They're at it again. The same folks who claimed tax cuts for B.C.'s wealthiest would "pay for themselves" – strange how after 12 years of those tax cuts the provincial treasury is billions in the red because of those tax cuts – are out to convince B.C. it's time to give away the Insurance Corporation of British Columbia (ICBC).
Make no mistake. The push to privatize ICBC is not some esoteric policy debate. It's a feeding frenzy sponsored by profiteers who see nothing but dollar signs if they succeed in convincing their friends in the ranks of the BC Liberals that now is the time to pull the plug on the public's ownership of ICBC.
These same folks are no doubt feeling emboldened because the Clark government has been so willing to put other public assets – the province's Liquor Distribution Branch is the latest – on the auction block. Unfortunately for B.C. voters, as the BC Liberals continue to lose altitude in public opinion polls they are becoming increasingly reckless, following more of a scorched-earth policy than anything approaching sensible public policy, when it comes to our public assets.
For privatizers, however, that recklessness is exactly what they want. Distressed governments are easily manoeuvred to sell valuable public assets at distressed prices.
What privatizers will never admit is that ICBC is a tremendous benefit for our province, its owners – the citizens of B.C. – but most of all its customers. The Consumers' Association of Canada (CAC) reviews auto insurance across Canada and finds ICBC offers some of the best value for drivers when it comes to insurance coverage and rates. A similar review done by Statistics Canada backs up the CAC findings as well.
Even in provinces where private auto insurance is the norm, provincial governments are often forced to regulate private insurers to protect drivers from discriminating practices and limited access to proper insurance coverage. Private auto insurance is not the panacea that privatizers would like us all to believe.
As good as ICBC rates are today, there is a strong case to be made that those rates could be even lower if it were not for the demands made by the BC Liberals that have forced ICBC to redirect its surpluses to the provincial treasury instead of back to drivers in the form of better coverage, increased service and lower rates.
Between 2010 and 2014, B.C.'s minister of finance has directed ICBC to pay more than $1.174 billion to the provincial treasury. The unfortunate part of that fact is that given the BC Liberals' track record of under-investing in public services and over-investing in tax cuts for corporations and B.C.'s wealthiest, little of the contribution that ICBC delivers to the provincial treasury is making a real difference for average households.
Privatizers will also never acknowledge the important public benefit ICBC delivers through its commitment to road safety programs and road improvement projects in the province. That long-standing commitment to road safety makes great economic sense; by improving road safety, ICBC is able to reduce accidents and injuries, an outcome that is not only good for drivers and communities, it helps improve ICBC's bottom line.
If ICBC were sold off, what big U.S. insurance company would make similar commitments and investments? The answer is none because in the world of for-profit, private insurance the benefit of traffic safety investments by one insurance company could never be channelled back to that same company.
Selling ICBC is a lucrative prospect, but only for the handful of private investors and private insurance companies who hope to gain at our expense. B.C. deserves better. That's why keeping ICBC in public hands makes the most sense. •
