With the HST now defeated, the provincial government will be on the hook for the $1.6 billion transition payment that needs to be paid back to the federal government.
Following the referendum results, NDP BC caucus chair Don Davies said in a statement, "It would be both spiteful and damaging for [Prime Minister Stephen Harper] to now force B.C. to repay $1.6 billion, after it was already invested in things like health care and education."
Van Dongen estimated that the $1.6 billion transfer payment will cost B.C. as much as $3 billion in lost revenue and increased cost.
"There will be transition issues that will be negotiated with the federal government," he said.
"I don't know at this time when that money has to go back. . . and we still have a balanced budget target through all of that in 2013/2014."