Premier Gordon Campbell promised to boost B.C.'s shelter rates for welfare recipients and build better facilities for the mentally ill, among other pledges in a speech Friday.

The premier signalled the major change in government direction as he addressed delegates at the Union of B.C. Municipalities convention in Victoria.
 
"Can we do more? Sure we can do more, and today I can tell you that we will increase the shelter allowance for income assistance recipients in the next budget for British Columbia, and that will be the first increase since 1994," Campbell said.

Premier Gordon Campbell has announced a major shift in his government's approach to mental illness.
(CBC)

The premier did not announce a specific dollar figure.

The current shelter allowance ranges from $325 a month for single welfare recipients up to $770 a month for some couples and two-parent families in the largest units.

Campbell also told the mayors that the province will provide new incentives to build new facilities to help people with mental illnesses and addictions.

"We're going to listen to what we've heard from you, and you know what you've told me — de-institutionalization is a failed experiment.

"So we're going to work with you to make sure that we provide for the care and the support for people with mental illnesses as we look ahead, and it'll be major item on our agenda."

'…De-institutionalization is a failed experiment. So we're going to work with you to make sure that we provide for the care and the support for people with mental illnesses '—B.C. Premier Gordon Campbell

Campbell is providing few details, but he is promising more facilities, better care and more services for the mentally ill. That will include the Riverview Hospital in Coquitlam and small community-based facilities with as few as three or four beds.

"One of the things we have to do, when we're looking at this, is recognize the situation we see in our streets today is not acceptable," he told the delegates. "It's not something I want. It's not something the municipalities want."

The premier said a major part of the effort would be financial help for municipalities to increase housing densities, speed up approval processes and open their arms to more housing for the homelessess and the mentally ill.

Money for Victoria sewage treatment

He also promised that the province would pay one-third of the cost of building a new sewage treatment system for Greater Victoria.

"The lack of sewage treatment for our provincial capital is an embarrassment to British Columbians," Campbell said.

The Capital Regional District got an order in the summer from the province to come up with a plan for proper sewage treatment by June 2007.

The project could cost as much as $500 million.

During the federal election campaign, Prime Minister Stephen Harper promised that a Conservative government would contribute up to one-third of the costs of a sewage treatment system for Victoria.

There was also a promise of $21 million over three years for infrastructure in towns with a population of under 5,000, plus $20 million to help communities create or enhance outdoor public meeting places.

$40M for bike paths, walkways and more

Campbell also promised $40 million over four years for a "LocalMotion" fund aimed at getting British Columbians out of their vehicles.

It will help build bike paths, walkways, greenways and improved access for people with disabilities.

The premier also said that as of 2007, all new cars leased or purchased by the B.C. government will be hybrids.