Monday Nov. 9, 2009  BACK   NEXT

Dalton and the "new world"

An interview with the premier of Ontario

by
Angelo Persichilli
THE HILL TIMES

There's no doubt Ontario Premier Dalton McGuinty is concerned about the economic situation in Ontario and in the rest of Canada, but he says he's confident about the ability of his government and the resilience of the people of Ontario to come together to "overcome the difficulties." In an interview with The Hill Times, he also talks about the exodus of his ministers.

There are many stories about our economy and often conflicting accounts. Where are we in in Ontario?

"Well, we're in, what I believe is, a beginning of a turn-around period. The best—you know, we're running a significant deficit as are so many other jurisdictions around the world, including across the country. And we're in a period of significant change. That's how I've been putting it. And Ontarians sense this intuitively but this is our reality. We're leaving the old world behind and we're beginning life in the new world. In the old world, we had a low dollar. In the new world, we have a high dollar. Old world, low energy costs."

Do you believe the dollar will remain up there for a long time?

"I think, by and large, it'll stabilize at a higher value. In the old world, we had low energy costs. In the new world, we'll have high energy costs because carbon pricing will become a reality. It has been that way in Europe for a long time now. It's coming to North America, if not driven by Prime Minister Harper, then driven by President Obama. Thirdly, the old world, it didn't have that many seniors. In the new world, we're going to have an explosion in our senior population. Baby boomers begin to retire in 2011."

And what will that mean for all of us?

"Two things in particular. No. 1, it's going to drive up a lot of our social costs, especially health care. And it's going to mean a tremendous weight on the shoulders of far fewer young people to support far many older people. The next thing that I can say is that in the old world, manufacturing was on easy street. In the new world, they're being visited by the full consequences of globalization. And maybe—this one's different. In the old world, the U.S. was an economic powerhouse. In the new world, the U.S. will be an economic powerhouse. It might take them a little bit of time to get there, but they will do whatever is necessary to turn themselves around and grow strong again. They will continue to be our single most ferocious competitor for foreign direct investment in North America."

How are you going to face this new reality?

"I think one of the responsibilities of leadership is to understand change. And the second responsibility of leadership is to make plans in the face of that change to find success. So, I will allow the opposition to say, 'We don't need to do the harmonized sales tax,' 'We don't need to make the difficult decisions we are going to make when it comes to putting ourselves on a path towards a balanced budget,' 'We don't need to do full-day learning for four and five-year-olds,' and 'We don't need to invest in advanced manufacturing.' I'll let them say that. The fact is we understand there's an old world. They can dwell in that if they so choose. But there's a new world. That's our reality. Our job: understand it, plan for success in the new world, and not the old one."

In order to do that, you need a strong team and the strength of a leader is defined by the strength of the team that he puts together. You definitely had a good team a few years ago but now you have lost some of the major players. Are you concerned about the strength of your team? Are you going to have other people to replace those leaving?

"You know what, it's only in the natural order of things that people come and people go. But the cause is the same. Our commitment to that cause is as strong as ever. And I've been blessed with a very strong, large group of people, all of whom bring some tremendous strengths to our responsibilities. So, I have lots of people from whom to choose to give greater responsibilities should that be required."

So, you feel comfortable with the team you have?

"Absolutely. In fairness to my backbench, for example, Ontarians don't know much about them because they haven't been given an opportunity to shine, to take on additional responsibilities, but I've got some very strong people there."

In less than two years you are going to face the electorate again. What do you believe is the main obstacle that you have to overcome to win again?

"Well, the challenge before all of us is the economy and to put in place a plan that will assure us of success: good standards of living, high quality of life, sufficient revenues to support public service, and an economy that's creating good jobs for our kids. It's about the economy."

You also have to face now a more stabilized opposition. Is it a concern for you?

"Well, the opposition went through a difficult period when they were without, you know, leadership. They have that leadership now. I expect them to be more effective and it's in the public interest that they are more effective.

"We need to, day in and day out, participate in a collision of ideas. That just makes for a healthier democracy. It makes for a stronger province."

So you think that the opposition, whether it's stronger or not, it's not going to be an obstacle for you?

"Well, you know, in some ways, today, end of the first decade of the 21st century North America, politics is more complex than it has ever been. We have to grapple with globalization. We've got to grapple with a pandemic.

"We've got to grapple with an aging population. But on the other hand, politics remains a simple undertaking for me. I just do the best that I can. I work as hard as I can. I try to make the right decision all the time and at the end of the day, people get to make the call. So, I'll just keep doing that regardless of the opposition and whatever strategies they might peruse or positions that they might adopt. I'll just—this is who I am. This is what government is all about. I will make mistakes from time to time. I have a government that is made up entirely of people and people, from time to time, make mistakes. I think my responsibility is to own up to those, to take steps to ensure they're not repeated."

(The interview was taped before george Smitherman's resignation)

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