B.C. residents will have to let go of more of their hard earned cash in 2012, due to increases in the cost of a number of premiums and taxes.
I think the list of increases is significant; a BC Hydro rate increase, the Insurance Corporation of British Columbia (ICBC) basic rate increase, an increase to Medical Services Plan (MSP), Canadian Pension Plan (CPP) and Employment Insurance (EI) premiums, an increase to taxes on gasoline and the loom of impending increases to municipal property taxes this spring, as well as possible water and sewer rate increases that the Village of Burns Lake council are currently discussing.
If you are feeling bombarded by increases, it is probably for a very good reason.
It seems the cost of natural gas, electricity and auto insurance rates are getting out of hand.
For some, the succession of increases is going to be too much to handle. Not to mention that other areas of the economy will probably suffer as a result. The amount of expendable cash people will have for things like entertainment, dining out and shopping will reduce.
While there is a decrease to Pacific Northern Gas (PNG) rates slated for 2012, it is minimal and probably won’t be noticed on monthly bills. Equating to only about $13 per year, it is hardly worth mentioning.
PNG say their clients haven’t been in a position to benefit from any declines in natural gas prices because the company lost a number of major industrial customers who paid a lot towards the utility’s pipeline expenses. Perhaps, instead of passing all the costs on to their residential customers some corporate restructuring and trimming down could have been done.
B.C.’s MSP premiums have also been steadily increased over the last two years. In 2009 B.C. families paid $108 per month in MSP tax. This increased to $114 in 2010 and then to $121 in 2011. The additional hike in 2012 means families have seen their MSP bills go up by 18.5 per cent in just two years.
BC Hydro had originally sought a rate increase of 9.7 per cent per year through to 2014, but this was rejected by the B.C. Utilities Commission after it was identified that $819 million in reductions could be passed on to the consumer.
The company also eliminated 300 positions in October 2011, with another 150 positions set to be slashed in the coming three years.
Despite this, B.C. residents had already soaked up a 6.11 per cent electricity rate increase during 2010. The company says rate increases are necessary to prepare for a growing population and aging infrastructure.
ICBC chief economic officer Jon Schubert also defended their rate increases by saying that there has not been an increase in ICBC rates since 2007 and said rates are increasing because claims increased by $200 million during the first nine months of 2011.
I think the provincial and federal governments should be stepping up to the plate and helping out the citizens B.C.
Help by streamlining and trimming the fat at these Government owned and controlled corporations. Why should we have to pay for corporate excesses?