The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.
Matthew Mendelsohn is director of the Mowat Centre at the School of Public Policy and Governance, University of Toronto.
The Drummond report’s chapter on “Intergovernmental Relations” has received little attention so far. That needs to change. The chapter provides a devastating, evidence-based case that lays a lot of the blame for Ontario’s fiscal woes on the steps of the federal government.
When Premier Dalton McGuinty complained on Monday about federal decisions that are having a disproportionate effect on Ontario, he actually had the evidence on his side.
Chapter 20 of Don Drummond’s report begins by noting that in 2009-10, Ontario, with 39 per cent of the Canadian population, contributed 39 per cent to federal revenues, but benefited from only 34 per cent of federal spending — a gap worth about $12.3 billion or 2.1 per cent of Ontario’s GDP. The report concludes that this — among other factors — demonstrates the “perverse structure of Canadian fiscal federalism.”