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Published: March 16, 2024
Ontario Premier Doug Ford sent a letter to Prime Minister Justin Trudeau earlier this week requesting billions of dollars in investments as the two governments work on their 2024 budgets.
In the letter to Trudeau, which was sent on March 14 and shared by the Premier's office, Ford outlined additional priorities where he hopes to either secure a financial commitment or legislative change.
This is what the Premier is asking for
Infrastructure funds:
The big question in the six-page letter is infrastructure funding, especially roads, highways, and public transit projects, with the government noting that the estimated costs to expand GO Transit along the Milton line could exceed $6 billion.
The Premier wrote: "We ask the federal government to commit to covering at least half of the capital cost to expand this important transit line, which will serve millions of people in the Peel and Halton regions."
"We also ask the federal government to honor its commitment to be a true partner by funding 40 per cent of the capital costs of the four priority subway projects listed in our 2021 agreement. The costs of these projects have escalated due to the inflationary environment created by the federal government, and it is fair that you help fund these new pressures.”
It is unclear how much these costs have increased or what is the cause of the inflated costs.
Stopping environmental challenges:
The province continued to call on the federal government to allow the flagship Highway 413 project to proceed without the need for environmental assessments.
The Premier wrote: "Where federal jurisdiction applies, Ontario expects the federal government to ensure that its legislation and regulations help build new roads, highways, and public transit projects faster, rather than slowing Ontario’s ability to build these much-needed projects."
"Until we receive this certainty, Ontario will continue its ongoing legal challenge."
Ford’s government has asked the courts to declare the Impact Assessment Act invalid, a law that deals with the environmental impacts of infrastructure projects. A court opinion, which has no legal effect, found that the law is unconstitutional because it affects matters subject to provincial regulations.
In 2021, the federal government said Highway 413 falls under the Impact Assessment Act.
Canceling the carbon tax:
It is no surprise that Ford reiterated his call to cancel or pause the carbon tax; over the past few years, the Premier has spoken loudly about constraining this policy. Earlier this month, he urged the federal government to "wake up and take a stand on this issue."
"Cancel this carbon tax, pause it. Do something. And if you don’t, the people of Canada will wipe you out when election time comes. It’s that simple."
In his letter, the Premier not only called on Trudeau to cancel the carbon tax but also to eliminate taxes on all types of home heating fuels.
"At a minimum, the federal government should use its upcoming budget to stop the imminent increase in the carbon tax, which would raise the total cost of the carbon tax to 17.6 cents per litre of gasoline."
Other questions include:
Ontario’s $1 billion Match commitment to build the roads leading to the Ring of Fire area
More clarification regarding Ontario projects eligible for federal tax exemptions for clean energy investments
Providing funding for "vital infrastructure priorities" that will help the province build more homes. No concrete examples were provided.
Ontario is scheduled to present its budget on March 26, while the federal government has set its budget for April 16.
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