McGuinty ignored the warnings: MPP Ted Arnott

Posted: Oct. 25, 2008 Under: Halton Region Permanent Link to this Article

“The economy is slowing down, their overall spending is out of control, they have no margin for error, and their expectations for year-end savings are inflated. I think it’s very likely that they won’t be able to balance their budget at the end of 2008-2009. That means a deficit is a real possibility.” – Wellington-Halton Hills MPP Ted Arnott, Provincial Budget Day, March 25, 2008

After repeated warnings of economic challenge, the McGuinty Liberal government finally acknowledged the obvious: Ontario has a deficit.

In today’s economic statement, Ontario Finance Minister Dwight Duncan was forced to downgrade his economic growth assumptions and now estimates a deficit of a half a billion dollars this year.

“The McGuinty government has thrown its March budget assumptions out the window,” said Wellington-Halton Hills MPP Ted Arnott. “They ignored our warnings, refused to plan prudently, and now Ontario is in the red—Liberal red.”

The $500-million deficit projection will probably be even higher, he added, saying that the government’s plans to find $1.1 billion in year-end savings will most likely never materialize.

“This could mean a deficit of as high as $1.6 billion,” explained Mr. Arnott. “We know from the Bob Rae years that today’s deficits are tomorrow’s higher taxes.”

When the Liberal government projected a balanced budget last March, Mr. Arnott disputed its assumptions, pointing to the real possibility of a deficit.

“I wish I had been wrong,” he said. “It’s now painfully obvious that the government failed to plan effectively for this economic downturn.”

Among the biggest casualties of the McGuinty mismanagement is the Ministry of Tourism, which faces a crippling 25-percent cut.

Mr. Arnott is a long-time member of the Standing Committee on Finance and Economic Affairs, and serves as his party’s tourism critic.

McGuinty ignored the warnings: MPP Ted Arnott

Support Our Sponsors