Thank you, Mr. Wallace. I think it's a very good question.
In terms of the experience in the Atlantic provinces, we expect the same thing would happen in Ontario and British Columbia if the HST goes forward. You're putting in a tax system that makes it much more competitive for companies that make something and companies that export something into other markets to be located in those provinces.
If you're producing this microphone, for example, currently on all the inputs that are purchased, assuming they are purchased here in Canada—let's say $100 of inputs go into a product—you have to pay provincial sales taxes in Ontario and British Columbia. Under the new system, companies would get these taxes reimbursed, because HST is a value-added tax, just as the GST is, and you have to charge it to your consumers, but not if you're exporting the products.
In other words, companies that are paying all these taxes on their inputs right now, which we estimate to be $6.9 billion in Canada, would get these taxes reimbursed and could pass on those savings to their clients, but they could also make additional investments in creating jobs, putting in new machinery and equipment, investing in the skills of their employees, and so on.
There are a number of studies. I know Professor Michael Smart of the University of Toronto has done some work on estimating the impact of harmonization in the Atlantic provinces. I think there is some evidence that consumer prices actually fell.
I've seen 12% in one study. I think that was over a year or two years following sales tax harmonization. I could find that study and forward it to the clerk of the committee for circulation, but our experience in the Atlantic provinces is that it has built a much more competitive tax regime in those provinces for companies that are operating out of these provinces and adding value to the economy.