorsement from an international organization. And a former director of FINTRAC has said that the province is now leading the country with this legislation. I can tell you, hon. Speaker, that if there is one thing I want British Columbia to be, it is a leader. We’re seeing, finally, leadership and transparency in the real estate sector in our province, and for that, the minister deserves a great deal of credit. I thank her, and I thank this government for bringing this forward.

You know, if ever there was a moment that we have second-guessed our decision in 2017 as to whether or not we support this side or that side in terms of a minority government, let me tell you that legislation like this makes us not question for a second that we did the right thing. The Liberals opposite had many, many years to deal with this, but they ignored it. I can’t remember how many times I stood up in this Legislature and posed questions to the then Finance Minister, asking him when he would take steps to deal with the transparency and beneficial ownership and close the bare trust loophole that was being used to avoid paying property transfer tax and also being used to launder money. The public record of this is available on my blog site. You can see it there, going back years. The answers I was getting were platitudes, because, to be honest, the members opposite simply had no idea. They had been in government too long. They’d lost ability to determine what the issues were. And there is absolutely no doubt in my mind that this issue is before us.

S. Bond: Relevance.

A. Weaver: Thank you to the member for Prince George–Valemount for calling for relevance. Thank you. And the reason why I called it to your colleague — because every time anybody in our caucus stands up, you have the audacity to stand up and call relevance, yet you’re not willing to accept others calling relevance to the other side. So it’s part of the hypocrisy that we see. I enjoy the conversation, and I will make this relevant, hon. Speaker, before you must tell me to make this relevant.

Coming back to the bare trust loophole, as I noted, I’ve been calling on government for years to deal with this, and frankly, this is a step in the right direction. Hopefully, government will move forward to closing this. I know that the market had discounted this, both the real estate market and the accounting market. They had both already discounted that government was going to close the bare trust loophole. They didn’t, but now they’re collecting data and that probably will lead it up to move for it.

Looking at this, we also need to expand this progressive approach to transparency, also to the corporate registry. Right now, the corporate registry is not searchable by director name, and as it’s hampering transparency and accountability, hopefully we’ll be able to see this transparency that we’re seeing here with respect to land-ownership move into the corporate registry as well. The Attorney General has called this issue a deliberate or grossly negligent decision that limits transparency, a benefit to firms and individuals who wish to evade accountability. I urge government as well to move beyond this and to change the corporate registry to fix this problem, in line with the spirit of the legislation before us today.

In conclusion, this legislation is an important step forward for opening up hidden ownership in real estate in British Columbia. And it’s timely. I’m very pleased the government has done it. And it’s just a shame that we’ve got to get to the position we’re in after so many years of neglect in this sector. We need to go further and crack down on tax avoidance, using the ownership structures that the data will be collected, and I’m looking forward to government stepping in to close that bare trust loophole, which many use to avoid paying property tax. I look forward to seeing information in the registry and will continue to push for action on this file and get to the root of the housing crisis.

With that, I do note the time. I would like to move adjournment of the debate and reserve my right to continue at the next sitting of the House after today.

A. Weaver moved adjournment of debate.

Today I was afforded the opportunity to address delegates at the 70^th annual convention of the Association of Vancouver Island and Coastal Communities held in Powell River. As noted on their website:

“The Association of Vancouver Island and Coastal Communities (AVICC) is the longest established area association under the umbrella of the Union of BC Municipalities (UBCM). The area association was established in 1950. It now has a membership of 53 municipalities and regional districts that stretches from the North Coast Regional District down to the tip of Vancouver Island and includes Powell River, the Sunshine Coast, the Central Coast and the North Coast. The Association deals with issues and concerns that affect large urban areas to small rural communities.“

Below I reproduce the text of my speech.

Text of Speech

I have had the distinct honour of standing before this group of leaders on a number of occasions – and each time I am grateful for the opportunity to address you.

By my count, the AVICC represents 53 distinct cities, towns, villages, districts or regional districts, stretching from the southern tip of Vancouver Island, all the way up to the Northern tip of the North Coast Regional District.

Each of you in this room has taken on an incredible responsibility to represent your friends and neighbours, helping chart a path forward for your community. For those of you who have been in office for a number of years, I think you will agree with me that the challenges that face us are getting harder to deal with and more complex, and that more than ever we need a vision that takes those challenges head on.

I will get to talking about the challenges – and even more important the opportunity that I believe we have in front of us. But before I do, I think it’s important to first acknowledge just how much we all have in common.

A couple of weeks ago, reporter Justin McElroy with CBC News published an article chronicling his four month, 12,000 kilometer trip across our beautiful province. By his count, he visited forty different communities, and had this to say about his experience:

“While our cities and towns are unique, the political dilemmas they face are pretty similar.

People need a place to live, whether it’s stable rental buildings or modular homes. They need to get around more easily, whatever form of transportation they take. They need jobs from evolving industries, and generally worry about losing those in traditional sectors. And they need to feel they’re making the world a better place for their children.

…No matter which B.C. communities we went to, that contrast existed. Every place is its own — but the conflicts and solutions to their political issues generally aren’t.”

I think this is a critical starting place. Whether it’s the challenges we face, or the opportunities we want to seize, we have more in common with each other then we have things that set us apart. And, I believe more than ever, we are all in this together.

So let’s talk about the largest challenge we face, especially on the coast – but also about the solutions that are readily available and right in front of us.

Over the last 150 years, Earth has made a transition from the past, when climate affected the evolution of human societies, to the present, in which humans are affecting the evolution of the climate.

Today we are at a pivotal moment in human history; our generation will be responsible for deciding what path the future climate will take.

You and I, as elected officials, will either be complicit in allowing climate change to despoil our world – or we can lead the way and choose a new future.

I don’t need to tell you that communities across BC – including the communities represented by the very people in this room – are on the frontier of climate change.

No level of government feels the impacts greater nor as directly as you do as municipalities.

I could spend every minute I have left one this stage with you enumerating the impacts that climate change is already having on our way of life.

You, as local leaders, see first hand the impacts on your communities. The evacuations. The water restrictions. The rivers that are drying up. The loss of species in our coastal ecosystems like the Orca or the Steelhead. The economic impacts to industries like fishing and tourism – industries every community in this room relies on is as risk.

More than anything, I think we are starting to see the impact that this instability and insecurity is having on the people who live in our communities. The insecurity – the uncertainty of where we are going – can sometimes feel overwhelming. The sense of powerlessness is the face of such a grand challenge can feel paralyzing.

To this, I say let’s look to the next generation for the drive and energy we need to overcome this feeling.

A couple of weeks ago our province witnessed tens of thousands of students walking out of class, joining the millions who marched worldwide, demanding climate action. They carried signs that read “We should be preparing for the future, not fighting for it!” and “The climate is changing, why aren’t we?”

The words of Greta Thunberg, whose actions have inspired so many – including the marches that took place – ring particularly loud for me.

“I am doing this because nobody else is doing anything. It is my moral responsibility to do what I can,” she says. “I want the politicians to prioritise the climate question, focus on the climate and treat it like a crisis.”

She is speaking to us. All of us in this room, asking us to rise to this challenge with real actions. We are the ones who can set our province on a path that shows the next generation that we will take responsibility for addressing the problems that they risk inheriting from us.

And here’s the thing – while it will absolutely take courage to see them through, the solutions are right in front of us, and will make our lives better.

So let’s talk about the path forward and how all of us collectively can build a path forward for our communities.

I’ve spoken a number of times about my vision for how BC can position itself as a leader in the 21st century economy. This may look different for every community, but there are certain things we all share in common

I believe BC has three strategic advantages over virtually every other region in the world.

1. The quality of life and natural environment allows us to attract and retain some of the best and brightest minds from around the globe — we are a destination of choice.
2. We have a highly skilled and educated workforce. Our high school students are consistently top ranked internationally. They are smart, well trained and they are ready to go to work.
3. We have access to renewable resources — energy, water, and wood — like no other jurisdiction. We have incredible potential to create a clean, renewable energy sector to sustain our growing economy.

To capitalize on these advantages, we need to start planning beyond the next election cycle. We need to focus on building a new economy that works for all of us — not just the privileged few. Policies must be based on principles and evidence, not political calculation and opportunism.

And governments must put people’s interests first – ahead of entrenched industry – because building healthy, safe, secure communities needs to be prioritized in a changing world.

I have been pushing government to prioritize the health and well-being of British Columbians since I was elected almost six years ago

By tackling climate change, with carefully designed policies, B.C.’s economy can grow in new ways. And as I said before – these solutions will actually improve our lives. That is because the only solutions to the climate challenge are ones that see us tackle inequality and focus on the health and well-being of British Columbians.

I want to give some examples of these solutions.

Earlier this spring the government released “Connecting Coastal Communities,” a report by special advisor Blair Redlin. This report outlined that over the next 9 years, 14 contracts will be needed for new vessels, and this doesn’t include retrofits of existing vessels.

However, right now BC seem fixated on giving these contracts to shipyards in other countries so that we can build vessels that use LNG.

Contrast this with Norway, who recently made headlines increasing reliance on electric ferries. And guess what? The battery technology they are using is made in Burnaby.

There is so much potential for made in BC ferries, using made in BC electrification technology which reduce GHG emissions and create local employment.

While we are accomplishing this, we can and should be rolling BC Ferries back into our provincial transportation network. I believe that ferries are a part of the highway system. They are relied on to get kids to school and for communities to access the healthcare system they pay for, That’s why it is essential that our ferry services don’t exist to maximize profits, but rather to serve the public interest. That’s why they’re there.

In forestry we must focus on the opportunities that arise when we prioritize the protection of out old growth forests.

Vancouver Island and our coastal communities have some of the most majestic forests left on the planet, drawing people from around the world.

The BC Green Caucus believes we need to protect what little old growth is left. These forests provide essential functions for our communities, protecting biodiversity, supporting watershed health and helping keep the very water we drink clean – not to mention the role they play in storing carbon.

By protecting our old growth forests, we can enhance the resilience of our communities – both the environment they rely upon, and our local economies.

There is a huge opportunity to support a retrofit program for our coastal mills to process second growth timber, and focus on developing a value added industry. This can go hand in hand with enhancing local ownership over these resources to ensure communities see the benefits, as well as have the responsibility to steward our public resources.

On another front, we have brought forward benefit company legislation, which would carve out a more deliberate space in our economy for businesses that want to pursue values beyond maximizing profits.   B.C. is already home to a number of incredibly innovative, socially responsible companies that want to play a bigger role in addressing the biggest challenges we face. And I think that it is critical that we harness this power of business to help us find solutions, and to create prosperity in an environmentally sustainable and socially responsible way. This should not be a task for governments alone. This legislation is one step to help us do this.

And, alongside making these changes, we should also be changing how we determine what success means in our economy. We need to move beyond a sole focus on economic growth measured by GDP, where we don’t incorporate the effects of the economic production and consumption on our environment or the health and well-being of British Columbians. Instead, we should be using a genuine progress indicator to measure the success of our economy. An indicator that captures   I’m excited to say that we’re working with our partners in government to develop a GPI for BC.

Making the changes needed in our economy won’t be a straight path. But the challenges in front of us are political – not technical.

Two weeks ago that was on display in the BC Legislature as all 83 members of the BC NDP and BC Liberal caucuses voted to provide new tax credits to a large fossil fuel company which will see the creation of the largest point source of GHG emissions in British Columbia.

This is a disappointing and counterproductive step. Governments can no longer have it both ways. They cannot advance status quo, polluting industries and be committed to tackling climate change and pursuing an economic pathway ground in well-being.

It is wrong to spend so much energy to expand fossil fuel tax credits and the race to the bottom economics of the fossil fuel industry.

So what do we do in the face of these actions that move us backward? We must meet them head on, showing the courage to challenge “business as usual” and the leadership to show a better pathway.

We should be using our time and resources to build the opportunity we have in BC to leverage our strengths and build a sustainable and innovative economy, and the imperative we face in getting our communities ready for climate change. This should be the time when parties are competing to present the boldest plans to British Columbians to position us for success in this new reality.

On this note I want to recognize the leadership the Mayor Lisa Helps and the City of Victoria are showing.

Their motion shows the courage to directly challenge the pursuit of LNG in this province in the face of the climate crisis, and the leadership to provide a path forward. I want to read directly from part of the motion:

“THEREFORE BE IT RESOLVED that UBCM call on the Provincial government to end all subsidies

to fossil fuel companies and to invest the money instead in climate change mitigation and adaptation activities being undertaken by local governments in a predictable and regularized funding formula…”

This is what is needed. I applaud this courage. This leadership.

The specific ways in which climate change challenges our communities may differ, but we must be united in responding to it.

I would like to end this speech with an open invitation to each of you to work with my colleagues on I to advance this vision.

Taking meaningful action, making real change, requires partnership.

I would welcome your ideas, your concerns, and your stories of success so that together we can create the bold change needed to ensure our communities can thrive as we navigate the 21st century. I look forward to the discussions to come.