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2006 - A taxpayer's year in review

Author: Neil Desai 2006/12/27
Simply put: deficits and high taxes wouldn't be necessary if politicians kept a tight rein on spending. For the first time under Premier McGunity's leadership the province achieved a modest $298-million surplus in 2006. That surplus was directly attributable to the hard work of Ontarians. However, no sooner did the government announce that they would - once again - be back in the red for 2007. Do they need to be

If our politicians put in as much effort into scrutinizing their spending as they do coming up with clever ways to squeeze a few more tax dollars out of us; we'd all be better off. Consider just a few examples from 2006 - and these are just the ones we know about - many of which carrying over into 2007.

- The ongoing standoff in Caledonia has cost Ontario taxpayers $40-million to this point. The province bought the disputed land for $15.8-million and another $6.9-million to purchase the surrounding land developments. Another $1.4-million was given in financial assistance to Caledonia businesses that have lost revenues. On top of $15-million the Ontario Provincial Police have already spent for around-the-clock security, police costs continue to grow as the days and weeks pass without a resolution.

- The 2006 auditor general's report revealed hundreds of millions of dollars in wasteful spending by government and crown corporations. The most notable finding within the report was the $127-million charged to Hydro One credit cards without adequate receipts. Hydro One CEO Tom Parkinson was found to have run $45,000 worth of expenses through his assistant's credit card. The government decided his punishment for such lax oversight and negligence was a $3-million severance package.

- Facing increased scrutiny, Premier McGuinty broke yet another election promise in 2006 by ramping up partisan government ads. After three years of modest government advertising, Ontarians were inundated with health care and education success stories on television, radio and print media. Just the air time alone for television ads has cost taxpayers $4.5-million to this point. Not to mention the validity of the Premier's claims that "class sizes and wait times are down" have come into question.

- With the year winding down at Queen's Park the Liberal government solidified their status as scrooge. They introduced a bill to increase MPP, cabinet minister and premier salaries by 22%. The bill also doubled their RRSP contribution to 10% of their annual salary. The pay raise, that will cost taxpayers an extra $3-million a year, was fast-tracked through the legislative process in time for the Christmas break.

Is it any wonder that mighty Ontario is the only province outside of tiny PEI that is projected to run a deficit in 2007 The premier needs to be reminded what got him his current position: his 2003 campaign promise to manage government in an efficient manner - including balanced budgets - and not raise taxes. He even signed a pledge!

A good starting point Demonstrate that he's serious about respecting Ontarians' tax dollars. The two twins: high taxes and deficits are caused by wasteful spending. A worthwhile New Year's Resolution for the premier to focus on as he heads into an election year.

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Franco Terrazzano
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