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Ontario PCs pledge billions in stimulus that would flow after election

Ontario's Progressive Conservatives are promising tens of billions of dollars of spending in response to tariffs from the United States, but the stimulus wouldn't be in place for at least several weeks, with the province in the midst of an election c
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Ontario NDP Leader Marit Stiles talks to supporters in Scarborough, Ont. on Saturday, Feb. 1, 2025. THE CANADIAN PRESS/Andrew Lahodynskyj

Ontario's Progressive Conservatives are promising tens of billions of dollars of spending in response to tariffs from the United States, but the stimulus wouldn't be in place for at least several weeks, with the province in the midst of an election campaign.

The Tories say they would put $10 billion toward support for employers through a six-month deferral of provincially administered taxes on Ontario businesses and $3 billion toward payroll tax and premium relief, among several other measures.

Peter Bethlenfalvy, who was finance minister in Doug Ford's government, says those are promises that would be put in place after the Feb. 27 election, if the party wins — which polls suggest it is well positioned to do.

Ford has justified calling the snap $189-million election by saying he needs a new mandate to fight tariffs and spend billions in response, but the other parties say the campaign is unnecessary because they would agree to work together on stimulus spending.

Bethlenfalvy and Caroline Mulroney, who was Treasury Board president in Ford's government, also announced they would put $600 million in a fund aimed at attracting investments, $300 million to expand an Ontario manufacturing tax credit and $120 million to increase a wholesale alcohol discount for bars and restaurants.

Ford last week also announced he would spend an additional $22 billion to build infrastructure, as part of the stimulus package, and that he would add $1 billion to the Skills Development Fund.

The other major political parties say this is the worst time for Ontario to find itself in an election, with U.S. President Donald Trump's threatened 25 per cent tariffs on Canadian goods set to take effect Tuesday.

At an election announcement Monday, Ford bristled at a question suggesting he couldn't take all the necessary actions to protect Ontario in the middle of a campaign, noting that he had directed the Liquor Control Board of Ontario to take American products off shelves.

"We're going to do everything we can as we're standing here," he said. "If any emergencies come, I'll reconvene cabinet. That's not an unusual request."

Ford also announced as premier Monday morning that Ontario will rip up a $100-million contract with Elon Musk's SpaceX to deliver high-speed internet to remote areas via Starlink satellite technology, then touted that action at his campaign event a couple of hours later.

Green Party Leader Mike Schreiner said Ford is "playing politics" with tariffs and it's wrong.

"We shouldn't even be in an election right now because we should all be working together to have a united front against Trump," he said.

"Then for the premier to use essentially government announcements to advantage him in the campaign is not good for democracy."

NDP Leader Marit Stiles noted that the government should technically be in caretaker mode during a campaign.

"I would also cancel the Starlink deal," she said. "Whether he has the ability to do that right now, in the middle of an election where he's not really the premier, is a different story."

The Liberals wrote earlier to the secretary of cabinet, chief electoral officer and integrity commissioner, arguing that Ford planning to go ahead with a scheduled visit to Washington, D.C., this month with other premiers to advocate against tariffs is inappropriate during an election campaign.

The integrity commissioner and secretary of cabinet said the trip meets the caretaker convention's criteria of being urgent and in the public interest, and the chief electoral officer said he would have to assess any expenses for appropriateness after the fact.

Stiles was also talking tariffs Monday, saying if her party forms government she would implement a federal-provincial income support program, direct agencies to procure locally and create new supply chains for trade-exposed industries.

However, Stiles's plan to protect Ontario from the effects of U.S. tariffs did not come with any dollar figures attached.

When asked about costing, she said an NDP government would work in lockstep with the federal government to deliver the stimulus.

Speaking in Oshawa, Ont., Stiles said Ford can't be trusted to protect workers because he "gave up" in 2018 when General Motors announced it would stop producing cars and trucks in the city east of Toronto.

More production was ultimately secured, but Stiles said the people of Oshawa won't forget that in 2018 Ford said there was nothing the province could do to prevent the shutdown.

Schreiner was in Kitchener, Ont., to announce the Green Party's housing plan, which includes allowing fourplexes across the province, homes with six units in large cities and mid-rise buildings of six to 11 storeys on transit corridors and main streets. He also pledged to remove development charges on homes under 2,000 square feet and remove the land transfer tax for first-time homebuyers.

— With files from Sharif Hassan in Oshawa and Jordan Omstead in Kitchener.

This report by The Canadian Press was first published Feb. 3, 2025.

Allison Jones and Liam Casey, The Canadian Press