Ontarians Being Left Behind by Wynne Government PoliciesJuly 19, 2016
QUEEN’S PARK – The latest GDP data shows Ontario’s economy is increasingly built on the unstable combination of low interest rates and an unsustainable housing market – not sound government policy, Nipissing MPP Vic Fedeli stated today.
Today, Premier Wynne announced the province’s real GDP grew by 0.8 per cent in the quarter. The main drivers of growth were a 12.1 per cent increase in housing prices and the current monetary environment of low interest rates and a low Canadian dollar.
“Regardless of the Premier’s spin, these latest results are despite this government’s failed economic policies, not because of them,” said Fedeli. “The Wynne government is touting success that is largely based on artificial growth.”
“The fact is a vast majority of Ontarians are not better off. An unprecedented number of families and businesses have been plunged into energy poverty because of this government’s policies and Statistics Canada has found that median family growth in Ontario has been substantially lower than the national average,” Fedeli added. “What’s more, the price of electricity, food and vehicles all rose but were offset by lower gasoline and natural gas prices. The costs of these essentials will skyrocket once the Wynne Liberals’ plan to phase out affordable natural gas comes into effect.”
Two recent reports reflect this lack of confidence in the fundamentals of Ontario’s economy. Ontario’s Financial Accountability Officer recently warned that total investment by Ontario business and public sector institutions is expected to decline by 0.1 per cent this year.
Foreign direct investment in Ontario has also fallen off sharply in the past year. The annual report from fDi Intelligence shows Ontario has dropped to fourth in North America this past year, from $7 billion in investment to $4 billion. As such, Ontario’s market share has been cut in half from 12 per cent in 2015 to just 6 per cent this year.
“While the Premier is trumpeting GDP growth, it is clear that policies designed by the Wynne Government only benefit insiders and friends of the government, while everyday Ontarians continue to be left out.”