More worries over HST

The general manager of the Thunder Bay Community Auditorium says he is concerned that Harmonized Sales Tax will have a negative impact on the local entertainment venue.

Since 1985, the Auditorium has been exempt from Provincial Sales Tax because of an exemption order for all Ontario theatres with less than 3,200 seats, said Bob Halvorsen.

Now with an extra eight per cent in taxes, concertgoers are looking at an extra $4 to $5 on every ticket.

"If you have a tax increase on tickets, it’s going to have an effect on people’s ability to pay," said Halvorsen. "We’re very concerned about that."

When the federal government’s Goods and Services Tax was introduced in 1991, Halvorsen said it had a negative impact on ticket sales and the HST – set to be introduced on July 1 – will only make the problem worse.

"I don’t feel the tax is going to put the future of the venue in jeopardy," he said. "However, there will be a period of adjustment where people are going to be have to absorb this tax and unfortunately there’s not much we can do about it."

Small community groups will also be affected negatively by HST.

Not only will their ticket prices go up, but so will the price to rent the Auditorium for their events.

"They’re getting it from both ends," said Halvorsen, adding groups like the Thunder Bay Symphony Orchestra, dance groups and high schools, the university and college, who all host their convocation ceremonies at the Auditorium, could be hit with an additional $400 in taxes when renting the facility.

If those groups choose to use other facilities because of the price increase, that is a big loss of income for the Auditorium, said Halvorsen.

The only available solution is try to regain the PST exemption, he added.

"There were a number of exemptions that are included in the HST; there will probably be a few more added," he said. "We’re hopeful that the exemption for PST that was in place for all Ontario theatres will be re-established."