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Documents obtained through an Access to Information request show that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) Documents obtained through an Access to Information request show that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) The B.C. Liberal government was discussing and studying the Harmonized Sales Tax five months before they actually told British Columbians about it, CTV News has learned Fight HST leader Bill Vander Zalm looks through internal government documents showing that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) Anti-HST activists hold up signs at a Vancouver event. Aug. 11, 2010. (CTV)

BC Liberals mulled HST before election: documents

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CTV News Video

Correspondents on Liberals' pre-election HST talks
A stack of internal documents appears to show the BC Liberals have been less than forthcoming about the planning behind the HST.
Peter Grainger on HST's damage to Liberals
The HST has led to a loss of trust in the BC Liberals.
CTV News Extended: Vander Zalm on internal HST documents
Fight HST leader Bill Vander Zalm talks to Colleen Christie about internal documents showing that the BC Liberals were mulling the HST long before last year's election.
CTV News Extended: Pollster on HST's political impact
Angus Reid pollster Mario Canseco talks about how the implementation of the HST has affected the political fortunes of the BC Liberals.

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Documents obtained through an Access to Information request show that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) Documents obtained through an Access to Information request show that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) The B.C. Liberal government was discussing and studying the Harmonized Sales Tax five months before they actually told British Columbians about it, CTV News has learned Fight HST leader Bill Vander Zalm looks through internal government documents showing that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV) Anti-HST activists hold up signs at a Vancouver event. Aug. 11, 2010. (CTV)

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Documents obtained through an Access to Information request show that the BC Liberals were mulling a harmonized sales tax long before the May 2009 election. Sept. 1, 2010. (CTV)

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Date: Wed. Sep. 1 2010 10:04 PM ET

The B.C. Liberal government was discussing and studying the Harmonized Sales Tax five months before they actually told British Columbians about it.

Communication at B.C.'s Ministry of Finance obtained through an Access to Information request by a consortium of press gallery members shows that the B.C. government was already conducting cost-benefit analyses for consumers and businesses about the controversial tax long before its May 2009 election.

The emails, briefing notes and feasibility studies, dated between Jan. 1 and May 12, 2009, appear to contradict statements by Gordon Campbell who said the tax "wasn't on his radar" during election time.

"We were transparent, we were open, we told people what their assumptions were, we've been very clear when it comes to the HST," Campbell told reporters the day the B.C. legislature opened in August 2009.

The BC Liberal Party even told the Canadian Restaurant and Food Association in an email during the election that the HST wasn't even on the table, saying it had "no plans to formally engage the federal government in discussions about potential harmonization."

But multiple documents show the Liberal party spoke at length about the implementation of the controversial tax, including how it could potentially negatively affect the status of the party.

Briefing notes at a First Ministers' meeting in Ottawa on Jan. 16, 2009 -- five months before the election -- says the BC Liberals recognized the potential economic benefit of harmonizing with the GST, but that the party "continues to have concerns:"

"However, harmonization continues to present very real challenges including a loss of provincial tax policy flexibility, the real and perceived shift in tax burden from business to individuals, a lack of support from some business sectors, the need to protect low income individuals and families from tax increases, and the need to ensure adequate revenues."

A summary at the same meeting also shows a deep background and analysis of what the tax would mean for B.C. business if it was introduced.

"The issue of combining the provincial sales tax with the federal GST into a harmonized sales tax is often raised and supported by many businesses and business associations, including Chambers of Commerce. Some business sectors, such as the restaurant industry, strongly oppose it," it said.

Five days later, an official from the strategic and corporate policy division of B.C.'s Ministry of Finance sent an email about a new report on business tax from the Canada West Foundation.

The report, called "Business Taxation in Western Canada: Setting for a Personal Best" recommends cutting business taxes and harmonizing the provincial sales tax.

Emails in late January from the Federal Finance Minister's office to the B.C.'s Finance Minister's office discuss the upcoming federal budget and the hope that more provinces move towards harmonizing its sales tax.

From this point onward, the ministry started to produce additional briefing notes for Finance Minister Colin Hansen on the pros and cons of the HST.

One such briefing note, dated March 12, warns Hansen to prepare himself for questioning about the tax.

"There is a strong possibility that the B.C. government will be asked in the next couple of weeks about its position on harmonization."

On March 25, officials in the Finance Minister's office forwarded an email with a link to a media article considering the consumer backlash of HST in Ontario.

In one email an official asks if there is a possibility of being questioned about harmonized sales tax. Another official replied, saying "we have prepared a note for the minister on this."

The following day, when Ontario tabled its provincial budget, the Minister of Finance of Canada sent its memorandum of understanding between the federal and Ontario government to the B.C. Ministry of Finance so that B.C. would know how its HST will be implemented.

'It's disgusting': Vander Zalm

Former premier and head of the anti-HST campaign Bill Vander Zalm described the latest revelations as "disgusting" in an interview with CTV News.

"They've been telling us all along (HST discussions) didn't start until after the election. It's awful, it's terrible," he said. "At the very least, the premier and minister of finance should resign."

But he added that the news isn't exactly surprising.

"This information now is simply confirming what the public felt all along," he said. "The people have been conned. The people have been manipulated."

Popularity tanking

A public opinion poll released in July by Angus Reid Public Opinion showed the Liberals' popularity dropped dramatically after the implementation of the tax.

At the time, more than three-quarters of its 800 respondents said they were against the new tax.

Only a few weeks earlier, Bill Good questioned Campbell on the issue on his CKNW radio show, asking the premier if he misjudged the B.C. electorate when he introduced the HST.

He replied: "Well Bill, there's no question that this came out of the blue for everybody."

Mario Canseco of Angus Reid told CTV News on Wednesday that the drop in support for the Liberals has been drastic.

"From the moment the HST was discussed, support for the BC Liberals has gone down severely," he said.

"The only demographic group that is actively supporting the Liberals more than the NDP is people who live in households earning more than $100,000 per year."

Canseco said that the drop in approval rates isn't necessarily about the HST itself, but the way the tax was introduced.

"When we ask people if they're satisfied with the way this has been implemented, the way this was explained, three out of four B.C. voters will tell us that this was handled very badly," he said.

But he added that other scandals, like the controversial sale of BC Rail and the trials of former legislative aides Dave Basi and Bobby Virk, have also hurt the Liberals.

"There's been a lot of things that haven't been working for the government, and there's this sense that the government isn't telling us everything," Canseco said.

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Xaviola
said
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Say for example this act of lying and deceit was carried out by a CEO of a big Company - What do you think the shareholders would do, and how fast? Offering GC and the Finance Min to resign is being kind.....They should be held accountable, impoeached.!!!! A normal individual would be fired-what's so different here.....They're fooling around with our livelihood and probably laughing about it ....This just disgusts me......


Patrick
said
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I note that commenters have somehow tried to associate the federal liberal party with the bc liberals.bi note having been to bc liberal conventions that the bc liberals are heavily influenced by the federal conservatives. In fact it is well documented that the bc liberals were taken over by the old social credit party (which included Campbell and other former socreds like Claude Richmond for bc liberal minister) The federal liberals are in no way associated with the bc liberals infact, there are more federal liberals supporting the bcndp than the bc liberals if you look at elections bc political contributions on the elections bc website comparing to elections Canada. I an sick of people making such huge misstatements, I wonder if those who do are really working for parties trying to confuse people. On the issue of Campbell lying to british columbians.... Are we really that shocked. Another day another day closer to recalls. I am going to take time off of work to make sure they (bc liberals) are held to account.


teddyden
said
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so what - you still have more disposable income then you did 10 years ago. The economy is rolling once again. What do you want now. A backward step and higher taxes. Now there will be 75 or so seats coming vacant in 2013 so how many of you complainers are willing to put your names forward to run for office. You sure seem to know better than those elected. Give your heads a shake and get on with life.


Bruce
said
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How do Hansen and Campbell face their own friends and family? Their own caucus? Even Lyin Brian looks honest by comparison. Of course he was succeeded by another Campbell. We hope Gordo gets the same treatment as Kim.


Who Said That
said
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I'm not even upset about this...it just confirms what many British Columbians already suspected/ knew. For me it's not about the HST, but the continuous lies the Liberals spew out....crazy!! It's one thing after another with this guy, and then he hides and lets his MLA's take the heat. I'm not big on the NDP, but i can't handle Gordon's arrogance any longer.


conductor274
said
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Let's not confuse the so called BC Liberals with the federal Liberals. Campbell is not and has never been a Liberal. He's a Conservative who couldn't win an election as a Conservative back in 2001 so he ran as a Liberal. Compare his political policies and you'll see they parallel policies of the likes of Ralph Kline, Mike Harris, Stephen Harper, Brian Mulroney, to name a few. Campbell calling himself a Liberal was his original lie as premier of BC. And he's been lying ever since.


Ian
said
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The reason that the demographic group of earners of $100,000 support the tax is because generally people that earn this much are more savvy and intelligent which is why they earn this much.People want all the services, but do not want to pay for them.


Wayne Henderson
said
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There is something very wrong with a political system wherein the politicians feel they must tell lies to get elected.The HST debacle is just the last of a long string.


Mark5
said
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British Columbia, the banana republic of Canada. The politics in BC are ridiculous. Why can`t BC ever seem to get it together with politics? Gordon Campbell has practically destroyed BC and nobody can do anything about it. The citizens sit around watching how this ego maniac Campbell acts like he is the emperor or King.It seems like all the disenfranchised and disenchanted people of Canada have immigrated to BC and they don`t want the politics they left behind to once again take over their lives here. So there is an open playing field here for anyone who can offer something different in thew way of politics. However, these new players don`t seem to really have their act together. I often wonder if BC will ever get a decent political party to run the province.


BC Voter
said
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What Gordon Campbell and his Liberal Government went into cover-up of HST file; Olympic 2010 Costs file; BC Place Stadium file;, etc. to become the Premier of BC for Olympic 2010 and all the other construction of Bridges that he will have a legacy. It is a Campbell Legacy of Lies and Deceit. May the Campbell record for the last decade be marked with a ** so that everyone in the world will know that Gordon Campbell is the worst and most untrustful Premier in the history of British Columbia.Resign Premier Campbell Now!!Resign Finance Minister Colin Hansen Now!!Resign Complete Liberal Cabinet Now!!Resign Liberal Caucus and promise not to run for Public Office for Life in Briitish Columbia!!


Dorothy
said
0 0

Campbell and the Liberals will say anything to get elected or re-elected; doesn't matter if it's a lie. This is not just about the HST; it's about any and every issue that is considered by government, because they cannot be trusted to tell the truth EVER! They shouldn't have been re-elected last time and definitely should not be re-elected again.


Ron Gill
said
0 0

It looks like by fluke the Liberal Party was resurreceted by one Gordo and masscred by another Gordo. Folks that is not the case. It is all in the cards.The game is played by the people who have the real power nemely the rich folks. So relax. Nothing is going to happen. Samething will continue. You will be excatly as you are.


Rob
said
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If you follow the story it's more about the fed gov pushing the HST. The Provincial gov was just the messanger.


Dan
said
0 0

Now I know why Iggy held is Liberal meeting in the east coast. He need to distance himself from the BC Liberals. Man, considering Iggy is out today talking about how transparent the Liberals are. He must have been talking the Big red Ontario tent and not the back room Red tent out west. Dang!


louis
said
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The lies just keep getting better and better.Put Gordo and Hanson under oath, then put them in jail for fraud.


SVCR
said
0 0

I new it!!!Throw them in jail, bread and water and all the paperwork their lies are on placed by the toilet.Their own special TP!!!!!!!!!!!!!!


No1special
said
0 0

Well well now what can one say one should never tell lies .. how can we believe anything that this government, says or does..Out with them ...OUT WITH THEM Now


cherylb
said
0 0

Both Campbell and Hansen need to resign. They are both liars and should actually be in jail. Never in my life have I seen anything that even comes close to this kind of behaviour from elected officials in this country.


Jim-Surrey
said
0 0

There we go proof in writing that all Gordo does is lie to us!!!!RECALL NOW to hell with November, this guy has to go as he won't do the descent thing like stepping down!ENOUGH LIES GET HIM OUT OF HERE!


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