Battle over HST heads to B.C. Supreme Court

The fight over B.C.'s HST shifted from the political arena to the courtroom on Monday when supporters and opponents of the harmonized sales tax began arguing their cases in B.C. Supreme Court in Vancouver.

Former premier Bill Vander Zalm and the organizers of the Fight HST petition are facing off against a legal team representing a business group that supports the new tax.

The business group made up of the Council of Forest Industries, the Mining Association of B.C., the Coast Forest Products Association and the B.C. Chamber of Commerce wants the petition tossed out, saying the HST is a federal tax and not subject to provincial laws.

But Vander Zalm's lawyer has filed a counterclaim that the HST be declared unconstitutional because it was never voted on in the provincial legislature.

If the court rules the petition is constitutionally valid, the legislative committee would have to decide whether to send a bill to the legislature withdrawing the HST or to put the issue to a province-wide referendum.

No appeal planned says business group

Chief Justice Robert Bauman has scheduled a week to hear arguments, and there has been speculation that the legal battle could drag on for years if the losing side decides to appeal the decision.

But on Monday morning, the business group indicated it has no plans to appeal if the judge rules against it. Lawyers for the province and the federal government are also expected to sit in on the hearings.

Vander Zalm's is attempting to roll back the new 12 per cent tax, which came into effect on July 1, with a petition under the province's initiative legislation.

Elections B.C. verified the 700,000 signature petition was valid last week. However the province's chief electoral officer decided not send it to the legislature while the legal challenge was before the court.

Committee will await court ruling

Frustrated by the legal delay, Vander Zalm attempted to take matters into his own hands last week and deliver the petition to the legislative committee himself.

But on Monday morning, Liberal MLA Terry Lake, who is the convener of the legislative committee, confirmed the committee won't accept the petition from anyone but B.C.'s chief electoral officer.

"It's clear from the legislation that only the chief electoral officer can submit the petition, the legislative initiative, to the committee," said Lake.

Over the weekend, one committee member, John Slater, suggested he was ready to address the issue, but Lake said the legislative committee has no meetings scheduled and no plans to consider the petition until the courts have dealt with the constitutional questions.

"We're in standby mode at this point," Lake told CBC News.

Vander Zalm has said previously that members of his HST group are planning to recall Liberal MLAs if they don't repeal the tax.

Former energy minister Blair Lekstrom left the governing Liberal Party in June, because, he said, he could no longer support the unpopular tax.