Our economy needs action and a plan

Just when we thought things could not get much worse, a one-two punch has delivered a pair of black eyes to the McGuinty government, leaving local residents scrambling to deal with loss of livelihood.

This past Tuesday, saw news of an 18 billion dollar deficit, plus US Steel idling much of its Nanticoke and Hamilton operations.

On Wednesday, I stood in the legislature to demand answers of the Premier on how he plans to deal with what could be one of the biggest job loss announcements to ever hit this area.

“You supported our motion in December 2005, where we asked you for an immediate plan for the manufacturing sector in specific communities. You can't lose 270,000 manufacturing jobs based on steel and not have a plan for this now-gutting of primary industry. It's been nearly four years, specifically when will you announce your industrial strategy, a strategy for primary industry, specifically to deal with this devastation that was announced yesterday?"

I also reminded the Premier and the House of the government’s destruction of the tobacco economy and the abandonment of Haldimand’s building industry to land disputes.

Since 2005, we in Opposition have reminded government of its responsibility to reign in spending and institute a more business-friendly environment. These warning signs have not been heeded.

What’s even more dumbfounding than the record shortfall is the fact that Dalton McGuinty is currently raking in $27 billion in increased revenues - a 41 per cent increase since 2003. Ontario is also receiving $3.4 billion in additional transfers from the Harper government. But instead of saving some of this new tax revenue for a rainy day, this government spent every penny.

While it’s clear all province’s are dealing with the impact of the global economic downturn, it is also clear that this government has been less prepared than most.

This April, for the first time ever, Ontario will officially go on the dole to accept equalization payments from the federal government - to date the McGuinty Government has produced no plan to grow Ontario out of have not status.

Once the economic engine of Canada, Dalton McGuinty’s Ontario has become the slowest growing province in the country.

While other governments in Canada and around the world are taking action to stimulate job creation, investment and consumer spending in response to the deepening recession, the McGuinty Government seems paralyzed. 

I, for one, have been pushing an idea generated locally last November for a sales tax holiday on vehicle sales.

This paralysis in the face of this economic crisis has made Ontario extremely vulnerable. Unfortunately the working families at US Steel are the latest victims in a growing list of 275,000 lost well-paying manufacturing jobs.

Clearly, taxes and energy costs have a dramatic impact on where businesses choose to locate and remain. Given that Mr. McGuinty’s Ontario has the least competitive business tax structure in Canada and one of the highest marginal tax burdens on business investment in the world, it’s hardly a surprise the mess in which we find ourselves.

Action must be taken to improve Ontario’s competitiveness through smarter and less onerous taxation, reduced red tape and more strategic investments to stimulate economic growth. Action must be taken to help those impacted by the almost daily job loss announcements across our province and right here in Haldimand and Norfolk Counties.