• CTF applauds Liberal deficit reduction focus
   
• Urges quick action to reduce spending and balance budget

Toronto: Canadian Taxpayers Federation (CTF) Ontario Director John Williamson reacted to Thursday's Speech from the Throne, the first since the election of Liberal Premier Dalton McGuinty.

"Following a series of mixed messages, Premier McGuinty's government appears ready to tackle the province's serious fiscal problems," said Mr. Williamson. "It is obvious the premier faces a rocky road ahead, but the Liberals promised voters throughout the election campaign they would live within their means if elected. Taxpayers demand this government be fiscally responsible."

The fiscal plan behind the Liberal election platform assumed a $2-billion deficit in the 2003/04 fiscal year. As Opposition leader, Mr. McGuinty said he would plug the gap and balance the budget. A post-election report prepared by Erik Peters, the former provincial Auditor, pegged Ontario's deficit at $5.6-billion.

"Because the government inherited a larger than predicted deficit they have earned some wiggle room. Yet taxpayers expect the deficit to drop by at least $2-billion this fiscal year. That is the amount Mr. McGuinty said he could easily handle," said Williamson. "A $5.6-billion deficit assumes 5 months of government inactivity and Mr. McGuinty was hardly elected to sit around and let the clock tick away. It is time for decisive action."

"This Throne Speech struck the right notes by making the deficit the top priority. It promised to control government spending before embarking on new initiatives. It promised to fix the finances rather than ignore the problem," observed Williamson. "What it failed to do, however, is indicate how the government will to that. Taxpayers must wait for the December economic update for these details."

"Many Ontario taxpayers will disagree with the Liberal's governing philosophy," concluded Williamson. "They say the government has a revenue problem; we say it has a spending problem and is growing too fast. They want to close private hospitals that deliver healthcare services and limit independent schools; we favour solutions to help patients get the care they need when they need it, and we favour parental choice in education. They think higher taxes will not harm the economy when we know lower tax jurisdictions create more jobs and outperform high tax jurisdictions. Still, the Liberal's determination to balance the budget will earn them support. Once Ontario is no longer running a deficit the larger philosophical debate will begin."