New Brunswick chiefs consider tax reforms

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The conflict over a sales tax exemption between on-reserve, status Natives and the province of New Brunswick has momentarily subsided.

The chiefs of the Union of New Brunswick Indians will not make any moves until they have thoroughly considered the provincial government's latest tax reform offer, a union spokesman said.

"They've had a meeting with the Minister of Finance," said Darrell Paul. "They put the proposal to the chiefs and the chiefs will consider it."

The union is currently haggling with the province over the issue of delivering goods to reserves as a way of avoiding the tax. Under the next tax law, on-reserve status Natives will be exempt from the tax if the goods are purchased on the reserve or have goods for use on the reserve delivered by the vendor or the vendor's agent.

The province offered two delivery options, said deputy Minister of Intergovernmental Affairs Donald Dennison.

"The first involves some kind of proof of residency and status," he said. "Proof of residency would be given at the point of sale. The second is a kind of refund system for off-reserve goods consumed on reserves."

But the head of the Union of New Brunswick Indians, Roger Augustine, and union chiefs Len Tomah, Stewart Paul, Albert Levy and Everett Martin said they want time to examine both of the province's latest offers before making their decision.

Natives across New Brunswick reacted violently last month to the province's March 31 budget, in which Frank McKenna's Liberal government proposed to revoke the provincial sales tax exemption from status Indians living on reserves. By April 3, Natives across New Brunswick had begun mounting road blocks on provincial highways and later on the Trans-Canada Highway.

The blockades were disassembled, however, after emergency meetings over the Easter weekend between New Brunswick officials and the union apparently clarified the government's position.

Intergovernmental Affairs Minister Edmond Blanchard said status Indians would not have to pay the 11-per-cent tax as long as goods were bought, delivered to, used or consumed on reserves. The province hopes to generate an additional $1 million per year from the next tax law.

The road blocks did not, however, come without a price tag. Provincial officials estimated repairs to provincial highways, damaged by blockade bonfires and redirecting heavy traffic onto secondary and service roads would cost $170,000. Solicitor General Bruce Smith also said the bill for policing services at the blockades, which included overtime for RCMP officers and repair costs to damaged police vehicles, would run $350,000.