By
      DAVID
      COCHRANE
      AND
     
     
      MICHAEL
      CONNORS
     
    
   
   
    
     
      (CUP)
      —
      A
      new
      har-
     
     
      monized
      sales
      tax
      could
      end
      up
     
     
      costing
      Atlantic
      Canadian
      uni-
     
     
      versities
      millions
      of
      dollars
      in
     
     
      extra
      taxes.
     
    

    
     
      Starting
      next
      month
      the
     
     
      new
      HST
      will
      combine
      the
     
     
      GST
      and
      provincial
      sales
      taxes
     
     
      in
      Newfoundland,
      Nova
      Scotia
     
     
      and
      New
      Brunswick
      into
      a
     
     
      single
      15-per-cent
      tax.
      Prices
     
     
      for
      many
      items
      will
      fall,
      but
      the
     
     
      new
      tax
      is
      much
      broader
      and
     
     
      will
      increase
      the
      cost
      of
      uni-
     
     
      versities’
      heat
      and
      light
      bills,
     
     
      and
      capital
      expenditures.
     
    

    
     
      “We
      have
      to
      talk
      to
      the
     
     
      provincial
      government
      about
      a
     
     
      significant
      increase
      in
      the
      uni-
     
     
      versity’s
      costs,”
      said
      Art
      May,
     
     
      president
      of
      Memorial
      Univer-
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      March
      11,
      1997
     
    
   
   
    
     
       
     
    
   
   
    
     
      @°:
      The
      Panther
      Prints
     
    
   
   
    
     
      HST
      could
      cost
     
     
      Atlantic
      schools
      millions
     
    
   
   
    
     
      sity
      of
      Newfoundland.
      He
      says
     
     
      the
      new
      tax
      could
      cost
      Memo-
     
     
      rial
      $800,000
      a
      year.
     
    

    
     
      “That’s
      the
      same
      as
     
     
      cutting
      the
      budget.”
     
    

    
     
      A
      recent
      study
      on
      the
     
     
      effects
      of
      the
      HST
      on
      univer-
     
     
      sities
      done
      by
      KPMG,
      a
      Nova
     
     
      Scotia
      based
      consulting
      firm,
     
     
      concluded
      increases
      in
      elec-
     
     
      tricity
      and
      heat
      will
      be
      coun-
     
     
      tered
      by
      other
      tax
      exemptions.
     
    

    
     
      “The
      decision
      to
      remove
     
     
      the
      tax
      from
      books
      and
      peri-
     
     
      odicals
      balances
      it
      out,”
      said
     
     
      Ian
      Fraser,
      who
      was
      part
      of
     
     
      the
      KPMG
      study.
      “But
      there
     
     
      will
      be
      a
      significant
      negative
     
     
      effect
      on
      the
      capital
      side.”
     
    

    
     
      The
      capital
      tax
      increase
     
     
      means
      it
      will
      cost
      schools
      more
     
     
      money
      to
      build
      new
      buildings
     
     
      or
      renovate
      old
      ones
      and
      this
      is
     
     
      bad
      news
      for
      several
      universi-
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      eee
      ~
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      ties.
     
    

    
     
      Next
      year
      Memorial
     
     
      University
      plans
      to
      begin
      con-
     
     
      struction
      of
      a
      new
      university
     
     
      centre
      and
      an
      athletics
      build-
     
     
      ing
      at
      a
      total
      cost
      of
      $25-mil-
     
     
      lion.
      Dalhousie
      University
      will
     
     
      start
      a
      new
      $12-million
      arts
     
     
      building,
      while
      St.
      Mary’s
      Uni-
     
     
      versity
      will
      buildan
      $18-million
     
     
      business
      school.
     
    

    
     
      The
      new
      tax
      scheme
     
     
      means
      these
      projects
      combined
     
     
      willcost
      $8.25-million
      in
      taxes.
     
    

    
     
      “The
      net
      effect
      on
      us
     
     
      will
      be
      negative
      and
      it
      will
      cost
     
     
      us
      more
      money,”
      said
      Guy
     
     
      Noel,
      a
      St.
      Mary’s
      vice-presi-
     
     
      dent.
     
    

    
     
      Noel
      said
      St.
      Mary’s
      will
     
     
      have
      to
      shift
      its
      budget
      around
     
     
      to
      cope
      with
      the
      new
      tax
      struc-
     
     
      ture,
      but
      said
      the
      HST
      will
      still
     
     
      put
      the
      economic
      crunch
      on
     
    
   
   
    
     
      the
      institution.
     
    

    
     
      “Anytime
      that
      there
      is
      a
     
     
      change
      in
      tax
      structure
      that
     
     
      affects
      our
      operating
      expendi-
     
     
      tures
      and
      our
      budgets,
      capital
     
     
      or
      otherwise,
      it
      further
      com-
     
     
      pounds
      the
      problems
      we
      face,”
     
     
      he
      said.
     
    

    
     
      Meanwhile,
      May
      said
     
     
      Memorial
      hopes
      to
      convince
     
     
      the
      Newfoundland
      government
     
     
      to
      rebate
      the
      money
      lost
      to
     
     
      taxes.
     
    

    
     
      But
      provincial
      Finance
     
     
      Minister
      Paul
      Dicks
      said
      it
      is
     
     
      unlikely
      the
      university
      will
      be
     
     
      given
      a
      rebate
      for
      the
      HST
     
     
      because
      of
      offsetting
      savings
     
     
      for
      other
      equipment
      it
      pur-
     
     
      chases.
     
    

    
     
      “For
      instance,
      many
      of
     
     
      the
      things
      that
      it
      buys
      —
      ta-
     
     
      bles,
      chairs,
      desks,
      computers
     
     
      —
      all
      of
      these
      things
      are
      com-
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
        
     
    
   
   
    
     
      ing
      down
      from
      [a]
      20
      per
      cent
     
     
      [tax
      rate]to
      15
      per
      cent,”
      Dicks
     
     
      said.
      “So
      merely
      because
      one
     
     
      item
      goes
      up
      doesn’t
      mean
      on
     
     
      balance
      the
      university
      should
     
     
      have
      a
      rebate.”
     
    

    
     
      Dicks
      said
      the
      reason
     
     
      federal
      rebates
      for
      the
      GST
     
     
      existed
      was
      because
      originally
     
     
      there
      had
      been
      no
      tax
      at
      all.
     
    

    
     
      “The
      difference
      is
      pro-
     
     
      vincially
      the
      retail
      sales
      tax
     
     
      already
      existed
      across
      a
      broad
     
     
      range
      of
      items,
      and
      that’s
      be-
     
     
      ing
      reduced,”
      he
      said.
     
    

    
     
      May
      said
      if
      the
      univer-
     
     
      sity
      does
      have
      to
      pay
      the
      tax
      it
     
     
      won't
      be
      able
      to
      fill
      some
      va-
     
     
      cant
      positions
      or
      offer
      certain
     
     
      courses.
      But
      the
      administra-
     
     
      tions
      has
      ruled
      out
      the
      possibil-
      .
     
     
      ity
      of
      further
      tuition
      fee
      in-
     
     
      creases
      other
      than
      those
      al-
     
     
      ready
      announced.
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      RK