Facebook post by John Peate

I have today sent this letter to the Star. There was too much too cram into a letter but I hope it makes sense. I have little confidence that the Star will publish anything I write but...

Mr. Bethlenfalvy’s oped “Ontario budget is math not ideology” is a fine example of Fordian math. Have a conclusion and the facts of the equation don’t fit? Omit the inconvenient facts.

Does Ontario have the largest sub national debt? Yes. Does that mean anything.? No. It has the largest such debt because there is nowhere in the world except Canada where junior jurisdictions have the fiscal and social responsibilities that Ontario has. Health, Education, welfare, are national in others. The only comparisons are with Canadian Provinces and those are all much smaller than Ontario.

The debt to GDP ratio is the proper measure. There, Ontario is higher than some provinces and lower than others. That measure reveals more interesting facts. At present, it is about 37% has been relatively stable and reducing slightly over the last few Liberal years.

Debt to GDP is higher than in the Harris years. It is higher because Harris downloaded many responsibilities onto Municipalities and drastically cut services but still increased debt by almost 50%. That because he also cut revenues through irresponsible tax cuts to corporations and the wealthy. Those cuts are the heart of any problem that Ontario has and they are being exacerbated by Ford who has also reduced revenues. The reality is that total Public debt rose sharply under the Conservatives as it will rise under Ford with his rounds of cuts to everything and offloading to the Municpalities.

Debt under the Liberals was incurred in taking back some of those responsibilities from the Municipalities and easing their burden, and in restoring services. It is not a true increase in Public debt since it reduced that of the Municipalities.

Much has been made, though not mentioned in Mr. Bethlenfalvy’s article, of the fact that the interest on the debt is 8 cents on the dollar. Forgotten is that it was 9 cents when Wynne took office and reached a peak of 15.5 cents under Harris. Under the wise stewardship of the Liberals, the debt has become more manageable as they locked it in to long term, low interest rates.

The fact is that Ontario has the leanest, meanest government in Canada. It has the lowest revenues per capita through all those cuts to taxes and the lowest social spending in many areas. Ford is making it meaner but not leaner as he simply shifts the burden to lower jurisdictions to struggle with as they may.

The rest of Mr. Bethlenfalvy’s article is a litany of errors, and misrepresentations: a shameful self-indictment of the Ford government. It is to be hoped that the Star will publish a full refutation since that is not possible in the space of this letter.