KINGSTON—Tough choices must be made as Ontario navigates through a global economic downturn — and that includes a $42 million cut to university research grants, Premier Dalton McGuinty said.

The Liberals’ decision to axe the $42 million came at the same time as the government introduced a 30 per cent tuition rebate initiative.

“There are some $200 million remaining by way of funds, at least, in these kinds of (grant) research supports for our colleges and universities,” McGuinty told reporters Monday at St. Lawrence College in Kingston.

“We’ve entered into an era of slower growth for our economy. Our government expenditures must also mirror that,” he said. “We have to put an emphasis on those things we think most directly help grow the economy and create jobs.”

But McGuinty said he now needs the opposition parties to support the $423 million annual tuition rebate in the upcoming budget. This tuition relief plan will benefit 300,000 students, he added.

However, Progressive Conservative MPP Todd Smith (Prince Edward–Hastings) said his party won’t support the tuition rebate or the budget.

“The PC caucus won’t support this kind of spending,” he said. “This is a luxury spend on behalf of the premier.” The tuition plan could cost $2 billion over the next four years, Smith added.

The Liberals are presiding over a minority government and need opposition support — from the PCs or NDP — to pass the budget.

The research fund has leveraged more than $1 billion dollars of federal government and private sector investment, which builds Ontario’s economy, said NDP MPP Teresa Armstrong, the critic for training, colleges and universities.?

“What is the incentive to go to graduate school if you’re not going to get the proper education and research funding that it takes to get yourself into the workforce?” she asked. “The McGuinty Liberals decision to unilaterally slash the fund further undermines Ontario’s economy at the worst possible time.”

Ontario’s research universities and colleges told the Star they are stunned by the cancellation of key parts of the Ontario Research Fund grant program in the areas of social sciences, humanities and in research excellence.

Sources tell the Star the cuts are far more than $42 million and could really translate into a greater than $100 million shortfall.

When asked about this, McGuinty said “no final decisions” have been made with “respect to other elements.”

McGuinty denied the grant cuts were quietly made. He pointed to the Nov. 17 news release from the ministry of economic development and innovation regarding the transfer of money out of grants and into two other areas.

McGuinty said the funds are needed to support two projects — the Eastern Economic Development Fund and the corresponding Southwestern fund. Both support regional business growth.

However, universities say they were blindsided by the move and that some grant applications had to be abandoned midstream leaving students and private investors shocked.

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The $42 million loss will be felt over the next two years of grant application funding, said George Dixon, vice-president of university research at the University of Waterloo.

“We are not amused,” Dixon said. He is also chair of the Ontario Council on University Research — a group representing 20 universities and the Royal Military College.

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