Staying in Touch – June 27 – July 3 2010

HAPPY CANADA DAY!  - I look forward to joining Canada Day celebrations across Durham Thursday, July 1. As we celebrate our nation’s 143rd birthday, we can take pride in the enduring strength that comes from our land, our history and our citizens. This is also a time to remember Canada’s military personnel who serve with distinction in Afghanistan and around the world. Their leadership, courage and sacrifice are an inspiration to us all.

Opposition Supports Democratic Reforms

Opposition Leader Tim Hudak said last week that a PC Government will give Ontario families the tools they need to hold future Ontario governments accountable. We are seeking comments from citizens into new measures that will prevent arrogant and out-of-touch governments from ignoring citizens and forging ahead with measures such as Ontario’s new Harmonized Sales Tax. MPP Steve Clark, PC Critic for Democratic Reform, will be leading the consultation and studying best practices in other jurisdictions. Here are a few examples of reforms that would put more power in the hands of citizens:

Citizen-based initiatives – Governments would be required to consider policies and laws if a sufficient number of citizens signed petitions in support of these measures. Citizen-based initiatives could also go directly to a referendum. (As in British Columbia.)
Recalls of elected officials – If enough voters feel their elected representative is not acting in their best interests, he or she could be removed from office and a new election held.
Referendum – Referring proposed legislation or government policy to the public for a binding vote.
The Harmonized Sales Tax is one reason why Ontarians are increasingly in favor of democratic reforms. In my view, the HST would never survive a referendum. So why is the tax being allowed? That’s the question I often hear from Durham Riding residents. Ontarians are also fed up with this government approving industrial wind farms without municipal consultation, reneging on promises not to raise taxes and hiding behind the unelected, Local Health Integration Networks when reducing frontline health care.

When government is in step with citizens and listens to their advice, these reforms are hardly necessary. But, when governments ignore the wishes of the majority, citizens don’t want to wait up to four years to express their views in a general election. Under British Columbia law, a referendum may be triggered if a government initiative is rejected by 10 per cent of the voters in each of the provincial ridings. This law is being used to fight the HST. Does Ontario need democratic reforms similar to those in British Columbia? I welcome your response. I may be reached at 905-697-1501 or 1-800-661-2433 and by e-mail at john.otooleco@pc.ola.org.    

Sale of Assets a “Trial Balloon” for Government

There were indications last week that the McGuinty government is considering the sale of parts of Ontario’s lottery network (OLG), electricity system (OPG and Hydro One) and  the LCBO. Media reports have indicated the McGuinty government is thinking about amalgamating these four enterprises into a single mega corporation and then selling a portion of the company to private sector investors. This announcement looks to me like a “trial balloon.” If there’s a favourable response to the concept, it will proceed. If there’s public outrage, it will be quietly shelved. I also believe they are trying to get us to stop thinking about the HST.

In my view, the creation of a single mega corporation doing everything from generating nuclear power to regulating the price of wine coolers and selling lottery tickets won’t help Ontario families struggling to make ends meet A mega-corporation is simply a bad idea. Given the provincial government’s track record and scandals such as e-Health, potential investors may be reluctant to invest in a corporation where the lead shareholder remains the McGuinty government. And, if the province gives away more than controlling interest, then these valuable revenue generating assets will be lost forever. Most importantly, there has been no opportunity for public debate on the implications of privatizing part of the above assets. One has to ask why. Does this government just want more money to spend, as well as the health tax and HST?

Rent Increase Guideline for 2011 Announced

Ontario’s rent increase guideline for the year 2011 will be 0.7 per cent. In announcing next year’s guideline, the provincial government noted that the guide will apply to increases between January 1 and December 31, 2011. The guideline for the current year of 2010 has been 2.1 per cent. This is the largest amount by which the landlord may increase the rent of most tenants without seeking approval under the Landlord and Tenant Board. While the lower rent ceiling is good news for the year ahead, I am concerned that the guideline does not reflect the added costs tenants will face in maintenance fees as a result of the Harmonized Sales Tax (HST). The HST is not directly applied to rents. However, the added costs that landlords face as the result of the new tax will eventually be passed on to the tenants in the form of higher rents.

First Nations Receive HST Exemption

The federal government has agreed to give Ontario’s First Nations a point-of-sale exemption from the HST as requested by the Province of Ontario. In June 2010, all provincial parties supported a motion in the Ontario Legislature calling on the federal government to maintain the current point of sale exemption. In announcing the exemption, the federal government has indicated that the province missed a deadline for listing point-of-sales rebates. However, the exemption is proceeding anyway. It will come into place on September 1, 2010. In the interim, from July 1 to August 31, First Nations can receive refunds by submitting receipts to the Ministry of Revenue. One should ask why the provincial government overlooked the First Nations exemption when negotiating with the federal government. Also, how about additional point of sale exemptions for Ontarians with low incomes?