In a speech to party members in Niagara Falls, McGuinty described his government’s idea for a Green Energy Act, as well as plans to harmonize the provincial and federal sales taxes.
Green Energy Act To Develop Renewable Energy Sources
The Liberal government believes they will place Ontario at the forefront of a Green Economy by introducing the Green Energy Act. The act includes plans to expand the province’s use of renewable energy, as well as making it easier for lower levels of government to begin their own renewal energy projects.
The legislation provides measures to support investment in greener energy in order to begin developing a smart grid that will be adaptable to the utilization of alternate forms of energy. “A smarter grid is essential to maximizing the energy from Ontario’s abundant solar and wind resources,” McGuinty stressed in a news release to Canwest Newswire.
It’s suggested that investment in green energy will create up to 50,000 jobs within the next three years. The Green Energy Act is to be introduced to the Provincial legislature within the next month.
McGuinty Government Plans To Harmonize Sales Taxes
Following a recommendation by the Ontario Chamber of Commerce, the McGuinty government is examining the possibility of harmonizing its sales tax with the Goods and Services Tax (GST). The move would save businesses up to $100 million/year in operating expenses, and cut down on the red tape, as they would only have to deal with one tax. It could potentially cost government billions in revenue. “We in government need to help by making investments in workers, technologies, and research more affordable,” McGuinty remarked to the Toronto Star. He added that because it affects so many people, tax harmonization could not be done without federal help.
The Federal Conservatives have been pressuring Ontario to harmonize its taxes for years. Provincial Conservative MPP (Member of Provincial Parliament) Tim Hudak told Canadian Press that while he welcomes changes to the PST, the government would need to ensure “it isn’t going to put a weight on the backs of consumers already struggling with high taxes and energy costs.” Supporters of the idea believe that in the long run consumers will save money, and businesses will become more productive.
If enacted, Ontario will become the 4th province together with New Brunswick, Nova Scotia and Newfoundland & Labrador to have harmonized their sales taxes.
Other options for saving money include Dalton Days- forcing the public sector to take unpaid days off. Finance Minister Dwight Duncan flatly denied this was even a consideration. The McGuinty government is to present their budget in March and have already begun informing Ontarians to expect substantial deficits.
