What’s a nice woman like Carole Taylor, a former beauty queen, national television journalist, corporate director and mother of two, doing in a place like this?

Although scenic Victoria is the backdrop, the “place” is British Columbia’s finance ministry, one of the West Coast’s hottest political seats. Yet here is Taylor, 59, in the Empress Hotel, making her first presentation as finance minister in Premier Gordon Campbell’s Liberal government. She is briefing a media lockup on her “mini-budget,” which is about to be tabled in the legislature.

British Columbia doesn’t usually do a mid-term budget, but last February’s 2005-06 fiscal plan was never passed because of the May provincial election, which returned the Campbell government to power, albeit with a substantially reduced majority.

Before the election, Campbell lost several key ministers to retirement, including finance minister Gary Collins. So Taylor was recruited as a “star” candidate. The two are old friends and political associates.Campbell is a former Vancouver mayor, as is Taylor’s husband, Art Phillips. Taylor served on Vancouver city council from 1986-1990.

After taking the Vancouver-Langara seat, Taylor was a shoe-in for cabinet, but the finance minister portfolio surprised some political railbirds.

She easily handled tough media questions, however, as she introduced the Sept. 14 mini-budget highlighted by tax cuts for business and financial help for seniors.

Putting the personable Taylor in the finance chair and emphasizing a $242-million financial-aid package for seniors was politically astute. In its first term, the Campbell government earned a reputation for heartless cost-cutting as it balanced the province’s books.

Taylor takes over the finance portfolio as the province comes off a record $2.6-billion surplus in 2004-05, driven by the hot economy. Still, there are major fiscal challenges.

Although the mini-budget reduced the province’s corporate income tax rate to 12% from 13.5%, retroactive to July, and created tax breaks for bioscience companies, Taylor warned that the much-higher budget surplus of $1.3 billion forecast for the current year is unsustainable. The February budget surplus was forecast at $220 million.

“Our economy is doing well, but we cannot take positive economic drivers for granted,” she said. The mini-budget forecast surpluses of $600 million for 2006-07 and $400 million for 2007-08.

Among her biggest challenges is the expiry of about 90% of all B.C. public-sector labour contracts next spring. A three-year wage freeze is about to end for many workers.

As Taylor noted, about 52% of the budget goes toward wages and compensation, so even a small increase for public-sector workers will have a big impact. Handling tough negotiations in union-strong B.C. will require a strong minister with good communications skills.

Her background should help. In her early career, she hosted CTV’s Canada AM and W5, and CBC’s Pacific Report. After serving on Vancouver city council, she chaired the
Vancouver Board of Trade, Vancouver Port Corp., Canada Ports Corp. and CBC/Radio-
Canada, and served on corporate boards including HSBC Holdings.

Her mini-budget increases the Liberals’ commitment to using budget surpluses to pay down debt. While it’s still early days, she’s started her new journey on the right foot. IE