May 9, 2013

BC residents not likely to get their citizen dividend.

Residents in British Columbia, Canada, are unlikely to see a citizen dividend.

The BC Liberals who propose the prosperity fund have not been very clear on what to do with it. There is no indication it will be a citizen dividend fund, like the Alaska Permanent Fund.

Instead, the prosperity fund will be used to pay government debt. As more debt will definitely be created by future politicians, this could empty the prosperity fund, just like what happened to the Heritage Fund.

There is some unspecified guarantee for future residents.
"Create the BC Prosperity Fund to capture LNG and proposed Kitimat Clean refinery royalty revenues, and dedicate all revenues to debt reduction until provincial debt is eliminated.

Enact legislation to protect the BC Prosperity Fund from becoming a 'cash-cow' for wasterful and desperate government spending."

The description is more like the Singapore reserve instead of the Alaska Permanent Fund. The Singapore reserve is also kept perpetually for a future Singapore.

For BC residents, the prosperity fund may not even be created if the BC Liberals lose the election this month.

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