• Council Should Freeze Spending Increases
  

Toronto: The Canadian Taxpayers Federation (CTF) today called on Toronto city council to investigate avenues to undo the very quiet and lucrative contract awarded to Toronto firefighters last June and to make it clear to all labour units that inflation will be the high water mark for new contracts with a freeze as the starting point. Council should also announce a freeze in spending increases for next year. CTF Ontario Director, Kevin Gaudet said, "council set fire to taxpayers this week by imposing a $300 million tax hike. Instead of fanning the flames with lucrative contracts, it is time for council and labour to do its part. Taxpayers expect city hall to lead by example, to tighten their belts, to share the pain, not to hand out lucrative pay hikes."

Earlier this week city council approved two new taxes - a new land transfer tax and a vehicle registration tax. These are on top of the new garbage tax and the 3.8% property tax. Combined, when fully implemented, these taxes will generate $436 million per year in new revenue for the city.

Yesterday it was revealed that in June, in the middle of the debate about the alleged fiscal crisis in Toronto, firefighters were quietly handed a generous contract renewal of 9.66% over three years. This amounts to 50% above the rate of inflation and sets a dangerously expensive benchmark for other labour agreements up for renewal.

Gaudet concluded, "council has so far refused to come up with a single measure to reduce spending and get its fiscal house in order, so spending should be frozen until they do. Under Mayor Miller's tenure spending has increased at three times the rate of inflation, which is simply unsustainable."

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For more information please contact:
Kevin Gaudet at 416-203-0030 office or mobile 416-725-0501