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Where did arbitrary request for "15% cut" in Ontario Auto Insurance premiums even come from?

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Tim Hudak not impressed by 15% reduction in auto premiums

In the next few weeks, Ontario's Liberal premier Kathleen Wynne will unveil the budget. The NDP has indicated support while Tim Hudak's Progressive Conservatives aren't going along. While the big news Wednesday was the motion brought by Bramalea-Gore-Malton NDP MPP Jagmeet Singh to reduce auto insurance premiums by 15 per cent which passed in the legislature.

This populist hudak_march11measure naturally ensures that the Liberals and the NDP score brownie points with frustrated motorists across the GTA who've seen their auto insurance rates go through the roof. But while an ebullient MPP Jagmeet Singh spent much of the day preening in front of the cameras and discussing the good news with the members of the media, PC leader Tim Hudak was holding a roundtable at a Brampton restaurant where he struggled to explain just why he would not support the upcoming budget and the motion reducing auto insurance rates by 15 per cent.

Hudak conceded Ontario's auto insurance rate was the highest in Canada and twice that of Alberta. He faced a barrage of questions from a couple of belligerent 'journalists' about the PC's stand on the issue. Hudak tried to explain that simply reducing auto insurance rates just before the budget was simply politics, the Liberals support the NDP motion in order to ensure their survival. "We have a four point plan to bring down auto insurance rates," said Hudak. "More competition, less regulation and red tape, employ technology to help good drivers like putting a chip in a car that measures a good driver's driving habits as is being done in Quebec. Addressing the backlog of 17,000 insurance claim cases in the system.

Battling fraud and holding CEOs of insurance companies accountable," he explained. The issue of auto insurance rate became the most important issue, not that Hudak had nothing else to discuss. In his opening remarks, he spoke about traffic gridlock that is choking growth. He pointed out that he was against the seemingly out-of-control spending by the Ontario Liberals whom he blamed for the $10 billion on interest payment toward the debt. "We are committed to bring the spending under control in order to create jobs and help the 600,000 who've lost jobs," he said.

Hudak also pointed out the perils of carrying such high levels of debt and the risk it posed to Ontario's economy. It results in higher taxes which deters business investments. Balanced budgets, on the other hand, would encourage more business investment which in turn would spur economic growth and consequently address the issue of job creation which continues to be a serious concern in the province.

While these were the issues that should've been the focus of attention at this roundtable, everyone seemed fixated on the 15 per cent reduction in auto insurance, a saving that will be welcome by all Ontarians. Such jubilation may be short-lived given the enormous problems facing the province which may end up forcing motorists to pay more road tolls to fund infrastructure and highways. And of course if the economy doesn't get better, fewer motorists may need a car because they won't be going anywhere. That might actually solve the problem of traffic gridlock.

Source: Pradip Rodrigues - CanIndia News

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