Mr. Speaker, it gives me somewhat of a pleasure to speak on this legislation.
All Canadians realize that a promise was made to them prior to the 1993 election. It was very clear from candidates going door to door, from candidates meetings and also from the Prime Minister's statements to the public via TV and radio that the promise to the electorate was that the Liberal government was going to scrap the GST.
I do not and I am sure most Canadians do not recall the word harmonization being used. It brings distress to most Canadians that we are now looking at a government which has decided it will harmonize the GST with the provincial sales tax. The government has started in the maritime provinces. It bribed those provinces. It did not follow the initiative of the provinces asking for it. It just bribed those provinces with $1 billion of borrowed dollars to the Canadian taxpayer.
It should also be noted that three provinces have said they will not even contemplate this issue. They will not contemplate entering any negotiations or proposals with the federal government. The three provinces that have said they will not contemplate it are the three have provinces, those that seem always to be paying up front for federal government programs.
The Ontario Minister of Finance has even stated that a blended sales tax using the GST base would cost Ontarians over $3 billion in extra taxes.
This government has managed to reduce its deficit not by substantially cutting government spending, but by raising fees and taxes to the Canadian people. This is one more example where the Liberal government thinks that if any Canadian has any money in his or her pocket, it is fair grab.
The finance minister also plans to force federally regulated industries, including airlines and banks, to bury the GST in their prices. Canadians need to know just how much money their federal government is taking out of their pockets above and beyond their income tax contributions. I do not think Canadians appreciate the underhanded methods this government has used to get more money out of their pockets.
One of the most frightening aspects of this harmonization plan is the cost in jobs. Three major retailers in Atlantic Canada have stated that the net annual retail deficit will total $27 million once harmonization is implemented. The Retail Council of Canada has said that by forcing stores to bury the new tax in prices, the harmonized tax regime will cost retailers at least $100 million a year.
The tax included pricing hits retailers in four areas. One is the duplication of the information systems and the rewriting of software. Another is in the re-pricing of pre-priced goods: books, greeting cards, magazines, et cetera. The third one is in the duplication of advertising costs in flyers and catalogues; one set for the Atlantic provinces and another set for those areas where there is no harmonization. The fourth is in the warehousing and distribution costs; sorting out which ones have the tax included for the maritimes and which ones do not.
The Halifax Chamber of Commerce predicts that the harmonized sales tax will push up new housing prices by 5.5 per cent, as well as force municipalities to raise their property taxes. The Canadian Real Estate Association says that the harmonization of the GST and PST will increase the cost of a new house by $4,000 in Nova Scotia and Newfoundland, and by $3,374 in New Brunswick.
What is happening here is that the taxpayer is having to pick up the extra tax burden.
GST harmonization is responsible for the closure of five Greenberg stores and the loss of 79 jobs. Woolworth Canada states that due to the tax inclusive pricing it is considering closing a quarter of the 126 stores in the Atlantic region meaning a loss of over 300 jobs. Carleton Cards predicts that it will close 19 of its 39 stores in the region, throwing 116 people out of work.
I find it an outrage that this government can talk about job creation and about using the infrastructure to create part time, temporary jobs yet it stands by and watches permanent, full time jobs disappearing, particularly in a region like Atlantic Canada which, Lord knows, has few enough jobs for its people. How can this government deliberately be putting together a proposal and putting legislation in place that is a detriment to jobs for the Atlantic people?
Consumers, the ones who will have jobs and might have some money in their pockets, will be paying more for funeral services, children's clothing and books. What happened to the promise of this government to remove the GST from books? Auto repairs, electricity, gasoline, home heating fuel and haircuts. Not only are we taking away their jobs, we are raising the cost of living. They are going to be hard pressed to provide their children with proper clothing and to heat their homes, and that is anticipating they can even afford to buy homes with the rising costs this implementation is going to create.
One of the more irresponsible results of this is that the Liberal government defeated a Reform motion to hold hearings in Atlantic Canada on GST harmonization which would have allowed the people of Atlantic Canada to participate in deciding on whether or not GST harmonization was something they wanted and they felt they could support. Refusing to allow the people in Atlantic Canada to exercise their right to participate in the discussion, in essence is the same as having taxation without consultation or without representation. That should not be allowed in this country.
If this government is under any misconception that the people of Canada support it in retaining the GST instead of scrapping it, removing it or abolishing it and if government members feel that Canadians support them in their efforts to hide the GST through harmonization, let me read a couple of comments made by constituents of mine on their householder returns.
One response says: "Get rid of all the governors general. It will save billions of dollars no doubt as we do not need the Queen". He goes on to say: "When will they abolish the GST? Prime Minister Chrétien promised. You can see it on the old tapes when he made this promise-