The BC govt recently cancelled contracts for construction of the Burnaby Hospital’s second phase, as well as long-term care projects in Delta, Abbotsford, Chilliwack, and Kelowna.
Infrastructure Minister Bowinn Ma says the BC govt’s deficit of $13.3 billion is responsible for the cancelled projects. She says the hospital project is already hundreds of millions of dollars over its $1.8 billion budget.
Major cost overruns are now common for the govt’s construction projects including the Cowichan Hospital, Surrey Hospital, Skytrain extension, Pattullo Bridge and Massey Tunnel replacements and more. The increased costs total billions of dollars contributing to record deficits.
The projects are part of the govt’s Community Benefits Agreement (CBA) policy introduced in 2018 which is supposed to accrue benefits to the community via new infrastructure projects.
However, the CBA requires that all workers must be members of the govt’s preferred unions, eliminating the majority of construction workers in BC.
Eighty-five per cent of BC’s construction workers are members of other unions or not unionized, according to the Independent Contractors and Businesses Association.
This significantly reduces project suppliers and increases costs, demonstrated by overruns, delays, and the highest budget deficits in BC history.
These spiraling costs and deficits have undermined important community benefits including hospitals and long-term care facilities.
This is at a time when BC has a health care crisis and British Columbians are using emergency wards for primary health care.
Canceling long-term care beds also prevents seniors transitioning their housing to much-needed residential care.
When housing is disrupted, (including long-term care beds), and access to supply is reduced, the entire community is impacted.
BC seniors advocates say wait lists for long-term beds have grown by 200%, wait times have increased 34%, and the wait list has more than 7,000 people.
The spiraling costs of govt’s CBA policy contribute to undermining community benefits, including health care and housing.
This column appears Wednesdays in the Times Colonist.
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