Populist HST ‘fix’ coming soon

Premier Christy Clark

Premier Christy Clark

VICTORIA – Premier Christy Clark’s shifting position on the harmonized sales tax finally appears to have come to rest.

Her government is preparing to “fix the HST,” and the terms of that fix will be made available before people mark their ballots in a mail-in vote in June, Clark told reporters at the legislature last week.

There has been a flurry of activity on the HST in recent days, and a few things are becoming clear. Clark and Finance Minister Kevin Falcon are preparing to do what I’ve been saying for months the government must do – make a solemn vow to cut the HST rate to 11 per cent as soon as they can.

And in keeping with Clark’s fondness for populist, headline-hunting gestures, the government will also likely rebate the HST on bicycles and bicycle helmets, and possibly fitness club memberships as well.

A couple of other “family-first” exemptions may also be gleaned from the town halls, online surveys and polling that are currently going on.

A well-known polling firm was in the field last week, asking not only about people’s impressions of their new premier and opposition leader, but also their view towards a reduction in the HST rate. Win or lose the mail-in referendum on the tax in June or July, the B.C. Liberals are getting ready for a fall general election.

Falcon estimates that cutting one point from the HST would cost the provincial treasury $850 million. Given that revenue from the HST is running well ahead of the finance ministry’s estimates, that figure could be low.

The government’s independent panel issued its report last week, and it confirms that the HST is bringing in more revenue than expected. Going back to the PST would not only trigger huge costs of paying back federal transition funds and reconstructing a provincial sales tax office, it would cost the B.C. government more than $500 million in net revenue in the first year, and more after that.

Here’s one reason why HST revenue is higher than originally projected. Contrary to the apocalyptic predictions of some in the restaurant industry, the panel compiled Statistics Canada figures and found that B.C. restaurant sales rose by three per cent in the first seven months of the HST. That’s exactly the same increase as the rest of the country, despite the supposedly crushing effect of the tax and B.C.’s new impaired driving regulations.

Jobs, Tourism and Innovation Minister Pat Bell has pitched in as a host for the telephone town hall program that continued this week. These giant conference calls were to be staged Tuesday evening in the Okanagan, Fraser Valley and northern and central Vancouver Island. The program wraps up Thursday evening with calls to Richmond, South Delta, the North Shore, Victoria and Vancouver.

Bell said his call for the Interior and North Coast had more than 30,000 people on the line. Some were still upset about the HST, while others had misconceptions about what costs it does and doesn’t increase, he said. And lifting the tax from bicycles was a popular choice.

I continue to get e-mails from people who are misinformed about the HST. One reader said he is paying it on heating oil. I suggested he check his bill again, and there it was, a rebate for the seven-per-cent provincial portion. The GST applied before and it continues to apply now.

These telephone town halls have gone a long way towards putting the discussion on a factual basis. Voters may yet be persuaded to keep the HST.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

tfletcher@blackpress.ca, www.twitter.com/tomfletcherbc

Just Posted

This parking on the east side of Martin Street will be removed permanently Monday morning (June 21, 2021) to put in the Lake to Lake bike lane. (City of Penticton)
Parking removed permanently to make way for bike lane in downtown Penticton

Work begins Monday morning to replace parking spots with bike lane on Martin Street

Jaimee Peters photo of a Willow Midwives helping with a birth. Willow closed its doors March 31 because of a shortage of midwives. (Contributed)
South Okanagan’s only midwifery to re-open this summer

Willow Community Midwives was forced to close because of a shortage of midwives

Gord Portman getting ready for the Father’s Day dunk tank fundraiser for Discovery House. So far Portman has raised $3,000. (Facebook)
Penticton man takes the plunge for recovery house that helped save his life

Gord Portman said Discovery House and Pathways have been everything in his 1 year sobriety

(File photo)
Supreme Court Justice rules Bay has to pay Penticton’s Cherry Lane mall

The ruling found that there had been no unavoidable delay preventing the Bay from paying their rent

Summerland cidery Millionaires' Row is hosting a Father's Day car and art show. (Facebook)
Vintage cars, art and cider for Father’s Day

Summerland’s Millionaires’ Row Cider Co. is hosting the car and art show

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed Eli Beauregard facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

Most Read