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

Mount Waddington Regional Fall Fair logo
Mount Waddington Regional Fall Fair cancelled again due to COVID-19 restrictions

The 2022 fall fair is still scheduled to take place in Port Hardy

North Island Gazette
EDITORIAL: What to do about homelessness in Port Hardy

‘people suffering from homelessness deserve to be treated with dignity and compassion’

North Island Eagles logo
North Island Eagles give update on the upcoming 2021-2022 season

The North Island Eagles minor rep hockey teams are getting ready for… Continue reading

Ma Murrays 2021 virtual ceremony screenshot
North Island Gazette wins big at 2021 Ma Murray Newspaper Awards

Zoe Ducklow and Bill McQuarrie both won gold at the online ceremony

Port Hardy council has agreed to cancel Canada Day celebrations in wake of the discovery of the remains of 215 children being found on the grounds of a former residential school. (North Island Gazette file photo)
Council votes to cancel Canada Day celebrations in wake of mass grave sites being found

Coun. Treena Smith made the motion for the chamber to not host Canada Day celebrations this year

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The Co-op gas station at Whiskey Creek is burning after a camper van exploded while refueling just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
Vancouver Island researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada: UVic professor

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

Most Read