Updated: Tue Dec. 01 2009 17:39:36

The Canadian Press

Michael Ignatieff says federal Liberals will support legislation to implement a harmonized sales tax in Ontario and British Columbia, despite previously bashing it as a job-killing "Harper sales tax."

The Liberal leader announced his decision Tuesday after meeting his MPs, many of whom felt trapped in no-win situation and were torn over what to do.

Some MPs fear a backlash from voters in the two provinces, who are becoming increasingly angry about the prospect of paying more for a host of goods and services.

Others fear alienating the Liberal governments in Toronto and Victoria, whose campaign machines will be vital to the success of federal Liberals in the next election.

In the end, Ignatieff came down on the side of respecting the wishes of provincial governments, not to mention longstanding federal Liberal policy.

"This is a request from the provinces because they believe it'll improve the competitiveness of their economy and create jobs," Ignatieff said, noting that federal Liberals have promoted harmonization for 15 years.

"We will support this legislation in Parliament."

Just last summer, during a tour of B.C., Ignatieff criticized Prime Minister Stephen Harper for pushing provinces in the midst of a recession to adopt what he derisively referred to as the "Harper sales tax."

In September, he demanded a clarification after Ontario Premier Dalton McGuinty said Ignatieff had promised he'd abide by a federal agreement to ease the transition to the HST with $4.3 billion for Ontario and $1.6 billion for B.C.

After a week of confusion, Ignatieff grudgingly acknowledged that he would, in fact, honour that agreement should he become prime minister.

By Tuesday, that acknowledgment had become a point of principle which Ignatieff maintained demonstrates the difference between him and Harper, whom he slammed for tearing up federal-provincial agreements on child care and aboriginals upon taking office.

"We're practising a federalism of respect. Mr. Harper . . . practised a federalism of disrespect and division and I don't think that's any way to run a federation."

Ignatieff also slammed Harper, who'll be in China when the HST implementation legislation is introduced, for trying to distance himself from the unpopular tax and "pretend he has nothing to do with it."

"This was initiated by Mr. Harper and leadership means taking responsibility for your decisions. I've done so today. I wonder why he has not."

The Bloc Quebecois is also likely to support the legislation, leaving only the NDP to vote against it. NDP Leader Jack Layton is hoping to parlay consumer anger over the tax into votes for his party.

"The Liberals have decided to turn their backs on the hardworking families who are going to have to pay now billions of dollars in more taxes," Layton said Tuesday, vowing to use every procedural tool available to stop the legislation.

Ignatieff said the vote on the HST implementing legislation will be "whipped," meaning all Liberal MPs will be expected to support it.

That may yet prove difficult for some.

Victoria MP Keith Martin continued Tuesday to crusade against the HST in his province, predicting it will kill jobs, hurt people of modest means, and cramp the economy. He dismissed his leader's argument that federal politicians should respect the wishes of provincial governments.

"We simply are not there to be lackeys, to just move ahead and nod our heads and say yes," Martin said. "Our role and responsibility is to defend the interests of the people in our province."

Toronto MP Judy Sgro acknowledged that federal Liberals are worried they'll be blamed for the HST by Ontario voters, who'll likely cast ballots federally before they vote in a provincial election.

She said history shows voters take out their anger on the first politicians to show up at the door.

"Clearly, this is a difficult issue," she said.

Please Add Comments

Laura Major
Unbelievable!!! Do the Liberals & the rest of the Government have any idea what the HST is going to do to the economy in BC.

Syl S
It is scary to think that some people might actualy vote for this guy and the Liberals. He just doesn't have a clue as to what the people want.

Tony
O what a surprise and to think the Liberals red book of lies promise to dump the GST last time they were in power guess that’s way there not.

SunCoaster
I have supported this party all my voting life, but this is the last straw. I've put up with all the mismangements and crap for years, but now I'll have to find another party to vote for. I hope the support he gets from Gordon Campbell is woth turning his back on the general population of BC.

Paul
No big surprise in this comment.

Wayne
Does anyone else out there notice a certain pattern developing here in the new Liberal leader. First we have the budget in the spring where Iggy votes for it and then spends all the rest of his time saying it wasn't enough, it wasn't spent fast enough, it wasn't this it wasn't that. Then we have Iggy telling Harper I am putting you on a tight leash, probation, report cards and etc etc. Then it's Harper your time is up, then it's .. well whatever you get my point. At first I was very impressed with Iggy however every time I listen and watch him now the shine is rubbing off and he is becoming just another politician doing anything he can to keep his job. At least with Harper you know where you stand and the direction you are going but with Iggy and the once and mighty natural governing party it is whatever way the most amount of wind is blowing and in the Liberals case the wind is from their own behinds. I think what we need is to have the liberal party actually have a real leadership convention and allow the grassroots membership to choose a leader it has been so long sicne they have done this that they have forgotten the very principles that they stand up and accuse the Conservatives of betraying. I wonder if maybe the NDP might have just formed the right for a chance to become the official oppostion and have Jack move into Stornaway maybe it's time for a real walk in the snow by the liberal party of toronto!

Patrick from BC
Liberls and Iggy supporting HST in BC - makes me so mad -

I'm turning GREEN.

Rose
Well I can say only one thing . better they support the government than be the government. With iggy and rae in charge we would end up like the US broke Go back to the US iggy under the bush came from where you belong and rae go back under the rock you came from

Jim-Surrey
Well I always knew Mikey was an idiot and he has just proved it and has screwed B.C. along with his bed partner Campbell.
This should be voted on by BC'ers, the only fair way to deal with.

HEY MIKEY, go back south where you belong, some opposition you are.
BUT we already knew that!!!

Have a safe on way trip!

Doug @ BC
I'm not a big supporter of Mr.Ignatieff.In fact,I'm not even a Liberal any more.I left the party when Paul Martin screwed us over.But "Iggy" is a lot smarter than people give him credit for.No,I don't think he is PM material,or even a good politicial,he is no fool.
That said,I applaud him for making the right decision.THis is a case where the popular decision,and the right decision are not the same.We all hate to pay more taxes,but with all the government debt,this is likely one of the least painless ways to raise taxes that we all know are going up.Unlike the post by "Laura Major",I think over he longer term,this tax will benefit the economy of BC.Just as the once hated GST made it possible for Paul Martin to balance the federal budget.That is why LIBERAL governments supported the HST in the past.
But,equally important,he had to recognize the rights of duly elected provincial premiers to negotiate with the federal government,and expect those negotiations to be respected.I actually think Dalton McGuinty was hoping the "Iggy" and his party were going to take the heat off of him,by killing the HST.From the west,it appears that McGuinty does that a lot.I mean,if the decision is to tought,get someone else to make it for him.
My ONLY complaint,is the deception used by Cambell to get it into BC.Hard to blame him for that,I guess.Since we all hate taxes,if he had been up front about it,BC would liely be under he control of public sector unions and the BC Federation of labour right now.
Tough times folks.For ALL of us.Pick you own poison.More taxes,or fewer services? Who pays,and who receives?

JT in Vancouver
Is anyone really surprised by this? Liberals following the time-tested Liberal policy of Tax-and-spend? Are Canadians really surprised that Iggy is going to support more taxation?

What we are seeing here is the decades long transfer of tax burden from business to the people. It used to be 50-50. For every dolar the Feds got in taxes, half came from the people, the other half from business. Now, it's 92-8. And the HST will make it even worse. What we need is a tax revolt. A mass refusal to pay taxes at all until a more equitable tax structure is implemented.

But Canadians will do what they always do. They'll complain, and do nothing. The government just loves our Canadian Apathy.

Rob
Before you blame the Liberals, blame the Conservatives for holding the HST to everyone's throat - then, blame the Liberals for siding with the devil they know.

MARG MM
Well at least now Ignatieff and the Liberals won't be able to call this "Harpers sale tax" any longer.How they ever had the nerve to do that in the first place, when it was the Liberals that enabled tax harmonization for the Provinces in the first place. The NDP however will continue to blame the Federal Gov't. One would think Jack and his MP'S were smart enough to know that the HST is purely up to the Provinces,not the Federal Gov't. Apparently, they and their followers haven't a clue as to what it is about.

mike
IGGY is going to be the death of the Liberal Party!

Rhiannon Martin
very bad move for Liberals , hst is really bad idea.

Suzanne T (Lower Mainland)
Patricia from BC: you may be turning Green. I'm turning Red. :-)

You got to hand it to Mike though. At least he's being consistently inconsistent!

ted
Guess who I will not be voting for in any election. I am tired of idiots running our country