Chamber Delegation Addresses Standing Committee at Provincial Pre-Budget Consultations
26 Jan 2010
January 26 2010
Media Release
London Chamber Provides Recommendations for 2010 Provincial Budget
London was one of a handful of Ontario cities that was chosen to host Ontario's 2010 Pre-Budget Consultations. And the London Chamber of Commerce was amongst the chosen of numerous groups that applied to present to the Standing Committee on Finance and Economic Affairs at those consultations. It was an opportunity to influence the upcoming Provincial Budget and it was the Chamber's responsibility to represent its members as the voice of business. (The London Chamber of Commerce has approximately 1000 member firms representing in excess of 56,000 employees).
At the consultations, the Chamber commended the Provincial government for the steps that it has taken so far to stimulate the economy and help to pull the Province out of recession as well as for its progress in implementing more effective tax strategies to keep Ontario competitive.
The Chamber delegation, however also warned the Committee that massive, out of control debt and deficit combined with a lack of a clear plan to address it, is a serious threat to our economy and our future competitiveness.
Having surveyed its membership prior to the budget consultations, the London Chamber of Commerce found that when it comes to size of the current (estimated) deficit of $25 billion, 81% of those who responded indicated they were concerned or very concerned. On the matter of the accumulated debt (estimated to be between $139 and $159 billion), 86% were either concerned or very concerned. On the lack of a clear focused plan to address the budget deficit, 83% were also concerned or very concerned.
Taking these concerns into account, the Chamber delegation provided recommendations focusing primarily on deficit and debt reduction including setting the following targets in reduction of the provincial government:
* 30 per cent (30%) by the end of the fiscal year (March 2011)
*With reductions of 10 per cent (10%) per year in the subsequent years, i.e. to 40% by 2012, 50% by 2013 etc.
* With the elimination of the deficit at worst by the end of the decade (2019)
When questioned as to the achievability of this timeline, Gerry Macartney CEO and General Manager of the London Chamber of Commerce noted that while the rate of recovery in the economy would have to be considered along the way, it was important that the Province have clear targets in reaching this goal. "If you don't like this formula," Macartney stated, "that's fine, but then show me a better one."
For a copy of the complete recommendations that were provided to the committee, see attached
Attachments
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