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Why I Didn't Weigh In on the Budget

Posted: 04/25/2012 4:49 pm

On April 23, Ontarians were handed a patchwork budget deal between the Liberals and NDP, which actually increases government spending in the face of a looming $30 billion deficit. This is called "digging a deeper hole."

But being an optimist, I prefer to look at the budget deal as just another short-term setback under the Ontario Liberals. Our province can still have a bright future. But to get there, we need some straight talk about the situation we're in at present.

So here's the truth: We've got big problems. The money's run out. It's been a long time coming under this government. But it was made worse when the Liberals chose the wrong path after last October's election when faced with two directions. The first path called for urgent action to reduce the bloated size and cost of government and build a dynamic, thriving and growing private sector to create jobs. This is the route I called for.

The other path maintains the status quo. It celebrates mediocrity and accepts anemic growth and chronic unemployment as a given. Worse than having no jobs plan, this budget actually throws up barriers to job creation by increasing taxes on entrepreneurs. This weak response to our jobs, spending and debt crisis means the government remains on course toward tripling our accumulated debt. Yet this is the path the Premier chose.

The way I see it, by contrast, Ontario has all kinds of advantages to build on to take us in a new direction. A skilled, motivated workforce. Lots of people who think, invent, create, grow, mine, forge and build products and services in demand around the world. Bountiful natural resources. And a prime location in the heart of the North American marketplace.

We're missing just one key ingredient -- real leadership on jobs and our economy.

We need a different path, and a new team with new ideas. Yes, we need to reduce the size and cost of government. But you can't "cut" your way to prosperity. We need to grow our private sector to create jobs too.

We need to plan for the unexpected as well, like a sudden spike in interest rates. Today these are at record lows and have nowhere to go but up. A mere one per cent increase in borrowing costs would result in an additional $500 million needed to service our debt. This would wipe out fully one quarter of the savings targets contained in the budget. It could pay for a quarter of a million MRI exams, as just one example. But under this budget, it would go to line the pockets of overseas lenders instead.

And these are just a few examples of a government that just doesn't get the seriousness of the situation. But Ontarians do. We've been down before. But with new ideas and the commitment to make them work, we can come roaring back again.

Until then, if you're still wondering why I didn't wade into the post-budget soap opera, I hope this gives you your answer. There are enough people digging Ontario into a hole. I wasn't about to contribute another shovel.

Put a different way, no amount of tinkering would have fixed this budget. Our position will continue to worsen under a Premier who refuses to take accountability for the problems he himself has created over the last nine years. We cannot afford to sit and debate small change, when what we need is big change.

We need a government that understands the key sequence: that getting your fiscal house in order leads to balanced budgets and lower taxes, which in turn leads to prosperity and an ability to afford the things people really care about -- like dependable health care and excellence in education.

Above all, we need a government that understands the link between debt reduction and job creation. Businesses know that heavily-indebted jurisdictions can't afford the things that make them attractive places for relocation, or expansion. Things like competitive taxes and good infrastructure.

It's called "getting the fundamentals right." And it's a plan of action that I'm committed to delivering for the people of Ontario.

 
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On April 23, Ontarians were handed a patchwork budget deal between the Liberals and NDP, which actually increases government spending in the face of a looming $30 billion deficit. This is called "digg...
On April 23, Ontarians were handed a patchwork budget deal between the Liberals and NDP, which actually increases government spending in the face of a looming $30 billion deficit. This is called "digg...
 
 
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02:50 AM on 05/01/2012
Hudak you didn't get involved because you had no answers other than the ones that Ford has - spend more on what isn't needed and get rid of what is needed and sell whatever is making money.
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HUFFPOST SUPER USER
djelimon17
what's this thing for?
09:04 AM on 04/27/2012
Basically what this article says to me is that if you can't be the premier, you don't want any part of parliament.

I'd be okay with that - I'm an NDP supporter - if you weren't drawing a salary from the taxpayer.
10:50 PM on 04/26/2012
S&P is heard more than you, take a look at Mulcair, you need to be more like him, not his policies, but like him.
Why did the libs get in under chrentien, becuase they said everything that Brian M did was bad, you have to make noise, lots of it.
The NDP leader is a sheep and she gets heard more than you
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09:12 PM on 04/26/2012
I don't believe a PC government would do any better . Ontario reelected the Liberals ; If the PC got in Im sure there hands would of been tied to make changes . In times of a recession ; i believe it is better to leave the current government in powerand not even have an election . The election cost to much for the TAX payers. You know the guy on the street working himself to death. PC are the very last people I would vote for in fact I didn't vote after looking at the High price candidates the PC Party had..University Professors who can hardly speak English..Im sure not going to add to there payroll . Jesus what ever happen to the down to earth person trying to run in an election . It would seem to run you have to either a businessman or a well educated person who has some pull in Politics . Maybe we are paying these people in the ONtario government to much money. How about them taking a cut. Politicians are no different from there MP 's in Ottawa; spend spend. I know the one's in Ottawa are paid to much.. wish I had a gas allowance and a pension for life after 4 years on the MP's job
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Awake-and-Sing
named after a great play written by Clifford Odets
07:45 PM on 04/26/2012
The conservatives simply wanted to try and trigger another provincial election which they delusionally believe they would win. They still cannot believe they blew the last election.
04:43 PM on 04/26/2012
Make a deal to bring in Quebec Hydro, cancel the Samsung Boondogle, let accountants figure out if the public sector is productive and invest in workforce training. We need more Alliston Honda style investments. I hope you get in within the next year, knowing you have 1 kick at the can. If not, make way for a new Conservative leader to get Ontario back to the Bill Davis way. Oh yeah, get rid of the Humans Rights Tribunals too.

G.L.
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Ian Llangan
Your Invisible Sky Friend Is Morally Abhorrent
07:07 PM on 04/26/2012
He'll never be Premier. But you can keep dreaming.
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11:35 AM on 04/26/2012
Those last numbers are obviously unemployment numbers, just in case its confusing.
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11:34 AM on 04/26/2012
Where are the numbers?
He sounds like a Republican... "The money's run out!" or "the money is running out!"
Really? When? Because as it stands our government is still running and paying out money.
Just because its not a healthy situation to be in economically it does not mean that you can use hyperbolic expressions like that.
And how do you pay for education and healthcare by lowering taxes? You cannot pay for quality versions of those things without more money, not less money (which would merely throw the budget out of whack worse). Where are your numbers Hudak? At least lie to me and say "Under my plan which I totally wrote and tried to convince the other parties to agree on, we would have a working budget by 2015 with XXX set aside for education and healthcare."
Wait, you did use a number! "This budget will triple the debt!" Really? So why does McGuinty say that it will balance the budgets? Oh right, you assume that taxation (which is necessary for welfare goods like healthcare) is always bad and necessarily leads to poverty and a lack of jobs. However, taxes are higher in Scandinavia and they have some of the highest innovation rates (entrepreneurial spirit) in the world, as well as a high employment, with Norway leading the way I believe with their 3.2%. Ontario's is 7.8% and we have smaller tax burden. So no, that premise alone does not lead to your conclusion.
11:32 AM on 04/26/2012
As a conservative voter, Mr. Hudak's failure to run a campaign worthy of a majority (or even a parliamentary minority) that has saddled us with another Liberal tenure. It was his to lose, and he did. As such, the people have spoken and Mr. Hudak's first obligation was to positively influence the budget towards sustainability and fiscal prudence. The failure to do that is a failure in leadership and politicking, just like this article. Will a real (Conservative) leader please stand up?
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Maria Korovessis Sewell
To decimate is to reduce by one tenth.
11:03 AM on 04/26/2012
We do need a government that 'understands the sequence'. Hudak identifies the sequence as serving big business, and hoping the benefits trickle down. Apparently, a majority of Ontarians do not.
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Winterseeker
For the trees...we need them, not vice versa.
10:51 AM on 04/26/2012
...And he wonders why he doesn't get elected - dude your time has come and you made the wrong choice - working with parties to support things that your repeatedly claim to be your priorities, "families, health, economy" and so forth is the only way to get things done. Its about being a stakeholder, representing the interests of as many groups as possible and having to deal with some compromise, not sitting and ranting in a corner about how you are the best and how everyone else is the worst. This government has had its struggles, woes and criticisms but it has done amazing things for the environment and education we can't even dream about with the PC (at all levels it seems these days/)...combine this with the rare show of compromise and teamwork and we have a party that, wait for it, is elected! Wow, what an idea.
10:49 AM on 04/26/2012
This is the inevitable situation when govt gives people what they want, not what they need.
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Ian Llangan
Your Invisible Sky Friend Is Morally Abhorrent
10:22 AM on 04/26/2012
Ah, I knew it was only a matter of time before Mike Harris's robotic miniature replica would weigh in. Mr. Hudak, you will never be Premier of the province of Ontario. As terrible as Ontarians' memories are of Bob Rae's Reign of Error, they pale in comparison to the ham-fisted arrogance of Harris and his cabinet ministers, who did more damage to this province than can ever be undone. Go away. You are Not Wanted On The Voyage.
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Norma Ward
09:47 AM on 04/26/2012
Here is a three decade look at Ontario's budget problems:

http://viableopposition.blogspot.ca/2012/03/ontarios-fiscal-history-it-is-not.html

As many of us will soon find out, decades of government overspending is most likely leading to a situation where no matter how much the economy grows, governments are forced to spend more than they take in simply because interest owing on the debt will outstrip growth in revenue.
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john frodo
armchair expert
09:14 AM on 04/26/2012
Tiny Tim Tea Bagger solutions will not work in a real world.