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June 12, 2010
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Drastic decision
HST leads to Lekstrom s resignation
Gordon Hoekstra and Sarah Makowsky Citizen staff
Energy Minister Blair Lekstrom resigned suddenly Friday from his cabinet post and left caucus over the Harmonized Sales Tax, citing a need to listen to his constituents, thousands of whom have signed an anti-HST initiative.
While Lekstrom has taken an opposing view to his B.C. Liberal government in the past, there was no hint that he was considering such a drastic move.
More than 4,900 of Lekstrom’s Peace River South constituents have signed a petition to repeal the HST, more than the number of votes Lekstrom gathered in the last provincial election.
Northern B.C. anti-HST campaigner Mike Summers called Lekstrom’s resignation a victory.
Summers, who lives in Vanderhoof, said he wasn’t certain HST opposition was the solitary reason Lekstrom stepped down, but believes it was the “final straw.”
Summers said he believed that Lekstrom was interested in saving his skin.
“I would suggest to the remaining Liberals that they abandon this HST thing right now. Just get rid of it,” added Summers.
Organizers have said they have already collected enough signatures - 10 per cent in each of the province’s 85 ridings - for a successful initiative petition. The government can consider a policy change or send the change to referendum if a petition is successful.
The anti-HST organizers have threatened to launch recalls of sitting Liberal MLAs, if the government does not act on the petition, which must first be checked by Elections B.C.
In a conference call with reporters from his riding home of Dawson Creek, Lekstrom noted that he carried a copy of the province’s recall legislation with him, but he made his decision because his constituents were unhappy with the HST. Lekstrom also noted that he
LEKSTROM
has increasing concerns over the impact of the HST on border communities, like those in his northeast B.C. riding. Alberta has not adopted the HST and has no provincial sales tax.
Lekstrom has called for a halt to the legislation and a more comprehensive discussion with the public over changing taxation. “We clearly forgot to bring the public along,” he told reporters.
The B.C. Liberal government said it is not stepping back from the HST in the wake of Lek-strom’s resignation.
Lekstrom’s northern colleague, B.C. Forests Minister Pat Bell, said he was disappointed by the resignation. “I think it’s an error,” said
FACTbox
— The 12 per cent harmonized sales tax -which will come into effect July 1 - will replace the federal five per cent GST and the provincial seven per cent sales tax.
— The change will mean consumers will pay the provincial seven per cent portion of the HST on some new items including meals, airline tickets, funerals, haircuts and new homes over $400,000.
— There are some exemptions on the provincial portion of the tax including gasoline, children’s clothing and diapers. As well, items that are currently GST exempt, such as basic groceries, will not be subject to the HST.
— The B.C. Liberal government says introducing the HST is the single biggest action the government can take to boost the ailing economy. The Liberals say the savings from the HST to the business sector - including the forestry, mining, and oil and gas sectors -is estimated at $2 billion which will be reinvested in the economy and passed on to consumers.
— Opponents say the HST is a huge tax burden shift onto the backs of workers, professionals, students, businesses, and the elderly.
Bell, the MLA for Prince George-Mackenzie, where more than 7,400 people have signed the petition.
Although the HST is a difficult decision, it’s the right one, stressed Bell, who believes a better discussion needs to take place with the public on the merits of the tax change.
He pointed out that’s been difficult to do so during the petition because there are rules around campaigning. The 90-day petition period ends in early July.
— Turn to ‘JAMES,’ on page 3
Cancer centre providing work for local companies
Bernice Trick Citizen staff
No fewer than a dozen Prince George and northern B.C. companies have been hired to work on the construction of the BC Cancer Agency Centre for the North.
At the peak of construction, which begins this summer, there will be 160 workers onsite daily - the majority being from northern B.C., Shirley Bond, MLA for Prince George-Valemount said in a project report.
Along with the health benefits to come, the construction phase is also providing economic benefits for Prince George families through the hiring of local labour, Bond said, adding,
“Every job counts and makes difference in these difficult economic times.”
To date, Prince George companies hired as part of the design and construction team are L&M Engineering, IDL Projects, KVS Concrete Finishing, Inland Concrete, IRL Signs and Graphic Design, Houle Electric, Allnorth Consultants, GeoNorth Engineering, Jay Lazzarin Landscape Architect, Equity Plumbing & Heating, Northern Industrial Sales and McElhanney Consulting Services.
Local trades, like carpenters, will be brought on through either sub-contract or direct employment by PCL Constructors Westcoast Inc, one of the three teams making up the Plenary Health consortium which will design, build, finance and maintain the BC Cancer Agency
The BC Cancer Agency Centre for the North, expected to open in September of 2012, is shown, in concept, above. Construction of the facility is proving to be beneficial to local companies.
Centre for the North for 30 years.
It’s expected the long-time partnership with Plenary Health will save tax payers about $4.9 million (6.3 per cent) over the 30-year term through financing, energy efficiency and construction and cost certainty of delivering the centre on time and on budget. The final capital cost of the 5,000-square-meter (about 16,000 square feet) centre, is pegged at $69.9 million and will provide full cancer care and treatment services, including radiation and chemotherapy treatment.
Other capital costs to support the centre, including renovations to UHNBC, radiation and
diagnostic equipment and infrastructure expansion for cancer care services throughout the North are budgeted at $35.9 million. This includes a capital contribution from Fraser-Fort George Regional Hospital District towards renovations at UHNBC. The total project capital cost of the cancer control strategy is $105.8 million.
The centre, expected to be completed in September, 2012, will feature two radiation units, a computerized CT simulator, an eight-seat chemotherapy unit, pharmacy and general outpatient clinics.
btrick@pgcitizen.ca
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