Well, my interest in free trade zones is their location, and in estimates we were told that it wouldn't necessarily be in Delta. It might be in Prince Rupert or Prince George or at the Vancouver Airport. V. Huntington:

The BC legislature brought up some concerns May 18, 2011, regarding the government’s pursuit in considering location specific Foreign Trade Zones (FTZ) to be set up in British Columbia, possibly in Prince Rupert.

On March 10, a Request for Proposal (RFP) was closed and a British Columbian company, InterVISTAS Consulting Group, was awarded a contract to conduct a Feasibility Study of a British Columbia Foreign Trade Zone Program. InterVISTAS has until July 31 to complete the study at which point the government will further explore such a program.

Setting up a FTZ would mean allowing foreign goods to arrive, be assembled, and stored in the zone duty and tax free before being shipped to its market destination. The subsidization of foreign companies is at the expense of British Columbians, who may in turn pay the price by paying the initial set up costs and/or allowing companies to work in an FTZ tax free until they find a better deal elsewhere.

Guy Gentner, MLA for Delta North and critic for Intergovernmental Affairs has some serious concerns about FTZs, and pointed out in the legislature that the responsibility for such zones normally lies within federal jurisdiction. There has been no consultation by the province with the federal government so far as stated numerous times by Minister of Jobs, Tourism, and Innovation, Pat Bell. A prospective homeowner would definitely make sure the house was for sale before ordering an inspection.

North Coast MLA Gary Coons is also concerned in the lack of leadership this province is taking. “Disregard for the opinion of British Columbians regarding developmental projects is becoming standard practice. Based on the way decisions seem to be made these days, whether the HST, BC Ferries, BC Rail, or TILMA, the question one seems forced to ask is how much will British Columbians have to pay in order to reverse a decision they didn’t make in the first place?

Will Canadian labour standards be enforced or will we create zones where one’s liberties are left at the gate? Will there be a negative effect on labour standards and will it threaten hard-won improvements in labour conditions, noting the ILWU Canada (Longshoremen) just agreed to an eight year contract? Will there be a “race to the bottom,” which assumes that competition will drive labour standards (and also environmental standards) to the lowest common denominator?
“I’m not against foreign investment in our region or BC, but I am against exploitation,” said Coons. “Research questions how to justify introducing an economic foreign zone to save existing manufacturing jobs and to encourage new ones.”

We seem to be on a slippery BC Liberal slope that may not be good for our region and not good for British Columbia. There are too many questions, with no answers! We need a full disclosure of what is going on!

Hasnsard Transcript from BC Legislature

G. Gentner: Who or what entities make up this special foreign trade zone coalition steering committee?

Hon. P. Bell: I'm not sure whether this is a complete list or not, but I think it presents a flavour of the sorts of individuals that would be on this steering committee: Diane Gray, who is the present CEO of Centre Port Canada; Claude Mungeau, who is the present CEO of CN; David Miller, who is also at CN; Jane O'Hagan, who is the chief marketing officer for CP Rail; Michael Moore, president and CEO of Global Container Terminals; Laurie Jansen, who is also with Global Container Terminals; Bob Wilds, who is with the Greater Vancouver Gateway Council; Lloyd McComb, who is with the Greater Toronto Airport Authority; Karen Oldfield, who is with the Halifax Port Authority; Robin Sylvester, who is with Port Metro Vancouver; Duncan Wilson of Port Metro Vancouver; Don Krusel, who is with the Prince Rupert Port Authority; Eric Waltz with TSI Terminal Systems Inc.; Larry Berg, who is the present CEO of Vancouver Airport Authority; and Barry Rempel, who is the president and CEO of the Winnipeg Airport Authority.

G. Gentner: John Ries from the Sauder School of economics has stated that foreign trade zones are simply a race to the bottom. With foreign trade zones, government has to provide subsidies and loosen environmental labour standards.
It is unclear what the benefits are to British Columbians, but it is clear that foreign trade zones are indicators of a failed economic policy. For the record, can the Minister of Transportation and Infrastructure explain what the benefits of pushing through a foreign trade zone would be for the average British Columbian?

Hon. B. Lekstrom: Well, we have posted a request for proposals in February for an independent research and analysis of foreign trade zones. I'm looking forward to receiving that. But my knowledge of foreign trade zones — and I'm sure the member has done his research — is that this is not about a tax-exempt status for workers losing their jobs and so on.

This is about the ability that's used around the world in foreign trade zones where commodities can be brought forward, products. They can be value-added. If they remain in the country — and in this case, it would be Canada — the full taxation statutes would apply. If they are then redistributed to other countries, they wouldn't.
I'm looking forward to the information that's brought forward, and we'll read it thoroughly, as I'm sure the member will do as well.
Mr. Speaker: The member has a supplemental.

G. Gentner: It's interesting. The minister seems to know what a foreign trade zone is, and yet they're still asking for a request for proposal to do a research study on it.
If those are the benefits, then why are the B.C. Liberals choosing to sneak this policy through, just like they did with the HST? Hon. Speaker, once a sneak, always a sneak.
Now, yesterday on Global the Minister of Jobs, Tourism and Innovation stated that the Premier asked him to have a hard look at the foreign trade zone. Now, can the minister explain to the House how the Premier can ask the government to initiate a foreign trade zone when the request for a proposal was already underway before she had even won the leadership bid?

It doesn't add up. The good old boys are back at it again — aren't they, Mr. Speaker?

Interjections.

Mr. Speaker: Members.

G. Gentner: The ministers will have their foreign trade zone blueprint in their hands this summer with no public consultation. It's a done deal. To the minister: if this is such a good deal for British Columbians, why so much secrecy?

Hon. B. Lekstrom: Probably some information that may change your mind on the question you've just asked, actually. The RFP is a public document posted on the Internet. I don't know how secret that could possibly be if it's available to the world for their consideration. I encourage the member to look at that.
Foreign trade zones — as well, in your earlier comments — are not a new concept. How would I know what they are? I've actually done some research, hon. Member, and I encourage you to do the same.

POTENTIAL USE OF DELTA LANDS FOR FOREIGN TRADE ZONE

V. Huntington: Well, my interest in free trade zones is their location, and in estimates we were told that it wouldn't necessarily be in Delta. It might be in Prince Rupert or Prince George or at the Vancouver Airport. But I have to say — and I hope the minister forgives me for being suspicious: when the former Minister of Transportation takes B.C. Rail to Dubai with him, when Global Container Terminals at Deltaport is owned in Dubai, when Global Container chairs the steering committee advocating free trade zones in B.C., when B.C. Rail has stockpiled more land than it requires for rail expansion and when a land consolidation group is secretly optioning agricultural land adjacent to the B.C. holdings in Delta.

Will the minister tell me whether this government is contemplating a free trade zone on the agricultural lands in Delta?

Hon. B. Lekstrom: The issue of foreign trade zones — as I said, I'm looking forward to receiving a document that will outline. This is not a new concept used around the world. There is no determination whatsoever, Member, that any determinations have been made, whether you're suspicious or not.

I have had the opportunity to meet with you on numerous occasions. There is no determination, locations of any such, and no decision has been made on that. I think that would be far too premature.

As I indicated, there was an RFP put forward through the Internet, a public document. Again, I want to reiterate that. I'm looking forward to the findings of that. I'm looking forward to the ability to review that document. But no, there has been no indication of any piece of property, whether it be in British Columbia or anywhere else that I know of, that has been committed to such an exercise.

Mr. Speaker: Member has a supplemental.

V. Huntington: I thank the minister for his response, but we've learned some hard lessons in Delta, and when this government secretly gets this far down the road in any planning, it's usually a done deal.

A Dubai model free trade zone has nothing to do with community. The whole point of a modern free trade zone is to protect business from community. This isn't about jobs. It's about greed. It's about flipping land in Delta, and it's about the destruction of the finest agricultural land in Canada.

I'm asking this minister: if this feasibility study recommends free trade zones in B.C., will the minister tell us today that his government will not remove land from the ALR to create an industrial wasteland in Delta?

Hon. B. Lekstrom: Recognizing your concerns and suspicions, I do want to point out they're foreign trade zones, not free trade zones, something that we're looking at.
I don't want to predetermine what the report will say. I'm looking forward to reading it, seeing what it has. Foreign trade zones do, though, when you look around the world, have the opportunity to create jobs.

There is a lot of speculation in your question, a lot of speculation that I think is unfounded, to be honest with you, Member.

I'm looking forward, as I said. A foreign trade zone concept is not new in the world that we live in. It is a concept that we have put out an RFP for. We have commissioned a report that will be brought back. I'm looking forward to that.

I am all for continuing to enhance our gateway to the Asia-Pacific. It is a vitally important part of our economy. If we have the ability to create jobs for British Columbians and their families and their children growing up here, I'm going to do everything I can to ensure that happens.