Prime Minister Stephen Harper said in London yesterday he won't muzzle his Ontario-bashing finance minister.
Jim Flaherty has claimed Ontario is "the last place" new businesses would want to locate because of high provincial business taxes.
Harper was asked how Flaherty's continued attacks could benefit places such as London, which has the second-highest unemployment rate among Ontario cities, and whether Flaherty should be curbed.
"I don't think the issue is Mr. Flaherty," Harper told reporters. "The issue is the investment climate. The government of Canada wants a better investment climate in Ontario."
The federal government has lowered taxes, cut red tape and invested in infrastructure to stimulate private investment, Harper said.
"That's everything Minister Flaherty and the government have been doing," he said. "It's in the interest of the country, we have a strong Ontario that's a good place to invest. So I think it's important we . . . move things in the right direction."
At Queen's Park, Premier Dalton McGuinty and Finance Minister Dwight Duncan said Flaherty is wrong with his latest claim Ontario will soon become "a have-not" province.
"It's kind of sad," Duncan said. "It's demeaning to Ontario and Ontarians, not to me and not Dalton McGuinty."
He has not said if he will include a reduction of business taxes in the provincial budget to be tabled Tuesday.
McGuinty has said his government would have to cut spending on schools and hospitals if business taxes were reduced.
McGuinty said he has still not received a response to a letter he sent Harper complaining about Flaherty's constant attacks as "inappropriate and potentially harmful."
The federal Conservative government has been "betraying its responsibility to champion the Canadian economy," McGuinty said.
Harper, in his second visit to London since becoming prime minister, stopped at Cleardale public school where he discussed the federal government's support for a program to provide free MedicAlert bracelets to pupils.
He also toured the Electro-Motive Diesel plant on Oxford Street where he met many of the firm's 900 employees.
Harper said his visit to the rail locomotive plant was intended to highlight tax measures from his government aimed at keeping manufacturers competitive.
Ontario must reduce its taxes further in the national interest, Harper said.
"Ontario is the heart, it is still the engine of the Canadian economy," he said. "There's no reason the Ontario economy can't be as strong as the economy in any other part of this country."
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Less Ottawa.
