Mr. Speaker, there is a number of questions there which I thank the member for. I will answer them in reverse.
The first question is with regard to the hidden tax. The member may have missed the last half of my speech in which I explained tax inclusive pricing. I said that the invoice or the cash register slip would show the breakdown that she has asked for. That question has been dealt with. The information is there.
I personally oppose hidden taxation as the FST or the manufacturers' sales tax was. Now we have a perfectly visible tax. The member would agree that consumers make their purchase decisions based on the price they see on the shelf. It is important that consumers do not get that shock at the cash register. But I agree with the member that it is also important that the amount of tax to each level of government is currently shown on the documents, and that is what the bill proposes.
Regarding the second question, it depends on the mechanics. People in Newfoundland are presently paying a 19 per cent combined federal and provincial sales tax. That will be reduced to 15 per cent. That is a 4 per cent reduction, almost a 20 per cent reduction in the amount of taxes they will have to pay on each purchase.
On top of that, if the member had listened to the first part of my speech when I talked about the provincial input tax credit, which is now 30 per cent of all the provincial taxes collected-actually taxes on taxes-she would know that businesses are going to get a 30 per cent reduction in the provincial sales tax costs formerly included in their products. This means they should be able to pass on lower pricing.
The bottom line is if businesses are responsible and pass on the sales tax savings, the input tax credit savings on the provincial component to the consumers, not only will Newfoundlanders go down from 19 per cent to 15 per cent but that 15 per cent will also be applied against a lower base.
Concerning the final question of why there is HST on a bill, the legislation is effective April 1, as the member well knows. Pursuant to the legislation that means any services that cross over that period of April 1 will have to be charged the HST. The billings have gone out at the time because they are usually billed on an annual basis and it is a prorated amount from April 1. Should the legislation not go forward, that would not be payable or it would be refundable.