Former Prime Minister Kim Campbell once said elections are no place to talk about issues. Thankfully, that doesn’t seem to be the case with B.C.’s Liberal leadership race. We are now beginning to catch a glimpse of the policies that candidates plan to prioritize if they become premier, from merit pay for teachers to a possible vote on the future of the carbon tax.  As the leadership race switches into high gear, let’s hope several other important pressing issues are addressed.

Perhaps no priority is more critical than B.C.’s ailing health-care system. With a looming sea change in demographics, health-care spending will continue to consume a larger and larger portion of government resources.

As it stands, health care is already the government’s largest expense at 43.1% of total program spending. While that in itself is not serious, health spending is increasing at unsustainable rates.

Over the past five years, it has increased by nearly 25%, significantly faster than the growth in available revenue. If the current trend prevails, health-care spending will soon drastically limit spending in education, social services and many other government programs.

Despite health-care spending increases, the median wait time between referral from a general practitioner and delivery of care by a specialist is still 18.8 weeks. In addition, access to doctors and medical technology in B.C. continues to lag behind that in most other developed nations.

Yet, other developed nations with universal-access health care are able to buy more and higher quality care for less money. Experience in these nations suggests that B.C. should adopt two key health policies: cost sharing and competition in the delivery of publicly funded care.

International evidence shows that competition produces higher-quality care than monopolistic public provision of services. In addition, research shows that when patients are responsible for some of the cost of their care, they use fewer resources and end up no worse off in terms of health outcomes. Introducing just these two sensible health policies, B.C. would reduce public health spending and improve service.

Getting health-care spending under control will also help turn B.C.’s budget position from red to black, another key priority for the new leader.

According to the latest forecasts, the province will register a $1.7 billion deficit for this fiscal year (2010-11). This comes after a $1.8 billion deficit in 2009-10 that ended a run of five deficit-free years. Under current projections, we can expect deficits until at least 2012-13.

The sooner B.C.’s next premier gets the budget back in balance, the sooner he or she can continue with the pro-growth tax policies that Gordon Campbell established when the Liberals came to power in 2001.

Balancing the budget would free up the resources needed to undertake initiatives that would strengthen B.C.’s economy, including tax relief aimed at increasing the incentives for British Columbians to work, save, invest and engage in entrepreneurial activities.

Finally, the new premier must ensure that British Columbians understand that repealing the HST will significantly increase the cost of investment in machinery, equipment and technology. Since the new harmonized sales tax exempts business inputs, it reduces the tax penalty on new business investment, thus improving the incentives for B.C. businesses to invest.

To gain support for this important new tax reform, the incoming premier should consider reducing the provincial portion of the HST.

Fixing B.C.’s health-care system and building a stronger British Columbia through a renewed focus on pro-economic growth policies might not be easy, but it is achievable. Let’s hope the winning candidate is up for the challenge.