Friday, 13 December 2024

N.B. premier, Ottawa at odds over compensation for tax holiday

 

N.B. premier, Ottawa at odds over compensation for tax holiday

Holt says province is entitled to $70 million but federal minister says there’ll be ‘no direct compensation’

Premier Susan Holt's government appears headed for a confrontation with Ottawa over $70 million in tax revenue the province will lose as a result of a federal sales-tax holiday starting this weekend.

Holt says New Brunswick has a right to the money under a federal-provincial agreement and will not waive that right.

But Dominic LeBlanc, the senior federal cabinet minister from the province, said Friday that there'll be no reimbursement.

"There'll be no direct compensation," he said at an event in Fredericton. "We've made that clear."

He pointed out that Ottawa had reached an "understanding" with three of the four other provinces in the same situation as New Brunswick and said he was "convinced" there'd be a similar understanding with Holt.

WATCH | 'That sounds like a question for them':
 

It's N.B. vs. Ottawa over lost HST

Premier Holt says HST holiday means the province is entitled to lost tax revenue, but the federal minister says that’s not the case.

Holt warned on Thursday, however, that if Ottawa doesn't pay up, "we'll have to have a pretty serious conversation about the terms of that agreement and our interpretations of them."

Asked if that meant legal action, the premier said, "Possibly. I'm optimistic that that won't be required."

The issue stems from the 1996 Comprehensive Integrated Tax Collection Agreement, known as a CITCA, between Ottawa and New Brunswick that created the blended, federal-provincial harmonized sales tax.

The federal government collected the tax for both levels of government and remits the provincial portion to the province.

But the Trudeau Liberals' two-month GST holiday on some consumer goods announced last month means that Ottawa won't be collecting the money — including New Brunswick's share.

Under the agreement, any tax change at the federal level that affects one per cent or more of the provincial tax amount entitles the province to compensation.

"They have to provide compensation," Yves Giroux, the parliamentary budget officer in Ottawa, told a Senate committee earlier this month. "CITCAs are quite clear, unless the province explicitly waives their right to get such a compensation."

Woman speaking surrounded by microphones Premier Susan Holt has previously said that the federal tax holiday could cost the province lost revenue. (Stephen MacGillivray/The Canadian Press)

Holt was emphatic in the legislature this week that New Brunswick would insist on being paid.

"We have not waived and will not be waiving our participation in this agreement," she said Thursday in question period.

She told reporters that officials had talked about other ways to make up the lost $70 million in provincial revenue but none of those options produced "sufficient amounts" of money. 

"Our bottom line is New Brunswickers have to remain whole," Holt told reporters. "We haven't found another way to do that, other than the agreement.

"I can't take $70 million out of our budget without it being reimbursed."

Holt's government is already projecting a $92.1 million deficit this year and recently announced nurse retention bonuses that will add another $60 million to the province's bottom line.

The tax holiday begins Saturday and will remove the federal GST from various items, including snack foods, alcoholic drinks, restaurant meals, books, newspapers and children's toys and diapers.

In the five provinces with HST agreements, the provincial portion of the tax is being removed as well.

Ontario, Prince Edward Island and Newfoundland and Labrador have all agreed to provide provincial sales tax holidays as well, waiving their right to compensation, and a spokesperson for Nova Scotia premier Tim Houston hinted this week a similar plan is in the works there.

"Nova Scotia looks forward to working with the federal government on any measures to help Nova Scotians make life more affordable," said Catherine Klimek.

ABOUT THE AUTHOR


Jacques Poitras

Provincial Affairs reporter

Jacques Poitras has been CBC's provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

 
 

95 Comments



David Amos

Oh My My Isn't this special?

"Under the agreement, any tax change at the federal level that affects one per cent or more of the provincial tax amount entitles the province to compensation.

"They have to provide compensation," Yves Giroux, the parliamentary budget officer in Ottawa, told a Senate committee earlier this month. "CITCAs are quite clear, unless the province explicitly waives their right to get such a compensation."
 
David Amos
Reply to David Amos
Yet the pot thickens anyway

"Holt warned on Thursday, however, that if Ottawa doesn't pay up, "we'll have to have a pretty serious conversation about the terms of that agreement and our interpretations of them."

Asked if that meant legal action, the premier said, "Possibly. I'm optimistic that that won't be required."



David Amos
Pending approval
This was the news 2 days before Trudeau the Younger and his party won every seat in the Maritimes and The Rock

https://www.cbc.ca/news/canada/new-brunswick/fundy-royal-riding-profile-1.3274276


Fundy Royal campaign targets middle class with focus on jobs

Fundy Royal voters have elected Conservatives all but 1 time in 28 elections over 101 years

CBC News · Posted: Oct 17, 2015 6:00 AM ADT



David Amos
Interesting that the Legislature closed for the year on Friday the 13th while Leblanc was in Fat Fred City

David Amos
Reply to David Amos
I wonder if he recalls what I said in that building on live TV News 19 very long years ago

David Amos
Reply to David Amos
Deja Vu Anyone?

https://www.youtube.com/watch?v=-ERN3OrEBWU&t=16s




David Amos
Oh My

https://www.youtube.com/watch?v=WSP6V-s6VHM


Freeland addresses reported rift with PM, Carney rumours I Political Pulse Panel

CBC News

Dec 13, 2024

As the finance minister prepares to deliver the fall economic statement, she's also answering questions about a reported rift with the prime minister and rumours she could be replaced in cabinet. Party insiders discuss the politics driving the leaks about Chrystia Freeland and Mark Carney as Canada faces Donald Trump's tariff threat.

David Amos
Reply to David Amos
More?

https://www.youtube.com/watch?v=i5hpdUZ_PNQ


Tories demand probe into Liberals' false claim that Emergencies Act was invoked at RCMP's request

Canada Info

Dec 13, 2024

HOUSE OF COMMONS OF CANADA

When the member for Eglinton—Lawrence, then the minister of public safety, appeared before the committee on April 26, 2022, he made repeated assertions that the NDP-Liberal government invoked the Emergencies Act at the request of law enforcement. This now-infamous claim by the former minister, made at the committee table, went viral as police officer after police officer and official after official denied it before the Standing Committee on Procedure and House Affairs and before the Public Order Emergency Commission. Documentary evidence further substantiated just how wrong the former minister's claim was.

Don Corey

Reply to David Amos
Wow!

David Amos
Reply to Don Corey
I second that emotion



David Amos
It that I am not the only "Not So Proud" Canadian

Dec. 13, 2024

From Oh Canada to No, Canada: National pride has taken a steep decline in recent years, new poll suggests

Canadians’ pride and attachment in their country have taken a dive, a new poll from the Angus Reid Institute suggests. What’s going on?

David Amos
Pending approval
Reply to David Amos
Will Parliament be a 'gong show' again in 2025?

The Conservatives say they're filibustering for a principle — but the facts don't entirely agree

Aaron Wherry · CBC News · Posted: Dec 14, 2024 5:00 AM AST

David Amos
Pending approval
Reply to David Amos
https://www.cbc.ca/listen/live-radio/1-64-the-house/clip/16115872-ontarios-power-play-donald-trump

Dec. 13, 2024

Ontario premier Doug Ford made a splash this week when he suggested his province could withhold energy exports to the United States if president-elect Donald Trump slaps steep tariffs on Canadian goods. Is Ontario gearing up for a trade war with the U.S? Ontario’s energy minister explains how far the province is willing to go on the issue.

Then, the CEO of Abacus Data joins the program to discuss his new poll that shows Trump is more popular in Canada than Prime Minister Justin Trudeau, and what it means for Trudeau’s tariff negotiations with the Trump administration.

Plus, with days to go until Finance Minister Chrystia Freeland presents her fall economic update, two economists debate the deficit, which fiscal anchors matter the most and what Canada should do about Trump’s concerns on trade.

Finally, the Liberals have tightened rules around the temporary foreign worker program, but why is it so susceptible to abuse? The House does a deep dive into the program to understand the problems and benefits for businesses and workers.

ralph jacobs
Reply to David Amos
I really think it comes from whose in Ottawa. I remember a couple of years ago someone mentioned to the PM that his immigration doings were spoiling Canadian culture and he replied Canada doesn't have a culture.

Edward Peter
Reply to David Amos
Started around 2004, I agree, they have been the albatross around our neck since then, in or out of power.

Edward Peter
Reply to ralph jacobs
Was that in 2013?

ralph jacobs
Reply to  Edward Peter
Well after that.

Don Corey
Reply to David Amos
It comes as no surprise, when we have a government that wants to erase our history, and wipe out our culture (except in Quebec of course.

David Amos
Reply to Don Corey
Pending approval

David Amos
Pending approval
Reply to Edward Peter
I wonder if anyone recalls what transpired between Michael Kydd and I in 2013

Justin Trudeau's 'Just watch me' note to Halifax man sold on eBay

Michael Kydd asked Trudeau in 2013, 'Can you really beat Harper?' and got note in reply

CBC Mainstreet · CBC News · Posted: Oct 21, 2015 3:43 PM ADT

David Amos
Reply to ralph jacobs
There is much more to this story



Frank Blacklock
The average Canadian will save under $5.00 from this tax holiday. But don’t worry, because we pay much more than that for the bureaucrats and reckless government spending.

David Amos
Reply to Frank Blacklock
Amen



Matt Steele
The squandering and mismanagement of taxpayer cash never seems to end . It isn't going to take Susan Holt long to blow through that TWO and a Half BILLION dollars that Higgs paid down on the debt . She has only been in office not much more than a month , and look at the financial mess that is happening as the FEDERAL government obviously doesn't take Holt seriously .

David Amos
Reply to Matt Steele
Obviously nobody takes the FEDERAL government seriously



Samual Johnston
I wonder what the cost to implement this program is? So complicated and so much work for so little benefit.

David Amos
Pending approval 
Reply to Samual Johnston
Ask these folks
https://www.cbc.ca/news/canada/new-brunswick/hst-holiday-businesses-benefits-drawbacks-1.7410313




David Webb
I would think that all of those that voted for more free stuff, because government debt doesn't matter, are miffed at Sue for not agreeing to more free stuff. Stand firm Sue, this bunch in Ottawa are only trying to save their hides by buying votes, but then again retention bonuses for nurses isn't much different. The PS unions are going to hold you to more, more, more because of your questionable move. Have fun dealing with that and keeping the province out of the red. What about the promised carbon adjuster tax thingy? How about being the most functionally illiterate province in the country?

David Amos
Reply to David Webb
Merry Christmas

valmond landry
Reply to David Amos
yup



Helen Cochrane
There's not much on the tax holiday for the average family. Diapers should be tax exempt all the time, they're a necessity. Restaurants & delivered food ? Not many can afford that.

David Amos
Reply to Helen Cochrane
Good point

Edward Peter

Reply to Helen Cochrane
Then why are all the Delivery businesses booming, and some restaurants say 50% of their business is takeout?



Denis van humbeck

The federal government should stop giving our money to foreign countries at war.

David Amos
Reply to Denis van humbeck
I Wholeheartedly Agree

ralph jacobs
Reply to Denis van humbeck
I wish we could do something about these countries that start the wars.

Samual Johnston
Reply to Denis van humbeck
We either help those fighting or we prepare to participate in the fight. Our best money spent is going to Ukraine and Israel who fight on our behalf.



Ken Herman
So the federal government is forcing provinces with a HST to lose money. We really need an election

Geordan Mann
Reply to Ken Herman
The federal government should just stop trying to manage income. Hire someone who at least understands how to spend wisely. They are great at spending, not so great at managing money. That is what happens when your finance people are "led" by journalists.

David Amos
Reply to Geordan Mann
No doubt Mr Outhouse is available

ralph jacobs
Reply to Ken Herman
He should have started it by removing the carbon tax.



Mark Murphy
Another, LIBERAL GOVERNMENT, Tax and Spend. and not comply with Liberal Promise

and then Immediately go INTO DEFICIENT SPENDING

David Amos
Reply to Mark Murphy
Par for the course



John Hoagie
Perhaps if Holt doesn't want to waive compensation as other provinces have done the feds should just cancel the tax holiday in New Brunswick.

David Amos
Reply to John Hoagie
Perhaps they should revoke us being bilingual as well

Ken Herman
Reply to John Hoagie
So the federal forces the province to go that much further in debt , just to get votes?

Geordan Mann

Reply to John Hoagie
Sounds like a good idea. They could also cancel all the other freebies they are constantly handing out to gain an election advantage in 2025.



Les Cooper
Bet she raises taxes to cover the tax holiday!

David Amos
Reply to Les Cooper
I doubt it



Les Cooper
Holt is alll about spending money. Why is she upset?

David Amos
Reply to Les Cooper
She needs the money in order to spend it

Don Corey
Reply to David Amos
Absolutely!



MR Cain
Holy moly! Just spend your money, don't worry about it. All media hype.



Gregg Symonds
gonna be difficult to sleep tonite knowin' there's a GST Holiday tomorrow. LOL .

David Amos
Reply to Gregg Symonds
Wakey Wakey I didn't sleep well because it was a three dog night and I only have one



walter williams
can this federal government do anything without mucking it up?

David Amos
Reply to walter williams
Nope

Ken Herman
Reply to walter williams
Let’s see, WE? Nope, Air passengers bill of rights (2nd try ) ? Nope

Longgun bill? Nope



Otto Wagner
We will add holts name to the list of women who’s opinion jt has no respect for

David Amos
Reply to Otto Wagner
Who is "We"?

Otto Wagner
Reply to David Amos
JWR and Jane P are a couple high profile ones. We is those of us that actually read this

David Amos
Reply to Otto Wagner
Do you read enough to know who I am?



Otto Wagner
We can add holts name to the list.

David Amos

Reply to Otto Wagner
What list?

Tom

Reply to Otto Wagner
You mean your "enemies list" right?


 
Ted DiBlase
Left eating there own, love it.

David Amos
Reply to Ted DiBlase
Me too



Gordon MacFarlane

Ahh peace and harmony between the feds and provinces...

Or we can have this

David Amos
Reply to Gordon MacFarlane
I will take this any day



Horst Harvey

Get used to it dear .

Plenty more where that came from .

David Amos
Reply to Horst Harvey
Surely you jest



Dianne MacPherson

Ms. Holt burned her bridges by spending

money she didn't have.

One too many Election Promises

to honour.......

$60Million on retention bonuses.

MR Cain
Reply to Dianne MacPherson
Hi Dennis, hope things are well with you.

David Amos
Reply to Dianne MacPherson
I thought you enjoyed your party getting along with the new mandate?



Don Corey
LeBlanc is looking pretty ragged; must be tough sledding when your party continues to tank in the polls, foul up everything they touch and then there's also trying to work for the hugely unpopular governor.

Maybe he should finally do something for the province he supposedly represents.

Doug kirby
Reply to Don Corey
He's childhood friends with trudeau he will be well looked after...funny how his office is in NB? That shows true colors

MR Cain
Reply to Doug kirby
Good buddies with the Irving family too. He is representing the riding of Beauséjour, why shouldn't his office be in NB.

Ted DiBlase
Reply to Don Corey
J tee looked brutal a week ago. No one seen him since.

David Amos
Reply to Don Corey
Methinks he will be eating these words N'esy Pas?

"Dominic LeBlanc, the senior federal cabinet minister from the province, said Friday that there'll be no reimbursement.

"There'll be no direct compensation," he said at an event in Fredericton. "We've made that clear."



Albalita Star
Another Federal Government day...dream up some unworkable plan and then dump it on to someone else's lap and ride off into the sunset...dental...pharma...day care...arrivcan...

David Amos
Reply to Albalita Star
Welcome back to the circus



Doug kirby
The provincial portion is not federal...if this trudeau Christmas scam is causing financial hardship for some.provinces how is that a present? The whole thing a complete mess and unless your a drinker it's not helping many

David Amos
Reply to Doug kirby
C'est Vrai



MR Cain
That's our girl Sue! Go get'em tiger!



Graeme Scott
Good for Premier Holt! I hope she stands firm. There is no upside to cozying up to Trudeau and his government. They will be nothing but a historical footnote in another 10 months or less.

MR Cain
Reply to Graeme Scott
Not something anybody is looking forward to. Being the poorest province in Canada, a Con government will make it ten times worse.

David Amos
Reply to Graeme Scott
Oh so true

Ken Herman

Reply to MR Cain
How is that ?



Don Corey
I commend our new premier for not giving in, and insisting that NB be compensated for the lost PST revenue.

This federal government never ceases to intrude on/violate issues and legislation, that clearly fall under provincial jurisdiction.

David Amos

Reply to Don Corey
Yup



Christine Martinez
Holt in over her head. A 92 million deficit already, and she doesn't want to give up the 70 million in PST tax that the other HST provinces agree is the right thing to do. She'll find a way to increases both deficits and taxes anyway, though. It's what Liberals do.

Steve Simonds

Reply to Christine Martinez
Other provinces and you know what's right for nb.

David Amos
Reply to Steve Simonds
Dream on



Christine Martinez
So, then, it sounds like Holt wants to (effectively) collect the provincial sales tax component, whereas the other provinces agree that taxpayers should be getting a break on both the PST and GST components.

Holt has a $92.1 million deficit this year because she's already spending money hand over fist, and she can't afford to also lose the $70 million in PST tax revenue. Don't worry, though, she'll find ways to add more taxes to make up the difference, AND keep adding to the deficit. Liberals be doing what Liberals do best.

Alison Jackson
Reply to Christine Martinez
It doesn't matter what she says or does, even if you silently agree with her. You are going to paint her in a bad light because of your overwhelming bias. Don't believe me? Look at your visible posts..all the same agenda.

MR Cain
Reply to Christine Martinez
People will be spending more on taxable items, so all the revenue will be recovered, especially since we have a big jump in population and their needs.

David Amos
Reply to Alison Jackson
I suspect that this news raised the ire of a lot of folks in my neck of the woods

https://www.cbc.ca/news/canada/new-brunswick/french-overcrowding-schools-1.7409586

 
 
 
 
 
 
 
 
 
 

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