McGuinty says Ontario economy 'facing challenges'
Premier Dalton McGuinty reached out Tuesday to reassure jittery Ontarians in the wake of the first-ever downgrade of U.S. government debt that sent financial market tumbling.
The Liberal premier joined other Canadian leaders, including Prime Minister Stephen Harper, to calm fears that another global recession is lurking around the corner.
McGuinty acknowledged Ontario is facing "some challenges," but the province has taken steps since the 2008 downturn to strengthen its fragile economy.
"I know that Ontarians are little bit concerned about unsettling events that are unfolding in places like the U.S. and Europe, but our economy is in fact more stable here," he said.
"Our debt levels, relatively speaking are much more manageable. We continue to create jobs. When the recession hit us we did smart things like stimulating our economy, we supported our ailing auto sector."
McGuinty, who is facing an election Oct. 6, also touted his government's push for renewable energy business, saying the governing Liberals are still "in the driver's seat" when it comes to bolstering the economy.
"It's impossible to — nor would we want to — completely uncouple from the global economy, because it does represent tremendous opportunity for wealth creation and new jobs here," he said after announcing $80 million for electric car-charging stations.
An RBC economist has already predicted that Ontario is on track to mark its best year for growth in a decade, McGuinty added.
But his federal cousins don't appear to share McGuinty's optimism about the economy. They are calling on Finance Minister Jim Flaherty to appear before a House of Commons committee to discuss the situation.
"The finance minister needs to level with Canadians about the potential impact of the current financial turmoil on his budget numbers," Liberal finance critic Scott Brison said in a release.
"Canadians and investors need to be kept informed in order to shore up confidence in our economy."
Ontario's opposition parties say the province's economic picture isn't a rosy as McGuinty claims.
Monday's market meltdown wiped out billions of dollars in stock value, hitting pension plans and investments hard, said NDP critic Peter Tabuns.
The Toronto stock market was higher Tuesday as investors bought up stocks that were beaten down in price after a series of plunges that brought the TSX to its lowest level in a year.
People who saw their savings dissolve won't be comforted by McGuinty's words, he said.
"I don't think a 'don't worry, be happy' message is going to be enough for people," Tabuns said.
Since the Liberals took office eight years ago, Ontario has lost hundreds of thousands of jobs, some of which were eventually replaced with lower-paying employment, he said.
Those who still have jobs are struggling to pay the bills, said Tory critic Peter Shurman. McGuinty's push for green energy will hike those household costs even more.
"Ontarians want to know that life will be affordable," he said.
"When the [electricity] bill comes in the mail, it can't be a surprise every month. It can't be a monster every month. It has to be something that is affordable and expected."