McGuinty hints at health-care reform

Ontario Premier Dalton McGuinty offered few details in a speech on Tuesday about an impending review of government spending, but did say the province would transform the way health care is delivered.

In a speech presented at the Canadian Club in Toronto, McGuinty said the province must review the way it delivers services as it struggles with a $16-billion deficit.

His speech comes as former TD economist Don Drummond puts the final touches on a report expected to recommend extensive cost-cutting measures.

Drummonds report, due in the next few weeks, will recommend new ways to reduce the red ink. Many of his recommendations are expected to be controversial.

Drummond has publicly mused about having fewer Caesarean sections and hysterectomies performed in Ontario, as well as removing arthroscopic knee surgery from the Ontario Health Insurance Plan.

In his speech on Tuesday, McGuinty offered no concrete details about possible cuts to come, but did say much of the focus will be on how the province delivers health care.

"Health care, which accounts for over 40 per cent of program spending, is overflowing with opportunities for reform," McGuinty said.

"Shortly, [Health] Minister [Deb] Matthews will lay out an exciting plan for health care transformation. Our plan will provide Ontarians with better health care by getting better value for our health-care dollars."

McGuinty said he still plans to balance the budget by the 2017-18 fiscal year but said "getting there will require that we slow down our spending significantly."

'We won't be rash ... we won't be timid'

"I want to assure Ontarians: we wont be rash, and we wont be timid," he said. "Our progress will be steady, measured and relentless."

The opposition Progressive Conservatives have called on McGuinty to freeze public sector wages, a proposal the Liberals have said is out of the question.

McGuinty acknowledged the government will have to review how public servants are paid with an eye to saving costs. He noted half of all government spending about $55 billion a year goes to wages.

"It is simply not possible to reduce spending without addressing salary expenditures," he said. McGuinty said this review will happen while "respecting the collective bargaining process."

Its been suggested that some ministries may be facing spending cuts as deep as 30 per cent based on recommendations in Drummonds report.

However, McGuinty has said he may not follow through on all of the several hundred recommendations Drummond is expected to make.

Drummond's job is to advise, while the government's responsibility is to decide, McGuinty said earlier this month.

Drummond isn't expected to release his report until mid-February, about a month before the provincial budget.