QUESTION PERIOD — Finance
Temporary Tax Measures
December 3, 2024
Senator Gold, regarding the tax holiday of Bill C-78, as you are aware, the Atlantic premiers have indicated that they are going to have a major deficit in the budget that is unanticipated. Is it the intention of the government to reimburse them? The Premier of Prince Edward Island, Premier King, has indicated that the cost to the P.E.I. budget will be $14 million. Will the government reimburse that?
Thank you for your question. As I have answered to a similar question previously, I have every confidence that the government will work with the leadership of the provinces in Atlantic Canada to make sure that the implementation of this act — assuming that it passes, as I hope it does — will land fairly on those provinces that have different ways of collecting the tax. I am not in a position to make any announcements, but I know that this government will be working in good faith with the provinces to make sure they are treated fairly.
It puts senators from Atlantic Canada in a precarious position. We are asked to vote for legislation where the government may or may not reimburse the provincial government. So, we’re not only robbing Peter to pay Paul; we’re robbing Peter and we’re robbing Paul. The taxpayers of Prince Edward Island will have to make up the $14 million. It’s a tax holiday now to be paid later. How is that fair?
Can you not give us a confirmation that the government will reimburse us for what we are losing?
Thank you for your good representation of your province and the others, but, again, I have confidence that the government is working in good faith with its counterparts in your province and in others, and I hope — certainly by the time this issue comes to a vote and perhaps even while it is being studied at committee — that answers will be forthcoming. I do not have an answer at this juncture, as I have tried to be clear with you.
