The Circus Comes to Queen's Park:McGuinty's Politics of Diversion
Author:
Tasha Kheiriddin
2005/02/22
When the Ontario legislature resumed last week, Premier Dalton McGuinty's Liberals staged the equivalent of a three-ring circus. Sideshows included the banning of pit bulls and promoting the Toronto greenbelt legislation. Over on the main stage, Ontario's Premier decided to pick a fight with his Liberals cousins in Ottawa. The theory goes, what worked for Newfoundland Premier Danny Williams, will work for Mr. McGuinty!
What about the real problems that face Ontarians The province is in debt to the tune of $125 billion. The premier and his health minister continue to fight with doctors and nurses. Ontario teachers are on the verge of a strike. Yet all the Premier is doing is pointing fingers, banning dogs and hugging trees.
Beware, Mr. Premier: Ontarians won't be fooled. But they should be worried. After all, when he got elected, Mr. McGuinty played the blame game with the previous government, claiming that their deficit caught his government by surprise. (Never mind that Liberal finance critic Gerry Phillips publicly referred to a "5-billion dollar hole in the budget" as early as June 2003). Mr. McGuinty used that excuse to introduce the largest tax hike in over a decade, abandon his promise to balance the books, and cut optometry, chiropractic and physiotherapy services. The result is that middle class taxpayers are shelling out 16% more in taxes, and getting fewer health care services to boot.
So what can taxpayers expect if this second round of blaming doesn't produce cash from Ottawa Neither the premier nor his finance minister will confirm that this year's budget won't raise taxes again. What "sources" in the finance ministry are telling reporters is that the government now may not balance the budget by the end of its first term. This is inexcusable. The government will already waste $4 billion of taxpayers' money in interest payments on the $12 billion in new debt they originally planned to incur. That's $4 billion that will not buy a single textbook, hospital bed or provide tax relief.
Since the Health Tax was introduced, Ontarians have had to readjust their household budgets and are spending less money. The result of a decline in consumer spending is that government revenues from sales taxes are lower than anticipated and job growth is slower than the previous year. Furthermore, not balancing the books will only add to the total debt of Ontario and the interest payments owed, setting Ontario up for long term economic headaches reminiscent of the $66 billion in provincial debt racked up by former Premier Bob Rae.
The Premier should stop pointing fingers and take responsibility for his problems. There are many ways the provincial government could save money in its upcoming budget. Mr. McGuinty should start by reexamining public-sector wages and benefits which currently consume some 75% of spending in health and education. Are taxpayers getting the best value for their dollars, or could some services be performed more cost-effectively by the private sector If Ontario followed the example of British Columbia, which outsourced health care services such as cleaning, security and food preparation, it could reap over a billion dollars in savings and cut back or eliminate the odious Health Tax. Yet the Premier prefers to grandstand at Queen's Park and pass resolutions calling for more federal funds instead.
The politics of diversion may distract voters in the short run, but will do nothing to cure Ontario's problems. The government would do far better to close down the circus and get its own house in order - before voters fold up its tent in 2007.