TORONTO - The review of the province's controversial health tax is "redundant'' because the government has no intention of scrapping it or phasing it out, Premier Dalton McGuinty said Wednesday.

The coming review, which is supposed to be conducted by a government-dominated committee in June, is only going ahead because it's required by law, McGuinty said.

Despite calls to scrap the health premium in the wake of projected surpluses and increased spending, McGuinty said the government needs the $2.6 billion generated every year by the hated tax.

"That money is needed for our health care,'' he said following the last cabinet meeting of the year.

"There are growing and pressing demands. Forty per cent of all the money we put into health care goes to the people over the age of 65. That group of Ontarians will double during the course of next 20 years.''

The Liberals made it clear they had no intention of repealing the tax during the recent election campaign, McGuinty said. People had a chance to reject that decision when they went to the ballot box Oct. 10 but they returned the Liberals to government with a majority, he said.

The review is now redundant, McGuinty said.

"I was very clear to Ontarians ... I just can't envision a time at this point in time when we will not need that money for investment in our health-care system,'' McGuinty said. "It begs the need for the review itself. The only need for the review at this point in time is a technical one.''

The Liberals may look at killing the review in the spring budget bill, he added.

Critics are calling on the Liberals to get rid of the health tax, which the party imposed in 2004 after promising not to raise taxes. The Liberals argued the tax was necessary to counter a $5.6-billion deficit they inherited from the Conservatives.

Progressive Conservative Leader John Tory said the Liberals dangled the review like a "painkiller'' before voters, raising their hopes that the tax would be scrapped eventually.

"What else was the review supposed to recommend?'' Tory said. "Income tax was supposed to be temporary too when it was brought in about 75 or 80 years ago.''

The province has hundreds of millions in surplus cash and brings in billions in extra revenue, Tory added. It can afford to get rid of the tax which costs every eligible taxpayer in the province as much as $900 a year, he said.

"(McGuinty) could start tomorrow morning to reduce that tax and ultimately eliminate it without affecting one single health-care patient in Ontario,'' he said.

NDP Leader Howard Hampton said the Liberals should at least review how the tax impacts low-income families. The Liberals could afford to give big companies a tax break in last week's economic statement but they aren't even considering giving the same to low-income earners, he said.

"They're going to ignore this so-called review,'' Hampton said. "You're not going to see any changes to one of the most regressive and unfair taxes for low- and modest-income families that has ever existed in Ontario.''

Kevin Gaudet, Ontario director of the Canadian Taxpayers Federation, said sending the tax to a government-dominated committee for review is a "charade'' when the Liberals have said they can't scrap the tax.

The committee should be reviewing whether the tax is still needed given it was brought in to counter a deficit that is no longer an issue, he added.

"Either have a real review or don't bother,'' Gaudet said. "If you're a family of four struggling to take your kids to hockey or ballet or buy that extra Christmas present under the tree, an extra 900 bucks goes an awfully long way.''

The Liberals quietly filed a motion to task a legislative committee with the review before the legislature rose last week for the winter break.

If the motion is passed when members return in March, the government-dominated committee would start reviewing the health tax next June with an eye to wrapping up by the end of the year.