Premier Gordon Campbell is ruling out an HST break for first nations in B.C., saying an Ontario-style deal is not in the works.
Instead Mr. Campbell said Tuesday that the province's first nations will benefit along with everyone else from a boost in jobs linked to the 12-per-cent tax.
“First Nations will be treated in British Columbia as they always have been treated in British Columbia,” he told reporters following an unreleated event at the University of British Columbia.
“We have a different tax regime than they do in Ontario.
“What's important is first nations people want jobs. First nations people want investment. They recognize that whether it's the forest industry or the mining industry, there are huge opportunities for first nations across the province and this is one of the things that the HST helps us move forward with.”
The Union of B.C. Indian Chiefs has said their members want the same harmonized sales tax exemption that their counterparts in Ontario are set to receive. HST regimes are set to begin on July 1 in both provinces. The Ontario government will give first nations a point-of-sale exemption on the provincial portion of the HST.
Grand Chief Stewart Philip of the chiefs' union said in an interview that Mr. Campbell's statements were premature pending a Thursday meeting on the issue with Finance Minister Colin Hansen. His organization is also considering legal options.
His argument revolves around the view that first nations are sovereign nations not to be taxed by other nations.
He also noted many first nations people live off reserve in poverty so are vulnerable to extra costs associated with the HST.
Also Tuesday, federal Liberal Leader Michael Ignatieff weighed in on the HST furor during a visit to Vancouver.
He said Liberals have believed for 20 years that harmonized sales tax agreements between provinces and Ottawa can create jobs and lead to growth.
“What's happened here in British Columbia is something that any politician worth his salt has to listen to, which is deep discontent with the way the harmonized sales tax was introduced,” Mr. Ignatieff said, referring to a mass petition against the tax.
He said he is supportive of measures by the federal government to work with the province to mitigate the impacts of an HST on the most vulnerable.
“If [the provincial government came] to me as prime minister, and said, ‘We've got to do something to mitigate its impact,' of course, as a responsible prime minister who wants to unite the country, I would listen with consideration and if we could provide some help to make that possible, we would do so,” he said.
Mr. Ignatieff defined mitigation as softening the impact of the tax on the most vulnerable citizens of B.C. and sectors of the provincial economy.
