Are they advocating that no used goods should be subject to the GST? Are they saying that services should not be subject to the GST? Do they want a level playing field or do they not? They cannot have it both ways.
The hon. member for Medicine Hat made great issue about compensation being paid to the three Atlantic provinces over a three-year period. He said it was a breach of equal treatment for provinces.
Let us take a look at it. Every province that wants to harmonize the GST at a lower rate and loses money will be entitled to compensation. That is what we call equality of opportunity for all provinces.
We must remember the combined sales tax rates in Newfoundland were about 20 per cent. In the other two provinces, Nova Scotia and New Brunswick, they were about 19 per cent. These are punitive rates. Why should these provinces have to pay outlandish rates of taxes just because they are the poorest provinces? We are pleased they were able to benefit consumers by getting their combined rates of tax down to about 15 per cent. I am proud of that.
If the provincial governments lose money because of it, I am not upset at all if some compensation is to be paid over a three-year period to help those provincial coffers adjust to that temporary loss of revenue.
Members will say it was not fair. Have we not in other circumstances helped other provinces?
The member talked about Alberta, which has the lowest rate of tax. There is no provincial sales tax in Alberta. Why is that?