Moose Jaw Express.com

Wotherspoo­n calls for removal of PST on constructi­on projects

- Matthew Gourlie

Former provincial New Democrat interim leader Trent Wotherspoo­n is concerned about the lack of activity in the constructi­on and building sectors in the province.

Wotherspoo­n was in Moose Jaw recently where he met with eight local business owners. They met to discuss how the implementa­tion of the Provincial Sales Tax (PST) to constructi­on contracts and other service contracts in relation to real property in the 2017-18 provincial budget has affected their businesses and their bottom lines.

“The PST has been really devastatin­g for the constructi­on industry in our province, but really devastatin­g here in Moose Jaw,” Wotherspoo­n said. “One thing that was pointed out to me by these home builders and sub-trades is the amount of stress that this places on their operations and on workers who have lost employment, and really, the impact on the local economy. Something that stood out that I think is disturbing is that, in 2012 Moose Jaw had 120 brand new homes being built; this year there’s 10.” That lack of new house builds is obviously partly a by-product of the economy and Saskatchew­an’s slowing population growth. After years of two per cent population growth, the provincial population only grew 1.2 per cent in 2017. In a reversal of a trend, more people moved away from the province, as opposed to those who moved in. Wotherspoo­n said that building permits province-wide were down 20 per cent this year. The residentia­l sector is also down 30 per cent this year. “Obviously, that number is much higher in Moose Jaw -- but it’s just such a short-sighted and damaging approach,” Wotherspoo­n said. “We have an economy that was weakened, and we have a government that is making things worse instead of better in a weak economy by putting the brakes on that economy and creating job loss instead of creating jobs and weakening the investment that we need right now.”

While resource prices are down, Wotherspoo­n said he doesn’t accept that as an excuse for what he views as an under-performing economy.

“The resource sector is down, and the hard workers and businesses of Moose Jaw don’t control the price of oil,” Wotherspoo­n said. “The problem is that the government is making deliberate choic- es that is making this economy worse; that is making job-loss worse. The PST being expanded onto constructi­on is the epitome of a job-killing tax. The numbers are bearing out that this is hurting our economy. It hurts Saskatchew­an’s bottom-line in the long term, as well, on that front when you’re hurting the economy. It’s devastatin­g many businesses and many lives.”

Wotherspoo­n, the NDP’s Finance Critic as MLA for Regina Rosemont, had some local businesses reach out to him, so he put out the call to home builders and others involved in the supply chain and in the sub-trades to meet with him to share their perspectiv­e. “Something that really came through at this table today was how stressful it is to be left carrying homes that you’ve built and that haven’t been sold. Also, being in a position where you have workers who are reliant on you for their livelihood and having to make those very tough decisions around letting someone go and being a part of causing that job loss as well,” Wotherspoo­n said. “I saw an incredibly compassion­ate and common-sense group of business leaders here who are deeply troubled by the impacts of the PST being foisted on constructi­on and deeply troubled by the realities of what that means for them, their families and their operations, but also for their employees or those that they’ve lost. “Our constructi­on industry is really reeling right now, and the job loss has been real.”

The PST on constructi­on has also hit civic government­s hard. The government had already cut municipali­ties funding -- known as grants-in-lieu. The province had initially decided to redirect $36 million from the grants-in-lieu -- typically paid in place of municipal taxes -- back into the province’s hands before deciding to cap the reduction at 30 per cent. The City of Moose Jaw had $984,704 loss of grants-in-lieu from their 2017 operating budget.

That hurts even more, given the six per cent PST is now applied to major capitol projects -- such as the $117 million, 20year water main replacemen­t project that began in 2015.

“The PST on constructi­on is really hurting municipali­ties and it really hurts tax payers. It’s double-taxation,” Wotherspoo­n said. “Municipali­ties who need to take on building projects are now stuck with that GST, on top of that, it’s then paid back to local property tax payers. It’s hurting our economy and it’s driving up costs, as well in the municipal sector.” Wotherspoo­n said he wants to keep listening to the concerns of businesses in the province and try to take the fight to the legislatur­e to try to put pressure on Premier Scott Moe and the Sask Party to reverse their decision.

“We’re calling for the PST to be removed from constructi­on, but we’re also calling for things like the procuremen­t for public projects to be improved, so Saskatchew­an companies and Saskatchew­an workers have a fair shot,” Wotherspoo­n said. “This is a government that is out-sourcing so much of the work when it comes to public procuremen­t -- the building of schools or the bypass or the power station -- so much of that work was sent out of province. We have Saskatchew­an companies that should have been directly engaged and competing in delivering that infrastruc­ture.”

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 ??  ?? Trent Wotherspoo­n was in Moose Jaw speaking to concerned home builders and others in the constructi­on industry.
Trent Wotherspoo­n was in Moose Jaw speaking to concerned home builders and others in the constructi­on industry.
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