Conservatives sneer at provincial budget
By Bill Rea

Finance Minister Dwight Duncan seemed pretty impressed with the provincial budget he brought down last week, and his fellow Liberals are cheering him.

But the same can't be said for Conservatives, both in Ottawa and at Queen's Park.

"Our economy today remains as strong and resilient as Ontarians themselves and it outperformed expectations this year," Duncan declared in his address to the legislature last Tuesday.

He also acknowledged "a number of challenges that are creating uncertainty," including "a slowing U.S. economy, rising oil prices and a higher-than-anticipated Canadian dollar are reducing growth forecasts and creating greater uncertainty here in Ontario."

But he also said this was the Liberal government's third balanced budget in a row.

He also announced the budget is investing in skills and education, including $1.5 billion over three years in the government's Skills to Jobs Action Plan. Duncan also promised improved access to health care by expanding nurse practitioner led clinics and providing more personal support workers over the next three years..

Duncan also made good on his promise to invest another $1 billion in municipal infrastructure.

As well, he pledged another $750 million in business tax relief over the next four years.

There's also been controversy lately, with federal Finance Minister Jim Flaherty holding a news conference to call on the government to make more cuts to business taxes, to the indignation of Duncan and Premier Dalton Mcguinty. That followed previous suggestions from Flaherty that Ontario is not a good place to invest.

"There's so much onetime spending in it," declared York-Simcoe MPP Julia Munro, reacting to the budget.

She pointed out municipalities will be getting infrastructure money, but added "it doesn't give them the ability to plan and it's certainly not stable funding.

"Obviously, they're not going to say no, but it's not helpful," she added.

Munro also took note of the plan to spend $355 million on retraining, pointing out it will aid 20,000 people. But she added there have been 194,000 jobs lost in the manufacturing sector, so 20,000 is not much.

Munro said the Progressive Conservative platform in 2003 talked of the need to ease the burden on senior homeowners, and the government has finally addressed that with a $250 grant for seniors who need it, with it going up to $500 by 2010.

In terms of long-term care, Munro said the sector had wanted an increase of $513 million, and is only getting $107 million over three years.

"I think people have done the math," she said.

Addressing Flaherty's comments, Munro thought he was within his rights. He represents an Ontario riding, so whatever is in the budget is going to impact on his constituents.

"There's certainly a legitimacy in his concern," she remarked, adding a lot of what he said has been echoed by economists all over the country, with concerns that Ontario could end up being a have-not province," she said.

York-Simcoe MP Peter Van Loan said he was a little disappointed the budget didn't do more to lower taxes to create jobs.

He said Ontario has the highest business taxes of any jurisdiction in North America, and there's a lot of concern about what that does for the province's economy.

He also pointed out most of the new programs and initiatives that Duncan announced are being paid for with federal funds.

"The real concern continues to be the competitiveness of the economy and high taxes," he said.

Not surprisingly, Van Loan had few problems with his cabinet colleague Flaherty getting involved.

"He's simple making the same point about the importance of Ontario's economy," Van Loan said. "The point he's making is a simple one.

"No Canadian wants to see Ontario become a havenot province."

He also pointed out Flaherty's been less critical than the former Liberal government was of Ontario when Bob Rae was premier.

"We think we're offering positive, constructive advice," he said.