Mr. Speaker, I understand I have about 10 minutes.
I would like to make sure that everybody understands that the member from Gander-Grand Falls twice earlier today said he was not speaking. About 15 minutes ago he also told me he was not going to speak to this issue, but he did. I guess that goes to show how much we can trust what he says. He does not tell a lot of the truth and he certainly missed out on a lot of it in his speech.
I would also like to point out that on some of the points that were brought forth earlier today by me, there were some questions as to how come I would be making such statements. I note that some of these comments that were made earlier are based on the Retail Council of Canada, a study from Ernst & Young which I understand was put to work by this government. It estimated that a mid-size national chain with 50 stores in the Atlantic provinces would pay up to $3 million in one time cost starts and $1 million a year to comply with this tax that we are talking about.
This information also comes from the Halifax Chamber of Commerce, the Canadian Real Estate Association, the Greenberg Stores management and company. All of these that are objecting strongly to this particular legislation I think are very reputable.
During the 1993 campaign in the riding of Wild Rose, the words scrap, kill, get rid of the GST were stated loud and clear by the Liberals. I think that was true all across the land. There might have been a couple of ridings that were missed but it was pretty broad.
Of course, since the election we have all been asked to memorize page 22 from the dead book which is supposed to represent what the Liberals meant and not what they said. We have heard all kinds of comments regarding their campaign, for example, "sometimes I shoot from the lip" and "gee, we made a mistake". However, that does not overlook how the campaign went.
Let us look at page 22. One paragraph states:
The GST has lengthened and deepened the recession. It is costly for small business to administer and very expensive for the government to collect. And the GST has fallen far short of its promised revenue potential-
I think they have corrected that revenue potential. The amount of extra taxes they are going to grab after this change will make up for that loss.
-partly because it has stimulated the underground cash economy-.
I really wonder if any Liberal member on that side of the House could stand up today and say Bill C-70 is really going to address the underground cash economy. It will not touch it. In fact, it will probably get far worse.
The red book goes on to state:
A Liberal government will replace the GST with a system that generates equivalent revenues-
It will not be equivalent. It will be quite a bit more.
-is fairer to consumers-
Consumers are not agreeing with that. I understand there is a petition with 16,000 names attached to it from consumers in the Atlantic provinces who are opposed to this whole idea.
-minimizes disruption to small business, and promotes federal-provincial fiscal co-operation and harmonization.
Let us take a look at one statement regarding small business in this Liberal dead book: "It is costly for small business to administer and very expensive to collect". Will this harmonization answer this statement? What do businesses say? First, it says this new idea will be a nightmare to administer. Three major retailers in Atlantic Canada have stated that their net annual retail deficit will total $27 million once harmonization is implemented.
One private retailer in the Atlantic region was contemplating opening two new stores in 1997 but has decided against it as a result of the increased costs associated with this harmonization.
The Halifax Chamber of Commerce predicts that the harmonization will push up new house prices by 5.5 per cent. As well, it is going to force municipalities to raise the property taxes.
The GST is responsible for the closure of five Greenberg stores and the loss of many jobs in five major cities in the Atlantic region. They say that if this harmonization comes in they are contemplating that there is a 50-50 chance that it is going to close a lot more stores because of that. This is what the businesses are saying, not what Reform members are saying.
When businesses are saying this and we have 16,000 names on a petition, I wonder why there is not outrage by these Liberal backbenchers from the Atlantic provinces, or does that mean they are approving the loss of jobs? I find that strange because there is a bit of an integrity problem here. I remember when the Liberals ran on the promise of jobs, jobs, jobs. Harmonizing the GST in New Brunswick, Newfoundland and Labrador and Nova Scotia will kill jobs, jobs, jobs. That is what a lot of businesses are claiming. In fact, the stores that are closing, those that are contemplating closing and the ones that would not open up are killing jobs.
If the Liberals want to maintain their integrity which east coast MP is going to resign and run in a byelection? Which east coast MP will defend their failure to honour their promise by taking it back to the people at a cost of $500,000? Which MP has the integrity? Our guess is none.
The Fraser Institute states that tax burdens on the Canadian economy remain the single most significant barrier to economic acceleration and job growth, the single most significant barrier. The harmonization of the GST will increase the tax burden on the people of three Atlantic provinces.
In the first nine months of 1996 Statistics Canada stated that retail sales increased only 1.4 per cent. Every economist states that in order to create jobs domestic retail sales must increase, yet this legislation will reduce retail sales in the Atlantic provinces which sign the agreement.
Statistics Canada shows that retail sales in Newfoundland dropped 3.8 per cent. In Nova Scotia they dropped 3.2 per cent and in New Brunswick they dropped 1.4 per cent, yet the Liberal government wants to further harm retail sales at a time when retail sales, according to economists, could create jobs.
The one Atlantic province which refused to harmonize, Prince Edward Island, is showing an increase in retail sales and a 7.5 per cent drop in employment insurance payments. Newfoundland had a 13.2 per cent increase in employment insurance payments and will be hard hit by the increased tax grab. Is the economic growth in P.E.I. not telling the Liberals anything about harmonization? Did the recent provincial election not tell them anything? Their Liberal counterparts, most of whom were anxious to come on board on harmonization, went bye-bye. When the election was over, those who opposed harmonization were victorious.
A Fraser Institute study shows that Canada has the worst tax record of any G-7 country. Taxes are a real problem for this country and the Liberals are a major problem behind the taxes.
How many families must starve, must feel the anguish of break-up and disintegration? The Liberals know that economic destruction of the family unit causes the greatest injury to families, yet they carry on with a policy which will harm families. Even families that through good fortune, not Liberal logic, can keep jobs will suffer under this legislation.
The price of children's clothing will increase during the coldest months of the year. The price of electricity and home heating fuel will increase. The cost of transportation for workers to get to work will increase because the price of gas will increase. Can the Liberals not give the taxpayers a break?
Property owners in the Atlantic provinces signing on to the harmonization plan have all stated that renters will have to pay
higher rents. Does the Liberal government enjoy putting mothers, fathers and children into the snow because of a broken promise?
Increased costs mean that private sector investment in the Atlantic provinces signing on to harmonization will be curtailed. Why would someone invest when they know that their direct costs will increase, when consumers will restrict purchases and when there will be less in retail sales?
Ernst & Young, the government's accounting firm, stated that national chain stores of 50 branches will pay $3 million in set-up costs and $1.1 million per year more than stores in provinces without harmonization. If you were going to set up a business, where would you go?
I wish all the people of the Atlantic provinces a Merry Christmas this year. Because of harmonization, next year they may have no job or no money to enjoy the season.
I would like to put out a Pinocchio alert to all Canadians: be careful when a Liberal opens his mouth.