ARTICLE
Media Release Key investments remain priority for Timmins business community ahead of Province’s Budget 2019, says Timmins Chamber TIMMINS, ON, April 4, 2019— Today, the Ontario Chamber of Commerce (OCC) released a report, Accounting for Ontario’s Debt, which offers a balanced analysis of the province’s debt just ahead of Budget 2019. The report highlights Ontario’s current debt, which amounts to approximately 41 percent of the provincial GDP or, when combined with the federal debt of $680 billion, represents a near 80 percent debt-to-GDP ratio for Ontarians. In Feb of this year, the OCC released there Ontario Economic Report (OER) in which nearly 80 percent of respondent businesses stated they were concerned about the impact the provincial debt could have on Ontario’s economy. Managing the provincial debt has been a long-standing concern for the business community as Ontario’s fiscal health directly impacts the ability of Northern Ontario businesses to remain competitive and capitalize on new opportunities. The OER also indicated that Northern Ontario businesses’ main area of concern remains in a declining population and as a result, a shortage in an available workforce, embracing technological innovations, and the cost of doing business—including regulation, taxation, and input prices—remain major sources of concern. Today’s report notes Ontario is in a unique situation when it comes to managing its debt. Ontario has the debt exposure of a national government yet does not have generous lending fundamentals afforded to the federal government. With a GDP of nearly $850 billion, the province accounts for nearly half of Canada’s GDP. This means Ontario cannot rely on the protection of the national government when embarking on investments which aim to drive economic growth and prosperity. That is why the Timmins Chamber and the OCC have long called for investments in areas such as transit and transportation, connecting link funding, broadband internet, health care, skills and education, and trade promotion. These key investments will help grow the economy and allow our local businesses to flourish, jobs to be created, and, ultimately, Ontario to be more competitive and prosperous. “When discussing how to account for Ontario’s debt, our report calls on the public and government to have a frank conversation. Priority must be placed on understanding the opportunity costs stemming from deficit spending, tax increases and spending cuts. With that in mind, we ask that the government prioritize good debt maintenance by running an efficient government while also investing in growth and development, especially in the North,” says Nancy Mageau, President of the Timmins Chamber. “One thing is certain: government decisions in Budget 2019 regarding Ontario’s debt will have profound effects on our local industry and community for years to come.” This concern was shared by Rocco Rossi, president and CEO of the Ontario Chamber of Commerce. “As the province heads into a time of economic uncertainty, coupled with the possibility of rising interest rates, we urge the government to focus on balancing continued investments in economic development with putting the province’s finances on steady footing,” said Rossi. “Paying down the debt should not be at the risk of long-term economic growth or needed investments in infrastructure and services that will have a high return on taxpayer dollars, helping to bolster industry and our economy for generations to come. Our message in advance of Budget 2019 is about balance: accounting for our province’s debt in a reasonable manner while focusing on key investments and competitive taxation is critical to a stronger Ontario and competing on the global stage.” When it comes to addressing the debt and deficit, the Timmins Chamber and OCC’s report will act as a reference for debate and change as well as inform thoughtful, evidence-based policies with an eye towards fiscal balance and strategic spending. As the independent, voice of business, the Timmins Chamber and the OCC will be working with leaders in government and Timmins’ business community to help develop the necessary solutions in addressing Ontario’s debt challenge to drive forward a stronger and more competitive region, and province. Read the full report, Accounting for Ontario’s Debt here.
Media Release
TIMMINS, ON, April 4, 2019— Today, the Ontario Chamber of Commerce (OCC) released a report, Accounting for Ontario’s Debt, which offers a balanced analysis of the province’s debt just ahead of Budget 2019. The report highlights Ontario’s current debt, which amounts to approximately 41 percent of the provincial GDP or, when combined with the federal debt of $680 billion, represents a near 80 percent debt-to-GDP ratio for Ontarians.
In Feb of this year, the OCC released there Ontario Economic Report (OER) in which nearly 80 percent of respondent businesses stated they were concerned about the impact the provincial debt could have on Ontario’s economy. Managing the provincial debt has been a long-standing concern for the business community as Ontario’s fiscal health directly impacts the ability of Northern Ontario businesses to remain competitive and capitalize on new opportunities. The OER also indicated that Northern Ontario businesses’ main area of concern remains in a declining population and as a result, a shortage in an available workforce, embracing technological innovations, and the cost of doing business—including regulation, taxation, and input prices—remain major sources of concern.
Today’s report notes Ontario is in a unique situation when it comes to managing its debt. Ontario has the debt exposure of a national government yet does not have generous lending fundamentals afforded to the federal government. With a GDP of nearly $850 billion, the province accounts for nearly half of Canada’s GDP. This means Ontario cannot rely on the protection of the national government when embarking on investments which aim to drive economic growth and prosperity. That is why the Timmins Chamber and the OCC have long called for investments in areas such as transit and transportation, connecting link funding, broadband internet, health care, skills and education, and trade promotion. These key investments will help grow the economy and allow our local businesses to flourish, jobs to be created, and, ultimately, Ontario to be more competitive and prosperous.
“When discussing how to account for Ontario’s debt, our report calls on the public and government to have a frank conversation. Priority must be placed on understanding the opportunity costs stemming from deficit spending, tax increases and spending cuts. With that in mind, we ask that the government prioritize good debt maintenance by running an efficient government while also investing in growth and development, especially in the North,” says Nancy Mageau, President of the Timmins Chamber. “One thing is certain: government decisions in Budget 2019 regarding Ontario’s debt will have profound effects on our local industry and community for years to come.”
This concern was shared by Rocco Rossi, president and CEO of the Ontario Chamber of Commerce. “As the province heads into a time of economic uncertainty, coupled with the possibility of rising interest rates, we urge the government to focus on balancing continued investments in economic development with putting the province’s finances on steady footing,” said Rossi. “Paying down the debt should not be at the risk of long-term economic growth or needed investments in infrastructure and services that will have a high return on taxpayer dollars, helping to bolster industry and our economy for generations to come.
Our message in advance of Budget 2019 is about balance: accounting for our province’s debt in a reasonable manner while focusing on key investments and competitive taxation is critical to a stronger Ontario and competing on the global stage.”
When it comes to addressing the debt and deficit, the Timmins Chamber and OCC’s report will act as a reference for debate and change as well as inform thoughtful, evidence-based policies with an eye towards fiscal balance and strategic spending. As the independent, voice of business, the Timmins Chamber and the OCC will be working with leaders in government and Timmins’ business community to help develop the necessary solutions in addressing Ontario’s debt challenge to drive forward a stronger and more competitive region, and province.
Read the full report, Accounting for Ontario’s Debt here.