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Bob Mackin 

Could the Trudeau Liberal government’s budget, scheduled for April 16, contain federal funding details for FIFA World Cup 26? 

The federal ministry helping Vancouver and Toronto host matches in June and July 2026 said nothing has been decided.

Prime Minister Justin Trudeau in 2021 with Canada’s men’s World Cup team in Edmonton (CSA/PMO)

The Sport Canada division of Canadian Heritage caps contributions to international single sport hosting at 35 percent of total event costs (including eligible and non-eligible expenditures) and 50 percent of total government assistance. That covers operating costs, travel and administration expenses, purchase of eligible carbon offset credits and fulfilling sport-related goals of the Truth and Reconciliation Commission. 

A Canadian Heritage spokesperson said work is ongoing with Canadian parties and FIFA. 

“At this time, no financial commitments have been confirmed,” said Daniel Savoie. “The responsibility for the overall coordination, planning and provision of safety and security for the 2026 FIFA World Cup, including competition and competition-related events, rests with the governing body (FIFA) and the municipal competent authorities in Toronto and Vancouver.”

A Feb. 26 report to Toronto city council included a section on “Status on Intergovernmental Funding.” It mentioned the Province of Ontario’s conditional December pledge of $97 million toward the $380 million cost of hosting six matches. 

“The province’s support is conditional on the federal government matching the commitment and being responsible for any costs resulting from a federal determination of safety and security needs,” the Toronto report said. 

Vancouver city hall has not updated its year-old, $230 million estimate, which was based on five matches. On Feb. 4, FIFA announced B.C. Place Stadium would host seven. The B.C. government has not released its stadium renovation budget. It is also seeking Ottawa’s help.

The next men’s World Cup will feature a record 48 nations and a 104-match schedule: 78 in the U.S. and 13 each in Canada and Mexico. A three-nation event over 39 days adds complexity for federal security and customs departments. 

Public Safety Canada spokesperson Louis-Carl Brissette-Lesage referred questions about security and safety budgeting and financial support for host provinces/cities to Canadian Heritage. 

“The RCMP would cooperate with its law enforcement partners to support an integrated security strategy,” Brissette-Lesage said.

RCMP national headquarters spokesperson Robin Percival also referred questions to Canadian Heritage. Percival did say that RCMP would collaborate with other agencies “to ensure the safety and security of venues, FIFA officials, international protected persons, athletes and the general public.” Its main mandate, however, is essential federal services, including protection of visiting dignitaries and to address national security threats and terrorist activities before or during the tournament. 

Otherwise, the Toronto Police Service and Vancouver Police Department are responsible. 

“The RCMP in B.C. (E Division) will also oversee such security planning for elements of the event falling within their respective jurisdiction and responsibilities within its mandate as the provincial police force,” Percival said. 

Canada Border Services Agency (CBSA) said it is working with Canadian Heritage, Immigration, Refugees and Citizenship Canada, FIFA, Vancouver, Toronto and security partners in the U.S. 

“The role of the CBSA is to assess the admissibility of persons and goods entering Canada, this includes facilitating the expected large volume of travellers visiting Canada to participate in or attend the 2026 FIFA World Cup and the goods required to support the event,” said CBSA spokesperson Karine Martel.

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Bob Mackin  Could the Trudeau Liberal government’s budget,

Business, News, Sports

Bob Mackin

A WorkSafeBC investigation into the guardrail failure during UFC 289 found the Aquilini company that operates Rogers Arena contravened B.C.’s Occupational Health and Safety Regulations. 

Three railings on a retractable seating unit at section 120 collapsed just before 9 p.m. on June 10, 2023 when mixed marital arts fans leaned over the railing to greet Canadian welterweight fighter Mike Malott as he left the tunnel en route to the octagon.

The June 10, 2023 guardrail collapse at Rogers Arena
(TanerFrank/X)

Fans tumbled as much as 13 feet onto staff below, who were struck by the railing. No serious injuries were reported. 

“The employer failed to ensure that a temporary or permanent structure (stadium guardrails) in a workplace was capable of withstanding any stresses likely to be imposed on it,” said the July 18, 2023 inspection report, released under the freedom of information law.

Retractable bleachers were returned the morning after UFC 289 to “concert mode” and temporary guardrails were not required, so WorkSafeBC rescinded the order.   

The full investigation report by Vancouver Arena General Partnership Inc. (VAGP) to WorkSafeBC, submitted on June 26, 2023, admitted the security guards were inadequately trained and instructed. They were deployed to the floor level under the railings, tasked with fighter watch, instead of preventing fans from leaning on the railings.

The investigation also found the railings were vulnerable. The steel pocket assemblies that support the railings were attached with two bolts each instead of four. 

“The stress exerted on the railing from guests leaning over it caused the two bolts on the steel pocket assembly to tear through the aluminum structure, with no support remaining, the railings fell,” the report said. 

Additionally, a drape attached to all three railings contributed to a domino effect. When one railing failed, it added stress to the other two.   

A team of seven venue managers responded to the incident along with St. John’s Ambulance first aid personnel. Two of the workers were employed by contractor Genesis Security Inc. and one by VAGP. The investigation report said one suffered a “minor crush injury,” but the details were censored. WorkSafeBC also received an incident investigation form from the B.C. Athletic Commissioner that indicated a staff member escorting Malott to the octagon was knocked to the ground. 

Three members of the public were assessed by paramedics, but continued to watch the event. 

Fans were relocated and the seats at the incident site were tied-off, with security personnel situated in each row to prevent access. 

Malott won his bout, the eighth on the 11-bout card. 

The full investigation report listed 16 corrective actions, six of which were completed by June 23. Five of the corrective actions directly relate to equipment and five are about safe work procedures, job safety assessments and inspection checklists. Corrective actions included posting signage on tunnel railings to discourage leaning, removing seating or rows directly beside railings for any events that guests pose a higher risk of wanting to interact with talent, and deploying a heavier security presence in sections where talent arrive or depart.

WorkSafeBC censored names of Rogers Arena personnel, including those that corresponded with WorkSafeBC occupational hygiene officer Sanjesh Roop. 

“We want to ensure we do everything we can to prevent this from reoccurring, thanks for your support,” read a June 16 email from someone with a canucks.com address.

“In our full investigation, this will be an action for creating and updating our [safe work procedures], and we will ensure that that step/process for closing off the area is accounted for if/when it is needed moving forward, along with training of all the different departments that may need to be in the bowl.” 

WorkSafeBC fined the Aquilini company behind the Abbotsford Canucks of the American Hockey League, Canucks AHL General Partner Inc., $5,431.22 in June 2022. A worker at Abbotsford Centre was seriously injured by a plexiglas unit that fell from a lift truck after the employer failed to provide information, instruction, training, and supervision necessary to ensure worker health and safety. 

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Bob Mackin A WorkSafeBC investigation into the guardrail

Business, News, Opinion

For the week of March 3, 2024:

A whirlwind week in Canadian politics. 

Geopolitics. National security. Cyber safety. Corruption. Questions about mega-event costs. A blooper by the current Prime Minister and the passing of one of the most-consequential previous Prime Ministers.

The last week of February in Leap Year 2024 had it all. Headlines about SNC-Lavalin. ArriveCan. Winnipeg laboratory. Online Harms Bill. FIFA 2026 costs. The late Brian Mulroney.

A summary of it all on this week’s Big Deal feature. 

Plus, Pacific Rim and Pacific Northwest headlines. 

CLICK BELOW to listen or go to TuneIn, Apple Podcasts, Spotify or Google Podcasts.

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For the week of March 3, 2024: A

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Bob Mackin

ICBC’s new headquarters could be in Vancouver or Burnaby. 

In the NDP government’s Feb. 22 budget, the three-year plan for the auto insurance and driving regulator Crown corporation earmarked $164 million for relocation from Lonsdale Quay in North Vancouver. The cost includes a 15-year lease and leasehold improvements beginning April 1, 2025. But the new location was not specified.

ICBC’s North Vancouver headquarters (LinkedIn)

“Timing and amount of expenditure is subject to change and board approval,” the service plan said. 

ICBC spokesperson Greg Harper said the transition will take until 2027 and the budget is an estimate based on market rates for space in the target areas of Brentwood and Metrotown in Burnaby and the False Creek Flats and Broadway Tech Centre in Vancouver.

“We’ve found multiple properties that can provide features important to our employees and company,” Harper said in a prepared statement. “These properties are located in four Metro Vancouver areas. We continue working with our broker to gain an in-depth understanding of what these properties can offer.”

The previous BC Liberal government had pondered a move prior to the NDP coming to power in July 2017. Internal reports indicated it could cost ICBC $184 million to upgrade and maintain the 1983-built, six-storey tower. 

BC Assessment Authority pegged 151 Esplanade’s value last year at $92.2 million. It was $103.8 million two years prior.

When ICBC said in 2022 that it would leave North Vancouver in three to five years, it cited the pandemic-sparked work-from-home trend. Its offices were more than half empty and seven out of 10 ICBC workers reside away from the North Shore. 

“Government is going to make a profit on the sale of their building on the North Shore,” said Richard McCandless, a retired senior B.C. government bureaucrat who analyzes the performance of Crown utilities. “It obviously seems like somebody thinks they can make the money off moving ICBC out of there. So they’re prepared to pay ICBC’s cost to make that move.”

The ICBC tower is an anchor of the B.C. Development Corporation’s mixed use Lonsdale Quay project launched in 1979 by Premier Bill Bennett around the SeaBus terminal. 

The area is also home to BC Railway Company, the Crown corporation that leases BC Rail’s former land and tracks to private operator CN Rail. 

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Bob Mackin ICBC’s new headquarters could be in

Business, News, Sports

Bob Mackin 

Civic and provincial officials met last Nov. 3 with a FIFA delegation in Vancouver to discuss plans and responsibilities for the FIFA World Cup 26. 

But a presentation obtained under the freedom of information law reveals only vague details about the biggest, most-expensive event in B.C. since the 2010 Winter Olympics.  

A vast majority of the text in the 86-page “Host City Operations Group Meeting” presentation is censored, because Vancouver city hall believes disclosure would harm FIFA. Two sections of the presentation are censored in their entirety, including one with the graphic of a handshake.

From Nov. 3, 2023 FIFA site visit (City of Vancouver/FOI)

But there are hints that, when B.C. Place Stadium hosts seven matches in 2026, the Lower Mainland faces a repeat of some of the transportation and security restrictions from February 2010. 

The agenda for the 9 a.m. to 4:30 p.m. meeting, the last of FIFA’s tour of the 16 host cities, included discussion about the host city footprint, stadium and training site operations, transportation and traffic management, airport operations, and safety and security. 

What is visible from the transportation slides: a map from Qatar 2022, showing road closures for the duration of the event and during match days, with exceptions for emergency vehicles and special lanes for very, very important persons. Another page shows photographs of FIFA and sponsor-branded vehicles and motor coaches. 

The most-revealing section may be about the FIFA Fan Festival. “Providing a live broadcast of all matches,” the document states. It shows a photo from Russia 2018, where attendance reached a high of 166,000, and Qatar 2022, which topped out at 57,000. The $104.3 million PNE Amphitheatre is expected to open in spring 2026 and host daily watch parties for the duration of the tournament. 

The Nov. 3 list of attendees counted 29 staff from B.C. Place, 18 from City of Vancouver, three from the B.C. government’s marquee sports events office, two from Vancouver International Airport and at least one from the Vancouver Police Department. 

Seven names and their affiliations were withheld due to the security exemption from the FOI law. 

Vancouver representatives included host city manager Doug Campbell, host city operations manager Taunya Geelhoed and Rosemary Hagiwara, the acting city clerk who is now director of coordination and alignment, according to the city directory.

Chief tournament officers Manolo Zubiria and Peter Montopoli led the 37-member FIFA delegation. Zubiria is director of competitions at Zurich-headquartered FIFA. Montopoli, the former Canadian Soccer Association general secretary, is the top executive for the matches in Toronto and Vancouver. They were accompanied by FIFA experts in operations, transportation, venue management, hospitality, information technology, marketing, media, stadium and infrastructure, ticketing and hospitality and TV production. 

Hagiwara coordinated a social reception at the Parq casino’s D/6 bar and lounge while the city’s Indigenous relations director, Michelle Bryant-Gravelle, organized a “reconciliation education” presentation in the Goalpost and Balcony lounges at the stadium. 

From Nov. 3, 2023 FIFA site visit (City of Vancouver/FOI)

FIFA named Vancouver a host city in June 2022. The 48-nation tournament in the U.S., Canada and Mexico was expanded to 104 matches. B.C. Place had originally expected five matches, but will now host seven between June 13 and July 7, 2026.  

The City of Vancouver is responsible for the $230 million hosting budget announced in early 2023. The province granted the city power to levy a 2.5 percent accommodation tax until 2030. 

B.C. Place will undergo renovations and there will also be extra costs for security, but the NDP government under Premier David Eby has not announced the budget.

During Question Period on Wednesday, Finance Minister Katrine Conroy scoffed at the suggestion that the province’s $3 billion contingency budget would all go toward FIFA. Conroy then suggested “[the B.C. United opposition] hate soccer.” 

“We will have the numbers soon. We want to get those numbers right,” Conroy said. 

In May 2007, Eby worked for the Pivot Legal Society and was one of the editors of the Impact of the Olympics on Community Coalition (IOCC) “Olympic Oversight Interim Report Card.” One of the sections, under “Public expenditure and transparency,” slammed governments and the organizing committee, VANOC, for secrecy.  

“The authors are concerned by an absence of budgeting that reflects true costs to the taxpayer at the provincial and municipal levels,” the IOCC report said. 

While Seattle city council released its contract with FIFA last August, Vancouver city hall and the provincial government have withheld both the proposal to FIFA and the contract with FIFA. An adjudicator from the Office of the Information and Privacy Commissioner is expected to hold a written inquiry sometime this year. 

In 2018, City of Toronto originally estimated hosting 2026 matches at BMO Field would cost only $30 million to $45 million. A Monday report to city council’s executive committee said the July 2022 estimate of $300 million had risen 26 percent to $380 million..

“The adjustment to cost estimates is based on a variety of factors including: further defined hosting requirements; the announcement of a total of six matches (versus the estimated five), including Canada’s opening match of the tournament; evaluation of price estimates/vendor quotes; safety and security requirements; and inflationary uncertainty,” the Toronto report said.

The Province of Ontario has conditionally committed up to $97 million, but Toronto is waiting on Ottawa. The federal policy on hosting international sport events caps contributions at 35 percent of total event costs and a maximum of 50 percent of the total public sector contribution.

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Bob Mackin  Civic and provincial officials met last

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Bob Mackin 

Something caught a former commissioner’s eye on Dec. 11 when the Vancouver Park Board met for the first time after Mayor Ken Sim declared his intention to abolish the elected body.

Former Park Board commissioner Sarah Blyth-Gerszak’s photograph of ABC commissioner Marie-Claire Howard’s smartphone at the Dec. 11 Park Board meeting. City hall says the “Transition Team” messages no longer exist. (@sarahblyth/X)

Sarah Blyth-Gerszak, twice-elected with Vision Vancouver, was among the ex-politicians from across the spectrum who united to oppose Sim’s Dec. 6 announcement. She photographed the smartphone held at the meeting table by Marie-Claire Howard, one of three Park Board commissioners remaining in Sim’s ABC Vancouver party. 

Under the heading “Transition Team,” Howard’s screen read: “Just talked to [development consultant and party donor] Gary Pooni and he is hearing only overwhelmingly great feedback! So congratulations to all of you!”

The name of the sender was not visible in the photo that Blyth-Gerszak published on X, formerly Twitter. The next day, a reporter applied under the freedom of information law for all of the “Transition Team” messages sent and received by Howard and fellow ABC commissioners Angela Haer and Jas Virdi from Dec. 5, when Sim secretly informed most commissioners about his plan, to Dec. 11, the night Blyth-Gerszak snapped Howard’s screen. 

Cobi Falconer, the city’s information access director, replied Feb. 13 to say that the messages were deleted. Even if they still existed, she said the city would not release them.  

“Based upon its investigations, the city understands that the requested records do not relate to the business of the city,” Falconer wrote. “In any event, records were not retained and were no longer in existence at the time your request was received.”

“Pathetic,” said Park Board chair Brennan Bastyovanszky, one of three commissioners ejected from the ABC caucus for disagreeing with Sim. “It doesn’t seem right, does it?” 

Pooni said the morning after the meeting that he had no involvement with the Park Board decision or the “Transition Team.” 

Asked how his name ended up in the group chat, he responded: “That’s a great question, Mr. Mackin. I saw that, and I have no idea. Please let me know what you find out, and if you could fill me in — I would greatly appreciate it.”

The FOI office did release the calendar for Sim’s chief of staff, Trevor Ford. It shows a “Park Board discussion” via Microsoft Teams on Nov. 23 and phone call the next day with Matt Smith, Premier David Eby’s chief of staff. 

There is also this Dec. 1 entry: “Meet with Gary P.” 

The address listed in Ford’s calendar is the same as the Pooni Group office in Guinness Tower. 

There is no mention of Pooni in Howard’s calendar. Howard did not respond to a query about the FOI office’s response. 

Pooni Group’s website describes the firm as a “technical urban planning and communications company.” Clients include the Bonnis Properties 800 Granville project. Pooni is an NDP supporter, who made $4,657 in donations since mid-2020. He also donated $1,250 to Sim’s campaign in February 2022. But $3,764.50 in 2021 donations to ABC were classified as “prohibited” under Elections BC rules and returned to Pooni before last Christmas. 

Neither Pooni nor Ford responded to requests for details about the Dec. 1 meeting. 

Bastyovanszky said he was unaware of any of the meetings in Ford’s calendar, but said it is part of the Mayor’s Office’s pattern of secrecy and undermining of elected officials. 

“The email that we got from Trevor kicking us out of ABC was done through personal email, which is super odd, right?” Bastyovanszky said. “Because it was obviously clearly city business, where that party is going to give up control of Park Board.”

Bastyovanszky also pointed to integrity commissioner Lisa Southern’s Feb. 21 finding that Sim breached the code of conduct for excluding Comm. Laura Christensen, a newborn mother, from the Dec. 5 meeting and Dec. 6 news conference. Southern’s report contains two explicit references to the “transition team.” 

Bastyovanszky said Sim and his staff underestimated opposition to dissolving the board, naively hoping the NDP cabinet would rubber-stamp the proposal behind closed doors. Instead, the city needs to provide a transition plan with formal support from the Musqueam, Squamish and Tsleil-Waututh first nations and the city’s two unions. Sim appointed a five-member transition working group on Jan. 25 with a six-month mandate. One of the members is Catherine Evans, a Vision Vancouver commissioner from 2014 to 2018. 

On Feb. 5, Bastyovanszky, Christensen, Scott Jensen and Green commissioner Tom Digby voted to spend $20,000 for a lawyer’s opinion on whether Sim’s move is unconstitutional. Haer, Howard and Virdi voted in the minority. 

“Ken’s playing no-limit, Texas hold’em,” Bastyovanszky said. “He’s gone all-in, he’s already shown his cards and the rest of the deck hasn’t been dealt yet.”

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Bob Mackin  Something caught a former commissioner’s eye

Business, News

Bob Mackin 

A division of the world’s largest helicopter manufacturer is contesting the B.C. government’s air ambulance contract with a Parksville company.

Airbus H145 (Airbus)

Airbus Helicopters Canada Ltd. filed a petition in B.C. Supreme Court in November against B.C. Emergency Health Services (BCEHS), which awarded Ascent Helicopters Ltd. the $544.5 million contract last May. The petition also names Michael Schenkers, procurement manager for the Provincial Health Services Authority (PHSA).

The Fort Erie, Ont.-based arm of the French aerospace giant wants a judge to quash the deal, because it alleges PHSA preferred helicopters made by competitor Leonardo “on the basis of undisclosed criteria.” 

“Airbus informed and supported the bids of many of the operators that participated in a competitive procurement process conducted by PHSA to procure Helicopter Emergency Medical Services (HEMS) with several carriers indicating that the H145 was the leading helicopter in their proposals,” said the Airbus petition, filed by Brook Greenberg of the Fasken law firm. “The decision to select the AW169 over the H145 was procedurally unfair, since the PHSA has not provided reasons or rationale for the helicopter decision.”

Schenkers declined comment. 

None of the allegations has been proven in court and the province has yet to respond. 

In 2021, BCEHS issued a request for proposals (RFP) for rotary wing air ambulance operators to provide air ambulance services under an eight-year contract, with two optional two-year extensions. The contract to transfer critically ill patients between hospitals and respond to emergency medical calls is currently held by Helijet International of Richmond and Summit Helicopters of Kamloops. In the 2022-2023 fiscal year, PHSA paid Helijet $18.08 million, Summit $9.42 million and Ascent $4.8 million.

Ascent will become the first Canadian air ambulance operation relying on the Leonardo AW169 when it imports seven helicopters from the Italian company. The contract is expected to start by the end of the year.

Leonardo AW69 helicopter (Leonardo)

Airbus claimed that proponents were required to submit fixed price proposals that are not based on volume of hours actually provided. Airbus also claimed that, prior to making its decision, BCEHS told operators that it preferred the AW169. 

“As a result, for example, Ascent submitted a separate proposal with the AW169 late within the RFP process, despite Ascent’s lead proposal being for the H145,” said the Airbus filing. 

“By preferring a model of helicopter even prior to receiving proposals from the operators, and effectively pre-judging the helicopter decision, BCEHS and PHSA unlawfully fettered their discretion in conducting the RFP.”

Airbus’s filing said that the H145 and similar models have logged more than six million flight hours, including 250,000 flight hours in Canada. Airbus said there are more than 1,600 of the helicopters in service worldwide, of which 645 fly air ambulance missions. 

Airbus boasts more usable cabin space in the H145 and alleged the AW169 requires more scheduled maintenance, which means higher costs.

Under the RFP, BCEHS required bidders to provide two aircraft available at Vancouver International Airport 24 hours a day, seven days a week, one in Prince Rupert available around the clock, one each in Qualicum Beach and Prince George for 12 hours daily and an option to provide one helicopter available for 12 hours a day in Kamloops beginning May 2025. The seventh would be used as a “floater,” when another is grounded for maintenance and repairs.

Airbus’s filing said that more than 7,300 patients are transported either by helicopter or airplane annually in B.C. Approximately 90 percent of transports are transfers between hospitals. During 2019-2020, Northern Health and Interior Health accounted for 65 percent of air ambulance transports. 

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Bob Mackin  A division of the world’s largest

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For the week of Feb. 25, 2024:

Angus Reid played 13 years in the Canadian Football League, winning two Grey Cups with the B.C. Lions. Number 64, who authored the book “Thank You Coach,” is now a motivational speaker and offensive line coach with the Vernon Panthers, B.C.’s reigning senior and junior varsity champions. 

Reid will be honoured Feb. 28 with the Jack Diamond Sports Personality of the Year Award at the RBC JCC Sports Dinner, to benefit the Jewish Community Centre of Greater Vancouver. It is the unofficial kickoff to the Lions’ 70th anniversary year, which includes the return of the Grey Cup to B.C. Place in November. 

“I was double lucky to be in an organization that was doing well at that time in my hometown, and a lot of people can’t script that for themselves,” said Reid, a Richmond-born Vancouver College and Simon Fraser University product. 

“We became the toast of the town for quite a while, with good reason. We won a lot. We had good characters on our team, with great management organization.”

Listen to host Bob Mackin’s full interview with Angus Reid. 

Plus, Pacific Rim and Pacific Northwest headlines. 

CLICK BELOW to listen or go to TuneIn, Apple Podcasts, Spotify or Google Podcasts.

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For the week of Feb. 25, 2024: Angus

Business, News

Bob Mackin 

Uncertainty in the last provincial budget before the scheduled October election, about how much hosting 2026 FIFA World Cup matches will cost taxpayers.  

The service plans for B.C. Pavilion Corporation (PavCo) and the Ministry of Tourism, Arts, Culture and Sport (TAC), released with the Feb. 22  NDP government budget, do not include any hard numbers for the province’s biggest event since the Vancouver 2010 Winter Olympics.

Inside B.C. Place Stadium (Mackin)

The province said last year that the City of Vancouver would spend $230 million and gave it authority to charge a 2.5 percent accommodation tax until 2030. But PavCo is planning renovations to B.C. Place Stadium, which is expecting to lose $11.6 million in the 2024-2025 fiscal year. The province and city hall are both withholding contracts with FIFA. 

There is only one reference to FIFA 2026, when B.C. Place will host seven matches, under the broad, $10.6 billion in contingencies over the next three years for “priority spending initiatives and caseload pressures.”

“The contingencies allocation also funds programs or initiatives with uncertain costs such as the upcoming FIFA World Cup matches in 2026, where plans and costs are still being developed and refined with partners,” the budget document said. 

Meanwhile, the sport sector service plan points to shortages of amateur sports volunteers and facility workers, plus higher operating costs for amateur sports organizations. The result is higher registration fees and equipment costs. 

TAC is upping its transfer to PavCo, from $7.5 million last year to $8.4 million this year. PavCo, which also manages the Vancouver Convention Centre, forecast its annual operating deficit would decrease from $14.65 million in 2024-2025 to $12.76 million in 2026-2027. 

Meanwhile, at other commercial Crown corporations and agencies. 

ICBC

The auto insurer and driving regulator forecasts balancing its budget in 2024-25 and then $400 million profits in the next two fiscal years. 

The budget also includes $164 million for moving out of its Lonsdale Quay headquarters and outfitting new premises. It earmarked $111 million for a 15-year lease beginning April 1, 2025 and $53 million for leasehold improvements. The new location is not specified. 

The service plan highlighted $7 billion in outstanding claims from crashes before the switch to the no-fault insurance system. 

“Ongoing claim handling processes and strategies are being used to manage and reduce the number of open legal-based claims,” said the service plan. 

Auto repair cost inflation remained high last year and “is expected to persist over the near term because of the repair technician shortage.”

“Despite ICBC’s ability to repair vehicles at a lower cost than in most other jurisdictions, parts cost inflation, reduced parts availability, more sophisticated vehicle technology, and repair technician shortages are all increasing the risk of higher repair costs,” said the report. “ICBC is offsetting some of that pressure in a number of ways on an ongoing basis.”

BC Lottery Corp. 

BCLC forecasts a $1.32 billion profit for 2024-2025, but is reducing expectations due to the high cost of living and high interest rates. 

“Uncertainty around the future of interest rates and the possibility of an economic slowdown could accelerate this trend and the impact to consumer spending on gambling entertainment, including BCLC’s,” the service plan said.

Lonsdale Quay in North Vancouver (Mackin)

BCLC has detected a decline at casinos in the average spend per player and softness in online gambling revenue. 

BCLC counted $440 million in internet gambling revenue in 2022-2023, but is experiencing headwinds due to aggressive marketing and acquisition by illegal operators. That means higher costs of advertising and sponsorship for BCLC, the province’s legislated monopoly. 

“We continue to work with appropriate authorities to try and address illegal online gambling, and the opportunity to potentially capture additional revenue if illegal operators were kept out of B.C.” it said. 

The service plan mentioned the influx of advertising from Ontario, which began licensing privately operated online gambling companies in 2022. 

“This blurs the line between those sites and provincially regulated gambling sites, like PlayNow.com, that create revenue and jobs for their respective provinces.”

Meanwhile, BCLC says that there were 4,148 reports of criminal activity at casinos in 2022-2023. It forecast 4,023 for the current fiscal year and its target for next year is 3,822. 

“Examples of such incidents include allegations of cheating at play, theft, assault and money laundering.”

Liquor Distribution Branch

The province’s beer, wine, spirits and marijuana retailer and wholesaler projects a $1.1 billion profit next year. 

LDB operates 198 BC Liquor and 39 BC Cannabis stores. It forecast $1,472 booze sales per square foot for the year ending March 31, missing the target by $25 per square foot. 

“This slight target shortfall can be attributed to decreased foot traffic, influenced by high inflation rates, and shifting trends in alcohol consumption,” said LDB’s service plan.

For cannabis sales, LDB expects to meet its $800 per square foot sales target. That target remains fixed at $800 for the coming year, “given the anticipated persistence of competition from the illicit market and the continued entry of new private cannabis retailers into the market.”

It also said the average price per gram of marijuana is expected to fall as the industry matures. 

BC Hydro 

The province’s electric company is targeting $712 million annual net income, but weather trends are weighing on its mind. 

“Given the current drought situation, and the large variability that has been seen in system inflows in the past, actual hydro generation may be significantly different from shown and, as a result, the cost of energy may be higher due to imports in times of deficit, and lower due to exports in times of surpluses,” said the BC Hydro service plan. “These changes would affect the cost of energy and financial performance.”

Its biggest project, the Site C dam, is expected to cost at or below the approved $16 billion budget, with the first power unit targeted for December of this year and last unit in November 2025. 

As of Dec. 31, BC Hydro had spent $12.9 billion, with another $3.1 billion to go. 

Premier David Eby recently announced an aggressive $36 billion “Power Pathway” capital upgrade program running through 2023-2024. 

“BC Hydro’s electricity system was largely built in the 1960s, 1970s, and 1980s and B.C.’s population and economy continue to grow,” said the service plan. 

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Bob Mackin  Uncertainty in the last provincial budget

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Bob Mackin 

A lawyer for Canada’s Department of Justice said in B.C. Supreme Court on Feb. 21 that a retired Mexican general should be extradited because he would satisfy the requirements for a breach of trust by a public officer charge. 

The Mexican government alleges that Eduardo Leon Trauwitz, while working as head of security for state oil company Pemex, facilitated theft of 1.87 billion litres of hydrocarbons from clandestine taps in Pemex pipelines.

B.C.-arrested Eduardo Leon Trauwitz

In May 2019, Trauwitz fled to B.C., instead of appearing in a Mexican court, and applied for Canadian refugee status. He was arrested in December 2021 and freed on bail conditions in March 2022.

Amanjyot Sanghera told Associate Chief Justice Heather Holmes that Trauwitz worked between 2014 and 2018 at Pemex as head of the Assistance Division of Strategic Safeguard (ADSS), which was supposed to identify and disable clandestine taps in pipelines. 

Sanghera said that theft was a problem before Trauwitz’s tenure. But, under Trauwitz, physical security agents were ordered to implement a new security protocol that “ran afoul of the official Pemex policy.” 

Upon identification of a clandestine tap, physical security agents were supposed to inform the proper authorities within Pemex to disable the tap.

“Importantly, the second thing that ADSS staff were to do,” Sanghera said, “was to take steps to inform the public prosecutor’s office, so that they could investigate and potentially prosecute individuals responsible for illicitly siphoning energy from Pemex.”

Instead, the security protocol meant that they would conceal discoveries of clandestine taps from daily incident reports and not tell authorities, for fear of being fired or directly reported to Trauwitz, Sanghera said. 

Sanghera said evidence will show the security protocol “was not just implemented in one city or one state in Mexico. Rather, the evidence establishes that the security protocol during Mr. Trauwitz’s tenure as the head of ADSS was instituted in various states, including the State of Puebla, Sinaloa, Nueva Leon and the State of Mexico.”

The hearing was delayed from November after new evidence contained in a new supplemental record of the case arrived via diplomatic channels from the Mexican government. 

A month earlier, Holmes allowed Trauwitz’s lawyers to present new evidence that could cast doubt on the Mexican government’s case. 

New defence evidence included a notarized August 2023 statement from a former Pemex worker concerned that his original version of events had been distorted and words put in his mouth. Moises Angel Merlin Sibaja originally told prosecutors in 2017 and 2019 that he was threatened with firing if he did not follow orders from Trauwtiz and four others. 

Holmes deemed some, but not all, of Sibaja’s statement admissible.

Trauwitz lawyer Tom Arbogast told the court in December 2021 that his client had been the victim of a politically motivated prosecution by Mexican authorities.

Trauwitz’s original bail conditions included a $20,000 surety, requirement to live with his daughter, an 11 p.m. to 6 a.m. curfew, around the clock wearing of an electronic monitoring device and regular reporting to a probation officer. Last May, a judge approved Trauwitz’s move from Surrey to the Burquitlam area of Coquitlam. 

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Bob Mackin  A lawyer for Canada’s Department of

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