Provincial Budget Takes Tentative Steps to Tackle Ontario’s Massive Deficit

A Release from the Greater Niagara (Ontario) Chamber of Commerce
 
Niagara, Ontario, March 2012– With a massive structural deficit and a continued sag in the global economy, the Ontario govenrment has released a budget (this March 27) that projects a return to balanced budgets in 2017-18.

Greater Niagara, Ontario Chamber CEO Walter Sendzik

The budget has been built on the projection of $17.7 billlion in savings in the next three years and $4.4. billion in new revenue growth. While the projections released in the budget signal that the Ontario government is getting serious about addressing the province’s debt load and structural deficit – the test will be in how the government fairs in cutting expenses and at the same encouraging investments in Ontario.
 
“The recently released Drummond Report provided a reality check for Ontarians,” explains Walter Sendzik, CEO Greater Niagara Chamber of Commerce. “The report clearly demonstrated that the Ontario government must change its way of doing business – and today’s budget doesn’t appear to be aligned with the report.” 

The budget does highlight the need to contain public sector wages – and this is a cornerstone of the projected savings. In addition, the budget signalled that the government would explore ways in which the private sector and not-for-profit sector can play a larger role in the management and delivery of services in the province.

“Along with the Ontario Chamber of Commerce, we have been an advocate for developing stronger partnerships between government and the private and NGO sectors,” continues Sendzik. “Businesses must be a key part of the government’s strategy to deal with the structural deficit – we can’t afford the current system. Combined with the government’s renewed commitment to reduce regulatory burden on business, there is a real opportunity to grow the economy and encourage investment in Ontario.” 

The budget also delayed cuts to the Ontario Corporate Income Tax rates after years of continued reductions.
 
“This is one area in which the Chamber is concerned,” adds Kithio Mwanzia, Director of Policy and Government Relations for the Greater Niagara Chamber. “The reduction in corporate taxes has proven to encourage re-investment into businesses in Ontario. While we understand the need to balance the budget, the province cannot afford to jeopardize its long-term economic growth.” 

Overall, the Ontario government has taken a few steps to really impact the province’s structural deficit. A competitive Ontario includes a robust private sector, an efficient and innovative public service and a fiscal environment that is balanced and properly managed.

As a means to address the local challenges and cultivate Niagara’s place in a more competitive Ontario, North American and global economy, the Greater Niagara Chamber of Commerce will be hosting the Niagara Economic Summit. The Summit will take place on Wednesday May 9, 2012 at the Scotia Bank Convention Centre. The summit will provide the opportunity to collectively develop an action plan for prosperity. Online registration is available at http://www.niagaraeconomicsummit.ca. Mark the date in your calendar and register for what will be an important day for Niagara.   

The Greater Niagara Chamber of Commerce is the champion for the Niagara business community. With over 1,300 members representing more than 30,000 employees, it is the largest chamber in Niagara, and one of the largest in Ontario.

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