HI Tim,
Can you post the below for me on blog. Thanks Ingrid
This was posted by Livio Di Matteo, a professor of economics at Lakehead University, Thunder Bay. Hopefully, he will be present on Thursday asking these questions.
Feb 14, 2011
Posted By: Livio Di Matteo
The Honourable Dalton McGuinty, Premier of Ontario will be in Thunder Bay on Thursday February 17th to participate in an informative luncheon on Ontario’s plan for jobs and growth sponsored by the Thunder Bay Chamber of Commerce. The Premier will undoubtedly use the opportunity to promote his economic vision for Ontario in the wake of the recent recession and into the challenges of the next decade especially given the looming October election. This will hopefully also provide an opportunity for the audience to ask Premier McGuinty some questions not only about the Ontario economy as a whole but also with respect to the economy of Northern Ontario. Here is a list of potential topics I would like to see addressed.
1. Good tax policy from a public finance perspective makes much of the need to lower rates and broaden the base when it comes to tax changes. While the onset of the new HST certainly broadened the consumption tax base by subjecting a wider range of goods to consumption taxation, the combined rate of a 5% GST and 8% PST is still 13%. As currently imposed, the HST is therefore a revenue enhancer. Given the broadening of the consumption tax base that occurred under the HST, would not a rate of say 10% or 11% been more revenue neutral and more in keeping with good tax policy?
2. Ontario’s net debt to GDP ratio and the deficit has grown tremendously over the last five years. Interest rates seem to be on their way up which threaten to raise the cost of debt servicing in the medium term future. Given that economic recovery from the recession is now underway, what is the plan to balance the budget and start paying down the debt to offset the rising costs of future debt servicing due to rising interest rates?
3. Could you please explain how closing the two coal plants in Northwestern Ontario (while keeping the Nanticoke plant in southern Ontario open) and then converting the Atikokan plant to biomass (which essentially burns trees to produce electricity) and the Thunder Bay plant to natural gas (which is also a fossil fuel) can be both more environmentally friendly and a more cost-effective way of generating electricity?
4. The cost of electricity is an important factor in Northern Ontario’s resource processing industries. It is very likely that much of the projected development in the Ring of Fire will be severely curtailed given the continued high cost of electricity in Ontario relative to Manitoba and Quebec. As a result, should mining development occur, the odds are there will be very little value added processing within Ontario and the development will be pure extraction. What is the Ontario government planning to do to make Ontario electricity rates more competitive with other jurisdictions?
5. There has been continual advocacy in Northwestern Ontario for more autonomy within Ontario especially over the control of natural resources, energy and transportation policy via the form of a regional government and/or a regional power authority. However, these requests have not been received favorably by your government. What are your reasons why Northwestern Ontario should not be allowed to take on more responsibility for its economic future via either regional government or a regional power authority?
6. We are still waiting for the release of the Northern Growth Plan. What is your best guess for a release date?
Can you post the below for me on blog. Thanks Ingrid
This was posted by Livio Di Matteo, a professor of economics at Lakehead University, Thunder Bay. Hopefully, he will be present on Thursday asking these questions.
Feb 14, 2011
Posted By: Livio Di Matteo
The Honourable Dalton McGuinty, Premier of Ontario will be in Thunder Bay on Thursday February 17th to participate in an informative luncheon on Ontario’s plan for jobs and growth sponsored by the Thunder Bay Chamber of Commerce. The Premier will undoubtedly use the opportunity to promote his economic vision for Ontario in the wake of the recent recession and into the challenges of the next decade especially given the looming October election. This will hopefully also provide an opportunity for the audience to ask Premier McGuinty some questions not only about the Ontario economy as a whole but also with respect to the economy of Northern Ontario. Here is a list of potential topics I would like to see addressed.
1. Good tax policy from a public finance perspective makes much of the need to lower rates and broaden the base when it comes to tax changes. While the onset of the new HST certainly broadened the consumption tax base by subjecting a wider range of goods to consumption taxation, the combined rate of a 5% GST and 8% PST is still 13%. As currently imposed, the HST is therefore a revenue enhancer. Given the broadening of the consumption tax base that occurred under the HST, would not a rate of say 10% or 11% been more revenue neutral and more in keeping with good tax policy?
2. Ontario’s net debt to GDP ratio and the deficit has grown tremendously over the last five years. Interest rates seem to be on their way up which threaten to raise the cost of debt servicing in the medium term future. Given that economic recovery from the recession is now underway, what is the plan to balance the budget and start paying down the debt to offset the rising costs of future debt servicing due to rising interest rates?
4. The cost of electricity is an important factor in Northern Ontario’s resource processing industries. It is very likely that much of the projected development in the Ring of Fire will be severely curtailed given the continued high cost of electricity in Ontario relative to Manitoba and Quebec. As a result, should mining development occur, the odds are there will be very little value added processing within Ontario and the development will be pure extraction. What is the Ontario government planning to do to make Ontario electricity rates more competitive with other jurisdictions?
5. There has been continual advocacy in Northwestern Ontario for more autonomy within Ontario especially over the control of natural resources, energy and transportation policy via the form of a regional government and/or a regional power authority. However, these requests have not been received favorably by your government. What are your reasons why Northwestern Ontario should not be allowed to take on more responsibility for its economic future via either regional government or a regional power authority?
6. We are still waiting for the release of the Northern Growth Plan. What is your best guess for a release date?
No comments:
Post a Comment