Federal government 'pickpocketing' Ontarians: Charles Sousa

YorkRegion.com
January 17, 2014 
By Tim Kelly

Ontario's finance minister came out swinging Wednesday when asked about several contentious issues pitting the interests of the province against the federal government.

Ontario had a $642-million shortfall in equalization payments from Ottawa this year, compared to a $1.8-billion increase to Quebec and a $1-billion boost to Alberta.

"Bottom line, they're pickpocketing the taxpayers of Ontario," Finance Minister Charles Sousa said. "I'm going to do my best to protect the province."

The equalization system, which takes tax money raised by all the provinces for the federal government to redistribute for health care and social spending, hurts Canada's most populous province and is unfair, he said.

Ontario provides $11 billion to $20 billion more than it receives in transfer payments and although the province is still facing economic hard times and trying to balance its books, the federal government said Ontario won’t be protected through equalization payments and would have to live with less, Mr. Sousa said.

Mr. Sousa also expressed dismay Ottawa wasn't supporting the Northern Ontario Ring of Fire, which economic experts say could generate as much as $60 billion in economic activity over several decades.

The isolated mineral deposit region, in an area accessible only by plane, would require at least $2 billion in government infrastructure money to build roads and other services to make it worthwhile for mining companies to invest.

"We need a development partner at the table," Mr. Sousa said. "I'm trying to be very tactful because I'm getting infuriated by it. They've supported the eastern provinces with regards to power and hydro facilities. They've supported the tar sands and they've done stuff in Alberta."

Ontario is asking the federal government to share some vision and leadership, negotiate with Aboriginal communities and ensure a road is built to access the area, he said.

The goal is to create access chromite deposits, which can be smelted in Ontario and made into stainless steel.

"That's going to provide tremendous prosperity and opportunities for Canada and for Ontario and our federal partner should be at the table for that," Mr. Sousa said.

Mr. Sousa, who was at the Novotel Hotel in Vaughan to speak to 30 people in an invitation-only pre-budget consultation session, listened as speakers gave him their wish lists.

The event was not open to the media.

After the meeting, several of the people who spoke to Mr. Sousa discussed some of the ideas they suggested.

Vaughan resident Phyllis Santone, who started the Alternatives Initiating People with Cognitive Challenges program because there was a lack of choices for her daughter post high school, said she wants government programs for people with development disabilities expanded.

Ms Santone struggled to find help for her daughter, who is developmentally challenged, two years before she graduated from high school.

Educators told her to check with Community Living, which told her there is a seven-year waiting list.

That's when she sprung into action well more than a decade ago.

Large tourism projects will bring attention and money into communities, including small businesses, said Federation of Chinese-Canadians of York Region chairperson Dr. Ken Ng, a Markham resident.

The province gained more than 100,000 net new jobs last year and about 600,000 new jobs since the recession, Mr. Sousa said before before the meeting.

Youth unemployment, at 16 per cent, is a concern, he said, adding the Liberals have a plan to create 30,000 jobs for young people.

The government plans to invest at least $30 billion over the next three years in infrastructure projects, which he said will create another 100,000 jobs in related trades and construction.

The budget is expected to be delivered in March.

If it is defeated by the NDP and Progressive Conservatives, it will trigger an election, likely in late May.