OVERVIEW
On Tuesday February 19, 2013, the Lieutenant Governor delivered the government of Ontario's Speech from the Thorne setting out the new Premier's priorities for the coming legislative session. Highlights include:
- Eliminating the deficit by 2017-18.
- Introducing a balanced approach to balancing the budget, allowing all political parties to work together to find savings.
- Establishing better accountability in the legislature.
- Focusing on employment opportunities for Ontario's youth, in partnership with education, labour and the private sector.
- Ensuring municipalities and families have input on the location of energy infrastructure in their communities, while continuing to protect the environment and encourage conservation.
- Ensuring a respectful partnership with labour leaders by building a sustainable process for wage negotiation through collective bargaining.
- Continuing to improve Ontario's education and health care systems.
In recent weeks the opposition parties have been outlining what they would like to see as part of the government's agenda. The NDP have been calling for a new program to address youth employment, ending corporate tax incentives such as the HST input credits, 15% reduction in auto insurance rates and increased spending on home care. The Progressive Conservatives would like to see a plan to reduce government spending and how the government will reach a balanced budget.
The following bulletin provides a summary of the Speech from the Throne that will be of interest to BLG's clients.
SUMMARY OF THE KEY POLICY PRIORITIES
Balancing the Budget By 2017
The government commits to restraining program spending to reduce the debt-to-Gross Domestic Product ("GDP") ratio by restricting overall spending increases to one per cent below GDP growth until the ratio returns to its pre-recession level of 27 per cent. The government will also continue to implement the recommendations of the Drummond Report from early 2012 including improving corporate tax compliance.
Economic Development and Jobs
The government signals that it will expand partnerships with high schools, universities, colleges, Not-for Profit organizations and business to create youth employment opportunities. The speech also indicated the government will work with the opposition parties to explore an increase in the Employer Health Care tax exemption level for small business. It will expand access to capital by adding $50 million to the $300 million venture capital fund.
Energy Sector
The government signalled its support for smart grid technology to facilitate conservation and energy efficiency. It also stated that it would expand consultations with affected communities when constructing energy facilities. The Throne Speech indicated the governments support for a review of the decisions related to the relocation of electrical power facilities.
Consumer Protection
The Speech from the Throne indicated that the government would strengthen the rights of consumers in respect of door to door sales, real estate transactions and smart phone contracts.
Health Care
The government stated that it would expand home care in Ontario as well as expand health promotion initiatives such as anti-smoking and obesity programs. It will also move forward with expanding access to mental health services and its "Seniors Strategy" to respond to the needs of Ontario's aging population.
Public Transit and Infrastructure
The government indicated that it would advocate for a national strategy on infrastructure and transit with other provinces and territories as well as starting a discussion on the infrastructure challenges facing Ontario's municipalities and the unique needs of northern Ontario. One over aching goal will be to address the gridlock in the Greater Toronto Area, and improving access to key economic development opportunities such as the "ring of fire" mining development in northern Ontario.
Labour Relations
The government signalled it is serious about building a sustainable model for wage negotiation that respects collective bargaining and fair and transparent arbitration process.
Next Steps
The legislative session is now open and the opposition parties will now formally debate the Speech from the Throne prior to voting on its adoption. This will occur over the next several days. Since the Speech from the Throne represents a confidence motion, if the opposition vote it down, then the minority liberal government would be forced from office and likely a general election would be required.
About BLGThe content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.