THUNDER BAY, ON - May 29, 2009 - Ontario’s Minister of Finance Hon. Dwight Duncan was in Thunder Bay on a working meeting with local politicians and business leaders. In the afternoon he agreed to meet briefly with members of the media at the Prince Arthur Hotel. The following is a brief synopsis of the proceedings.

H.S.T.
Q:
Sometimes known as the harmonized sales tax, members of the media citing the many negative consumer comments on the government implementing this tax, the media asked the minister if it is a good idea to go ahead with this tax at the present time.

A: Duncan responded bys saying the he believed this action has the support of the people of Ontario. The implementation of this tax will make business easier for forestry, mining and the manufacturing sector. He feels that when Ontarians see that this tax will support the creation of jobs in the province, then they will support the tax.

Duncan went on to say that the new personal tax credit and the child tax credit under the proposed HST structure will actually benefit modest income earners such as those people who have receive EI payments in the past year. For mosdest income earners the HST will present an improvement over the existing tax structure.

Federal/Provincial Deficits:

Q: Given the recent oversights in the Federal Budget and the need to revise the numbers dramatically, the media asked if the same might be in store for the provincial economy.

A: The federal budget was produced sooner, and the data which went into the making of that budget from an even earlier time. At that time the final costs of such things as the GM rescue package were not known. Predicting the size of the Provincial deficit at present is difficult because he is waiting new data on tax revenue. He went on to say the price of oil and the strong Canadian dollar affect the outcome of the Province’s budget.
Forestry:
Q: The media asked the minister if Ontario’s government has given up on Forestry?

A: The minister said that the government has made up to $1 Billion dollars available to the forestry sector .

While that may be so, that money has been on the table for a long time, and other government policies such as power shedding and electricity costs have hurt the sector more than the money offered under the programe.

The minister went on to say that it looks as though the market for traditional forest products may be smaller in the future, but the industry will be there and Canada will work hard to have its share of that market.

Health Care:

Q: The minister’s discussion on health care started with a question regarding the lack of health care professionals in Ontario?

R: The minister admitted that finding appropriate health care can be a challenge in many communities, especially so in the small communities in the north, but even in larger centres such as Thunder Bay and his own city of Waterloo, The government has increased enrolment in the provinces medical schools by 22% this year. He sights the Northern Ontario School of Medicine in Thunder Bay and Sudbury as great success stories. His government is working to expedite the qualification process for foreign trained doctors in Canada.

In terms of reducing wait times at hospitals, he cites the creation of special health care teams where extending responsibility given to other health care professionals such as nurses can reduce the demand on the doctors.

The minister went on to say that this is not the time to make cuts in healthcare due to budget concerns, as advocated by the Conservatives.

Bombardier Street Car Contract:

Q: The minister was asked when the funding for the Toronto Street Car Contract would come through so work could get started at the local Bombardier Plant?

R: Duncan advised us that the fate of the streetcar contract rests with the politicians in Toronto. They have to decide the priorities for the infrastructure money that the city will receive. The minister went on to say he is convinced that the local plant is a world-class competitor and that public monies for mass transit would likely benefit the city’s plant in the future.

GM Rescue Plan:

Q: The minister was asked if public monies should be used to shore up GM pensions.

R: The ministers response was “Safeguarding pensions is the same as protecting the integrity of Ontario’s economy”.

The minister went on to say that most of the monies used in the GM bailout are in the form of loan guarantees, and he feels that there will be a quick payback in the sense that people will still be working and paying taxes