Budget highlights and the state of the economy of B.C. were the main topics at a talk given the Minister of Finance, Carole James, on Friday morning to a chamber of commerce audience in Richmond – but the harmonized sales tax (HST) reared its head again with the Richmond Chamber of Commerce CEO asking whether it might ever come back.
Matt Pitcairn, chamber president and CEO, asked James whether the provincial government would consider bringing in a “value-added tax” – something supported by the chamber. The Liberal government under Gordon Campbell brought in the Harmonized Sales Tax (HST) – a value-added tax – but, after a huge public outcry against it, it was put to a referendum, defeated and then withdrawn.
James called the HST an example of a “good policy very badly handled.”
“I think it will be another generation of politicians behind me who will still have to come in before people have forgotten the process,” James said.
Pitcairn told the Richmond News that the defeat of the HST in 2011 referendum was a “huge hit” to business in B.C., having an impact on competitiveness and tax administration.
“The Finance Minister hit the nail on the head this morning when she said that the HST was good policy, yet horribly delivered,” Pitcairn explained. “The BC Chamber network has been calling on the provincial government to re-look at a value-added tax ever since the defeat of the HST.”
The BC Chamber of Commerce’s position is that a value-added tax like the HST would make the province more competitive in global markets.
James was giving a post-budget speech at the Richmond Country Club on Steveston Highway, outlining how the economy of B.C. is doing and some of the government’s key spending areas.
James spoke about the plans to build an acute care tower at Richmond Hospital, which was announced two years ago. The province is currently working on the business case for the tower, and James said the announcement of details would be coming “shortly.”
However, when pressed for a more exact timelines, she said she didn’t want to take away from the minister of health’s announcement.
James’ highlights of the budget included the continued rollout of $10/day child care, attempts to quell the housing crisis, healthcare as well as poverty reduction.
