D7

Marie-Claude Blais
On the issues

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Speak Up

As I was preparing to write my column this week, I stumbled across an article written by D'Arcy Jenish of Maclean's Magazine.

The article was dated May 6, 1996 and Jenish wrote the following:

"Frank McKenna had a big smile on his face, and a new spin on a familiar sales pitch. In a national newspaper advertisement that appeared late last week, the New Brunswick premier told readers across the country that 'the best place in Canada to do business keeps getting better and better.' Why? Because New Brunswick, along with Nova Scotia and Newfoundland, had agreed to harmonize its Provincial Sales Tax with the federal Goods and Services tax. While many Canadians may still believe that the Liberals should have killed the GST, business heavily favours harmonization -- the creation of a single, uniform sales tax across the country -- because it is easier and cheaper to administer. But some observers contended that if McKenna succeeded in luring business to New Brunswick with his latest sales pitch, he may do more than business groups to bring holdouts like Ontario and the western provinces aboard the harmonization bandwagon.

"The pressure on them will increase when Frank McKenna comes to town and says, 'We can build your plant for three-per-cent less than it costs to build in Ontario', said David Perry, senior research associate of the Canadian Tax Foundation. 'These things are important to investors'."

So after reading this week that Shawn Graham will raise the HST by two per cent, I was taken aback.

Premier Graham, as we know, has been on a quest, or an illusion of a quest, to reform our tax system, but contrary to the statement of McKenna, it seem that for Shawn Graham, two per cent more is best.

Mr. Graham's approach to tax reform is to tax more, not less.

It is my understanding that in a times of economic challenges, the economy needs to be stimulated by reducing taxes instead of increasing taxes.

Tuesday, after his meeting with the prime minister, Graham said that "The prime minister definitely understands the importance of tax reforms that stimulate the economy."

You will surely agree with me that this is an oxymoron coming from Premier Graham since Mr. Harper lowered the federal portion of the HST to give back money that hard-working Canadians had earned.

New Brunswick Progressive Conservative leader David Alward was right when he said that Graham is out of touch with New Brunswickers if he's considering hiking the HST.

He echoed some of my concerns: "We know what's been going on with energy costs, power rates, increases to food, increases to rent," he said. "All of those types of issues affect people that can least afford it. Clearly, this government is disconnected from New Brunswickers."

Well some of you may say two per cent more is not the end of the world, but with winter just around the corner, two per cent more on my heating bill is certainly not welcome. Also, what will be the impact on the purchase of new homes and new cars? We all know that a slow down of housing construction in this region could certainly have an impact on municipalities and the province as a whole.

So two per cent may not be much, but with all the economic uncertainty and an extra $3,000 for first time homebuyers (on a $150,000 house), it will make the difference to buy or not to buy.

What about the auto industry? Aren't the Big Three (Chrysler, Ford and GM) seeking out the help of our tax dollars to save thousands of jobs across Canada?

How is Shawn Graham helping them by hiking the GST by two per cent? On a $30,000 car that means $600 extra.

Also, we all know that our region has become the weekend shopping Mecca from people all over the Atlantic Provinces. Won't the new tax impact their visit to the Champlain Mall? Will this new tax impact revenue for our merchants?

I surely think so. By increasing the tax in our province, people will surely be motivated to stay away from New Brunswick and buy locally.

Also what about gas? Are you ready to pay more at the pump?

Mr. Graham, maybe you should be eager to ask New Brunswickers their position on paying more for gas, heat, food, clothes and not be so eager to ask the prime minister not to stand in your way of hiking the HST.

Also, as for the other tax on your discussion paper, will you consult with New Brunswickers or do you think it is better to ask for the advice of out of province experts like Stéphane Dion?

There was a time when our provincial premier believed the following: "Big government, big spending, big taxes do not create a stronger economy. What we need in New Brunswick is a smaller, more focused government on clear priorities. We need lower personal income taxes. We need to ensure that people can keep more of their money and invest more of it."

That was Bernard Lord in his closing debate from the Speech of the Throne on Nov. 23, 2000.

n Marie-Claude Blais, of Moncton, is a lawyer with a general practice in the city. She is also the Moncton North riding president for the N.B. Progressive Conservative Party. She shares the On The Issues column with Dave Barnett in this space on alternating Saturdays.