OFL President Calls on Duncan to Reject Entire Premise of Drummond Commission: Economic Recovery Not Possible Without Corporate Tax Fairness

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2012) - The Ontario Federation of Labour says Ontario's regime of corporate tax cuts has starved the province of billions of dollars and helped create a $16 billion deficit. At a meeting this morning between the heads of the province's largest trade unions and Finance Minister Dwight Duncan, the OFL will call for corporate tax fairness, not cuts to jobs and services.

"The Drummond Commission ignores the very cause of the problem it was tasked to solve. The financial crisis of 2008 was created by a stock market collapse, not health care, education or other services that Ontarians rely on," said OFL President Sid Ryan. "The real cause of the province's $16 billion deficit is the billions of dollars lost through corporate tax cuts that have failed to create new jobs."

"You can't cut your way to economic prosperity. Slashing middle class jobs and the services that provide a social safety net will virtually guarantee that Ontarians can't get back on their feet," warned Ryan. "It is the height of irresponsible governance to allow the public coffers to be bled dry by corporate tax cuts and loopholes that privilege the richest one percent."

"Thankfully, we have a minority government and a principled NDP opposition that is committed to building Ontario's economy, not tearing it apart. During the 2011 election, Ontario NDP Leader Andrea Horwath committed to restoring the corporate tax rate to 14 percent, which could balance the books without job loss or cuts to services," said Ryan. "I look forward to working with the NDP to oppose any Ontario Budget that ignores the need for tax fairness by downloading Drummond's cuts onto the people of Ontario."

Since its creation, critics have objected to the Drummond Commission on the Reform of Ontario's Public Services on the basis that its scope was restricted to looking only at the province's spending, without considering the revenue side of the equation. The Commission will make hundreds of recommendations on cuts to public services but will be silent on job creation or restoring tax fairness.

The Ontario Federation of Labour and the heads of unions will meet with Finance Minister Dwight Duncan in the Frost Building at 10:00 am this morning. The OFL represents 54 unions and one million workers in Ontario.

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