SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
August 31, 2022 09:00AM
  • Aug/31/22 3:20:00 p.m.
  • Re: Bill 2 

I’m proud to rise on behalf of our entire government to speak about our Plan to Build Act.

Je suis fier de me lever au nom de tout notre gouvernement pour parler de la Loi de 2022 pour favoriser le développement.

This legislation supports our 2022 budget, which is entitled Ontario’s Plan to Build. Mr. Speaker, as you know, our government’s budget was first released earlier this year, in April. It is a budget to make life more affordable for families by keeping costs down, and a budget that helps Ontario’s talented workers get the skills and support they need to succeed. It will get shovels into the ground to build highways, to build roads and to build public transit. It invests in hospitals, long-term care and home care so that people across the province can get access to the quality health care system they deserve. In short, this is a plan for a stronger Ontario.

To begin, I will go over some key areas of our budget as well as provide highlights for the next steps in our Plan to Build Act.

The first pillar of our plan is rebuilding Ontario’s economy. Our government has a plan to rebuild Ontario’s economy so that it gets stronger each day, building prosperity everywhere, for everyone. Part of our plan to build includes taking advantage of the province’s critical minerals opportunity.

Canada is the only country in the western hemisphere that possesses all the critical minerals needed for an electric vehicle battery. The Ring of Fire has the potential to fuel a provincial supply chain for battery technology, electronics and electric and hybrid vehicles. This brings multi-generational prosperity to northern and First Nations communities. That’s why the government’s plan includes close to $1 billion for vital legacy infrastructure, such as all-season roads to the Ring of Fire, accessing potential mining sites, building the corridor to prosperity. Critical minerals will be transported via these roads to manufacturing hubs in the south and help deliver prosperity to Ontario’s north. Likewise, it will help improve access for First Nations communities to health care, goods and services, education, housing and economic opportunities.

The plan is supported by a Critical Minerals Strategy and $2 million in 2022-23 and $3 million in 2023-24 to create a Critical Minerals Innovation Fund.

Ce plan s’appuie sur la Stratégie relative aux minéraux critiques et sur deux millions de dollars en 2022-2023 et trois millions de dollars en 2023-2024, constituant le Fonds pour l’innovation relative aux minéraux critiques.

During the past two years, Ontario has secured a string of historic investments of nearly $16 billion that will make the province a leader in automotive manufacturing. But I will leave it to the Minister of Economic Development, Job Creation and Trade to speak to how our government is transforming this province into the economic engine of Canada once again, as it was at the beginning of Confederation.

As part of our plan to bring prosperity everywhere, we are proposing to extend the temporary enhancement to the Regional Opportunities Investment Tax Credit. It helps lower costs for businesses that expand and grow in areas of the province where employment growth in the past has lagged the provincial average. To provide additional support to businesses during the COVID-19 pandemic, we temporarily doubled the tax credit in the 2021 budget from 10% to 20%, until the end of 2022. Our government is proposing to extend the temporary enhancement to the Regional Opportunities Investment Tax Credit to the end of 2023. This financial support will stimulate real growth and create jobs in regions that need it the most.

Madam Speaker, the shortage of housing supply impacts all Ontarians, regardless of background or budget. The Ontario government introduced legislation that would give the mayors of Toronto and Ottawa more responsibility to deliver on shared provincial-municipal priorities, including building 1.5 million new homes over the next 10 years.

Le gouvernement de l’Ontario a déposé un projet de loi qui donnerait aux maires de Toronto et d’Ottawa une plus grande responsabilité pour mettre en oeuvre les priorités provinciales-municipales, dont la construction de 1,5 million de nouveaux logements au cours des 10 prochaines années.

If passed, the Strong Mayors, Building Homes Act would give the mayor of Toronto and the mayor of Ottawa the ability to move priority projects forward and get more homes built faster. This legislation is an important tool to increase the housing supply, and is one of a number of initiatives being taken by the Ontario government to address the housing shortage.

Additionally, to help communities across Ontario build more attainable homes, Ontario is also launching the housing supply action plan implementation team. This will provide advice on market housing initiatives, including building on the vision from the Housing Affordability Task Force, More Homes for Everyone and other governmental conversations.

Our plan also includes keeping costs down for Ontario families. Our government has recently released the 2022-23 first-quarter finances, which provide updated information on the movement of Ontario’s economic and fiscal outlook since the 2022 budget. The numbers reflect that people and businesses are experiencing the effects of inflation in a very real way in their daily lives. While this global economic trend is happening, we’re taking action to help every Ontarian with the cost of living. We are doing our part to help keep a few extra dollars in people’s pockets and to help keep costs down.

The Plan to Build Act proposes amendments that would provide relief to families and workers by helping with the cost of everyday essentials. Beginning with the 2022 tax year, our government is proposing an enhancement to the low-income individuals and families tax credit, also known as the LIFT credit. The proposed enhancement would mean roughly 700,000 more people would benefit from this tax credit for the 2022 tax year.

À compter de l’année d’imposition 2022, notre gouvernement propose une amélioration au crédit d’impôt pour les personnes et les familles à faible revenu. Cette amélioration signifierait qu’environ 700 000 personnes de plus profiteraient de ce crédit d’impôt pour l’année d’imposition 2022.

It will increase and expand this tax benefit, providing $320 million in additional tax relief to even more of Ontario’s workers. And with the general minimum wage rising to $15.50 per hour as of October 1, 2022—by my calendar, that’s a little over 30 days from today, this will help ensure eligible minimum wage workers continue to receive additional relief.

Let me take a few minutes to explain how the LIFT credit works. Introduced in 2018, this non-refundable tax credit has provided up to $850 in Ontario personal income tax relief each year to lower-income workers. Under the current LIFT credit, the benefit is phased out at a rate of 10% for individual income above $30,000 and family income above $60,000. So, combined with other tax relief, the introduction of the LIFT credit means that about 90%—90%—of all Ontario taxpayers with taxable incomes below $30,000 will pay no Ontario personal income tax. And under our proposed enhancement, the maximum benefit will also increase from $850 to $875, helping to keep more money in the pockets of many eligible beneficiaries.

Our plan for keeping costs down also includes cutting fees. Our government is helping people who are feeling the pinch at the gas pumps, as the cost of gas has never been higher—although it’s lowering, it’s still very high. As of July 1, we cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months.

Notre gouvernement aide les gens qui subissent les effets de la hausse des prix de l’essence. Le 1er juillet, nous avons diminué la taxe sur l’essence de 5,7 cents le litre et la taxe sur le mazout de 5,3 cents le litre pour six mois.

In addition to these cuts, we are making it less expensive to drive, because we know that driving is necessary for many families. By eliminating and refunding licence plate renewal fees for passenger vehicles, light duty trucks, motorcycles and mopeds, drivers in southern Ontario will be saving $120 per year, per vehicle, and about $60 per vehicle in northern Ontario. Further, Madam Speaker, we have also removed the tolls on Highways 412 and 418, bringing relief particularly to people in the Durham region, and a benefit to every single person who uses these highways.

The next pillar that I would like to speak about is working for workers. Our economy needs skilled workers, and our workers need our support. That is why our government is working for workers and reducing the harmful stigma around trades, especially for women and young people. Building on the success of the Skills Development Fund announced in the 2020 budget, Ontario is providing an additional $15.8 million in the 2022-23 fiscal year to support the development and expansion of brick-and-mortar training facilities, which could include union training halls, to help more workers get the skills they need to find good, well-paying jobs and to ensure employers can find the talent they need to build and grow their businesses.

The next part of our plan I will cover is building highways and our infrastructure. Ontario is growing, and as Ontario grows, we will need roads, highways, transit and other infrastructure. That’s why we have a plan to keep moving Ontario. At the heart of our plan is a capital investment of $158 billion over the next 10 years, with planned investments of over $20 billion in 2022 and 2023. Our plan fights gridlock, with improvements to trains, to subways and highways. We’re investing an historic $86.6 billion—let me repeat that: We are investing an historic $86.6 billion over 10 years to build and expand roads, highways and transit infrastructure right across the province, including Highway 413 and the Bradford Bypass. Highway 413 will save drivers up to 30 minutes each way during rush hour on their commute, while supporting thousands of jobs each year.

Nous faisons un investissement historique de 86,6 milliards de dollars sur 10 ans dans des projets d’expansion et de réhabilitation de routes à l’échelle de la province, dont l’autoroute 413 et le contournement de Bradford. L’autoroute 413 permettra aux conducteurs d’économiser jusqu’à 30 minutes à l’heure de pointe, dans les deux sens, tout en soutenant des milliers d’emplois chaque année. D’accord?

And construction of Highway 413 is expected to support up to 3,500 jobs each year and generate up to $350 million in annual real GDP—I thought the associate minister would like that.

The Bradford Bypass is a new four-lane freeway connecting Highway 400 in Simcoe county and Highway 404 in York region. The Bradford Bypass will relieve pressure off of Highway 400 and existing local roads.

Interjection.

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  • Aug/31/22 4:40:00 p.m.
  • Re: Bill 2 

I’m disappointed today. I’m disappointed that the Conservative government was not able to get an update done of this important budget document, first issued four months ago, when so much has changed around us. Interest rates have gone up. Inflation is soaring. The cost of food is soaring, and families are feeling the pain of that. There is an ongoing war in Ukraine, and many economists and individuals are worried about how we will weather these challenges. This budget document has few mentions of climate change and reconciliation with Indigenous peoples, two of the many great challenges facing our province and our country.

Ontario’s economy has weathered COVID quite well, thanks in large part to federal transfers for health care spending and growth in personal taxes from the revenues that federal programs like CERB and CEWS provided to workers. But we also need to prepare now for how a possible economic slowdown based on global supply chain challenges, rising interest rates and the cost of living could affect Ontarians. This means spending more now to prepare for transitioning workers to new jobs in new industries. This government has a history of underspending on education, including post-secondary education, and that is not a fiscally responsible approach to making sure that our workforce and our workers are prepared for the economy of the future.

This government also has a history of underestimating its overall financial results. While prudence and fiscal responsibility are admirable features of a budget, underspending on priorities—like health care and protecting our kids, our seniors and our most vulnerable—is not.

Take the latest year of 2021-22. The FAO projects that the 2021-22 budget will be $8.1 billion, versus the government’s deficit projection of $13.5 billion. That’s a difference of $5.4 billion. That money could have gone a long way if it had been spent on treating health care workers with respect and paying them a fair wage by repealing Bill 124 and not cancelling the 10 paid sick days implemented by the Liberal government that would have helped to relieve the staffing crisis our health care system is facing.

This Conservative government talks frequently about how it is working for the people of Ontario, yet in 2021-22, the Expenditure Monitor report from the FAO indicates that the government underspent from its plan: On children’s and social services, it underspent by $662 million; on K-12 students, it underspent by $284 million; and on post-secondary education, it underspent by $289 million. That money could have been spent to better support our students and education workers by providing better mental health supports, which were, and continue to be, much needed during the pandemic.

Given this underspending and strong revenue growth projections in the budget, I believe it is the responsible and moral thing to do to increase ODSP rates by 20%. It is within our fiscal ability, and it would greatly improve the quality of life some of our most vulnerable citizens are facing.

This budget still focuses on building a new highway, the 413—this government’s pet project—which paves over more than 2,000 acres of some of our most precious farmland, not to mention over 400 acres of the greenbelt, at a time when Ontario should be preparing for ongoing global food supply challenges. We’ve seen the cost of food rise in response to the war in Ukraine and many other global factors. The government has proposed the creation of a food security strategy, but is also proposing to build a highway which will pave over that fertile farmland and spur development on that critical land. So we see billions of dollars for highways, but a mere strategy for food security. That, to me, is not fiscal responsibility.

Let’s talk a little more about this highway. The Conservative government likes to say this project will save commuters 30 minutes per day and get them home to their families sooner, but data from their own ministry says otherwise. In May 2022, the Toronto Star reported, “That’s the promise that appears right at the top of the official website for the proposed Highway 413: The new highway will save commuters as much as 30 minutes each way when crossing the Greater Toronto Area.

“It’s an appealing message for commuters—and voters—but a Ministry of Transportation analysis obtained by the Star suggests it’s not true.

“That’s because the calculation doesn’t take into account the existing 407 ETR, a major toll highway commuters can already use. If that highway is factored in, according to a briefing note prepared Sept. 16, 2021, by a team of Ministry of Transportation officials ... as of 2041 commuters using the already-existing 400, 401 and 407 highways could cross the GTA 16 minutes faster than they could using the proposed Highway 413 alone.”

Madam Speaker, this highway will hurt our environment by adding greenhouse gases. It wasn’t fiscally responsible of this Conservative government to not pursue $1 billion in penalty payments from the 407 during 2020 and 2021—$2 billion that would have added to the treasury—and it’s not fiscally responsible to spend $10 billion on the proposed Highway 413.

Let’s talk about energy. We need sufficient capital investment to address our growing energy needs related to the thousands of new electric vehicles we’re building to go on those highways, especially as the Pickering nuclear plant is to begin decommissioning in 2024. The government is proposing turning Ontario into a green vehicle and clean steel powerhouse, but does not have a robust plan to produce the energy needed to see that transition through and is not committed to ensuring the energy that we create remains green. Expanding the use of electric vehicles will require an estimated 26 million megawatt hours by 2042. The Pickering nuclear plant is 14% of our energy supply. The government plans to replace electricity from Pickering with emitting sources. New energy that is not clean energy is not good for the air we breathe, nor is it good for attracting companies that are looking for clean energy sources.

Education and innovation: In 2019, we saw a decrease in funding to post-secondary education of over 13%, or $1.5 billion. This was compounded by a further cut of $1 billion in 2020. We’re not projected to return to that funding level even in 2024. There is an opportunity cost to four years of cuts to the development of an educated and innovative workforce. The government understands the concept of vertical integration—their plan for electric vehicles does just that—but the most important thing that will help grow the economy of Ontario is education. Without strong, continuous and innovative primary, secondary and post-secondary education, we will not be able to attract and retain the innovative workforce and companies of the 21st century, the high-tech industry that we also need.

Madam Speaker, I’d like to also talk about transparency. Like Bill 7, which violates long-term-care patients’ rights, the budget bill has not gone to committee for review, but is being rushed through to a final vote without giving stakeholders and other experts the opportunity to speak to what’s in the budget and what is not. As the legislated budget deadline of March 31, 2022, was looming, the government changed the rules and passed legislation to allow it to present the budget a month later, by April 30, allowing it to follow the new rules it had set for itself by issuing the budget on April 28. We also have not yet seen estimates—that is, more detail on how the government will spend the money included in this budget.

The Auditor General, in her Review of the Pre-Election 2022 Multi-Year Fiscal Plan, made some statements of note that should be taken seriously: The “supporting documentation prepared by ministries was not as detailed as the information used to support the previous pre-election report in 2018.”

More importantly, she reports on some exceptions. Exceptions from an auditor are a big deal and should be taken seriously. Her report says the government’s multi-year fiscal plan “understated estimates of provincial revenue from corporate tax in each of the three years” by $1.5 billion to $3.4 billion in 2022-23 alone. It should be noted that she was right on this point for 2022. The government’s budget for corporate taxes was $14.4 billion, and the actual amount spent was $22.2 billion. This government could be spending that money, almost $8 billion, now to pay our health care workers a fair wage instead of asking the federal government for more.

Ontario is a wealthy province. We are rich in resources and rich in talent. We need to ensure that we deploy our vast resources wisely by protecting our environment, building a clean energy supply, investing in our future in a way that is environmentally and fiscally sustainable, by supporting our younger generations with an education system that allows them to grow and develop to the best of their ability, by working towards reconciliation with the Indigenous communities.

Instead of building unnecessary highways, let’s spend that $10 billion to build up our public health care, our public education, our environment, clean industry, social and mental support systems, to ensure we have a healthy, strong and vibrant society and economy in the years ahead.

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