HST Hearings

New Democrat MP's were on the attack yesterday over the Harper's government's plans to allow Ontario and B-C to move towards a harmonized sales tax.

Thunder Bay-Rainy River's John Rafferty told the house one of the biggest impacts will be on gasoline purchases.

"For most people in northern Ontario, HST is simply a new gas tax," said Rafferty. "In Parry Sound today, gas without HST is 98.9¢ a litre, with HST, $1.07 a litre; in Sioux Lookout it is $1.05 without HST and $1.14 with HST; in New Liskeard it is $1.04 without HST and $1.13 with HST."

Rafferty was also critical of the Liberals for supporting the Conservative in what he calls a new gas tax for northerner.

Meantime, public hearings began today at the Ontario legislature into the Liberal government's plan to merge the eight per cent sales tax with the five per cent goods and services tax.

The Opposition lined up a wide range of groups to testify at the start of the committee hearings, while the government says proponents of the harmonized sales tax will appear later in the day.

Groups as diverse as condo owners, police pensioners, home care operators and the Canadian Taxpayers' Federation say the HST will drive up costs on items exempt from the provincial sales tax.

The government says it is also cutting personal and corporate taxes, and offering rebate cheques in the first year to offset the impact of the HST, which comes into effect next July.