TAXATION

Mr. Peter Tabuns: My question is to the Acting Premier. Your government told cities and towns across the province not to worry about the harmonized sales tax. It won't affect municipal budgets. The HST is supposed to be revenue-neutral for municipalities. Why does Sudbury expect the HST to cost the city $450,000 every year?

Hon. Dwight Duncan: To the Minister of Revenue.

Hon. John Wilkinson: I appreciate the question. I've had an opportunity to meet with municipal leaders right across this province. I, first of all, want to thank the Minister of Finance, who set the reimbursement rate on the provincial portion of the HST at 78%. That is leading the country when it comes to support by a province to its municipal partners, and I want to thank him for that.

In regard to the question, specifically, I have had an opportunity to meet with many clerks and treasurers from across the municipal sector getting into the details of how they can ensure that their municipality is held whole. As the minister has said, the 78% reimbursement is for the broad municipal sector, as we have for many others in the MUSH sector.

I'd be more than happy to help the good people of Sudbury take a look at how they are applying this rule and the assumptions they are making. As I have done that, municipalities increasingly have come to the conclusion that they're actually in a slightly better position-

The Speaker (Hon. Steve Peters): Thank you. Supplementary?

Mr. Peter Tabuns: Minister, not only are our cities and towns left paying more; people who use municipal services will pay more too. In Sudbury, a three-month swimming pool pass will jump by $6; ice time in Windsor going up $11; renting a baseball diamond in Wiarton is going up nearly $20.

How can the Liberals claim that the HST won't affect municipalities when it's going to cost towns, cities and the people who rely on these services hundreds of thousands of dollars more every year?

Hon. John Wilkinson: As I have mentioned, as we have been dealing with municipalities-for example, the city of Peterborough finds that they will be $600,000 ahead.

Here is what municipalities and their constituents, who are our constituents, have said: "We need more people working in the province of Ontario." On this side of the House, we have a plan that will see 591,000 more people working in this province. On that side of the House, their advice to us is, "Do nothing." We reject that.

On this side of the House, we have a plan that will see some $47 billion worth of more investments into our municipalities. On that side of the House, they say, "Do nothing." We reject that advice.

We have dealt with municipalities. They appreciate the support, and they understand that for us to be able to support our municipalities, we need people working. That's exactly why we are reforming-

The Speaker (Hon. Steve Peters): Thank you.