We now have a made-in-Ontario deficit

I write this week’s column to address the economic mess in which we now find ourselves in the Province of Ontario.

We've been getting the warning signs from the banks, and this government has been receiving the warning signs from the Opposition for some time now, that tough times were coming.

Last week, the McGuinty government announced a $500 million deficit. But only seven months ago the provincial ledger showed $5.6 billion in excess revenue and $800 million in reserve. That money has disappeared.

Despite five years of prosperity, we now have a made-in-Ontario deficit. This shortfall is resulting from a 50 per cent increase in program spending; the implementation of the largest tax hike in the history of Ontario; and the creation of more government jobs than all the other provinces combined.

I don't think a lot of people in our area made a lot of money in the last few years when the stock market was being artificially revved up with easy money. I do worry that if this government does not get its act together, people in my riding-I think of farmers, truckers, industrial workers, small business people-are all presently about to get kicked in the teeth. I think of the cattlemen, tobacco growers, and the young farmers in my riding getting into hog production. People living in Caledonia, people living throughout Haldimand County, are pretty well at the end of their rope. They've already been kicked in the teeth.

We now have a finance minister who recently suggested to the media that last week’s upcoming economic statement will be printed in red ink. That generates more concern about his ability, let alone his willingness, to deal with these economic times.

Seven months ago this government stressed that to achieve a balanced budget, they would be looking for a billion dollars in savings and efficiencies. Here's the question: Where are these savings and efficiencies?

Are the wheels falling off this Ontario economy?

Both the Bank of Montreal and the Bank of Nova Scotia are predicting a recession, not only in Ontario but across Canada. Ontario's real gross domestic product declined 0.3% in the first quarter of this year, 2008. That's following a mere 0.1% increase in the fourth quarter of 2007.

People in Ontario are angry about this government's economic mess. In the last fiscal year, revenues were $5.6 billion higher than expected, but instead of saving for a rainy day, this government spent every penny.

In 2004, Premier McGuinty introduced the largest tax increase in the history of Ontario and ran up a deficit. Revenues went from $69 billion then to a whopping $97 billion, but this government spent it as quickly as it came in.
Spending increased by close to 50 per cent over those 5 years. This crew thought the good times would last forever.

Five years of overspending and five years of overtaxing and year-end spending sprees have left Ontario weakened and vulnerable. The money has been spent. The recipients will not be returning any of it.

Even though we had five relatively good years, nothing was salted away for the rainy days that are now upon us. It's sad, really, but, as they say, the toothpaste is out of the tube. This government needs advice. This government needs help.