OTTAWA, ON - December 9, 2009 - Bruce Hyer, MP for Thunder Bay–Superior North, blasted both the federal government’s Harmonized Sales Tax Bill today, and the way it was being rushed through the House of Commons in only 2 days. Under normal Standing Rules, a Bill takes at least a month to pass.

“I am appalled that Mr. Ignatieff has joined with the Harper government in supporting an extraordinary Motion of Closure to cut debate on the HST short, and ram it down our throats in only 48 hours. There will be very little debate and no public consultation.” said Hyer. “Suspending democracy in this way to ram legislation though in mere hours might be expected in war-time or in the case of a national emergency. But instead, this extraordinary measure is being used to impose a tax on Ontarians and British Columbians.”

In the House, Hyer said “This will impact their lives in so many ways. This is why it’s so important that we have public consultations.” New Democrat House Leader Libby Davies (Vancouver-East) introduced an amendment that would see the House Standing Finance Committee hold consultations on the HST, but it was defeated. Hyer called for more time for the Committee to study C-62, the HST Bill “I myself find the fact that the Finance Committee currently only has 4 hours to study the Bill, and until 3am in the morning, to be ridiculous. Is the Committee actually supposed to do their due diligence under these conditions?”

A Tuesday evening vote on C-62 passed XXX to XX with the support of the Liberals and Bloc Quebecois. A final vote is expected as soon as Wednesday night.

Hyer, the New Democrat Small Business Advocate, proposed that the federal government cut small business taxes instead of shifting the tax burden onto Ontarians. “It’s supposed to increase our competitiveness and productivity. But to do that, it shifts the tax burden from business to families. That’s the wrong way to balance the books. And the middle of the deepest recession in decades is the wrong time to do it.” he said, adding that it was unpopular with many of those it is purported to help “The 105,000-strong Canadian Federation of Independent Businesses found that fully 75% of small businesses feared the HST would be a big negative.”

Hyer proposed an alternative to the tax hike: “Here’s an idea for the Minister of Finance: instead of raising taxes on ordinary people, why don’t you cut small business taxes instead? That’s a much better way to increase our competitiveness and productivity. Plus, it has the added bonus of increasing innovation in our economy, something the HST won’t do.”

HST Attacks our Northern Way of Life

Speech in the House of Commons
December 7, 2009
Bruce Hyer, MP

Madame Speaker,

I’m speaking today against the Harmonized Sales Tax, and the way it’s being rammed down our throats.
Northern Ontarians will be punished more than other Ontarians under the yoke of this tax because we already pay more for gas, home heating, and transportation than people from the South. This new tax will only widen the cost of living gap in the North.

It’s supposed to increase our competitiveness and productivity. But to do that, it shifts the tax burden from business to families. That’s the wrong way to balance the books. And the middle of the deepest recession in decades is the wrong time to do it.

The tax is inherently regressive – it hits those who have no choice but to spend large parts of their income, and it favours those with income to save. Those with the lowest income have no choice but to pay it and sacrifice elsewhere. The HST is hitting those who can least afford it harder than anyone else.

An average family of 4 will have to pay at least $1,500 more per year. The number of items that they will see tax hikes on is astounding. It includes:
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Gasoline
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Your Internet bill
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Your mobile phone bills
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Hydro and home heating
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Mutual fund and investment fees
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Snow removal
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Registration fees for sports teams and recreational activities for kids – more than wiping out any sports tax credit from this government on those fees.
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It also taxes ice rink rentals
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Taxis fees
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Airfare and train and bus tickets
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New homes
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Dry cleaning
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Carpet cleaning
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Hair cuts
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Home renovations labour costs
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Commercial property rent
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Campgrounds
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Vitamins
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Gym fees and green fees
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Accounting fees and legal fees
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Landscaping
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Postage
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Veterinary fees
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Motor vehicle services like towing, oil changes and car washes
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Magazines

…even our funerals will cost 8% more.

So why on Earth are we even considering this bad idea?

This government says it supposed to help business, and maybe it helps some of their big businesses friends ‐ that’s true.
But many small businesses have written to me saying they’re opposed, no matter what their corporate elites in the Ontario Chamber of Commerce says.

I would like to quote a members survey from the 105,000‐strong Canadian Federation of Independent Businesses (CFIB): fully 75% of small businesses feared the HST would be a big negative.

Their customers, facing such a high tax on local products and services, may be driven to the underground economy, to online foreign suppliers, or to simply not make a purchase.

I want to quote the CFIB’s Ontario Director, Satinder Chera. He said: “Governments have clearly dropped the ball in their handling of this tax reform initiative,”

He went on to say that “the decision to finalize the terms and conditions of the HST, without public consultation, has generated mixed reviews and serious concerns within Ontario’s small business community.”

Votes have long enough memories to remember the GST.

The Auditor General found that when the GST was introduced, many people took their activities underground to avoid paying the tax. With the way the HST is structured there will be lots more attempts at tax avoidance.

Does the government really think that it’s good fiscal policy to bribe the Ontario and BC governments ‐ with over $6 billion dollars of taxpayer’s own money! ‐ to raise their taxes?

This, at a time when it’s running an astronomical debt.

Here’s an idea for the Minister of Finance: instead of raising taxes on ordinary people, why don’t you cut small business taxes instead?

That’s a much better way to increase our competitiveness and productivity. Plus it has the added bonus of increasing innovation in our economy, something the HST won’t do.

There is also the question of how this tax is being rammed down our throats in the most undemocratic way imaginable.
Suspending democracy in this way to ram legislation though in mere hours might be expected in war‐time or in the case of a national emergency. But this extraordinary measure is being used to impose a tax on Ontarians and British Columbians, without consultation.

I would ask the other Members of this House, especially those of the opposition parties whose job it is to hold the government to account, to support our amendment to this HST Bill, C‐62, that would give allow the Finance Committee to hold public hearings on the HST.

Really, the minimum we can do is hear from ordinary Ontarians and British Columbians about the HST. This will impact their lives in so many ways. This is why it’s so important that we have public consultations.

I myself find the fact that the Committee only has 4 hours to study the Bill, and until 3am in the morning, to be ridiculous. Is the Committee actually supposed to do their due diligence under these conditions?

The Liberals should be joining us to demand transparency and accountability from this government, instead of giving them a blank cheque. But instead, this Conservative government, supported by those same Liberals, has pushed Motion No. 8 to limit democracy.
People across my riding and across Northern Ontario have written me on the HST, including many First Nations. Why won’t we be consulting with them? Aren’t their treaty rights on taxation to be considered?

In fact residents of my riding of Thunder Bay‐Superior North, whether members of First Nations or not, would like to be consulted on the HST before it’s imposed on them.

The Liberals and Conservatives, supported by the Bloc in their “HST Coalition,” apparently don’t want to hear from them. Or from other Ontarians or British Columbians.

Residents of Northern Ontario will be astounded at the actions of the Conservative MP for Kenora and the Liberal MP for Nipissing‐Timiskaming, who have both voted to impose the HST on their own constituents. They must know that we were sent here to Ottawa to represent our constituents, and I know their constituents overwhelmingly reject this tax grab. They aren’t standing up for their constituents.

Instead, they are voting to ram the HST though with no consultation, no chance for Committee study, and a severely constrained debate. Apparently, they’re fine suspending democracy to do it. They’re fine with not even being able to see the bill we’ll be voting on until the last minute.

I guess I shouldn’t really be surprised by this. This is really just a more of the same regressive policies of Conservative and Liberal governments. It’s another tax in grand old tradition of the GST, that other Conservative tax that Liberals promised to scrap then didn’t when they got in.

There isn’t much light between Liberals and Conservatives here. They boost returns for corporate elites on the lame excuse that they will use those returns to benefit the rest of us.

Come on. Do they seriously expect us to believe that the oil companies will pass savings on to us at the gas pumps?
The Conservatives also claim this is a provincial decision. Another yarn Canadians don’t believe. If this is purely a provincial decision, why is the Finance Minister on record selling this tax the provinces? Why is his signature on agreements with Ontario and BC? Why are we voting on it in just a few hours?

Let me quote a recent Globe and Mail editorial:
“Conservatives wish to have it both ways. For years, [the federal] Finance Minister has lobbied the provinces to harmonize their sales taxes with the federal goods and services tax. Now that two provinces have complied, some Conservatives are shrinking from the ensuing controversy. Don't blame us, they're saying; it was all the provinces' idea.”

Madame Speaker, I am proud that my party was the only party to have consistently fought the GST. That was a Conservative tax that became a Liberal legacy.

Well, the HST was a Liberal idea, and now it’s a Conservative plan.

My party has again been the only one that consistently opposes it too.

Mr. Speaker, I am proud to stand with my party once again to fight the HST in Ontario and BC too.

Bruce Hyer, MP