Deal with natives on Ontario HST imminent

SAULT STE.MARIE, Ont. – There appears to have been a breakthrough moment in 11th-hour talks between senior government officials and Ontario First Nations over implementation of the controversial Harmonized Sales Tax set to come into effect next month.

Aboriginals in Ontario have not had to pay provincial sales tax when making purchases anywhere in the province for 30 years, but that would change under federal plans for collecting on the new HST tax, which merges both the provincial sales tax and Ottawa’s Goods and Services Tax (GST). Government and First Nations representatives met for the fourth time in 10 days Wednesday, in Ottawa, and sources close to the talks are saying its “almost a done deal,” with only language and wording holding back an announcement.

The Chiefs of Ontario, representing Ontario’s 133 First Nations, stated in a bulletin Wednesday that talks were ongoing and they were anticipating an announcement Friday at the latest.

“Following weekend meetings between federal and provincial officials, it is clear there has been significant and positive progress, however, several details need to be worked out,” stated the bulletin. The Globe and Mail reports the federal government is set to give First Nations a major concession on Ontario’s new HST, which kicks in July 1, amid threats that protesters will “shut down the country,” when it plays host to world leaders later this month at the G8 and G20 summits.

The Globe, reporting an accord is “imminent,” says under the new deal, it’s expected the 8% provincial portion of the 13% tax will be exempted at the point of sale, as First Nations have demanded all along. First Nation members receive exemptions from the federal GST for most goods bought off-reserve after filing their income-tax returns. Until this week, according to the Globe, it appeared federal rules would also apply to the HST.

First Nations are vehemently opposed to paying the HST, saying such payment is a violation of their treaty rights.

Both the First Nations and the provincial government support a continuance of the point-of-sale exemption but need to convince Ottawa, which will be administering the HST, to sign on.

Further pressure was put on Ottawa when both of Ontario’s opposition parties sided with the ruling Liberals.

It’s believed the talks only gained traction after frustrated First Nation representatives advised government officials that they would be backing up their unhappiness with direct action.

Batchewana First Nation pledged an indefinite blockade of Huron-Central Railway, the freight rail link between Sault Ste. Marie and Sudbury, on Monday, June 21, National Aboriginal Day, should the matter not get resolved. Essar Steel Algoma transports more than a million tonnes of product to market via Huron-Central.

Garden River First Nation has been talking of establishing toll booths later this summer along the Trans-Canada Highway and Highway 17B, which both run through their territory, as their contribution to direct action.