In the coming weeks, the Dalton McGuinty government will release its 2012 budget.
We in Perth-Wellington will pay close attention to that budget, now that the government’s own consultant, Don Drummond, has released a report calling for deep cuts to reign in runaway spending.
That report should not have been necessary.
Since the government came to office in 2003, it spent our tax dollars with little regard for the long-term consequences.
Indeed, the Drummond report states the following: “The roots of Ontario’s current fix lie in both the economy and in the province’s record of failing to keep growth in government spending in line with revenue growth.”
So the government can’t blame the global economy for the grim financial future facing Ontario.
Thanks to this government’s mismanagement, Ontario now has a $16-billion deficit. The government continues to spend about $1.8 million more than it is taking in every hour of every day.
The Drummond report warns that unless the government takes immediate action, the province would face a crippling deficit of more than $30 billion in just five years. Ontario’s debt, meanwhile, would spiral to more than $411 billion.
It is time for the McGuinty government to reveal exactly which of the Drummond report’s recommendations it will follow, and which ones it will ignore.
Drummond wasn’t the first one to sound the alarm on Ontario’s finances. In December, Moody’s Investor Service downgraded Ontario’s debt rating to “negative,” citing the government’s growing debt burden and extended time frame to balance the budget.
The Conference Board of Canada recently released a report casting serious doubt on the government’s ability to keep its promise to balance the books by 2017-18. That report suggested that in order to balance the budget as promised, and without major cuts, the government would have to hike the HST by a whopping seven per cent.
More Liberal tax hikes should be off the table.
People need to know: will the McGuinty government keep running massive deficits beyond 2017-18, or will it raise taxes to cover its runaway spending?
Before the Drummond report was released, the Progressive Conservative caucus put forward several ideas to help reduce the size and cost of government. Those included a public sector wage freeze, competition for public services delivery and reform to the province’s public sector arbitration system.
But we need your ideas as well. Normally, an all-party legislative committee would hear from people across our province in advance of a provincial budget. Unfortunately, McGuinty has decided to not allow the usual committee process.
Still, I believe people deserve the opportunity to submit ideas and have a voice. Please send ideas to me that I can bring to the attention of the Minister of Finance.
People can also visit my website at www.pettapiece.ca to fill out a survey and share views on some of the major issues facing the province.
My email address is randy.pettapiececo@pc.ola.org. You can also send a letter by regular mail to Randy Pettapiece, MPP: 55 Lorne Avenue East, Stratford, Ontario, N5A 6S4.
I look forward to hearing from you.