Saturday, October 18, 2008

Belt-tightening ahead, Ontario finance minister says

Ontario Finance Minister Dwight Duncan tried Thursday to calm fears in advance of his fall economic statement on Oct. 22, vowing the province's Liberals won't abandon the poor.

Speaking to a business audience in Toronto, Duncan said the government is going to have to tighten its belt because of the slowing economy and the financial crisis gripping the world.

"We all have to recognize it's not business as usual," said Duncan.

The financial crisis and slowing economic growth mean Duncan will have lower revenues and a potential deficit in the coming years. Next week's economic statement is expected to bring in spending restraint and a delay in implementing some Liberal election promises.

Many anti-poverty groups are worried the government will abandon its commitment to reduce child poverty.

But Duncan said that won't happen.

"We can no more abandon our efforts to reduce poverty than we should abandon working with our businesses to increase productivity," said the minister.

The federal finance minister will also have an economic statement this fall.

Duncan said Jim Flaherty needs to have a more flexible approach, especially when it comes to the Ontario economy

"This notion that tax cuts and deregulation is the panacea for all that troubles us just hasn't worked," he said.

Duncan said with the state of the world economy changing daily, governments must be pragmatic and ready to respond to challenges as they arise

With files from the Canadian Press

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