Bill Bennett, Minister of Energy and Mines and Minister responsible for Core Review, provided a progress update announcing the first decisions of the Core Review process to ensure the best possible use of government resources and respect for the interests of taxpayers.

British Columbians expect government to manage every penny on their behalf to ensure programs are operating as efficiently and effectively as possible, and are focused on achieving government's vision of a strong economy and secure tomorrow. The following two decisions are based on this principle:

• The Pacific Carbon Trust (Trust) was established in 2008 to help develop a carbon-offset business sector. With that goal accomplished, the Trust will be transitioned into government to achieve approximately $5.6 million in savings annually by 2015/16, while maintaining government's commitment to climate leadership and a carbon-neutral public sector. The current Carbon Neutral Capital Program for K-12 has been successful and will be reviewed to see if there are affordable options for similar savings to be realized from capital investments in the health and post-secondary sectors.
• The Provincial Capital Commission will be dissolved, as it was determined government can do the commission's work directly, resulting in efficiencies and reducing administrative costs, saving taxpayers approximately $1 million annually. The commission's Community Outreach Program will be maintained within government and all of its cultural and school outreach activities will continue.

These combined savings represent the first steps towards determining what government's core responsibilities are and what programs can be delivered more effectively and at less cost to taxpayers.

Backgrounders outlining the changes to the Pacific Carbon Trust and the Provincial Capital Commission follow.

Quotes:

Bill Bennett, Minister of Energy and Mines and Minister Responsible for Core Review -

"The savings are modest, but we're committed to continuing to find these types of efficiencies on behalf of taxpayers. We made a promise to control spending and ensure the best possible use of government resources, and the decisions announced today are the first steps in the right direction."

Coralee Oakes, Minister of Community, Sport and Cultural Development -

"The B.C. government is keeping whole the cultural programs delivered previously by the commission. This includes the Capital for Kids youth travel subsidies and BC Youth Parliament. By ensuring support for these valuable programs, we can continue the important work of connecting the provincial capital to British Columbians."

Mary Polak, Minister of Environment -

"British Columbia remains committed to climate leadership and a carbon-neutral public sector. The transition of our carbon-offsets program from the Pacific Carbon Trust to the Climate Action Secretariat is just the first step in increasing the effectiveness and value of the program. As the process unfolds over the next few months, more improvements will be made."

Media Contact:

Jake Jacobs
Media Relations
Ministry of Energy and Mines and Responsible for Core Review
250 952-0628

BACKGROUNDER

Pacific Carbon Trust

British Columbians expect government to manage every penny on their behalf to ensure programs are operating as efficiently and effectively as possible and are focused on achieving government's vision of a strong economy and secure tomorrow. The overarching goal of the Core Review process is to help ensure the best possible use of government resources and respect for the interests of taxpayers.

The Pacific Carbon Trust (Trust) was established in 2008 to help develop a carbon-offset business sector. With that goal accomplished, the Trust will be transitioned into government to achieve approximately $5.6 million in savings annually by 2015/16, while maintaining government's commitment to climate leadership and a carbon-neutral public sector.

Ministry of Environment Deputy Minister Wes Shoemaker has now been appointed as sole director and trustee, and will oversee an orderly transition of the Trust into the Ministry of Environment where the purchase of offsets will be managed by the Climate Action Secretariat.

These changes will reduce administration and operating costs. The new program will require significantly fewer staff (five compared to 18). Impacted staff will be provided with opportunities to join other parts of the provincial public service.

British Columbia is recognized as a world leader in climate action. The B.C. government has been carbon neutral since 2010 and will remain committed into the future. Consequently, public-sector organizations will continue to purchase offsets to achieve carbon neutrality if they cannot lower their emissions to zero through other means. All provincial public-sector organizations will continue to pay a $25-per-tonne charge for their greenhouse-gas emissions as a concrete means to encourage efforts to reduce emissions and energy costs.

The current Carbon Neutral Capital Program for K-12 has been successful and will be reviewed to see if there are affordable options for similar savings to be realized from capital investments in the health and post-secondary sectors. This work will be incorporated into the development of Budget 2014. Carbon-neutral capital investments reduce energy costs, demonstrate clean technology, lower emissions and can help public-sector organizations finance further energy projects and improve public services.

B.C.'s investments in carbon offsets support innovation, new jobs, economic opportunities and green technologies in communities across the province. Revenue from offset sales helps make clean-technology projects a reality, resulting in economic and social benefits and reduced greenhouse gas emissions. Since 2007, B.C.'s offset investments have leveraged an estimated $300 million of private-sector investment across the province. B.C. is now well-situated to attract additional investors who are purchasing offsets for voluntary and regulatory markets. This means jobs and other economic benefits, and support for cleaner technologies to take root in B.C.

The B.C. government is confident in using offsets to help achieve carbon neutrality. Every jurisdiction in the world that is showing leadership on climate action uses offsets as one part of a comprehensive approach. This includes the European Union, California, New Zealand, China, South Korea, Japan and many other governments around the world.

B.C. has been recognized by organizations such as the International Emissions Trading Association and others as a leader and innovator in developing offsets. B.C.'s carbon-offsets system is based on international standards. Every offset in the current portfolio has been twice audited by third-party experts, has passed those audits and has fully met the requirements of B.C.'s Emission Offsets Regulation.

B.C. is committed to continuously improving policies and programs as they relate to offsets and will continue to collaborate with experts and stakeholders to ensure they are effective.

Contact:

Media Relations
Ministry of Environment
250 953-3834

BACKGROUNDER

Capital Commission functions move into government

British Columbians expect government to manage every penny and ensure programs and activities are focused on achieving government's vision of a strong economy and secure tomorrow by operating as efficiently and effectively as possible. The overarching goal of the Core Review process is to ensure the best possible use of government resources and respect for the interests of taxpayers and balance the budget on their behalf.

Over time, activities of the commission such as cultural event funding and property management have come to duplicate services now provided by the B.C. government, making a stand-alone entity no longer necessary.

The B.C. government will maintain public services, specifically community-outreach programs and cultural programming such as the Capital for Kids youth travel subsidies, BC Youth Parliament and access to the commercial properties currently provided by the commission. The commission's staff will be transferred to B.C. Public Service ministries.

Heritage properties will maintain their heritage status. Through the Heritage Branch at the Ministry of Forests, Lands and Natural Resource Operations, the B.C. government builds partnerships with other levels of government, non-profit organizations and the private sector to provide support and investment for community heritage.

The Ministry of Transportation and Infrastructure will take responsibility for the Belleville wharves, placing an important economic asset under a strong management regime capable of supporting future development for transportation access, commerce and tourism.

Early in 2014, the B.C. Legislature will call a vote to repeal the legislation that created the commission. Over the next several months, the commission will continue to provide full services to the public under the direction of its board. The board will help with transition plans that will see Shared Services BC - the lead agency that supports property management for the Province - assume responsibility for all commission properties, including St. Ann's Academy, the former CPR Steamship Terminal, Crystal Garden and the Victoria Tourism Information Centre. Shared Services BC will work with the commission to ensure the functions of the properties continue, including providing valuable services to the public previously provided by the commission.

Transferring the commission's roles to other provincial organizations that provide very similar services and supports will align with government's mandate to carefully control public spending, manage government as efficiently as possible and make the best use of public resources.

Established in 1956, the commission is a Crown agency of the Ministry of Community, Sport and Cultural Development that manages B.C. government properties in the Victoria region and provides cultural programs celebrating British Columbia's provincial capital.

Contact:

Ministry of Community, Sport and Cultural Development
250 387-4089