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MLAs vote on contentious PST hike Thursday

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About 150 people attended this peaceful rally last June to protest against the PST hike.

JESSICA BURTNICK / WINNIPEG FREE PRESS ARCHIVES Enlarge Image

About 150 people attended this peaceful rally last June to protest against the PST hike. Photo Store

Manitoba MLAs are scheduled to vote Thursday on legislation on the increase to the provincial sales tax, ending a chapter of one of the most vocal political debates in province.

The vote on Bill 20 caps a debate that started last April when then-finance minister Stan Struthers outlined the Selinger government’s plan to increase the PST by one point to eight per cent.

What followed was an extensive debate led by the Opposition Progressive Conservatives that saw the house sit through a rare summer sitting in which several other bills were delayed, including the government’s budget implantation bill.

That bill went to a vote late today.

The NDP has a 37-seat majority in the 57-seat assembly, so Bill 20 is expected to pass easily. The Tories have 17 seats (two PC MLAs have resigned in the past year; byelections have yet to called) and the Liberals have one seat. 

The NDP have said despite Bill 20 and the budget implementation act not passing in the spring, the tax measures announced in April still came into force July 1 because they were announced in the budget. Bill 20 allows for the tax increase without the legislative requirement for public referendum.

Finance Minister Jennifer Howard said the focus of the government now is telling Manitobans where the revenue from the tax increase is going. Since the government’s throne speech Nov. 12, the NDP have held almost daily news conferences to highlight road and highway infrastructure projects to be built over the next few years. The government is forecast to earn about $300 million annually from the PST increase.

"I take no joy in the passage of that bill tomorrow," Howard said Wednesday. "But I believe it was the right choice for the future of Manitobans and a responsible choice." 

PC Opposition Leader Brian Pallister said with the passage of Bill 20, the Tories will be able to take a harder look at going to court to challenge the legality of Bill 20 and the tax hike without a referendum.

"It’s a precedent , a dangerous precedent because it allows the government to circumvent the right of Manitobans to vote on a tax hike that takes money right off their kitchen table and puts it at the cabinet table for the NDP to spend," Pallister said.

Following the vote on Bill 20 Thursday, the house is expected rise for the Christmas break. MLAs are to return to the assembly in March with a new budget tabled at some point.

 

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