Is Ontario heading into an economic storm?

Ontario is potentially facing an economic storm and instead of changing course, the McGuinty crew has us heading straight for it, as they fiddle with long-standing traditions like the Lord’s Prayer.

Currently, we are debating speed limiters on trucks; however, there may be no trucks left on the road if the brakes are put to our economy.

As of next year, Canada will be out of the business of building pickup trucks.

On the heels of this bad news General Motors will be closing its Windsor plant by the middle of 2010 – another 1,400 jobs in the ditch. In May, 1,000 jobs terminated at the GM plant in Oshawa plus another 2,600 people gone in 2009 with the GM pickup truck shutdown.

Ontario has lost 50,000 manufacturing jobs over the past year -- a total of 15,000 in April alone. The University of Toronto’s Institute for Policy Analysis indicates Ontario is in a recession. Further, TD Economics identifies Ontario on the verge of have-not status.

Clearly, the private sector is in contraction, with declines led by forestry, agriculture, manufacturing, finance, insurance and real estate.

Statistics Canada says that while Newfoundland and Manitoba enjoy record high job creation and employment rates, Ontario suffered the nation’s slowest economic growth in 2007. Ontario’s unemployment rate sits above the national average.

When asked about job losses in Ontario, the Premier actually boasts that there are more jobs in Ontario today than there were in December 2007 – what he doesn’t tell us is that the bulk of new jobs created in this province are in government. Since taking office, McGuinty has added 102,000 more government jobs to the provincial payroll – these are jobs paid for by taxpayers.

Those who have been fortunate enough to find employment are often struggling because their job does not provide an adequate living standard. The Liberals tax-and-spend style of governing is making it harder for people to face daily commitments, let alone save for the future.

The regrettable truth is that there are far too many businesses and families barely getting by.

High taxes and heavy regulation are chasing jobs out of Ontario. Our economy is approaching crisis. Ontarians are losing their jobs, farmers are cutting down their orchards and businesses are closing their doors. What the McGuinty government needs to do immediately is lower the business tax burden, cut red tape and provide middle-class families and seniors a break so all can spend more money locally.

Recently, PC Leader John Tory and Finance Critic Tim Hudak called on the McGuinty government to remove the Retail Sales Tax on hotels and attractions for the summer months. This would ease the burden on families looking to have fun. This would stimulate tourism, and in turn boost the economy.

A weak Ontario economy stems from weak leadership. The Premier has been asked several times whether or not the province is headed for a recession but he dodges the question. The tough challenges our economy and taxpayers are currently facing, with a looming recession, will not magically disappear if government pretends they aren’t there. 

The Premier needs to change course and focus on making Ontario more attractive to outside investors by controlling government spending, providing businesses with tax relief and ensuring families have money left in their pockets at the end of the week.