Source: The Canadian Press

Prime Minister Stephen Harper ran into strong opposition from his British counterpart on Thursday on the controversial issue of taxing banks worldwide.

David Cameron emerged from a one-hour meeting with Harper at 10 Downing St. to say his country will continue to push for such a tax despite the Canadian prime minister disliking the idea.

Cameron says he understands Canada’s opposition to the tax but it won’t change his plans.

“We’ve always made clear, here in the UK, that we will press ahead with this measure anyway, partly because of the large support the taxpayers have given to the banks,” Cameron said.

“But obviously we’d like to secure the maximum amount of agreement for this proposal and we’re encouraged that there are other countries, which Prime Minister Stephen Harper mentioned in terms of America and Germany and France and others, that look like they will push ahead.”

Harper argues it would be unfair to penalize Canadian banks, which he says have performed better than their international counterparts during the recent economic turmoil.

He said Britain has a “very different history” with the issue.

“The population is outraged about having to have bailed out the private sector,” Harper said. “That’s not the case in Canada. That’s obviously why we see this situation very differently.”

Harper said support for a bank tax in most countries seems to be generally related to whether taxpayers had to bail out their financial sector during the economic meltdown.

“Every country always has the option of pursuing its own policies for its own financial sector. That’s an option that exists for Britain and for all of us.”

The two prime ministers also discussed broader economic issues ahead of the G8 and G20 summits to be held in Ontario later this month.

Harper also told reporters that Cameron’s coalition government is different from the one that came close to being formed in Canada in 2008.

Harper waged a fierce fight when his opponents tried to form a coalition, and he argued the arrangement was illegitimate and undemocratic.

“The verdict of public opinion was pretty clear, which is that losers don’t get to form coalitions,” Harper said in London.

“Winners are the ones who form governments. The coalition in Britain, and it’s important to point out, was formed by the party that won the election. And of course, this coalition in Britain, I would note, doesn’t contain a party (the Bloc Quebecois) dedicated to the breakup of a country.

“And these were the two problems in Canada — the proposition by my opposition was to form a coalition for the purpose of excluding the party that won the election and for the purpose of including a party dedicated to the breakup of the country.”

Harper left Britain later on Thursday and flew to France where he will meet with French President Nicolas Sarkozy and French PM Francois Fillon on Friday.