TAXATION

Ms. Lisa MacLeod: I appreciate the opportunity to ask another question of the Minister of Finance. I, of course, want to ask him about the 21st-century taxation that they're going to bring in.

A pattern is emerging on how this government deals with problems. We get PR schemes that start with denial, scapegoating, and then ministers who will say absolutely anything to sell a plan that isn't credible.

The public is against the HST. Now members of the mutual fund industry are coming forward and telling us that the Minister of Finance will say anything to push the tax. In fact, they're telling us that they're being threatened by the minister. I don't believe for a second that those are false allegations, because the track record of this minister would suggest otherwise.

We know the HST is a bad deal for Ontario. Is it so bad that the Minister of Finance has to use intimidation to sell it?

Hon. Dwight Duncan: I will re-emphasize what-I can't respond to false allegations by anonymous sources. I will say what I have done before. I've met with the leaders of the industry on two occasions, and I will likely meet with them again.

There are a number of transitional issues associated; there are a number of GST issues that go back a long way with that particular industry. We are attempting-

Hon. Gerry Phillips: To work with them, like housing.

Hon. Dwight Duncan: We are attempting to work with them, as we did with the housing industry, my colleague reminds me, to resolve those transitional issues. We have a period of time left before implementation of this particular policy and we will continue to meet with them and we welcome the opportunity to work with that industry.

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The Speaker (Hon. Steve Peters): Supplementary?

Ms. Lisa MacLeod: Again, I don't believe these are baseless allegations, nor do I believe they're false, having spoken with the industry several times myself. Mutual funds are a major source of income for many seniors and retirees. The mutual fund industry is expressing legitimate concern about the impact of the HST on the people that they serve. A recent Mackenzie Financial report estimates that the cost of the HST for a $100,000 portfolio will be almost $2,500 over the course of 10 years, and on larger portfolios that will be much more. Your 8% tax takes money away from seniors and people saving for retirement.

It is time to stop the intimidation. Will the minister listen to all those affected, including the mutual fund industry, and scrap the HST?

Hon. Leona Dombrowsky: What's Tim going to do about it?

Hon. Dwight Duncan: I wonder if Tim Hudak will do that. If I understand the member properly, she has asked if we will scrap the HST. No, we won't. It is the right policy for the times; Mike Harris has even endorsed it, Jim Flaherty, a lot of really prominent Conservatives-and Mini Mike over there. I'll try to keep my tone and tenor down. No, to the member, we won't scrap it. I guess my question to you and Mr. Hudak is, will you?