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Kelowna  

MLA stands up for IH

Interior Health claims the province's newly introduced employer health tax will result in a $3.3 million budget shortfall.

The tax, introduced during last month's provincial budget, would replace MSP contributions.

It would come into effect Jan. 1, 2019, while MSP premiums will not be completely phased out until 2020.

Kelowna-Lake Country MLA Norm Letnick brought the issue to the floor of the Legislature during Question Period Tuesday.

“It's not just family businesses, school boards, and non-profits impacted by the new NDP employer health tax. Interior Health expects a $3.3 million dollar shortfall,” says Letnick.

That shortfall, Letnick said, would be ongoing beginning in 2020.

He asked the health minister if there was enough money in the budget to cover the expected shortfall.

Instead, Finance Minister Carole James rose to say only that health authorities would see savings in the future.

The new tax is drawing the ire of small businesses, school boards and municipalities.

The City of Burnaby expects to pay an additional $3.3 million.



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