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APRIL 24. 1951 , . H

Won't Let Tax Views Block Agreement: Frost

By GEORGE IAIN

There is little likelihood that Ontario will say no to the proposed constitutional amendment which would let the provinces levy an in. direct sales tax oi up to 3 per ems,

Premier Frost has said that it is

. not the intention oi his govern- ment to use such a tax should the provinces be given the right to it. He has intimated that it Ontario were to levy any new consumer tax. it would be, in any event. a direct tax.

The provinces now may use only direct taxes. Five do. The proposed constitutional amendment would let them tax merchants to the ex- tent of 3 per cent on annual bus. iness turnover. The tax would be recovered from the consume in higher prices.

Although Ontario does not want the right to levy an indirect sales tax, it will not stand in the way or its being made poasible. One rea- son was suggested by the Premier when, on the tinai day of the re- cent session of the legislature, he said:

"We have to exercise care that our views on, say. sales taxes . . . do not adversely influence a broader question, namely, that of constitu- tional procedures suited to a great country like our own."

The Premlerts View has been that, to oppose this amendment which some provinces have requested. might be to jeopardiu the chances llf getting agreement on a tormula i'or handling constitutional ” generally.

There is no argument among the provinces that on matters relating to such fundamentals as ' gc. schools, religious and minority rights. there should be no right to amend the constitution without un- animous i.

There has been considerable dil- lerence oi opinion, however, on how to approach arrpndment dealing with less baslo matters. some have put'torward the view thati such amendments should be permitted with the approval of a simple mai-

ority ot the provinces, without rs- sud to population. Others would co ” the necessity for unan- imous consent to all amendments.

Ontario has put forward a mid- dle-of-the-road proposal: that par- liament should be able to make general amendment to the constit- ution with the concurrence at two- thirds at the provinces. represent- ing a majority of the population.

This would make it impossible for one province to use a veto. It also would ensure that any amend- ment would have to have the con- currence of either Ontario or Que- bec, which between them have A majority ot the population.

In the case or the proposed am- endment, which would permit the provinces to use an indirect sales tax. unanimous I. has been required in the absence of any other formula. Premier Frost has taken the stand that Ontario would be going against its own proposed iormula if it were to exercise a veto against something which sev- eral other provinces have request- ed. In the House, he said the Ontario Government was anything but en- thusiastic about an indirect sale- tax. Ontario has other preferences as to new sources oi revenue tor the provinces. But. he added: "I understand the tederal government and the other nine provinces are generally in agreement. It we were to impose the veto we would run quite contrary to the formula which we have proposed for constitutional amendments."

He also pointed out that his gov- ernment already has agreed to a second ndment which would permit the operation of a new fed- eral-provincial old-size P011310" scheme. It is completely in favor of the proposal, he said.

"I imagine what the feelings at this chamber would be if one ot the provinces were to veto this proposal." he said. "That is the question you must consider. Sup- pose one oi the provinces vetoed that proposal. That is the position we are in at the moment."

4 THE GUARDIAN. CHARLOTT ET OWN

Read what Mr. Frost, Con- servative premier oi Ont- ario said recently, as re- ported in the Globe and

Mail, Conservative Toron- to Newspaper. Premier

J ones agrees! with Premier Frost of Ontario.

VOTE LIBERAL

If the Conservatives under R. R. Bell should be elect- ed. his promise to veto the sales tax amendment to the constitution would also block the old age

pension amendment, and the proposed old age pen-

sions would never be paid.

AND PROTECT Tina on AGE PENSION

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