After failing to listen to prudent warnings about a weakening economy, Premier Dalton McGuinty is still not providing the strong leadership Ontario needs.
That was the response from Wellington-Halton Hills MPP Ted Arnott after the March 26 provincial budget.
“We’re facing an extreme economic challenge,” said Arnott. “Higher taxes on consumers and a record-high deficit are the last things we need to get our economy moving again. We in Wellington-Halton Hills expected better, and I know that people across Ontario will be sorely disappointed.”
Beginning next year on July 1, a single harmonized or “blended” sales tax will take effect, and will apply to many items now exempt from provincial sales tax. Taxes are set to rise on gasoline, home heating fuel, and other consumer goods and services.
“Taxpayers have taken another big hit,” said Arnott. “When it comes to his record of raising taxes, Premier McGuinty has shown himself to be a serial promise-breaker.”
When Arnott learned that a blended sales tax was under serious consideration, he called for meaningful public hearings before a final decision was made. “Their timing for a tax increase, of any sort, couldn’t be worse,” said Arnott. “We are in opposition, and we will speak up for those who are hurt by this new tax.”
In an attempt to minimize the political damage, the government is promising to mail cheques to Ontario households. It is a move that was characterized as a “bribe” in the legislature.
At the same time, the government is forecasting a staggering $14.1-billion deficit for the coming fiscal year. It is the largest deficit in Ontario’s history – even larger than Bob Rae’s deficits of the early 1990s.
“I have called for a credible plan to eliminate the deficit,” said Arnott. “I’ve also made many other constructive suggestions in advance of the budget and, while they picked up on some, they should have acted on them all.”
As Progressive Conservative critic to the Minister of Tourism, Arnott will be consulting with the tourism industry in the coming days.
He has been highly critical of the government’s political strategy surrounding the budget. Since the beginning of March, the government has been deliberately and systematically leaking significant parts of the budget to the media and select audiences.
“It shows fundamental disrespect toward our important and longstanding convention of budget secrecy,” he explained.
