Forest minister says HST great news for those in the woods
Export industries like forestry will be among those benefiting most from the HST, according to Forest Minister Pat Bell.
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A rising tide lifts all boats.
That was the message Forest Minister Pat Bell relayed to the Cowichan
Lake District Chamber of Commerce Oct. 21 to justify implementation of the harmonized sales tax, which takes effect July 1.
He said the HST favours B.C.’s core export industries — forestry, mining, energy, even the film industry — which if healthy help prop up other industries.
“So what makes HST so important to our export industries?” Bell asked.
He said the forest industry, for example, pays $200 per thousand board feet, of which seven per cent is an imbedded sales tax.
With the HST, that seven per cent imbedded tax would be eliminated.
“I call it the shackle around the neck of the industry,” said Bell. “That could mean the loss of a shift at a mill, which means lost jobs. We’re in an economy that’s based on our exports. I don’t want a mill to close in B.C., so whatever I can do to help that, than I will.”
Bell said that of 39 jurisdictions in the world that have value-added taxes, 29 don’t impose those taxes on their export industries.
“If the primary businesses are healthy, so are all the other businesses,” said Bell.
“As a restaurant owner, when those industries don’t do well, then I don’t do well. We’re in an economy that’s based on our exports.”
Bells said small businesses will benefit in the future when taxes are eliminated in a few years on the first $400,000 in profits.
As for the axing of Tourism BC, Bell said the government’s commitment to tourism is still there.
“Let’s be clear, we are committed to tourism in B.C.,” he said. “That’s an important part of our economy.”
A recent analysis done on the impact of the HST by the council of Tourism Associations says as many as 5,000 jobs in the industry would be lost and up to $545 million in visitor spending would be lost per year. Much of the Cowichan Lake area’s economy is currently based on tourism.
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