| MPP
Arnott Responds to Liberal Budget Deficit Announcement
Yesterday’s
announcement that the Liberal Government has inherited
a significant provincial deficit included more politics
than substance. It has taken the new Government less
than a week to begin to set the stage for breaking many
of their key spending commitments.
There
are some important facts that Waterloo-Wellington residents
need to know:
1.
In the lead up to the October 2nd election, our Government
Caucus was never officially informed that a deficit
was anticipated this fiscal year (April 1st, 2003 to
March 31st, 2004). A balanced budget was planned and
was debated in the Legislature. I believe that if the
Conservative Government had been re-elected, the Budget
would have been balanced by the end of the fiscal year.
It would not have been easy, but I believe that it would
have been done, as has been the case the past four years.
2.
There are still five months left in the current fiscal
year, which is ample time for the new Government to
reduce wasteful Government spending and cut the size
of this projected deficit substantially.
3.
Based on what I have read from former Provincial Auditor
Erik Peters’ presentation yesterday, it appears to me
that the former Government’s revenue predictions in
the Budget may have been overly optimistic. It is easy
to criticize in hindsight, but when the Budget was being
developed this past spring the Finance Minister could
not have foreseen the negative impact of SARS and Mad
Cow Disease. As well a weaker American dollar and continued
sluggishness in the U.S. economy have apparently hurt
our exports to the United States.
4.
It is true that the former Government had planned to
sell some Government assets as part of its balanced
Budget plan. Everyone may not agree that this was the
right thing to do, but I believe that if it can be proven
that the private sector can perform a current Government
function better and cheaper, it makes sense to consider
this option.
5.
In generating the new projected deficit number, Mr.
Peters has added in Hydro debt numbers. This is a departure
from past practice of Provincial Governments of all
stripes. The Hydro accounts have always been kept separate
from the Provincial Government’s books. Hydro ratepayers
have always been on the hook for Hydro debt, not taxpayers.
6.
If the new Government is unable to make the tough decisions
needed to balance the Budget this year, we are in for
a long four years. The Ontario Legislature should be
recalled immediately to debate the Province’s finances
and provide MPPs with the opportunity to offer constructive
criticism.
Ted
Arnott, M.P.P.
Waterloo-Wellington
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