Number 3 of Top 11 of 2011

VANCOUVER (NEWS1130) – BC’s controversial Harmonized Sales Tax continued to make headlines in 2011.  It was the 12 per cent levy that lead to the resignation of former Premier Gordon Campbell, and the HST continued to haunt the BC Liberals under Christy Clark.

In April, Premier Clark announced a province-wide initiative to listen to suggestions on how to fix the HST.  In May, Finance Minister Kevin Falcon said that if BC voted to keep the tax, the rate would drop by one per cent the following year.

In June and July British Columbians had their say in a province-wide referendum.  The results were announced at the Legislature in Victoria on August 26th.  The “Yes” side got 55 per cent while the “No” side received 45 per cent of the vote.

Former Social Credit premier Bill Vander Zalm called it a victory for democracy.  “It sent a message to politicians throughout our country that they can’t simply do things because it’s the will of a premier or the party.  They have to, in fact, consult the people.”

Falcon admitted his government was to blame for the results.  “You can’t be evasive about this.  The buck stops with us.  We’re responsible and I don’t want to point fingers and try to defray responsibility.  We accept the responsibility.” 

He added the province will restore the old PST by March of 2013, but until then the HST will remain in place.

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