Ontario’s Throne Speech: PC Government Stays the Course

“There are no easy answers,” said Ontario’s Lieutenant Governor Elizabeth Dowdeswell as she read the Speech from the Throne, referring to the many challenges facing health care and inflation. The Lieutenant-Governor repeatedly used the words partnership and collaboration, reinforcing the idea of working cooperatively with all sectors of society, from municipalities to aboriginal leaders to union leaders, as the province faces uncertain times. 

Entitled “Building Ontario Together, let’s get it done,” the Speech from the Throne marks the beginning of the session of the 43rd Ontario Legislature and sets out the government’s broad directions for the next sessions. Not surprisingly, the Speech from the Throne was primarily the reiteration of the Progressive Conservative Party’s platform. Like the Premier’s election night speech on June 2, unity is noted as a key element in addressing social and economic challenges that are not unique to Ontario. 

Throne Speech Highlights: 

• The government forecasts a deficit of $18.8 billion this year, down from the $19.9 billion the Tories expected in the spring due to higher-than-projected taxation revenues. 

• The government emphasized its priority to move past the COVID-19 pandemic by addressing long-term health care needs. The government acknowledged the Canada Health Transfer, but also reiterated its call that the federal government increase its share of provincial health spending to 35%. The government announced its plan to build 30,000 new long-term care beds. 

• Key marquee commitments from the previously announced Budget were maintained, such as the realization of the critical minerals strategy, building the road to the Ring of Fire, solidifying Ontario as a leader in electric vehicle production, and expanding transit and transportation infrastructure by building Highway 413, the Bradford Bypass, and the Ontario Line subway. 

• The government will boost disability support payments by 5% and starting September 2022, will tie future increases to inflation. This measure directly addressed criticisms that the Ontario Disability Support Program (ODSP) supports previously announced were insufficient. 

• The government committed an additional $225 million over two years to provide direct payments to parents, to help fill gaps in students’ learning after two years of pandemic-related disruptions. 

Inflation 

First of all, inflation, which began to creep up around this time last year, has continued to rise and has reached levels not seen in almost 40 years. Added to this is the massive spending in recent years to deal with the pandemic. While the government avoided the use of the word recession, it does point to the possibility of an economic slowdown on the horizon and calls for fiscal prudence. 

Workforce Shortages 

Solstice President Stewart Kiff and Senior Associate Bernard Trottier were at Queen’s Park to attend Tuesday’s Speech from the Throne. 

This summer, approximately 25 hospitals across the province were forced to close their emergency rooms or reduce their services due to a labour shortage. The health care system, already fragile as a result of the pandemic, is not the only one experiencing a shortage of staff, which is affecting just about every sector of activity. In fact, labour shortages are putting a significant damper on the post-pandemic economic recovery touted by Ontario Premier Doug Ford, who states that there are currently 378,000 jobs available in Ontario. In addition to the current shortage, health reforms and the construction or expansion of hospitals will lead to the hiring of 27,000 health care workers. 

One of the ways the government is trying to fill these jobs is through immigration. Doug Ford is calling on the federal government to increase the number of immigrants coming to Ontario. While the Speech from the Throne does not mention specific measures, Premier Ford has said repeatedly in recent months that he would like to see increased powers for immigration, similar to those enjoyed by the Province of Québec. He would like to see a shorter process for entering the country and more immigrants to Ontario. The Speech also mentions the government’s work to ease regulatory hurdles faced by newcomers to enter regulated professions such as medicine. 

With respect to the skilled trades, the Speech from the Throne states that the government will continue to work to remove the stigma from these high demand careers. The availability of trade workers is fundamental to growing the economy, completing construction projects, and address the persistent shortage in the more than 150 skilled trades in Ontario. The government is counting on economic growth and job creation to generate the benefits needed to avoid budget cuts. 

Education 

One of the few new initiatives outlined in the speech was an additional $225 million over two years offered directly to parents to help their children catch up. The government had previously invested $400 per child 18 and under to support those falling behind following pandemic school shutdowns. Ontario students were among the most missed face-to-face school days during the pandemic in North America. The government conveys in the Speech that student catch-up and a focus on career-oriented education remain its priority in this sector. 

This late Summer and early Fall, the government will face negotiations with several education unions as it seeks a smooth and normal start to the school year after two years of the pandemic. 

Economic Recovery and Strong Mayor System 

It is confirmed, the mayors of Toronto and Ottawa will be given more power to increase the construction of housing “People can afford” reduce development deadlines, develop public transit, etc. The Ontario government wants to build 1.5 million housing units over the next ten years – a very ambitious goal. 

Among the key investments to boost the province’s economy, the government will focus on battery and electric vehicle production. It will invest significantly in the development of the Ring of Fire in northern Ontario for the extraction of critical minerals, benefiting both northern and southern Ontario. Construction of roads, highways and public transit are also part of the major stimulus package that was part of the Progressive Conservative Party’s election platform. 

Immediately following the Speech from the Throne, Finance Minister Peter Bethlenfalvy tabled the first bill of the 43rd Parliament, the 2022 Budget, which had been tabled just prior to the election but not passed before the writ period. While technically a new bill has been introduced, it is anticipated to be essentially the same as the April 2022 bill. However, a detailed analysis will need to be conducted over the coming days to confirm this. It will be debated at Queen’s Park in the next few days following the Speech from the Throne debates.