Muskeg Press

All right, British Columbia, let me get this straight: you voted against a tax cut? And you were led by an old guy with a funny voice, who used to be the premier of the province but left the office in scandal over 20 years ago?

I have to admit, B.C., I’m torn. As a firm supporter of the Harmonized Sales Tax (HST), I was frustrated to see it voted down in the recent referendum, especially as it was supposed to drop from 12 per cent to 10 per cent in a few years. But all this craziness over the past two years is the reason why I love this place – never a dull moment on the Left Coast.

Ah well, life goes on, and we’ve all got bigger problems than worrying about whether or not a tax will be or won’t be here. Ten or twenty years down the road, however, we’ll be feeling a financial crunch as more and more people depend on the government for their health care and pensions. So, on behalf of everyone under the age of 40 who’s going to have to find a way to pay for all that, let me just say: “thanks.” (I’m hoping sarcasm transmits properly over the Internet.)

It would be easy to blame Bill Vander Zalm or the NDP for exchanging short-term political gain for long-term citizen pain, but in the end, it’s not their fault. No, the blame for this devastating loss should be put squarely on the shoulders of the B.C. Liberals.

Remember the provincial election campaign of 2009? Really? I don’t. Well, actually, I guess there was one phrase that now defines that campaign: the HST was “not on the radar” of the B.C. Liberals, who went on to be elected the governing party. Then, before you could say “value-added tax,” the government said the HST would be in effect by next July, and the legislation was rammed through in the spring. Small businesses apparently entered financial Armageddon as that extra two per cent destroyed their bottom lines. All the while, one government minister or another praised the HST, saying it helped B.C. remain competitive – but never actually saying how it helped us remain competitive.

Last fall, the government was extremely humbled after an access-to-information request showed provincial bureaucrats were corresponding with their federal counterparts about implementing the HST. Before the 2009 election. Then Gordo called for a referendum, then quit, then Carol James was forced out, then Christy Clark rode back into the B.C. Liberal fold and called for an early mail-in referendum, and then, Friday, the results.

And all the while, the B.C. Liberals didn’t ever seem to want the tax, even though they argued for it in the beginning, and economist after economist kept arguing that the tax was a good thing for the province. An independent report released in May stayed neutral, but clearly showed all the benefits of moving to the HST. Whether or not the report was truly neutral is irrelevant. The Liberals should have used the findings from it and kept pounding its main messages to the electorate: creation of tens of thousands of jobs, financial stability in the future, easier method for businesses to remit their taxes. At the very least, someone could have said, “we really screwed up with the whole ‘radar’ reference, but we don’t know how to use metaphors. We’re politicians, after all, not English majors.”

But they didn’t do any of those things. They did, however, announce a two per cent cut to the HST – by 2013, the tax would be 10 per cent, not 12 per cent. They promised it, they enshrined it in legislation. A tax cut. How often does that happen? I kept waiting for the government to come swiftly out of the gates, sending its ministers to the far corners of the province, knocking on everyone’s doors, saying “tax cut! Tax cut! TAX CUT!” And I waited, and I waited, and I waited…

The excuse, apparently, is that they didn’t want to be married to the tax in case it was defeated in the referendum. The NDP could have used the Liberals’ unfettered support to hammer them in the next election campaign. What the Liberals apparently didn’t realize is that they’ve been married to the tax since the 2009 election.

Now, we’re out $1.6 billion, because the province will have to re-pay the transitional funding back to the federal government. The calls for the feds to let us keep the cash are ridiculous. Quite plainly, a deal was struck: the feds gave the province the money, and province promised to implement the HST. No HST, no money. If you ask me to do something and pay me for it, and I don’t do it – should I really be entitled to keep your money?

This government and future governments will now have to look at a way to deal with the financial strain that will be created without the HST. Should we raise income taxes? Should we go into deficit? Should we tinker with a sales tax?…wait, we’ve already done that.

~Written by Chris Armstrong

Like everywhere else in the country, conversations in Ottawa quickly turn to the weather. This summer, it’s been hot. Since Wednesday, August 10, when I arrived, the mercury has stayed around 30 degrees Celsius, made hotter by the humidity. Ottawans tell me it’s been like this since May: patches of brown grass everywhere in the city provide evidence of the drought-like conditions. A 10-minute cloudburst on August 18 has been the only respite from the heat, raindrops as big as golf balls pelting the pavement.

I grew up a 40-minute drive south of Ottawa. I lived in the city during university; in 2001, I left for Alberta, and returned briefly the next year before absconding back West. Aside from a few short visits since then, I haven’t returned.

Things change, of course, but Ottawa remains the quiet and slow place that I remember. The same government buildings, seemingly on every corner. The same red-brick houses in the residential areas. The same holdups in traffic coming into the city from the suburbs. The same ugliness of Merivale Road, the same beauty along the Rideau Canal. Most of the bars & restaurants have survived on Elgin Street and, aside from the road construction in the Glebe, Bank Street has stayed pretty much the same over the last decade.

Sure, new things have been built or are in the process of being built. The Congress Centre, attached to the Rideau Centre, has grown a dark glass goiter that hovers over Colonel By Drive. A giant complex for the Canadian Security Intelligence Service is apparently being constructed on the east side of town. A convention centre is now a metal skeleton near the airport, the parking lot taking up approximately a million acres of land.

And then there’s Lansdowne Park, on the southern fringes of downtown along the canal, the one-time home of the CFL team, whether they were called the Rough Riders or the Renegades. The Ottawa Senators played in the Civic Centre inside the building before they moved to the Palladium/Corel Centre/Scotiabank Place in the middle of nowhere (a.k.a. Kanata). Cracks were found in Lansdowne’s stands in 2007, and city politicians started the process of redeveloping the site. But wait. A group calling itself the “Friends of Lansdowne” has taken City Hall to court over the impending development, arguing the City approved the plans without seeking competitive bids or adhering to the city’s bylaws. According to its website, the municipality also failed “to meet the standard of good faith decision making required of municipal officials.”

Heady stuff indeed. However, the Friends of Lansdowne don’t seem to have very many friends outside their own clique. Word on the street is that most of the Friends are residents of the Glebe, a well-off neighbourhood near the stadium whose inhabitants are generally regarded to be giant snobs. The Friends appeared in Ontario Superior Court to fight the redevelopment plans, but they were soundly defeated, and the City has gleefully publicized how much taxpayer money has been wasted in legal fees due to the challenge. The Friends have promised to appeal the ruling, which undoubtedly created more Enemies, and they probably didn’t help their own cause when one of their own criticized city councillors in the Ottawa Citizen thus: “Maybe they skipped their classes when they went to university, if they went to university.” You guessed it: he’s a professor at Carleton University.

Ottawa may be a national capital, but its problems have always been this provincial. Before I left a decade ago, I remember editorial pages in the Citizen filled with questions of “whither Ottawa?” Where are we going? How should we build a better city? What should our identity be? It felt like I took a ride in Doc Brown’s DeLorean when, a few days ago, I glanced on the front page the third installment of a five-part series entitled “Building a Better Ottawa.” A few pages later, columnist Andrew Cohen, a writer I read frequently when I lived here, disappointed me when prophesied the end of the book – an original thought if we were living in the year 1497.

I’m surprised anyone can think these heavy thoughts in this stifling heat. A new radio station, Dawg FM, has been my greatest discovery on this trip. Playing mostly blues with a smattering of soul and country-rock, the station provides the ideal soundtrack while driving around town. I didn’t hear a bad song on the station until today, when it played a track by The Eagles. Oh well, nobody’s perfect.

As the bluesy riffs dripped out of the car speakers, I wondered if perhaps these provincial concerns, and these deep thoughts about identity, are the reason why Ottawa, slow and quiet Ottawa, is the nation’s capital. Aren’t all Canadians equipped with an inferiority complex? Entire forests have been slaughtered to create newspapers and books that deride our lack of national identity and suggest ways to build one up, when, really, we should just be living our lives, working at our jobs and let the formation of our identity take care of itself. Do the Irish wonder what makes them Irish? The Italians? Estonians?

Such reveries melt away as the hot day turns into the warm evening, couples languidly walking down the street, a light breeze shuffling the leaves on the maples, Bill Withers playing on the radio.

~Written by Chris Armstrong

According to a document filed with Canada’s Major Project Management Office (MPMO) on July 20, Canpotex still plans to build a potash terminal on Ridley Island, south of the coal terminal. While nothing is certain yet, the filed document, titled “Project Description Final” and prepared by Stantec Engineering, is the most positive indication in almost two years that shovels may one day go in the ground.

After representatives from the company visited Rupert in September 2009 and held a public presentation at the Lester Centre of the Arts, the community shared an optimism that had not existed since the early days of construction of the container port. Promising a decision by the end of 2009, Canpotex reps said they were deciding whether or not to build a potash terminal in Rupert or in North Vancouver.

The year came and went, and so did 2010, without a peep from Canpotex. Repeated requests for information by Muskeg News, and presumably by other media outlets, were stonewalled: the company farms its media-relations department out to a private company, based in Vancouver. When asking for comment for any little thing that arose over the past two years, Muskeg News was inevitably told “no comment” in a variety of ways.

As time went by, Rupertites grew more skeptical of the company, or, indeed, put it out of their thoughts altogether. The occasional rumour flared up, saying either that Canpotex was never coming, or that it was. No one was certain; everything was a speculation.

It didn’t help, either, that Canpotex had actually put a stop to a federal environmental assessment on May 14, 2010. But on June 24 of this year, that process was quietly re-started, and the new engineering report was filed less than a month later, showing that the project is still very much alive, even if nothing is official quite yet.

The environmental assessment is managed through the Canadian Environmental Assessment Agency. “The reason for continuing the environmental assessment at this time is that we received an official letter from the proponent notifying us that they wished to proceed,” wrote Maxine Leger-Haskell, a communications advisor with the Agency, in an email to Muskeg News.

While that may bring a bit of optimism to the community, further optimism may come from the engineering report that was filed on behalf of Canpotex and the Prince Rupert Port Authority. The project to build a potash terminal, in this case, is linked closely to the Port’s plans to build a circular rail system at Ridley Island, a development plan that was mentioned at its annual public meeting earlier this year.

“The PRPA road, rail and utility corridor will service the Canpotex facility as well as other future developments on Ridley Island,” states the report in its introduction. “A single environmental assessment is being proposed for these two projects as they are seen as interdependent and cannot proceed without each other.”

Numerous maps in the report show the Port plans to use the existing rail lines and extend them in a loop around Ridley Island. The loop would be 7,818 metres long, with railbeds for up to 14 inbound and 11 outbound tracks. The total area for the rail loop is 125 hectares. The potash terminal, on other hand, consists of a storage facility, a marine wharf, a trestle, a causeway, and a loading facility capable of receiving vessels of up to 180,000 dead weight tonnes. Canpotex’s portion of the project requires 21 hectares of land.

In the report, Canpotex also lays out its argument for building the potash terminal. A key ingredient in fertilizers, potash has seen an increased demand due to global food demand. The potash mines in Saskatchewan are some of the biggest deposits in the world. “Canpotex’s shareholders have planned a number of mine expansions and debottlenecking projects to increase output,” states the report in the “Project Need and Rationale” section. “For Canpotex to meet the needs of the global marketplace, additional potash export terminal capacity is required.” The company conducted “pre-feasibility” studies to develop such terminals in Rupert, Vancouver, Washington State and Oregon to increase the supply.

Page 19 of the report also lays out a tentative schedule for construction of the terminal and railyard. Construction could begin as early as spring 2013, with completion scheduled for the first quarter of 2016.

But they’re not there yet. The environmental assessment, which was put on hold for over a year, needs to first be completed. And, as part of federal law, aboriginal bands need to be consulted.

In this area, the report shows that Canpotex has been busy meeting with various aboriginal groups since February 2008. Over 20 meetings have been held, mostly with Lax Kw’alaams, Metlakatla, and Kitkatla (Gitxaala). The most recent meeting occurred on June 17 between Canpotex, Lax Kw’alaams and Metlakatla in Vancouver. While other agencies, such as Environment Canada and Fisheries & Oceans, have also met with Canpotex, the majority of meetings listed are with aboriginal bands.

Outside of the process to build a terminal, Canpotex has made a major pricing agreement with India after extensive negotiations. At the Port’s annual public meeting earlier this year,  the drop in potash prices two years ago was blamed for the delay in Canpotex’s decision to build a terminal.

And even with the re-start of the environmental review and the new draft of the engineering report, a potash terminal still isn’t a for-sure thing. In an interview with Muskeg News, the Port’s manager of corporate communications, Michael Gurney, said the timeline could change. He also downplayed the re-start of the environmental review, saying there is nothing extraordinary about it. “It’s just business as usual,” he said. “It’s the next step in the environmental assessment.”

Meanwhile, as the Northwest economy continues to struggle, Rupert continues to seek a white knight to revive its fortunes – but it hasn’t arrived, yet.

~Written by Chris Armstrong

“Hold on to 16 as long as you can; changes come around real soon make us women and men.”
~excerpt from “Jack & Dianne,” John Cougar Mellancamp

Ah, high school. Memories. Throwing that important touchdown to help your school win that key game against your cross-town rivals. Sinking that basket at the buzzer that jumpstarted your school into the provincials. Coming home with that first A in English. Your first kiss. Prom.

Okay hang on, wait a minute. Was high school really that great? Getting locked in a locker, getting treated like crap because you had the misfortune to have more acne than a Delissio pizza, or being referred to as a “loser” because you didn’t happen to play basketball.

High school memories all depend on who you were, who you hung out with, or maybe, it just depended on your grades. Or maybe it didn’t.

Perhaps, I was one of the lucky ones. I was one of those “band camp” guys, although, as a long-haired percussionist, I managed to keep myself just on the outside of what was considered a “band nerd.” The fact I played high school football (until Grade 11) probably helped, as did the fact I played in rock bands through high school.

Plus, our high school was huge. Centennial Senior Secondary, in Coquitlam, at that time had over 2,000 students, and my 1990 grad class was close to 800. Bullying rarely happened because, well, there were just too many of us to pay that much attention. So yeah, high school, not bad.

But I never got to throw that touchdown. Hell, I was never a starter, and spent most of my football career warming the bench, aside from a handful of games in Grade 10.

And even though I was a band geek, I never had no American Pie-like prom ending either. Prom actually was as forgettable as they come, as my date ended up with one of my friend’s dates. With no other real options, she and I danced to that last tragic song (“Right Here Waiting,” by Richard Marx sickeningly enough) both depressed as hell, because our dates had taken off with each other.

Of course, there are good memories too, like our Grade 11 band trip to Toronto for the nationals, and a Grade 11 P.E. hiking trip to Galiano Island.

But reunions? Well, I didn’t go to my 10th, and had no intention of going, until I heard a rumour. This was before the advent of Facebook, so reunions were still the old-fashioned way: snail mail and telephone calls, and when I received the notification, I figured I’d wait and see.

But it gets even better. Matthew Good, from the Matthew Good Band (obviously), was a fellow grad from that 1990 class. I didn’t know him aside from the odd party back in the day, but when 2000 arrived, that was right smack during the pinnacle of his band’s popularity. And believe it or not, he offered to play at the grad reunion.

But the organizing committee turned him down. Almost instantly, a grad class of 800 and the potential for a wild 10th reunion turned into a quiet gathering. I said no, many others said no, basically out of principle.

And yet, now thinking about it, wouldn’t have Good seemed a little pretentious wanting to play his high school reunion? “Hey look at me! I’m a rock star, and the rest of you, well, you aren’t!”

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“Hello time bomb, I’m ready to go off …”
~excerpt from “Hello Time Bomb,” Matthew Good Band

Nowadays, we have Facebook, but not everyone uses it. There are those who can’t stand it, or simply choose not to use it. My wife is one of those unique people who avoid Facebook like the plague, and then all of a sudden, Canada Day morning, the day the 25th PRSS high school reunion was to officially get going, she gets a phone call, and suddenly, every possible reunion emotion, good or bad, came tumbling out in the next 30 minutes.

First, it was anger that no one from her grad class had bothered to tell her about it. Then, it was frustration at her hatred of Facebook which had played a role in all this, because apparently, this had been on Facebook for months. Then, for a brief moment, it was nostalgia, as she thought back to high school. Then it was excitement, as she pondered what might transpire if she did manage to change plans and join her fellow grads that weekend.

But then it turned to withdrawal and depression, as the prototypical “Oh no I have nothing to wear,” that women of all ages, whether it’s high school, adulthood, or a reunion, experience reared its ugly head. Eventually, a 30-minute whirlwind ended exactly how it had begun: nothing happened, she didn’t go to any of the reunion activities, and really, at the end of the day, she didn’t seem all that heartbroken about it.

The topic then turned to me. What would I do when my 25th comes around? I professed that I would go. The 25th, I pointed out, is the perfect one to go to, because by then, every single person should have an idea who they have become, and should be happy with where they are in life. If they aren’t, perhaps that should be the wake-up call – get on with it!

But then I wondered about my emotions. Would I be excited about seeing my fellow grads, or would I also have fears about the perception of what I’ve become?

But the 10th annual reunion? Too soon. Those who were popular then could probably still gather a crowd, while those who weren’t, would likely stay within their own cliques. Scars, invisible or otherwise, would still be apparent. Wouldn’t they?

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“I understand why they say high school never ends …”
~excerpt from “Smile Lines,” Incubus

For me in 2000, the decision seemed rather simple. I had played in various rock bands since high school, and aside from the odd awesome gig here and there, my band hadn’t made it. Matthew Good had. It’s likely, had he played our reunion and had I attended, my night would have been spent feeling rather jealous in his direction. But when we all learned he wouldn’t be playing it, it was a lot easier to also say “No” to the reunion. And yet, every now and then, I still regret saying No.

And therein lies the problem. For every reason where it sounds like a great idea to attend a grad reunion, a lot of other bad ones hit you from the other side.

True, a lot of romanticism goes into talking about high school, and sometimes, that supposed romanticism carries over into the unavoidable high school reunions. The same used to be said for movies, although in recent years, that trend has changed, with High-school-reunions-gone wrong like Grosse Point Blank starring John Cusack, and Zack and Miri make a porno starring Seth Rogan and Elizabeth Banks.

True, there are many people out there that get all nostalgic when they look back and remember their so-called “prime” of their lives. Ask any member of the 1964 Rainmakers, and there’s no way in heck any of them would turn around and go, “High school? Hated it.”

Anyone else? Hm.

Yes, the pros and cons can affect everybody and yes, that includes those who were super popular back in the day. That all-star quarterback, who always got the girl? Oh oh, ever since, he’s worked a dead-end job, his beer-gut is bigger than that of John Goodman, and he has three kids from three different women, none of whom he has ever seen again. Or that girl who was voted as prom queen, and had every single guy drooling all through high school? Age won the race in this beauty contest, and the single mom now no longer appears to have the will to live, nor the looks to match.

On the other side of the coin, those that would rather forget about high school can now openly flaunt what they’ve become. That so-called nerd that was always picked on and bullied? Well, turns out he now pulls in a million bucks a year and could pay for the reunion out of his pocket, if he so desired. Or, that girl who was considered too homely to notice back in the day? Look out, she’s now drop-dead gorgeous, has an incredible career, and a very happy family to boot.

So it could go either way for these kind of situations. The high school reunion could act as a chance for them to remember the good ol’ days, as they try to ignore what they’ve become. Or, the high school reunion could become a sudden, “Ohmigod look what happened to them!” where the reputation of the past is now soiled with reality, or, is now flowered with what is a decent present day.

In all honesty, it’s likely that both my wife and I fit that latter category. She excelled in school, and thus, was considered a “nerd,” but she’s doing quite well for herself now, thank you very much (and hey she married a hell of guy too, didn’t she?). For me, I was the forgotten band-geek, whose aspirations for rock stardom never panned out, but I also feel like I’m doing quite well for myself these days (and I married one hell of a woman, didn’t I?)

There’s nothing I would love more than to attend my 25th reunion and flaunt it. But then again, who would I be kidding? And why would I bother? And would it even be worth attending?

The truth is, I never wanted to hold on to 16. Those that are, probably should get over it, reunion or otherwise. And maybe that’s why high school reunions will continue to happen. It’s that carrot we all can reach for, even though we don’t really know why we need it, or even want it. Or, we can also break that carrot in half, and toss it aside. In some cases, we’ll just end up “going off,” for better or for worse. Better still, and this is probably the hardest thing to do, we can just go with the flow.

Yeah, I guess it’s true – high school never does end.

~Written by Patrick Witwicki

Today is the final day of classes for students at School District 52. It’s also the last day any classes will take place at Westview Elementary, which will close today after the last bell. In honour of this bittersweet occasion, we’re running a story that appeared in our most recent print edition, entitled “Au Revoir, Westview.” (more…)

Over the last decade or so, especially with the economic issues it has had, Prince Rupert has become a transient town, with people leaving to find work or better opportunities. That has been especially true with education, since a lack of bachelor degree programs in smaller communities has forced many a student to leave home. Those who remain in Rupert are then left to watch their families and friends move away, sometimes for good.

But that has begun to change, especially in the health sector. More nurses are now choosing to stay in Rupert due to a new program offered by Northwest Community College, and are later being hired by Northern Health.

In 2005, the University of British Columbia, the College of New Caledonia in Prince George and Quesnel and Northwest Community College in Terrace, created the Northern Collaborative Baccalaureate Nursing program, a four-year program providing entry into the registered nursing program. It allows students from the Northwest to earn their bachelor’s degree in nursing without ever having to go farther than Terrace. They complete the first two years at Northwest Community College in Terrace, and then they can transfer directly to the University of Northern B.C. (UNBC) campus in Terrace. Work experience includes placement throughout the Northwest region.

Right now, eight students in the program work at Prince Rupert Regional Hospital, in the patient care departments. Five of them are from Prince Rupert, including second year student Diana Oliviera, who says she wants to be a nurse because she thinks it would be fulfilling, because there is something new every day and because she gets to work with people.

Oliviera says the program is definitely one of the reasons she has stayed in this region. “It’s closer to home, it’s cheaper, you like to stick around a place where people know you,” she says. “You get more trust if you stay in the same town where you’re born.”

Oliviera says the program has been good, it has been stressful at times and it is hard work, but it is worth it. She urges anyone who wants to take nursing to apply in Terrace. She knows some people like to go to big cities, but says it is just as good an experience to stay local: students get the same degree at a fraction of the cost.

After graduation, Oliviera says she may stay in Prince Rupert once she gets her degree because she has established a rapport here and, if she stays for five years, her student loan will be forgiven.

Ester Brisch, the instructor and coordinator of the program at Northwest Community College, says when students are trained in the north, the tend to stay in the north. “We specialize in rural and first nations nursing, which makes them qualified to work in the north and gives them a local perspective,” she says.

Brisch also says the importance of the program lies in the fact that there is a shortage of nurses provincially, nationally and internationally, and they want to meet the needs of the students they serve.

According to Northern Health, of the 66 nurses who are currently employed at Prince Rupert Regional Hospital, only nine were raised in Prince Rupert, but there does appear to be a trend in recent years of more local residents entering the nursing programs offered in the region.

Jane Wilde, Director of Care for Northern Health, Prince Rupert and Haida Gwaii, says the hospital has recently hired four new graduates as casual registered nurses. She says nurses from Rupert working in Rupert know the place, the town, the culture, and they have networks of support.

“Many of us came here not knowing what we were coming to,” says Wilde. “It’s a big advantage in terms of career comfort.”

Perhaps, with programs like this, Rupertites will realize they need not move away to find opportunity, but instead find it right where they are.

~Written by Gina Clark

Over the past two years, British Columbians have been subjected to extreme contrasting arguments over the Harmonized Sales Tax (HST). As a result, one side throws vague arguments against the other, and vice versa.

The HST passes costs from business to the individual. No, it’s a way to make the provincial economy more competitive. That’s wrong; it would put restaurants out of business and you wouldn’t be able to afford your morning Tim’s. Incorrect; it will lead to the creation of three bajillion jobs.

And so on. Each argument never actually touched on specifics, instead relying on oft-repeated maxims that have been parroted by the left & right for the last few decades. Finally, last week, an excellent report from an independent panel of four experts was published, and with about a month to go before the HST referendum, we have some verifiable numbers and probable specific outcomes on what would happen if we stayed with the tax. (See that report here.)

In clear language, the authors of the report, titled “It’s your decision,” concisely look at each side of the debate, answering common questions about the tax in plain English. Indeed, the report is so well-written that it feels shorter than its already-brief 21 pages. And, based on this report, we feel that B.C. should accept the new tax in the referendum, which will be mailed out next month.

The main thrust of the panel’s argument is that the HST trade short-term hurt for long-term gain. Media reports after the report was released focused on the fact the HST adds $350 per year to the average family’s bills. Cancelling the HST, then, would put more money in your pocket.

But the cost of doing so screws us in the future. Like everywhere else in North America, B.C.’s population is aging, which is already putting a strain on social services – paid for by the taxpayer. And it will only get worse. The report points out that 42 per cent of the provincial budget is taken up with health care costs. Another eight per cent is spent on social services. When you add 27 per cent spent on education in the province, that’s an astounding 77 per cent of the budget that is used to spend money on various social programs & services.

As anyone who has been paying attention to recent demographic trends knows, as the population ages, they retire, which means they’ll become more dependent on these social programs for assistance. There’s also another side-effect, or, more appropriately, a taxpayer double-whammy: when they retire, they pay much less in income taxes, which means the tax base shrinks. In other words, more services will be needed and there won’t be as much money going into the system.

Enter the HST. According to the authors of the report, the HST “taxes the growing part of economy – services – and will provide extra revenue to fund hospitals, schools, roads and other important public services you rely on.” The authors note that, yes, British Columbians have already paid more at the cash register than they did under the PST/GST system, and the government has subsequently raked in the cash: families now pay $1.33 billion more under the HST after rebates are taken into effect.

We’re no fans of big government, but we realize the simple reality that, in the near-term future, there will be more demand for the services government provides. If the HST is scrapped, government will have to find other ways to raise revenue (which is undesirable), or to run on a deficit (which is unsustainable).

The report also points out something that should be glaringly obvious, but which hasn’t had a spotlight put upon it: if you vote down the HST, we’ll still have a sales tax. Look at the referendum question: “Are you in favour of extinguishing the HST and reinstating the PST in conjunction with the GST? Yes or no?” [Italics mine]. When you go buy a coffee or a big-screen TV, you’ll still be charged a consumption tax. It’s best not to forget about that.

And the report also points out that reverting to the GST/PST system would be very costly. Not only would the Province have to pay back $1.6 billion in transitional funding to the federal government, but the Province would have to re-open a PST office that costs $35 million per year. On top of that, the report estimates the provincial government would see a net revenue loss of $531 million in 2013/2014. And things wouldn’t get better after that: by the tax year, that revenue loss would grow to $645 million.

Staying with the HST, on the other hand, would allow the provincial budget to be balanced a little earlier. Projections also show that, by 2020, the provincial economy would be $2.5 billion larger under the HST than under the PST/GST. And the authors of the report estimate  24,000 better-paying jobs will be created.

Again, this is a long way down the road, but it appears the HST will contribute to slow and steady growth. It won’t happen overnight, but it will happen, and we’ll be better off for it.

The report also implicitly defeats a key argument for voting down the HST: that the new tax shuffles the burden from business onto the individual. In the short term, it does do this, especially when the “average family” is paying $350 more per year at the cash register. But let’s take a closer look at what this average family is.

According to the report, if your family makes less than $10,000 – which accounts for about 15 per cent of all families in the province – you’ll actually be getting $73 back each year with rebates. If your family makes between $20,000-$40,000 per year, you’re spending $129 more under the HST – which of course is an increase, but is lower than the $350 “average family” increase. The families that are hit hardest under the HST are those lucky enough to make more than $100,000 per year, which comprise about 15 per cent of the population. The net impact there is $1,029 more spent per person.

The report admits that yes, the HST is a shift from businesses to the consumer. But, in the long run, this is beneficial to the consumer, as businesses will pass on their savings and lower their prices. For those skeptical that businesses will actually lower their prices, we’ll let the report speak to that:

“Critics of the HST have suggested businesses do not pass through their HST savings to the consumer. However, experience in other jurisdictions shows, over time, competition forces businesses to pass on these HST savings to consumers. If they don’t, they lose customers.” (p. 8)

The other big complaint about the HST is that it was forced through the legislature and is undemocratic. We couldn’t agree more. We would have loved to have seen the 2009 provincial election fought on whether or not to implement the HST; presumably, the B.C. Liberals would support the plan, and the NDP would have opposed it. That would have been a great election campaign and provide voters with a clear ballot-box question.

Alas, that didn’t happen. But it doesn’t mean ramifications weren’t felt: Gordon Campbell quit as premier after HST rage had risen to a boil. So, really, didn’t the opponents of the HST get what they wanted? Gordo had been on their radar for the past 20 years – the controversy surrounding the implementation of the tax defeated him. They should rightly celebrate their victory.

But that victory should not come at the cost of a bleaker financial future for B.C. A cup of coffee costs more under the HST, but the tax will help you or your loved ones when they need increased health care 20 years from now. We should never trade gains in the present for losses in the future; for this reason, Muskeg News strongly supports the HST and encourages you to support the tax and vote “No” in the upcoming referendum.

~Written by Chris Armstrong