Chudleigh says falling demand for vehicles is tied to higher taxes

November 14th, 2005

"It's about much more than oil."

Halton - Milton - Seasonally adjusted sales of new motor vehicles in Canada fell 7.9 per cent in September following hard on a similar 8.7 per cent drop in August. Ontario alone experienced a 9.2 per cent drop according to a Statistics Canada report issued today.

"The drop in vehicle sales in August and September is attributable to the loss of discretionary income as Ontarians are faced with increased taxes, huge electricity bills and higher health care costs due to Liberal privatization of services such as chiropractic and eye exams," said Ted Chudleigh, Halton MPP and opposition critic of the Ministry of Economic Development and Trade.

Mr. Chudleigh explained that while truck, SUV and minivan sales plummeted 13.4 per cent in September following hard on the heels of a similar August decline, car sales also slipped 2.8 per cent.

"If people were simply being more fuel conscious car sales would balance out the loss of truck sales," said Mr. Chudleigh. "I believe people have much less money to spend and they are backing off on making major purchases like autos and appliances."

Mr. Chudleigh said that the fears of ordinary Ontarians will slow Ontario's economy which is highly dependent on auto manufacturing.

"Ontario is the economic engine of Canada but it could become the caboose of our national economy if the McGuinty Liberals do not take the issue of economic health seriously. Their actions have crippled our economy and they don't seem to understand or care."