‘This is the most difficult economy I’ve seen’: Ontario Finance Minister

In an exclusive interview, Ontario Finance Minister Rod Phillips reveals which essential Ontario workers will qualify for top-up pay, and whether Ontarians could be hit with a tax increase to help pay for emergency pandemic spending.

By Richard Southern and Dilshad Burman

Ontario Finance Minister Rod Phillips says we’re in the most “difficult economy” he’s ever seen in his lifetime.

But challenging as it may be, Phillips says it’s too early to determine whether Ontario is currently in a recession.

In an exclusive interview with 680 NEWS, Phillips stops short of confirming drastic economic decline and offers that it is “something you can only judge in the rear view mirror.”

“There’s no question we’re seeing a very challenging economy,” he said. “We hear about 7.5 million individuals that are taking advantage of the federal income assistance program — that’s simply unheard of.”

Phillips added that we will only know at the end of two consecutive quarters whether we are in, or heading into a recession.

Watch the full interview with Richard Southern in conversation with Finance Minister Rod Phillips:

Meanwhile the economic fallout form COVID-19 has blown a hole in the governments budgets, raising concerns about a possible increase in taxes.

“We’re going to need to get through this first challenge and see what needs to be done and see what the economy is looking like before we make any decisions about how to address that deficit,” said Phillips.

Other countries around the world are selling COVID bonds to pay for the extra expenditures. Here in Ontario, Phillips says it’s an option they’ve heard other jurisdictions are exercising, but the province is not currently considering.

“Right now we’re able to raise money effectively with our Ontario bonds,” he said.

In terms of the economic impact on individuals, unemployment numbers due to be released Friday are expected to be dismal, with thousands across the province out of work.

Asked if he supports the idea of universal basic income given the circumstances, Phillips said the provincial government does not believe it is the “best policy option” adding that he believes the previous government’s pilot project showed it to be the wrong choice.

“We want the economy to come back so that people can have a job. That’s what people want – they don’t want the government subsidizing,” he said.

As for the federal wage top up, the government of Ontario will only be doling it out to health care workers and those in the long-term care and retirement sector.

Phillips said at this stage, cleaners and grocery store workers will not be eligible.

Top Stories

Top Stories

Most Watched Today