HST study irrelevant to B.C.: business group

The B.C. Chamber of Commerce is dismissing a report from the CD Howe Institute predicting the HST could slow the provincial economy for several years after roll-out.

In documents released under a freedom of information request, the Ottawa-based government policy think tank suggested it may take five or more years for wages and jobs to recover from the HST.

But Chamber CEO John Winter said the report focused on the implications of the tax in Ontario, not B.C.

"The CD Howe report is really irrelevant, it has no applicability to British Columbia," he said. "It was based on a model that was not the model of HST introduced into B.C."

Winter also said the report fails to mention the HST exemptions in B.C.

"The exemptions that exist in the HST for British Columbia include things like motor fuel, food and medical services and on and on, those are not even referenced in the document," he said.

The study was also written before B.C. negotiated a lower 12 per cent HST for the province, rather than the 13 per cent rate used in the other provinces wherethe HSTexists.

The tax came into effect on July 1, 2010, replacing theseven per cent PST andfive per cent GST, but theend of many PSTexceptions has provoked widespread protest and angerdirected at B.C.'sLiberal government.

Critics dismiss minister's explanation

Other documents released along with the CD Howe report showed B.C. bureaucrats were discussing the HST with officials in Ottawa in early 2009 and had prepared briefing notes on the tax for Finance Minister Colin Hansen before last year's provincial election.

Hansen has insisted he wasn't contemplating the tax before the election and his staff were just doing their jobs by studying the HST.

But his critics, such as the NDP MLA John Horgan, say they find that hard to believe.

"I'm surprised that Mr. Hansen thinks we should believe him when he says they were just working for the sake of working," said Horgan.

University of Victoria political scientist Dennis Pilon agrees.

"More evidence seems to be there that they were thinking about this before the election so it starts to look like a cover-up," said Pilon.

No plans to resign

As far as calls for his resignation go, Hansen said he still stands by his record.

"I'm proud of what we've accomplished and I intend to fully continue to work on behalf of the people of British Columbia," he said.

On Thursday, the president of a Liberal riding association in Langley, B.C., wrote on a blog that the finance minister ought to resign over the HST controversy.

"Under his ministry, the handling and implementation of the HST has been one blunder after another. And now his credibility is completely shot," Jordan Bateman wrote.

Hansen said he ironed out the disagreement with Bateman and the blog postwasremoved.

Despite taking all the heat, Hansen is standing behind the absent Gordon Campbell, who has yet to comment publicly on the release of the documents.

"I've got full confidence in the leadership Gordon Campbell is providing. It's strong leadership," said Hansen.