TORONTO — Ontario Finance Minister Dwight Duncan tried to put the best face on the province’s current economic challenges calling for continued but modest growth – and no new tax increases.

The budget focused on tax measures to assist the beleaguered manufacturing sector, re-training for displaced manufacturing workers and infrastructure investment for short-term job creation and long-term competitiveness.

Of the infrastructure investments, the Windsor border has taken top priority for the finance minister.

“Perhaps our most important infrastructure undertaking is a new border crossing at Windsor,” stated Duncan.

The budget reiterated that Ontario would fully fund its share of the costs of the final proposed road link between Highway 401 and the new border crossing. Sufficient funds to cover the costs of the project are built into the government’s 10-year infrastructure plan.

The Detroit River International Crossing Study is expected to provide recommendations soon on a new crossing and access road.

“Business and union leaders and others from right across the province want to get on with this project,” added Duncan “…so do we. Construction is scheduled to begin in 2009 and is anticipated to be concluded in 2013.”

Other infrastructure funding includes a $1 billion investment in municipal roads and bridges; and $448 million in new funding for highways and bridges during the next five years to accelerate projects to rehabilitate bridges that are part of the provincial highway network. The budget also makes progress on commitments included in the ReNew Ontario plan, with overall investments of $927 million in 2008-09 in the Southern Ontario Highways Program and $557 million in the Northern Ontario Highways Program.

“The investment in roads and highways is always welcome as is the commitment to moving forward with a second crossing at Windsor,” comments David Bradley, OTA president. “We have heard the commitments to Windsor in the past, but this time I am more hopeful that the two senior levels of government will proceed with whatever plan comes out of the bilateral process.”

Prior to the budget the OTA was lobbying to revise the interpretation for fuel tax
used to power idling reduction devices on commercial vehicles under the
Fuel Tax Act. Currently, the Ministry of Finance deems fuel used for such equipment to be for personal use, so tax paid on that fuel is not refundable.

The budget was silent on this matter but deep in the technical amendments it was stated that, “to maintain the integrity and equity of Ontario’s tax and revenue collection system, as well as enhance legislative clarity and regulatory flexibility to preserve policy intent, legislation will be proposed, including amendments to (a number of acts including the) Fuel Tax Act.”

“We did not have unrealistic expectations for this budget,” says Bradley. “It was clear very early on in the process that the provincial government seemed to have lost its appetite for discussing things like PST-MJVT-GST harmonization. There is still a lot of work to do and OTA will continue to press its case with innovative solutions.”