Cambridge Chamber Why Was Drummond Commissioned?

MEDIA RELEASE

FOR IMMEDIATE RELEASE
March 28, 2012

Cambridge Chamber – “Why Was Drummond Commissioned?”

CAMBRIDGE –With the release of the Ontario Government’s Budget of 2012, promising sweeping changes, across the board cuts in spending, measures to ensure the Provinces future sustainability and avoidance of a steady economic decline. The Cambridge Chamber of Commerce sees little that will prove to resurrect the powerful economic engine of Canada. Greg Durocher President/CEO of the Chamber said “It seems hypothetical at best to suggest this budget is going to eliminate the deficit at any date, let along 2017/2018. If everyone is to feel the pain, including business with the freeze of the corporate tax reduction, then the government itself needs to have skin in the game too, this budget shows no cuts to the real problem that the government spends too much money”.

The Cambridge Chamber would support a temporary freeze on corporate tax reductions, if the government had adopted the recommendations of the Drummond Commission Report. Durocher says “It appears that the government has opted for increased user fees and continuing the current level of taxation, so in reality, adding revenue as opposed to reducing spending, we believe this fixes nothing.”

The Chamber’s impression was that the Drummond Commission was established to give the best advice from a cost benefit analysis method. The Chamber has concluded that the majority of significant reductions from Don Drummond’s report, were passed on, “this leaves us to seriously question the prospects of Ontario meeting its objective of a balanced budget by 2017/2018, it seems highly unlikely with this budget, given that the public sector wage freeze is a proposal yet to be negotiated” said Durocher.

One of the key recommendations the Chamber identified from Mr. Drummond was the recommendation for the government to shed some of its program service delivery to non-profits and charities who could do and manage the services more effectively and efficiently. Nothing in this budget mentions this initiative other than studying the concept, Greg Durocher said “It’s hard for us to believe this will lead to any tangible results, as the comment showed no commitment to change.”

The Chamber looks at Mr. Drummond’s comments in his introduction to the report and believes it is the foundation of the required change necessary, when he said “we expect that many of our recommendations will be rejected. We accept that, but each rejected recommendation must be replaced not by a vacuum, but by a better idea –– one that delivers a similar fiscal benefit”. We do not see that happening in this budget, and as Mr. Drummond also stated, “Spending simply cannot return to recent trends”. In our opinion, said Durocher “this budget simply holds the current pattern for a few years, then the spending will resume, and this is not sustainable or palatable for a society determined to inspire economic growth, prosperity and a renewed confidence in government.”

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For more information contact

Greg Durocher, President/CEO

Cambridge Chamber of Commerce

519-622-2221 ext 2223 /