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Liberals would consider repealing GST cuts: Dion

Last Updated: Wednesday, October 31, 2007 | 1:55 PM ET

The federal Liberals would consider rescinding the Conservative government's GST cuts if they come into power in the next election, Liberal Leader Stéphane Dion said on Wednesday.

Dion told reporters he would open a debate on the idea during an election campaign.

When asked by reporters whether he would reverse the tax cuts, Dion responded: "We will consider that."

Dion made the comments a day after Finance Minister Jim Flaherty unveiled a mini-budget that outlined $60 billion in cuts to personal and corporate taxes as well as a one percentage point cut to the GST.

Dion said the money from the two per cent cut to the GST — which includes a one percentage point cut implemented in 2006 — could have been spent in other areas or put into different types of tax cuts.

"That [the proposed GST cut] means $6 billion, $7 billion every year, on an ill-advised choice," Dion said.

"We will not be alone. We know that a lot of people will say it was the wrong decision for Canada and when the next election will come we'll say to Canadians what we'll do."

Hours later, the Liberals abstained from voting on the mini-budget in the House of Commons, ensuring its passage.

The vote was considered a confidence motion that would have triggered an election had it been defeated. Instead, it passed 127 to 76 in the House of Commons. The Liberals remained in their seats while both the Bloc Québécois and NDP voted against it.

Dion said that while he opposes plans for the additional GST cut, he and the Liberals did not bring the government down over the mini-budget because they feel Canadians do not want another election.

Earlier, during question period, as Dion accused Prime Minister Stephen Harper of breaking a number of promises, Harper referred to Dion as the "king of abstention" — a reference to the Liberals' decision to abstain on the speech from the throne and now the mini-budget.

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