Federal government to hike next year’s transfers to Ontario by $1.25B

Ontario Liberals had complained that the federal government shortchanged the province in 2014-15 when it tweaked the transfer calculations


TORONTO — Ontario will receive an additional $1.25 billion from the federal government next year, following a concerted campaign by the premier to get Ottawa to hand over more money in transfers.

Premier Kathleen Wynne and her finance minister had complained that the federal government shortchanged the province in 2014-15 by $640 million when it unilaterally tweaked the transfer calculations.

Wynne said Monday she was “very pleased” that Ottawa listened to Ontario’s concerns.

“Last year we were blindsided by a reduction that we had not expected and this year it seems as though there has been some movement,” she said.

Federal Finance Minister Joe Oliver said the province will receive more than $20.4 billion in transfers in 2015-16 — the most of any province.

Ontario Finance Minister Charles Sousa sent a letter to Oliver last week saying Ottawa’s changes to transfer payments put Ontario’s plan to eliminate its $12.5-billion deficit by 2017-18 at risk.

“Each year since the global recession, you ensured that provinces experiencing year-over-year declines in major transfers were made whole through protection payments,” Sousa wrote.

“This year, as Ontario was the only province to experience a decline in transfers, your government eliminated protection payments altogether, leaving Ontarians at a disadvantage.”

Sousa said Ottawa’s latest transfer figures for next year now put Ontario where it should be.

Wynne made oft-repeated criticisms of the federal government during the spring election campaign that saw her win a Liberal majority, including accusing Ottawa of balancing its books on the backs of the people of Ontario by cutting transfer payments for health and social spending.


Federal government to hike next year’s transfers to Ontario by $1.25B

  1. About time.

    Harp is doing everything he can to irritate Ontario.

    • And Wynne and her Liberals are doing everything they can to make Ontario and economic basket case.

      • Now why would anyone do that? Honestly James, do you ever think?

        • Emily, the answer to your question is obvious.

          The Liberals under McGinty and Wynne simply don’t have a clue about how to run an economy. They are enacting their “ideology” without regard to how their ideology affects people who work or conduct business.

          Further, when they hit the wall and realize that what they have done is damaging the province, they either blame the Feds, try to cover up the damage they have done (Gas plants, ORNG, etc.) or try to defect.

          Remember, there is NO AMOUNT OF YOUR MONEY the Liberal party (either provincial or Federal) won’t spend in order for them to stay in power.

    • Doubtful…..both Trudeau and Mulcair would do the same.

      • You forget, though, just how many people there are out there who don’t pay attention &/or have short memories. Unless there are a lot of people (media; not just opposition parties) constantly countering the inevitable ads about how Harper gave “additional” payments to Ontario, it may very well help him buy votes.

        Harper has gotten very good at bait-and-switch and smoke-and mirrors tactics. Largely because a huge chunk of the electorate is so friggin’ clueless.

        • Well, I’ll agree with that….voters are generally clueless. But at the moment there are 2 kinds….those who worry about debt, and those who worry about jobs.

          Technically no one ever pays off a ‘state’ type debt…..our WWII debts are still in there. Probably so are our confederation ones. We just keep paying on them….and in spite of Wells….we outgrow them. It’s not magic, it’s normal change.

          We were never going to be able to build cars, and pump oil and grow wheat and plan on that economy for a thousand years. We move to the knowledge level and create new products.

          Just because columnists and economists on here can’t think of new products doesn’t mean they don’t exist….it just means others will create them.

          Debt will always be there….at least as long as we use this economic system….what we need is to create jobs.

          • Emily,

            You create jobs, by making it easier for “job creators” to open shop in your province.

            Ontario, has done the opposite. They have made it too expensive for business to operate competitively here. Just look at the number of MAJOR employers who have left Ontario?

            you lower corporate taxes, you lower income taxes, you reduce red-tape, you control spending…etc..etc…

            Wynne and her libs have an economic plan all right……it is just the wrong one.

            Wynne is an activist who is a politician. We need an economist who is a politician.

          • No James….you don’t create jobs by getting others to set up shop here.

            We did that with automotive, remember?

            What YOU need is a brain that works.

          • Emily wrote:
            “No James….you don’t create jobs by getting others to set up shop here.

            We did that with automotive, remember?

            What YOU need is a brain that works.”

            And here folks…..you can read in Emily’s own words why she should continue to be ignored. Her level of ignorance with regards to Finance and economics is summed up in her words above. She doesn’t have a clue.

            As for my brain working, Emily…..it works fine. Your goal now, is to find out how to get one of your own.

        • Keith noted:
          “a huge chunk of the electorate is so friggin’ clueless.”

          The last provincial election in Ontario is all the proof you need.

          • It’s called ‘democracy’

          • It is called Democracy, Emily….well done.

            But in the entire history of Democracy, there has never been a guaranteed outcome with regards to financial viability.

            Capitalism, has been the only guarantee of the best economic performance, and when a Party without ecoonomic knowledge is democraticaly elected, the results are not pretty. Ontario, is a fine example of this.

            And under Wynne’s version of the Liberal party…..it will just get worse.

    • Dianne,

      How much do you think it cost Wynne to buy her term? Hint: Look at the latest auditer general’s report.

      There is no amount of OUR money a Liberal won’t spend to stay in power. Gas plants, ORNG, etc…the list goes on..and on…and on.

      and over the next three years it will get much worse for folks in Ontario.

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