Taxation

Mr. Robert Bailey: My question is for the Minister of Finance. Minister, last week, St. Clair township, a municipality in my riding, was shocked to learn that MPAC has arbitrarily reduced the assessment of the Lambton generating station by 47% for this year. This means that with a stroke of a pen, 17% of the tax base of St. Clair township has been wiped out. St. Clair township did not see this coming and now will be struggling to meet their 2009 budget.

Minister, what assessment assistance will you be offering to St. Clair township to make up for this loss to their tax base?

Hon. Dwight Duncan: I’m proud of the fact that the McGuinty government is building two new gas-fired plants in the Sarnia area that will replace the coal-fired generation, which are cleaner, a better fuel, that will help our whole region deal with its air pollution problems.

MPAC does not do anything in what I would call a random way. They have a very sophisticated formula for determination of assessments that takes into account business cases. For instance, we’ve seen in other communities very large reductions in the valuation of some operations. I’ll have a look at that particular case, but again, in terms of the multimillion-dollar investment we’re making in the Sarnia area for new jobs and cleaner energy, we think, unlike the member opposite, that’s the right way to go.

The Speaker (Hon. Steve Peters): Supplementary?

Mr. Robert Bailey: I see why this is called question period and not answer period.

In 2008, St. Clair township had a total combined budget of just over $6 million, of which the Lambton generating station accounted for $2.3 million. In 2009, the generating station’s portion of the tax levy will slip to $1.13 million, a $1.17-million reduction ...

L088-1120-17 follows

[Mr. Robert Bailey]

 ... puts the Lambton Generating station accounted for $2.3 million. In 2009, the generating station’s portion of the tax ?? will slip to $1.13 million—a $1.17 million reduction off a 6 million budget. Minister, this means that the residents of St. Clair township are now looking at an average 17% tax increase just to provide those same services in 2009. Minister, what actions will you take to see that the residents of St. Clair township don’t see a 17% tax increase?

1120

The Speaker (Hon. Steve Peters): Minister.

Hon. Dwight Duncan: Well, first of all, again, there’s two new energy plants being built in the area. Again, they will contribute to the region’s economy. Secondly, we’re uploading Ontario Works benefits—$425 million to municipalities. That member voted against it. We are uploading court security costs which that member and his party downloaded. That will save the taxpayers of St. Clair township, which that member voted against. This year, $1.1 billion in additional money for infrastructure. That money flowed to every municipality last week. That member and his party voted against it. Sir, I will look into the specifics of this individual case, but I have to reemphasize that our government has been clear. We’re building two new major gas fired plants in the region which are creating employment, creating jobs and are cleaning up the environment. That—