Wed Nov. 04 2009 3:40:29 PM
McGuinty implies deficit could see civil servants take unpaid days
The Canadian Press
Ontario Premier Dalton McGuinty speaks to journalists on Tuesday September 8, 2009. (THE CANADIAN PRESS/Chris Young)
NIAGARA-ON-THE-LAKE, Ont. — Ontario's Liberal government will open talks with nurses, teachers and civil servants on ways to eliminate the province's record $25 billion deficit, Premier Dalton McGuinty said Wednesday as he refused to rule out unpaid days off for public sector workers.
Former NDP premier Bob Rae had proposed a similar strategy to deal with a deficit in the early 1990s, which the unions condemned as "Rae Days."
McGuinty joked at the Ontario Economic Summit in Niagara-on-the-Lake that he liked the sound of "Dalton Days."
"I like the alliteration," he told the business audience.
"We're going to have to sit down with our public sector partners, both those who work in the immediate government and our broader public sector, and see what our responsibility is."
McGuinty defended the government's decision to go deep into the red to counter the impact of the economic downturn, something he said public sector workers had been "sheltered" from until now.
"By and large it's been a private sector recession, not a public sector recession," he said.
"We all understand that, and I think that's one of the reasons why we're going to want to make sure we do our share when it comes to finding more efficiencies in government."
The public sector has a duty to help eliminate the deficit, said McGuinty, but the government won't implement any plan to deal with the shortfall -- such as "Dalton Days" or pay cuts -- without consulting the workers who would be affected.
"I think what's important is to begin this conversation with our partners -- and that's how we've treated them from the outset, whether you're talking about our teachers, our nurses, those people in the various ministries, water inspectors, our meat inspectors -- we're all in this together," he said.
"I think we all feel a sense of responsibility to find a way to make our government more streamlined."
Any strategy for eliminating the red ink won't be announced before next spring's provincial budget, added McGuinty.
"There's no quick fix, and there's no easy way out of this," he said.
The premier also launched into a spirited defence of his plan to harmonize the eight per cent provincial sales tax with the five per cent GST starting next summer. He said he understood the HST was controversial but was convinced it would help the economy grow.
"I know the HST is controversial and I can understand why Ontarians on an individual basis have some reservations," he said.
"But I want all of us to understand that we're doing this for good reason: to strengthen the economy so we'll have the continuing capacity to create jobs for our kids and our grandchildren and to support our schools, hospitals and environmental protections."
The government also released a report by Jack Mintz of the School of Public Policy at the University of Calgary, who said harmonizing the sales taxes combined with corporate and income tax cuts will help create an estimated 591,000 new jobs over 10 years.
It would also lead to an additional 8.8 per cent increase in annual incomes and boost capital investment in Ontario by $47 billion in a decade.
"It's not just that you're going to create more jobs, but because of the significant capital investment that's induced by these tax changes, it will allow businesses to invest in capital with the latest technologies and allow people to get higher incomes as a result, said Mintz.
Securing an additional $47 billion in investment is equal to getting five new car assembly plants every year for the next 10 years, said McGuinty.
"Remember how excited we all were when we landed the new Toyota investment? That was $1 billion."
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Comments are now closed for this story
November 04, 2009 at 3:46:23 PM
Alex
Maybe they should also give back their 25% pay raises.
I don't see any evidence that they did anything to earn a raise.
Lead by example and quit lying to us.
November 04, 2009 at 4:04:05 PM
Doug, Toronto
Here's an idea. Time to stop allowing ALL levels of government to stop taking more holidays then the rest of us. Why do the taxpayers have to work so that government workers can have it off?
Easter Monday, Rememberace Day? Just two of the days that we work, so those we pay for don't have to.
Disgusting.
November 04, 2009 at 4:31:15 PM
Kobe
I find that Ontario is digging a grave for them self. I been living in Toronto for 25 years, and i am feed up with the way the Government is running the system, the general public has to be more educated and stop relying on the government to help you, that can't help them self. People got to stand up to this, we can't let the government walk over us, its hard enough to find jobs, and with the increase in living, people better starting thinking of a new city to move to, Toronto is going downhill. just my 2 cents.
November 04, 2009 at 4:36:34 PM
GJ
People complained about the NDP and the old "Rae Days". Well now, have you had enough of McGuinty yet and his variations? You do realize that less than 25% of the so called Health Tax actually goes to health care? Just how much more including the HST are people of Ontario going to swallow before you get the courage to say enough is enough?
November 04, 2009 at 4:53:28 PM
pete
after the Mcguinty gov screwing up the E health, giving all this money out in severance pay and now they want the workers to take unpaid leave days.
what a joke, he should take unpaid leave days himself and make it permanent.
Him and Miller make a good pair,
November 04, 2009 at 5:16:33 PM
Eric
Maybe if our money didn't get wasted on scandals like eHealth there wouldn't be a such a shortfall. These mumps have to go! Where is Mike Harris when we need him?
November 04, 2009 at 5:26:28 PM
dave
So work less and pay more taxes at all levels, that really works well if you want to push everyone to poverty or leaving the country. Or I have a better idea, change the government.....
November 04, 2009 at 6:03:12 PM
Emilie
Here we go again!! Bob RAE nightmare coming back to hunt us.
The government bails out large company and then the public employees have to pay.
I use to work for the public sector and bob rae took 15% of my salary to pay for the deficit. Did this help no? Where is the deficit now?
BOY THIS GOVERNMENT always like to take from the poor and give to the rich. When will they take from the rich and give it back to the poor.
November 04, 2009 at 6:26:08 PM
Bob Piat
Why should Nurses, Teachers and Civil Servants be the only ones who have to contribute $$ to get Ontario out of the deep hole the government has us in? Why not have EVERYONE pay. People in all sectors of the working force could be given a day off, on a staggered basis, and their employers could forward their pay, for that day, to the Provincial Govt.
November 04, 2009 at 7:56:49 PM
Brad from Waterloo
It's about time that they become part of the solution because if they don't they are part of the problem. I know SO many people in the private sector that have taken a hit so it's only fair instead of adding insult to injury by just raising taxes. My siblings are in the public sector and there sense of entitlement is disgusting!
November 04, 2009 at 8:36:53 PM
Emilie
They should go get the tax money they gave out to bail out huge company, get the money back for the ehealth that you fired out.
Why should the tax payer suffer for the mishandling of the funds by the government.
The premier should work completely for free with no salary at all. Try to survive without our tax money paying your salary.
November 04, 2009 at 11:25:09 PM
emileshouldsleep
no cencer
November 05, 2009 at 7:53:22 AM
Joan Grant
I wish the media would get it right! Bob Rae Days and June Rowland Days were not unpaid vacation days. They were unpaid work days. My husband had to go in to work but was not paid for it. His paycheques were short by one day's pay under both Rae and Rowlands. Now he gets to suffer under Squinty McGuinty!
November 05, 2009 at 9:00:50 AM
Marie
This is just another kick at the struggling. If McGinty thought before he sold out Corporations Tax and now the PST to the Feds. we would not have such a huge deficit. The of course we have the EHealth and OLG scandal where the ones screwing up get big pay outs. Take a look at the salaries of OPG and Cancer care in the salary disclosures that are public record and see where the big bucks are being wasted. I would not be willing to take UNPAID days off because McGinty is a idiot. Bring back Corp. Tax, fire the scandal people with no big packages and scrap the HST. The HST will hurt all people rich or poor. We need a new government. Hopefully there will be someone worth voting for. Not likely.
November 05, 2009 at 9:11:45 AM
Kelly
You're all hilarious. This whole province has lost their minds. Honestly, if I did not have such a good job here in Toronto, I would move back to Montreal in a second. I lived in Montreal untill I was 24, no debt, nothing. Move to Toronto, in debt, horrible apartments that are way over priced, horrible homes that are WAY over priced, horribly high car insurance rates, expensive beer. This is ridiculous. It cost me 650$ a month including utilities, for 3 bedrooms, a large kitchen, a large family room, a study and 2 bathrooms in Montreal in a NICE area, here, that is costing me $1500 a month, not including utilities. It's kind of sad the difference between the two provinces. And hey, Montreal is partially harmonized and everything was cheaper every day for me.
November 05, 2009 at 9:15:51 AM
marie
Further to my comments, has McGinty considered the salaries he is not paying by transferring corporate tax to the feds. The prov. gov. transferred over 300 positions to the feds also leaving approx. 150 looking for other jobs. Some have been place but the rest are being let go. Then we has PST which is going to the feds. If they can't place the balance of corporate tax employees what is going to happen to the 1,500 + that are going with the harmonization. Look at the salaries he is saving. Flip side, EI is going to increase. Stop bailing out your cronies and scandal laden commissions and use your head. You are already saving but cutting the provincial government. I am not sure where Alex is getting 25% pay raise from. The last contract saw provincial government workers getting 3% over 4 yrs. Someone wake up and do the math. You think you wait in lines or for months to get service from Ontario, wait and see what the future brings. McGinty is selling out Ontario. The billions he is losing in revenue from Corporate tax and PST is what is making up the deficit.
November 05, 2009 at 9:18:28 AM
81
I agree 110% Alex, time they gave back what they stole 25% pay increase, and the Fiberals screamed when Bob Rae did it but now they wanna do it to. Time they gave up all their little perks and huge pay raises. But we will see come voting time, people will seem to have forgotten and vote Fiberal again.
November 05, 2009 at 9:30:37 AM
Matt
Maybe its time we cut back on other things.. like those city "workers". Where I live there's about 10 full time staff watching a park barely anyone goes to. They drive around in pick up trucks and get paid huge salaries to do literally nothing. No wonder our city has no money.
November 05, 2009 at 10:05:39 AM
disgusted
What a joke!
I left nursing, for another career, after 20+ years because of this type of foolishness.
They will cut staffing BUT not expectations. The nurses will simply have to do more with less.
It's already illegal for hospitals to run deficits. They have pushed the staff to the breaking point & now they want to push more. You can't imagine how hard they work unless you've done it. No wonder we have a chronic nursing shortage.
November 05, 2009 at 12:02:35 PM
CSmith
Most public servants have no idea what the real working world is like. They all have well paying and secure jobs with fantastic pensions. They have had no impact from this bad economy. I say they take those "extra" vacation days like Remembrance Day and Easter Monday as unpaid. Maybe it should be a prerequisite for all public employees to have several years experience in the private sector before qualifying for a public sector job. That would make them appreciate just how good they have it!
November 05, 2009 at 2:00:13 PM
EC
Dear Emilie and the rest of you civil servants. Perhaps you haven't noticed but right now you are the rich. You have not lost your job, have not had your hours and pay reduced and you are not stressed about either of these things happening to you. it's pretty easy to complain when you live in a glass bubble. What was it you said about taking from the rich and giving to the poor????
November 05, 2009 at 2:25:14 PM
Dave
I never studied Economics, so I feel quite confident to speak on the matter.
The reason that the economy is a mess is because we, the common citizens, have stopped buying. Why? We are getting gouged by governments on taxes (I remember no PST (and it came in at 3%)
and, no GST), inflated profits of retailers/gas companies etc., high cost of doing business thanks to the Unions.
Nobody realizes that the economy rests with the little guy and if you kill him, that is it.