Orders of the Day
Plan to Protect Ontario Act (Budget Measures), 2026 (No. 2) / Loi de 2026 sur le plan pour protéger l’Ontario (mesures budgétaires) (no 2)Bill 143
Mr. Ted Hsu
As I thought about how to talk about the fall economic statement and Bill 143, it was very hard to avoid thinking about the election in the United States today. It is very consequential, and what’s happening in the United States has influenced much of the policy focus that we’ve been talking about in the last while here in Ontario. I just wanted to take a moment to remember that we do have some allies in the United States who share our values, and many are working hard at this very moment on getting out the vote today, and I want to salute them. We are at a critical time, Speaker, because of this global situation, and yet I find that this government doesn’t have a long-term plan or a broad vision for this province. I know that we’re just talking about an update in the fall economic statement, but we are now, since the budget, in a full-blown tariff war with the United States. As a nation, Canada is standing up to Donald Trump and taking the pain instead of going down this slippery slope of doing another deal. The fall economic statement was an opportunity to lay out this longer-term plan and a broader vision. I’m going to point out a bit later some ways in which we missed an opportunity to do that, but first I want to talk about some policy changes in the fall economic statement—some I will call technical corrections. But I want to acknowledge them before I talk about this government’s lack of broader vision, because there are some things that I agree about. There were more details for the reporting of beneficial ownership in the fall economic statement. Historically, that’s been weak in Ontario and in Canada. It’s hard to trace the ultimate owner if you want to root out conflicts of interest or people trying to hide behind this complicated “companies owning companies owning companies.” I know that the government wants to make sure that we have some sort of control over foreign ownership of agricultural land, so these kinds of improved reporting requirements are going to be needed. I think that’s a good idea. The development of a standardized truck driver training curriculum, I think, is important. It’s welcome as a part of reform in the training and regulation of truck drivers. I’ve heard complaints about that as much as I’ve heard complaints about the need to upgrade the Trans-Canada Highway in northern Ontario. More regulation is therefore welcome. I just want to mention that in October 2025, the chairman of the Truck Training Schools Association of Ontario told the House of Commons that certain carriers have bought or influenced schools to fast-track them through bare-bones programs, undermined the provincial licensing standards and shift the training liability away from those carriers. So more training to make our roads safer is always a good thing. I will likely support schedule 2 of the bill. This is an educational property tax exemption for university student housing. I definitely think that’s something we need more help with. Next week, I’m going to attend a session at an open house at Queen’s University to ask—you know, we’re creating some extra STEM seats in universities, but I want to ask where they are going to live, because that’s an ongoing issue in Kingston. Buy Ontario: I think it’s a good thing to think about. That’s going to be extended to municipal procurement, fleet vehicles and how we design infrastructure projects. I will just mention one thing, which is that we are not succeeding in getting companies who use cold-rolled aluminum to use cold-rolled aluminum that’s made in Canada. They buy it from the United States. They buy it from China. Hopefully there will be some measures to encourage—I don’t want to force companies to do something that will increase costs by too much, but I do hope that there will be some measures to incentivize companies to diversify their supply chains in cold-rolled aluminum, because we do make it in Canada, but a lot of consumers do not buy it from a Canadian source. I do agree with the changes in the Ontario Electricity Rebate. Starting in May of next year, the Ontario Electricity Rebate will be limited to the first 1,200 kilowatt hours consumed monthly, and farms and small businesses are going to be excluded. This is what costs $3 billion in subsidies every year. I had an exchange with the Minister of Energy in committee at the estimates, and I think we both agree that it’s not sustainable. I asked in estimates about means testing, like, “Why do wealthy people need this Ontario Electricity Rebate, this subsidy?” I know it’s hard, because introducing figuring out what people’s wealth or income is and then coordinating that with the utility bill can be hard. So I’m glad to see this 1,200 kilowatt-hour cap in the Ontario Electricity Rebate. I think it’s a good proxy because it’s simple for a means-tested rebate. I think it’s good to try it. Now, one thing that is not explained—that I can’t find the explanation for yet—is how multi-unit dwellings without individual metering will be treated. That is still to come. Maybe it’s 1,200 kilowatt hours multiplied by the number of units, but I’d like to see that stated very clearly. Another thing that happened in the fall economic statement is something that seems to happen over and over again with this government. I’ll just give you some numbers, Speaker. In the 2023 Ontario budget, they had a projected year of budget balance of 2024-25. In the budget the next year, the 2024 Ontario budget, this was pushed back to 2026-27. In the 2025 Ontario budget, the projected year of budget balance was pushed back again to 2027-28. And in 2026, the next budget, that projected year of balance was pushed back yet another year to 2028-29. And in the fall economic statement we just got, the year of budget balance was pushed back yet another year to 2029-30. This is a pattern I just want to point out for the people of Ontario: The government seems to have this phantom, ephemeral projection of budget balance, because they never reach it. It keeps going back further—in fact, it goes further into the future faster than we’re going further into the future. We have to watch out for that. The biggest policy change in the budget, I would say, is that the province is following the lead of the federal government in introducing this so-called productivity mega deduction. I think this is a good idea to try out, because Canada, historically, has been a laggard in what’s called business expenditure on research and development. It’s a statistic that’s compiled by StatsCan, and it’s something where Canada is a laggard compared to other countries. It’s a key reason why the productivity of our workers has lagged behind those of other countries, and that’s directly connected to long-term affordability, cost of living and standard of living. It’s a key ingredient of productivity growth and long-term economic and social benefits. One thing that’s missing, I would say, in this government’s way of looking at things is how to have an overall strategy. The funding for graduate programs in STEM is still far below what was recommended by this government’s own blue-ribbon panel. I know that they’ve created some STEM seats, but that actually doesn’t affect the funding for graduate programs. What that means is the key people that you often need to turn business investment in equipment or buildings, to turn that into what we really want, which is innovation, competitiveness, entry into new markets, increased sales, profits and good jobs for Ontarians—often you need those key people to turn money into the final success. You have to have a strategy, and I think the strategy should include making sure that we are producing those key people in Canada to turn business expenditure in research and development into a stronger economy. This is something that is an example of how the province doesn’t have a clear strategy. I want to talk now about what a vision for Ontario could be based on, and I want to look at it from the point of view of young people, which is something I would recommend to this government. I was very fortunate to grow up in the 1960s and 1970s, a time of great prosperity in Canada. I had many opportunities. It’s like saying previous generations, like my generation, we got a ladder. There were ladders all over the place. We had a lot of opportunities. Today, young people don’t seem to have a ladder. What they’re being handed is the bill for everything that we’ve accumulated, a lot of debts that we’ve accumulated—financial, environmental, social. So today there’s a lot of intergenerational unfairness, and it’s very much related to the economic and social challenges we are facing. I believe that the government should be targeting a plan for Ontario, a vision which makes us stronger and addresses the unfairness to younger Ontarians. What sort of things does that entail? Young people’s education was disrupted by the pandemic. We should be making sure that we have a world-class education system, but this doesn’t seem to be a priority of this government. The first rung of the employment ladder, that first job that gets you into the workforce, is getting hard to reach. Youth unemployment still hasn’t recovered to what it was before the pandemic. Housing costs aren’t merely preventing home ownership; they’re delaying independence. So 40% of young adults between the ages of 20 and 34 in Ontario were still living with at least one parent after the pandemic. Today, the economy is facing a big transition with artificial intelligence and automation, and young people are bearing most of the risk of these technological changes. AI and automation may ultimately boost productivity, but right now, if you are an entry-level worker lacking experience, lacking training, you’re not going to benefit from AI and automation; you can’t make use of it. If you’re an experienced worker, an established worker in whatever place you work, you’re in a really good position to make use of AI and automation to increase your own productivity first. So a lot of entry-level jobs are at risk, and that’s what young people are facing. We have record historical levels of debt-to-GDP, so young people will inherit less fiscal flexibility to solve their problems. Young people are inheriting an environment where inflation is back like it was in the 1970s. Young people are also inheriting a big public infrastructure deficit that will require an enormous catch-up investment that they will have to pay for during their working lives: everything from housing infrastructure, roads, bridges, transit, hospitals—which we just talked about in this debate—schools, electricity infrastructure and climate adaptation. All of these things young people have to pay for, but we should be thinking about them in a long-term plan and a broader vision for Ontario. Young people are not only facing climate change, but the world they are inheriting is less safe. They are coming of age in an era when liberal democratic institutions around the world have been damaged. Autocratic governments are rising, and this long period after World War II of relative peace, international co-operation and shared prosperity seems to be coming to an end. I believe that we owe it to young people to make the sacrifices so that they can have opportunities equal to what we, the older generations, were able to have decades ago. I want to turn now to the bill, Bill 143, and I’m just going to talk about some of the schedules. It’s got a lot of schedules, so I can’t talk about all of them, but I’ll talk about a couple that I wanted to draw the attention of this House to. Schedule 23, the Securities Act: I agree with this schedule. Canada has provincial and territorial securities regulators, a whole bunch of them rather than a single national securities regulator.