MOODY’S REPORT A WARNING NOT TO BE IGNOREDFebruary 24, 2015
QUEEN’S PARK – A new credit agency report represents another warning to the Wynne
Liberals to abruptly change direction when it comes to Ontario’s finances, Ontario PC
Finance Critic and Nipissing MPP Vic Fedeli said today.
Moody’s says Ontario is in a more challenged position than Quebec to eliminate its
deficit because “it faces larger ongoing deficits and also because there is a risk that all
the cost controls designed to return Ontario to a balanced budget may not be carried
“Ontario’s persistently large deficits, and its tendency to delay the most significant cost
cutting measures towards the latter years of its projected timeline for returning to a
balanced budget, increase the risk that the province will be unable to achieve its goal,”
said Michael Yake, Moody’s Vice President and Senior Analyst and report author.
Moody’s also expects the province’s debt burden to remain elevated for several years
after balanced budgets are reached.
“This is the latest in a series of economic warnings the scandal-distracted Liberals have
ignored. First, they were told they wouldn’t meet revenue targets, and then acted
surprised when they missed those by $500 million. Then the Auditor General warned of
credit rating downgrades, one of which actually happened in December,” said Fedeli.
“Their refusal to stop new spending is driving up our debt, and is hurting business
investment confidence,” Fedeli added, pointing to an Ontario Chamber of Commerce
survey which showed business confidence in the province had plummeted to just 29 per
“The Liberals heard over and over again at the pre-budget hearings their tax and spend
approach can’t continue. It’s time they finally heed the advice from the experts.”
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