A Progressive Conservative Ontario government would increase provincial spending by $13 billion over the next five years while cutting billions in taxes and spending to create jobs and stimulate the economy, leader John Tory said Thursday.
The plan, which Tory described as "affordable and realistic," prompted cries from the governing Liberals that he's using "voodoo economics" on the numbers and a gentler voice to disguise a strategy similar to that espoused by his controversial predecessor, Mike Harris.
If the Conservatives are elected Oct. 10, Tory said they'll increase health-care spending by almost $9 billion and education spending by $2 billion. Another $2 billion would cover modest increases in social services, justice, environment and post-secondary education.
Steady economic growth, tax reductions and unspecified spending cuts worth $1.5 billion in "efficiencies" would fuel job creation under a Conservative government, Tory said. Proposed tax cuts include phasing out Ontario's capital tax, the business education tax and the Liberal government's controversial $2.8-billion health-care premium.
"When people get that money back, they're going to spend it," Tory told a news conference.
"I don't know too many that have told me they plan to put it under their pillow … People are going to buy things with that money or maybe they will have the confidence to buy things they weren't going to buy before. Yes, it will create jobs."
Economic uncertainty could taint financial plan
The Conservative plan projects provincial coffers will grow to $105 billion by 2012 while government spending would increase from $91 billion to $104 billion.
Tory's financial plan comes as ominous-looking clouds gather on the province's economic horizon.
Economists have warned about a dramatic drop in the housing market in the U.S. — Ontario's largest trading partner — because of a global credit crunch, and on Thursday, Ontario's auto sector was reeling from the news General Motors plans to lay off 1,200 workers at its plant in Oshawa, Ont.
Still, Tory said he's not worried about a downturn in the provincial economy.
"Our planned spending increases are affordable and sustainable and realistic," he said. Economic forecasters aren't predicting a downturn, he added.
"They've projected levels of growth that are not what they should be, and I'd like to make a real effort to get those growth rates up."
The governing Liberals say the Tory plan is not only unrealistic, but also a throwback to the turbulent, cost-conscious Harris era, which began in 1995.
Finance Minister Greg Sorbara said Tory is proposing cuts that are far deeper than those Harris made to social services, health care and education.
"The Conservatives are engaging in voodoo economics," Sorbara said.
Related
Ontario Votes 2007 »
- McGuinty wins massive majority, Tory loses seat
- Dalton McGuinty won a second majority government for the Liberals in Ontario on Wednesday night, a triumph for a party that earlier expressed fears of a drop to minority status.
- Ontario rejects electoral reform in referendum
- Ontario voters have rejected a proposed electoral reform that would have seen some provincial legislators chosen based on a party's share of the popular vote, results showed Thursday.
- Ontario voter turnout a record low
- The percentage of eligible voters casting ballots in Wednesday's Ontario election hit an all-time low despite changes introduced in an effort to boost turnout.
- Ont. Green party scores 8 per cent of vote
- No Green party candidates made it to the Ontario legislature in Wednesday's election, but that defeat was sweetened by a swell in their share of the popular vote, which more than doubled.
- McGuinty only leader not facing leadership questions
- Liberal Leader Dalton McGuinty won re-election in Ottawa South and NDP Leader Howard Hampton again won his northern Ontario riding of Kenora-Rainy River. PC Leader John Tory was defeated.
District Profiles
More Ontario Votes Headlines »
- McGuinty wins massive majority, Tory loses seat
- Dalton McGuinty won a second majority government for the Liberals in Ontario on Wednesday night, a triumph for a party that earlier expressed fears of a drop to minority status.
- Ontario rejects electoral reform in referendum
- Ontario voters have rejected a proposed electoral reform that would have seen some provincial legislators chosen based on a party's share of the popular vote, results showed Thursday.
- Ontario voter turnout a record low
- The percentage of eligible voters casting ballots in Wednesday's Ontario election hit an all-time low despite changes introduced in an effort to boost turnout.
- Ont. Green party scores 8 per cent of vote
- No Green party candidates made it to the Ontario legislature in Wednesday's election, but that defeat was sweetened by a swell in their share of the popular vote, which more than doubled.
- McGuinty only leader not facing leadership questions
- Liberal Leader Dalton McGuinty won re-election in Ottawa South and NDP Leader Howard Hampton again won his northern Ontario riding of Kenora-Rainy River. PC Leader John Tory was defeated.
