Yesterday, in an internal email sent to staff, Black Press Ltd. British Columbia chief operating officer Rick O'Connor acknowledged executives spoke with Victoria News reporter Brennan Clarke and editor Keith Norbury about "the impact a potential loss of advertising from the automotive sector" would have on the company. This, after the newspaper published a story about a cross-border car shopper. But Mr. O'Connor has assured staff Mr. Norbury's firing wasn't based on the "writing of this article." Nor was Mr. Clarke asked to resign. And, in an subsequent interview with Public Eye, Mr. O'Connor stressed Black Press's editorial staff don't need to consider the impact their articles can have on advertising.

In his email, Mr. O'Connor writes that Mr. Clarke's story, "caused the publisher, Penny Sakamoto and Island group president Mark Warner, concern for valid reasons. The article wasn't balanced in our opinion and didn't explain the pitfalls of buying a vehicle in the U.S. Mark and Penny had a meeting with the reporter, Brennan Clark, regional editor, Keith Norbury, and group editor Brian Lepine to express their concerns and explain the impact a potential loss of advertising from the automotive sector would have on these newspapers."

"Neither Penny nor Mark knew the article was scheduled to run and asked to be apprised in future when potentially controversial articles or editorials were to run," continued Mr. O'Connor. "This is common practice in all of our newspapers. We did not ask for anyone to resign as a result of writing this article. Not did we base our decision to change editors on the writing of this article."

Indeed, according to Mr. O'Connor, it was "another incident" later in the week that led to Mr. Lepine's resignation "and our decision to make a change with respect to regional editor Norbury. The details of what transpired remain confidential and our treatment of Mr. Norbury is very fair given his long years of service to Black Press."

But what about Mr. Warner's earlier statement that Mr. Norbury's firing was, in part, connected to an advertiser complaint? Speaking with Public Eye, Mr. O'Connor said, "I don't know what he said to you. But, at the end of the day, the single incident of running that article and the ramifications that the paper suffered as a result of it...did not lead to any consideration of the decision to make a change at the top with Keith."

Asked whether editorial staff need to consider the impact their stories have on advertising, Mr. O'Connor said, "No. But they need to understand that, if they don't have balance, then we're wide open to whatever criticisms come our way - whether it's related to advertising or not. In this case, the story was related to an advertising sector we're very strong in. And we took the brunt of their unhappiness" - referring to the fact advertising from the automotive sector dropped the week after Mr. Clarke's article was published.

But is it appropriate for executives to talk to editorial staff about the impact their stories can have on advertising, as happened in the case of Messrs. Clarke and Norbury? "Do you think that there is no link between advertising and editorial," responded Mr. O'Connor. "I think there's a huge difference between paid daily newspapers and free community newspapers" - like the Victoria News.

"In a paid daily newspaper upwards of 30 percent of the revenue comes from subscriptions or circulation - where people are making the decision to buy that paper based on what they like and what kind of editorial materials is in that product," he explained. In a free community paper where you're putting out 100,000 copies, you're dependent on one source of advertising - and that's display advertising, classified advertising or insert advertising."

"The financial health, which pays for the salaries of everyone involved in the enterprise, is involved in making sure you have a healthy advertising product. And if you purposely go out and run editorial that could seriously jeopardize that, your business is in jeopardy. So there is a direct link. Unfortunately, I don't get 30 percent of my revenue from paid circulation like The Times Colonist does."

The following is a complete copy of the aforementioned email.

***

To all editors, publishers and reporters

From Rick O'Connor,
Chief Operating Officer,
Black Press

As you may be aware, we have recently gone through a difficult editorial situation with staff at three of our five Victoria based community papers. We had a Victoria News reporter and our Vancouver Island Group Editorial Manager resign and provided a buy-out offer to a long-time regional editor. Normally we don't comment on personnel matters, however, because of the media interest in the Victoria market and some of the e-mailing, phoning and online blogging which has taken place, I felt it was important to respond internally and provide you with the facts of what transpired.

Our Victoria News ran a front page article on "the ease of car buying in the U.S." This article caused the publisher, Penny Sakamoto and Island group president Mark Warner, concern for valid reasons. The article wasn't balanced in our opinion and didn't explain the pitfalls of buying a vehicle in the U.S. Mark and Penny had a meeting with the reporter, Brennan Clark, regional editor, Keith Norbury, and group editor Brian Lepine to express their concerns and explain the impact a potential loss of advertising from the automotive sector would have on these newspapers. Neither Penny nor Mark knew the article was scheduled to run and asked to be apprised in future when potentially controversial articles or editorials were to run. This is common practice in all of our newspapers. We did not ask for anyone to resign as a result of writing this article. Not did we base our decision to change editors on the writing of this article.

Reporter Clarke turned in his resignation notice the next day and outlined to us that he had been considering this decision for quite some time. Later in the week another incident occurred which led to the voluntary resignation of group editor Brian Lepine and our decision to make a change with respect to regional editor Norbury. The details of what transpired remain confidential and our treatment of Mr. Norbury is very fair given his long years of service to Black Press. Our relationship with Brian Lepine is also respectful of what he has accomplished during his years with Black Press. He is remaining with us during this transition phase until new editor Kevin Laird of the Nanaimo News Bulletin takes over.

Our Victoria papers have recently started to prosper after many years of difficult operations. Being "free community papers" in a large urban market competing against a strong daily means that we have to be constantly working to find a readership niche which will give us a competitive advantage. We believe strongly there is a role for community newspapers to play in this market and take very seriously the issue of editorial integrity and overall editorial quality. Our goal in Victoria is to obtain a minimum of 60 per cent readership, much like the rest of our B.C. markets. With the proven leadership ability of new editor Kevin Laird working with publisher Penny Sakamoto, we feel we have the right ingredients for future success of our Victoria community newspapers.

Black Press has grown and prospered in Western Canada through the development of quality community newspapers and we will continue to do so.

If you have any questions on this matter, feel free to contact me at any time.

Regards,

Rick

Earlier, we reported the firing of Victoria News editor Keith Norbury was connected, in part, to an advertiser complaint concerning a story about a cross-border car shopper. This, according to Vancouver Island News Group publisher Mark Warner. But, in a subsequent email interview with Public Eye over the weekend, Dave Wheaton Pontiac Buick GMC Ltd. dealer principal Dave Wheaton added, "I never did complain about the article until I was asked (about it by a news group representative) and it was several days after it had run. My opinion was solicited and I gave it to them in an honest, straight-forward manner, in a meeting, at their request, in my office. They phoned me. I never called them.” Asked for comment, news group vice-president Kirk Freeman said Mr. Norbury's firing "is an internal personnel issue. And what has transpired had nothing to do with Dave Wheaton." In an earlier interview, Mr. Wheaton also stated he hadn't and wouldn't pull any advertising with the news group as a result of the story.

Last week, newly-appointed provincial New Democrat transportation critic Marine Karagianis told us the fact she isn't from Vancouver will actually help her hold Lower Mainland transportation initiatives to account. And Society Promoting Environmental Conservation campaigner David Fields seems to agree. Speaking with Public Eye, he said, "I haven't had a chance to speak with her directly. But her comment that being an outsider gives her a certain freedom in dealing with issues in a new way makes me optimistic. And I think that - give what I know of her record - she seems to be on the greener side of the NDP. So there's a good opportunity here that the NDP will come out on the side of right" and oppose the Campbell administration's controversial Gateway Program.

Earlier, we reported the provincial government had issued 25 permits to Fred. Olsen Marine Renewables Ltd. allowing the company "to investigate the development" of tidal power projects at locations across British Columbia. In an interview with Public Eye, Natural Power Consultants Ltd. business manager Mark Rogers explained his company - which advises on wind energy projects - has been hired by the Fred. Olsen Group "to put together a porfolio of wave and tidal power sites in B.C."

"For the most part, the industry is pre-commercial," he explained. But "wind is now a mature business. And the next emerging technologies are going to be in wave and tidal. So, for us, it's a great interest. And our client is interested in being there when commercial technologies really hit the market." Mr. Rogers is also sits on the board of directors for Fred. Olsen Marine Renewables.

Yesterday, the British Columbia Lottery Corp. announced it had reached a $603,362 severance agreement with its former president and chief executive officer Vic Poleschuk - who was fired three days after ombudsman Kim Carter revealed a significant "lack of scrutiny for the 99 per cent of the winning (lottery) tickets and 80 per cent of the prize money paid out for wins under $10,000." But Mr. Poleschuk isn't the first senior civil servant to hit the jackpot following a scandal. In the wake of the Doug Walls affair, children and family development deputy minister Chris Haynes was sacked and received $289,000 in severance and $233,000 in accumulated vacation pay. This, after an investigation by Public Eye revealed Mr. Walls had been put in charge of Community Living British Columbia even though senior staff were aware serious allegations of fraud had been made against the former Prince George car dealer. The investigation also revealed government wrote off a $484,939 bill owed by a consulting group run by Mr. Walls, Premier Gordon Campbell's cousin-in-law.

The ministry of labour and citizens' service has established a carbon neutral working group as part of the government's throne speech commitment to reduce its greenhouse gas emissions. Orest Maslany, the green buildings manager for the ministry's accommodation and real estate services division, has been appointed the working group's corporate initiatives director. The following is a complete of the email announcing that appointment - and two others connected to the group.

Sent: Tue, August 21, 2007 12:03 PM
To: LCS All Staff
Subject: Carbon Neutral Government Staffing Announcement

This year’s Throne Speech made some strong environmental commitments, one of which was for government to become "carbon neutral" by 2010. Our ministry has a leading role to play in this initiative because of our responsibility for some areas where ministries might look to reduce their greenhouse gas emissions, such as the management of buildings, government vehicles, procurement and travel.

To further support government's mandate to be a carbon-neutral government by 2010, we have established a core group of employees within the Client Services Division to focus on this very important initiative.

Orest Maslany has accepted the position of Director, Corporate Initiatives. Orest’s primary focus will be on co-ordinating the LCS role regarding government’s commitment to carbon neutrality.

Orest brings a strong background in change management to this role, having held the positions of Director of ARES’ Project Management Office and Manager of Green Buildings B.C. Orest’s positive attitude and depth of experience in the field of sustainable solutions provide him the skills necessary to work with the various partners within LCS, and make this new government initiative a wonderful example of the value that our ministry brings to our clients and stakeholders.

Colleen Olague has accepted the position of administrator for the Carbon Neutral Working Group, and Sandra Tanaka will be the Project Manager for the Carbon Neutral Working group.

Colleen comes from Procurement and Supply Services, Common Business Services, where she held the position of Protocol Giftware Program Administrator, and was responsible for the purchasing, sales and marketing of Provincial Government giftware. In addition to her natural enthusiasm and organizational capabilities, Colleen brings a wealth of experience from the federal government and private sector to this position.

Sandra comes from our ministry’s Project Management Centre of Excellence. With over 10 years experience in the provincial government, Sandra has worked in a number of ministries and in a variety of roles including researcher, policy analyst, manager, treasury board analyst, and project manager. Recently, Sandra was the project manager on another ministry initiative: the Healthier Choices in Vending Machines in BC Public Buildings.

Please join me in congratulating Orest, Colleen and Sandra as they assume their new responsibilities.
Other ministry representatives on the Carbon Neutral Working Group are: Michael Masson, ARES; Marilyn Redivo, WTS; Brian Bowman, WTS; Ron Colquhoun, WTS; Brian Sugrue, CBS; Duncan McLelland, CBS; and Jennifer Smyth, CPP. Members of the ministry executive will be involved on an ongoing basis.

Reclusive Norwegian shipping magnate Fredrik Olsen appears to have taken an interest in the province's ocean energy potential. Earlier this year, the government issued 25 permits to Fred. Olsen Marine Renewables Ltd. allowing the company "to investigate the development" of tidal power projects at locations across British Columbia.

In an email to Public Eye, agriculture and lands communications director Liz Bicknell explained, "The number of sites is high because of the nature of this type of IPP; the probability that all the sites will be feasible for generating tidal power will be extremely low and it is not inconceivable that none of the sites will be found to be feasible."

The firm applied for those permits using its company number rather than its name. According to the corporate registry, Fred. Olsen Marine Renewables directors include United Kingdom residents Jeremy Dowler and Stuart Henderson Hall, as well as Mark Rogers - a Vancouver-based business manager with Natural Power Consultants Ltd. Mr. Rogers hasn't returned a call, placed earlier this week, seeking comment. Natural Power Consultants has developed wind farms in the United Kingdom on behalf of Fred. Olsen Renewables Ltd.

The Campbell administration has been wrangling with Ottawa for at least the past four years to open up development in the Dominion Coal Blocks - a 20,235 hectare chunk of federally-owned, resource-rich land in the East Kootenays. But good luck finding out what's on the negotiating table from the provincial government. In response to a freedom of information request, Public Eye has received 50-pages of correspondence between Victoria and the federal governments detailing those discussions. But most of the information on those pages has been severed because their release could be "harmful to intergovernmental relations or negotiations."

The records do, however, show securing provincial access to the blocks would make it a lot easier for companies to tap into the coalbed methane gas deposits located in the surrounding Crowsnest coalfield. And that has environmentalists concerned.

In an email to Public Eye, Wildsight energy and mining program manager Casey Brennan says this is another example of how the "provincial government has fully adopted the Alberta governance model of 'have our cake and eat it too'. They are attempting to turn every piece of this province including protected areas into marketable commodities."

But "the long term cumulative impact of rapidly expanding front country recreation and lifestyle development and backcountry industrial tourism and resource extraction is being completely ignored. We as stewards of our own provincial land are being let down by the people we elected to direct land use and protecting our natural heritage." The following is a complete copy of the relevant portion of those records.

***

The Dominion Coal Blocks
Briefing paper prepared by the British Columbia Ministry of Energy and Mines for the Department of Natural Resources Canada

October 15, 2003

Summary: Removal of uncertainty surrounding the management of and access to subsurface resources in the Dominion Coal Blocks (DCB) is expected to have a significant positive impact on the private sector's ability to develop subsurface resources in the surrounding Crowsnest coalfield. By working together, the province and federal government could advance prospective economic development in the area, for the benefit of local residents and First Nations.

What are the Dominion Coal Blocks (DCB)?

The DCB are two parcles of land located in the east Kootenay region of British Columbia, which total 20,235 ha (50,000 acres) in size (see attached map). The federal interest in the DCB arose through a transfer from the Canadian Pacific Railway (CPR) in 1905. The CPR became entitled to the parcles through its association with a railway company located in the Kootenays. The Kootenay railway company had original acquired the parcels (and other lands) through a grant of the surface and coal from the provincial government. The result is that the federal government owns the surface and any coal in the DCB, and the province owns all other subsurface resources, including petroleum and natural gas.

Coal Resources in the DCB

The DCB are located in the Crowsnest coalfield, which is approximately 60,000 ha in size. The smaller, northern parcel of the DCB (parcel 73) is estimated to have a total coal resource of 76 million tonnes accessible through surface mining.

Teck Cominco Limited (Teck Cominco) is the owner of the surface and coal in the lands surrounding Parcel 73. Teck Cominco operates the open pit Elkview coal mine approximately eight kilometres north of Parcel 73. The southern and larger parcel (parcel 82) has an estimated coal resource of 230 million tonnes accessible through underground mining. Fording Canadian Coal Trust (Fording) operates the open put Coal Mountain coal mine approximately five kilometres to the east of Parcel 82.

(s. 21, 16)

The two coal companies have recently joined together to form the Elk Valley Coal Partnership.

The federal ownership of the coal in the DCB has created uncertainty for both industry and the province as to how development would be managed.

(s. 16)

Coalbed Gas (CBG) Resources in the DCB

In addition to the coal resource, approximately 6.57 trillion cubic feet (tcf) of the 12 tcf of coalbed gas (CBG) (also known as coalbed methane gas) currently estimated to be found in the Crowsnest coalfield is located in the DCB.

In April 2003, the province passed the Coalbed Gas Act, which confirmed that CBG is a natural gas owned by the owner of the natural gas. Except for a few small parcels owned by Shell Canada, the province owns all petroleum and natural gas rights in the Crowsnest coalfield.

(s. 16)

To make CBG development economic, producers require large contiguous areas for exploration and production.

(s. 16, 21)

The prospects for development of CBG in the Crowsnest coalfield would be generally enhanced by providing the same tenure and resource management regime in the DCB as in the surrounding provincially owned areas. As noted, companies require large contiguous areas for CBG development. Uncertainty associated with the DCB complicate the province's ability to provide tenure to meet these needs.

Access to other Petroleum and Natural Gas Resources

(s. 16), the province is the owner of petroleum and natural gas. On other lands in the province, if there are problems between the petroleum and natural gas tenure holder and the surface owner, the Mediation and Arbitration Board can approve the terms of surface access. With respect to tenure on the DCB, it is unclear both as to how a tenure holder would acquire surface access and as to how issues relating to that access would be resolved.

First Nation Interests

The Crowsnest coalfield lies within the asserted traditional territory of the Ktunaxa/Kinbasket Tribal Council (K/KTC).

(s. 16)

Future of the DCB

Until the 1980's, the federal government had interests in coal lands in other provinces. All of these coal lands were returned to the provinces in question.

(s. 16)

Interim Resolution

(s. 16)

Transportation is a headlining issue in the Lower Mainland right now. The Campbell administration is in the process of restructuring TransLink. And it's laying down up to $3 billion worth of road and bridge improvements as part of its controversial Gateway Program. But the provincial New Democrat's new transportation critic, Esquimalt-Metchosin legislator Maurine Karagianis, says she thinks the fact she's not from Vancouver will actually help her hold those initiatives to account.

In an interview with Public Eye, Ms. Karagianis said, "It's probably better that I - as a critic - am not directly involved politically in the local communities over there. I think it allows me to bring more objectivity to both those issues and to look at them from a much broader perspective and look at them without the local politics and local attachments interfering with my views. So I think it does give me a better opportunity to look at this in a cold-blooded way and to look at it in a practical and political sense without a lot of background in the community affecting my thinking one way or another."

That being said, Ms. Karagianis added she has "great concerns" about Gateway because "it doesn't have any sustainable solutions attached to it." Although she intends to "continue to meet with the communities affected and gather information" in advance of the fall, when she says the party will finally announce its position on the 19-month old highway-expansion program.

Ms. Karagianis took over the job of transportation critic from Vancouver-Kensington legislator David Chudnovsky earlier this week as part of the New Democrat's shadow cabinet shuffle. The party is presently split on whether to support Gateway - with Mr. Chudnovsky being seen one of the caucus members opposed to the program.

Earlier, we reported on the controversial firing of Victoria News editor Keith Norbury. And now, Public Eye has learned Black Press Ltd. - which owns the newspaper - is looking for a Greater Victoria editorial director. This, according to an internal job posting distributed yesterday. Brian Lepine is presently the company's Vancouver Island editorial director. Publisher Penny Sakamoto hasn't yet responded to an email requesting comment nor has Mr. Lepine returned repeated calls from Public Eye.

The Vancouver Island News Group has declined further comment on Victoria News editor Keith Norbury's controversial firing. Earlier today, we provided publisher Penny Sakamoto an opportunity to respond to criticism levelled against the group by Canadian Association of Journalists president Mary Agnes Welch. Her response: I "understand you were able to reach (president) Mark Warner (last week), so I (think) that should do it from our company's point of view."

Earlier today, Canadian Association of Journalists president Mary Agnes Welch questioned the controversial firing of Victoria News editor Keith Norbury - which was, in part, connected to an advertiser complaint. But she's not the only one raising a red flag. In an interview with Public Eye, associate professor Klaus Pohle, a specialist in media ethics and newspaper management at Carleton University's school of journalism, said, "You'd like to think that these things don't happen. But, obviously, they do. But, when they do happen, it comes as kind of a shock...If you start caving-in to advertisers complaints or anybody's complaints, based on the kind of discussion that went on - that this was one person's opinion and so-on and so-forth - then you're going to be publishing nothing but fluff and PR pieces that don't serve the public but serve the advertiser. And that's not what journalism is supposed to be all about."

"It may be true that this is one person's opinion," Prof. Pohle continued, referring to the source of the complaint - a story about a cross-border used-car shopper who saved $13,000 buying by purchasing a Mercedes ML350 in Portland rather than from a local dealer. "But so what? The response of the car dealer" who complained about the story "is also one person's opinion. That's what journalism is. It's reporting people's opinions. And this opinion didn't sit well with an advertiser. And, unfortunately, the journalists seem to have paid a very heavy and sad price for this." Prof. Pohle added the fact the dealer's opinion wasn't included in the piece doesn't, to his mind, constitute a firing offence in and of itself.

The starting pistol has yet to be fired for the Vancouver-Quadra federal Conservative nomination race. But some party members are wondering whether University of British Columbia Sauder School of Business law division lecturer Deborah Meredith will actually make it to the finish line - suggesting she could drop out in favour of former BC Cancer Foundation president and chief executive officer Mary McNeil. But, when asked today if she'd given any thought to dropping out, Ms. Meredith said, "No." And she also said no one had approached her about taking her name off the ballot. Meanwhile, on Friday, former Richmond nomination candidate Howard Jampolsky announced he has decided against putting his name on that ballot. The following is a complete copy of that announcement.

Howard Jampolsky
5531 Cantrell Rd • Richmond, BC V7C 3H3

PRESS RELEASE

FOR IMMEDIATE RELEASE
Friday, August 17, 2007

HOWARD JAMPOLSKY DECLINES OFFER TO
RUN IN VANCOUVER-QUADRA BY-ELECTION

RICHMOND - Howard Jampolsky announced today that he will not seek the Conservative Party nomination in Vancouver-Quadra for the upcoming by-election.

Following the Richmond nomination in which he finished second, Jampolsky was approached by several Conservative Party and Jewish community leaders in Vancouver urging him seek the Vancouver-Quadra nomination.

"It is a great honour to be asked to run, and I want to publicly thank those who approached me, those who offered their time as campaign volunteers, and those who pledged funds," Jampolsky stated.

Jampolsky stated he believes both of the current nominees would make outstanding candidates and MP’s, and pledges his full support to the successful nominee, but added he does not believe it is appropriate to interfere with the internal democratic process of another riding by endorsing either nominee during the nomination period.

In declining to run, Jampolsky stated that he is dedicated to Richmond - the city of his residence - and will continue his work to improve his community in the areas of public safety, better integration of the Vancouver International Airport into the community, as well as continuing his work as a Council appointee to the Richmond Intercultural Advisory Committee.

Earlier this year, Jampolsky was successful in lobbying the City of Richmond for the installation of Automated External Defibrillators (devices used to restore proper heart rhythm during cardiac arrest) in Richmond’s two ice arenas. He has also been working with YVR, Nav-Canada, and several airline operators in trying to find ways to reduce excessive noise from certain aspects of airport operations.

The president of the Canadian Association of Journalists is weighing-in on the controversial firing of Victoria News editor Keith Norbury, who was forced out after publishing a story about a cross-border used car shopper. In an interview this morning with Public Eye, Mary Agnes Welch said, "We don't know all the details of the relationship between the editor and the newspaper. There could have been exacerbating circumstances. But, if in fact, it was this story - and one angry advertiser - that led to the departure of the editor and possibly one of the senior reporters I think this really calls into question the credibility of the paper. And, if I were a reader, I would wonder how many stories got either spiked because of an advertiser complaint or downplayed or soften because somebody complained or because the paper was fearful of offending an advertiser. As a reader, I would really start to question the independence of the paper."

"It's really so petty in many ways," Ms. Welch added. "Newspapers are a business. We are, to some degree, at the mercy of advertisers. It's just really unfortunate that - over such a small story - the newspaper would apparently cave like that."

In an earlier interview with Public Eye, Vancouver Island News Group president Mark Warner confirmed Mr. Norbury's firing was, in part, connected to a complaint by Dave Wheaton Pontiac Buick GMC Ltd. dealer principal Dave Wheaton. Reporter Brennan Clarke, who wrote the offending article, resigned earlier last week. The Victoria News, which is owned by Black Press Ltd., is part of the Vancouver Island News Group.

Earlier, we exclusively reported on the controversial firing of Victoria News editor Keith Norbury. The firing - which happened Friday - was, in part, connected to an advertiser complaint about an article written by reporter Brennan Clarke. Mr. Clarke resigned earlier in the week. And those departures are going to leave the Vancouver Island News Group's capital city newspapers a bit short-handed. After all, fellow reporter Thomas Winterhoff also cleaned out his desk last week, having been hired as a communications officer at the University of Victoria. And Messrs. Clarke and Winterhoff's coleague Andrea Lavigne, who is leaving on a trip to Asia, is scheduled to say her goodbyes this week. Meanwhile, former Esquimalt News editor Vern Faulkner - who had been effectively working as an assistant editor for the Oak Bay News, the Saanich News and the Victoria News - departed on July 25 to become managing editor of The Prince Albert Daily Herald. And Victoria News reporter Mark Brown packed his bags on May 1 to teach English overseas.

This morning, on Public Eye Radio, provincial Liberal legislators Jeff Bray and Sheila Orr share their thoughts on the electoral boundaries commission's preliminary report. Fair Vote BC president Bruce Hallsor gives his take on that report. And University of Victoria journalism professor Lynne Van Luven weighs in on the recent firing of Victoria News editor Keith Norbury. Also on the show: our rabble-rousing panel - Don Anderson, Alex Tsakumis, Bob Russell and Allan Warnke - debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us, leave a comment below or phone (250) 386-1161 during the show.

Victoria News editor Keith Norbury was fired today, Public Eye has exclusively learned, two days after one of his senior reporters - Brennan Clarke - resigned. The firing follows an advertiser complaint about an article published earlier this month by the newspaper. In an interview, Vancouver Island News Group president Mark Warner confirmed Mr. Norbury's forced departure was, in part, connected to the complaint. "There were a number of issues," he said. "But that was certainly one of them." Mr. Warner declined to say what those other issues may have been. Nor would he elaborate on how the complaint was connected to the firing.

The article, authored by Mr. Clarke, discussed the case of a Broadmead resident who saved $13,000 by purchasing a Mercedes ML350 in Portland rather than from a local dealer. The woman, Rebecca Schevenius, and her friend are "planning to publish an 18-page how-to pamphlet entitled 'How to Import a Car into Canada' for others interested in testing the cross-border used car market."

In a interview with Public Eye earlier this afternoon, Dave Wheaton Pontiac Buick GMC Ltd. dealer principal Dave Wheaton said, "I was upset with the paper for doing it because it was one person's opinion" - referring to Ms. Schevenius. "And they are by no stretch of the imagination an expert at it. And why that was news I don't know."

"From a customer's perspective, the risk of buying a U.S. car over buying a local Canadian car is just not worth it. The declaration of history and accidents and ownership and state registration is just not the same as it is in Canada," he explained, adding most cross-border car shoppers don't get "as much of an edge" in price as Ms. Schevenius.

As a result of the article, Mr. Wheaton said, "I barked at them. But that's normal. They have a responsibility to their readers. But they also have a responsibility to the business community as well. And that was a poor article. And it's just not true."

And did he get a favourable response to that barking? "Oh absolutely. Oh sure. They understand. I just don't know how that gets past an editor's desk. I think they know perfectly well, if you read it, it's one person's experience. It's just not right." Mr. Wheaton confirmed the news group offered to publish a follow-up piece. "But I just feel it adds more fuel to the fire. So I'd just as sooner (the story) fades away."

Asked whether he had pulled or would pull any advertising dollars in the future, he responded, "No. I'm a quiet protester. No." He later added, "I don't have a contract with any of the medias - none. I am a by-the-day business. Somedays I advertise and somedays I don't. I don't run a very sophisticated business from that perspective. So I do it as I see fit."

For his part, Mr. Warner declined comment on the specifics of his conversation with Mr. Wheaton. "I'm not going to discuss that - about what I talk to with a client," he said. Mr. Warner said he didn't know whether Mr. Clarke's resignation was connected to Mr. Wheaton's complaint.

Update: In a subsequent interview with Public Eye, Mr. Wheaton stated, "I never did complain about the article until I was asked (about it by a news group representative) and it was several days after it had run. My opinion was solicited and I gave it to them in an honest, straight-forward manner, in a meeting, at their request, in my office. They phoned me. I never called them."

The following is a complete copy of the aforementioned article.

***

Strong Canadian dollar encourages car buyers to cross the border

Rebecca Schevenius has always been willing to go that extra mile for a good bargain.

Or, in the case of the Mercedes ML350 she purchased last month, an extra 300 miles.

Schevenius, a Broadmead resident, says she saved about $13,000 by shopping for the vehicle on the Internet and then flying down to Portland to pick it up.

Prices for quality used cars in the U.S., historically lower than in B.C. to begin with, have become even more attractive due to the strong Canadian dollar.

"With the foreign exchange rate the way it is, it really is on the purchaser's side to go down to the states and buy a car," Schevenius said. "I love a good bargain."

The Mercedes, listed at $22,000 in Portland, would have cost closer to $38,000 north of the border. Even after the taxes were paid, the savings more than justified the time and airfare it took to bring the vehicle back.

Vehicle importers do not have to pay duty on car made within the borders of the North American free Trade Agreement, she said.

Schevenius and a friend are planning to publish an 18-page how-to pamphlet entitled "How to Import a Car into Canada" for others interested in testing the cross-border used car market.

She said it's important to sign a purchase agreement ahead of time stipulating the vehicle must pass a mechanical test. If the deal in Portland fell through, Schevenius had a list of other possible vehicles to buy in the area as a back-up plan.

Peter Tolsma of Sussex Insurance in Langford said the rising Canadian dollar - sitting at 95 cents US as of Friday - has piqued interest from cross-border buyers of in both new and used cars.

"There is way more interest and it's probably not as difficult as most people think," he said.

"A lot of it is just sheer number. Take California, it has about 25 million people and there's just a lot more cars available."

However, new car dealers say the market isn't big enough to have an impact on them.

"I haven't really come across that many because we're on the Island so it's a bit different, but I know some of the dealers near borders are conscious they are losing a few deals to that," said Saunders Subaru sales manager Edie Foster. "Most of those people are going down for really exotic or expensive vehicles."

Industry Canada estimates that Canadians purchased more than 112,000 cars from the U.S. in 2006.

Earlier, we exclusively reported information technology bureaucrats at the ministry of labour and citizens' services got major provincial government contractors to pay for their drinks, meals and gifts at a staff appreciation event this past May. But that wasn't the only controversy created by the event, which was held at Romano's Macaroni Grill in Victoria. Asked for feedback, an employee admitted "that was nice but at taxpayer's expense seems a bit of overkill." And it's easy to see why someone may have been left with that impression. According to records obtained by Public Eye via a freedom of information request, government money was also used to purchase party favours for the 80 workplace application services staff invited to the event - including brooches, decorative plates, fleece blankets and placques. The total cost: $2,227.63.

"Ministries are allowed to spend a modest sum to acknowledge work that's performed by public service individuals as a demonstration of appreciation. And that policy allows us to give up to $100 per employee - or in more in some special cases," explained labour and citizens' services communication manager Linda O'Connor. "If you take the total cost (of the party favours) and divide it by 80, it works out to $28 per person which is well within that corporate policy. Basically it's about retaining employees. It's a small token of acknowledgement. It's in return for boosting their morale and keeping a healthy, engaged place of work for them."

Earlier, we broke the news David Perry, the chief of staff to provincial New Democrat leader Carole James, had resigned. And now the party has made it official. In a media advisory, Ms. James states "before I took my holidays, David told me of his decision, advising me then that he intends to pursue other career options. I want to offer my thanks to David for the service he provided me for the last two years and the NDP caucus for the last five years." The following is a complete copy of that advisory.

MEDIA ADVISORY

Earlier today, New Democrat Opposition Leader Carole James sent the following note to MLAs and Staff.

Please be advised of the following changes in my office.

David Perry has resigned his position as chief of staff effective August 24. Before I took my holidays, David told me of his decision, advising me then that he intends to pursue other career options. I want to offer my thanks to David for the service he provided me for the last two years and the NDP caucus for the last five years.

David first came to the NDP caucus in 2002, supporting both Joy MacPhail and Jenny Kwan and later Jagrup Brar in their giant effort to sustain an opposition in the face of overwhelming odds. His contribution to the rebuilding of the NDP Caucus organization over the past two years continued on in that spirit of commitment to our Party and its goals.

Building an organizational structure from scratch is not an easy task. The demands were huge and the hours long. But David always did the job with humour, grace and skill, helping to put together an effective opposition caucus and staff team in a very short period of time. I think, especially in this last year and this last session, we’ve seen how successful this rebuilding exercise has been.

I am very pleased to announce that Ian Reid is my new Chief of Staff. Ian brings years of experience to his new role. He has served as a policy advisor to government, managed numerous political campaigns, and is well-known for both his political and strategic skills.

As the NDP moves onto election footing, Ian’s experience and ability will be an invaluable asset to me and to my caucus. And I know that everyone in the NDP caucus is very excited about his new role and we are all looking forward to working with him

David Perry, the chief of staff to provincial New Democrat leader Carole James, has resigned, Public Eye has learned. Mr. Perry will be replaced by caucus policy director Ian Reid. Mr. Reid recently made headlines for his controversial musings about The Vancouver Sun.

Mid-level information technology bureaucrats got major provincial government contractors to pay for drinks, meals and gifts at a staff appreciation event this past May, Public Eye has exclusively learned. Records obtained via a freedom of information request show civil servants at the ministry of labour and citizens' services workplace application services branch first proposed getting their contractors to chip-in for the event back in February.

"Can we look to our vendors for contributions," one asked in an email. "I should think so," responded a colleague. "Any reasons why not? Not like we'll be asking for Bill Clinton tickets or anything." Still, another manager suggested their boss, then acting executive director Paul Sihota, "could check the current thinking as it seems to change with the (political) tides. ;-)."

But the bureaucrats must have thought those tides were flowing in their favour. Because, subsequently, a Hewlett-Packard Co. executive was asked if the company "could contribute a round of drinks (attendee expectations are for between 45 and 60 people) and 10 or so HP logo gift items."

And, in another email, a Sierra Systems Inc. representative was told she was "more than welcome to attend this celebration at the Macaroni Grill. In fact, we'll actually need you and your credit card to be there!"

That credit card, as well as Hewitt-Packard's, were each used to purchase a round of alcohol for approximately half of the 60 people who showed up. Computer Associates Inc., according to a detailed agenda for the event, also paid for a "$400 Macaroni Grill gift certificate to be used against (the) food and desert bill." And Fujitsu Inc. contributed a "large number of gift certificates" for an employee prize draw.

The New Democrats were unavailable to comment on the issue. But the government seems to have taken a dim view of the public-private party - which, all totalled, received about $1,000 in corporate funding.

In an interview with Public Eye, labour and citizens' services communications manager Linda O'Connor said, "As soon as we found out about this, our senior officials conducted an immediate investigation. And what they found - through the investigation, after interviewing the employees - was that while their conduct didn't necessarily contravene the standards of conduct for public servants it certainly went into an area we couldn't condone."

As a result, the officials "talked to the employees. And then we gave them an education program on the standards of conduct for public servants. And we've made certain they're now clear on their boundaries within those standards of conflict."

On Saturday, the Kitsilano West 4th Avenue Business Association will commemorate the 40th anniversary of the summer of love during its Hippie Daze celebration. But it seems the Non-Partisan Association won't have much of an opportunity to tap into the flower power at that event. According to an email from the NPA's caucus coordinator George Higgins - which was obtained by Public Eye - the association has been asked by the Hippie Daze organizers "to not have a booth at the event this year. They are concerned about an incident/protest happening with (striking) CUPE members and that it would disrupt their event. They look forward to working with us in the future, and would like us to still have anyone who is interested attend, just not in a formal capacity."

In an interview, business association manager Cheryl Easton explained, "I just didn't want them to get set up for an egging kind of thing. It's just not that kind of event where we want it to become a political" controversy. "It may be nothing. And the irony is that Hippy Daze is celebrating the tolerance and the acceptance and all that kind of thing. But, at the same time, we just don't want to get in the middle of anything. Because I don't know enough about either side." Ms. Easton said none of the civic parties had approached her about participating in the event.

Earlier, we reported federal Green council member Christopher Ian Bennett is introducing a resolution calling on the party to reimburse leader Elizabeth May "up to $1,000 for the costs of maintaining a second residence in Centra Nova." But, in an interview with Public Eye, Green national communications director John Chenery couldn't say if the proposed allowance would be used to make mortgage payments on that residence. "If it's a housing allowance, she can basically use it to do whatever she likes with. If she paid her mortgage with it that would be her business. But I can't really give you any more information than you already have on your blog about it."

Last month, The Canadian Press reported federal Green leader Elizabeth May "recently bought a house in New Glasgow, which sits in the riding of Central Nova where she plans to run in the next federal election." But she could soon be getting some help with her accommodation expenses from the party. Christopher Ian Bennett, who served as the national communication director for Ms. May's leadership campaign, is introducing a motion at the Green's upcoming federal council meeting calling on the party to "reimburse the Leader for up to $300 per month for health and dental insurance costs and up to $1,000 for the costs of maintaining a second residence in Centra Nova."

In an interview with Public Eye, Mr. Bennett, who sits on the council, explained, "In the past, it's been part of the party policy to support the leader on expenses when they have to commute or travel like we often do for our press secretary or different people of that nature. And we're trying to give our leader as much support as she can as she continues to build inroads in Nova Scotia and build out our campaign." Green communications director John Chenery didn't return a phone call placed yesterday morning. The council is scheduled to meet on August 19.

Last week, Shared Vision put Vancouver-Fairview provincial New Democrat legislator Gregor Robertson on its cover, asking whether Vancouverites "need a former organic farmer in City Hall?" But, according to polling information distributed to Non-Partisan Association caucus members, the electorate might have other priorities. The poll shows, when asked to choose among a field of left-leaning mayoral candidates, just 10 percent of non-NPA voters said they would likely vote for Mr. Robertson. Coalition of Progressive Electors councillor David Cadman also polled at 10 percent, with Vision Vancouver councillor Raymond Louie coming in fourth place at six percent. But Vancouver East federal New Democrat parliamentarian Libby Davies smoked them all at 31 percent. The poll, which was completed before the strike (between late June and early July), surveyed close to 150 Terminal City dwellers - with 43 percent of them expressing a voting preference for the association. That small sample size means the poll is less accurate than those conducted by major public opinion research firms. The following is a complete copy of that research.

Public Opinion - Opposition Choices

Libby Davies - 31 percent
David Cadman - 10 percent
Gregor Robertson - 10 percent
Raymond Louie - 6 percent
Fred Bass - 1 percent
None of the above - 23 percent
Don't know/refused - 19 percent

Earlier, we reported Save St. Paul's Hospital Coalition chair Aaron Jasper is considering running for the provincial New Democrat nomination in Vancouver-Burrard or one of its successor ridings. But there's some who think Vision Vancouver councillor Heather Deal should also make a bid for that nomination. And what does Ms. Deal have to say about such talk? Well, in an interview with Public Eye, the councillor said readers shouldn't expect her to be lacing up her running shoes anytime soon. "During this phase of my life, I'm totally focused on staying on council, on building Vision and getting a majority back at city hall in Vancouver."

"I have not been asked (to run). But if I were to be - and I probably will be - I will be very clear. I would be deeply honoured to be asked. And someday I may make that decision to go to provincial politics," continued Ms. Deal. "But I have absolutely fallen in love with civic politics. The fact that you can be on the ground, talking to folks all the time, dealing with issues - you just feel so connected to the people that you're working with, even though it's the whole city instead of the riding. And I just, just love it. I love the fact I get to debate all the issues, all the time instead of being limited to what you talk about and where you talk about it."

That being said, Ms. Deal added, "I absolutely wish the NDP the best of luck in finding an excellent candidate. And I'm not saying never. I'm not even close to not saying never. I think there's a very strong chance at some point in my life that I will look that way. But, right now, I'm building a new party. And nothing is more important to me than getting Vision in the majority at city hall."

The chattering classes gave Carole James a big, wet tongue-lashing last month. This, after the provincial New Democrat leader botched a news conference announcing her party's support for the controversial Tsawwassen First Nation treaty. But will that bungling have any impact on Ms. James's standing with the electorate? Well, we'll likely find out the answer next week when Mustel Research Ltd. is scehduled to release its latest public opinion numbers. The last such poll - conducted by Ipsos-Reid Corp. between June 8 and 13 - showed 54 percent of British Columbians approve of Ms. James's performance.

TransLink is looking for a consultant who will update its existing security plans to "deal with identified threat scenarios related to terrorist activities and attacks." As part of that update, the contract will define security responsible for transportation authority employees and recommend future "security related reviews, training, exercises and drills." The request for proposal, which was quietly rolled out on BC Bid yesterday, organizes TransLink's infrastructure into two "tiers of criticality in relations to the threat of terrorist attack" - with SkyTrain and the West Coast Express being slotted into the top tier and the Coast Mountain Bus Company and West Vancouver Transit into the bottom. The contract - which is budget at $175,000 - is scheduled to produce a final report by November 28.

Last week, Business in Vancouver's Richard Chu reported Angus Reid Strategies Inc. is opening its "first U.S. office in San Francisco in September, and has plans to open in New York and London by the end of the year." But some are wondering whether those expansion plans may also include acquiring or merging with Mustel Research Group Ltd. So we put the question to company owner Evi Mustel, who told us she hasn't "even spoken to Angus (Reid) since he opened shop." That being said though, Ms. Mustel added, "I never close any doors" - noting the polling industry, being relatively young has "gone through a lot of mergers - with smaller companies joining together to become a national firm because they just feel they're in a stronger position nationally. And a lot of the first generation are starting to retire now and selling-off and things like that. So there's certainly a lot of change in the industry. But, certainly, there's no offers on the table that we're looking at right now."

The federal Conservatives in Vancouver Quadra may soon have a third nomination candidate. In an interview with Public Eye, Howard Jampolsky - who recently lost the Tory nomination race in Richmond to Alice Wong - confirmed he's thinking about putting his name on the ballot. "It's something we're exploring. After the Richmond nomination, I got a number of calls from some people who wanted me to take a look over there. And my initial reaction was, 'Hey, look, I just came off a year long campaign and I just want to sit back and just relax for a little bit - spend a little bit of time with the family.And I don't really want to go into another long-winded campaign that could drag on forever.' Then, after (Liberal incumbent) Stephen Owen announced his resignation, the by-election aspect came up and they phoned me back again and I said, 'It does change things. It's certainly something I'd consider.'"

"By the end of this week, I'll make a decision" on whether to run, Mr. Jampolsky continued. "I understand is that they'll be calling the nomination race very soon - it may even be this week for all I know. So I'm guessing by the time they announce the nomination I'll make my final decision."

But won't living in Richmond make it more difficult to win an election in Vancouver Quadra? "I don't think so. I think that, in a by-election, it's a bit of a different story. Because, it's one election. And you need to find a candidate who can stand in there and debate all the issues without having 307 other candidates to help you out. So you're kind of in there slogging it alone. And I think you have to be really up on your party policy. And you have to be really up on why you're running and what you want to achieve. And I think I've got that...So I think I would have a reasonable shot at winning that election."

If Mr. Jampolsky enters the nomination race, he'll be running against former BC Cancer Foundation president and chief executive officer Mary McNeil and University of British Columbia Sauder School of Business law division lecturer Deborah Meredith.

Federal Green Vancouver Quadra candidate Dan Grice is going to "really push" the issue of democratic accountability during the upcoming by-election in that riding, proposing a radical change to the way parliamentarians are compensated. Speaking yesterday morning on Public Eye Radio, Mr. Grice said, "if elected, he's prepard to "take half of my salary and put that aside and let my constituents vote whether I should get the rest of that money" - challenging his opponents to make the same commitment. "I come from the private sector. And you don't get paid a flat salary. You get paid performance bonuses," he explained.

Mr. Grice also spoke out against the fact many parliamentarians seem to ignore voters once elected. "The fact MPs don't regularly meet with their constituents is a travesty of our democratic system. Their job is to represent us - not represent the party. It's not vote once every four years and see ya later.” And that's why the Green candidate promises to have regular video conferences with constituents if he gets to Ottawa.

Last month, Vision Vancouver councillor Tim Stevenson announced he pled guilty to a charge of driving under the influence, after keeping the incident secret for more than a year. As a result, many provincial New Democrats suspect he won't run again for the party nomination in Vancouver-Burrard or one of the constituency's successor ridings. Which begs the question, who will. Well, in an interview with Public Eye, Save St. Paul's Hospital Coalition chair Aaron Jasper confirmed he's been approached about stepping up to the starting line. "I have been asked by a few people if it's something I'd consider. But I haven't really sat down and given it a lot of thought."

Continued Mr. Jasper, a West End Residents Association director, "I definitely haven't closed the door to something like that. But, again, you know how these things are. You need to give it a lot of thought. My wife is very supportive if that's something I'd do...It's just a question of how does this fit into my life. Can I be more effective as a member of a caucus or an activist on the outside?"

It's expected the electoral boundaries commission will recommend redistributing Vancouver-Burrard - a change that would take effect during the next general election. But, if incumbent legislator Lorne Mayencourt resigns to run for the federal Conservatives prior to 2009, a by-election will take place using the riding's present boundaries.

Provincial Green leadership candidate Jane Sterk is considering hiring Lynne Serpe as her campaign manager, Public Eye has learned. Ms. Serpe managed the 2004 Green presidential campaign in the United States. And she co-managed Audie Bock's successful bid to become the first Green candidate elected to the California state legislature. In an interview with Public Eye, Ms. Sterk confirmed her interested in Ms. Serpe. But stressed, "I'm in discussion with a couple people and haven't reached any agreements with anybody." Ms. Serpe is presently deputy director of the New America Foundation's political reform program.

This morning, on Public Eye Radio, provincial New Democrat Nelson-Creston legislator Corky Evans shares his thoughts on rural access to British Columbia's healthcare system. Federal Green Vancouver Quadra hopeful Dan Grice discusses his candidacy. And former British Columbia Government and Service Employees' Union president John Shields gives his take on the Campbell administration's recent reinvestment in the civil service. Also on the show: our rabble-rousing panel - Don Anderson, Alex Tsakumis, Bob Russell and Allan Warnke - debate the week that was in provincial and federal politics. You can listen to Public Eye Radio outside of Victoria by logging into CFAX 1070 between 8:30 and 10:00. If you have a question for one of our guests, you can email us, leave a comment below or phone (250) 386-1161 during the show.

Last month, the Campbell administration appointed BC Hydro Corp. corporate affairs senior vice-president Susan Yurkovich to the University of British Columbia's board of governors. According to the biography provided by the government's board resourcing and development office, "prior to joining BC Hydro, she spent nearly 10 years at Canfor Corporation, where she was Vice-President, Corporate Affairs. From 1990 to 1993, Susan served as an advisor to the Federal Minister of Indian Affairs and Northern Development and the Minister of National Defense. Born and raised in British Columbia, Ms. Yurkovich holds both a Bachelor of Arts and Masters of Business Administration from the University of British Columbia, and a Diploma in International Business from Erasmus University, Netherlands. She is a Director of the VGH/UBC Hospital Foundation and the General Insurance OmbudService of Canada." Period. In other words, the fact Ms. Yurkovich was also a member of the provincial Liberal's central campaign committee is not an important part of her biography. Full stop.

Yesterday, the Insurance Corp. of British Columbia announced a "net income of $256 million for the first half of 2007, which compares to $110 million for the same period in 2006." But, as reported by The Province's Andy Ivens and Matthew Little, "our insurance premiums won't be falling anytime soon because, ICBC says, the cost of crashes is escalating even though the number is declining." So we thought now might be an appropriate time to remind our readers that, according to the insurance corporation's statements and schedules of
financial information, president and chief executive officer Paul Taylor's renumeration for 2006 was $421,528 - which includes his taxable benefits and 15 months of performance pay.

The provincial New Democrat caucus will have a new communications director after Labour Day. Former party organizer Glen Sanford, who has been co-chairing the New Democrat's controversial nomination review committee, is replacing Chris Gainor as the opposition's top spin doctor. Mr. Gainor is leaving the Rockpile to complete his doctorate in the history of technology through the University of Alberta.

In today's edition of The Vancouver Sun, former top provincial bureaucrat Doug McArthur criticizes the New Democrat caucus for keeping secret its decision to support the Tsawwassen First Nation treaty. But, writes Prof. McArthur "the real source of the trouble and the larger failing was the inability of the NDP caucus, under pressure from a small group of extremist columnists and activists, to understand and accept aboriginal rights and the compromises necessary to achieve treaty settlements. Without this, the political stunt giving rise to the problems now facing the NDP would never have been attempted in the first place." Of course, given that view, it might have been helpful if the Sun had told readers that Prof. McArthur - who was the deputy minister to two New Democrat premiers - has been working as a treaty negotiation advisor for the Tsawassen First Nation. But, curiously, the broadsheet simply identifies him as a "professor of public policy at Simon Fraser University." Er...okay.

Earlier, we reported the province transferred $78.7 million to the Alberta government to pay for British Columbians being cared for by that province's health system - British Columbians like Melanie Folk. According to information supplied by the health ministry, that's a 40 percent increase since 2001/02. By comparison, transfers from the Alberta government to British Columbia for similar expenditures amounted to $24.2 million - a 30 percent increase over the same time period. In an email to Public Eye, health communications manager Sarah Plank wrote, "The primary reason (for the difference) is geography. British Columbians who live in the eastern parts of the province are geographically closer to Edmonton or Calgary than they are to the Lower Mainland. When they require specialized health services, it is part of the normal referral pattern for them to go to Edmonton or Calgary. By contrast, Albertans who live in the Western part of that province, are still closer to Edmonton or Alberta than they are to any tertiary facility in B.C., so they would generally remain in Alberta, unless Alberta were at capacity." But New Democrat health critic Adrian Dix has a different interpretation.

Speaking with Public Eye, Mr. Dix said, "What's happened in B.C. - particularly in the Interior - is the centralization of services, the closing of hospitals, that has precipitated these dramatic increases" in the number of patients being treated east of the Rocky Mountains. "Of course it's a good thing that we cover services when people go to Alberta. That goes without saying. But it is indicative of the current government's failure to provide healthcare where and when you need it."

But Ms. Plank calls that an "inaccurate" comment, rejecting suggestions the increase in transfer payments to Alberta may indicate a need for additional capacity in British Columbia's health system. "Health care funding is not only on the rise, it is at record levels," she wrote. "This year alone the Health budget is $13.1 billion - an increase of $885 million since last year, and up $3.59 billion since 2001. That is a 37 percent increase. More than 3,200 net new seniors care beds have been added to the system since 2001. B.C. is performing almost half a million surgeries annually, more than have ever before been provided in the province. New hospitals are being built in Abbotsford, Surrey, Victoria, Kelowna and Vernon, which will also add acute care capacity."