No tax cuts or hikes

Province stands pat with "bare bones" budget

By Kate McLaren, The Daily Press

Posted 13 hours ago

With the provincial government's release of a "bare bones" budget Tuesday, Northern leaders aren't applauding.

"The budget itself was nothing to write home about," said MPP Gilles Bisson (NDP — Timmins-James Bay). "There was nothing godawful about it, but there was nothing brand new either.

"Really, there were no new initiatives for Northerners."

Introducing a plan being described as a "stay the course" and "belt tightening" budget, Ontario Finance Minister Dwight Duncan announced spending will only increase by $1.2 billion in 2011. The province is not projected to operate in the black until at least 2017, if Ontario's economy continues to grow at a rate of about 2.5 to 2.8% per year.

"I think the government's trying to be overly optimistic with the numbers," said Bisson from Queen's Park Tuesday afternoon. "I don't believe the government will be able to maintain their spending at 12% for the next eight years.

"These revenue forecasts are very bullish."

While the government pledged to focus on core areas, providing $15 million in healthcare for breast cancer screening initiatives and $60,000 more post-secondary education spaces by 2015-16, Bisson said the Liberals missed the boat when it comes to helping families.

"They need to make a difference with daily living, especially here in Northern Ontario. We're paying more for everything right now and they should be talking about specific initiatives to help families survive from month to month."

He added the government should "get serious" about growing the Northern economy.

"We need a strategy in place, for example with the Ring of Fire. Within the next six or seven years, we can probably create four or five thousand good paying jobs up there, but there's no strategy in place right now to do this."

The government also announced mental heath initiatives for children and youth, risk management programs for farmers, and cost-saving strategies including cuts to public service jobs and closing "inefficient" jails.

For Minister of Northern Development, Mines and Forestry Micheal Gravelle, a notable incentive was the $10 million injection to the Northern Ontario Heritage Fund.

"We know that fund has been extraordinarily effective in terms of job creation in the North," he told The Daily Press Tuesday, adding the increased funds will likely lead to job creation.

"There's no doubt about it, there will be more jobs in Northern Ontario. The North has a very important mining supply and services sector that employs about 25,000 people. The NOHFC is a very effective tool economically, and this increase is showing the the government is proactively trying to deal with economic challenges."

Gravelle also lauded the government's "recommitment" to the Ring of Fire development from the 2010 budget.

"They've made it clear that they support the advancement of opportunities in the Far North and with the Ring of Fire. They're very committed to the Open Ontario Plan.

"Their goals are very realistic and practical."

MPP Randy Hillier (PC — Lanark, Frontenac, Lennox and Addington), the Conservatives' critic for northern development, mines and forestry said he saw nothing that will benefit Northerners in the 300 page document.

"I can't say a whole lot about it, because there wasn't much in there. It's empty of tangible, concrete ideas about how to move us off the course we've been on, which is not good.

"There was nothing in there for mining, nothing in there for forestry, nothing to alleviate the high cost of energy in Northern Ontario."

Hillier said he would have liked to see things like an exemption on HST for fuel and home heating costs, but instead saw the North "left out."

"I really don't know that there's anything people can do to get the government to recognize the value of Northern Ontario, because I don't think they see enough votes up here to really make a difference."