Time to tear down economic roadblocks, McGuinty says

Ontario Premier Dalton McGuinty is signalling his government intends to make the provincial economy more competitive.

In an interview with CBC News, McGuinty said he is going to refocus his government on getting rid of the obstacles to business growth.

In its first five years in power, the McGuinty government has focused on public services.

It increased government spending on health care and education by more than $20 billion.

But McGuinty told CBC News that era has come to an end — and not just because of the current economic situation.

"We're going to have to devote more attention than we have in the past to strengthening the underpinnings of the economy," he said during the interview at his Queen's Park office.

McGuinty said there are fundamental problems with the Ontario economy and the government is part of the problem.

"Why do we put so many roadblocks in the way of businesses when it comes to growth?" he asked.

One roadblock is the need for both federal and provincial environmental assessments on infrastructure projects. McGuinty said he expects the federal government will agree to have just one.

Another roadblock is high corporate tax rates coupled with the annoyance for many businesses that the GST covers some things and the provincial sales tax others.

"I think we need to take a look at our levels of taxation, and also how we tax ourselves," said McGuinty.