Selinger called tax-hike suggestion 'total nonsense' in 2011 campaign

Jeef Keele has reactions to the provincial government’s PST increase, which contradicts a promise made in the 2011 campaign.

At a 2011 election campaign debate, Manitoba Premier Greg Selinger refuted opposition claims that the NDP planned to raise the provincial sales tax to nine per cent.

“Ridiculous ideas that we’re going to raise the sales tax. That’s total nonsense. Everybody knows that,” said Selinger following the September 2011 debate.

Now, the Selinger government has introduced an increase, with the PST slated to rise to eight per cent this summer. Selinger said things have changed between then and now. He said Manitoba is still facing uncertain economic times and billions in flood costs.

Not everyone is buying that answer.

Marilyn Reid lives on disability and welfare. She said she can’t afford to pay more PST.

“I’m not even living (with) bare necessities right now. I eat out of a food bank, so it’s very, very hurtful,” she said.

The province introduced a new law Wednesday raising the PST to eight per cent, up from the current seven, starting on July 1.

It’s estimated that will cost the average family an extra $300 per year.

The premier said the extra money is needed to pay for flood costs and infrastructure.

“The future of Manitoba will be much brighter if we invest in infrastructure,” Selinger told the legislature Wednesday.

The new law drew harsh criticism from the opposition who accused Selinger of breaking an election promise to not raise taxes, specifically the PST.

“He has not only broken his word. He’s put the price of his integrity at one per cent,” said PC Party of Manitoba Leader Brian Pallister during question period on Wednesday.

Outside of question period, Pallister said he would repeal the PST hike if he is elected premier.

“Absolutely…because it’s fundamentally unnecessary to raise the PST,” said Pallister.

The premier said that would result in cuts to healthcare and education.

He said the new law mandates the province must report where every dollar from the tax hike is going.

“We’ll demonstrate what roads are built. We’ll indicate what personal care homes are put in place, which hospitals are improved, which schools are improved,” said Selinger.

Shopper Shelly Brown said if that’s the case, she’s OK with the tax increase.

“When you think of what they need the money for, they have to get it from somewhere,” said Brown.

But, the law also allows the Selinger government to avoid a referendum on the tax hike.

Marilyn Reid calls that undemocratic.

“We need to stand up and protest. Now this is getting to be way too much,” said Reid.

The premier also announced the new law and PST hike will help fund $3.5 billion worth of infrastructure over the next decade.

While the new law sidesteps the need for a referendum, Manitobans will be able to weigh in through a different forum. Before any new law can be passed, a public hearing must be held.

The premier is promising that anyone who wants to be heard can come down to it. A date for the public hearing has not yet been set.

- with a report from Jeff Keele