Premier Gordon Campbell extended an olive branch yesterday to industry leaders left fuming over the incoming Harmonized Sales Tax.
"We know that this is going to be difficult for some sectors of the economy," said Campbell, after touring the Pitt River Bridge with Prime Minister Stephen Harper. "We want to work with those sectors to make sure that it works."
Selling the new tax scheme as a long-term net positive for the provincial economy to opponents, who claim service sectors along with B.C.'s poorest citizens will be hit hardest by the tax, could be a long and arduous task for the premier.
"When people understand the importance of being competitive and creating an environment for investment they will understand the wisdom behind moving to an HST," he said.
According to the premier, the construction industry stands to save $880 million, the forestry sector should save $140 million and the mining industry should have savings of $80 million, when the HST is implemented July 1, 2010.
"As a small open trading economy we have to be more competitive, more productive, if we're going to secure jobs and we're going to continue to watch wages improve," he said.
Prime Minister Harper backed Campbell's economic claims to a degree.
"There's been a number of studies by credible groups over the years suggesting that harmonization of sales taxes would have advantages for various provincial economies," Harper said.
Dharm Makwana reports for Vancouver 24 hours
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