Tom Fletcher

Black Press

Premier Gordon Campbell is expected to deliver an update on how to deal with the weakening B.C. economy Wednesday evening.

Unlike some other premiers he joined this week to review the international financing crisis, Campbell does not intend to put B.C. into a deficit to stimulate employment, at least during this fiscal year. In its most recent quarterly finance update, the finance ministry projected a $1 billion surplus for the provincial government for the fiscal year ended in March, driven mostly by natural gas royalties and record sale of drilling rights for gas fields in northeastern B.C.

Campbell has hinted at accelerating the pace of major public projects such as transit construction, but has ruled out deficit spending as is being considered by Ontario.

"It's taken us more than a decade to get out of the deficit holes that were dug," Campbell told the CBC after the premiers' meeting in Montreal Monday. "And I think we should be building on that because that's the foundation of that financial prudence into the future, not starting to dig another hole. So I am not in favour of deficit financing."

NDP leader Carole James said Tuesday the unscheduled economic update shows the B.C. Liberals have emerged from denial after the sagging of stock markets and the struggles of the banking system.

We've seen unemployment growing, wages are stagnant, retail sales are dropping, the construction boom is over, and major infrastructure projects are now threatened," James said. "And as we also know the forest industry has been in crisis for almost two years. For months the Campbell government has had its head in the sand. The premier and the finance minister have been acting as if B.C. is immune to this crisis."

James repeated her call for Campbell to scrap the carbon tax on fuel, which she noted is expected to double a few weeks after the election scheduled for May.

"It makes life less affordable for families, it kills jobs, and it hurts the economy at a time when we see worrisome signs," James said.

She also called on Campbell to undertake a "line by line" review of ministry spending, drop the latest round of ads touting B.C. tax cuts, and reverse the recent increase in maximum salaries for deputy and assistant deputy ministers.

James said Campbell shouldn't be looking for television time to make his announcement, but rather laying out his plans in the legislature and taking opposition questions.