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HST in B.C.

VICTORIA: Premier Gordon Campbell says the resignation of his energy minister was surprising and significant, but not enough to shift the government away from its harmonized sales tax.

Blair Lekstrom stepped down Friday, saying he could not support the impending tax.

And Campbell could not rule out that others in the Liberal caucus may yet leave the party over the HST, which will be implemented on July 1.

``I've always tried to have a caucus and a government where people felt comfortable and have folks say what they believe,'' Campbell told reporters after his office announced Lekstrom's departure.

``I respect Blair's decision. It in no way undermines the initiative we undertook.

``We had to do what was right, not what was popular.''

He said he believes the foundations of his cabinet and caucus remain strong, but there are rumblings that Lekstrom could be just the beginning.

Insiders say many Liberals are feeling mounting pressure from constituents upset about the tax, which combines the federal Goods and Services tax with the provincial sales tax into one 12-per cent levy. Hundreds of thousands of voters have signed a petition to repeal the HST legislation.

``I'm in the` anything can happen' category,'' said one Liberal insider. ``This is huge.''

The insider said Liberals are struggling with the HST because it has created a major public backlash.

``It's pretty hard to come to work when you hear that more people in your constituency have signed the HST petition than voted in the last election,'' they said.

The repeal-HST petition, led by former B.C. premier Bill Vander Zalm, has already reached its goal of signing up 10 per cent of registered voters in each of British Columbia's 85 ridings.

If the petition is successful, the Liberals have the option of a repeal law or a referendum by September 2011.

Lekstrom, the MLA for Peace River-South, said he couldn't continue within the party when his constituents clearly wanted him to ``put the brakes on the HST.''

He said he has never seen the kind of reaction from the public that he's seen with this tax and the Liberals need to step back and have a dialogue with residents.

Lekstrom admitted he voted in favour of the tax when it first came up in caucus last July and again in the legislature.

``Had I known what I know today about the HST, and some of the ramifications... I wouldn't have made the same decision,'' he said, noting the auto sales industry and border communities like his home town of Dawson Creek, B.C., in particular.

Yet he lauded the premier (``He's worked as hard any anyone I know to make our province a better place'') and didn't rule out a return to the party fold, even voting for the tax in the future.

``If the playing field was level across the province on the implementation of this tax, yes I could support it but in saying that, I would support it only after I go out and have a good frank dialogue with British Columbians. And at the end of the day, if they say look it's not the way they want to go, then I'm elected to listen to the people as well.''

Lekstrom has a reputation as a free-thinker, having voted against the government on sections of a contentious labour law and opposed the government's decision to cover a series of murals at the legislature that aboriginals called demeaning.

His departure is effective immediately. Bill Bennett has been named the new energy minister.

Opposition New Democrat Leader Carole James congratulated Lekstrom for leaving and urged other Liberals to do the same but Liberal caucus chairman Ron Cantelon said the caucus supports the move to the HST despite the public backlash.

``We're 100 per cent behind this. This is the right thing to do,'' he said. ``It's very, very difficult, but it's the right thing to do.''

The federal government offered B.C. $1.6 billion to switch to the HST. Ontario has also embraced the harmonized tax, which will take effect in that province July 1 as well.

Federal NDP Leader Jack Layton predicted the outrage in B.C. will spread.

``There's no question that the courageous, grassroots battle that's on the going British Columbia is gradually waking people up here in Ontario,'' Layton told Kamloops radio station CHNL.

Layton blamed Prime Minister Stephen Harper for the HST, and suggested the change goes against the Conservative government's promise not to raise taxes.

But so far, the debate in Ontario has been a flicker compared to the firestorm the tax has sparked in B.C.

Opposition parties have been the most vocal opponents in Ontario, but in B.C. the public has been effectively rallied by the repeal campaign headed by Vander Zalm.

The former premier said Lekstrom's resignation should be a wake-up call for Campbell.

``I'm hoping there might be others who might consider how their constituents feel about what it is they're involved with and I'm hoping that the premier is watching all of this and he's listening and he'll end the HST,'' he said. ``That's where the people are at.''

Lekstrom, who was first elected in 2001 in Peace River South, won the last election with 4,514 votes, 62 per cent of the eligible voters in the northeastern B.C. riding. Anti-HST proponents say 4,985 area residents have signed their petition.

The Liberals faced an earlier public outcry when they implemented a carbon tax.

 

 

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