Centre for Civic Governance

Coun. Brian Skakun has launched a campaign of his own to stop the harmonized sales tax.
Taking a page from the NDP playbook, Skakun has started a petition drive which he hopes to use to convince the rest of his city council colleagues to adopt a resolution to take to the Union of British Columbia Municipalities convention in September.
Supporters say the HST will be revenue neutral for the government, but Skakun said it will shift at least some of the burden onto consumers who will pay the provincial portion of the tax on a wider range of goods and services once implemented next summer.
Skakun also maintains the savings businesses will reap won't be passed onto the consumer.
"I think if the government is really concerned that it's onerous on businesses to collect two taxes, work with them to help them collect those two taxes and streamline it, but don't hit the people of the province with increased taxes," Skakun said.
Although not typically local government business, fighting the HST is a cause city council should pursue in Skakun's view. Council passes resolutions on many federal and provincial issues, he noted.
"Something like this that has a negative effect on the local constituents is our responsibility," he said.
Initiatives Prince George president Tim McEwan takes the opposite view.
"From an economy-wide perspective, it's the single best thing you can do to improve the economic performance and productivity of British Columbia," he said. "It is a real winner in the long run for job and wealth creation and ultimately, once the tax firmly kicks in, consumers will have savings passed on as businesses become more competitive."
It's particularly beneficial for northern B.C.'s export-oriented economy because it helps make businesses more competitive against those in other jurisdictions, McEwan said, and called the move "politically courageous."
Explaining the benefits has been difficult, McEwan said businesses will gain in terms of both reduced paperwork and reduced taxes on business inputs because the HST will apply only to the end product.
"It's passed on to consumers but in the final instance, all taxes are passed on to consumers," he said. "It removes unbelievable distortion, duplication and so forth."
McEwan anticipates more businesspeople will come out in defence of the measure as time goes on, "because it's absolutely the right thing to do from an economy-wide perspective."
Skakun said he's not interested in running for the NDP in the next provincial election.
"I have no aspirations of moving on in politics, I like my job as a city councillor," he said. "I'm just conveying a message that's been brought to me by many people in the community."
Skakun's petition can be found at: www.petitionspot.com/petitions/citycouncillor.

By Mark Neilsen, Prince George Citizen August 13, 2009