In preparation for the Harmonized Sales Tax referendum in June, the B.C. Liberals are doing something most would agree they should have done initially: inform the public and seek input.
Twelve telephone town hall meetings are currently being held across B.C., designed to engage the public and have open discussions about the HST before a June 24 referendum on the fate of the tax.
The meetings are hosted by Minister of Finance Kevin Falcon and Minister of Transportation and Infrastructure Blair Lekstrom.
Nearly 33,000 British Columbians participated in the first two meetings in the Surrey and Peace River regions on April 27. The meetings will continue for the next three weeks, though some have been rescheduled because of the Vancouver Canucks playoffs games.
The introduction of the HST sparked a public backlash across the province when it was implemented last June with little public consultation. What added fuel to the fire was that the Liberals had said during the 2009 election campaign that they were not planning to introduce the tax.
The issue was forced to go to a referendum after former Premier Bill Vander Zalm spearheaded an effort to gather over 700,000 signatures—more than 10 percent of B.C. voters—against the HST.
“One thing that was difficult up to now was that it wasn’t a balanced menu of information out there,” says Kevin Milligan, a professor of economics at the University of British Columbia.
Milligan, who favours the HST, says it’s important for voters to thoroughly understand both sides of the debate before voting on the tax.
He says “the economic case is extremely strong” that a value added tax such as the HST is more efficient than the Provincial Sales Tax, which is most likely what B.C. would return to if the majority vote against the HST in the referendum.
“If the referendum were to fail, it puts us in a very difficult circumstance in that we will be implementing a tax that is known around the world as a poor way to raise revenue.”
If the HST remains, B.C. “will end up with a better, cleaner, more efficient, more transparent way to tax people,” he adds.
“I have a lot of faith in voters and citizens taking information they have and doing a good job of making a decision.”
Falcon said in a press release that he is pleased with the response so far.
“Given the thousands of people who participated in these calls, it’s clear that British Columbians want to be part of an informed discussion on the HST. What impressed me most were the questions people had about the HST and the various suggestions brought forward on how we might improve it.”
All B.C. residents who have a publicly listed telephone number will receive a call on the day a meeting is scheduled in their area. A recorded message asks if they are interested in attending the tele-town hall session and instructions to participate are provided.
Ballots for the HST referendum, which is to be completed by mail, will be sent out to registered voters on June 13, and must be returned by July 22. Results are expected by August 2011.
Lekstrom said he hopes B.C. residents will continue to participate and voice their concerns. “We hope to hear from thousands more and listen to your ideas about how to improve the HST.”
The upcoming meetings are listed by region at www.HSTinBC.ca.
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