In the midst of a weeklong controversy over job creation that has seen party leaders accuse each other of prejudice and pandering to immigrants, New Democratic Party Leader Andrea Horwath pledged on Friday to reward companies that hire Ontario workers.

Horwath said if elected, the NDP would offer up to $5,000 in tax credits for every worker hired to a newly-created position.

"Unlike the Liberal plan, our plan will apply to all new hires," Horwath told reporters. "Our solution will increase the number of jobs available for everyone -- men, women, new Canadians or young people -- anyone who needs work."

The NDP leader said the arrangement would encourage companies who might otherwise rely on contract or temporary workers to hire full-time permanent staff.

To qualify for the NDP tax credit, companies would have to offer job training and show they are creating new positions, not replacing existing employees.

The credit would be maxed at $100,000 per company per year to make sure big companies aren't disproportionately rewarded, Horwath said.

She said her program would cost $100 million a year and create about 80,000 jobs over the next four years.

The announcement set the tone for Day 3 of the provincial election campaign, which saw the three party leaders return to the Toronto area for talk about creating, saving and maintaining jobs.

In August, Ontario's unemployment rate was 7.5 per cent, above the national rage of 7.3 per cent.

Earlier this week, Liberal Leader Dalton McGuinty pledged he would credit businesses $10,000 for every new immigrant they hire who has been unable to get accredited in their trained field because they lack Canadian experience.

Progressive Conservative Leader Tim Hudak has accused the Liberals of playing favourites by helping "foreign workers" get jobs without doing anything for regular Ontarians.

Hudak spoke at the Economic Club of Canada in Toronto on Friday where he said the province wasn't living up to its potential.

Hudak blamed McGuinty for driving companies out of the province and taxing middle-class families. Hudak said he did not support McGuinty's plan to subsidize job growth, instead he would rely on the private sector to create jobs.

McGuinty, meanwhile, was warning of jobs that could be lost under a Conservative government, claiming Hudak was a threat to the province's burgeoning green energy sector.

While touring a solar panel factory in Newmarket, McGuinty said a Tory government would threaten some 20,000 jobs being created in the green energy industry.

The Liberals also released their plan for rural and northern Ontario on Friday, including promises to:

  • make the Northern Industrial Electricity Rate Program permanent
  • increase the Northern Ontario Heritage Fund to $110 million
  • open at least eight new mines in the next decadei
  • increase support for agri-food businesses.

McGuinty is scheduled to meet with the International Muslims Organization in west Toronto later Friday.

With files from The Canadian Press