Keeping Questionable Company

"The Ontario Ministry of Finance has looked at this situation from left, from right, from up, from down. They're conscious of how much debt has gotten piled on. They're going to be trying to get the message across that something has to change."

Ontario represents "a jurisdiction that has just not even mentally started to come to grips with the problem. Ontario isn't Greece by a long shot, but time isn't really on our side." William Robson

Ontario simply doesn't have its house in order. There are multiple reasons, there always are. An inefficient, incapable government to begin with. The inevitable impact on the economy dependent on trade and manufacturing connections with its largest trading partner suffering an economic slowdown of huge proportions. Some things are outside the control of government, many things are not, and the current Liberal-led government of Dalton McGuinty has made some unfortunate decisions that have impacted deleteriously on the province.

When Dalton McGuinty came to power eight years ago, promising no new taxes, the net provincial debt was considered to be high but manageable. It was under $139-billion. Eight years later it is over $240-billion and it is alarming financial experts who see it accelerating to reach $285-billion in two more years. That, in the space of ten years, represents a doubling of the provincial debt. This does not represent good fiscal management on the part of the government on behalf of the taxpayers of the province who elected D. McGuinty.

Including the provincial share of the federal debt the burden for taxpayers represents close to 72% of the gross domestic product for Ontario. For international comparisons that brings us alongside Ireland, Spain and France. We hear much of the parlous state of California's financial situation and can't quite believe it when we hear that the state may not be able to pay its workers in key public institutions from time to time.

How's this for perspective; every Ontarian, thanks to Premier McGuinty's fumbling waste and poor decision-making, effectively owes over $18,000 to the province's creditors. It is entirely possible that continuing on this trajectory Ontario's credit rating may be downgraded. If that should occur, the province will be forced to pay a much, much higher rate of interest on its debt. Interest on the debt already cost us $9.7-billion for 1010-11.

Our budget deficits are endangering our fiscal future and that of our grandchildren. "Neither Dalton McGuinty nor Tim Hudak nor anyone has talked realistically to Ontarians about what needs to happen in order to make sure our children, when they;'re our age, will be in a situation that will be economically or politically tolerable", advised William Robson, C.D. Howe Institute CEO.

So how're you voting on October 6th? See many tempting choices? Do we have a voice of common sense anywhere in the mess we've landed ourselves in?