I was watching the 11 PM CTV news on Saturday September 18 and got a certain satisfaction as well as a chuckle from their report on the anti-HST campaign where the CTV Vancouver news department, for the first time by any mainstream media, began to ask people about the $1.6 Billion that the federal government paid to the BC government to enact the HST and that would return to federal government coffers if the HST were to be repealed.

The people they interviewed on camera both felt that it was better to keep the HST than to return the $1.6 Billion to the federal government. The report also cited emails from people who had signed the anti-HST petition asking how they could get their name off the petition now that they were aware of the $1.6 Billion consequence of repealing the HST.

Of course the organizers of the anti-HST, are trying to obscure the reality of the $1.6 Billion dollar cost by speaking of negotiating with the federal government even though there is nothing to negotiate as the purpose of the payments to BC were specifically for the purpose of inducing the BC government to implement the HST.

The first payment was tied to the introduction of the HST legislation, the second was tied to the day the HST came into effect and the final $475 million is payable on the first anniversary of the HST becoming law.

Clearly the federal government made the $1.6 Billion payments to the BC government for the enactment of the HST and is entitled to a refund if BC violates the agreement by repealing the HST; the same contract law that applies to individuals and corporations applies to governments as well.

There is no need for the federal government to negotiate if the HST is repealed in BC. If BC reneges on its HST agreement with the federal government they can reclaim, would be entitled to reclaim, any monies due them by the simple expedient of reducing transfer payments to BC by the amount they are owed.

Since the federal government makes transfer payments for healthcare and education exceeding the $1.6 Billion level they don’t need to ask the BC government for repayment, they can simply deduct any monies due the federal government for repeal of the HST from the transfer payments.

That is the reality of the consequences of repealing the HST and no matter how Mr. Vander Zalm, Carole James, the NDP and the anti-HST campaign wiggle or obfuscate this will remain the reality.

Which one hopes will leave Carole James and the NDP to explain how it is that they propose to increase spending on education and healthcare at the same time they are advocating, championing, cutting the $ 1.6 Billion in federal HST funds out of the BC budget.

And Mr. Vander Zalm et al to explain why it was they failed to address this major consequence of repealing the HST as part of their anti-HST campaign.