VICTORIA — The Liberal government is grabbing more than $1.7 billion in revenue from the Insurance Corp. of B.C. and BC Hydro over the next three years, on the heels of rate hikes at both Crown corporations.

Tuesday’s 2014-15 provincial budget predicted $8.9 billion in net income by 2016-17 from Crown corporations to help the Liberal government balance its books.

That includes $1.23 billion in dividends from BC Hydro over the next three fiscal years, and $480 million of “excess optional capital” from ICBC during the same period.

The Opposition New Democrats criticized the Liberals Wednesday for taking money from cash-strapped Crown corporations, which in turn raised the rates they charged taxpayers.

ICBC raised basic insurance rates by 4.9 per cent in November, and Hydro rates are set to go up 28 per cent over the next five years, adding hundreds of dollars to the annual bills of most British Columbians.

NDP energy critic John Horgan said Hydro last year estimated its annual dividend to the province at $243 million but, after getting permission for the big rate hike, increased its 2013 dividend to $410 million.

Horgan called on Energy Minister Bill Bennett to apologize to B.C. taxpayers for having to dig deeper into their pockets to bail out the Liberal government.

Bennett refused, and said Hydro is in a difficult financial decision because the NDP governments of the 1990s failed to properly invest in the power corporation.

He promised last year to begin “weaning” government off its dependence on Hydro dividends, but not until after the 2017 provincial election.

Finance Minister Mike de Jong could not say Wednesday whether Hydro’s rate hike to taxpayers helped give it the extra money that it sent to the provincial treasury.

In 2012, the government let ICBC keep the “excess optional capital” — profit earned from selling optional insurance. That let ICBC hold rates stable for basic, required insurance.

De Jong said that in 2013 government returned to its practice of drawing revenue from ICBC.

The government’s new budget calls for $2.9 billion in net income next fiscal year from Crown corporations, to help achieve a $184-million provincial surplus.

Two of those corporations — the B.C. Lottery Corporation and the B.C. Liquor Distribution Branch — warned in their annual service plans Tuesday that their profit targets are at risk because of the soft economy and a drop in disposable income of people who want to gamble and to drink.

The liquor branch is forecast to send $862.1 million in profits to government in 2014-15, and $2.6 billion in the next three years.

The lottery corporation is to ship $1.2 billion to government in 2014-15, around $250 million of which is used for grants to non-profit and charity organizations.

De Jong said he’s not worried about those warnings because government has, over the years, developed reliable ways to forecast liquor and alcohol revenue.

“It’s not an area of the budget that tends to cause me the most concern, because there’s an element of stability in it,” he said.

NDP finance critic Mike Farnworth said people are finding their disposable income for gambling, liquor and other purchases squeezed because the government continues to hike fees, such as Medical Service Plan premiums.

Tuesday’s budget hiked the medicare premiums four per cent, effective January 2015. Premiums have risen 92 per cent since 2001, adding $33.24 a month to a single person’s rate, which is now $69.25 monthly, according to the Ministry of Health.

“That just shows a lack of forethought and planning that we’ve seen in much of how this budget is put together,” said Farnworth.

“They’ve made decisions based solely on wanting to reach a fiscal target they’ve put in place and really haven’t done either the work or given the thought to the impact of the decisions they’ve made.

“Whether it’s MSP premiums, or Hydro hikes, all that money is going to come from somewhere.”

rshaw@vancouversun.com