Ontario ‘broadly committed’ to reducing tax and regulatory burdens: minister
Mini-budget set to be released amid ‘uncertain times’ for global economy
TORONTO Ontario’s finance minister says the province’s Progressive Conservative government remains “broadly committed” to reducing corporate taxes and regulations ahead of a mini-budget of sorts set to be delivered early next month.
Finance Minister Rod Phillips announced last week that Ontario’s fall economic statement will be released Nov. 6, but that it would arrive amid “uncertain times” for the global economy and as Ontario is looking to ensure its competitiveness in those turbulent conditions.
Asked what the province is considering to increase its competitiveness, Phillips said they would wait until the fiscal update to provide any specifics.
“But we are broadly committed to reducing the burden on job creators in terms of the tax burden and the regulatory burden in such a way that they are able to be successful locally, but also compete,” Phillips said after speaking at Bloomberg ’s Canadian fixed-income conference in New York on Wednesday.
The finance minister pointed to steps the province had already taken, such as a pledge to cut 25 per cent of regulatory requirements for businesses by 2020.
Ontario’s PC government, led by Premier Doug Ford, also pledged in their spring budget $3.8-billion in tax savings over six years via faster writeoffs of capital investments for businesses, mirroring a step taken by the federal Liberal government.
Ford’s government said it would parallel such a federal measure in their 2018 fall fiscal update, and the commitment took the place of a campaign pledge by the PCs to cut the province’s corporate income tax rate to 10.5 per cent from 11.5 per cent.
“Our trajectory and our record are quite clear on this, but you will have to wait for future statements and budgets for the specifics,” Phillips told the Financial Post when asked about any future tax relief.
Possibly standing in the way of any big tax cuts is Ontario’s net debt, which has been forecast to hit $360 billion for 2019-20. Phillips — the former chairman of the board of directors of Postmedia Network Canada Corp., which owns the Financial Post — has said the coming fiscal update would show the Ford government is on track to beat its previous 2019-20 deficit projection of $10.3 billion.
The Ontario Conservatives are aiming for a balanced budget by 2023-24, after the next provincial election.
Ontario’s PCs have, however, been accused by rivals of understating the province’s financial position, with recent public accounts showing the 2018-19 deficit was $7.4 billion, about half the $15-billion shortfall they once estimated.
Phillips said that while in New York he also met with investors, including some in the private-equity industry, about the possibility of bringing jobs and investment to Ontario.
The finance minister’s remarks came a day after it was announced that the provincially owned Ontario Cannabis Store will consult with marijuana producers and retailers on possible ways to increase their participation in delivering pot to stores.
Phillips said the government is still intending to move toward a more “market-based” system for cannabis in Ontario.
“What that means and what the Cannabis Store is out consulting on right now is looking at the creative ways that we can take advantage of … how that supply chain works, how we can effectively make sure that the government is playing its role, but not overplaying its role, in terms of the system going forward,” he said.
Ontario has had a relatively slow rollout of privately owned cannabis stores that the government blames on supply shortages. A change in retail direction from government-owned to private by the PCs also helped contribute to a $42-million loss the province’s cannabis company reported for its fiscal year ended March 31.