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July 10, 2014 - Vol. 3 No. 50

In the Legislature

Throne Speech Outlines Program for Majority Government

Toronto, March 22, 2014. Rally and March at Ontario Liberal Party AGM shortly before the provincial election was called, 
protests Liberal government's brutal austerity agenda.

In the Legislature
Throne Speech Outlines Program for Majority Government
Justifying More Arbitrary Powers for the Executive to "Protect the Public Interest"
Wynne as Challenger to Harper
Push to Get First Nations to Voluntarily Accept Monopolies' Demands
PCs Name Interim Leader 

Note to Readers



In the Legislature

Throne Speech Outlines Program for
Majority Government

The Throne Speech of the Wynne Liberal majority government was delivered on July 3 by outgoing Lieutenant-Governor David Onley. The speech was entitled "Building Ontario Up."

The Liberals asserted that the results of the election show that Ontarians want government to be a "force for good." This is made synonymous with an "activist" government which intervenes to push its agenda forward. This is all to be done from a "centrist" approach which is said to mean being fiscally responsible but socially progressive.

Adrian Morrow, writing in the Globe and Mail described it in the following way:

"It's a term Ms. Wynne has used several times since her majority win and it appears again near the start of the speech. The term is effectively meant to balance Ms. Wynne's central raison d'etre as a politician -- to bring in major new policies, the 'activist' part -- with her acknowledgement of her party's essential centrism. Her election was in large part won by putting together a big tent coalition from leftists in downtown Toronto to moderates in the suburbs, and she is signalling that she will try to appeal to all factions as Premier. Besides her major policy moves, she is trying to position herself as fiscally responsible, prepared to balance the budget in three years."

The Throne Speech described it this way: "[...] by convening people first, instead of directing them. It [government] will not invite your questions only after decisions are taken, but as decisions are made. Your government will put evidence before ideology and choose partnership over partisanship. This is how your government will solve the challenges we face as individuals, as communities, as businesses and as a province."

According to the Throne Speech, because the Liberals ran in the election using their budget as their platform, their election means Ontarians affirmed this "activist" role for the government.

"Since it last addressed this chamber from the throne, your government invited all Ontarians into an open discussion that has shaped a plan for our province's future. It is a way forward that promises more opportunity and builds more security for all Ontarians in this 21st century economy. [...]

"With this plan, your government asked you to affirm the positive role it can play. My fellow Ontarians, by putting in place a stable government with a practical plan to help you succeed, you have given your answer. You have entrusted your government to be a force for good -- a full and active participant in your communities and in your lives."

The fact that 47.9 per cent of the electorate did not vote or only 20 per cent of eligible voters voted for Liberals is not considered cause for concern by the Liberals and their desire to move on their agenda.

Based on this supposed affirmation by the electorate, the government announced that it will now move swiftly to impose its budget and any other measures it claims it promised during the election. "As promised, the legislative assembly was called back just 20 days after the provincial election. And provided that the debate on this speech from the throne is completed, on July 14, your government will reintroduce the budget originally tabled in this chamber on May 1 and ask that the assembly move quickly to pass it."

Measures in the budget include spending $130 billion on new infrastructure projects. This includes up to $15 billion in the Greater Toronto and Hamilton area for transit and transportation and another almost $14 billion in "other parts of the province." It also includes a new "Ontario Pension Plan" which will pool billions of dollars of workers' wages for government use. The budget also includes the declaration that "the deficit" will be paid by 2017-18, that there will be no investments in public programs for compensation increases for the workers who deliver them, and an increase in income tax for those earning more than $150,000 per year.

The presentation of the Throne Speech was preceded by a threat by Moody's Investors Service, the credit rating agency hired by the big international moneylenders to threaten countries and the likes of the province of Ontario if they do not deliver what the moneylenders want. Its threat to the Wynne government was that it would change the province's "debt outlook" from stable to negative, if it did not deliver on budget promises. It nonetheless maintained the province's current credit rating since the moneylenders are in fact raking in a killing off the debt servicing on Ontario's public debt.

"The expected path to balance and stabilization of the debt burden, in our opinion, faces greater challenges than before," Michael Yake, Moody's "lead analyst for Ontario," said in a statement. "The required revenue growth ... and necessary operating expense control to achieve fiscal targets will require a considerable shift from recent trends," the statement added.

Far from protesting the moneylenders' instructions to commit to an austerity budget, Finance Minister and former RBC banker Charles Sousa responded stating only that: "The bankers aren't freaking [out] here, what has happened is the degree of revenue has not met expectations, that's really the issue."

This demand to "increase revenue" reveals the problems the government is facing to raise investment capital and its desperation to get this fraudulent pension plan going so as to defraud the workers into providing a pool of capital it can use to pay for its infrastructure and other projects. Stephen Harper in committing to build the Detroit Bridge in June 2012 went so far as to finance the private part of the partnership with $2.5 billion in public funds. Is this what the Liberal government also intends to do while it imposes austerity on the working people and freezes social programs? 

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Justifying More Arbitrary Powers for the Executive to "Protect the Public Interest"

The Throne Speech, as well as recent remarks by Premier Wynne, indicate that one part of the government's program will be to use its majority to usurp more executive powers. These powers are used to make sure no public authority remains which can interfere with the demands of the monopolies for all the assets of society to be put at their disposal. The current use of these powers is to deprive locally elected bodies of their authority, especially when they do not fall in line with government dictate. This is consistent with the Premier's post-election remarks on the public transit projects her government favours in Toronto.

Speaking about the municipal election in Toronto, Wynne stated: "I assume that all of the candidates that are running understand that building transit in Toronto and beyond is an important part of our economic growth and our community's well-being."

"We will work with municipalities, but I sincerely hope that whoever is the Mayor of Toronto ... will work with us in a collaborative way to make the best decisions for their residents."

In other words, those who oppose the Liberals' program for public transit are being set up as not working collaboratively and "in the best interest of residents."

The flip side of this push for such projects will no doubt be the call to give the Premier the power to impose austerity in the public sector if workers refuse to accept it so that Ontario's "future prosperity," said to be linked to the infrastructure projects, is not threatened.

This is similar to the way the Harper government threatens all those who stand in its way claiming that the opposition of First Nations and workers to government dictate "threatens Canada's recovery" and that government requires more arbitrary powers to ensure this doesn't happen. Smashing the public authority is all done in the name of serving the public interest!

The Wynne government is re-introducing legislation from the session before the election that will give the Accountability Officer many more powers over locally-elected boards and councils. The speech also indicates that the newly-created President of the Treasury Board position will oversee all labour relations between the government and the Ontario public service and broader public service. The Throne Speech says:

"To ensure that the government stays on track to reach its fiscal targets, your government has created the new position of President of the Treasury Board. The President of the Treasury Board will work closely with the Minister of Finance, the Premier, Treasury Board members, and cabinet, and be responsible for overseeing labour relations between the government and the Ontario Public Service and broader public sector. In this capacity, the president will lead your government's oversight of Crown agencies, boards and commissions, and through action and deed, lead the government towards more accountability, openness and modernization. With the new President of the Treasury Board, your government will stay on a path to balance that protects vital public services."

Under McGuinty the position of Minister of Finance and Chair of Management Board/Treasury Board were merged. Most of the previous day-to-day responsibilities of the Chair of Management Board were transferred to the new Ministry of Government Services along with those for Human Resources formerly under the Premier and Consumer and Business Services, formerly a stand-alone ministry. Under McGuinty, the Chair of the Board was Greg Sorbara. Under Wynne, former Minister of Health and London North Centre MPP Deb Matthews was Chair of the Treasury Board and has now become its President.

The Treasury Board not only oversees the public service but is also the chief regulatory agency of government. Within the Harper government the President of the Treasury Board is Tony Clement. He has used his powers to write regulations and issue orders to criminalize workers, and has recently been given much broader arbitrary powers to deny workers' ability to refuse unsafe working conditions. This position has also been at the centre of bringing in new arrangements to streamline Canadian regulations with those of the United States as part of the annexationist arrangement known as the Canada-U.S. Security Perimeter.

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Wynne as Challenger to Harper

Another theme in the Throne Speech is the notion that Wynne and the Liberal majority will defend Ontarians from the Harper government. This is in fact a kind of turf warfare -- an inter-monopoly tussle for control of resources to sell on the global market.

"On all matters of both national and provincial significance, your government will stand up for the people of Ontario in calling for leadership and partnership from the federal government. But understand: in the absence of a willing federal partner, Ontario will do what is right and necessary. Ontario will lead."

It appears to be an extension of the Liberals' strategy in the Ontario election to divert public attention and opposition to their attacks on rights by using the "extremism" of Hudak, and now Harper to hide the Liberals' fervent defence of monopoly right and push for more arbitrary powers to do so. Most notably, this was pushed on the issues of pensions, transfer payments and development of the Ring of Fire. In this way Ontarians are supposed to get behind the Liberals' program to enrich the monopolies in contention with that of the Harper government, rather than establish their own independent framework for affirming their rights as they have been able to do in by-elections and to an extent in the general election, in preparation for a coming federal election.

The government indicates that despite the budget not even being passed, it is already moving to implement its Ontario Pension Plan. In this way the Liberals are showing that they are keen to sideline the Legislature, just as Harper has done in the House of Commons and Senate, claiming a mandate to defend the "public interest" and that any debate or discussion will get in the way.

"Your government has already begun work to create an independently managed Ontario Retirement Pension Plan," the Throne Speech says. "With the co-operation of this House, it will provide Ontarians an additional annual pension payout similar to that of the Canada Pension Plan. Michael Nobrega, former CEO of the Ontario Municipal Employees Retirement System will lead implementation of the plan. Because this is a national issue, as Ontario moves forward to secure a better pension for your retirement, your government will continue to work with the other provinces," the Throne Speech adds.

Concerning development of the Ring of Fire the government states: "Your government will continue its efforts to bring the federal government to the table as a willing and active partner, and will seek a matching federal commitment to seize the opportunity for Ontario and Canada that lies in the Ring of Fire."

Another indication of the turf warfare with the federal power is that the Ontario Liberals say they will embark on their own trade missions, in particular to Asia. "Ontarians know that in the global competition for investment, government needs to be a partner with business. Your government will partner by pursuing more trade missions, because increased exports are the clearest path to sustainable, continuous economic growth. This will include trade missions led by the Premier to other countries, including China, this fall."

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Push to Get First Nations to Voluntarily Accept Monopolies' Demands

In the Throne Speech the government made a big fuss about being a willing partner with First Nations. The main focus of this was not to right past wrongs and modernize the relations between the government and First Nations on the basis of a recognition of the hereditary rights of First Nations and their status as sovereign nations, but on the basis of getting their buy-in for development of their lands and resources, in particular in the Ring of Fire. The Throne Speech, read by Lieutenant Governor David Onley, says:

"In my introductory remarks, I acknowledged, as your government often does, that we are gathered on the traditional territory of the Mississaugas of the New Credit. To give full meaning to these words, they must see expression in the practice, policies and actions of your government. That is why your government will build on the success of the historic Matawa Regional Framework Agreement. Your government will continue increasing opportunities for Aboriginal Peoples through relationships that are built on respect and partnership."

The Framework Agreement specifically relates to the development of the Ring of Fire. On March 26, there was a framework agreement signed between Ontario and the nine First Nations in the Matawa Tribal Council on whose lands the Ring of Fire sits. This was a requirement set by the First Nations concerned as a first step in a community-based negotiation process which began in July 2013.

This framework agreement set "ground rules" for further negotiations, including on matters of environmental assessment, revenue sharing and other issues. It was negotiated by Bob Rae for the Tribal Council and former Justice of the Supreme Court of Canada Frank Iacobucci on behalf of Ontario.

With "ground rules" now in place the issue becomes whether the government will "permit" First Nations to say No! to development which would not be in their interest and that of all Canadians. Based on the experience of First Nations with the Liberal government, for example in Grassy Narrows, clearly affirming their hereditary or any other rights is not a principle.

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PCs Name Interim Leader

On July 2 when the Legislature opened, Tim Hudak's resignation as PC Leader came into effect. PC MPPs have elected Simcoe-Grey MPP Jim Wilson as interim leader to replace Hudak. Wilson was the mover of some of the anti-worker legislation introduced in the Legislature by the PCs the last several years, including the Public Sector Capacity to Pay Act, 2013.

Wilson said the party has to rebuild. He characterized the rebuilding as going from a party that attacks people to one that is "progressive." Wilson said the party has been "attacking people for a decade and in my heart and my caucus colleagues' hearts we are not that kind of people . . . we are going to be Progressive Conservatives. We like everybody."

Reflecting the state of the PC Party and the party system generally and the negation of the role of elected MPPs in decision making, Wilson said that many of the decisions made by Hudak, including his proposal to eliminate 100,000 public sector jobs, did not involve the party caucus. "We have had a period, about a decade, where caucus has felt badly disenfranchised, that they really haven't had a say in the major decisions ... given policies that they were asked to sell that probably weren't even popular in their own ridings," he said.

Despite this sentiment, right away the issue for the party is being made choosing a new leader. A related issue that has broken out is how quickly a new leader will be selected, with reports that some want a quick process in order to start "renewal now" while others favour a longer process of "renewal." Wilson is said to favour an earlier transition to a new leader. Whitby-Osahwa MPP Christine Elliott announced that she will run for the leadership of the party. She is the widow of former federal Finance Minister Jim Flaherty who was also Finance Minister in the Harris provincial government. She finished third in the 2009 PC leadership race won by Hudak. Her early announcement, before the dust from the election has even settled, is being reported as giving her the early advantage over rivals.

Others who have indicated an interest are MPPs Lisa MacLeod (Nepean-Carleton), Monte McNaughton (Lambton-Kent-Middlesex) and Vic Fedeli (Nipissing), while other Harper government cabinet Ministers have also not ruled out running, including head of the Treasury Board Tony Clement (Parry Sound-Muskoka), Minister of Labour Lisa Raitt (Halton) and MP Patrick Brown (Barrie).

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Note to Readers

Ontario Political Forum will publish irregularly during the summer and re-start regular publication Thursday, September 4. Please continue to send in your reports and views so that together we can ensure that the independent voice of the working class takes its place in the politics of Ontario.

The editorial and technical team of OPF wishes all its readers a safe summer.

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