This presentation discusses what needs to be done to fix Ontario

1. HOW DO WE MAKE ONTARIO GREAT?
Paul Young, CPA, CGA
September 23, 2018

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
 GDP Forecast
 Manufacturing Sector
 Housing Market
 Mining Sector
 Government Finances

4. ONTARIO FINANCES
Source – The government of
Ontariohttps://economics.bmocapitalmarkets.com/economics/provupdates/20180921/onFY1718-1809.pdf

5. SUMMARY / ONTARIO
 Ontario GDP will grow at pace of 1.8 to 2.3% for the next decade
or so.
 Ontario has spending a problem -
https://www.fraserinstitute.org/studies/spending-is-the-source-of-
ontarios-deficit-and-debt-problem
 Moodys has downgraded bonds and put Ontario on watch
(http://www.metronews.ca/news/canada/2015/02/23/ontario-has-
a-serious-spending-problem-finds-credit-report.html)
 Budget watchdog also doubts Ontario will balance the budget -
http://business.financialpost.com/news/economy/ontario-
watchdog-says-balanced-budget-unlikely-for-several-years-
despite-liberals-pledge
 Healthcare professionals are saying the system is max
(https://cupe.ca/1000-hospital-staff-travel-great-distances-
kingston-rally-end-funding-freeze-choking-ontario

6. ONTARIO FORECAST

7. ONTARIO MANUFACTURING SECTOR
Source - Stats Canada
Issue Solution
• Hydro Rates • Phasing out tax credits
• Capping rate increases
• Cap and trade • Repealing cap and trade
• Reducing Red Tape • Streamlining the process to get
projects off the ground
• Trade Barriers • Elimination of all interprovincial trade
barriers
• Innovation • Focusing on innovation Centers

8. HOUSING MARKET / ONTARIO
Issue Solution
• Bids and Asks • More oversight into mark valuation based on
factors like wage growth, GDP growth, inflation,
etc.
• Ownership Rules • Restriction on foreign owners including new land
transfer taxation to non-residence
• Construction process • Cost of Land
• Cost of Permits
• Access to land
• Infrastructure • More emphasis on key areas like
transit hubs and roads/bridges
• Skills Training • Programs design to encourage people
to enter the trades
Source - http://www.cbc.ca/news/business/crea-january-
statistics-1.3983593
Source – CBC News

9. NATURAL RESOURCE SECTOR
Source - https://www.northernontariobusiness.com/industry-
news/mining/bogged-down-in-the-ring-of-fire-521605
Source – Northern
Ontario Business
Issue Solution
• Mining Projects slow to
get off the ground
• Reduced red tape
• Solicit private
investment, i.e. rail and
roads
• More focus on growth
areas like lithium,
forestry, chromite, iron-
ore
• Pipeline and Port
expansion
• More emphasis on
pipelines (oil movement),
refining and smelting

10. GOVERNMENT REVENUE/ONTARIO
Source – Government of Ontario, Stats Canada and Federal Government of Canada
Commentary and Analysis
• McGuinty introduced harmonized sales tax
• McGuinty introduced Ontario Health Premium tax
• Ontario is recipient of equalization payments
• Wynne is selling of assets, i.e. Ontario Power Generation
• Wynne is introducing carbon taxes / 2017
• McGuinty cut corporate tax rates
• Ontario loss over 300,000 manufacturing jobs
• Ontario growing public sector jobs greater than private
sector

11. GOVERNMENT SPENDING/ONTARIO
Source – Government of Ontario, Stats Canada and Federal Government of Canada
% of Expenses /Spending
Analysis Commentary
• Harris spent close to 40% on healthcare as
compare to McGuinty and Wynne that spend
approximately 38% on healthcare
• LHINs and CCAC were created but have done little
in terms of improving wait times and/or
controlling of costs
• Education received more money, but we have
more grads having hard time finding jobs.
Meanwhile. Ontario has significant skills gas that
could influence FDI
• Wynne pledge to bring the debt down to 26% of
GDP. If Wynne were to bring the debt down then
should need to reduced the debt by $10B per year.
• Drummond report was virtually ignored and it was
succinct in terms of Ontario has spending
problem. Ontario is spending from 18.5 to 17.5%
of GDP of government and only taking in 16.8% in

12. CHOICES / NEXT GOVERNMENT
 Ontario debt will need to reduced
 Ontario will need to bring in policy to support
business investment
 Ontario education system needs to focus on jobs
today and tomorrow
 Ontario needs to focus on innovation through
innovation centers
 Government needs to focus on cost cutting measures
 Downsizing the size of government (Attrition)
 Collapsing departments
 Selling of assets (i.e. buildings, government entities, etc)
 Focus more on value for money approach to spending