Alward needs 'loud message' to hike HST

Premier David Alward wouldnot rule out a Harmonized Sales Tax increase as a way to cope with the massive deficit his Progressive Conservative government inherited if he heard a "very loud message" from the public.

The Tory government has estimated the deficit could hit $820 million in 2010-11 and it has warned the deficit could top $1 billion in the upcoming budget if urgent action isn't taken in this year's budget.

Alward has remained steadfast against raising the HST for months, even promising in the fall election campaign that he would not hike the consumption tax.

However, Alward told reporters in Quispamsis on Wednesday that he could change his mind if the public backed the idea.

"If the people of New Brunswick have a very loud message to say it should be increased, I would never say no but I have no indication that that's the way it is,'' he told reporters.

Despite his comments, his office said on Thursday, his HST policy has not changed.

Alward was quick to distance his government from Finance Minister Blaine Higgs's comments in November that the Tory government might raise the tax if it "exhausted all other options."

The premier said on Nov. 5 the province would emerge through the difficult financial times that "will not include a raise to the HST."

The Alward government was left a significant deficit when it took power in October.

'I don't think anybody would hold a government to a promise, which becomes completely unrealistic in light of new, unanticipated circumstances' Tom Bateman, political scientist

Opposition Leader Victor Boudreau said he has not witnessed an outpouring of support for increasing the HST during any of the pre-budget meetings that he has attended.

"It certainly is not a groundswell of support but I think he is trying to create this impression that it is needed," Boudreau said.

"I would argue that there are other things that they could be doing."

A New Brunswick political analyst said the Alward government could break the promise without paying a political cost.

Tom Bateman, a political scientist at St. Thomas University, said the premier's comments revising his promise on the HST may suggest that his party has learned new information since coming into office.

"I don't think anybody would hold a government to a promise, which becomes completely unrealistic in light of new, unanticipated circumstances," Bateman said.

The political scientist said he would like Alward to explain what sort of "very loud message" would be needed to change the party's policy on raising the HST.

Pre-budget tour

Higgs is undertaking the annual pre-budget consultation tour where he is asking citizens what they'd like to see trimmed from the budget.

Many organizations have showed up at the meetings denouncing proposed cuts.

Higgs announced last week he has approved roughly $43 million worth of budget cuts as a way to wrestle down the deficit.

The Nova Scotia government raised the HST in 2010 as it launched its own four-year deficit-fighting plan.

In New Brunswick, a one per cent increase to the consumption tax would reap an additional $125 million in revenue.

Many business organizations have stated publicly that the provincial government should increase the HST.

John Thompson, the chief executive officer of Enterprise Greater Moncton, said this week the government should consider increasing the HST on luxury items.

David Ganong, the chairman of St. Stephen-based Ganong Bros. Ltd., who helped organize the Future N.B. conference in December, joined a high-profile group of New Brunswickers who are trying to convince Alward to raise the HST.