HST hike overshadows budget praise
Posted Apr 6, 2011 05:45:55 AM.
This article is more than 5 years old.
As Nova Scotia’s elected representatives prepare to offer their opinions on the latest budget, special interest groups are also weighing in.
The Halifax Chamber of Commerce says in a release that it’s pleased with the Dexter government’s focus on getting the books balanced again, and says it deserves credit for exercising restraint while still providing something for everyone.
But for others, any praise is overshadowed by the looming spectre of the two per cent hike to the HST.
Luc Erjavec, president of the Canadian Restaurant and Food Services Association, says the little perks in the budget don’t make up for the ongoing impact of the HST increase.
“You cannot not lose sight of the fact that we probably have one of the least competitive business climates in Canada and there’s not a long-term plan to deal with this,” he said.
Kevin Lacey of the Canadian Taxpayers’ Federation said the NDP gets full marks for controlling unbudgeted spending, but tempered that applause with a caveat.
“This was a real problem under the previous government and this finance minister has credibly addressed that, I give him credit,” he said. “But the real problem is that the HST increase is now haunting taxpayers.”
The hike also haunts Leanne Hachey of the Canadian Federation of Independent Business, who says she also found a few things to like in the budget.
“The increase in basic personal exemption, which all Nova Scotians will benefit from, is a good thing,” she said. “We had that small reduction in the business tax rate, but we still haven’t improved our overall competitiveness, because let’s not forget how much that HST increase is bringing in every year – to the tune of 300 million plus dollars.”
Students are also divided over some of the attention-getting items in the budget, specifically $30 million for bursaries and a new maximum debt cap of $28,560 for a four-year program.
Rob Leforte with the Alliance of Nova Scotia Student Associations says these and other measures, including grant amounts and income exemptions, are welcome news.
“I’m very pleased to see the debt cap is going to be implemented, the first debt cap in Nova Scotia history,” he said. “It’s a big impact on those students who are seeing the most significant challenges when trying to access post-secondary education.”
However, Elyse Graham, chair of the Canadian Federation of Students in Nova Scotia says that while the grant increases are good news – there’s nothing else to cheer about in the budget.
“Really, students are asking and have been asking for lower tuition fees, more grants for students and more funding for post-secondary education and we have not been seeing that,” she said.
On the health front, the Nova Scotia Citizens’ Health Care Network is applauding the creation of four collaborative emergency centres.
The centres, staffed by nurses, paramedics and other health professionals, are designed to take the pressure off rural emergency rooms.
But Health Care Network coordinator Kyle Buott says more funding is needed for the health care system overall.
