The B.C. NDP and federal Liberal governments have released more details on their scheme to bail out developers by buying 2,200 unsold condo units to convert into affordable housing, but the new information only shows that the plan is even more irresponsible than previously thought. The cost of the bailout will be roughly $1.45 billion, and B.C. taxpayers will be on the hook for 90% of it, with the federal government only contributing 10%.

“This is a terrible deal for B.C., and it proves that David Eby and the NDP have no idea how to negotiate with the federal government,” said Kerry-Lynne Findlay, Leader of the Conservative Party of B.C. “The federal Liberals promised B.C. affordable housing. Then they churned out a plan that not only makes no economic sense, but also sees B.C. paying for 90%. And the NDP just knuckled under!”

“The NDP government plan to somehow scrounge up over $1 billion to make this bailout work,” said Linda Hepner, Conservative Critic for Housing. “This is a grossly irresponsible use of taxpayer dollars, and it only serves to artificially prevent housing prices from falling to fair market rates. It would actually be far cheaper to build 2,200 more housing units from scratch. Furthermore, the $1.45 billion number is itself suspect. First, it was $3.2 billion, and after ferocious backlash its now $1.45 billion. How is that possible? Who is doing these estimates and how can we trust them? Regardless, given the NDP’s track record of turning major projects like the George Massey Tunnel replacement into endless money pits, it’s likely the real cost will be far greater than their estimate. And while they expect a large portion of this bailout to be funded through financing, it is difficult to see how any loans will be repaid if the housing units will truly be offered at affordable rates. The numbers just don’t add up.”

“While the NDP government have cancelled essential projects like long-term care facilities and hospital expansions and suspended the Community Housing Fund, a $13 billion deficit doesn’t seem to stop them from forking over another billion dollars to wealthy developers,” said Findlay. “As B.C.’s credit rating keeps getting downgraded and hardworking families struggle with the cost of living, the NDP government is wasting our money paying off developers. Instead of fixing the housing crisis by cutting the taxes and red tape that are holding the housing industry back, the NDP have decided to go on another spending spree we can’t afford, and ordinary British Columbians will pay the price.”