Rona Ambrose questions raising HST in New Brunswick budget

Federal interim Conservative Leader Rona Ambrose is questioning the New Brunswick government's decision to raise the HST to 15 per cent.

Ambrose said on Monday during a visit to Prince Edward Islandthat high tax rates are not a recipe for growth.

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The interim Conservative leader is also speaking inMonctonon Tuesday.

New Brunswick Finance Minister Roger Melanson released the Liberal government's second budget last week, which included a mix of spending cuts and tax increases.

The provincial government is increasing the HST by two percentage points on July 1. The tax hike will raise an estimated $300 million for the province, which is still facing a $347-million deficit.

Former prime minister Stephen Harper's Conservative government, which Ambrose served in as a cabinet minister,cut the GST by two percentage points in 2006.

After the federal rate fell, provinces have looked to regain that tax room.

Nova Scotia increased the HST to 15 per cent in 2010.

Nova Scotia Premier Stephen McNeil has recently called for a unified HST rate for Atlantic Canada.

However,Prince Edward Island's finance minister said this week thatno decision has been made onwhether the Island government will also raise its HST to 15 percent from 14 per cent.

The Newfoundland and Labrador government had planned to increase theHST to 15 per cent, from13 per cent.

But Newfoundland and Labrador Premier Dwight Ball had the federal government cancel theplanned HST increase, which had been announced by the former Progressive Conservative government, in December.