Ontario Tories vow to tackle red ink
Ontario’s Progressive TORONTO Conservatives vowed to address the province’s ballooning debt and deficit without slashing jobs after a review of government finances revealed spending had grown dramatically under the previous Liberal regime.
The government insisted the findings were not a precursor to cuts but critics said the review released Tuesday presented spending figures out of context and marked the third announcement on the province’s finances in less than a week.
Treasury Board president Peter Bethlenfalvy said the review, combined with an independent commission that recently found the province was facing a $15-billion deficit, will help the government chart a course back to balanced budgets. “Faced with this challenge it would be irresponsible not to act,” he said. “With each passing day the shadow of these Liberal deficits will only grow.”
The review looking at 15 years of Liberal spending was commissioned this summer and conducted by accounting firm EY Canada. It had previously been called a lineby-line “audit” but Bethlenfalvy said that type of exercise would have taken far longer.
It found Ontario’s operating expenses grew by 55 per cent over 15 years and highlighted that the province’s debt stands at $331 billion — up from the $158 billion in 2003. The province now spends $12.6 billion a year on interest payments.
The report suggested finding savings through moves that included monetizing some assets and creating a “digital first” approach to government. Bethlenfalvy said the government will find savings by modernizing services and re-training some civil servants to avoid job loss. “This is not a blueprint for cuts,” he said of the review. “We will return Ontario to balance on a timetable that is modest, reasonable, responsible and pragmatic.” Sheila Block, senior economist for the Canadian Centre for Policy Alternatives, said the review presents spending and debt figures out of context and doesn’t take into account events like the global recession that occurred during the Liberals’ time in office.
NDP deputy leader Sara Singh said the review suggests the government is preparing to cut and privatize public assets. “What the report is telling us ... is this government is committed to making deep cuts,” she said.