SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
March 20, 2023 10:15AM
  • Mar/20/23 2:00:00 p.m.
  • Re: Bill 77 

I wish to thank the President of the Treasury Board, the member for Brampton South, for that kind introduction and for speaking first on the Supply Act.

It is my distinct honour to rise today to further detail the financial situation of the province of Ontario and the expenditures that the government is making through our plan to build Ontario.

I would also like to thank my colleague for detailing the spending in the crucial areas of health care and education.

Speaker, I must echo the minister’s words and sentiments when it comes to health care and education spending. It is fair to say that those expenditures will likely shape the future of the province of Ontario. However, to make those investments, the province has to be in the financial position to do so.

The top-line details of the 2022 budget might be considered dry by some, but it is necessary for members of this House to get an idea of the province’s current financial situation. Only with the latest information can we accurately paint a picture of the province’s financial circumstances. Ontario’s third-quarter finances, which were released last month, give us that information.

My colleague previously mentioned some of the challenges that must be considered when looking at any current economic data, but they do bear repeating. In the face of high inflation, rising interest rates, global geopolitical intrigue and ongoing supply chain disruptions, Ontario’s economy has remained resilient. And it is to the credit of the people of Ontario that the province’s real gross domestic product, the GDP, is estimated to have increased by 3.7% in the last year. Seen in its proper context, this number is impressive.

Speaker, as we are now three months into 2023, we know that Ontario’s economy is not immune to an expected global economic slowdown this year. It is true that reputable forecasters are bracing for an even more challenging year than was faced in 2022. That is why the government is maintaining a reasonable and realistic fiscal plan. Now is the time to double down on fiscal responsibility—that means ensuring fiscal policy that works with a strict and thoughtful monetary policy. Against this backdrop, the government has remained transparent and accountable—and releasing the 2022-23 third-quarter finances is in the service of doing just that.

It should be noted that the next economic and fiscal update, as part of the 2023 budget, will be this Thursday, March 23, 2023.

I’m happy to now get into some of the projections from the third-quarter finances, as it gives us context in terms of where we are financially today as a province.

Ontario’s 2022-23 deficit is projected to be $6.5 billion. While that is significant, it should be noted that it is $13.3 billion lower than the outlook published in the 2022 budget—and that is $6.4 billion lower than the 2022 Ontario economic outlook and fiscal review.

On the other side of the ledger, revenues in 2022-23 were projected to be $196.4 billion. That is $16.6 billion higher than the forecast in the 2022 budget and $9.6 billion higher than projected in the 2022 Ontario economic outlook and fiscal review.

Of course, it is reasonable to ask why revenues were higher than expected. The revenue forecast reflects stronger-than-expected taxation revenues, which were a direct result of higher net tax assessments for 2021 and prior years.

The people of this province should know how much money is being spent on their behalf on the government programs designed to make their lives better.

Overall program expense in 2022-23—those expenses were projected to be $188.6 billion, and that number is $3.4 billion higher than the forecast in both the 2022 budget and the 2022 Ontario economic outlook and fiscal review. These increases are due to spending related to reopening of colleges and resulting additional on-campus activity, the government commitment to support the city of Toronto to address a portion of its 2022 operating deficit, and additional funding for prevention and containment of COVID-19 at long-term-care homes. The government feels that these expenses were necessary and appropriate. As well, these expenses have been partially offset by additional third-party revenues from colleges; ministry underspending, particularly underspending for infrastructure projects; and through the drawing down of existing contingencies within the fiscal plan.

Speaker, before I discuss some of the investments associated with Ontario’s Plan to Build, I would like to put a little bow on some of these top-line budget numbers.

Interest on the province’s debt is projected to be $13.4 billion, slightly lower than the $13.5 billion forecast in last year’s budget.

Because of the lower deficit, the net debt-to-GDP ratio is projected to be 38.3% in 2022-23, 3.1% lower than the 41.4% forecast in the 2022 budget.

There is one additional point I would like to make about the overall budget within my allotted time. It is important to remember that the 2022 budget included a $1-billion reserve in 2022-2023. This was to protect the fiscal outlook against any unforeseen changes in the province’s revenue and expense forecasts. This demonstrates this government’s prudent fiscal approach. The reserve was designed to insulate the province from unforeseen expenses of any kind. It also provides additional prudence in the government’s fiscal framework. It should be noted that, if that money is not needed, the reserve is eliminated at year-end as part of the final projection for 2022-23, published in the 2023 budget.

With that context in mind, I’d like to move on to Ontario’s Plan to Build.

The first pillar of this comprehensive plan is rebuilding Ontario’s economy. It is sad but true that Ontario lost 300,000 manufacturing jobs between 2004 and 2018. That was quite a hole to dig out of, but that is what we were up against, and we remain up against that sorry legacy. To deal with this, the government has a plan to help create the environment for jobs and to build prosperity everywhere for everyone. The key to doing this will be leveraging what we already have. An example of this is seizing Ontario’s critical minerals. Our province is rich in the critical minerals that will be key to making sure that the next generation of automobiles are built right here in Ontario. The government’s plan includes up to $1 billion for legacy infrastructure such as all-season roads to the Ring of Fire, building the corridor to prosperity. Over the next three years, the government is investing nearly $107 million to help the province compete with jurisdictions in a global race to develop and own these technologies that will likely define the future of transportation.

The second pillar of Ontario’s Plan to Build is working for workers. This pillar included raising the minimum wage to $15.50 per hour as of October 2022. The government is proud to be able to institute this important increase, largely helping the most vulnerable across our province. Under this crucial pillar, the government also plans to invest $1 billion every single year in employment and training programs. These programs are to help workers all throughout Ontario to retrain and upgrade their skills. The world moves fast, and the skills one may have today might not be the ones needed for the jobs of tomorrow. That is exactly why retraining and upgrading is so important for our skilled workers. Our workforce must be agile and flexible—and the billions of dollars earmarked for this type of training is designed to do just that.

The third pillar of the plan is where the billions of dollars invested in infrastructure can be found. So many people in this province are wasting time, day after day, sitting in traffic or waiting for a train or subway. Bumper-to-bumper traffic, gridlock and transit delays are not only a nuisance, but they also cost this province billions of dollars. This must change, and this will change. We can talk about traffic until we are blue in the face, but nothing will solve the problem until we get shovels in the ground to build highways, transit and other infrastructure projects to fight gridlock, boost the economy and create jobs. To do this, the government is planning one of the most ambitious capital plans in the history of Ontario. Over the next decade, these infrastructure projects will total $159.3 billion, including $20 billion in 2022-23 alone. The government is investing $25.1 billion over the next 10 years to support highway projects across the province, including building Highway 413, building the Bradford Bypass, and enabling the widening of Highway 401 through eastern Ontario. There are many highway infrastructure projects and, frankly, there’s not enough time to mention them all today. But that is the investment we are making to get Ontario moving again. The government is also investing $61.6 billion over 10 years for public transit, including the Ontario Line here in Toronto and GO rail across the greater Golden Horseshoe and into southwestern Ontario.

The fourth pillar is something that any fiscally minded person can appreciate: keeping costs down. The government has a plan to help keep costs down by increasing housing supply, by making it less expensive to drive or take transit, and by providing direct relief on everything from child care to taxes. The government has committed to making it less expensive to drive by eliminating and refunding licence plate renewal fees for passenger vehicles, light-duty trucks, motorcycles and mopeds. The government made transit more affordable across the greater Golden Horseshoe by eliminating double fares for most local transit when using GO Transit services. The government is also working on lowering child care fees for parents by signing a $13.2-billion agreement with the federal government. I know it has been mentioned many times, but it should be noted that the government remains committed to securing an average of $10-a-day child care by September 2025. By putting more money back into the pockets of the parents of Ontario, the government is working toward a more financially secure future for all of Ontario’s families.

The last pillar of Ontario’s plan to build is a plan to stay open. It’s true that Ontario fared better than many jurisdictions during the COVID-19 pandemic, and that is owing to the resilience of the people of Ontario. It is now the government’s duty to make sure that Ontario is prepared to face any future challenges. The government is doing this by making historic investments in our hospitals, with an additional $3.3 billion in investments in 2022-23. Over the next three years, the government is also investing $3.5 billion to support the continuation of over 3,000 hospital beds put into place during the pandemic. As well, the government is investing $1.1 billion over three years to support the continuation of hundreds of new adult, pediatric and neonatal critical care beds added during COVID-19.

Speaker, the people of Ontario deserve a government that has a real plan to build. Furthermore, the people of Ontario deserve to know for sure that the money that is being spent in their names is being spent in a transparent and accountable way.

The government is proud of Ontario’s plan to build and proud of its five pillars detailed today. The plan demonstrates how we are continuing to make essential investments to support the people and the businesses of this great province.

It should be noted that this supply bill, if passed, would formalize the investments I have outlined today. And at the risk of repeating myself, it is also important to note that the Supply Act, if passed, is not about approving new spending; the Supply Act is instead about providing legislative approval for the spending to which the government has already committed.

The review of the province’s fiscal position as of the third-quarter finances and the detailed rundown of the government’s Ontario’s Plan to Build hopefully served as a reminder to all members of this House of the transparency and accountability that informs all government spending.

With that said, Speaker, I encourage all members to support this important piece of legislation.

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  • Mar/20/23 2:30:00 p.m.
  • Re: Bill 77 

What a pleasure it is to be in the House today to address the Supply Act motion. I have to say, I actually have so much material to work with. I feel like a mosquito at a nudist resort, Madam Speaker. Literally, I don’t even know where to start.

The President of the Treasury Board, my friend, talked a lot about transparency. I think that we agree on a few things, and one is that transparency is very much connected to trust. But this government has a serious, serious trust issue. The people of this province have been promised a set of goods. They were promised a budget in 2022, which had some detailed expenditures—and I’m going to go through some of them, because that matters. When you actually follow the money and you follow where the expenditures actually occurred, then you can see sometimes what the real priorities are. But the trust piece—this government, I will admit, is very, very, very good at announcements, and sometimes really doubling down on some of those announcements with re-announcements about expenditures.

We are very fortunate, in the province of Ontario, to have the Financial Accountability Officer. This position, this independent officer of the Legislature, came to be as part of the negotiations in a minority government. Minority governments can be very effective. We wanted greater transparency with the former Liberal government. You can’t blame us, given some of the decisions that they made and some of the funding decisions that they made. I will also admit that we are still feeling the repercussions from some of those decisions, particularly on the energy file, for sure. The FAO has an expenditure monitor. Every quarter, he tracks where the money has gone, based on the government’s own numbers. So the government says, “We are going to allocate this particular amount of money to health care,” and then they make announcements and announcements and announcements. And then the FAO says, “Did that money actually go to health care?” Fortunately, we have the exposure of, really, what is happening.

We actually just got the Q3 expenditure monitor from earlier in this month, March 1, and lo and behold, combined over the first three quarters, the province was expected to spend $129.2 billion but actually spent only $122.8 billion—a $6.4-billion difference, 5% less than expected. Now, the question comes. If government has said health care, education, justice and energy—these are justifiable expenditures. You have the same formula that I think the FAO has. And then the FAO says, “Where did that money go?”—or in this case, and more importantly perhaps for this discussion, “Where did it not go?”

We’re not talking about new money today. We, as the official opposition, one of only two parties in this House, have said that you made a promise to the people of this province. You said you were going to invest in autism. You said you were going to invest in community services. You said you were going to invest in housing. And that money did not flow.

Just to break it down—because in order to be transparent on the lack of transparency, I want to be sure that the government understands why we have taken such issue with the budgeting of this government. Breaking it down around actual spending versus planned spending, the programs with the largest lower-than-expected spending include Metrolinx and municipal infrastructure projects.

This government talks a lot about capital infrastructure. They talk a lot about building hospitals. We heard this at the finance committee; my colleague and I travelled around the province. You can talk about beds all you want, but you are actually funding furniture if you don’t have a nurse, if you don’t have a PSW, if you don’t have a doctor. It’s just the facts.

The other underspending happened in the Ministry of Infrastructure capital program—$644 million less; public health, $605 million less.

What have we learned? We went through a global pandemic. It is not over. We are still feeling the effects of the various strains of COVID and long COVID. Nobody in the Ministry of Health is talking about long COVID at all. A responsible government would plan, do research, have an evidence-based policy around long COVID; not this government.

Certainly, underspending by $605 million, over half a billion dollars, in public health to prevent people from getting sick—early intervention and prevention is the smart investment in public health.

Social assistance programs—this kind of surprised me—got $453 million less; elementary and secondary education programs, $432 million less; child care programs, $396 million less than planned.

What is the problem? Where is the barrier to actually—you’ve acknowledged that there this is need in these areas, and you’ve set aside the funding, but the money doesn’t flow. But we do have lots of announcements, and we do have lots of photo ops.

Just as an aside: I came in last night on the UP Express—and let me tell you, it was not express. When I look at this lack of $462 million in the Metrolinx and municipal transit operating funding and I think about all the people who rely so heavily on public transit in this city, to not get that money out the door, to not invest that money, to not create those jobs, to not create those opportunities, is an economic non-starter. That train last night—it’s a diesel train; you know this. To get on a diesel train that chugalug-a-lugged me for 45 minutes from the airport to Union Station—it was a bit embarrassing. There were some Europeans on there, and they said to me, “Is this thing going to go fast?” And I had to say, “We’re not quite in the 20th century on public transit in Ontario yet.”

The expenditure monitor notes that the FAO provided all members of the Legislature—this office is open to everyone, and it is truly non-partisan.

On health care, the $1.25 billion that didn’t get spent, that did not get “invested”—that’s actually the better word. It was not invested in a time when we saw the Children’s Health Coalition for the province of Ontario—CHEO is a big part of that coalition—asking for $371 million to alleviate that 12,000-child wait-list. Some 12,000 children are long-haulers, so they’ve missed the opportune moment to receive surgery. The government has been silent on this request of $371 million. I really hope that my friend the President of the Treasury Board is able to talk to the Minister of Finance and say—not only does it look bad to keep children waiting, languishing on a wait-list and not opening up those operating rooms so that children can reach their potential, and so that their surgery is not more complex and more expensive—as one parent said to me, “Does the minister not understand that I as a parent, when I go to work, am not at my full productivity if I know that my child is in pain?” Surely, we can all understand this concept.

Going down the sector breakdown, the education piece, the actual versus expected is less $844 million in this last quarter as of December 31, 2022. The government has said, “We understand there’s a gap in learning.” The pandemic interrupted those learning patterns, especially for younger children and younger students. That money didn’t get out the door.

Children and social services: almost half a billion dollars, $458 million.

And I have to say—in the total, though, because there’s another program which captures $3.5 billion that didn’t get invested.

I can go through the other programs. These are important issues, but they’ve been encapsulated in the report, under a large umbrella, if you will.

The unallocated funds—let me just finish: You plan to spend $6.4 billion in very important ministries. I know that the communities were expecting that funding. That funding didn’t get out the door. I wish sometimes that we could get answers in this place, because I really want to know, why did you not get the job done? The people of this province, in the interest of transparency, which the government has said that they care about, want to know, because without that transparency, there is no trust.

There’s a tale of two Ontarios here, and when you factor in the Indigenous communities, it’s actually three, because there are very different levels. But here at the Pink Palace, as we heard this morning during question period, when we had people from across this province who were lobbying the government for better services for the most vulnerable people in Ontario, including Sarah and her daughter, Mia, who is homeless—so a mother and a child are homeless, and what do we hear from this government? “We’re going to create some jobs in another jurisdiction.” Sarah needs a roof. Sarah needs a place to call home. She needs to be safe. And you can talk about jobs—jobs and housing are connected. I don’t see why this government cannot draw that connection.

We also heard very clearly that housing is health care. We heard this from doctors in Ottawa. We heard this in Kenora. We heard this in Toronto very, very clearly. People who are precariously housed, who are couch-surfing, the 130 people living in tents in Waterloo region—these people are barely holding on. It was quite something, actually, to hear this morning from our leader about how many deaths happened every week over the winter. The fact that three people a week died in one of the richest provinces in Canada is really something that should keep us up at night.

The politicization of the housing file has reached a whole new extreme—because the not-for-profit sector is ready and willing to come to the table. In fact, they have applications. The minister, with the strike of a pen, could include in this budget direct partnerships with not-for-profits, and every single community in this province would have some form of supportive housing, some form of new accommodations. They’re ready and they are willing to come to the table—

Interjections.

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  • Mar/20/23 3:30:00 p.m.
  • Re: Bill 77 

I’m up to debate the government’s Supply Act to authorize expenditures for the government’s fiscal plan. What I really want to talk about today is what this act will not supply for the people of Ontario.

Let’s start with housing that people can afford. The experts have told us that over the next decade we need to build 160,000 deeply affordable homes in this province. Of those, 60,000 need to be permanent supportive homes with wraparound mental health, addictions and other supports. You won’t see money for that in the Supply Act.

You won’t see money for that allocated to ensure that we build affordable communities—communities where people can actually live in homes they can afford, close to where they want to work. Instead, what you have is a government focused on building million-dollar homes in the greenbelt, paving over the farmland that feeds us and contributes $50 billion to the province’s economy, the land that protects us from flooding, the wetlands that clean our drinking water. So let’s supply the ability of the government to spend money on affordable homes instead of paving over the places we love.

Second, you won’t see anything in the government’s fiscal plan that will supply the ability to build affordable climate-ready communities with resilient infrastructure that’s going to withstand the impacts of the climate crisis that we’re already facing. According to the Financial Accountability Officer, in this decade alone—we’re just talking about the next seven years—the government is going to need to invest $26.2 billion just to make our public infrastructure have the ability to withstand the impacts of the climate crisis, $14 billion for transportation alone—our roads, our highways, our bridges, our transit systems. You can see it—when I was coming to Queen’s Park today, the number of potholes I hit alone coming in, let alone the climate impacts we’re going to face—we’re going to need $6.2 billion over the next seven years just for water and stormwater systems and $6 billion for buildings.

So, Speaker, think of the people and the communities, the municipalities who are going to be on the hook for this damage. We need to do far more to prevent it from happening in the first place—which you don’t see in the Supply Act—we’re going to need to protect the nature that protects us in order to reduce the financial costs of these risks. But at the very least, if the government is going to ignore doing that, they should at least allocate the funding to build the resilient infrastructure to be able to withstand those impacts.

Third, there’s nothing here that’s supplying people with the solutions to address the health care crisis that we’re facing and, in particular, solutions to pay the nurses and the front-line health care workers who care for our loved ones each and every day. We should be embarrassed in Ontario that we have the lowest-paid nurses in the country. The Financial Accountability Officer, an independent officer of the Legislature, in his latest report says that Ontario spends the lowest per capita on health care of any province in the country, and we have the lowest-paid nurses the country. So if we’re going to solve the health care crisis, we actually need to invest in the people who care for our loved ones. That means getting rid of Bill 124. Stop wasting more money on lawyers to appeal it and actually start bargaining fair wages, better working conditions and better benefits for nurses and other front-line care workers in this province.

The final thing that you won’t see supplied in this expenditure plan is the base budget funding that our mental health services need to just be able to maintain existing levels of service, which anyone in the sector will tell you are already inadequate. Some 28,000 young people are on wait-lists that can go up to two and a half years to access basic mental health services.

I tell a story oftentimes of a young man I ran into in downtown Guelph. I never forget the day I asked him, “How are you doing?” He said, “I’m okay today, but it would have helped six months ago, when I was on suicide watch, if I could have accessed mental health services. But I finally got a call from somebody yesterday.”

When we underfund basic public services like mental health services, those have real-world impacts on people’s day-to-day lives, their quality of life, the quality of life in our communities. If you talk to small businesses in downtowns and along main streets all across the province, they’ll tell you it has direct impacts on the economy of this province, the ability of the small businesses to generate the prosperity to fund high-quality education, public health care and the other social services we need.

Speaker, let’s actually have a fiscal plan that supplies what the people of Ontario need to thrive.

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