Budget passes, provincial government survives

Video updated Voting has taken place, and as promised the New Democrats lived up to its agreement with the McGuinty minority government.

Premier Dalton McGuinty backed down yesterday in his showdown with the NDP and agreed to a new tax on the rich so that the budget would pass and the government would avoid defeat. But the budget still freezes wages for teachers, doctors and public servants.

And issues for the vote – whether the NDP abstains from voting and let it pass, or actively vote for the budget.

Leading up to that, there were plenty of fireworks in the legislature this morning. NDP leader Andrea Horwath is still on the attack despite the government’s agreement. Conservative leader Tim Hudak attacking over the budget. And protestors interrupting the legislature from the gallery.

The Premier’s inviting Conservative leader Tim Hudak to take part in further discussions on the budget. The Tories have rejected the budget from the beginnging, unlike the NDP who were working with the government.

The government also said today it could eventually adopt another NDP idea: Tax credits for companies that create jobs. It says that could turn up in a future budget.

Video: Al Sweeney reports: