G
ganjavih
Guest
Chamber of Commerce report says Ontario could become have-not province
Canadian Press
August 24, 2005
TORONTO (CP) - A new report warns that Ontario, long considered one of the wealthiest areas in the country, is in jeopardy of becoming a have-not province within five years.
The report for the Ontario Chamber of Commerce blames a funding shortfall from the federal government, a favourite topic of Premier Dalton McGuinty.
McGuinty has long complained about what he calls the "fiscal gap" between what Ontarians pay in taxes to the federal government and what it gets back in programs and services.
He says the gap has reached $23 billion.
The report backs up McGuinty's complaints.
It concludes the principle of fairness has been taken out of Confederation, and the cost is becoming increasingly apparent in Ontario, and will ultimately hurt Canada.
"Ontario has never shirked its responsibilities to the federation - neither has it questioned the principles behind equalization programs," said Len Crispino, president of the chamber.
"However, the current formula doesn't work for Ontario - and it doesn't work for Canada."
Also troubling is the inability of governments to measure the results of the federal transfer system, the report concludes.
Release of the report - Fairness in Confederation Fiscal Imbalance: Driving Ontario to "Have Not" Status - comes as there is growing unease in Ontario over the money Alberta is receiving from soaring gas prices.
While the increase in energy prices has helped Alberta it has been hurting the economy in Ontario.
© The Canadian Press 2005
Canadian Press
August 24, 2005
TORONTO (CP) - A new report warns that Ontario, long considered one of the wealthiest areas in the country, is in jeopardy of becoming a have-not province within five years.
The report for the Ontario Chamber of Commerce blames a funding shortfall from the federal government, a favourite topic of Premier Dalton McGuinty.
McGuinty has long complained about what he calls the "fiscal gap" between what Ontarians pay in taxes to the federal government and what it gets back in programs and services.
He says the gap has reached $23 billion.
The report backs up McGuinty's complaints.
It concludes the principle of fairness has been taken out of Confederation, and the cost is becoming increasingly apparent in Ontario, and will ultimately hurt Canada.
"Ontario has never shirked its responsibilities to the federation - neither has it questioned the principles behind equalization programs," said Len Crispino, president of the chamber.
"However, the current formula doesn't work for Ontario - and it doesn't work for Canada."
Also troubling is the inability of governments to measure the results of the federal transfer system, the report concludes.
Release of the report - Fairness in Confederation Fiscal Imbalance: Driving Ontario to "Have Not" Status - comes as there is growing unease in Ontario over the money Alberta is receiving from soaring gas prices.
While the increase in energy prices has helped Alberta it has been hurting the economy in Ontario.
© The Canadian Press 2005