I know that Minister Gravelle has been very actively involved on this particular matter. We have been doing everything that we can to lend shape to very welcoming economic macro-conditions, hence the reason for our corporate tax cuts, to make us more attractive, hence the reason for the elimination of capital Taxes in Ontario this year. The Mining Act lends some certainty and creates some new opportunities as well. Those are the kinds of things that we continue to do, broadly speaking, but I'm sure that my honourable colleague would like to hear from my minister, and I'll be referencing this question to him on the supplementary.

I know. That's what I'm afraid of.

My honourable colleague, I'm sure, has heard me say in the past that I think the responsibility that we share here is to answer a question that is being asked by Ontarians on an ongoing basis, which is, what do we need to do to grow stronger? And the single most important thing that we need to do to give families this most important advantage-or perhaps even recognize a right that they have in life: a job. We've got to make sure that they've got a job. Everything else comes second to that, and our package of tax reforms is all about creating 600,000 more jobs.

My colleague knows that our world has changed, and we've got to make some changes as well. One of those changes is putting into place a modern, competitive system of taxation, lower personal income Taxes, lower business Taxes, a harmonized sales tax-all designed for 600,000 more jobs.

TAXATION

That's why we are accompanying the introduction of this package of tax reforms with a cut in personal income Taxes, with some three transitional payments to help families through this period of transition.

I ask my honourable colleague to keep in mind, as well, that we are not the first to do this. They've done it in the Maritime provinces. They've done it in 130 other countries. I think it's worthwhile noting that anybody who has ever done this has never undone it. They have never reversed it. Whether followed by a party in government on the left, a party in government on the right or a party in government in the middle, nobody has ever reversed it. That's why neither the NDP nor the Conservative Party will commit to undoing this. They know that fundamentally this is a good thing for people, it's a good thing for our economy and it's a good thing for our jobs.

I know. That's what I'm afraid of.

My honourable colleague, I'm sure, has heard me say in the past that I think the responsibility that we share here is to answer a question that is being asked by Ontarians on an ongoing basis, which is, what do we need to do to grow stronger? And the single most important thing that we need to do to give families this most important advantage-or perhaps even recognize a right that they have in life: a job. We've got to make sure that they've got a job. Everything else comes second to that, and our package of tax reforms is all about creating 600,000 more jobs.

My colleague knows that our world has changed, and we've got to make some changes as well. One of those changes is putting into place a modern, competitive system of taxation, lower personal income Taxes, lower business Taxes, a harmonized sales tax-all designed for 600,000 more jobs.

TAXATION

That's why we are accompanying the introduction of this package of tax reforms with a cut in personal income Taxes, with some three transitional payments to help families through this period of transition.

I ask my honourable colleague to keep in mind, as well, that we are not the first to do this. They've done it in the Maritime provinces. They've done it in 130 other countries. I think it's worthwhile noting that anybody who has ever done this has never undone it. They have never reversed it. Whether followed by a party in government on the left, a party in government on the right or a party in government in the middle, nobody has ever reversed it. That's why neither the NDP nor the Conservative Party will commit to undoing this. They know that fundamentally this is a good thing for people, it's a good thing for our economy and it's a good thing for our jobs.

I think it's worthwhile that we further explore the depth of the opposition to the HST to be found in the Conservative Party.

The member for Wellington-Halton Hills said, "They must follow the advice they sought from Roger Martin, and reduce Taxes on new business investment in Ontario."

The member for Carleton-Mississippi Mills said, "The Ontario government should harmonize its provincial sales tax with the federal goods and services tax."

The member for Cambridge said, "We have called on you to stimulate our economy by reducing the tax burden on business ... eliminating capital Taxes in Ontario, reducing Taxes on small business, and initiating serious negotiations with the federal government on tax reform."

That's the true position of the Conservative Party on the HST.

I want to continue to make the case which is obvious to all: that the Ontario Conservative Party, in fact, supports the HST.

Here's what the member for Thornhill said: "I am not saying that harmonization ultimately is a bad idea."

Here's what the member for Leeds-Grenville had to say: "I think, in theory, our party is supportive of harmonization. In principle, it's something we think should occur."

Here's what the leader of the Conservative Party said: "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes."

I greatly appreciate the performance put forward by my honourable colleague, but the fact of the matter is, the Conservative Party of Ontario, like the Conservative Party in Ottawa, supports the HST.

TAXATION

My honourable colleague is so committed to public debate that he deliberately scuttled two question periods. When we offered them more committee time, they rejected that.

I think it's important to hear from an author of a report called Building Prosperity that was prepared in 2006. The author is Mike Harris and this is what he said on the HST, "The five provinces that still apply the provincial sales tax to business inputs ... should take measures to exempt business inputs. Specifically, all provinces should harmonize the provincial sales Taxes with the federal goods and services tax."

1100

The reason that this party, like the federal Conservative Party, is in favour of the HST is because they know it's going to create 600,000 more jobs for the people of Ontario, and they know they don't have a better plan.

Interjections.

I think it's worthwhile that we further explore the depth of the opposition to the HST to be found in the Conservative Party.

The member for Wellington-Halton Hills said, "They must follow the advice they sought from Roger Martin, and reduce Taxes on new business investment in Ontario."

The member for Carleton-Mississippi Mills said, "The Ontario government should harmonize its provincial sales tax with the federal goods and services tax."

The member for Cambridge said, "We have called on you to stimulate our economy by reducing the tax burden on business ... eliminating capital Taxes in Ontario, reducing Taxes on small business, and initiating serious negotiations with the federal government on tax reform."

That's the true position of the Conservative Party on the HST.

I want to continue to make the case which is obvious to all: that the Ontario Conservative Party, in fact, supports the HST.

Here's what the member for Thornhill said: "I am not saying that harmonization ultimately is a bad idea."

Here's what the member for Leeds-Grenville had to say: "I think, in theory, our party is supportive of harmonization. In principle, it's something we think should occur."

Here's what the leader of the Conservative Party said: "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes."

I greatly appreciate the performance put forward by my honourable colleague, but the fact of the matter is, the Conservative Party of Ontario, like the Conservative Party in Ottawa, supports the HST.

TAXATION

My honourable colleague is so committed to public debate that he deliberately scuttled two question periods. When we offered them more committee time, they rejected that.

I think it's important to hear from an author of a report called Building Prosperity that was prepared in 2006. The author is Mike Harris and this is what he said on the HST, "The five provinces that still apply the provincial sales tax to business inputs ... should take measures to exempt business inputs. Specifically, all provinces should harmonize the provincial sales Taxes with the federal goods and services tax."

1100

The reason that this party, like the federal Conservative Party, is in favour of the HST is because they know it's going to create 600,000 more jobs for the people of Ontario, and they know they don't have a better plan.

Interjections.

I think what my honourable colleague is asking for is, in the circumstances, unreasonable. She is asking that we cut the cost of electricity. I think we've done the next best thing: We've held those rates steady for five continuing years. We think that's pretty important. I think it's a significant achievement and a real accomplishment.

Again, I would remind the honourable member that in addition to the harmonization of the provincial sales tax and the federal goods and services tax-something that has long been called for by her party, this party and economists generally-we are cutting income Taxes for the people of Ontario. Ninety-three per cent of the people of Ontario are going to have a permanent income tax cut. We're taking 90,000 Ontarians at the low-income level off the tax rolls forever.

So there is a balanced approach that we're bringing. In addition to holding those electricity rates steady for five years, we're now going to cut people's income Taxes.

My colleague made reference to mill closures. My sense is that the individual who wrote to the leader of the NDP would not have sent that letter were the mill open today.

This is about jobs. It's about 600,000 more jobs for the people of Ontario. It's creating those economic conditions that lead businesses to expand, to make further investments in machinery and equipment and in people. That's what this is all about.

When they put harmonized sales Taxes in place in the Maritimes, that led to a 12% increase on the part of business in new equipment, new machinery and new jobs.

This is all about creating more jobs. We've had a very strong consensus.

If the opposite parties were to check their records, they would see that on many separate instances in the past, they've been very much in favour of the kind of tax reforms that we're putting in place. I'd ask for their support once again, this time in a more public way, as we move forward to create 600,000 jobs for Ontarians.

GOVERNMENT CONTRACTS

I think what my honourable colleague is asking for is, in the circumstances, unreasonable. She is asking that we cut the cost of electricity. I think we've done the next best thing: We've held those rates steady for five continuing years. We think that's pretty important. I think it's a significant achievement and a real accomplishment.

Again, I would remind the honourable member that in addition to the harmonization of the provincial sales tax and the federal goods and services tax-something that has long been called for by her party, this party and economists generally-we are cutting income Taxes for the people of Ontario. Ninety-three per cent of the people of Ontario are going to have a permanent income tax cut. We're taking 90,000 Ontarians at the low-income level off the tax rolls forever.

So there is a balanced approach that we're bringing. In addition to holding those electricity rates steady for five years, we're now going to cut people's income Taxes.

My colleague made reference to mill closures. My sense is that the individual who wrote to the leader of the NDP would not have sent that letter were the mill open today.

This is about jobs. It's about 600,000 more jobs for the people of Ontario. It's creating those economic conditions that lead businesses to expand, to make further investments in machinery and equipment and in people. That's what this is all about.

When they put harmonized sales Taxes in place in the Maritimes, that led to a 12% increase on the part of business in new equipment, new machinery and new jobs.

This is all about creating more jobs. We've had a very strong consensus.

If the opposite parties were to check their records, they would see that on many separate instances in the past, they've been very much in favour of the kind of tax reforms that we're putting in place. I'd ask for their support once again, this time in a more public way, as we move forward to create 600,000 jobs for Ontarians.

GOVERNMENT CONTRACTS

I want to begin by welcoming the leader of the official opposition back to the Legislature.

If the honourable member is asking us whether we are absolutely committed to this initiative, whether we are determined to cut Taxes for Ontarians effective January 1, whether we are determined to take 90,000 Ontarians off the income tax rolls effective January 1 and whether we're prepared to move ahead and create 600,000 more jobs for Ontarians, the answer from this government is yes.

I think Ontarians would be interested in knowing why the leader of the official opposition is not in fact prepared to repeal the HST. It's because he understands that while it's in place in 130 other countries and four of the provinces, at no time and in no way have any of those jurisdictions repealed it.

He knows that it's a plan to create 600,000 more jobs, and he's without a plan of his own when it comes to creating 600,000 more jobs for Ontarians. He knows it's a plan that's going to cut Taxes for Ontarians and for our businesses so that they can grow stronger, especially our manufacturing sector. He also knows that there are so many different economists on both sides of the spectrum, business groups and poverty groups that have built a very strong consensus around the need for us to find a way to move forward and embrace our future. He knows that the position he adopts right now is one of clinging to the past. He knows that the responsibility of leadership is to build a bright and promising future. He knows, more than anything else, this is-

That's just silly; I can't think of a more apt word.

I want to bring to the attention of my colleague something he has been saying in the last few months, even: "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes." He also said, "In the manufacturing sector, the problem with the PST is it cascades, so every step along the way there's a tax on tax on tax, which raises the cost of goods and particularly punishes exporters. So we understand how [a harmonized sales tax] can help the economy."

Again, we're wondering: If he's so adamantly opposed to this particular initiative of the HST, why did he support it just until recently and why does he refuse to repeal it?

I thank my honourable colleague for the question, and I want to remind her, as well, of why it's so important for us to work together and move forward with this package of tax reforms.

There's a lot of mythology and fiction connected with this particular initiative, but I think the facts, as I like to say, are not unimportant. Here are a few facts: Our plan represents the biggest tax cut ever in the history of our province: we're cutting personal income Taxes for 93% of Ontarians, effective January 1; we're taking 90,000 low-income Ontarians off the tax roll; we're cutting business Taxes to make our businesses stronger, but especially the manufacturing sector; and finally, it's important to understand that our tax reforms are going to cost the government $3.4 billion during our first four years, but we think it's very worthwhile investment in creating jobs for the people of Ontario.

I am pleased to get the question on behalf of that particular individual, who I believe is a single mum. Let me tell you about some of the things that we're doing to help Ontarians. In addition to cutting Taxes for 93% of Ontarians, 2.9 million families and individuals are going to get our new annual, permanent tax credit-$260 per person. There are also transition payments that we have in place. For the typical family, it's $1,000; for the typical individual, it's $300.

Beyond that, Taxes will not change for 83% of consumer purchases, notwithstanding the bleak picture that my honourable colleague continues to paint. We have been very deliberate in ensuring that we are fair to Ontarians, but particularly to those in the low-income levels so that they in fact come out ahead as a result of our package of tax reforms.

I want to begin by welcoming the leader of the official opposition back to the Legislature.

If the honourable member is asking us whether we are absolutely committed to this initiative, whether we are determined to cut Taxes for Ontarians effective January 1, whether we are determined to take 90,000 Ontarians off the income tax rolls effective January 1 and whether we're prepared to move ahead and create 600,000 more jobs for Ontarians, the answer from this government is yes.

I think Ontarians would be interested in knowing why the leader of the official opposition is not in fact prepared to repeal the HST. It's because he understands that while it's in place in 130 other countries and four of the provinces, at no time and in no way have any of those jurisdictions repealed it.

He knows that it's a plan to create 600,000 more jobs, and he's without a plan of his own when it comes to creating 600,000 more jobs for Ontarians. He knows it's a plan that's going to cut Taxes for Ontarians and for our businesses so that they can grow stronger, especially our manufacturing sector. He also knows that there are so many different economists on both sides of the spectrum, business groups and poverty groups that have built a very strong consensus around the need for us to find a way to move forward and embrace our future. He knows that the position he adopts right now is one of clinging to the past. He knows that the responsibility of leadership is to build a bright and promising future. He knows, more than anything else, this is-

That's just silly; I can't think of a more apt word.

I want to bring to the attention of my colleague something he has been saying in the last few months, even: "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes." He also said, "In the manufacturing sector, the problem with the PST is it cascades, so every step along the way there's a tax on tax on tax, which raises the cost of goods and particularly punishes exporters. So we understand how [a harmonized sales tax] can help the economy."

Again, we're wondering: If he's so adamantly opposed to this particular initiative of the HST, why did he support it just until recently and why does he refuse to repeal it?

I thank my honourable colleague for the question, and I want to remind her, as well, of why it's so important for us to work together and move forward with this package of tax reforms.

There's a lot of mythology and fiction connected with this particular initiative, but I think the facts, as I like to say, are not unimportant. Here are a few facts: Our plan represents the biggest tax cut ever in the history of our province: we're cutting personal income Taxes for 93% of Ontarians, effective January 1; we're taking 90,000 low-income Ontarians off the tax roll; we're cutting business Taxes to make our businesses stronger, but especially the manufacturing sector; and finally, it's important to understand that our tax reforms are going to cost the government $3.4 billion during our first four years, but we think it's very worthwhile investment in creating jobs for the people of Ontario.

I am pleased to get the question on behalf of that particular individual, who I believe is a single mum. Let me tell you about some of the things that we're doing to help Ontarians. In addition to cutting Taxes for 93% of Ontarians, 2.9 million families and individuals are going to get our new annual, permanent tax credit-$260 per person. There are also transition payments that we have in place. For the typical family, it's $1,000; for the typical individual, it's $300.

Beyond that, Taxes will not change for 83% of consumer purchases, notwithstanding the bleak picture that my honourable colleague continues to paint. We have been very deliberate in ensuring that we are fair to Ontarians, but particularly to those in the low-income levels so that they in fact come out ahead as a result of our package of tax reforms.

I want to remind my honourable colleague of the position that he used to have on harmonization and corporate tax cuts, which he now rejects. At the Economic Club on April 23 of this very year he said, "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes."

He was right then; he is wrong now. We plan to move ahead with this. We have given tremendous opportunity for the opposition, for Ontarians generally, to engage in this debate. It's an important one. We look forward to moving ahead with it to build a stronger Ontario and to create close to 600,000 more jobs.

1040

I thought for sure the honourable member would ask us today about the just-released report from Roger Martin and his task force on competitiveness and productivity, because he asked me about that very report last year at this time. I thought he would do it again. At that time, he specifically said, "Premier, will you commit to following Dr. Martin's good advice and reduce the level of business income Taxes as part of a plan to grow Ontario?"

I want to call to his attention the report released just today. It says the following: "The provincial government took a major step forward for Ontario's prosperity in improving our tax regime. By converting our provincial sales tax into a value added tax and harmonizing it with the federal goods and services tax and by reducing our corporate tax rates, the government has improved the motivations for investing in innovation and productivity.

"We have been urging this kind of reform since our first annual report, and we understand the courage required by the government to introduce these changes."

TAXATION

I sense a greater intimacy with the NDP these days.

Let me just say that we are very much looking forward to moving ahead with this initiative, and I think it's important to understand it in its entirety. We're talking about reducing personal income Taxes. We're talking about reducing corporate income Taxes for our largest businesses. We're talking about reducing Taxes for our small businesses as well. In fact, we're talking about putting in place a support package for small businesses to help them in their transition to the HST. We're talking about, in the end, creating nearly 600,000 more jobs for Ontarians.

I think that when all is said and done, there is nothing to which we attach greater value today, in the face of a global recession, than a job creation strategy. That's fundamentally what this is all about. I know that the NDP in fact support anything that we can do to create more jobs for Ontarians.

1050

I know we've spent a lot of time talking about the HST, and that's important, but there are other aspects to our package of tax reforms that are worthy of consideration as well. I only wish that my honourable colleague would draw the public's attention to those from time to time. Those include the following: 93% of Ontarians will get a permanent personal income tax cut; 2.9 million families and individuals will get a new annual tax credit of $260 per person. That is permanent. Additionally, there are transition payments: $1,000 for the typical family and $300 for the typical individual. Taxes won't change for 83% of consumer purchases.

Those are all dimensions to our package of tax reforms that my honourable colleague has not referenced in her attacks on the HST. Having said that, this comes down to 600,000 more jobs for Ontario families. I can't think of anything more important than us coming together to stand up for those 600,000 jobs.

I want to remind my honourable colleague of the position that he used to have on harmonization and corporate tax cuts, which he now rejects. At the Economic Club on April 23 of this very year he said, "To be clear, I believe that there's little sense in allowing two separate governments to apply two separate sets of Taxes and policies and to collect two separate groups of sales Taxes."

He was right then; he is wrong now. We plan to move ahead with this. We have given tremendous opportunity for the opposition, for Ontarians generally, to engage in this debate. It's an important one. We look forward to moving ahead with it to build a stronger Ontario and to create close to 600,000 more jobs.

1040

I thought for sure the honourable member would ask us today about the just-released report from Roger Martin and his task force on competitiveness and productivity, because he asked me about that very report last year at this time. I thought he would do it again. At that time, he specifically said, "Premier, will you commit to following Dr. Martin's good advice and reduce the level of business income Taxes as part of a plan to grow Ontario?"

I want to call to his attention the report released just today. It says the following: "The provincial government took a major step forward for Ontario's prosperity in improving our tax regime. By converting our provincial sales tax into a value added tax and harmonizing it with the federal goods and services tax and by reducing our corporate tax rates, the government has improved the motivations for investing in innovation and productivity.

"We have been urging this kind of reform since our first annual report, and we understand the courage required by the government to introduce these changes."

TAXATION

I sense a greater intimacy with the NDP these days.

Let me just say that we are very much looking forward to moving ahead with this initiative, and I think it's important to understand it in its entirety. We're talking about reducing personal income Taxes. We're talking about reducing corporate income Taxes for our largest businesses. We're talking about reducing Taxes for our small businesses as well. In fact, we're talking about putting in place a support package for small businesses to help them in their transition to the HST. We're talking about, in the end, creating nearly 600,000 more jobs for Ontarians.

I think that when all is said and done, there is nothing to which we attach greater value today, in the face of a global recession, than a job creation strategy. That's fundamentally what this is all about. I know that the NDP in fact support anything that we can do to create more jobs for Ontarians.

1050

I know we've spent a lot of time talking about the HST, and that's important, but there are other aspects to our package of tax reforms that are worthy of consideration as well. I only wish that my honourable colleague would draw the public's attention to those from time to time. Those include the following: 93% of Ontarians will get a permanent personal income tax cut; 2.9 million families and individuals will get a new annual tax credit of $260 per person. That is permanent. Additionally, there are transition payments: $1,000 for the typical family and $300 for the typical individual. Taxes won't change for 83% of consumer purchases.

Those are all dimensions to our package of tax reforms that my honourable colleague has not referenced in her attacks on the HST. Having said that, this comes down to 600,000 more jobs for Ontario families. I can't think of anything more important than us coming together to stand up for those 600,000 jobs.

I know that my honourable colleague will want to acknowledge that the package of tax reforms will cost us over $3 billion over the course of the first four years. That's a net cost to the treasury.

I know that she's also going to want to acknowledge at some point in time that they are devoid of ideas when it comes to strengthening this economy and creating more jobs. They tell us that they don't like our package of tax reforms, a package that will, effective January 1 of this year, result in cuts to personal income Taxes for 93% of Ontarians. They're against our plan to reduce Taxes for our large businesses-

Interjections.

It will result in an increase. We've been very clear about that from the outset. That's why we've worked hard to offset those increases with a number of things that we're doing.

For one thing, again, I would ask my honourable colleague to acknowledge the personal income tax cut that takes effect January 1 of this coming year, and I hope to have her support in connection with the bill in that regard. Beyond that, we're also taking 90,000 people in Ontario out from paying any income Taxes at all. We also have a new tax credit in place of $260 per individual in our low-income families. Those are the kinds of things that are going to help to offset some of the additional costs.

Having said that, I know that my honourable colleague is actually intent, in her heart of hearts, on finding a way for us to move forward and have the capacity to support our hospitals, our schools and our most vulnerable. She wants to build a stronger economy. It's just that she doesn't have a plan of her own.

I'm glad, now that the bill has been introduced in this Legislature, that the debate has been formally joined and the lines have been drawn.

I think the issue has become very clear. We have a plan on this side of the House to create 600,000 more jobs over the course of the next 10 years; they stand against it. We have a plan to reduce personal income Taxes; they stand against this. We're reducing corporate Taxes for big and small businesses alike; they stand against this.

The people of Ontario know what we stand for and what the opposition stands against. What they really want to know now is, knowing what we stand for-

Interjections.

It's always remarkable when the leader of the NDP stands up and champions the interests of business, but I will tell you that there is a very broad consensus in the business community and among economists of all political stripes that the single most important thing we can do to strengthen our economy and create jobs is to move ahead with our package of tax reforms. We are cutting Taxes for our small businesses. We are cutting Taxes for our larger corporations. We are cutting personal income Taxes. We are going to create 600,000 more jobs during the course of the next 10 years. Our tax reforms will result in nearly $50 billion more being invested in businesses in Ontario. We are going to see incomes grow by as much as 9% more than they otherwise would have.

This is part of our plan. We are proud of our plan. We know what the opposition stands against, but I think they owe it to all of us, but especially to Ontarians, to tell us at some point in time what they stand for. Where is their plan to create even a single job in the province of Ontario?

Again, I appreciate the representation made by my honourable colleague, but I disagree with her fundamentally in terms of what we need to do together to strengthen this economy and create more jobs. There will be ample opportunity for debate in this House. There will be committee hearings. Members, I expect, will have created opportunities of their own accord in their ridings and around Ontario to make sure that they're hearing from Ontarians.

Beyond that, what it falls down to-and there's no escaping this painful reality. We have a plan. We're putting forward a package of tax reforms. We're cutting personal income Taxes. We're cutting Taxes for small business. We're cutting Taxes for big business. We're going ahead with the HST. We're going to create 600,000 more jobs than we otherwise would have under the existing system. That's our plan. We're proud of that plan. On behalf of Ontarians, I ask the opposition: Where's your plan?

GOVERNMENT CONTRACTS

I know that my honourable colleague will want to acknowledge that the package of tax reforms will cost us over $3 billion over the course of the first four years. That's a net cost to the treasury.

I know that she's also going to want to acknowledge at some point in time that they are devoid of ideas when it comes to strengthening this economy and creating more jobs. They tell us that they don't like our package of tax reforms, a package that will, effective January 1 of this year, result in cuts to personal income Taxes for 93% of Ontarians. They're against our plan to reduce Taxes for our large businesses-

Interjections.

It will result in an increase. We've been very clear about that from the outset. That's why we've worked hard to offset those increases with a number of things that we're doing.

For one thing, again, I would ask my honourable colleague to acknowledge the personal income tax cut that takes effect January 1 of this coming year, and I hope to have her support in connection with the bill in that regard. Beyond that, we're also taking 90,000 people in Ontario out from paying any income Taxes at all. We also have a new tax credit in place of $260 per individual in our low-income families. Those are the kinds of things that are going to help to offset some of the additional costs.

Having said that, I know that my honourable colleague is actually intent, in her heart of hearts, on finding a way for us to move forward and have the capacity to support our hospitals, our schools and our most vulnerable. She wants to build a stronger economy. It's just that she doesn't have a plan of her own.

I'm glad, now that the bill has been introduced in this Legislature, that the debate has been formally joined and the lines have been drawn.

I think the issue has become very clear. We have a plan on this side of the House to create 600,000 more jobs over the course of the next 10 years; they stand against it. We have a plan to reduce personal income Taxes; they stand against this. We're reducing corporate Taxes for big and small businesses alike; they stand against this.

The people of Ontario know what we stand for and what the opposition stands against. What they really want to know now is, knowing what we stand for-

Interjections.

It's always remarkable when the leader of the NDP stands up and champions the interests of business, but I will tell you that there is a very broad consensus in the business community and among economists of all political stripes that the single most important thing we can do to strengthen our economy and create jobs is to move ahead with our package of tax reforms. We are cutting Taxes for our small businesses. We are cutting Taxes for our larger corporations. We are cutting personal income Taxes. We are going to create 600,000 more jobs during the course of the next 10 years. Our tax reforms will result in nearly $50 billion more being invested in businesses in Ontario. We are going to see incomes grow by as much as 9% more than they otherwise would have.

This is part of our plan. We are proud of our plan. We know what the opposition stands against, but I think they owe it to all of us, but especially to Ontarians, to tell us at some point in time what they stand for. Where is their plan to create even a single job in the province of Ontario?

Again, I appreciate the representation made by my honourable colleague, but I disagree with her fundamentally in terms of what we need to do together to strengthen this economy and create more jobs. There will be ample opportunity for debate in this House. There will be committee hearings. Members, I expect, will have created opportunities of their own accord in their ridings and around Ontario to make sure that they're hearing from Ontarians.

Beyond that, what it falls down to-and there's no escaping this painful reality. We have a plan. We're putting forward a package of tax reforms. We're cutting personal income Taxes. We're cutting Taxes for small business. We're cutting Taxes for big business. We're going ahead with the HST. We're going to create 600,000 more jobs than we otherwise would have under the existing system. That's our plan. We're proud of that plan. On behalf of Ontarians, I ask the opposition: Where's your plan?

GOVERNMENT CONTRACTS

I want to, through my honourable colleague, reassure all the individuals whose names she has put forward that we are in fact cutting their personal income Taxes.

I also want to speak to those people and all Ontarians who understand intuitively that our world has changed. We need to do something to build a stronger Ontario and create more jobs. They're not looking for strong champions and defenders of the status quo, which they will find on that side of the House. What they are looking for are people who are prepared to lead them into a bright and promising future, where we can secure a bright future for our children.

One part of our plan has to do with modernizing and putting in place a competitive tax system. That's what our package of tax reforms is all about. More importantly than anything else, it's about creating 600,000 more jobs. We will do everything necessary to move forward with this package of tax reforms and get in place those 600,000 jobs for the people of Ontario.

TAXATION

I appreciate the question, I really do, but I would rephrase it a little bit. "Why do poverty groups and food banks support our package of tax reforms?" I think is a good way to put the question.

I think it's important to keep in mind that under our package of tax reforms, 93% of Ontarians will get a permanent tax cut. That takes effect in January of this coming year, by the way. The average family with an $80,000 income will see a 10% tax cut in their personal income Taxes; 90,000 low-income Ontarians will no longer pay any personal income tax. And here's an important example: A single parent on social assistance with two children will save over $1,200 under our tax plan.

This is about helping all Ontarians, but we pay particular heed to those in low-income groups.

We know that my colleague's approach is to cut more Taxes. How he's going to pay for that, I'm not sure, but at least that is clear. We put in place a plan that is clear-and I think there's a broad level of support for it-of the things that we need to do at this point in time. We continue to invest in infrastructure; that creates jobs in the short term, and it enhances our economic productivity in the long term.

I think we had the opportunity to speak about this here just yesterday; my answer is the same.

What my colleague is talking about is the budget. In that budget, we did a number of things. In addition to ensuring that our corporations were competitive in a globalized economy, we moved to reduce personal income Taxes. We also accelerated the Ontario child benefit to help needy families meet expenses for their children. We also invested significantly in new retraining opportunities for people who have lost their jobs because of the global recession.

By the way, it's a budget that has been endorsed by poverty groups and food banks in Ontario in addition to business groups. We think it has struck the right balance.

We know that my colleague's approach is to cut more Taxes. How he's going to pay for that, I'm not sure, but at least that is clear. We put in place a plan that is clear-and I think there's a broad level of support for it-of the things that we need to do at this point in time. We continue to invest in infrastructure; that creates jobs in the short term, and it enhances our economic productivity in the long term.

I think we had the opportunity to speak about this here just yesterday; my answer is the same.

What my colleague is talking about is the budget. In that budget, we did a number of things. In addition to ensuring that our corporations were competitive in a globalized economy, we moved to reduce personal income Taxes. We also accelerated the Ontario child benefit to help needy families meet expenses for their children. We also invested significantly in new retraining opportunities for people who have lost their jobs because of the global recession.

By the way, it's a budget that has been endorsed by poverty groups and food banks in Ontario in addition to business groups. We think it has struck the right balance.

I would argue that it's not our budget that is unbalanced; it's my honourable colleague's perspective. I know that my honourable colleague does, in fact, support our Second Career program, and I wish she would say that. I know that she does support our Ontario child benefit, and I wish she would say that. I know that she does support investing in full-day learning for four- and five-year-olds as the foundation for a highly skilled, educated and competitive workforce, and I wish she would say that. I also know that she does support the fact that the low-income earners in Ontario will be paying the lowest levels of personal income Taxes in all of Canada. She supports that, and I just wish she would stand up and say that.

I think there's a very important question that we need to answer together, and that question is being asked by the people of Ontario. These are people who understand that our world has changed somewhat dramatically, and this was something that had been taking place, had been in motion, before the recession got here. It's affecting our economy. It is changing significantly as a result of globalization and other things. And the question is, simply, what do we need to do to make ourselves stronger?

My friend does not have any answers for that. She believes in the status quo. She is a passionate champion and defender of the status quo.

There are certain things we have to do to make ourselves stronger, and one of those is to join 130 other countries that have already risen to the defence of their manufacturers so they can continue to hire more people in the manufacturing sector; that's to have a harmonized sales tax. We're doing that in a way, by the way, that protects our families by reducing their Taxes, and we have in place other mitigation strategies as well.

It's always interesting to see the leader of the NDP stand up and represent business interests in this House. I take that as progress, as a healthy evolution of the New Democratic Party of Ontario, and I welcome that.

There are great politics to be had in dealing with the debate over the harmonized sales tax. I understand that, accept that, recognize that and embrace that. But I think the question that Ontarians really want us to answer is, "What do we need to do to make ourselves stronger?" They know in their heart of hearts that getting stronger is not an easy thing. They understand that sometimes we've got to do stuff, our generation has to take on certain responsibilities which are not easy, to create a stronger economy for the future. That's what the HST is all about. That's what harmonizing our sales Taxes is all about. That's why finance ministers from previous parties who formed the government here all agree: that the single most important thing for us to do to strengthen-

Let's keep in mind the context and the real successes that we have enjoyed, working hard together with Ontarians. I just don't share my honourable colleague's negative and pessimistic view of where we find ourselves and where we're going.

If you take a look at the budget, for example, we have found a way, working hard, as I say, together with Ontarians, to introduce measures that will both make us a more competitive and a more caring Ontario. While we've reduced business Taxes and reduced Taxes for 93% of Ontarians, we've also effectively doubled the Ontario child benefit.

We're putting new money into social housing. We found more money for health care, more money for education and more money for colleges and universities, notwithstanding that we find ourselves at a time where our economy is contracting. We put forward a good, solid budget that is designed to meet the needs of the day and ensure that we can look forward to the future with a great deal of optimism.

First of all I want to take the opportunity to welcome all of our visitors to Queen's Park, but in particular seniors to whom we owe so much. I want to tell seniors and all Ontarians that the decision we have taken together as a government to move forward with a single sales tax is not one that we have taken lightly. But we feel it's absolutely essential if we're going to build a stronger, more competitive economy that will ensure that our businesses can compete with other businesses around the world and that they will continue to have the capacity to hire our children and our grandchildren. That's very important to all of us.

At the same time, we've put in place a package that cuts Ontarians' Taxes; 93% of Ontarians will have their Taxes cut. That's an important piece of information that doesn't seem to be reaching Ontarians. I know that my honourable colleague is going to want to talk about that a bit more at some point in time, but 93% of Ontarians are going to receive tax cuts.

Well, a few things. My honourable colleague knows that there are a number of initiatives that we have taken in order to improve the business environment so that we can create more jobs. He knows about our proposal to cut business Taxes for our big companies and our small companies; he knows about the special tax initiatives for the entertainment sector.

I'm not sure whether he's telling me that we should not have participated in this venture with Starz Animation here in Toronto or whether he feels that somehow we've cut off others. The fact is we have a great program: It's the Next Generation of Jobs Fund. It's open to applications from companies around the province. This was a successful application. It resulted in some 265 jobs. We think that's worthy of celebration. We think it's a good foundation on which to continue to build, and we want to use that to encourage more businesses to apply to our fund, so we can find more partnerships.

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CORRECTIONAL SERVICES

As my honourable colleague knows, the single sales tax is part of a comprehensive package of tax reforms that includes both cuts to business Taxes and cuts to personal income Taxes. We firmly believe, after listening to so many representations from around the province, business and non-business alike, that the single most important thing that we can do to strengthen our economy and to create more jobs is to move ahead with this package of tax reforms that are part of our budget. My colleague knows, for example, that corporate income Taxes will drop from 14% to 10%. That is a significant advantage for those people doing business, including for those in the condominium business, in the province of Ontario.

I just quoted Roger Martin, an expert who has been cited on several occasions by my honourable colleague, and I quoted from a number of other organizations that have an interest in strengthening the economy.

The fact of the matter is we're bringing a balanced approach to the people's future through our budget. We are reducing corporate income Taxes and, at the same time we're increasing the Ontario child benefit. We're reducing the small business corporate tax rate, and at the same time we're increasing the minimum wage. We're eliminating the small business clawback, and at the same time we're reducing income Taxes on the lowest-income earners to the lowest level in Canada. What's more, we continue to invest in affordable housing, in health care, education, post-secondary education and research and innovation. It is a balanced approach that is designed, in the long term, to improve prosperity, create jobs and make of us a continuing, caring society.

I think my honourable colleague knows-it's something I've said many times before-that Minister Duncan engaged in more extensive pre-budget consultations than any previous Minister of Finance ever has. That was appropriate, in keeping with the nature of the economic challenge that we're all coming to terms with.

I think that Ontarians-in fact, I'm confident that Ontarians want us to take action. They oppose inaction. I believe they understand that there's no easy way out of this, that we're going to be called upon to do something to make sure we can look our kids in the eye and say, "We did what was necessary to protect your schools, your health care and our supports for your vulnerable, to make sure you could have good jobs. We generated the wealth to support a caring society." That's what we try to speak to through this budget. So while we do cut, for example, business Taxes, we're also increasing the Ontario child benefit, increasing the minimum wage and reducing income Taxes on our lowest income earners.

I think one of the things that Ontarians want us to do is to bring what assistance and what solutions forward that we might in response to this economic challenge. That's what our budget represents. It's an effort to build both a more caring and a more competitive Ontario.

The business concerns that my colleague raises are real, and nobody can deny that. That's why we plan to reduce business Taxes in the province of Ontario. That's why we intend to reduce Taxes not only for our corporations, but for our small businesses as well. That's why we want to get on with our budget. That's why we want to move forthwith in an effort to bring that assistance. We want to continue to make massive investments in infrastructure as well, so that we can create those jobs on the ground right now, in keeping with the intent of our budget.

For months, my honourable colleague has accused us of failing to take action in the face of a serious economic crisis. So we tabled a budget in this Legislative Assembly. It takes aggressive action in response to this economic crisis. It invests over $32 billion in infrastructure. It proceeds in a sensible way to reduce business Taxes. It proceeds in a sensible way to provide tax relief to our families, especially our lower-income families. We now decide that we want to get on with this and bring that relief to the people of Ontario, and he says, "Slow down. You're moving too quickly."

I know where Ontarians stand: They want us to get on with this. They're out there on the front lines. They're experiencing the full consequence of this recession. They've charged us with bringing relief to them and bringing forward some kind of a solution. Our budget represents that relief and that solution, so we're looking forward to moving forward with it.

PENSION PLANS

I will, I will; give me a chance. There's no winning here; there's none whatsoever.

I thank the honourable member for her question. I think she recognizes as well, though, that Ontario remains one of only three provinces that are net contributors to the federation. We're proud to be in that position. The fact that we are receiving equalization is undeniable, but what Ontarians need to understand is that we're paying ourselves with our own money; I think it's important to understand that.

Our recent budget speaks to the challenges of the day. It is designed specifically to build both a more caring and a more competitive Ontario. So at the same time that, for example, we're increasing the Ontario child benefit and building affordable housing, we are also reducing business Taxes and personal Taxes, and putting our economy on a stronger footing so that we can regain the strength that we need to support our schools and our health care and supports for our vulnerable.

Again, my honourable colleague is absolutely right: There have been significant job losses. This does cause devastation to Ontario communities, but, more importantly, to individual families.

I know that my colleague will recognize that this is not something that is solely being experienced here in Ontario; it's being experienced right across the country and, indeed, throughout most of the world. But I am proud of the budget that we have put forward and I would ask my honourable colleague for her support in moving ahead with this budget as quickly as we can. We know that the single most important thing we can do to strengthen this economy is to move forward with our package of comprehensive tax reforms that, among other things, moves us towards a single sales tax, lower Taxes for our businesses and lower Taxes for Ontarians themselves.

One of the things that, at its core-and our families have many hopes and many higher aspirations, and they have some fears too. They have some real concerns. But I think the single most important issue they want us to address right now is, "Are there going to be jobs there for me and are there going to be jobs there for my kids?" We are absolutely committed to ensuring that we inspire confidence in the people of Ontario. We are prepared to take whatever actions are necessary to strengthen this economy. That means reducing business Taxes. It means reducing personal Taxes. It means moving ahead with a single sales tax. And by the way, it means moving ahead with a higher Ontario child benefit. It means investing in affordable housing. Those are the kinds of things that we're doing, because they speak to the needs, the hopes, and they address the concerns of Ontario families.

I appreciate the question from my honourable colleague. First of all, I want to assure him and Ontarians that we spent a lot of time thinking about this. We weighed the fact that what is happening out there, globally speaking, is very, very big. It is proving to be powerful and very persistent.

Some, like my honourable colleague, would argue that there's no need for us to do anything, that the world as it existed before this worldwide recession will somehow return to us and everything will be restored to its natural order. We don't believe that. We think we've got to do something; we have to do it together.

I know that what I'm asking of Ontarians is not easy; I understand that. But I think it's absolutely essential that we find a way to move forward together. That's why we're going to move ahead with a single sales tax. That's why we're going to cut personal income Taxes and cut corporate Taxes. We have to do these things to put ourselves on a stronger footing so we can seize new possibilities.

One hundred and thirty other countries have done this, as have four other provinces. I think that even my honourable colleague would admit, in a dispassionate and objective way, that this is the kind of step that has been recommended by thoughtful economists for a long, long time.

The reason that my honourable colleague did not do it when he was in government, and the reason that the NDP did not do it in government, is because it is fraught with political risk, to be honest. It is fraught with political risk. But we've been hired on to do a particular job on this side of the House, and that is to provide leadership. The world as we knew it before the recession has left us. My friends may think it's going to be the same and we need do nothing to make ourselves stronger. I disagree with that. That is why, as we move forward, we're cutting personal income Taxes in the province of Ontario for 93% of Ontarians. We think that's going to be very helpful as they proceed with grappling with the new single sales tax.

The Speaker (Hon. Steve Peters): Final supplementary.

As I think I said a few times in this House, the most recent estimate from the United Nations is that we are going to lose from 40 million to 50 million jobs worldwide. Notwithstanding my honourable colleague's effort to indict the government here at Queen's Park with exclusive responsibility for a worldwide recession, I just don't believe Ontarians are prepared to accept that.

We are going to continue to move forward with our five-point plan. We're going to continue to invest in the things that will make us stronger. We will also move ahead with corporate tax cuts. We're going to move ahead with more supports for people who are losing their jobs, more supports for communities that are caught up in this distress caused by a worldwide recession. As well, we're going to cut Taxes for Ontarians; 93% of Ontarians will experience a tax cut.

Just so we put things in some perspective here, the budget is about building both a more competitive and caring Ontario. While we have cut business Taxes-we will be cutting business Taxes by $4.5 billion over three years-we're cutting them for people by $10.6 billion over three years. At the same time, we are investing in more affordable housing; we're investing in more health care, more education, more post-secondary education. We're putting $32.5 billion into infrastructure to create those hospitals, schools, roads and public transit that benefit our communities and create 300,000 jobs in the short order, exactly when we need them. I would just ask my colleague to bring a more balanced, more measured consideration to the facts that make up our budget.

We took a lot of time to consider the advice that we have received. I'm not sure any Minister of Finance has ever engaged in more consultation than did Minister Duncan in preparation for the budget that we recently introduced in this House. These are very difficult times. It's the greatest economic crisis we've had to grapple with in 80 years. And it's not just affecting us and the rest of Canada or the US; it's affecting the world.

We thought it was important to send a strong signal to the rest of the world that we understand the significance of this crisis before us and that it's important for us to take bold steps, and that's what we are doing. We're moving ahead with a single sales tax, we are cutting Taxes for 92% of Ontarians, we are reducing business Taxes so that our businesses can grow stronger and become more competitive and create more jobs. It's not an easy thing to do, but we believe it is absolutely essential to get Ontario on a firmer footing.

TAXATION

It is true that we have to make some changes with respect to Taxes. Unlike my honourable colleague, who believes that the world has not changed, who believes that we need do nothing differently-notwithstanding the fact that Ontario is being beaten up by this global economic meltdown and we're losing far too many jobs, he would have us do nothing. We believe that we have to do something. We've talked to business in particular; they've told us the single most important thing that we can do to strengthen our business sector so that we can create more jobs and generate more wealth to support good schools and good health care, strong supports for our vulnerable and better protect our environment is to move ahead with a single sales tax. They have done it in 130 other countries; they've done it in four provinces. I'm not saying it is an easy thing to do. My friend would have us hang on to the past; we're not going back there. We're building a better, brighter, more promising future for the people of Ontario. We're asking them to support us as we do this.

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One hundred and thirty other countries have already done this; they've put in place a single sales tax or a value-added tax. Four other provinces have also done this as well.

We are confident that we can do this and do it in a way that protects our families: 93% of Ontarians will get a personal income tax cut under our approach. We're putting in place, as well, a new Ontario sales tax credit. This is permanent as well: $260 each for adults and children. We're also going to reduce the level of taxation at the lowest tax level, the lowest income level, so that Ontario's low-income families will pay the lowest level of income Taxes in the country. We've tried to be thoughtful, balanced and progressive in doing things that both stimulate growth in the economy and protect families at the same time.

ELECTRONIC HEALTH INFORMATION
Mrs. Elizabeth Witmer: My question is for the Premier. Premier, as you know, the Smart Systems for Health Agency spent $647 million of taxpayer money, with very little to show for it, before you quietly disbanded it last September. Unlike Quebec, Alberta and BC, which are going to have their e-health systems operating by 2010, Ontario will not have a system until 2015. Premier, the Deloitte report of 2007 was critical of the agency. In response to that report the CEO, Michael Lauber, explained that there was an unclear road map that had been given to it by your government.

I ask you today, although your own health minister refuses to be accountable to taxpayers, will you call in the Auditor General to conduct a value-for-money audit of the agency?

I appreciate the leader of the official opposition's genuine concern about my caucus and his longing to enhance relations. But one of the things that I would draw to his attention is an article-in fact, an editorial-that appeared in the Vancouver Sun, and I'll quote from that. It says: "The case for BC to harmonize its sales tax with the GST has long been strong. Now it is even more compelling."

Ontario is "an aggressive competitor. We can ill-afford to leave unchallenged this new, major tax advantage" that Ontario is creating for itself.

I would ask my colleague at some point in time to tell us whether or not, as a party, they intend to move ahead with a single sales tax in the province of Ontario, or whether, if given the opportunity, they would undo that and reinstall two separate sales Taxes.

An intervention, an assertion. We can get caught up in these kinds of things, but what we've got to ask ourselves is, what do Ontarians want us to talk about? What do they want us to focus on?

There's a tremendous economic challenge that we're facing. Families have a great deal of anxiety. Communities, in some cases, have been devastated. People are losing jobs. I think they want us to keep our eye on the ball, and the ball is to find a way to move our province forward, not left and not right. I would respectfully submit that we've gone a long way towards doing that with our budget. We're cutting Taxes for businesses. We're cutting Taxes for people. We're trying to build a more caring and competitive Ontario.