There are really two sets of issues here. The first relates to the implications of the short-term cyclical downturn. The second relates to the longer-term structural challenges facing Ontario. Let me address these in turn. It is clear that the cyclical pullback in the U.S. housing and auto sectors is causing particular difficulties for Ontario.
Given the degree of integration of the Ontario and U.S. economies, this province will feel a significant impact from the U.S. downturn throughout the second half of this year and the first half of 2007.