For Immediate Release
May 19, 2004

 

Queen’s Park Report

By Lanark-Carleton MPP Norm Sterling

 

Liberal Budget Picks Local Pockets

When the McGuinty government delivered its first budget on May 18, it reminded me of the early 1990s when Bob Rae’s NDP government slipped into a tax and spend approach to government that devastated Ontario.

As I sat in the legislature listening to the Finance Minister trying to explain away why his government was breaking more promises, I thought about the average working family living in the Valley. I thought about how hard it is getting for these folks to keep their heads above water financially. Faced with skyrocketing gas prices, rising hydro rates and soaring insurance premiums, the last thing they needed was a provincial government bent on raising taxes.

Unfortunately, that’s what they got. This budget is all about higher taxes and reduced health care services for you and me.

A new health tax introduced in the McGuinty budget means a family with two children and a combined income of $60,000 will pay $600 a year. Overall, this same family will receive a 26 percent hike in provincial taxes under this budget. You might ask what you will get for paying this new health tax. Well, the Premier has decided this extra tax will mean you actually receive less health care. That’s because while the government collects more money from you, it is also de-listing basic health services many residents rely upon. It means, for most Ontarians, OHIP will no longer cover the cost of optometry exams, chiropractic services and physiotherapy services.

Many of you will recall how just eight months ago Dalton McGuinty pledged to balance the budget, hold the line of taxes and expand health care. In government, he has broken all three promises. He is presiding over the largest tax hike in more than a decade, planning on multi-year deficits, and reducing the health care service funded under OHIP.

In my discussions with constituents about this betrayal of the public trust, I have committed to fighting this budget at Queen’s Park. I know that the average family in our area simply cannot afford to pay anymore.

In total, new fees, charges and taxes delivered in this budget will draw $9.7 billion into government coffers. For example, electricity consumers, who have already seen their bills rise after the Liberal government broke a promise to cap rates, will be forced to swallow an additional $3.9 billion in hydro costs. As well, motorists can expect to pay 50 percent more when they renew their driver’s licence.

The return to deficit financing is an issue that needs to be fully understood because it can mean further costs down the road – especially for our children and grandchildren. While raising taxes, the Liberal government is still running a $6.1 billion operating deficit and adding $12 billion in provincial debt during their mandate.

The government is refusing to be held accountable for their own financial mismanagement. They have talked a lot about the province’s deficit but taken no action toward its elimination. Instead, the McGuinty government has recklessly introduced billions of dollars in new spending since taking office.

This will mean more money will have to be earmarked to cover interest costs on the growing debt. That results in less money being available for priority services like health and education.

This budget is devastating locally and provincially. My colleagues and I will not stand by and watch this government tear down the economic foundation and one million new jobs we helped create over the past eight years.

Employers and families in Lanark-Carleton and across the province have worked too hard to have the Liberal government’s reckless tax and spend agenda erode confidence and prosperity in our province. We will continue to oppose higher taxes and fight to protect the vital services that Ontarians value most.

On your behalf, I will fight this budget every step of the way.

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