The third key issue we would like to highlight is GST-PST harmonization. The GST is the federal policy that has had the single greatest negative impact on the food service industry in the past 20 years. In the year the tax was imposed, real food service sales dropped by 10.6%, and same-store sales declined by 22.7%. An Ernst & Young report attributed three-quarters of the sales decline to the impact of the GST. By way of contrast, GDP the same year fell by 2%. Almost 57,000 food service employees lost their jobs; 43,000 of these job losses were attributed to the GST.
So what are the problems with the GST? First of all, it isn't neutral. The same products are taxed differently, depending on where they're purchased. With all due respect to Diane, your industry is given a tremendous competitive advantage over ours. We compete directly with retail.