Ontario’s McGuinty Steps Down Amid Budget Impasse

Dalton McGuinty said yesterday he is stepping down as Ontario premier amid controversy over canceled power plants and an inability to implement budget cuts in his minority government.

McGuinty, after nine years as premier of Canada’s most populous province and 16 years as Liberal leader, said he chose to resign in order to allow his party to renew itself and to spend more time with his family.

“It’s time for renewal, it’s time for the next Liberal premier,” McGuinty, 57, told lawmakers from his party yesterday.

A Forum Research poll released last month found the Liberals had the support of 20 percent of voters, compared with 37 percent for the Progressive Conservatives and 35 percent for the New Democratic Party.

McGuinty’s resignation comes as opposition lawmakers accuse his government of hiding the costs related to cancellation of two power plant projects, and refuse to support a public sector wage freeze to curb the province’s deficit.

Finance Minister Dwight Duncan released a budget update yesterday that forecast the deficit would be C$14.4 billion ($14.7 billion) in the fiscal year that began April 1, more than C$400 million less than forecast earlier in the year. Duncan said the government remained on track to eliminate the deficit by 2017.

Ontario’s credit rating was downgraded by Moody’s Investors Service on April 26 to Aa2 from Aa1 and the outlook revised to stable from negative amid concern about stalling growth.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell