OTTAWA - It's time for Prime Minister Stephen Harper to put an end to his finance minister's attacks on Ontario for its refusal to slash corporate tax rates, Premier Dalton McGuinty suggested Wednesday -- one day after introducing a budget with only modest tax relief for businesses.
Federal Finance Minister Jim Flaherty had been lecturing the province for weeks -- right up until the day before the provincial budget -- about its policies, saying Ontario is the "last place'' anyone would want to invest in because of high taxes.
As a result, the province risks becoming a have-not province within two to three years, Flaherty has said.
"I'm going to reach out to my federal counterparts. They have a different approach when it comes to the economy. I accept that,'' McGuinty said while visiting an Ottawa union hall.
"I'm asking them to accept the approach that we're bringing to our economy here in Ontario.''
Tuesday's Ontario budget did not include the across the board cuts to corporate taxes loudly demanded by Flaherty -- who has been silent on the issue since the budget was tabled.
On Wednesday, his spokesman said Flaherty was not available for comment but added the minister had made his point and continues to feel Ontario's taxes are too high.
While defying Flaherty's unsolicited advice, the budget did offer some modest tax relief.
Finance Minister Dwight Duncan eliminated the capital tax on manufacturers retroactive to January 2007, which he said amounted to a rebate that would help even non-profitable companies -- businesses that wouldn't benefit from a tax cut.
The "centrepiece'' of the budget was a $1.5-billion, three-year program to retrain laid off workers -- touted by McGuinty during his visit to a training facility at the Carpenters' Union hall.
"I think that at the beginning of the 21st century, in a knowledge-based global economy, the world is a bit more complex than just a matter of cutting taxes,'' said McGuinty.
"What we're trying to do is strike that balance so that we can reduce taxes in an affordable way, and help those businesses that actually need the help, and at the same time invest in Ontarians so they can help us grow our economy.''
Duncan was also out selling the budget Wednesday and couldn't resist taking another shot at his federal counterpart, suggesting Flaherty's constant attacks have made him the unofficial leader of the Ontario Opposition.
"It's a unique circumstance where the person who has been criticizing the government of Ontario doesn't sit in the legislature, (but) sits in the federal House of Commons,'' Duncan told a Toronto business audience.
"I think it's time to step away from the partisan rhetoric, to step away from the cameras and sit down and actually work out what ideas work best for Ontarians.
"Mr. Flaherty, let us move past our differences and talk directly about what matters to Ontario, and how best we can all support it.''
Duncan also dismissed Flaherty's claims that foreign companies don't want to invest in Ontario because of the Liberal government's policies, pointing out that two international investment banks -- Merrill Lynch of New York and Swiss-based UBS -- have made "major investments'' in Toronto.
"Financial services underline the point that this province is a great place to invest.''
