P.E.I. Opposition says premier reneged on HST promise

The Opposition accused P.E.I.'s premier of "going back" on what it says is a promise the premier made during the 2015 provincial election not to increase taxes.

To back up its claim, the Opposition is pointing to a questionnaire sent to party leaders by the Canadian Federation of Independent Business during the provincial campaign.

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On the questionnaire, the leaders of the Progressive Conservative Party, the Liberal Party and the NDP were asked "Over the next four years, will your government raise, lower, or maintain the status quo on taxes, fees, and levies?"

The response under Wade MacLauchlan's name reads: "The Liberal Party is committed to fiscal prudence. One of the key principles of fiscal prudence is respecting taxpayers. There are no plans to raise taxes, fees and levies."

"During the election, Premier, you did promise Islanders you were not going to raise taxes or fees or levies," charged Opposition finance critic Darlene Compton during Question Period Wednesday. "How could you go back on that? Was that just a campaign promise?"

Mr. Speaker, it is not the case that I promised that we would not raise taxes. We promised that we would live to a fiscal plan that was prudent, and that we would live within our means, and that we would balance our revenues and expenditures, and that's exactly what we are doing. Premier Wade MacLauchlan

"Mr. Speaker, it is not the case that I promised that we would not raise taxes," MacLauchlan responded. "We promised that we would live to a fiscal plan that was prudent, and that we would live within our means, and that we would balance our revenues and expenditures, and that's exactly what we are doing."

On Tuesday, the MacLauchlan government announced a one percentage point increase in the provincial HST will come into effect Oct. 1. Finance Minister Allen Roach said the economic slowdown had affected provincial revenues, and the province had to either increase the tax or make cuts to vital services like health and education.

His answers today weren't truthful to the House based on the documents we have from the CFIB. I don't know how to say that any other way. PC MLA Stephen Myers

Speaking to reporters after Question Period Wednesday, MacLauchlan confirmed he had in fact stated during the 2015 election campaign his party had no plan to increase taxes. But since that time, he said plans have changed.

"Yes of course [the plan changed]. We've been in office for a year, and as I indicated in the House today, we indicated to Finance Minister Morneau just before the end of March that we would be increasing the provincial portion of the HST. So indeed that has been the result of our budget-making deliberations and consultation with Islanders over the course of the past month."

Immediately following Question Period, the Opposition asked Speaker Buck Watts to rule whether the premier had misled the House.

"His answers today weren't truthful to the House based on the documents we have from the CFIB," said PC MLA Stephen Myers. "I don't know how to say that any other way."

The Speaker said he would take the issue under advisement.