SCARBOROUGH: Budget helps business community, board says
He wouldn't have found a sympathetic audience.
Flaherty has spent the last several weeks slamming what he calls Ontario's weak-kneed action on the economy and took his latest swipe over the budget, released by provincial Finance Minister Dwight Duncan late Tuesday afternoon.
In a highly unusual move on the eve of the budget, Flaherty spoke out in the media on his expectations for Ontario. He demanded Ontario slash corporate taxes.
Flaherty, Ontario's former finance minister, has also spent the last several weeks publicly complaining about the province's slowing economy and warning Ontario is the last place businesses want to invest due to its unfriendly corporate tax rate.
But the Toronto Board of Trade is praising Queen's Park's efforts to support businesses.
President Carol Wilding said the budget invests in infrastructure, skills and education - efforts that will strengthen Toronto's economy.
She also welcomed initiatives to reduce business taxes, particularly for the struggling manufacturing sector.
Scarborough Centre MPP Brad Duguid said his government took its lead on $750 million worth of tax cuts over four years from the business community.
For example, eliminating and rebating the capital tax retroactive to Jan. 1, 2007, will help strong companies and struggling manufacturers, he said.
Board of Trade chairperson Betty Carr dismissed Flaherty's concerns, saying the province has taken and continues to take positive steps to support the business community.
"It's always nice when the federal minister pays attention to Toronto but it would be better if they were co-operating with our provincial government," she said.
"The budget has addressed many needs. The budget has taken major steps. Infrastructure is a great step, especially for transit. I think we got some really good wins for business at some levels."
The only area where Carr would like to see more gains is uploading further services from municipal governments to the provincial government.
However, she pointed out a report on the issue is expected this spring, adding the board anticipates Queen's Park will take action after its release.
Duguid slammed Flaherty's outspoken criticism, pointing to the damage his government did to Ontario's education, health care and environment services under former premier Mike Harris.
"Mr. Flaherty's actions, I think, are seen by almost all in the financial community as being injurious to our efforts to work through this difficult economic period," Duguid said.
Ontario has ignored Flaherty's single focus on slashing corporate taxes in favour of a more balanced five-point plan, he said.
Highlights of the budget include $1.5 billion for programs such as retraining unemployed workers, expanding apprenticeship programs and investing in post-secondary education, $1 billion in new municipal infrastructure improvements over the next year, $17.5 billion for a rapid transit plan, $293 million for improvements to the Yonge subway, $7.1 million for the TTC light rail transit head start program, $500 million over three years to hire 9,000 nurses, boosting social assistance rates by 2 per cent and spending $32 million over three years on a student nutrition program.
Shyam Ranganathan, dean of Centennial College's school of hospitality, tourism and culture, praised the budget's investment in education and training.
"I congratulate the government on a very comprehensive education budget," he said.
However, he is worried with so many teachers and professors due to retire in the next three to five years, there won't be educators available to provide the training the province is funding.
But Scarborough-Agincourt MPP Gerry Phillips said the retirement trend will be offset by more people becoming teachers through retraining programs and young people and immigrants entering the profession.
