HST referendum results: HST repealed

  With 1.6 million votes cast, the HST referendum results are in, and the tax has been scrapped.

The HST has been controversial from the beginning, and now the province has voted to repeal the HST, with 54.7 per cent voting to get rid of it, and 45.3 per cent voting to keep it.  

“Fight HST” leader Bill Vander Zalm, whom many credit for starting the movement to repeal the HST, called referendum results a “phenomenal victory.”

President of the B.C. Federation of Labour Jim Sinclair said the people’s vote is the defeat of the “politics of fear.”

Federal New Democrats, who are still in mourning for their late leader Jack Layton, were congratulating the people of British Columbia on what they call a “historic” victory.

“This referendum was a great victory for British Columbians who believe that honesty is important in politics,” said NDP Deputy Leader Libby Davies. “They have clearly said they want to reverse the Harper government’s cynical move to force the HST on the people of our province. Conservatives better listen.”

The federal government pledged to help B.C. transition back to the PST/GST system.

“We respect the decision made by the people of British Columbia,” said Finance Minister Jim Flaherty’s spokesman Chisholm Pothier. “We will work with the Government of B.C. on the transition.”

Pothier also said the federal government expects the province to repay the $1.6 billion in transitional assistance given to implement the HST, as promised.

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Vancouver NDP MP Don Davies said the federal government should erase the $1.6 billion debt.

“Small businesses of all types suffered significant losses due to the HST,” he said. “It would be both spiteful and damaging for Harper to now force BC to pay back $1.6 billion, after it was already invested in things like health care and education.”

The Canadian Taxpayers Federation says while the province-wide referendum allowed for the people’s voice to be heard, dealing with the 60-year-old PST will be hard work for Clark’s government.

“Had the government engaged taxpayers in the first place and asked for their approval for a reduced, 10 per cent HST, before unilaterally enacting a 12 per cent HST, taxpayers, businesses, and the economy would all be better off today,” said Jordan Bateman, B.C. Director of the Canadian Taxpayers Federation, in a statement.

Many businesses across the province are now left scrambling to cover the gap in their budgets left by the elimination of the HST.

The B.C. Business Council dubbed the HST rejection “disappointing.”

The Council is calling on the B.C. government to address the short-term impacts of the transition to the old tax system and tackle issues that are bound to arise when it comes to BC’s competitiveness with other provinces.

“Unfortunately, businesses and government will face direct and indirect costs and lost revenues in the billions of dollars as the province shifts back to an inefficient and cumbersome retail sales tax,” said Jock Finlayson, Executive Vice President of the Business Council, in a statement.

In a press conference following today’s announcement, BC Finance Minister Kevin Falcon warned there will be significant fiscal impacts of going back to the old GST/PST tax system.

Falcon said the HST will not be scrapped immediately, and the target time to restore the GST/PST system would be March 31, 2013.

The PST will be restored at 7 per cent with all permanent PST exemptions, and the $230 HST low income credit will be replaced with $75 PST credit.

“We will work as quickly as we responsibly can to return to the PST,” said Falcon in a statement. “We have always been clear that, as the independent panel found, dismantling the B.C. HST and returning to the PST will take time to do properly.”

B.C. Premier Christy Clark refused to rule out a fall election despite a hard hit her government took today.

“If HST was introduced in a different way, it might have had a different reception with British Columbians,” said Clark in a press conference following the announcement.

“Our government tried to make things right by doing things differently.”

Clark said while she is disappointed with the results, it is time to turn the page.  

Riding by riding

Looking at the riding-by-riding numbers, there was a clear socio-economic pattern in the way British Columbians voted. The vote was very much split between the rich and relatively poor.  

The largest number of people voting to scrap the HST came from constituencies in Surrey-Green Timbers (75.51%), Vancouver-Kingsway (72.45%) and Surrey-Newton (72.22%). Voting to keep the HST were residents in West Vancouver-Capilano (35.48%), Vancouver-Quilchena (37.60%) and West Vancouver-Sea to Sky (39.22%). 

And while many NDP ridings voted in line with their party’s agenda, the same cannot be said about many of the Liberal ridings. 

Detailed Voting Results Breakdown from Elections BC.