BC Politics with Hubert Beyer

VICTORIA -- The continuing controversy over the proposed sale of Crown lands worth in excess of half a billion dollars is beginning to take its toll on Premier Vander Zalm. He's losing his cool.

Pressed by reporters during hallway interviews and opposition MLAs in the legislature for explanations why his principal secretary, David Poole, interfered in the bidding process for the properties, the premier became extremely testy.

He repeatedly walked away from reporters, expressing his reluctance to give newspaper reports too much credibility. In the legislature, he accused the NDP of being forever preoccupied with studies and more studies, rather than working for the province's economic vitality.

If it had been up to the NDP, the premier said, there would be no B.C. Place Stadium, there would be no Sky Train. There would be no progress.

The disposal of the publicly-owned properties, administered by the B.C. Enterprise Corporation, has, of course, nothing to do with the Sky Train, the stadium or with progress. It only has to do with whether the taxpayers will get their money's worth from the sale of the lands they own, and whether the process is above-board.

The question also isn't whether Peter Toigo, a personal friend of the premier's should have been able to bid on the lands. The question is whether the method by which he was invited to submit his bid was proper.

On the auction block are 4,850 hectares of land, including the Expo site at Vancouver's False Creek, the Westwood lands in Coquitlam, and BCEC holdings at Whistler and Victoria's Inner Harbor.

Economic Development Minister Grace McCarthy asked for bids on the Expo site last fall. One of the bids was from Hong Kong billionaire Li Ka-Shing who offered $300 million for the 100-hectare site. And then, last December, the premier's chief aid, David Poole, arranged for a meeting between Toigo and the board of directors of the B.C. Enterprise Corporation.

As late as last month, the premier said friend or no friend, Toigo was too late to put in his bid for the Expo site. A short while later, he altered his stand. If Toigo wanted to put in a bid for all the BCEC holdings, that was a different matter. Next thing we knew, Toigo was offering to take the entire 4,850 hectares off our hands for $500 million.

At this point things begin to get fuzzy. McCarthy said the BCEC board had been very reluctant to meet with Toigo. Poole said the board had been very enthusiastic. Board members said they had been anything but enthusiastic.

The NDP accused the premier's office of unprecedented interference in the affairs of a Crown corporation. Now under pressure, the premier said he could see nothing wrong with Poole's action. Any citizen was entitled to get all the information that was available in connection with the proposed sale of the lands.

The opposition wasn't buying it. Vander Zalm, they said, was giving preferential treatment to his friend and chief fund raiser. When he belatedly appointed Poole to the BCEC board, the howls got louder.

Out of the blue came media reports that Attorney General Brian Smith had ordered an investigation into Toigo's part in the BCEC affair. The reports were never substantiated. Nor was the speculation laid to rest.

There were rumors that Vander Zalm was on the verge of dismissing Smith from cabinet and firing Ted Hughes from his post as deputy attorney general, but held back sat the last moment.

And that's where the controversy stands now. Pressure on Vander Zalm shows no signs of letting up. The premier remains at odds with McCarthy and Smith, not to mention the opposition.

Galling as it may be for Vander Zalm, his best move right now would be to follow a suggestion by the NDP to order an independent market analysis of all BCEC holdings.

From the premier's point of view, there may well have been nothing wrong with bringing another bidder into the picture, even if that bidder happens to be a good personal friend.

On the other hand, when a controversy grows to such proportions that the premier is losing the un1qualified support of two powerful cabinet ministers, a second look is in order.