Tuesday, August 30, 2011

HST Sober Second Thoughts: Snatch Victory from Defeat




The recent referendum vote to abandon the HST tax and revert to the old GST+PST is viewed by many as a defeat for the liberal party in British Columbia.

My view is that it was a temper tantrum in response to a botched implementation, fanned by a former politician well past his "best before date". They succeeded in blurring the distinction between the mode of decision and implementation and the validity of the policy itself. The tantrum is over. The liberals can be contrite about the implementation and still take the opportunity to snatch victory from defeat. Here is a blunt blueprint that would require considerable massaging by political spinmasters.

Call an immediate fall provincial election.

Declare that the liberal party has paused and had sober second thoughts and that it is time for voters to also pause for sober second thoughts.
It is time to either move forward with the liberals or move backward with the NDP and that it is decision time.

Campaign on the issue of good government, fiscal responsibility, reliance on knowledgeable experts, and continuation with the HST. Perhaps make some minor adjustments but keep the framework and avoid the costly disruption of a revert to the PST.

Declare firmly that if the electorate is serious about following Adrian Dix and the NDP [as inspired by Bill Vander Zalm] as they march pig headedly back to the past then so be it, but that the liberals are not prepared to lead in that direction.

Yes there is some risk that the NDP would win, with predictable results. Perhaps that is what the electorate deserves.

The failed recall initiatives are probably a better indicator of genuine political sentiment than is the toxic HST referendum campaign.

The odds are with a party that is clear that it will not lead in a wrong direction on tax policies that are detrimental to provincial finances in the long run.

If the liberals cannot do a better job than they did in garnering support for their position on the HST referendum then indeed they do not have the leadership which this province deserves. In that case we are in a dismal position with no genuine leadership in sight. The NDP under Adrian Dix simply used the HST referendum as advance campaigning for the party.

Notice that Adrian Dix did not initially condemn the HST but waited until he saw the way the wind was blowing. He will be hard pressed to give a rational for the mix of irrational exemptions that were present in the old PST. He will be vulnerable in disregarding the views of economists.

I feel confident that there are enough supporters in the NDP party with enough financial competence to know that the HST is a better tax system. Their heart will not be in a campaign focused on returning to the PST.

In addition there are enough moderate voters who can recognize good professional level economic advice, and a degree of sober leadership.

If the liberals call the bluff of the NDP and call a snap election, it will indeed be interesting times in BC.

This is a no lose blueprint for the liberals.
If they "lose" a snap election they will avoid governing in period of financial difficulty that will be impossible for the NDP to carry off successfully.
If they "win" the election they will have succeeded in bringing a majority of the electors face to face with the realities of the financial situation which the province now faces.