OTTAWA – The Liberal government lost one, and possibly two, MPs April 22 as it continued to struggle with the thorny problem of what to do about replacing the unpopular Goods and Services Tax.
Toronto MP and one-time Liberal leadership candidate John Nunziata was thrown out of the Liberal caucus Monday because the week before, he voted against the 1996 budget on the basis that it did not abolish the GST.
In support of Nunziata, Toronto Liberal Dennis Mills announced he is inclined to leave the Liberal caucus.
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While it does not jeopardize the solid Liberal majority in the Commons, the loss of the two MPs on what they argue is a point of principle and broken election promises is a blow to the government’s credibility.
In the Commons, Reform MPs hammered prime minister Jean ChrŽtien for breaking the GST promise and for not allowing his MPs to stand on principle.
ChrŽtien would have none of it. He said by voting against the government on a budget issue, Nunziata had shown he no longer supports the government.
“I wish him good luck to be an independent candidate.”
Nunziata says the Liberals promised to “axe the tax” while Liberal leaders say they only promised GST reform.
The 1993 Liberal campaign booklet promised to “replace the GST with a system that generates equivalent revenues, is fairer to consumers and to small business, minimizes disruption to small business and promotes federal-provincial fiscal co-operation and harmonization.”
Ironically, the public sparring came on the eve of the first Liberal GST reform announcement.
This week, Ottawa is to announce that Newfoundland, New Brunswick and Nova Scotia have agreed to a single federal-provincial tax of 15 percent, replacing the GST and provincial sales taxes.
Finance minister Paul Martin was expected to claim this to be a major step toward GST reform.
