The Ontario government kicked off the fall session at Queen's Park on Monday by sending out a letter to government employees outlining a set of stringent new rules regarding expenses.

But Opposition MPPs, on the first day back to work after the summer break, were quick to question the Liberals on what they dubbed "the summer of scandal."

The letter to staff comes just two weeks after the government announced it had uncovered questionable spending practices at the Ontario Lottery and Gaming Corporation and months after executives at eHealth Ontario were lambasted for misspending.

In the letter sent Monday, Premier Dalton McGuinty said the Liberal government is taking four additional steps to help protect taxpayer money.

He said the rules around filing expenses have been simplified and have been posted online.

He also said that all people working for Ontario Public Service will have to receive mandatory training on expense claiming.

"This will ensure that every person working in the OPS and at our largest agencies knows what is appropriate and what is inappropriate use of taxpayers' money," he said.

Next, cabinet ministers, senior management, political staff and senior executives who work at the province's 22 largest agencies must now post their expenses online. The practice is expected to begin no later than April 1, 2010.

There will also be more random audits on expenses, McGuinty said. And auditors will take a close look at expense practices during annual audits.

"Every tax dollar counts -- particularly at a time when some have lost their jobs, and government is hard at work helping to put people to work," McGuinty said in the letter.

"Recently, inappropriate spending practices were uncovered at two of Ontario's agencies," he said. "And while the vast majority of public servants follow the rules scrupulously, and work hard to protect tax dollars, some do not. For the sake of Ontario families, this must change."

Critics to pursue scandal

The government first came under fire in June, just before legislature adjourned for the summer, for a spending scandal at eHealth, an agency tasked with creating an online database of health records.

About $16 million in untendered contracts were awarded to friends and Liberal supporters. Some consultants were paid about $2,700 a day but still billed taxpayers for small snacks.

Then, in August, the government announced similar problems at the OLG, prompting the entire board of directors to resign. OLG CEO Kelly McDougald was fired from her post. On Friday she announced that she would be suing the province. A source told CTV Toronto she is seeking $8 million.

Progressive Conservative Leader Tim Hudak was quick to confront McGuinty in legislature Monday, about the way he handled the eHealth fiasco.

"You yourself said that you retained Price Waterhouse Coopers to investigate (eHealth)," he said. "The facts we found out this summer is that Price Waterhouse Coopers was never retained, despite the fact that the Premier told this very House that they were."

McGuinty assured the House there isn't a "nefarious plot" in place and that it was "certainly his understanding" that PWC had been retained.

Opposition parties vowed they would continue to question the government on expense practices once legislature resumed and have said that they have filed a number of Freedom of Information requests to see if similar problems occur in other agencies.

Battle over HST

NDP Leader Andrea Horwath also took a swat at the Liberals on Monday, accused them of pushing forward a tax reform plan that would make life more expensive for struggling Ontarians.

McGuinty plans to pass the Harmonized Sales Tax -- a plan to merge the eight per cent provincial sales tax with the 5 per cent goods and services tax.

Critics have argued against the plan, saying it will increase prices of several everyday items that are currently exempt from the PST.

"In this recession, people want a government that makes life more affordable," said Horwath. "Instead the premier is raising the cost of gasoline, hydro and so much more."

While the federal Conservatives support the harmonization and have agreed to back the merger financially, Hudak has said he does not agree with the plan.

But McGuinty defended the plan inside Queen's Park, telling the House that the reforms were supported by Ontario's food banks and the Chamber of Commerce.

The premier also announced Monday that starting November, Ontario will impose new restrictions on retailers who sell lottery tickets. Retailers will be prohibited from playing lottery tickets that were bought inside their own shops. The move comes after the OLG discovered questionable insider wins.

McGuinty said Friday the government's focus this fall will be on resuscitating the economy and going ahead with tax reforms.

He said the Liberals will also pursue their Green Energy Act and full-day learning for four and five-year-old children.

The Liberals will face their first real test on Thursday when taxpayers head to the polls in a byelection in the central Toronto riding of St. Paul's.

The riding has long been a Liberal stronghold and was vacated when former attorney general Michael Bryant stepped down from politics.

With files from The Canadian Press and a report from CTV Toronto's Paul Bliss