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Sorenson said Ottawa continues to oppose expanding the Canada Pension Plan by boosting premiums and benefits, an initiative favoured by Ontario, Prince Edward Island, and Manitoba, but one the federal government called “risky” and said would cost jobs and stunt business development by raising premiums for workers and firms.

“We are not looking at the present time enhancing CPP. We have said that now is not the time to talk about extra payroll taxes,” he said

“We would encourage Ontario to look at balancing their budgets, and move away from higher payroll taxes for people of Ontario. We believe it would put businesses here in Ontario at a disadvantage to other businesses across the country.”

Ontario Finance Minister Charles Sousa said his province plans on moving ahead with its own provincial pension plan, even without the support of the federal government. In the past, Sousa has accused Sorenson of misrepresenting the issue with statements that enhancements to CPP could cost up to 70,000 jobs.

“Talk of a modest enhancement was, however, dismissed by the federal government in December, and today’s announcement gives no sign of a change in direction,” he said in a statement.

“It is as a result of this continued inaction that has forced Ontario to act now, so that today’s workers have a more secure retirement tomorrow. We will continue to move forward to implement a made-in-Ontario alternative to protect Ontario workers in their retirement. Doing nothing is not a solution to this problem.”