Chiefs take provincial tax challenge to court

Page 2

The Union of New Brunswick Indian Chiefs is taking the province to court over the issue of sales tax.

In a letter sent to Premier Frank McKenna May 14, union president Roger Augustine called off all future negotiations with the province, determined that his only successful option was "to seek legal counsel."

"I wish to advise you and all persons interested in this matter that on behalf of all status Indians living on and off band territories throughout New Brunswick, the chiefs have decided that application of extra-judicial parameters will be explored in lieu of barricades or continued fruitless negotiation," he said.

"Our single objective now is to act in good faith and to place our fate in the hands of both the New Brunswick and Canadian judicial systems."

The union has also decided to take Premier Frank McKenna up on his offer to pay the legal costs for a court challenge to the province's latest budget, Augustine said.

This latest decision by the union comes after weeks of failed negotiations with the province over the recent imposition of an 11-per-cent sales tax on all purchases made off-reserve by on-reserve, status Indians.

News of the tax which was announced as part of the province's 1993/94 budget in March, was met almost immediately by anger and resentment from both on and off-reserve Indians. Roadblocks and demonstrations sprang up on highways across New Brunswick within days.

By April 10, however, chiefs across the province announced the blockades were coming down because the province had clarified its stand on the tax. Intergovernmental Affairs Minister Edmond Blanchard said status Indians would not have to pay any sales tax as long as purchase were bought, delivered to, consumed or used on a reserve.

Three subsequent sets of negotiations between the union and the province failed, however, to work out a feasible tax refund system.

The union has hired lawyer Robert Strother of the Vancouver firm Davis and Company to file a writ of summons against the province as soon as possible, a union spokesman said. The chiefs will also seek an interlocutory injunction to prevent the province from imposing the sales tax on status Micmacs and Maliseets pending the court challenge.