B.C. fuel rebate may be popular, but is it good policy?

Days after the Horgan Government announced one time $110 rebate cheques funded by an ICBC surplus, to be given to ratepayers months from now to help with high gas prices, experts told CTV News the reasoning is a bit hard to grasp.

Hamish Telford is an associate professor of political science at the University of Fraser Valley, and he says drivers are often a significant voter base and governments often use populist moves to mitigate damage to their popularity.

"People grumble about it and governments want to be seen to be doing something...anything," he told CTV News. "And even if that involves just sending them cash to try and deal with the problems, not good public policy, but it may be good politics."

That may be why across North America, governments are taking action. Several states, and Alberta, are reducing taxes.

The NDP's plan to provide a fuel rebate is under fire for also going to electric vehicle owners, and for using money from ICBC coffers. Something the party said it wouldn't do.

During Question Period, opposition leader Shirley Bond accused Premier John Horgan of repackaging an anticipated rebate.

"The premier also knows full well that this rebate should've been going to ratepayers anyways," she quipped.

Horgan fired back, pointing out ICBC insurance premiums rose 50 per cent under the previous Liberal government.

"It's all good and well to say you should've given it to them anyway, well you had 16 years to do it (provide a rebate once) and you didn't do it once," Horgan replied.

Economist Marc Lee with the Canadian Centre for Policy Alternatives said it's taking money from ICBC and returning it to drivers. He said spinning that as relief at the pumps was "a little bit incredulous."

Lee suggested a federal tax on the money oil and gas companies are making now could be used to then help lower income earners. Failing that, he suggested some sort of price regulation like Quebec and some maritime provinces do.

As far as cutting provincial taxes at the pump goes, Lee told CTV News it's unclear if oil and gas companies would just jack up their prices.

"Certainly we have seen that, you know, oil companies definitely are not out for consumers best interest when setting their prices," Lee added.

For years, the NDP has marketed itself as making life more affordable, by knocking out bridge tolls and cancelling medical services premiums. Now with gas prices at an all-time high, the government is under pressure.

Yet Lee pointed out, for a government focused on equity, the relief may miss the mark.

"Giving money to someone who's driving a really high-end vehicle who may be very well off and [it is] giving to someone who uses their vehicle for work and is struggling to get by. So I think more targeted measures would have been appropriate."