It is not totally happy, but I agree that as a result of its pressure some things have been done. That still does not take away from the fact that the tax is hitting a broad base of goods in that region. It will impact directly on the pocketbooks of the consumer.
The Halifax Chamber of Commerce had meetings with the committee. It made predictions. One of its predictions was that the tax would push up new house prices by 5.5 per cent as well as force municipalities to raise property taxes. If the chamber is saying that in Halifax obviously that view will be shared by other regions of Atlantic Canada. It will impact directly on housing costs and lead to increased taxes which will be imposed on the consumer.
As this effort continues to impact on the consumer, where is that going to put him? Is it going to create more jobs if housing goes down? Is it going to encourage those who have finances to go and spend? No, it is not. He will have less money to spend in the first place because his taxes are going up and house prices will definitely impact in that same region.
The Canadian Real Estate Association says that harmonization will increase the cost of a new house by $4,000 in Nova Scotia and in Newfoundland to the tune of $3,374, and in New Brunswick. As any family would desire in terms of its own comfort to have a house, the opportunities will be slim because $4,000 is a lot. It will impact on the down payment. Regardless of how low interest rates are the cost of this is impacting right at the consumer level. It is just as I mentioned earlier. When you pay your utilities you will see that extra hit right there, a broad based tax that did not exist before.
The GST harmonization is responsible for the closure of five Greenberg stores and the loss of 79 jobs in approximately five different locations. There are closures. This will not be the only hit in that region but it is one. Woolworth Canada also estimates that because of the tax inclusive pricing it might consider closing 126 stores in the Atlantic region, which means a loss of approximately 300 jobs.
Another smaller but just as significant retail business, Carleton Cards, predicts that it will close 19 of its 37 stores in the region, throwing approximately 116 people out of work.
It is government's business not to create jobs in the sense that they have to be government jobs. It should certainly create jobs by creating an atmosphere so business in turn can create jobs. The small businessman is the job creator and the engine in society that should be creating the jobs. I do not think this is the mandate of the government. The harmonization aspect of this tax is yielding other concerns. It will certainly impact directly on the whole job market.
Management of Carleton Cards also indicates that there is a 50:50 chance of further store closures and a loss of 71 jobs in eight different cities across Atlantic Canada.
I have a question for the Liberal government. Why have these concerns not been addressed directly? Why have the fears of the
business community not been put at ease by the government saying this is not happening and the information is to the opposite effect?
The bottom line is that consumers will pay more for funeral services. They will pay more for children's clothing. They will pay more for books, auto repairs, electricity, gasoline, home heating fuel, haircuts and myriad other things.
In closing, this tax will certainly impact directly on the consumer. We are now looking at unemployment rates that are unacceptable. They will be a lot higher.