Mr. Speaker, I will be splitting my time with the member for Timmins—James Bay.
There are a couple of issues I want to raise in the course of this debate. First of all, we are debating right now a motion on time allocation. Earlier today we saw a shameful vote in this House on closure, which has actually shut off our ability to have a fulsome discussion on this particular piece of legislation, Bill C-62. Once the procedural motion is voted on this evening, we will be forced into a very limited debate on Bill C-62.
Even though this only applies in Ontario and British Columbia at this time, there are British Columbians and Ontarians who live and travel across this country, and what we are consistently hearing from them is that they do not like this HST. In fact, one of my constituents called it the “hated sales tax”.
What we do know is that in the normal course of events, we would have an opportunity at committee to call witnesses from across this country and be able to give people an opportunity to have their say on what they see as both the benefits and problems of the sales tax. Of course, that discussion is now excluded. We are not going to be able to hear from Canadians because we only have four hours at committee, and that is it.
What we have also heard in this House, of course, is that this is a provincial matter. If this is solely a provincial matter, why are we debating it in the House, as the member for Burnaby—Douglas rightly pointed out? Why are we going to be debating Bill C-62 tomorrow or the day after in this House?
The other matter of course has to do with first nations. Clearly the federal government has a responsibility in first nations jurisdictions, because of its fiduciary responsibility. There is an honour of the Crown responsibility that is acknowledged here.
The member for Algoma—Manitoulin—Kapuskasing has talked a number of times about the point of sales tax exemption in Ontario. In British Columbia, the Union of British Columbia Indian Chiefs wrote a letter to the minister on December 2, which states:
HST affects First Nations' ability to earn a moderate livelihood, and it adversely affects our Aboriginal economic rights.... Vague assurances and tax bulletins are insufficient to accommodate.
Your actions to date are not honourable and represent a failure to treat First Nations as equals in a Government-to-Government relationship. We demand a distinct process; public tax bulletins will be a failure to consult and accommodate.
I do not think I could have said it any better. First nations in British Columbia have clearly outlined the fact that they expect to be consulted when we are talking about taxation. There are other pieces of government legislation that give first nations the ability to tax or to be tax exempt, and we would expect the federal government to honour its fiduciary and honour of the Crown responsibilities in that context.
Now I want to talk about British Columbia. In British Columbia, as a number of members have noted, the Ipsos Reid poll for the Canwest News Service and Global National last week indicated that 82% of British Columbians oppose the harmonized sales tax, and 56% of B.C. respondents say they think the HST will hurt the provincial economy.
In case members think it is just New Democrats who are talking about this, I want to turn to a couple of the associations that represent businesses in British Columbia.
Butchart Gardens has put together a study on the impact of the HST on tourism, and I just want to quote a couple of their primary concerns. They clearly lay out in their study the benefits to British Columbia from tourism. They acknowledge that in Canada, tourism is the fourth largest economic driver. One would think that an economic driver of that significance would be consulted when a sales tax is put together. The Butchart Gardens study says that:
Implementing a large new tax on a significant portion of B.C.'s economy will impact consumer confidence and spending levels, and therefore hurts businesses at the end of the supply chain who are labour-based or do not have enough input tax credits to off-set the new tax burden.
This negative 'new tax' effect is greatly amplified due to current economic conditions....
....price elasticity calculations indicate that passing the tax on to our battered consumers will decrease business revenues and thereby reduce government tax revenues generated by impacted sectors....
Considering current economic conditions, what is the cost and scope of risk as measured against predicted HST benefit? Where is this data? Where is this study?
Again, this is what could have been brought up at committee. However, people like The Butchart Gardens, a large tourism attraction in Victoria, have been shut out of any avenue to have their voices heard on the impact on their and other tourism-related businesses.
The Canadian Restaurant and Foodservices Association, in an open letter, talks about a recent survey of members in British Columbia. It states that 91% of its members said that a harmonized sales tax will have a negative impact on their businesses; 90% of respondents said their customers will cut back on spending; and 71% said they will have to cut back on staff or staff hours. Those are the restaurants, another key economic driver in British Columbia.
Because we do not have an opportunity to hear from Canadians other than in this very short debate, I want to read some of the emails I have been getting. I have been getting tons of emails on the impact of this harmonized sales tax.
In a letter to the editor of the Nanaimo News Bulletin, Rosina Schmidt wrote:
The HST will have a negative impact on rental housing quality and affordability, especially in Nanaimo.
It will increase most rental housing industry costs, such as property management, repairs and maintenance contracts by seven per cent next year.
The overall costs to operate rental buildings will increase by up to three per cent as a result. That's about $300 per rental unit per year.
We know that many people in rental units are already being squeezed, as are the property owners.
I received an email from Gabriola Island that says:
Please on behalf of the restaurant industry and my own family restaurant... do what you can to prevent the HST from happening. Such an increase in tax will stop a hesitant clientele from coming out to eat in this economically difficult time, especially on a ferry dependent island.
From Nanaimo, Bridget said:
I find myself struggling to make ends meet as the cost of housing, food and transportation has skyrocketed in BC over the past ten years while my wage has stagnated. I have a degree and a “middle class” job and still spend 75% of my income on taxes, rent, utility bills, medical expenses and transportation. Half of my co-workers were laid off recently. I'm trying to save a bit of money to have some financial security in case my job disappears too. I'm worried the HST will push my shoestring budget into the red.
Sean writes that:
My family, that is my Wife and our yet unborn child... will suffer if this tax goes through. We both work, but as the minimum wage is so low...we're having trouble getting by.
The ever-widening margin between wealthy and poor is appalling.
Carol states:
I am a resident on Gabriola Island, a realtor, and a landlord....
Please voice your opposition to the HST legislation, and halt the implementation....
The HST will have a negative impact on rental housing quality and affordability.
Susan says:
....in Nanaimo, I am concerned that the HST will increase most rental housing industry costs such as repairs and maintenance by approximately 7% next year.
Again, we see that a $300 increase in costs per rental unit will have an impact on the affordability of rental units.
Bruce, from Victoria, states:
The introduction of the HST will hit the poor hardest and benefit only big business. It has been said that the savings to business will be passed on to the consumers. If you believe that, I have some property I'd like to sell you in the Florida Everglades.
Peter, from Duncan, comments:
Please know as a senior on a fixed income that I am vehemently opposed to the Harmonised sales tax. It is another erosion of my small income that makes life very difficult.
Harriet remarks that:
my income is less than $11,000.00 per year, not enough to pay taxes....
this province has the second lowest minimum wage in canada with one of the highest costs of living....
....the cost of food has greatly increased....
the number of people using our local foodbank has increased 30% in the past year....
healthcare will become even more unavailable because therapists will increase their fees...over the counter medications will cost more....
education will be farther from my grasp because all aspects of getting to classes...
both the tourism and real estate business are speaking against this tax because their are very aware of the negative impact of an additional 7% on their transactions....
...the ...government said it would not increase taxes. the general public is not so gullible as all these politicians believe, we know the hst is just another cash grab at the expense of those that can least afford it.
Deanna, from Ladysmith, writes:
I am against harmonization of the federal and provincial sales taxes. Please, vote against it.
Deanna, do not worry. I will.
Pat, from Nanaimo, says:
Having been retired for 15 years now, pensions are being eroded daily and many of the 'few' extras we now enjoy will be further out of reach with the implimentation of the HST. Further, we are now finding we can no longer afford to stay in the home we worked so hard to build for retirement....
....consider the plight of many in this province who just cannot afford yet another increase in tax load.
Doug, from British Columbia, says:
What is the logic of introducing a new tax in mid recession? How will it help economic recovery when it will discourage consumer spending?
I work in the restaurant industry which claims the tax will cause a loss of up to $750 Million in business and a loss of up to 10,000 jobs in B.C.
Robert, from Nanaimo, states:
I strongly oppose this tax on the basis that... it is being unfairly implemented in BC, and will place too great a burden on consumers struggling to cope with a recession.
From Karen, we have the following:
As a person on disability I cannot afford a tax hike of any amount. Also my adult children can't feed and clothe themselves as it is!
Another constituent wrote:
I feel bad about it... as I am a senior I can't afford all my prescriptions or my needs. I feel we need to get [the premier of British Columbia] out.... I know you will do your best.
Someone else wrote:
I was outraged and still am outraged. If a party can say anything to get elected then integrity, honesty and our democratic process have all been bypassed.
Of course, what the person was referring to there was the fact that in British Columbia, the provincial Liberals indicated in the provincial election that they would not put in a harmonized sales tax or HST, and as soon as the election was over, they announced a harmonized sales tax. Of course, we are hearing from many of our constituents who are not only enraged about what is happening in the federal House, but also about what is happening in the Victoria legislature as well.
Grace said:
I live in a leaky condo situation—have to pay double unit entitlement on top of that for all new construction done which is very unfair. This tax will certainly cut down my spending!!
Anybody from British Columbia knows full well that people with leaky condominiums have been fighting a long, hard fight to get some justice. Now there will be an additional 7% tax on any construction they need to do to repair their leaky condos. This is a group that is already reeling under the impact of the leaky condo situation.
Another writer says:
This tax hurts the lower income the most!
Another person writes:
Please do your best and make the HST disappear. It'll destroy us.
I have letter after letter, phone call after phone call, telling us this is the wrong tax at the wrong time. If this is such a great opportunity, why will the Conservatives not allow us to hold full committee hearings, so we can hear from the public and business owners and can understand the impact on both consumers and businesses? This tax shift is simply unfair.