TORONTO - Ontario Premier Dalton McGuinty says Ontario can no longer afford what he claims is a "perverse" equalization program.

McGuinty says a TD Bank report noting Ontario could slip into have-not status and qualify for equalization payments shows the formula to ensure similar levels of government services across Canada is unfair.

He says it doesn't make sense that Ontario is still required to contribute over $20 billion a year to the federal government to help fund equalization when it's struggling more than other provinces.

The premier calls it perverse to say Ontario is in need while at the same time it is sending $20 billion a year to the rest of the country.

McGuinty says Ontario will suffer through a longer and deeper downturn than necessary because of the equalization plan.

However, the opposition parties accuse McGuinty of using the equalization formula to deflect attention from the fact Ontario is falling far behind the rest of Canada.

Conservative Leader John Tory says McGuinty has to accept the government's high corporate taxes are at least partly to blame for the province's economic slowdown.

Ontario finance ministry officials note that even if the province qualifies for equalization payments, the federal government would simply claw back any money by reducing health transfers to Ontario.

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