N.B. will not raise HST: Alward

Premier David Alward is denouncing any talk of the Progressive Conservaitve government hiking the Harmonized Sales Tax to tackle the massive deficit.

Finance Minister Blaine Higgs said on Friday the provincial government might look at raising the tax if it "exhausted all other options."

Even then, Higgs said voters would have to approve the move.

Alward told reporters on Friday there would be no increase in the HST under any scenario.

"The reality is we know there are difficult times, we will work through those difficult times as a province, and that will not include a raise to the HST," Alward said.

New Brunswick's HST includes a five-per-cent federal Goods and Services Tax and an eight-per-cent provincial sales tax.

New Brunswick is projecting a $747-million deficit in 2010-11.

During the election campaign, the Progressive Conservatives promised to erase the provincial deficitduring their mandate.

To help with that effort, Higgs has already asked departments to cut one per cent from this year's budget.

As well, the finance minister has asked all departments, with theexception ofHealth, to find ways to cut twoper cent inthe upcoming budget.