HST report for consumers unlikely
Business study was sufficient, says finance minister
CBC News
Posted: Nov 20, 2012 7:43 AM AT
Last Updated: Nov 20, 2012 12:38 PM AT
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Islanders looking for more detailed information on how they'll be affected by the harmonized sales tax are out of luck.
The province released a report last week looking at how business and investment on P.E.I. will fare under the new 14 per cent HST, which will take effect April 1.
But no similar report is in the works for consumers.
The province paid between $10,000 and $15,000 for the report delivered by economist Jack Mintz.
It predicts businesses will invest hundreds of millions of dollars in their P.E.I. operations in the years after the HST comes into effect. But it doesn't have much to say about the impact of the HST on the Island consumers.
Finance Minister Wes Sheridan said the province considered hiring another economist to look at the effect on Island pocketbooks, but decided to go with just the business study, saying good news for the business community means everybody wins.
"The $380 million in labour income over seven years means new jobs, more money. This is a huge benefit to workers on P.E.I. and everyday Islanders," Sheridan said.
But Lori MacKay, who represents the Canadian Union of Public Employees on the P.E.I. Working Group for a Livable Income, would like to see a consumer study.
MacKay is worried about how the HST will affect P.E.I.'s poorest residents.
"We know that it's going to benefit business, which is a positive for our Island economy. But what is the impact on low-income islanders? And if there is a negative impact, is there safeguards that will be put in place to help?"
Sheridan has repeatedly assured Islanders that rebates will shield poor and middle-income earners from the effects of the HST.
But MacKay would like a second opinion on his numbers and she wants the province to commission a followup study to see if the HST is hurting Islanders once it has been brought in.
For mobile device users: Should the province commission a report on how consumers will be affected by the HST?
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