Ches Crosbie doubles down on insurance, says he'll eliminate tax on home policies

Progressive Conservative Leader Ches Crosbie says he'll go a step further than the Liberals and also remove the 15 per cent retail sales tax on home insurance policies if elected premier on May 16.

Crosbie made the pledge Monday morning while speaking with reporters outside a community college in St. John's.

"That will be done in our first budget," Crosbie said.

When asked what that might cost the treasury, and how a Tory government would fill that gap, Crosbie said the answer will be contained in the PC "blue book" campaign platform that will be released Tuesday.

"We've done the math," he said.

'Massive cuts' planned

When informed of Crosbie's pledge, Liberal Leader Dwight Ball said it's further proof that the Tories are preparing "massive" cuts to the public service and other government spending.

"I'm looking forward to asking Crosbie to square up his budget because right now he says he will not be having deficits. That he would have a debt break law. He's now splashing money around. I see, right now, an extra $20 million or so. That would bring next year's deficit up to $800 million plus," said Ball.

"So therefore he's got some massive cuts that he's planning by the sounds of things. So look out public service. Look out for the investment in infrastructure that we've put in place."

Crosbie is attempting to capitalize on an issue that generated some buzz on social media related to the recent provincial budget.

The Liberals brought down a financial blueprint on April 16 that included some $60 million in tax relief for motorists, with the removal of the sales tax on automobile insurance.

Finance Minister Tom Osborne announced at the time that the change would be implemented in early July, and would be retroactive to April 16, the same day as the budget, with a rebate for those renewing their policies before the tax was officially removed.

• Full coverage: Track every article we're publishing on the election 
• From 'the brink' to a 'brighter future': Pre-election N.L. budget touts improving outlook

But before the budget could be debated and passed in the legislature, the Liberals launched an election campaign a few days later, saying the budget would be passed if the Liberals were returned to government.

That has created some confusion, with some brokers sending out notices in recent days to customers, informing them the tax remains in place on auto insurance.

"The fact of the matter is the Liberals chose not the pass the budget, so the 15 per cent insurance tax is still there, much to the surprise and anger of many voters," Crosbie said.

'We've done the math'

The Liberals introduced a tax on auto and home insurance policies in 2016, in its first budget after winning the 2015 provincial election.

• N.L. budget: $1.83B deficit, across-the-board tax hikes and layoffs

Crosbie said the confusion about the insurance tax is further proof that the "sleight-of-hand" Liberal budget was nothing more than "an election campaign piece. Not as a serious budget."

Crosbie then went further, saying he would also eliminate the retail sales tax on home insurance.

"I'm looking forward to taking him on with some of the policies I'm seeing from him," Ball said.

Read more from CBC Newfoundland and Labrador