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Britain's David Cameron tells Harper that the UK and 'many other countries' will oppose Canada's decision to support big banks and international financial institutions.
Ottawa (4 June 2010) - Prime Minister Stephen Harper concedes that he will face a fight at the upcoming G-20 meetings in Toronto over his opposition to a Robin Hood tax on financial transactions.
Harper failed at a meeting with David Cameron in London Thursday to persuade the new British prime minister to support him in Canada's Conservative campaign – on behalf of big banks and global financial institutions – to stop the widespread adoption of such a tax.
The tax would not apply to most consumer transactions but would be aimed at financial market transactions such as the trade of stocks, bonds, foreign exchange and derivatives.
Estimates vary on how much revenue such a tax would generate – depending on the rate and the range of transactions covered. The Austrian Institute of Economic Research (AIER) estimates it could yield $650 billion a year globally.
Harper has attempted to argue against the tax on grounds that Canada did not need to bail out its banks during the global meltdown of 2008 and to suggest that the levy would be unjustified as a result.
He ignores the fact that Canadian banks are reaping windfall profits year after year and could easily afford such a tax and that Canada is on course to run a record deficit this year, putting a harsh squeeze on many public programs and services.
Cameron declined to buy into Harper's arguments when the two men met for the first time Thursday since Cameron became prime minister last month.
“The experience in Canada is different and I am not surprised that they take a slightly different view,” Cameron said diplomatically. “But that’s the clear view we take and we’ll be arguing for that in the G20 and we think many other countries will want to take a similar approach.”
Harper concedes that a "lively debate" is certain to ensue when the G-20 takes place later this month.
Britain, the United States, Germany and France support a Robin Hood tax. Canada has support among several other countries, including India, China, Brazil, Russia and China, in opposing the tax.
The National Union of Public and General Employees (NUPGE) has been lobbying strongly in favour of the tax in Canada.
NUPGE president James Clancy wrote recently to Liberal Leader Michael Ignatieff urging Liberal MPs to join forces with other opposition MPs in Parliament to back a Robin Hood tax. Because Canada has a minority Parliament, the combined opposition would have enough votes to push such legislation through Parliament.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
More information:
• NUPGE asks Liberal MPs to support Robin Hood tax
• NUPGE endorses Robin Hood tax on banks
• Harper should reverse opposition to Robin Hood tax
• Global campaign calls for Robin Hood tax on banks
• Robin Hood tax campaign spreads to Canada
• 24 hours for the Robin Hood tax
• Harper sides with banks over social services