Click here to close now.




















Welcome!

News Feed Item

The Fraser Institute: McGuinty Ranked Eighth Out of 10 Premiers for Managing Provincial Finances; Successor Must Deal With Legacy of Poor Fiscal Management

TORONTO, ONTARIO -- (Marketwire) -- 12/06/12 -- Outgoing Ontario Premier Dalton McGuinty has one of the worst records among Canadian premiers for managing provincial finances, according to a new analysis of the fiscal records of 10 Canadian premiers, released today by the Fraser Institute, Canada's leading public policy think-tank.

But with Premier McGuinty poised to step down, whoever succeeds him has an opportunity to break from past fiscal policies and focus efforts on improving the management of Ontario's finances, says Charles Lammam, Fraser Institute economist and co-author of Measuring the Fiscal Performance of Canada's Premiers 2012.

"Research shows sound fiscal policy is a key determinant of a province's long-term economic success. Unfortunately, when Premier McGuinty leaves office, he will have left a legacy of poor fiscal management in comparison to the records of other Canadian premiers," Lammam said.

Measuring the Fiscal Performance of Canada's Premiers 2012 ranks McGuinty eighth overall with a score of 28.9 out of 100. Only Robert Ghiz of Prince Edward Island (23.5 out of 100) and Greg Selinger of Manitoba (19.2 out of 100) scored worse.

Kathy Dunderdale (Newfoundland and Labrador) ranked first overall with a score of 71.4. David Alward (New Brunswick) placed a close second, scoring 70.4, while Brad Wall of Saskatchewan ranked third (61.6) and British Columbia's Christy Clark was fourth (60.8).

The report measures the fiscal performance of 10 Canadian premiers relative to each other (eight current and two former) during their time in office up to the 2011/12 fiscal year. Each premier received an overall score (out of 100) and rank (out of 10) based on their performance on three components of fiscal policy: government spending, taxes, and debt and deficits.

Government Spending

A large body of academic research shows that excessive increases to government spending can hinder an economy's performance.

McGuinty ranked ninth overall on the government spending component with a score of 12.3 out of 100. New Brunswick's Alward was first on this measure with a score of 88.5.

While in office, McGuinty increased program spending by an average of 6.1 per cent annually-nearly twice the combined rate of inflation and population growth (3.1 per cent) and well over Ontario's annual economic growth rate (3.6 per cent).

"Premier McGuinty resorted to a combination of tax hikes and increased debt to finance large spending increases. This inability to prudently manage government spending was his major failing," Lammam said.

Taxes

Tax rates and the structure of the tax system have a significant impact on incentives that influence whether businesses and individuals engage in productive economic activity.

McGuinty fared better on tax policy, ranking fifth overall with a score of 54.8, one of only five premiers to score above 50.0. Alward again topped the rankings with 87.6 out of 100.

"Premier McGuinty increased several taxes shortly after coming to power in 2003 but reversed course in 2009 when he announced several tax reforms," Lammam said.

"Unfortunately, earlier this year he indicated that Ontario will not follow through on plans to reduce its corporate tax rate to 10 per cent by 2013, a plan that would have improved the provincial investment climate."

Debt and Deficits

Debts and deficits are a critical aspect of fiscal performance because annual deficits increase the overall level of government debt, requiring more tax dollars to be spent on interest costs and less on public services and tax relief.

McGuinty scored 19.7 out of 100 on the debt and deficit measure, ranking him ninth overall. Newfoundland's Dunderdale and Saskatchewan's Wall tied for first, each scoring a perfect 100 for averaging a budget surplus during their tenure and reducing the share of government debt in the provincial economy.

McGuinty, on the other hand, averaged a deficit over his tenure and increased Ontario's debt to 36.0 per cent of the economy in 2011/12 from 28.2 per cent in 2003/04. A $14.4 billion deficit is planned for 2012/13 with deficits expected to continue until 2017/18.

"Ongoing deficits and increased government debt will be a drag on economic growth and add to the burden of repayment for Ontario's next generation," Lammam said.

"Since we began measuring the fiscal performance of Canadian premiers, Premier McGuinty has consistently been ranked among the bottom three. Now with Premier McGuinty stepping down, his successor has an opportunity to better manage provincial finances and set the foundation for a stronger Ontario economy."

Follow the Fraser Institute on Twitter

Become a fan on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ET...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...