A five-point plan for Ontario’s economic woes

With job losses over the past few months, continued high taxes, continued free spending, and bigger energy price shocks to come from electricity and natural gas, this government has ignored the makings of an economic wreck. Sadly, no one in government seems ready to acknowledge what is happening.

It wasn’t so long ago that Ontario was Canada’s economic engine. We paved the way for prosperity in the country with our strong economy. Regrettably, the numbers show we have lost that status. We are now becoming a “have-not” province. Our private sector job creation is the lowest in the country and our economic growth rate this year is also expected to be at the bottom.

In past columns I’ve spoken about the hit manufacturing has taken. Now that as the summer is upon us, Ontario’s tourism industry, which employs tens of thousands of people, is reporting declines. During March, U.S. border crossings had fallen by over 16 per cent from the previous year and Ontario’s hotels are reporting declines.

We need to see short-term relief which will have financial benefits for families and businesses – hardworking families deserve to be able to go on a family vacation without having to scrimp and scrape. PC Leader John Tory and Finance Critic Tim Hudak, have recommended the sales tax be removed from hotel rooms and tourist attractions for the summer. Industry leaders welcome the proposal but the Premier hasn’t given it a second thought.

Ontario is losing some of its best and brightest to other provinces and it will be tough to woo them back when we get our economy back on track.

Below are five steps I feel would turn the Ontario economy around.

1.      We must have competitive taxes. Ontario is no longer the place to do business when existing or would-be investors realize that we have the highest rate of taxation on new business investment in all of Canada

2.      We need a real skills and training strategy. Right now we have a grab bag of programs that are inadequate, not properly coordinated and that don’t take full advantage of one of our greatest assets – our college system. Further, many of our rules and regulations are eliminating opportunities for young people in apprenticeships.

3.      We need regulatory sanity. I hear from businesses who are bombarded by inspectors and auditors who show up for no reason, stay far too long, leave behind piles of paperwork and demonstrate an attitude which says, “You’re here to dance to our tune. You exist to keep us busy.”

4.      We need public sector restraint. Earlier this year, the McGuinty government reported that the number of people earning $100,000 or more in the Ontario public sector had grown by 27 per cent – these are jobs being funded by you, the taxpayer. Ontario is the only province in Canada where the rate of public sector job creation exceeds the rate of private sector job creation.

5.      Finally, we need short term relief which will help families and businesses as well as provide a bit of good news in these trying times.

The status quo cannot continue. The current policy mix which consists largely of big taxing, big spending, big hiring, big raises, big regulations and big cheques being written without results, is not working.