Harper wavering on HST: Layton

HIGH-STAKES POKER: PM seems afraid to put it before House, says NDP

Prime Minister Stephen Harper may be getting cold feet about the controversial Harmonized Sales Tax.

That was the suggestion from federal NDP leader Jack Layton, who said on Saturday that the ruling Conservatives may be having second thoughts about introducing a motion to change federal tax regulations to pave the way for HST.

“(Harper) seems to be afraid to bring it to the House of Commons (for a vote), “ Layton said after spending the day campaigning with New Westminster-Coquitlam candidate Fin Donnelly before Monday’s by-election.

“It should have been in the supplementary estimates bill that was tables at the very end of last week. The $2 billion should have been there, but he didn’t put it in. I think he is hiding it.”

Ottawa has promised $6 billion - $4 billion to Ontario and $2 billion to B.C. – to aid in the tax transition.

The opposition parties have said they may not support the Conservative motion to alter tax regulations, and because the motion could be budget-related and therefore a confidence vote, it could prompt a federal election.

Layton said any decision about an election rests with Harper.

“We’ll have to see, but certainly Mr. Harper does not have to provoke an election,” Layton said. “He could realize people feel this is the wrong tax at the wrong time and simply not bring it forward.

“That is his choice”.

“We are opposing this HST with all our energy and with all the tools available to us, including our votes. It is wrong to put an additional seven per cent on B.C. families. It is particularly going to hit people for whom their income is primarily used to buy the basics.”

The bill is expected to be presented to Parliament by March 31 in order to meet Ontario’s implementation date of July 1, 2010.

Layton said he wouldn’t be surprised if the Conservatives try to bundle the tax-regulation changes in with other taxation policies or budgetary measures to increase their chance of being passed, rather than introduce it as a stand-alone motion.

“I’m sure they will try some tricks like that so they can say we voted against something,” Layton said. “They’ll put some goodie out and say we’re voting against it.”

Layton predicted that the outcomes of Monday’s four federal by-elections – in B.C., Quebec, and Nova Scotia – will be very telling when it comes to gauging the public’s views on the blended tax.

“(Harper) is bribing B.C. to put (the HST) in place with almost $2 billion of taxpayer’s money,” Layton said. “This is a golden opportunity for people to send a message to Harper that this is not appreciated.”

Layton said he’s unsure how his fellow opposition parties will vote, with some Liberal MP’s stating their opposition to the HST and spokesmen for leader Michael Ignatieff refusing to comment.

Finance Ministry officials have refused to detail the specifics of the HST bill.

Many consumer groups oppose the plan to combine federal and provincial taxes, saying it will raise the prices of many items not previously affected by provincial sales tax – like fast food, travel and haircuts.

By Stuart Hunter, The Province
November 8, 2009